Business, 19.02.2021 17:00 lesl26

Gonzalez, Inc. has a fiscal year-end of September 30th. On March 1, 2018, Gonzalez authorized $800,000 of bonds payable, with a term of 12 years. The bonds carry a stated interest rate of 6%, with interest to be paid semi-annually on February 28th and August 31st. On August 1, 2019, Gonzalez issued three-quarters of the bonds for cash, at a premium of $25,400. Required:
Prepare the journal entries that would be required relating to the bonds over period March 1, 2018 through September 30, 2019.

Answers: 2

Show answers

Answers

Answer from: nataliam0430

August 1, 2019

Dr. Cash $625,400

Cr. Premium on Bond $25,400

Cr. Bond Payable $600,000

August 31, 2019

Dr. Interest Expense $16,941.67

Dr. Premium on Bond $1,058.33

Cr. Cash $18,000

September 30, 2019

Dr. Interest Expense $2,823.61

Dr. Premium on Bond $176.39

Cr. Cash $3,000

Explanation:

August 1, 2019

As the Bond was issued on August 1, 2019, So the first entry will be made at the issuance

Issuance of Bond = Total authorized x 3/4 = $800,000 x 3/4 = $600,000

Cash receipt = Face value + Premium on Bond = $600,000 + $25,400 = $625,400

August 31, 2019

As interest is paid on this date.

Interst payment = Face value x Coupon rate = $600,000 x 6% x 6/12 = $18,000

Amortization of Bond Premium ( Straight line ) = Premium on Bond / ( Years to maturity x Coupon payment period per year ) = $25,400 / ( 12 years x 2 periods per year ) = $1,058.33

September 30, 2019

On this date interest of one month is accrued which needs to be recorded.

Interest payable = 600,000 x 6% x 1/12 = $3,000

Amortization of Bond Premium ( Straight line ) = ( 25,400 / 24 ) / 6 = $176.39

Answer from: Quest

$6.250 \div 900$

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Another question on Business

Business, 21.06.2019 19:00

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

Answers: 3

Answer

Business, 21.06.2019 20:30

Monetary policy in the united states is carried out primarily by which of the following agencies? a. the department of the treasury b. the small business association c. the federal reserve bank d. the u.s. mint 2b2t

Answers: 1

Answer

Business, 22.06.2019 03:40

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

Answers: 1

Answer

Business, 22.06.2019 17:30

Dr. sperry, a biologist, is using excel to track growth rates of different populations of bacteria. she has a very complex formula in one cell. it begins with “round”. dr. sperry would like to see exactly how excel’s calculation reached the final rounded value that she sees in the cell. what could dr. sperry do to best understand how the calculation was made? try different formulas on her own until she reaches the value shown in excel click on the evaluate formula button in the formulas tab and then click “step in” select the cell and then look at the formula in the formula field of the ribbon remove “round” from the formula in order to see the actual value before rounding

Answers: 2

Answer

You know the right answer?

Gonzalez, Inc. has a fiscal year-end of September 30th. On March 1, 2018, Gonzalez authorized $800,0...

Questions