Purchase Solution

account payable; price of bonds; effect to AP

Not what you're looking for?

Ask Custom Question

An accounts payable could result from - the purchase of accounts for cash? purchase property, plant and equip on credit? purchase goods and services from suppliers on credit?

When bonds are issued at a premium are the bonds sold for less than their face amount? interest expense on the bonds will be more than the interest paid? Interest expenses on the bonds will be less than the interest paid? the coupon rate is less than the market rate?

The market value of a bond is the sum of the prime rate? the coupon rate, market rate or dividend rate?

When a supplier makes a downward adjustment in the amount owed by a creditor a decrease in the amount of AP to an supplier and an increase in cash? increase in the amount of AP to a supplier and a decrease in an asset such as inventory? decrease the amount of ap to a supplier and decrease an asset such as inventory? decrease the amount of AP to a supplier and decrease cash?

Which is not associated with bonds - maturity value, coupon rate, maturity rate or face amount?

Current maturity of long term debt are classified with long term debt? permit a more accurate determination of working capital? represent cash that has been set aside for debt payments due within a year?

Purchase this Solution
Solution Summary

Response is in bullets so you don't get bogged down in lengthy technical discussions. Crisp, clear answers that get right to the point.

Solution Preview

An accounts payable could result from:

? the purchase of accounts for cash? No (since cash exchanged, not still due)
? purchase property, plant and equip on credit? Yes, "on credit" is the key
? purchase goods and services from suppliers on credit? Yes, "on credit" is the key,

Premium Bonds:

? When bonds are issued at a premium are the bonds sold for less than their face amount? More
? Interest expense on the bonds will be more than the interest paid? No, less. Premium received will reduce interest payments down to actual interest expense burden.
? Interest expenses on the bonds will be less than ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • how do you value PPE, bonds, AR, inventory and AP

    The expert determines how we value PPE, bonds, AR, inventory and AP.

  • Accounts Payable Balance

    We can use the following equation Ending Accounts Payable = Beginning Accounts Payable + Purchases - Payments 6,000 = Beginning AP + 18,000-22,000 Beginning AP = 10,000 The solution explains how to calculate the balance in the accounts payable account

  • Reconciling items for indirect cash flow presentation

    Why is a decrease in accounts payable a subtraction when adjusting from net income to operating cash flow? A decrease in AP means that payments to vendors were greater than expenses accrued.

  • P7.8 7.10 Unearned Rev Bonds Payable Kirkland Theater Coley Co.

    527668 P7.8 7.10 Unearned Rev Bonds Payable Kirkland Theater Coley Co. E7.8 Unearned revenues-ticket sales Kirkland Theater sells season tickets for six events at a price of $252. For the 2010 season, 1,200 season tickets were sold.

  • Comprehensive Bond Problem

    Jun 1, 10 Cash Amount Bonds Payable 2,400,000 Premium on Bonds Payable Amount Maturity value of bonds payable $2,400,000 Present value of $2,400,000 due in 8 periods at 2.5% Formula Present value of interest

  • Notes Payable & Accured Interest

    349335 Horizontal model, journal entry Mikor has an account payable of 7,700$ due to Smiley Inc. one of its suppliers. The amount was due to be paid on October 15, 2007.

  • Financial Data Reported by Mac Company

    Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. The issuance of the bonds.

  • Calculating Annual Contract Rate

    Required For each of the following three separate situations, (a) determine the bonds' issue price on January 1, 2005, and (b) prepare the journal entry to record their issuance. 1. Market rate at the date of issuance is 8%. 2.

  • Accounting Concepts

    In the balance sheet, the account, Premium on Bonds Payable, is a Added to bonds payable. b Deducted from bonds payable. c Classified as a stockholders' equity account. d Classified as a revenue account. 15.

View More Related Solutions