D asking your instructor to assign you a topic
Answer and Explanation:
a) Discount:
Carrying Value:$106,554
Face Value:($118,000)
Discount:($11,446)
Calculate Gain/Loss:
Carrying Value:$106,554
Redemption Price:($120,360)
[118,000*102]
Loss:(13,806)
April 30 2022
Dr Bonds Payable $118,000
Dr Loss on Redemption $13,806
Cr Discount on Bonds Payable $11,446
Cr Cash $120,360
(Record retirement of bond at loss.)
(b)Calculate Premium:
Carrying Value:$271,021
Face Value:($250,400)
Premium:$20,621
Calculate Gain/Loss:
Carrying Value:$271,021
Redemption Price:($240,384)
[$250,400*96]
Gain$30,637
June 30, 2022
Dr Bonds Payable $250,400
Dr Premium on Bonds Payable $20,621
Cr Gain on Redemption $30,637
Cr Cash $240,384
(Record retirement of bond at gain.)
Answer:
21.11176754
Explanation:
storate cost: 0.30
as the storage is continusly we use continuos interest rate:
0.30 / 4 = 0.075 per quarter
this is paid in advance so we calculate the present values of this payment
PV = 0.295552053
Now we solve for the future value of silver using also a continuos rate
(20 + 0.295552053)e^0.04 = 21.11176754
