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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

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I guess the correct answer is absolute threshold

You are studying in your dorm room, but your neighbor is blasting the television in the  adjacent room. When you gently request that your neighbor turn the volume down until you  cannot hear it, you are asking your neighbor to make the volume less than your absolute threshold.

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3 years ago
A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage
Mandarinka [93]

The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

<h3>What is depreciation expense?</h3>
  • Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
  • Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
  • A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
  • The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).

The straight-line technique of calculating depreciation expense is given below:

  • = (Original cost - salvage value) ÷ (useful life)
  • = ($173,000 - $8,600) ÷ (10 years)
  • = ($164,400,000) ÷ (10 years)  
  • = $16,440

In this method, the depreciation is the same for all the remaining useful life.

Now for the 7 months, the depreciation expense would be:

  • = $16,440 × 7 months÷ 12 months
  • = $9,590

Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

Know more about depreciation expenses here:

brainly.com/question/25785586

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The correct question is given below:

A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.

(A) $16440.

(B)$9590.

(C)$8220.

(D)$6850.

7 0
2 years ago
A plant asset cost $160000 and is estimated to have a $16000 salvage value at the end of its 4-year useful life. The annual depr
vladimir1956 [14]

Answer:

$20,000

Explanation:

For computing the depreciation expense, first we have to determine the first and second year depreciation which are shown below:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $160,000, so the depreciation is $80,000 after applying the 50% depreciation rate

And, in year 2, the $80,000 × 50% = $40,000

The 80,000 is come from = $160,000 - $80,000

And, in year 3, the $40,000 × 50% = $20,000

The 40,000 is come from = $80,000 - $40,000

8 0
3 years ago
To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:
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Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

  • Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
  • Public relations impact : how will the public feel about our decision?
  • Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
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3 years ago
Recording partner's original investment Instructions Kimberly Payne and Arionna Maples decide to form a partnership by combining
levacccp [35]

Answer and Explanation:

The Journal entry is shown below:-

Cash A/c Dr, $20,000  

Accounts Receivables A/c Dr, $140,000

($145,000 - $5,000)

Inventory A/c Dr, $101,700  

Equipment A/c Dr, $81,200.

     To Allowance for doubtful Accounts $4,400

     To Payne's Capital A/c $338,500

(Being assets contributed by partner in business is recorded)

For recording the assets contributed by partner in business we simply debited the cash account, accounts Receivables, Inventory and Equipment as increase the assets while we credited the Allowance for doubtful Accounts as it decreasing the assets and Payne's Capital as increasing the stockholder equity.

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3 years ago
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