Answer:
$5,000.
Explanation:
To calculate the gain or loss on sale of Property, Plant, and Equipment, the worth of the asset at selling time that is its Carrying Value (Cost - Accumulated Depreciation) is compared with the Sale Proceeds.
⇒ Gain / (Loss) = 55,000 - (310,000 - 260,000) = $5,000.
Strike Company has sold an equipment worth of $50,000 for $55,000, hence making a gain of $5,000 on this transaction. This gain is recorded in the Statement of Profit or Loss.
Answer:
In this instance, Alan was using the <u>"arbitrary approach".</u>
Explanation:
Arbitrary approach is a technique or method which is used to determining the budget which is used for advertising. This is the approach which is used most widely and in this approach the CEO tells or specifies that how much budget we can use for advertising for the coming year or specific period of time.
Public debt securities have been registered by the business is the circumstances would a privately held company be obligated to make sec filings.
<h3>What is public debt securities?</h3>
The owners of financial instruments referred to as debt securities are entitled to recurrent interest payments. In contrast to equity securities, debt securities demand repayment of the principal borrowed.
The interest rate on a debt security will be influenced by the borrower's perceived creditworthiness. Although there are many different types of debt securities, corporate and governmental bonds are among the most common.
Thus, Public debt securities have been registered by the business.
For more details about Public debt securities, click here:
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Answer:
Amount raised = $236,027.47
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
</em>
Value of Bond = PV of interest + PV of RV
The value of bond for Whipple Corp can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 5.6% × 2000 × 1/2
= 56
Semi-annual yield = 6.34%/2 = 3.17
% per six months
Total period to maturity (in months)
= (2 × 25) = 50 periods
PV of interest =
56 × (1- (1+0.0317)^(-50)/0.0317)= 1395.49
Step 2
PV of Redemption Value
= 2000 × (1.0317)^(-50)
= 420.105
Price of bond
= 1395.49
+ 420.10
= $1815.60
The amount raised = price per bonds× Number of unit
= $1815.595× 260,000/2000= $236,027.47
Amount raised = $236,027.47
Answer:
Explanation:
Preparation of all journal entries made in 2017 related to the bond issue.)
Jan.1
Dr Cash $618,000
Cr Bonds Payable $618,000
Cr Premium on Bonds Payable. $8,000D
c.3 Interest Expense $59,100
Dr Premium on Bonds Payable $900
($18,000 *$20)
Cr Interest Payable $60,000
($600,000 × 10% = $60,000)
