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pashok25 [27]
1 year ago
9

If the market interest rate drops to 5% on December 31, 2022, it will cost $458,290 to retire the bonds. Record the retirement o

f the bonds.
Business
1 answer:
dlinn [17]1 year ago
3 0

To record the retirement of bonds we have to debit the bond payable account with $435,376, debit the interest account with $22,914, and credit the cash account with $458,290.

The retirement of the bond takes place when they are required to be redeemed before they mature. In other words, if the company wants to buy back its bonds before the period of the bond is over. Sometimes the company will also have to pay the interest amount that is due on the bond to the bond-holder.

The bondholders are creditors of the company. These are the people to have loaned money to the company and who the company has to pay back either at maturity or when the company wants. This should be specified to the bondholder before issuing him the bond. The transaction that will be written to record the transaction will be:

Bonds Payable a/c Dr. 435,376

Interest a/c              Dr.   22,914

To cash a/c                                         458,290.

(Being the bonds retired and interest amount paid)

Learn more about the retirement of bonds here:

brainly.com/question/13960495

#SPJ4

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Indicate what components of GDP (if any) each of the following transactions would affect.
kvv77 [185]

Answer:

It will fall under Consumption if it is a commodity or non-capital good purchased.

It will fall under Investment if it is a capital good that was sold or purchased.

It will fall under Government Spending if the Government bought or paid for it.

It will fall under Net Exports if it involves the purchase of goods from another country or the sale of goods to another country.

You buy a new Toshiba computer  - CONSUMPTION AND NET EXPORTS.  

Toshiba is a Japanese Company.

Ford manufactures a Focus and sells it to Avis, the car rental company. INVESTMENT.

It becomes a capital good to Avis.

Dell sells a desktop computer from its inventory to the Johnson family . - CONSUMPTION and INVESTMENT.

The Desktop is considered a capital good as it can be an investment by the family to produce goods or services.

Aunt Jane buys a new house from a local builder.  INVESTMENT

Housing is a capital good.

The federal government sends your grandmother a Social Security check. - TRANSFER PAYMENT which means it is not to be included in GDP.

Texas hires public middle school teachers .  - GOVERNMENT SPENDING.

Texas will be spending to pay teacher's salaries.

You pay a domestic plumber for fixing a leak in your bathroom.  - CONSUMPTION.

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This is housing but it involves buying goods to change the appearance of the house not buying the house itself.

6 0
3 years ago
Wildhorse Co. incurred research and development costs in 2018 as follows:
vazorg [7]

Answer:

d. $2,950,000

Explanation:

The computation of amount of research and development costs charged is shown below:-

Amount of research and development costs = Direct materials + Personnel cost + Consulting fee paid to outsiders + Indirect costs + Depreciation

= $995,000 + $795,000 + $345,000 + $270,000 + $545,000

= $2,950,000

Therefore for computing the amount of research and development costs we simply applied the above formula.

8 0
3 years ago
All of the following would be considered closing costs except for: a) A title search b) Cost of repainting the kitchen before mo
otez555 [7]
B/ <span>Cost of repainting the kitchen before moving in</span>
5 0
3 years ago
During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash
7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

8 0
3 years ago
On August 2, Jun Co. receives a $7,000, 90-day, 11.5% note from customer Ryan Albany as payment on his $7,000 account. Prepare J
Likurg_2 [28]

Answer:

Oct 31

Dr Cash $7,201

Cr Notes receivable—R. Albany $7,000

Cr Interest revenue $201

Explanation:

Preparation of Jun's journal entry assuming the note is honored by the customer on October 31, of that same year

Oct 31

Dr Cash $7,201

($7,000+$201)

Cr Notes receivable—R. Albany $7,000

Cr Interest revenue $201

(11.5%*7,000*90/360)

3 0
2 years ago
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