1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lord [1]
3 years ago
10

On june 30, 20x1, after paying the semiannual interest due and recording amortization of bond discount, hake redeemed its 15-yea

r, 8% $1,000,000 par bonds at 102. hake has a policy to redeem bonds when it is advantageous to do so. the bonds, which had a carrying amount of $940,000 on january 1, 20x1, had originally been issued to yield 10%. hake used the effective interest method of amortization and paid interest and recorded amortization on june 30. compute the amount of gain or loss on the redemption of the bonds.
Business
1 answer:
Leokris [45]3 years ago
6 0

Amount of interest expense on 30th June 20X1= Carrying Amount of Bond*Effective Interest Rate (For 6 Months)

=$940000*5/100

=$47000

Contractual Interest of the bond=Face Value*Contractual Interest

=1000000*4/100

=$40000

Thus, Carrying Amount of Bond=Carrying Amount|+Interest Expense-Interest Paid

Carrying Amount as on 30th June=940000+47000-40000

Carrying amount as on 30th June=$947000

Amount Paid to Redeem Bonds =$1020000

Gain/(Loss) on Redemtion of Bonds=Face Value-Amount Paid to Redeem Bonds

Loss on Bonds=-$73000

You might be interested in
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Bal
AURORKA [14]

Answer:

The proforma income statement and balance sheet are found in the attached

Above all,additional financing of $1982  is required to finance the growth of 20%

Explanation:

The additional finance is necessary as the assets required for the additional growth of 20% is worth $27900 while debt plus equity(including the added profit of $1318) only gives $25918,there resulting in shortfall in finance of $1982.

Also, a different source of finance other than debt can be used depending the interest applicable since the amount involved is minute.

Download xlsx
6 0
3 years ago
Anyone have tikt ok put u r at in co mments or anw ser and i will follo w u
kondaur [170]

Answer:

sorry I don't have one! T~T

Explanation:

8 0
3 years ago
If the demand for an item increases,what effect will it have an price and quantity? A) price will increase and quantity increas.
vodka [1.7K]

Answer:

A) price will increase and quantity increase.

Explanation:

An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.

As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.

6 0
3 years ago
If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard
telo118 [61]

Answer:TRUE

Explanation: Standard deviation is the rate of spread of numbers or values around the Mean of the numbers or values, it can also be described as the square root of the variance of a set of numbers or values. In financial analysis, the rate of return is the amount net income of a business entity over a given period of time. A risk averse investor is an investor who will try as much as possible to avoid risk even with high profit investment.

So for a risk average person to take on the investment with higher standard deviation it means the rate of return will be Higher.

6 0
3 years ago
If the police want to enter a home to find evidence, what must they request?
777dan777 [17]

Answer: warrant

Explanation:

4 0
2 years ago
Other questions:
  • Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4
    8·1 answer
  • Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total
    8·1 answer
  • Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of g
    11·2 answers
  • US taxpayers who attended college or university in the past year can deduct the interest paid on student loans from their taxabl
    15·1 answer
  • For each of the following transactions for New Idea Corporation, give the accounting equation effects of the adjustments require
    5·1 answer
  • Historical development of logistics
    12·1 answer
  • A typical point-of-sale display features products that are likely to be ___.
    5·1 answer
  • Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville att
    11·1 answer
  • Casey Motors recently reported the following information:
    8·1 answer
  • To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!