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
Readme [11.4K]
3 years ago
14

Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,

200 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 102 (after making the interest payment on that date). What is the gain or loss that Washington Inc. would report for the retirement of this bond?
A. $20,000 gain
B. $14,100 loss
C. $20,000 loss
D. $14,100 gain
E. None of the above
Business
1 answer:
Mashcka [7]3 years ago
7 0

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

You might be interested in
In 2014, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2015 for $700,000. Before the Decemb
RSB [31]

Answer:

a. as a valuation account to Inventory on the balance sheet

Explanation:

The inventory write-down could be done through the balance sheet or the income statement, it depends of the total amount of the adjustment.

If it's a small adjustment, the company make a credit adjustment to the inventory accounts and a  debit to the cost of goods sale in the income statement.

But if the adjustment is larger it's necessary to reduce the value of the inventories through the balance sheet with a debit in an account such as “write-down damaged goods.”

4 0
3 years ago
What best describes the difference between careers and industries
Mrac [35]

A job is something you do to in the short term to earn cash. A piece of work or task that you are paid for. A career is a long-term pursuit of a lifelong ambition. An occupation undertaken for a significant period of a person's life and with opportunities for progress.

I hope this helps you.

7 0
3 years ago
When a factory is operating in the short run? a. average fixed cost rises as output increases. b. it cannot alter variable costs
Vadim26 [7]

No Variable costs occurs in the short run.

The average fixed cost of the production remains same till the output is produced and as the output increases or becomes to rise slowly.

It cannot alter the variable costs but can manage the total cost and variable cost by managing the marginal cost rest remaining the same.

The total expenses consist of the variable and marginal cost and fixed costs which are both short term and long term investments.

It cannot alter any other cost except these cost because they are attached with cost of production.

To learn more about operating cost here,

brainly.com/question/23978941

#SPJ4

8 0
1 year ago
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. T
Juli2301 [7.4K]

Answer:

Explanation:

                                                     2021            2022          2023

Bills during the year               2,180,000   2,644,000  5,176,000

Cost incurred in the year       2,016,000   2,808,000  2,613,600

Cumulative cost to date         2,016,000   4,824,000   7,437,000

Estimated cost to complete   5,184,000    2,376,000         0

Estimated total cost                7,200,000    7,200,000     7,437,000

percentage completion

2,016,000/7,200,000*100 =28%

4,824,000/7,200,000*100 = 67%

7,437,000/7,437,000 *100=100%

Percentage Completion                 28                 67              100

Contract price                           10,000,000

Less cumulative cost                 (7,437,000)

Gross profit                                 2,563,000

Contract value 2021  10,000,000* 28 %  =2,800,000

                          2022 10,000,000* 67%    = 6,700,000

                          2023  10,000,000*1005  = 10,000,000

Contract value                           2,800,000     6,700,000    10,000,000

less revenue recognized                                   2,800,000     6,700,000

                                                    2,800,000       3,900,00       3,300,000

less cost incurred in the year  2,016,000        2,808,000     2,613,000

Profit recognized                        784,000          1,092,000      687,000

8 0
2 years ago
What is the effect of a buyer’s failure to comply with the statute of limitations recognized by the Uniform Commercial Code for
lubasha [3.4K]

Answer:

The buyer has agreed to waive his warranty rights by agreeing the clause of waiving the warranty rights under the contract.  

Explanation:

If the buyer and the seller agrees on the term that the risks and the rewards coming onwards would belong solely to the buyer and there will be no warranty claims acceptable related to this product. This is the limitation of the application of the Unifrom Commercial Code.

8 0
3 years ago
Other questions:
  • Patton has acquired several other companies. Assume that Patton purchased Kate for $ 9 comma 000 comma 000 cash. The book value
    14·1 answer
  • "A market maker that compensates a retail member firm for sending its customer orders to that market maker is:"
    15·1 answer
  • Use the following information, taken from each of the company's 2016 financial statements to complete the requirements. Cash fro
    12·1 answer
  • Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as Brown Betty Dessert B
    11·1 answer
  • Chloe is the billing and accounting department manager in a large organization. The CEO is shifting the tall hierarchal structur
    8·1 answer
  • During the month of February, Smiling Moon Inc. had cash receipts of $10,000 and cash disbursements of $7,700. The February 28 c
    7·1 answer
  • is expected to pay a dividend of $2.60 and $2.24 over the next two years, respectively. After that, the company is expected to i
    7·2 answers
  • Foote Company was granted a purchase discount of $200 on merchandise the company had purchased a few days ago. Foote uses the pe
    15·1 answer
  • C = prn is formula for ca
    14·1 answer
  • Business processes supported by enterprise systems related to travel expense reporting are associated with​ ________ processes.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!