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sweet-ann [11.9K]
2 years ago
5

On December 31, 2018, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela

ted entry, Bonds Payable had a balance of $450,000 and Premium on Bonds Payable had a balance of $11,795. Spearmint uses the straight-line bond amortization method. The first semiannual interest payment was made on June 30, 2019.
Complete the necessary journal entry for June 30, 2019 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Date General Journal Debit Credit
Dec. 31
Business
1 answer:
Vadim26 [7]2 years ago
7 0

Answer:

December 31, 2018, bonds are issued

Dr Cash 461,795

    Cr Bonds payable 450,000

    Cr Premium on bonds payable 11,795

amortization expense per coupon = $11,795 / 6 coupon payments = $1,965.83

June 30, 2019, first coupon payment

Dr interest expense 18,284.17

Dr Premium on bonds payable 1,965.83

    Cr Cash 20,250

The amortization of the premium on bonds payable decreases the interest expense.

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Answer:

D) readily available substitute products.

Explanation:

Porters five explains the following

  1. Threat of new entry
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A) lack of importance of the buyer to the supplier group.

True. Buyers have less bargaining power as compared to suppliers

B) high differentiation by the supplier.

True. Higher differentiation leads to competitive advantage and rivalry within the market.

C) dominance by a few suppliers.  

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D) readily available substitute products.

False. This means there are more suppliers in the market that are ready to substitute a product thus making suppliers less powerful.

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Option A, Materiel Solution Analysis Phase

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The equipment answer Analysis  part assesses potential solutions for a required capability in associate Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for ensuing program milestone selected by the Milestone call Authority.

The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.

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Omega Instruments has budgeted $300,000 per year to pay for certain ceramic parts over the next 5 years. If the company expects
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Answer:

281,281.28

Explanation:

expected cost  300,000 + 10,000 = 310,000

with an inerest rate of 10%

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The Swiss Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direc
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Answer and Explanation:

The computation of the equivalent units for direct material and conversion cost is shown below:

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Beginning

Work in process

100% and 50%  250

Units Started         800

Total Units

Under process  1,050

Less : Ending

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Units Transferred

to TestingDepartment  900          900                            900                  

Ending Work in process 150          150                             112.50

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Answer:

The issues that arises between the Faraj and Siegel can be discussed by three different groups in resolving the contract agreement.

Note: Kindly find an attached copy of the complete question below.

Explanation:

Solution

In this case between Faraj and Siege'ls building contractors the following issue are discussed by three groups as follows:

(1) The contractor can increase the price of finishing construction based on inflation and the cost of raising materials during inflation prices for the materials increases or goes up and this will affect the customer gradually.

(2) Faraj will not pay the additional amount requested by Siegel because according to the contract the amount she has to pay is $153,000

(3) Issues or problems that might come up during construction is listed below:

  • Poor communication
  • Not feasible or impractical forecasting
  • The unavailability of structure

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