Answer:
Date, bonds sold at a premium
Dr Cash 5,500,000
Cr Bonds payable 5,000,000
Cr Premium on bonds payable 500,000
Explanation:
The total face value of the bonds is $1,000 x 5,000 bonds = $5,000,000
since the bonds were sold at 110, their price was $5,000,000 x 110% = $5,500,000
the difference between the face value and the actual market price = $5,500,000 - $5,000,000 = $500,000 must be recorded as premium on bonds payable (increases the bonds' carrying value)
Answer:
Journal entry to record the Sale of Patent
Debit : Cash $750,000
Credit : Patent at Book Value $120,000
Credit : Profit and Loss $630,000
Journal entry to record the Sale of Equipment
Debit : Cash $325,000
Debit : Profit and loss $75,000
Debit : Accumulated depreciation $150,000
Credit : Equipment at Cost $550,000
Explanation:
During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.
A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.
Answer
The answer and procedures of the exercise are attached in the following 3 images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3 sheets with the formulas indications.
The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.
The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.
As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.
Sales tax = 6% of 2600
Sales tax = 6/100 × 2600
Sales tax = 0.06 × 2600
Sales tax = $156
Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.
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Answer:
$240,500
Explanation:
We know that
Current ratio = Total Current assets ÷ total current liabilities
= $2,141,000 ÷ $842,000
= 2.5 times
For current ratio falling below 2.2, we have to assume the borrowed amount be X
So, the equation would be
$2,141,000+ X ÷ $842,000 + X = 2.2
$2,141,000+ X = 2.2 × ($842,000 + X)
$2,141,000+ X = $1,852,400 + 2.2X
$2,141,000 - $1,852,400 = 2.2X - X
$288,600 = 1.2X
So X would be $240,500
