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mrs_skeptik [129]
3 years ago
15

A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. the entry to record the redemption would in

clude a
a. loss on bond redemption of $2,000
b. gain on bond redemption of $2,000
c. gain on bond redemption of $4,000
d. loss on bond redemption of $4,000
Business
1 answer:
Kobotan [32]3 years ago
6 0

Answer:

correct option is a. loss on bond redemption of $2,000

Explanation:

given data

bond = $300,000

redeemed at =  98

carrying value of bond = $292,000

to find out

entry to record the redemption would include

solution

we know here that Redemption value is

Redemption value = bond × redeemed

Redemption value = $300,000 ×98%

Redemption value =$294,000     ................1

and here Carrying value is $292,000

so we paid excess amount that is

paid excess amount = $294,000 - $292,000

paid excess amount = $2000

so here correct option is a. loss on bond redemption of $2,000

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Match the appropriate costing method to the description
sp2606 [1]

Answer:

  • a. Absorption costing only  --  8. Includes gross profit on the income statement
  • 2. Required by generally accepted accounting principles.
  • b. Variable costing only  --  6. Generally provides the most useful report for setting long-term prices.
  • 3. Treats fixed manufacturing cost as a period cost.
  • 5. Generally provides the most useful report for controlling costs.
  • 4. Operating income is impacted by changes in inventory level.
  • c. Both absorption and variable costing  --  7.May be used in a manufacturing company
  • 1.Treats fixed selling cost as a period cost.

Explanation:

  • The absorption costing includes that all the manufacturing costs which are given to the units produced and the cost of a finished product will be the cost of the direct material and labor.
  • Variable cost is a method that assigned the variables costs to the inventories and means that overall cost changes to expenses in a time of occurrence.
  • Both of these costs are related to the method of the production and costs that are incurred in the production and in which method the company uses to make.
8 0
3 years ago
hipotle offered free burritos to celebrate teachers. What type of price discrimination does this demonstrate? rev: 05_15_2018 Mu
Juliette [100K]

Answer:

Third-degree price discrimination. 

Explanation:

Third-degree price discrimination is when a seller charges different prices to different groups of people. This price discrimination can be based on age , occupation, sex eye

First degree price discrimination is when a sellers charges different prices to consumers based on their willingness to pay. This type of discrimination aims to eliminate consumer surplus.

Second degree price discrimination is when a sellers gives discounts for different quantities purchased. E.g. bulk purchases.

I hope my answer helps you

4 0
3 years ago
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells
Anni [7]

Answer: $75000

Explanation:

In order to solve the question, firstly we need to calculate the contribution margin ratio which will be:

= ($10 - $6) / $10

= 40%

Then, the break even sales will then be:

= Fixed cost / Contribution margin ratio

= $30000 / 40%

= $75000

Therefore, the break-even point in sales dollars is $75000

5 0
3 years ago
alton Corporation is currently selling 104 units of its product. The company is deciding the price that it should charge for a b
Gwar [14]

Answer:

the selling price per unit is $300

Explanation:

The computation of the selling price per unit is shown below;

= Variable cost + profit needed per unit

= $200 + ($4,000 ÷ $40 units)

= $200 + $100

= $300

hence, the selling price per unit is $300

6 0
3 years ago
XYZ corporation is an Indiana-based corporation and has 5 manufacturing plants. One of the corporation’s objectives is to have 1
iren2701 [21]

Answer:

No

Explanation:

Because the reason is that there are so many aspects that we should consider during risk management. So the information required comes from different sources, it can be competitor's financial statements to consider the difference on spending and efficiencies. Furthermore there are also some health and safety related issues, repair and maintenance costs analysis and other issues that the company risk manager would consider by relying on the information of manufacturing costs. So the recommendations for risk management is always reliance on wider sources of information.

8 0
3 years ago
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