1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NISA [10]
3 years ago
14

Exercise 14-13 Coronado, Inc. had outstanding $5,460,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years.

On July 1, it issued $9,750,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $109,200) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer: Please see expalantion coumn for answer

Explanation:

1) To record issuance of bonds

Date            Account Title            Debit                        Credit

July 1        Cash                         $9,457,500

Discount on bond payable          $292,500

Bond payable                                                               $9,750,000

Calculation:

Cash  =$9,750,000 x 97% = $9,457, 500

Discount = $9, 750,000 - $9,457,500= $292,500

2)To record retirement of 11% bonds

Date            Account Title                        Debit                        Credit

August 1st     Bond payable             $5,460,000

Loss on Redemption of bonds        $218,400

Cash                                                                                            $5,569,200

Discount on Bonds payable                                                           $109,200

Calculation:

Cash =$5,460,000  x 102%  = $5,569,200

Loss on Redemption of bonds = Cash + Discount on bonds payable - Bonds payable =  $5,569,200 + $109,200) - $5,460,000=  $218,400

You might be interested in
How much of the factory labor cost for the year consisted of indirect labor?
romanna [79]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Your question should be complete with details. I managed to check from other sources the details and the complete question:

below is the solution:

<span>$175,000 - $110,000 DL = $65,000</span>
8 0
3 years ago
You are giving your pitch and state that you'll get 30% of this new 1.3 billion market in 2 years. A member of the audience laug
34kurt

Answer:

390,000,000

Explanation:

JUST TOOK TEST

7 0
3 years ago
Read 2 more answers
A tying arrangement is​ _______.
Phoenix [80]
<span>A tying arrangement is​ illegal under the Clayton Act if it lessens competition or creates monopoly.  The Clayton Act focuses on topics regarding price discrimination, price fixing and unfair business practices. Since a tying arrangement means you are purchasing one product with agreement to purchasing another or you can not purchase the initial product, you are in a tying arrangement.</span>
4 0
3 years ago
Flora, who owns and operates garden fresh organic farms, agrees to sell harvesters grocery a minimum quantity of fresh fruits an
Rina8888 [55]
<span>Breached. Explanation: A contract is a legally binding agreement between two parties. Once an agreement is signed between two parties, both parties are subject to terms and conditions written in the agreement. As in the above example, Flora agrees to sell harvesters grocery a minimum quantity of fresh fruits and vegetables every week for three months, that means Flora is subject to the agreement that she will sell that no matter what the future market price will be, whether it increases or decreases. As Flora decides not to deliver the agreed order, it is a violation of terms and conditions of the agreement/contract. So the contract is breached.</span>
7 0
3 years ago
1. Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively
Olin [163]

Answer:

Type A is 7%, type b is 11%

Explanation:

We have these two firm's as type a and type b

For type A

Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%

For type B

= Risk free rate of 5% + risk free rate of 6% = 11%

I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.

8 0
2 years ago
Other questions:
  • Which type of franchising involves a franchisor licensing a franchisee to sell specific products under the​ franchisor's brand n
    13·1 answer
  • How does the executive branch interact with the other two branches?<br>​
    10·1 answer
  • Outward-oriented policiesa. allow countries to take advantage of gains from trade.b. have generally led to high growth for the c
    11·1 answer
  • Which goods would be included in the calculation of GDP
    13·1 answer
  • Glenn is the R&amp;D manager with Quick Print Inc. The company is having a problem with one of its most popular copiers jamming.
    7·1 answer
  • Jesse launched a cheaper variant of her high-performing dishwashing liquid, anticipating similar success. Which strategy has Jes
    12·1 answer
  • Allocative efficiency is concerned with:
    14·1 answer
  • Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers
    6·1 answer
  • Saul Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated l
    6·1 answer
  • Asking the prospect to make a decision on some aspect of the purchase is referred to as?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!