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MAXImum [283]
3 years ago
14

On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30,

Alliance received its first semiannual interest. On February 1, Alliance sold $40,000 of the bonds at 103 plus accrued interest. The journal entry Alliance will record on April 1 for the purchase of the bonds will include a:
Business
2 answers:
velikii [3]3 years ago
7 0

Answer:

The journal entry will include

Investments in debt securities - Tetter Company bonds (Dr) $50,000

Explanation:

Since the bonds was purchased as investments for $50,000 they will be an asset for the Alliance company and hence will be debited as per the accounting principle of debiting all incoming assets.Investment is a real account and it will be debited with the face value of $50,000. The bond will be recorded in Alliance's books at face value i.e $50,000.

The journal entry made in the books of Alliance Company at the time of purchase would have been:

Investments in debt securities - Tetter Company bonds (Dr) $50,000

laiz [17]3 years ago
7 0

Answer:

Dr Investment in bonds - Tetter Company 50,000

Dr Interest receivable 2,000

    Cr Cash 52,000

Explanation:

At April 1, Alliance Company purchased $50,000 worth of bonds at face value (100) plus $2,000 accrued interest.

The company paid in total $52,000 for the transaction, and it should have recorded $50,000 as investment in bonds + $2,000 as interest receivable.

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At an activity level of 9,200 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $825,
dybincka [34]

Answer:

variable per unit        $  89.72

fixed cost per unit     $  26.5

total unit cost            $  116.22

Explanation:

Variable cost per machine-hour

825,420 / 9,200 = 89.72

This will keep constant at unit level thus, at 9,400 the variable cost will still be 89.72

Now fixed cost: 249,100 / 9,400 output = 26.5

This is the fixed cost per unit considering a 9,400 untis output

Now, we add them to get the total unit cost:

89.72 + 26.5 = 116.22

6 0
3 years ago
Why is it important for boolean expressions to be minimized in the design of digital circuits?
VladimirAG [237]

1.to make circuit to be smaller hence less number of logic gate.

2.reduces propagation.


4 0
3 years ago
Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
lisov135 [29]

Answer:

In six months, Linda will pay : $480

Final payments :$819

Explanation:

The monthly payments are $80 for six months.

For six months, Linda will have paid $80 times six months

=$80 x 6

=$480

The amount for her final payments will be the total of the two items  minus the installment payments

=$1,299 - $480

=$819

7 0
3 years ago
The Whistling Straits Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell ne
Alisiya [41]

Answer:

1,390,718 shares

Explanation:

Amount to be raise = $72 million

Underwriters charges = 5%

Filling Fee = $700,000

After deducting the underwriters charges the amount remains 95% of the total value. The company needs to raise exact $72 million after all charges deducted so, will take this amount as 95% of the total and gross up this value to 100%.

Total Amount to be raised = Amount including the underwrites charge + Filling charge = ( $72,000,000 / 100% - 5% ) + $700,000 = $76,489,474

Share price = $55

Numbers of share = $76,489,474 / $55 = 1,390,718 shares

8 0
3 years ago
Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $17
katen-ka-za [31]

Answer:

a. Bad Debt Expense 5100 Allowance for Doubtful Accounts 5100

Explanation:

The adjusting entry is shown below:

Bad debt expense $5,100

       To Allowance for doubtful debts $5,100

(Being the bad debt expense is recorded)

The computation is shown below:

= Account receivable × estimated percentage - credit balance of allowance for doubtful debts

= $170,000 × 5% - $3,400

= $8,500 - $3,400

= $5,100

In order to recording this transaction, we debited the bad debt expense as it increases the expenses account whereas at the same time it reduces the account receivable therefore the allowance for doubtful debts is credited

7 0
3 years ago
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