Saved Help Save & EX Submit A company purchased $108,000 of 6% bonds on May 1...

Question

Question

Saved Help Save & EX Submit A company purchased $108,000 of 6% bonds on May 1 at par value. The bonds pay interest on March 1

Answer 1

Answer #1

Par value of bonds = $108,000

Interest rate = 6%

Interest is paid semi annually on May 1 and September 1 at December 31, interest will accrue for 4 months (from September 1 to December 31)

Interest accrued on December 31 = Par value of bonds x Interest rate x 4/12

= 108,000 x 6% x 4/12

= $2,160

Fifth option is correct.

Kindly comment if you need further assistance. Thanks‼!

Answer 2

Similar Homework Help Questions

Wk.4 - Apply: Exercise i Saved Help Save & Exit Submit On September 1, 2019, a...

Wk.4 - Apply: Exercise i Saved Help Save & Exit Submit On September 1, 2019, a firm accepted a 6-month, 6% note for $18,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is points Skipped Multiple Choice Mc Graw Hill Education < Prev 9 of 10 Next >
please help Submit #4 Ch.9 810 (90 min.) Help Save & Exit On January 1, Parson...

please help Submit #4 Ch.9 810 (90 min.) Help Save & Exit On January 1, Parson Freight Company issues 70%, 10-year bonds with a par value of $4,000,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $3,728.197. The bond issuance should be recorded as: Multiple Choice O Debit Cash $3,728.197. debit interest Expense $271.803, credit Bonds Payable $4.000.000 O Debit Cash $3,728,197, credit Bonds Payable $3728,197 o o Debit Cash...
A company purchased $81,000 of 6% bonds on May 1 at par value. The bonds pay...

A company purchased $81,000 of 6% bonds on May 1 at par value. The bonds pay interest on March 1 and September 1. The amount of interest accrued on December 31 (the company's year-end) would be:

Saved Help Save 4 Stormer Company reports the following amounts on its statement of cash flow....

Saved Help Save 4 Stormer Company reports the following amounts on its statement of cash flow. Net cash provided by operating activities was $29.000, net cash used in investing activities was $10,400 and net cash used in financing activities was $12,600. If the beginning cash balance is $5,200, what is the ending cash balance? Multiple Choice $11.200 $32,000 O $57.200 $46,800 Ο Ο o o $6,000 < Prev 33 of 36 Next > to search SAMSUNG ANNN
Saved Help Save & Ex On January 1 Year 1, Alabama Company purchased a machine for...

Saved Help Save & Ex On January 1 Year 1, Alabama Company purchased a machine for $26.000. The machine has an estimated useful life of 4 years and an estimated salvage value of $6,000. What is the book value of the machine reported on Alabama's balance sheet as of December 31, Year 1? Multiple Choice
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a...

14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...

Saved Help Save & Exit harrat Corporation purchased 31% of Ferris Corporation for $119,000 on Januaryt....

Saved Help Save & Exit harrat Corporation purchased 31% of Ferris Corporation for $119,000 on Januaryt. On October 17 of the same year, Ferris Corporation declared total cash dividends of $31000. At year-end, Ferris Corporation reported et income of $79,000. The balance in the Bharrat's Equity Method Investments --Ferris account at December 31 should be Multiple Choice $119,000 $109,390 $104,120 $143.490 $133,880 O < Prev 31 of 36 Next > O BA SAMSUNG earch
Wk.4 - Apply: Exercise Saved Help Save & Exit Submit Hugh Morris Company pays weekly wages...

Wk.4 - Apply: Exercise Saved Help Save & Exit Submit Hugh Morris Company pays weekly wages of $17,500 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is: points Skipped Multiple Choice Mc Graw Hill Education < Prev 7 of 10 # Next >
Chapter 6 Saved Help Save & Exit You are going to deposit $2,700 in an account...

Chapter 6 Saved Help Save & Exit You are going to deposit $2,700 in an account that pays 33 percent interest compounded monthly. How much will you have in 7 years? Multiple Choice O $3.560.84 O s237259 O $3554 40 53.5490 < Prev 4 of 30 baxt >

Help Save & Exit Submit Other things held constant, if the wage rates paid to a...

Help Save & Exit Submit Other things held constant, if the wage rates paid to a firm's labor inputs were to decrease, we would expect the Multiple Choice 0 AVCATC, and MC curves all to decrease/fall o AVC, ATC, AFC, and MC curves all to Increase/rise O AVC, ATC, and MC curves all to rise 0 AFC, AVC, ATC, and MC curves all to rise < Prey 33 of 38 !!! Next > Te to search ka oi Help Save...