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eduard
2 years ago
7

HW2: ABC Co. acquired the $100,000, 6% bonds on 2001/12/31. Market price of the bonds: $102,723 (including brokerage fee of $153

). Effective interest rate is 5%. Bond interests are payable on 12/31. ABC attempts to collect the cash flows and sell. It prepares the following bond amortization schedule. ABC sold the bonds on 2004/9/30. Prepare related journal entries for each period.
Periods Cash Interest Revenue Premium Amortization Carrying Value
2001/12/31 102,723
2002/12/31 6,000 5,136 864 101,859
2003/12/31 6,000 5,093 907 100,952
2004/12/31 6,000 5,048 952 100,000

The fair market value of the bonds are as follows:
Periods Fair Market Value
2002/12/31 104,200
2003/12/31 103,000
2004/9/30 105,500
Business
1 answer:
weqwewe [10]2 years ago
5 0

The preparation of the related journal entries for each period for ABC Co. is as follows:

<h3>Journal Entries:</h3>

2001/12/31 Debit Bonds Receivable $100,000

Debit Bonds Premium $2,723

Credit Cash $102,723

2002/12/31 Debit Cash $6,000

Credit Interest Revenue $5,136

Credit Amortization of Bonds Premium $864

2003/12/31 Debit Cash $6,000

Credit Interest Revenue $5,093

Credit Amortization of Bonds Premium $907

2004/9/30 Debit Cash $105,500

Credit Interest Revenue $3,786

Credit Amortization of Bonds Premium $952

Credit Bonds Receivable $100,000

Credit Realized Gain $762

<h3>Data and Calculations:</h3>

Periods          Cash     Interest Revenue      Premium        Carrying Value

                   Receipt                                  Amortization

2001/12/31                                                                                    102,723

2002/12/31     6,000             5,136                   864                    101,859

2003/12/31     6,000            5,093                   907                   100,952

2004/12/31     6,000            5,048                   952                   100,000

The fair market value of the bonds:

Periods Fair Market Value

2002/12/31 104,200

2003/12/31 103,000

2004/9/30 105,500

<h3>Journal Entries Analysis:</h3>

2001/12/31 Bonds Receivable $100,000 Bonds Premium $2,723 Cash $102,723

2002/12/31 Cash $6,000 Interest Revenue $5,136 Amortization of Bonds Premium $864

2003/12/31 Cash $6,000 Interest Revenue $5,093 Amortization of Bonds Premium $907

2004/9/30  Cash $105,500 Interest Revenue $3,786 Amortization of Bonds Premium $952 Bonds Receivable $100,000 Realized Gain $762

Learn more about recording bond transactions at brainly.com/question/16048929

#SPJ1

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Since the student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days, one can say that the  statement suggests that option c) there is a trade off between studying and sleep.

<h3>What means trade-off?</h3>

The Definition of trade-off is known to be the act or the process that is used in equalizing the factors all of which are not able to achieve at the same time such as the trade off between studying and sleep.

Note that the term  trade-off is seen as a point where there is a situational decision that entails the act of lowering or losing one quality, quantity and even  property so that one can be able to get  other aspects or things,

Therefore, Since the student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days, one can say that the  statement suggests that option c) there is a trade off between studying and sleep.

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A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that a) students are more concerned about good grades than health b) society should value sleep more c) there is a trade off between studying and sleep d) society should value good grades more than sleep

4 0
1 year ago
Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are​ ava
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Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

or

= $ 10 / 1

or

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

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Answer:

In marketing, price discrimination refers to selling the same product to different buyers at different prices depending on each buyer's purchasing power or preferences which result in them being able and willing to pay different prices. E.g. a movie theater that charges different prices depending on the age of the movie goers.

In this case, the fact that a factory is located far away from your house might result in a higher price due to delivery costs, but that doesn't meant that it is using price discrimination. E.g. I just purchased a new refrigerator online and I had to pay a delivery fee that increased its price because the seller is from another state. I purchased the refrigerator from that retailer because it lower prices including delivery costs, but someone that purchased it from the same city will probably pay even less than me. But it is just logistics, since I live far away I have to wait 3 days for delivery and pay for it.

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3 years ago
discuss the costs and benefits associated with statistical versus judgmental forecasts for labor supply. under what condition mi
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Answer:

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It prevents future shortage of qualified employees

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2 years ago
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Answer:

(C) Higher.

Explanation:

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In the first case

Given that

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RATE = 9%

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The formula is shown below

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The formula is shown below

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So as we can see that the price of the bond would increased

5 0
3 years ago
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