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Lyrx [107]
3 years ago
8

Brief Exercise 9-17 Record early retirement of bonds issued at a premium (LO9-7)

Business
1 answer:
butalik [34]3 years ago
4 0

Answer:

Dr Bonds payable                       $50,700

Dr premium on bonds payable     $4,265

Cr Cash                                                                                 $53,000

Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965

Explanation:

The premium yet to be amortized on the bond at retirement is the carrying  value minus face value i.e  $54,965-$50,700=$4265

The premium  on bonds payable would now be debited with $4265

The cash paid on retirement would be credited to cash account

The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.

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Aliun [14]

Answer:

a) $1,400

b) $1,800

c) $820

Explanation:

If the annual income is $60,000, the gross monthly income is I=60,000/12=5,000.

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b) The maximum amount you should spend each month for total credit obligations (including mortage) is:

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c) If we need only 70% of the maximum allowed for the mortage, we have more income available for other debt payments.

The 70% represents:

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We substract this from the total budget for debt payments and we have the budget for all other debts but mortage:

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3 0
3 years ago
country cupboard purchased inventory for $ 4 comma 800 and also paid a $ 360 freight bill. Country Cupboard returned 20​% of the
Ede4ka [16]

Answer:

A. $ 4,123

Explanation:

For accounting purposes we will consider as cost to ivnentory all the necessarycost incurred to get the merchandise ready for use. Therefore the returns and dsicount decrease the inventory as they weren't cost incurred.

The freight will count as necessary and incurred thus, added.

Invoice nominal          4,800

returns

4,800 x 20% =       <u>      (960)</u>

balance                      3,840

discount 2%           <u>        (76.8)   </u>

merchandise cost     3.763,2‬

freights-in          <u>          360     </u>

total cost                   4,123.2

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3 years ago
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Answer:

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Answer:

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