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On January 1, a company issues bonds dated January 1 with a par value of $210,000. The bonds mature in 5 years. The contract rate
On January 1, a company issues bonds dated January 1 with a par value of $210,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $218,105. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.) Debit Interest Payable $11,550; credit Cash $11,550. Debit Bond Interest Expense $10,739; debit Premium on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $10,739; debit Discount on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $12,361; credit Discount on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $12,361; credit Premium on Bonds Payable $811; credit Cash $11,550. Mohr Company purchases a machine at the beginning of the year at a cost of $26,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is: $4,200. $17.600. $8,400. $21,000. $12,600. A machine with a cost of $170,000 and accumulated depreciation of $105,000 is sold for $56,000 cash. The total amount related to this machine that should be reported in the operating section of the statement of cash flows under the indirect method is: $5,600. $83.000. $27,000. $15,000. O $9,000. A sporting goods manufacturer budgets production of 41,000 pairs of ski boots in the first quarter and 32,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 15% of the following quarter's material needs. Beginning inventory for this material is 12,300 kg and the cost per kg is $10. What is the budgeted materials purchases cost for the first quarter? O $820,000. $943,000. $793,000. O $697,000. O $847,000
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