Question
31. Assume that the total issue price for a $500,000 face-value bond issue with semi-annual interest payments has been correctly calculated to be $578,450. The
31. Assume that the total issue price for a $500,000 face-value bond issue with semi-annual interest payments has been correctly calculated to be $578,450. The market interest rate for bond issues of similar risk is 6%, compounded semi-annually. How much interest expense will accrue and be recorded at the end of the first 6 month period?
a. $30,000.00 | ||
b. $34,707.00 | ||
c. $17,353.50 | ||
d. $15,000.00 |
Wilson Co. sold $500 of goods to Donner Co. with terms of 2/10, n/30. If Wilson receives payment for the goods from Donner within 10 days, Wilson will record a
a. debit to Accounts Receivable for $500. | ||
b. credit to Cash for $490. | ||
c. debit to Sales Discounts for $10. | ||
d. credit to Sales Discounts for $10. |
The maturity value of a $3,000, 60-day, 6 percent note would be (use a 365-day year):
a. $3,029.59 | ||
b. $3,000.00 | ||
c. $3,042.68 | ||
d. $3,032.43 |
34.
Which of the following accounts would be found in an accrual adjusting entry?
a. Prepaid Insurance | ||
b. Unearned Revenue | ||
c. Supplies | ||
d. Wages Payable |
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