Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D Question 10 3 pts Sutherland, Inc. issued a promissory note to Bank of Amarillo for a loan of $10,000 due in 10 months at

image text in transcribed
image text in transcribed
image text in transcribed
D Question 10 3 pts Sutherland, Inc. issued a promissory note to Bank of Amarillo for a loan of $10,000 due in 10 months at 12% annual interest What journal entry will Sutherland record when it receives the loan? DR Cash 10,000 DR: Interest Expense 1 200 CR: Nate Payable 10.000 CR: Interest Payable 1.200 O DR Notes Recevable 10.000 CR Cash 10,000 DR Cash 10,000 CR Notes Payable 10,000 DR Interest Expense 1.200 CR: Cash 1.200 3 pts D Question 11 On September 1, 2019. Homer Bakery Corp signed a $70,000, 8%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2020. Homer Bakery should report interest payable at December 31, 2019, in the amount of? (round answer to nearest dollar O $1.867 $3.733 $5.600 No entry necessary because the loan isn't due until March 2020 D Question 13 3 pts Why are time value of money factors used to calculate the issuance price of a bond? Band investors receive future cash flows and purchant bonds with current dos Chinterest payments to bondholder will changes market rateschone Interest rates fluctuate in the market but Accounting requires precision for reporting proses The company might choose to pay the bonds prior to their maturity cate Question 14 3 pts Ralphie is nearing retirement and is considering an annuity offer from California Annuity Sales Com which promises to pay him $90,000 on the last day of each year, for 20 years It Ralphie believes that he could earn 6% if he invested his money himself the present value to Ralphie of this offeris: $33:0,703 S1032 293 $1.800.000 52.862 Question 15 3 pts Marvin Corp. sold $700,000 in face value bonds on January 1, 2020 and it received $663,200 in cash from the issuance. Those bonds sold at a: Discount Par Value Not Enough information to Determine O Premium 3 pts Question 16 If market conditions cause interest rates on bonds of similar maturity and riskiness to go down after Bosnian Furs Corp. Issues $1,900,000 in bonds, the cash interest payments paid to Bosnian Furs bondholders after the interest rates change will: Decrease Increase Decrease only if the bondholders bring a class-action lawsuit Remain the same

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essentials Of Finance And Accounting For Nonfinancial Managers

Authors: Edward Fields

3rd Edition

0814436943, 9780814436943

More Books

Students also viewed these Accounting questions

Question

What are the major benefits of a total quality management program?

Answered: 1 week ago