Park Corporation is planning to issue bonds with a face value of $2,100,000 and a coupon rate of 9 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 7.5 percent. Required:
a. Prepare the journal entry to record the issuance of the bonds.
b. Prepare the journal entry to record the interest payment on June 30 of this year.
c. How will Park present its bonds on its June 30 balance sheet?

Answers

Answer 1

a.The journal entry to record the issuance of the bonds. Debit : Cash $677,135 and Credit : Bond Payable $677,135

b.The journal entry to record the interest payment on June 30 of this year. Debit : Bond Payable $43,715 ; Debit : Interest Charge $50,785 ;  Credit : Cash $94,500

c.Presentation of bonds on June 30 balance sheet . Non - Current Liabilities : Bond Payable $633,420

Issuance of the bonds

Since Park Corporation is paying 7.5 percent ( Market Rate) compared to the coupon 9 percent, the Bonds will be issued at a discount. The amount recognized at issuance will be the Present Value of $677,135.

Determined as follows :

FV = $2,100,000

Pmt = ($2,100,000 x 9 %) / 2 = $94,500

N = 10 x 2 = 20

i = 7.5 %

PV = $677,135

Interest Payment

Since the effective-interest amortization method is used, the interest is calculated as follows :

Interest Charge = Present Value x Interest rate

                           = $677,135  x 7.5 %

                           = $50,785

Bonds Payable Presented on Financial Satement

Bond Payable = Present Value - ( Cash Payment - Interest charge)

                        = $677,135 - (94,500 - 50,785)

                        = $633,420

In conclusion, Since Park Corporation is paying 7.5 percent ( Market Rate) compared to the coupon 9 percent, the Bonds will be issued at a discount of $677,135

Learn more about Bonds and effective-interest amortization method here : https://brainly.com/question/23265123


Related Questions

how goal succession take place? explain the condition responsible for goal succession​

Answers

the new or modified goals are incorporated or substituted for the existing one in such a manner that they do not change the spirit of the existing goals

The new goals are such that individuals or the organisation are willing to state publicly.

re
Project: Prepare Scenarios Using Gidgits Galore
Assignment Directions:
Part A: Prepare your own scenarios, using Gidgits Galore as your backdrop.
1. Provide an example of a "wrongful discharge" at Gidgits Galore.
2. Provide an example of a "retaliatory discharge" at Gidgits Galore.
3. Provide an example of "disparate treatment" at Gidgits Galore.
4. Provide an example of "disparate impact" at Gidgits Galore.
5. Provide an example of a "bona fide occupational quality" at Gidgits Galore.
Length: Each scenario must be at least one-half to one page in length

Answers

The answers to the questions about work in Gidgits Galore  is given below:

An example of a "wrongful discharge" at Gidgits Galore is said to be when an office supervisor tells an employee to carryout a task that is said to be against safety laws such as do a sudden urgent work that needs urgent approval and it is one that cannot wait and the employee will not be wearing safety gadget, the employee have the right to refuse and He or she cannot be fired for his or her refusal.

An example of a "retaliatory discharge" at Gidgits Galore occurs when an employee reports the director of the company for encouraging bribery in the workplace and when the employer is said to finds out about the bribery sandal and then confronts the director who then fires them for it, this can serves as an an example of retaliatory discharge.

What is an example of "disparate treatment" at Gidgits Galore?

Note that the term disparate treatment connote a deliberate employment discrimination.

An example of this is making sure that only employees with master's degree in a the firm can on some good and special cases (cases or jobs that will bring big allowance if the job is done well) excluding those who came in with bachelor's degree.

An example of "disparate impact" at Gidgits Galore is telling all employees to be involved in a particular task and using results from that task given to  unintentionally remove some particular minority employees disproportionately.

An example of a "bona fide occupational quality" at Gidgits Galore is When directors, supervisors and  other company's employees must join a union in the company,  be a member of that union (Example is National association of management, accountancy etc.) so as to be able to fulfill their job duties or requirements.

Learn more about wrongful discharge from

https://brainly.com/question/4303507

List two basic questions belonging to the field of ethics.

Answers

Answer: Here are three basic questions of ethics:

Does your decision conflict with any of the core ethical values?

How will your decision affect others?

Are there regulations, rules, or policies that restrict your choices/actions?

