![graciewyatt471](/avatars/41278.jpg)
graciewyatt471
26.08.2020 •
Business
On November 1, 2018, Mason Corp. sold $700,000 of its 10% term bonds dated October 1, 2018. The bonds were sold to yield 8%, with total proceeds of $800,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should Mason report for interest payable in its December 31, 2018 balance sheet?
Solved
Show answers
More tips
- H Health and Medicine How to Treat Whooping Cough in Children?...
- L Leisure and Entertainment Unlocking the Secrets of Fast and Effective Tectonic Learning...
- A Animals and plants Уход за джунгариками: полезные советы и рекомендации...
- S Style and Beauty How to knit a hooded cowl?...
- S Style and Beauty How to Break in New Shoes: 7 Simple Methods...
- D Dating, Love, Relationships 10 Useful Tips on How to Survive a Breakup?...
- A Art and Culture How to Learn Screaming: Step-by-Step Guide for Beginners...
- A Art and Culture Attention, the Final Episode of Margo is Almost Here!...
- H Health and Medicine Novomin: What is it and how to use it?...
- L Leisure and Entertainment How to Land on the Moon: Your Comprehensive Guide...
Answers on questions: Business
- B Business The strength of the economy depends on the balance of production and consumption of goods and services. True or False?...
- B Business Does anybody want to be more than a friend to me?...
- B Business Best Birdies produces ornate birdcages. The company s average cost per unit is $22 when it produces 2700 birdcages. If $5700 of the costs are fixed, and the plant manager...
- B Business The CEO of Coffman Enterprises wants to export products to foreign markets.However, top executives at Coffman are concerned that the firm will face fierce competition...
- B Business Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services....
- B Business Brooks Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $200,000, pay interest semi-annually on June...
- B Business A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps...
- B Business Suppose there are only two firms (1 and 2) serving the market for smartphones and the inverse demand curve for the whole market is given by P = 48 - Q. Also, both firms...
- B Biology There is a general tendency for liquids to conduct electricity better than solids due to a) the mobility of particles in a liquid rather than their fixed positions in...
- H Health Aposition or opinion or judgment reached after consideration is called select one: a. being indecisive b. making due with what you ve got c. searching the views of others...
Ответ:
$16,000
Explanation:
The computation of the amount reported for the interest payable is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $800,000 × 8% × (3 months ÷ 12 months)
= $16,000
The three months should be taken from October 1 To November 1 and November 1 to December 31
We simply applied the above formula so that the interest payable amount could come
Ответ:
6