Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kelly industries needs to raise capital for expans

Kelly Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of...

70.2K

Verified Solution

Question

Accounting

Kelly Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5% 20-year bonds dated June 1, 20X1 with interest payment dates of December 1 and June 1. Kellys year-end is December 31. Assuming the bonds were issued on June 1, 20X1 at 93 5/8 and the company uses the straight-line method of amortization, the semiannual interest payment on December 1, 20X1 would include a

A. debit to interest expense for $39,093.75

B. debit to discount for $3,187.50

C. debit to discount for $1,593.75

D. credit to cash for $75,000.00

E. credit to bonds payable for $936,250.00

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Taco Smell sells only tacos. They offer three types of tortillas, four types of meat, four...

Basic Math
Q

Which of the following will increase the amount of product present at equilibrium for the reaction:...

Chemistry
Q

Draw a creativity / beautiful infographics about Electrostatic Discharge (ESD).

Electrical Engineering
Q

Consider the following function.k(x) = -31x1Step 2 of 2: Find two points on the graph...

Basic Math
Q

the time Suppose 13 flights are randomly selected and the number of on time flights...

Statistics
Q

Exercise 20-8(Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports...

Accounting
Q

Determine the average rate of return for a project that is estimated to yield total...

Accounting
Q

QUESTION 1 Strategic meeting results in the following: Reach out to the NYC...

Accounting
Q

Cost per Equivalent Unit The cost of direct materials transferred into the Filing Department of...

Accounting
Q

purchase related transactions credit memo. a. Journalize Stylon's entry...

Accounting
Q

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility...

Accounting
Q

Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead...

Accounting