Assume that on may 1 2005 austin company issues at 105 plus, Ask an Expert

Accounting

Assume that on May 1, 2005, Austin Company issues, at 105 plus accrued interest, 10-year bonds with a face value of $100,000 and a face interest rate of 10 percent. Interest is paid semiannually on June 30 and December 31. The bond is dated January 1, 2005, and will be due on January 1, 2015. What is the amount credited to Premium on Bonds in the journal entry for the bond issue?

a) $833.

b) $1,667.

c) $3,333.

d) $5,000.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M948655

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - last year garrison manufacturing sold 500 000

Question - Last year, Garrison Manufacturing sold 500 000 units at $4 each. Both sales volume and sales price are expected to increase by 15 per cent in the upcoming year. Calculate the expected sales revenue for the upc ...

Question transfer pricing is the pricing of assets funds

Question: Transfer pricing is the pricing of assets, funds, services, etc., transferred among related organizations. Using your textbook, the Argosy University online library resources, and the Internet, conduct research ...

Question - merchandise accounts and computationskleiner

Question - Merchandise accounts and computations Kleiner Merchandising Company Accumulated depreciation$700 Beginning inventory 5,000 Ending Inventory 1,700 Expenses 1,450 Net Purchases 3,900 Net Sales 9,500 Krug Service ...

Question - community health center chc is considering

Question - Community Health Center (CHC) is considering spending fifty thousand dollars on a blood analyzer. The annual cash profits from the machine will be seven thousand dollars for each of the seven years of its usef ...

Question - total fixed costs for randolph manufacturing are

Question - Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $5,000,000 if 160,000 units are produced. The variable cost per unit is A. $26.54/unit. B. $31.25/ ...

Question - the following information is available for the

Question - The following information is available for the 21,000 units of X Company's one product sold in 2017: Selling price $46.00 Variable costs per unit $30.00 Total fixed costs $756,000 In 2018, X Company expects sa ...

Question - robin corporation purchased 150000 previously

Question - Robin Corporation purchased 150,000 previously unissued shares of Nest Company's $10 par value common stock directly from Nest for $3,400,000. Nest's stockholder's equity immediately before the investment by R ...

Question - books and brew bb is a large city bookstore that

Question - Books and Brew (BB) is a large city bookstore that sells books and music CD's, and also has a cafe. Currently, BB uses a single-driver system to allocate its operating costs to each of its three product lines, ...

Question - kingbird enterprises owns the following assets

Question - Kingbird Enterprises owns the following assets at December 31, 2017. Cash in bank - savings account 70,600 Checking account balance 20,800 Cash on hand 8,300 Postdated checks 840 Cash refund due from IRS 34,50 ...

Question - marvin services corporation had the following

Question - Marvin Services Corporation had the following accounts and balances: Accounts payable $12,000 Equipment $14,000Accounts receivable 2,000 Land14,000 Buildings? Unearned service revenue 4,000 Cash 6,000 Total st ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert