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NemiM [27]
2 years ago
15

On July 1, Aloha Co. exercises a call option that requires Aloha to pay $408,000 for its outstanding bonds that have a carrying

value of $416,000 and a par value of $400,000. The company exercises the call option after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds.
Business
1 answer:
mars1129 [50]2 years ago
4 0

The journal entry for the retirement of bonds will affect a debit to Bonds Payable and Premium on bonds payable accounts for an amount of $400,000 and $12,000 respectively; and a credit in the balances of Cash and Gain on retirement of bonds accounts for a sum of $408,000 and $4,000 respectively.

<h3>What is journal entry?</h3>

The systematic manner of record-keeping of financial transactions in a business in the chronological order of their occurrence is known as a journal entry. A journal entry has an equal amount of debit and credit effects.

Hence, the significance of a journal entry has been aforementioned.

Learn more about a journal entry here:

brainly.com/question/20421012

#SPJ1

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Sometimes ___________ is used to create a realistic situation with genuine reactions from participants.
Lady bird [3.3K]
Hi,

I believe that the answer to your question is "A nonmonetary incentive or "Case observation"

Just a guess :) 
6 0
3 years ago
Cayahuga Hardwood produces handcrafted jewelry boxes. A standard-sized box requires 8 feet of hardwood in the finished product.
Serjik [45]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
3 years ago
EK Chemical Company sells a specialty chemical in packages marked 83 g. In reality, EK has set the process mean at 84.0 g, and t
Lemur [1.5K]

Answer:

0.7207

Explanation:

Mean  μ = 84g

SD σ = 1.85g

Upper specification limit (USL) = 88g

Lower specification limit (LSL) = 78g

Cpk = Min[USL - μ/3σ,  μ-LSL/3σ]

Cpk = Min[88 - 84/3*1.85, 84-78/3*1.85]

Cpk = Min[4/5.55, 6/5.55]

Cpk = Min[0.7207, 1.0811]

Cpk = 0.7207

So, the process capability index for the current manufacturing process is 0.7207

5 0
3 years ago
The local printing company purchases a new copy machine that reduces the cost of making a color copy by ten cents a copy. It nor
padilas [110]

Answer:

D. $1400

Explanation:

Given that

Tax rate = 28%

New purchase reduces cost by 10 cents

Copier makes $50000

Thus,

Annual taxes on purchase = (50000/10) × 28%

= 5000 × 28%

= 5000 × 0.28

= $1400

Therefore, Annual taxes on purchase is $1400.

8 0
3 years ago
What is the difference between a shortage and scarcity? A shortage can be temporary or long-term, but scarcity always exists. A
Alika [10]

Answer:

A shortage can be temporary or long-term, but scarcity always exists.

Explanation:

Scarcity is a basic concept in economics which explains that human wants are unlimited and thus termed insatiable as the resources required to meet those needs are in limited supply.

As such scarcity as a concept has always been in existence and will always b. Shortage on the other hand is a limited supply of an item which may be in the short term or in the long run. While a shortage may be dealt with in time, scarcity will always be in existence.

8 0
4 years ago
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