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Sedbober [7]
3 years ago
14

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 11% bonds having a face amount of $9

1.2 million. The bonds had been issued in 2010 and had a remaining discount of $4.2 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102.
Required:
Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018.
Business
1 answer:
kompoz [17]3 years ago
4 0

Answer:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

    To Cash $93,024,000   ($91.2 million × 102%)

    To  Discount $4,200,000

(Being the redemption of the bond is recorded)

Explanation:

The journal entry is shown below:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

    To Cash $93,024,000   ($91.2 million × 102%)

    To  Discount $4,200,000

(Being the redemption of the bond is recorded)

For recording this journal entry we debited the bond payable as it decrease the liability moreover the cash is also decreased so it is credited and the discount is also credited and the remaining balance is debited to the loss

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Stolb23 [73]

The economic development of a country is dependent on all of the following except promoting protectionist barriers. Hence, option D is correct.

What is Economic Development?

  • Economic and social development is the process through which the economic well-being and quality of life of a country, region, local community, or an individual are enhanced in accordance with specific aims and objectives, according to the economics study of the public sector.
  • Although the phrase has been widely used in the 20th and 21st centuries, the idea has been around in the West for much longer.
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5 0
1 year ago
Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as: A.earmarks.B. log
Dmitry [639]

Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as earmarks

Explanation:

A reserve is an arrangement in a discretionary spending bill which directs funds to a particular beneficiary while bypassing the distribution process of merit-based or competitive funds. American and South African public finances feature Earmarks.

The allocation process gave Congress the power to allocate discretionary funds for specific programs. The allocation process was a routine part of the federal government allocation process.

For several years, they have been a central aspect of regulatory and distributive reform, an important political mechanism by which national coalitions have been built up by consensus with the intention of implementing or opposing crucial legislation. The ban' contributes to the legislative gridlock and increases the difficulty of achieving tax and immigration reforms,' as congressional appropriations disadvantaged and were ultimately prohibited.

3 0
2 years ago
The accounts payable account is a/an _______, and it has a normal _______ balance.
Katyanochek1 [597]

In finance and accounting, accounts payable can operate as either a credit or a debit. Because accounts payable is a penalty account, it should have a credit balance.

<h3>Are accounts owed a debit or credit in normal balance?</h3>

Accounts payable (A/P) is a type of penalty account, so it stays on the credit side of the trial balance as the normal balance. It is the amount that we owe to suppliers for the interests or services that we have already acquired but have not paid yet.

Accounts payable (AP) is a short-term debt and a liability on a balance sheet where a corporation owes money to its vendors/suppliers that have provided the business with goods or services on credit.

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3 0
1 year ago
Frazier Company sells women's ski jackets. The average sales price is $272 and the variable cost per jacket is $122. Fixed Costs
padilas [110]

Answer:

b. $2,205,000

Explanation:

We know,

Contribution Margin = Sales (Revenues) - Variable Cost (expense)

Contribution margin is the difference between sales and variable cost.

Given,

Sales per unit = $272

Variable cost per unit = $122

Sales volume (Number of Ski Jackets) = 14,700 jackets

Now, we use contribution margin format income statement to determine the contribution margin for 14,700 jackets.

Sales ($272 × 14,700 jackets)                                             $3,998,400

<u>Less: Variable expense ($122 × 14,700 jackets)                $(1,793,400)</u>

Contribution Margin [($272 - 122) × 14,700 jackets]  = $2,205,000

Therefore, option B is the answer.

4 0
3 years ago
In which business organizations will all the owners be allowed to manage or control the entity while enjoying limited liability?
barxatty [35]

Answer:

The Corporation and Partnership forms of business.

Explanation:

In Limited Liability the profits and losses are transferred to owners without Taxation and there is a shield of personal liability is also available.

5 0
3 years ago
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