The following purchase transactions occurred during March for Rehoboth, Inc.:

Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond

almond37 [142]

Answer:

bonds payable 1,000,000 debit

loss on redemption 20,000 debit

discount on bonds 10,000 credit

cash 1,010,000 credit

--to record tyhe call of the bonds on September 30th--

Explanation:

par value of the bonds: 1,000,000

call premium: <u> 10,000</u>

total cash disbusements: 1,010,000

carrying value 990,000

loss on redemption 20,000

<u>Notice: </u>It is a loss as we are paying more than the aliability is worth

discount/premium:

face value 1,000,000

carrying value 990,000

discount 10,000

We write off the bonds account: bond payable and bon discount

we debit the loss and credit hthe cash disbursments

8 0

3 years ago

Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion co

klasskru [66]

Answer: 62.5%

Explanation:

Equivalent units = Units completed and transferred out + percentage completed of ending inventory

14,800 = (1,100 + 14,000 - 800) + Percentage

14,800 = 14,300 + Percentage amount completed

Percentage amount completed = 14,800 - 14,300

Percentage amount completed = 500 units

Percentage = Ending equivalent units / ending inventory

= (500/800) * 100

= 62.5%

8 0

3 years ago

Nuxall Confections produces a variety of different candies. Nuxall Confections wants its candies to be available anywhere a cons

sweet [91]

Answer:

Intensive distribution

Explanation:

Intensive distribution -

It is one of the strategy of marketing where the company sells the goods or commodity via as many possible outcomes as possible , so that people can get the product everywhere , is known as the strategy of intensive distribution .

Hence , from the question , the variety of candies produced by the Nuxall Confections are made to be available everywhere possible , to increase the sale .

8 0

3 years ago

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The fir

I am Lyosha [343]

Answer:

1.5

Explanation:

Current ratio = current asset/current liabilities

This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

current assets = $120,000

current liabilities = $80,000

The firm's current ratio = $120,000/$80,000

= 1.5

5 0

3 years ago

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,

olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) $\times$ Actual Quantity

Standard Price = $4 per pound

Actual Price = $\frac{Actual\ Cost}{Actual\ Units}$ = $\frac{5,700}{1,500} = 3.8$

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) $\times$ 1,500

= $300 Favorable

7 0

3 years ago