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sladkih [1.3K]
3 years ago
9

On January​ 1, 2018​, Plummer Company issued $250,000 of 4​%, five​-year bonds payable at 102. Plummer Company has extra cash an

d wishes to retire the bonds payable on January​ 1, 2019​, immediately after making the second semiannual interest payment. To retire the​ bonds, Plummer pays the market price of 90.1.What is Plummer Company's carrying amount of the bonds payable on the retirement​ date?2.How much cash must Plummer Company pay to retire the bonds​payable?3.Compute Plummer Company's gain or loss on the retirement of the bonds payable.
Business
1 answer:
Anna [14]3 years ago
7 0

Answer:

1. Carrying amount = $250,000

2. Cash paid to retire bond = $225,000

3. Gain on the retirement = $25,000

Explanation:

1. What is Plummer Company's carrying amount of the bonds payable on the retirement​ date?

Carrying amount of a bond payable on the retirement​ date is its par value amount.

Therefore, Plummer Company's carrying amount of the bonds payable on the retirement​ date is $100 par value for 2,500 units with a total carrying amount of $250,000.

2. How much cash must Plummer Company pay to retire the bonds​payable?

Units of bond = $250,000/$100 = 2,500 units.

Since Plummer pays the market price of $90 to retire the​ bonds, cash amount Plummer Company must pay to retire the bonds​ payable can be calculated as follows:

Cash paid to retire bonds = 25,000 * $90 = $225,000

3.Compute Plummer Company's gain or loss on the retirement of the bonds payable.

Gain (loss) = Carrying amount - Cash paid on retirement = $250,000 - $225,000 = $25,000

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What basically compares what an individual owes compared with how much they earn monthly?
STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

3 0
3 years ago
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, t
valentina_108 [34]

Answer: Please see explanation for answers

Explanation:

Age Group            Amount           Estimated Percent     Estimated  Amount

                              Receivable      Uncollectible                 Uncollectible

Not yet due             $ 32,000              4 %                          $1,280

0-30 days past due 10,200                 6 %                          $612  

31–60 days past due 7,200                 12 %                        $864

More than 60 days past due 2,600      30 %                      $780

Total                                  $ 52,000                                    $3536

Calculation

1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent      Uncollectible    =

4% x 32,000= $1,280

6% x 10,200=$612

12% x 7,200=$864

30% x2600=$780

Total = $3,536

The allowance for uncollectible accounts = $3,536

2) Journal to  Record the December 31, 2021, adjustment for a debit of $400

Estimated Amount Uncollectible =$3,536

Adjusted = $3536 + debit $400=$3,936

Date                   Account                  Debit             Credit

Dec 31, 2021,  Bad debts Expense    $3,936

Allowance for uncollectible accounts                    $3,936

3) Journal to  Record the write-off of $500

Date                   Account                              Debit             Credit

April 3, 2022,  Allowance for uncollectible

                             accounts                             $500

                         Accounts receivable                                     $500

4a)Journal to  reinstate  the account previously wrtten off  On July 17, 2022

Date                   Account                              Debit             Credit

July 17, 2022,   Accounts receivable             $100

Allowance for uncollectible  accounts                             $100

4b)Journal to record collection of cash  

Date                   Account                              Debit             Credit

July 17, 2022,   Cash                                    $100

     Accounts receivable                                                     $100

                                                                                                                   

5 0
3 years ago
The determinants of the supply of a good are any factors other than the product's ______ that cause the supply curve of the good
Vlada [557]

The determinants of the supply of a good are any factors other than the product's price that cause the supply curve of the good to shift.

<h3>What is supply curve?</h3>

The supply curve can be regarded as  graphic representation which is used in showing the relationship that exist between between the cost of a good or service and  quantity supplied.

However ,  the price is seen at the left vertical axis, of the curve and product's price that cause the supply curve of the good to shift.

Learn more about  supply at; brainly.com/question/25308213

#SPJ1

5 0
1 year ago
Rachel McGovern bought a 10-year bond for $921.77 seven years ago. The bond pays a coupon of 15 percent semiannually. Today, the
trasher [3.6K]

Answer:

17%

Explanation:

Purchase price of bond = $921.77

Years investment held = n = 7

Coupon rate = C = 15%

Frequency of payment = m = 2

Annual coupon = $1,000 × (0.15/2) = $75.00

Realized Yield = i

Selling price of bond = PB = $961.22

The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.

5 0
3 years ago
DJFats Company determined that the 2019 ending inventory had been overstated by $11,200 AND that the 2019 beginning inventory wa
horrorfan [7]

Answer:

a. $103,400

Explanation:

As we know that

Cost of goods sold = Beginning inventory + purchases - ending inventory

And,  

Gross profit = Sales revenue - cost of goods sold

Since in the question it is given that

The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively

Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income

And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.

So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse

So, the correct amount is

= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory

= $108,000 + $6,600 - $11,200

= $103,400

6 0
3 years ago
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