Explanation:

I hope this helps!

Which of the following is considered the more industrial form of fishing?

A: Grouping
B: Netting
C: Gathering

Answers

Answer:

B

Explanation:

I hear netting a lot when people talk about fishing. I don't hear the other two when talking about fishing.

The Circular shape of a roundabout reduces what

Answers

It reduces the likelihood of t-bone or head-on collisions and reduce the speeds to 15 to 20mph

It Isn't necessary to consider convenlence Issues when selecting a bank.
O True
O False

Answers

It should be false bec u have to consider convenience issues when selecting bank
it should be false i agree

What is one of the primary concerns of socially responsible consumers?
A. Customer service
B. Low price
C. Socialism
D. Sustainability

Answers

One of the primary concerns of socially responsible consumers is sustainability.

Who is a socially responsible consumer?

A socially responsible consumer is a consumer who cares about the social impact that the products he buys have on the world around him.

It is to be noted that socially responsible consumers avoid products that they think harm society. Instead, they buy goods and services from companies that they believe do a better job of taking care of the world.

Hence, One of the primary concerns of socially responsible consumers is sustainability.

Learn more about socially responsible consumer here : https://brainly.com/question/16028821

Commonwealth Delivery is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo aircraft, the company has more than 670 aircraft and 57,000 vehicles and trailers that pick up and deliver packages. Assume that Commonwealth Delivery sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:
Delivery truck cost $42,000
Accumulated depreciation 26,800
Required:
Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: a. $15,200 cash
b. $16,500 cash
c. $14,000 cash

Answers

Answer:

the answer is Eva b e c Odyssey

Toryn, Inc., a major player in semiconductors, makes small investments of 5-10 percent of a firm's equity in many emerging technology companies. Toryn buys the company outright once that company's technological uncertainty resolves. The option that Toryn, Inc. uses is called a ________ option.

Answers

Toryn, Inc uses Strategic company decisions option in making decision of making of small investments and buying of the company.

What is a Strategic company decision?

A strategic decisions refers to vital decisions made on the environment where the firm operates, the resources and the people who form the company.

In essence, these decisions are important because they deal with harmonizing organizational resource capabilities with the threats and opportunities.

Read more about strategic decision

brainly.com/question/26782448

Contract buying a. A practice where big businesses would put a contract out on labor union leaders b. A practice where large businesses would buy out their smaller competitors c. A practice that exploited some white families' desires to buy homes in integrated neighborhoods d. A practice that exploited black families' inability to obtain regular home mortgages

Answers

It should be noyed that contract buying a practice where large businesses would buy out their smaller competitors.

What is Contract buying?

Contract buying can be regarded as a practice whereby people with big business put a huge amount on an asset and complete it installmentally.

It is a way big business buy out their smaller competitors.

Learn more about Contract buying at:

https://brainly.com/question/25785890

A company has agreed to provide a customer with a package of standard car maintenance services for $100. The package consists of an oil change, for which the company normally charges $75, and a tire rotation, for which the company normally charges $50. What amount of revenue should be recognized?

Answers

The amount of revenue that should be recognized by the company is $100 (divided into Oil change, $60, and Tire rotation, $40).

What is revenue recognition?

According to the revenue recognition principle under the U.S. GAAP and IFRS, revenue is recognized when some performance criteria have been met.

The principle also recognizes that revenue recognition should be based on the percentage of the value when there is more than one performance criterion involved.

Data and Calculations:

Standard car maintenance services price = $100

Oil change = $75

Tire rotation = $50

Total normal cost = $125

Percentage of oil change to normal cost = 60% ($75/$125 x 100)

Percentage of tire rotation to normal cost = 40% ($50/$125 x 100)

Revenue recognition:

Oil change = $60 ($100 x 60%)

Tire rotation = $40 ($100 x 40%)

Thus, the amount of revenue that should be recognized is $100 (divided into Oil change, $60, and Tire rotation, $40).

Learn more about revenue recognition principles at https://brainly.com/question/26275324

A perfectly competitive firm has fixed costs of $1 million a month, variable costs of $2 million a month and product sales of $3 million a month. what statement is a correct analysis of the situation

Answers

Assuming a perfectly competitive firm has fixed costs of $1 million per month the company is making $0 profit.

