On November 1, 2019, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2019, and interest is payable each November 1 and May 1. Davis uses the straight-line method of amortization.
How much is the semi-annual interest expense when the straight-line method of amortization is utilized?
A. $1,095.
B. $2,055.
C. $2,190.
D. $2,010.
Solved
Show answers
More tips
- C Computers and Internet How to Create a Website for Free and Easy?...
- O Other Everything You Need to Know About Kudyabliks...
- C Computers and Internet The Twitter Phenomenon: What it is and How to Use it...
- C Computers and Internet How to Choose a Laptop: Expert Guide and Tips...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
Answers on questions: Business
- B Business Hello does anyone lkie bikes...
- B Business A company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record...
- B Business A retail store is doing a $50 gift card giveaway by selecting 1 customer from a pool of registered customers. The pool of registered customers has males and females of...
- B Business What are critical ways Human Resources (HR) helps new ventures and small businesses succeed?...
- B Business Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on...
- B Business Technical tool that provides users with the ability to study, control, andimprove processes of all types is a:...
- M Mathematics A restaurant charges large parties an amount that depends on the number of people that are eating. The restaurant charges $650 for 25 people and $1,850 for 80 people....
- P Physics Dos bloques son acelerados a lo largo de una superficie sin fricción como se muestra en la figura 8. Fuerzas de fricción evitan que los bloques se deslicen uno respecto...
- H Health Explain the anatomy and physiology of brain contusion...
- M Mathematics Anyone know the answer?...
Ответ:
A.) $1,095
Explanation:
Bond value = $30,000
Rate = 7%
Period = 10 years
Issue price = $29,100
Bond value × rate :
30,000 × 0.07 = $2100
Semi annually:
$2100 / 2 = $1050
(Bond value - issue price) ÷ (period × 2)
($30,000 - $29,100) / (10 × 2)
$900 ÷ 20 = $45
$1050 + $45 = $1,095
Ответ:
Concise writing means using the fewest words possible to convey an idea clearly. There's a reason why writing concisely is recommended so often—it's excellent advice.
Explanation:
Please mark me brainlliest