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Marysya12 [62]
3 years ago
10

Sugar City issued $2 million of bonds to fund the construction of a new city office building. The bonds have a stated rate of in

terest of 5% and were sold at 101. Which of the following entries should be made in the Capital Projects Fund to record this event?
A) Debit Cash $2.02 million; Credit Bonds Payable $2 million and Premium on bonds payable $.02 million
B) Debit Cash $2.02 million; Credit Bonds payable $2 million and Other financing sources $.02 million.
C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million.
D) Debit Cash $2.02 million; Credit Other financing sources $2 million and Revenue $.02 million.
Business
1 answer:
love history [14]3 years ago
3 0

Answer:

C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million

Explanation:

<u>A private firm will reocrd as follow:</u>

As the bonds are sold at a higher price than their face value we recognize a premium which will be amortized over the life of the bond.

<u><em>But in this case, we are doing a public accounting thus,</em></u> we must record the cash received and credit other financing sources for the whole amount funded.

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$400,000 equity will be the coverage provided for the account.

<h3>What is a joint account?</h3>

A joint account is just another saving account, but the difference is that it is shared between two people, i.e, two people are the owner of that account this is generally shared between two partners or a spouse.  

The maximum bandwidth for a joint account is $500,000; but, a margin account only covers the equity, thus the debit balance is deducted from the market value. from deducting the market value of $1 million from the debit balance of $600,00  to leave $400,000 equity.

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7 0
2 years ago
Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job
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Answer:

Direct material= $5,600

Explanation:

<u>First, we need to calculate the direct labor added to Work in Process:</u>

Direct labor= allocated overhead / predetermined overhead rate

Direct labor= 6,400 / 0.8

Direct labor= $8,000

<u>Now, by difference, the direct materials:</u>

Direct material= Ending balance - allocated overhead - direct labor

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3 years ago
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Explanation:

Branding is a way of making sure that your product is easily identifiable over other products.

When a company brands it's goods, they are trying to create Brand Awareness and this usually happens when a company plans to stay in a business for a while and indeed with the way the Firm is spending a lot of money on Advertising, one can surmise that they do indeed plan to stay in the business because they have spent a lot.

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