The correct analysis

Using this formula

Analysis=Sales-Fixed cost-Variable cost

Where:

Sales=$3 million

Fixed cost=$1 million

Variable cost=$2 million

Let plug in the formula

Analysis=$3 million-$1 million-$2 million

Analysis=$0

Inconclusion the company is making $0 profit.

Learn more about analysis here:https://brainly.com/question/890849

if we consider Airbnb to be new entrant into the hospitality short stay vacation industry. according to Porter's Five forces, how attractive is this industry? What might be particularly difficult for a new startup

Answers

The entrance of Airbnb into the hospitality short stay vacation will be  attractive but there are some market threats that need to be effectively managed.

What is the Porter's Five forces?

These forces are economic force that determines the competitive intensity and attractiveness of a market.

According to Porter, the Five forces in the every market includes::

threat of new market players,threat of substitute products,power of customers, power of suppliers, industry rivalry

In conclusion, the hospitality firm needs to evalute the forces to understand the industry structure and to determine the best corporate strategy for its operation.

Read more about Porter Five forces

brainly.com/question/14632175

Microsoft receives a cash payment in advance for cloud services is an example of
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

On December 31st a calendar year corporation
owes employees unpaid payroll
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

Answers

1. Unearned Revenue
2. Accrued Expense

Business transactions

Answers

Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services

In your opinion what do you think is the best anime game and why then put their sales.

Answers

Answer:

nourto 4 is my faveret game in anmie sauske and oboito are my faifret peple in the game

Explanation:

Question 5 of 20
If you invest your money today, your future purchasing power will most likely
A. go up and down
B. stay the same
C. increase
O D. decrease
SUBMIT

Answers

When you invest your money, it is likely that in future your purchasing power will A. go up and down.

What will happen to your purchasing power?

If you invest your money today, there is a chance that you will get back more money than you deposited, or less than you deposited.

This means that you will either have more money or less money to purchase goods and services. In other words, your purchasing power will go up and down.

Find out more on purchasing power at https://brainly.com/question/2286004.

What do Indirect distribution channels use to sell their products to the end customers?
Question 1 options:
(A) - advertisements
(B) - middlemen

Answers

Answer:

B

Explanation:

They use middlemen men because the fastest way to advertise your bussiness is through advertising

Answer:

(B) - middlemen

Explanation:

Suppose there will be global catastrophe unless we hold total carbon dioxide emissions at or below 35 million tons per year. As a result, 35 million tons of emissions permits are auctioned off and the proceeds distributed equally between everybody on Earth. Is this better, worse, or basically the same as allocating to each of the 7 billion people on Earth 10 pounds of untradeable emissions permits per year?
a. better, because it lowers the cost of emissions abatement
b. worse, because it raises the cost of emissions abatement
c. about the same
d. It is impossible to say.

Answers

If 35 million tons of emissions permits are auctioned off, compared to each person getting 10 pounds of untradable emissions, it is a. better, because it lowers the cost of emissions abatement.

Why is it better?

If everyone got 10 pounds of untradable emission, the amount of emissions would be:

= (10 x 7 billion) / 2,000 pound per ton

= 35 million pounds

This is the same as the total amount of the emission permits but it is still more expensive than issuing permits because those permits are tradable.

Non-tradable permits will mean that some will exceed their permit and will be unable to share their emissions.

Find out more on emission permits at https://brainly.com/question/5130019.

What is the purpose of long-term disability insurance?
A. To replace a portion of a person's income if that person cannot
work
B. To provide a guaranteed loan to pay expenses until a person is
able to work again
C. To provide financial support for loved ones after a person dies
O D. To pay medical expenses if a person is hospitalized for an illness
or injury

Answers

The main purpose of of long-term disability insurance is: A. To replace a portion of a person's income if that person cannot work.

What is  long-term disability insurance?

Long-term disability insurance can be defined as the type of insurance coverage that help to guide a person income if the person is unable to work as a result of illness or injury.

Long-term disability insurance  is important  when it comes to unforeseen circumstance.

Inconclusion to replace a portion of a person's income if that person cannot work.

