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ra1l [238]
9 months ago
14

Several years ago, Tamika Company issued bonds with a face value of $603,000 at par. As a result of declining interest rates, th

e company has decided to call the bond at a call premium of 7 percent over par.
Required:
Record the retirement of the bonds.
Business
1 answer:
juin [17]9 months ago
7 0

Bond retirement is also known as bond reimbursement. The equalization will be repaid with interest on the reimbursement date.

<h3>When recording bond retirements, use a discount account:</h3>

Bonds are assumed to be worth $603,000, and their current book value is estimated to be $645,210. T will be paid back with a 7% premium. $42,210 is the total ($603,000 x 7%). The bond guarantor must give the investor $65,210 ($603,000 + $42,210) on the date of reimbursement. The $42,210 excess payment should be viewed as bad luck for the bond call.

<h3>Here are the journal entries to reflect bond retirement:</h3>

Bonds payable are debited by $603,000

Debit: $42,210 is the loss on bond call.

Citation: Cash $642,210 = [$603,000 x (1 + 0.07)]

To know more about bond reimbursement  visit: brainly.com/question/28198103

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Which of the following best explains why commodity futures contracts are transferable
ioda
The reason why commodity futures contracts are transferable is: <span>They can be bought and sold but the obligation in the contract remains valid.

Commodity futures contract is an agreement to buy or sell a specific asset at a specific price somewhere in the future.
This contract does not specify the name of the person who should buys the asset, so it could be transferable as long as the exchange is still fuiflled.

</span>
4 0
3 years ago
Business managers are often overly confident of their own hiring ability because they are more likely to monitor the successes o
dmitriy555 [2]

Answer:

Confirmation bias

Explanation:

The reason is that the business managers who always see the one side of the story are biased because they don't see what the person whom they rejected was doing with its life and capabilities that he developed that might be the best resouce for the company. This consecutive result which forms a perception that the person is right is often called confirmation biasness.

4 0
3 years ago
A flood damages a home that is in a community in early stages of participation in NFIP, but are not yet considered a participati
stepladder [879]

Answer:

$10,000

Explanation:

The National Flood Insurance Program (NFIP) allows property owners to buy insurance that protects them from damage caused by floods. But the NFIP is available only in participating communities.

In this case, the owner will receive up to $10,000 because it is covered under the Emergency Plan.

7 0
2 years ago
because the costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV
mario62 [17]

The makers of UAV drones have good reason to sell their drone models to buyers in the Asia- Pacific at lower average website prices than the average website prices charged to buyers in the Europe-Africa region because they incur higher import duties on shipments of UAV drones to buyers in Europe-Africa than they do on each drone shipped to buyers in the Asia-Pacific region.

The costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV drones from Taiwan to Europe-Africa.

The production/assembly costs per drone that drone-makers incur on all UAV drones shipped to the Asia-Pacific region are many dollars higher than production/assembly costs per drone shipped to buyers in the Europe-Africa region.

The administrative costs per UAV drone sold that companies incur on sales to buyers in the Asia- Pacific region are about $10 higher than those incurred on sales to buyers in the Europe- Africa region.

To learn more about  UAV drone here

brainly.com/question/14179661

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8 0
1 year ago
Explain why an unlimited printing of money would cause economic problems.
Natali [406]

Answer:

Unlimited printing of money will cause the problem of inflation.

Explanation:

Inflation is a general increase in the price of goods and services.

It can be caused by the following:

Demand-pull inflation - This type of inflation is caused by an excess demand for goods and services by consumers without commensurate supply from suppliers.

Cost-push inflation - This type of inflation is caused by an increase in the price of goods and services.

Lastly, out of others, I will like to discuss inflation caused by unlimited printing money.

I sometimes wonder why the country cannot just prompt money so that we can all be smiling and spending cash together. The fact is that this will reduce the purchasing power of money because it is in excess and ultimately leads to inflation.

When there is unlimited printing of money in a country, the cash in the circulation will be in excess, hence more money will be needed to buy few product. That is an indication of inflation.

6 0
3 years ago
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