Which of the following items is required onboard a Personal Watercraft (PWC)?

On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,200,000 bonds for $1,500,000. PWI retired all of these bonds on January

OLEGan [10]

Answer:

$55,200 gain

Explanation:

Calculation to determine How much gain or loss should be recognized on this bond retirement

First step is to determine the Book value on date of sale

Book value on date of sale=$1,200,000+$127,200

Book value on date of sale=$1,327,200

Second step is to calculate the Retired value of bonds

Retired value of bonds =$1,200,000*106

Retired value of bonds=$1,272,000

Now let determine the Gain on bonds retirement

Using this formula

Gain on bond retirement=Book value on date of sale-Retired value of bonds

Let plug in the formula

Gain on bond retirement=$1,327,200-$1,272,000

Gain on bond retirement=$55,200 gain

Therefore the amount of gain that should be recognized on this bond retirement will be $55,200 gain

5 0

2 years ago

Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to

N76 [4]

Answer: See explanation

Explanation:

a. Record the warranty accrual at the time of sale in 2020.

Debit Warranty expense = $250,000 × 1% = $2,500

Credit Warranty Liability $2,500

(To record the warranty accrual)

b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.

Debit Warranty Liability $800

Credit Cash and Payables $800

8 0

3 years ago

You have been asked to help King Company make the necessary journal entry to record the purchase of office furniture for a $170

Marina CMI [18]

Answer:

Debit Office Furniture account $710

Credit Cash account $170

Credit Accounts payable $710

Being entries to recognize office furniture partly paid for.

Explanation:

When items are purchased using cash, the corresponding credits in such transactions are recorded in the cash account. Where the item is purchased on account (or credit), the credit is posted to accounts payable.

Total worth of the office furniture = $170 + $540 = $710

The total debit for this will be recorded in the office furniture account.

Hence to recognize the transaction,

Debit Office Furniture account $710

Credit Cash account $170

Credit Accounts payable $710

Being entries to recognize office furniture partly paid for.

3 0

3 years ago

The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some coun

Eva8 [605]

Answer:

4000

Explanation:

Calculation to determine how many units of foreign currency does the same basket of goods cost in that country

Based on the information given we were told that the PRICE OF A BASKET OF GOODS is the amount of $2000 in which the dollar buys TWO UNITS of some country’s currency, now let determine HOW MANY UNITS of foreign currency does the same basket of goods cost in that country

Using this formula

Units of foreign currency=Basket of goods price*Some country’s currency units

Let plug in the formula

Units of foreign currency=$2,000* 2 units

Units of foreign currency=4,000 units

Therefore the number of units of foreign currency that the same basket of goods cost in that country is 4,000

The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does

7 0

3 years ago

Based on the given information, what will be the working capital of the company?

Romashka-Z-Leto [24]

Answer:

$37,000

Explanation:

Working capital indicates the difference between a company's current assets and its current liabilities.

Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.

in this case,

Current assets include

Inventory $50,000

Cash at Bank $ 5,000

prepaid rent $5,000

Total current assets $60,000

current liabilities

Notes Payable $20,000

tax payable $3,000

Total current liabilities  $23,000

Working capital

= $60,000 - $23,000

= $37,000

7 0

2 years ago