Learn more about Long-term disability insurance here:https://brainly.com/question/25938882

Which of these would Congress look to do during a recession, as it pertains to fiscal policy?
a. Raise taxes
b. Raise government spending
c. Decrease the discount rate
d. Print more money

Answers

Answer:

Raise taxes

Explanation:

This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation

Which of the following statements describes the most likely reason why
ethical employees are important for a company?
O A. It can show caring.
O B. It can show morality.
O C. It can feel good.
O D. It can save money

Answers

Answer:

D. they can save money this way.

how can both stocks and bonds generate a positive return for investors
A. paying dividends
B. Paying Interest
C. Tax Deduction
D. Price Appreciation

Answers

A stock and bond can generate a positive return for investors by tax deduction.

What is a stock and a bond?

A bond is a debt instrument used by businesses to raise capital needed for business operations. Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested.

A stock gives the holders ownership right in the company. Shareholders are paid dividends and when the value of the company appreciates, the wealth of shareholders increases.

To learn more about bonds, please check: https://brainly.com/question/13326746

Comics Alive is an animation studio with a strong creativity culture where the employees work together to imagine new cartoon characters and bring them to life via digital animation. If you were to visit Comics Alive, you would likely encounter observable artifacts such as

Answers

If you went to Comics Alive, based on their organizational culture, you would likely encounter observable artifacts such as  a. idea boards for current projects, varied kinds of seating, and advanced video technology.

Why would these be encountered?

Companies like Comics Alive which place a strong emphasis on creativity and team work, will use certain artifacts to achieve this.

They will use idea boards that have current projects which inspires creativity by allowing people to give ideas on those projects. Advanced video technology also allows for teamwork regardless of location.

Find out more on creativity in businesses at https://brainly.com/question/14458637.

What role does a company like UPS play in the supply chain?

Answers

UPS is a great example of transportation and delivery services. Vehicles that move products to consumers are the final parts of a supply chain

A company has the following liabilities as of December 31:

Accounts payable $150,000
Notes payable (current portion) 217,000
Salaries and wages payable 55,000
Installment notes payable 1,140,000
Interest payable 32,000
Payroll taxes payable 15,500

What is the amount of total current liabilities reported on the balance sheet?

a. $319,500
b. $469,500
c. $1,609,500
d. $437,500

Answers

The amount of total current liabilities reported on the balance sheet will be $469,500

Which of the following is NOT a common way businesses pay employees?

Answers

Answer:

yearly

Explanation:

Hope this helps:)...if not then sorry for wasting your time and may God bless you:)

The answer would be yearly<3

ACCOUNTING - The matching concept
a. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance
b. states that expenses related to revenue be reported at the same time the revenue is reported
c. addresses the relationship between the journal and the balance sheet
d. determines whether the normal balance of an account is a debit or credit

Answers

b. states that expenses related to revenue be reported at the same time the revenue is reported

hurry!!!! (economics) This graph shows changes in GDP and the unemployment rate in the United States in recent years.

A graph titled Annual Change in U S Unemployment and G D P from 2005 to 2012 has year on the x-axis and percent of change on the y-axis, from negative 4 to 4 in increments of 2. Between 2008 and 2009 the G D P decreased by about 3 percent. Between 2008 and 2009, the unemployment rate increased about 1.5 percent. When unemployment was at the highest point, G D P was at the lowest point.

Which statement most accurately describes the trends shown on this graph?

When GDP falls, unemployment rises.
GDP and unemployment have little to do with each other.
When GDP rises, unemployment rises as well.
GDP and unemployment rise at times of world crises.

Answers

Answer:

A. When GDP falls, unemployment rises.

Explanation:

PLEASE HELP WITH THIS ASSIGNMENT
The United States is a mixed market economy based on the ideals of capitalism and a representative republic. However, some argue that the US government is too big and overreaching. Conversely, others argue the government is needed to protect consumers from deceptive business practices, and more regulation and government oversight is the answer. What are your thoughts? Is the US government too big or not big enough?

Answers

Answer:

Government is to big

Explanation:

The US government is overly expansive. Many regulations on private companies need to be removed because they only hurt small businesses and let big corporations monopolize certain markets.

What is the mixed market economy model in the USA?

Due to the significant roles that both privately held companies and the government play, the United States is classified as a mixed economy. In fact, the relative contributions of the public and private sectors have been the subject of some of the longest-running discussions in American economic history.

