On October 1, 2016, Indigo Corp. issued $960,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. i. Prepare the journal entry to record the issuance of the bonds.
ii. Prepare the adjusting entry to record the accrual of interest on December 31, 2016.
iii. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016.
iv. Prepare the journal entry to record the payment of interest on October 1, 2017.
v. Prepare the adjusting entry to record the accrual of interest on December 31, 2017.
vi. Assume that on January 1, 2018, Indigo pays the accrued bond interest and calls the bonds. The call price is 104. Record the payment of interest and redemption of the bonds.

The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure

Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.