On april 1, 2018, western communications, inc., issued 12% bonds, dated march 1, 2018, with face amount of $44 million. the bonds sold for $43.3 million and mature on february 28, 2021. interest is paid semiannually on august 31 and february 28. stillworth corporation acquired $44,000 of the bonds as a long-term investment. the fiscal years of both firms end december 31, and both firms use the straight-line method. prepare the journal entries to record (a) issuance of the bonds by western and (b) stillworth's investment on april 1, 2018

cash                43,300,000 debit

discount on BP 1,  140,000 debit

   bonds payable              44,000,000 credit

   interest payable                 440,000 credit

-- to record issuance of BP --

investment on bonds 44,000 debit

            cash                   43,050 credit

            discount on bonds 950 credit

-- to record purchase of bonds --

Explanation:

Face amount: 44,000,000

interest payable   440,000

issued at          43,300,000

discount               1,140,000

accrued interest: 44,000,000 x 12% / 12 = 440,000

The company issued the bonds for less than his face value. The bonds have a discount.

carrying value of the bonds at August 31th

1,140,000 / 6 = 190,000 amortization

1,140,000 - 190,000 = 950,000

Carrying value  44,000,000 - 950,000 = 43,050,000

Investment: 44,000 in bonds

the bonds will also have a discount so it were purchase at 43,050

44,000,000 --> 43,050,000

       44,000 --> 43,050

christopher columbus sail the ocean blue 1492

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know