(A) Introduction: If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending. To choose: Pass journal entry for accrue interest

Question

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Answer 1

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

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Students have asked these similar questions

False Value Hardware began 2013 with a credit balance of $31,900 in the allowance for sales returns account. Sales and cash collections from customers during the year were $680,000 and $640,000, respectively. False Value estimates that 5% of all sales will be returned. During 2013, customers returned merchandise for credit of $23,000 to their accounts. False Value's 2013 income statement would report net sales of: a. $657,000. b. $646,000. c. $648,100. d. $671,100.

Capitalisation method

Subject: financial accounting

Answer 2

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 6

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

Answer 7

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

Answer 8

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

Answer 9

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

Answer 10

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

Answer 11

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

Answer 12

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

Answer 13

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

Answer 14

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 15

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 7 - Prob. 7.1ME Ch. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4ME Ch. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6E Ch. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...

(B) Introduction: If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest. To choose: Pass journal entry for accrue interest

(D) Introduction: Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow. To choose: Market rate has been reduce, is this situation is better for company or not.

(E) Introduction: Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement. To choose: What type of account will be affected?

Want to see the full answer?

Chapter 7 Solutions

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?