Private ownership is emphasized by the American free-market system. The majority of goods and services are produced by private firms, and about two-thirds of the nation's total economic output is used by individuals for personal purposes. In fact, the importance of consumers is so enormous that the country is occasionally referred to as being a "consumer economy."

This emphasis on private hands stems in part from American views about individual liberty. Furthermore, most Americans believe that an economy dominated by private ownership will be more efficient than one dominated by government ownership.

Learn more about mixed market economy, from:

brainly.com/question/2343400

#SPJ2

Other Questions
Click on ONE answer only.What does this sign indicate?A. The right lane ends and traffic must merge left.B. The left lane ends and traffic must merge right.C. Traffic is moving in both directions.D. Traffic in the right lane must turn right. This time period allowed for great advancements in technology and human health but it also led to many environmental problems. 5cGroup of answer choicesagricultural revolutionamerican revolutionindustrial revolutionpaleolithic era What is the distance between B and C? The Graph Below. Consider the cross aa bb cc dd ee x aa bb cc dd ee. If these 5 allele pairs all assort independently, then the probability that any individual offspring will have the genotype aa bb cc dd ee is 1 out of. Cosmic background radiation indicates what?The universe is contracting.The universe is at rest.The universe is expanding.The universe will explode.whoever answers correct gets brainliest! Help!! This is iready will get brainiest!! Please answer!! Which of the following describes this? why do people call buildings buildings if they are already built. What is the best anime to seeA Nartuo B MHAC AOTD black clover The radius of a circle with area A is approximately A/3. The area of a circular mouse pad is 51 square inches. Estimate its radius to the nearest integer. Which system of equations Name the shaded portion of this square as a percent, as a decimal number, and as a reduced fraction. HELLLPPP I AM SO CONFUSED!! Please Hurry:Read the passage from "Names/Nombres" by Julia Alvarez.By the time I was in high school, I was a popular kid, and it showed in my name. Friends called me Jules or Hey Jude, and once a group of troublemaking friends my mother forbade me to hang out with called me Alcatraz. I was Hoo-lee-tah only to Mami and Papi and uncles and aunts who came over to eat sancocho on Sunday afternoons old world folk whom I would just as soon go back to where they came from and leave me to pursue whatever mischief I wanted to in America. JUDY ALCATRAZ, the name on the "Wanted" poster would read. Who would ever trace her to me?Based on this passage, what inference can be made about the way Alvarez became accustomed to life in the United States?A) She felt more comfortable in the company of her Dominican family.B) She made many American friends but refused to let go of her culture.C) She introduced her American friends to many Dominican customs.D) She became very well accustomed to life among the Americans. 9. If triangle GFE - triangle GHJ, find the value of x. There are 224 boys and 168 girls in the seventh grade. In which class is the ratio of boys and girls equivalent to the ratio in the seventh grade? Class Boys Girls A 12 8 B 18 10 C 15 9 D 16 12 Hope is the thing with feathersThat perches in the soul,And sings the tune without the words,And never stops at all,And sweetest in the gale is heard;And sore must be the stormThat could abash the little birdThat kept so many warm.I've heard it in the chillest land,And on the strangest sea:Yet, never, in extremity,It asked a crumb of me."Hope is the thing with feathers,"Emily DickinsonUse the word choice in this poem to answer the questions.What is the mood of the poem?What words help create the mood?What is the poems tone?What words help convey the tone? Which exocrine gland is indicated by the arrow? pancreas salivary glands liver lacrimal glands. Lisa, Beth, and Tim painted their grandparent's house. The amount of time Lisa painted can be represented by x. The amount of time Beth painted is 1 3/5 times the amount Lisa painted The amount of time Tim painted is 1 2/3 times the amount Lisa painted. The total amount of time Lisa, Beth, and Tim painted is 24 hours. What is x, the amount of time painted by Lisa? A) 5 1/8 B) 5 1/2 C) 5 5/8 D) 5 34 Which 20th-century Chinese leader introduced free market reforms incommunist China after the end of the Cultural Revolution?A. Deng XiaopingB. Chiang Kai-shekC. Mao ZedongD. Sun Yat-sen tasks on a checklist should be written in as general terms as possible so that developers and artists have enough creative freedom to create interesting products.O trueO false