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Llana [10]
3 years ago
11

Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond

s have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry.a. bonds payable 1,000,000b. loss on bond retirement 20,000c. discount on bond 10,000d. cash 1,010,000
Business
1 answer:
almond37 [142]3 years ago
8 0

Answer:

bonds payable       1,000,000 debit

loss on redemption    20,000 debit

        discount on bonds               10,000 credit

        cash                                  1,010,000 credit

--to record tyhe call of the bonds on September 30th--

Explanation:

par value of the bonds:    1,000,000

call premium:                   <u>       10,000</u>

total cash disbusements:  1,010,000

carrying value                      990,000

loss on redemption               20,000

<u>Notice: </u>It is a loss as we are paying more than the aliability is worth

discount/premium:

face value     1,000,000

carrying value 990,000

discount             10,000

We write off the bonds account: bond payable and bon discount

we debit the loss and credit hthe cash disbursments

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Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also availa
lord [1]

Answer:

The correct balance for ending inventory is $390,000.

Explanation:

The first point discussing about the consigned goods requires no adjustment as the goods sent on consignment are reported as part of the consignor's inventory until they are sold and these goods are owned by the consignor In our case Bedrock Company is the consignor thus the amount $72000 of consigned goods which is included in Bedrock's inventory of 412000 is correct.

However, the amount of office supplies worth $22000 will be deducted from the ending inventory balance as this is not an inventory that Bedrock is keeping with the intention to resale. The office supplies are for business's own use thus this will be deducted from inventory amount.

The balance of ending inventory will be,

  • 412000 - 22000 = $390,000
8 0
3 years ago
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Why might a rise in the price of electric razors result in an increase in demand for nonelectric razors?
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<span>A rise in the price of electric razors result in an increase in demand for nonelectric razors because consumers would rather choose to buy a product with lower cost having the same effect as compared to the product with the higher price. Buying the nonelectric razor would save them money while still having the same output.</span>
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What is the advantage of having only one inbox? a. You can take it with you wherever you go b. You never have to wonder if you a
horsena [70]

You never have to wonder if you are forgetting something

4 0
3 years ago
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:Cash a
KiRa [710]

Answer:

1. $90,000

2. $5,000

3. $20,000

Explanation:

1. Calculation to Determine the Total current assets

First step is to calculate the Total current liabilities using this formula

Total current liabilities=Accounts payable + Wages payable + Accrued Interest

Let plug in the formula

Total current liabilities=$44,000 + $15,000 + $1,000

Total current liabilities= $60,000

Now let calculate the Total current assets using ratio 1.5

Total current assets =1.5 × $60,000 x 1.5

Total current assets=$90,000

Therefore the Total current assets will be 90,000

2. Calculation to Determine the Short term investments using this formula

Short term investments=Total current assets - Cash - Accounts receivable - Inventories

Let plug in the formula

Short term investments=$90,000 - $5,000 - $20,000 - $60,000

Short term investments= $5,000

Therefore the Short term investments will be $5,000

3. Calculation to Determine the Retained earnings

First step is to calculate the Total Assets

Cash and cash equivalents $5,000

Add Accounts receivable (net) $20,000

Add Inventories $60,000

Add Short term investments $5,000

Add Property, plant, and equipment (net) 120,000

TOTAL ASSETS $210,000

Now let calculate the Retained Earnings

Total Assets $210,000

Less Accounts payable ($44,000)

Less Salaries payable ($15,000)

LessAccrued interest ($1,000)

Less Notes payable ($30,000)

Less Paid-in capital ($100,000)

RETAINED EARNINGS $20,000

Therefore the Retained Earnings will be $20,000

4 0
2 years ago
The Jones are a married couple and have always filed joint tax returns. On May 18, 2017, the couple was assessed with tax defici
Katena32 [7]

Answer:

c. May be able to avoid liability to the extent she had no reason to know of the deficiency (and did not have actual knowledge) when filing the return. The burden of proof will be on her.

Explanation:

The doctrine of <em>innocent spouse relief</em> might apply here. Mrs. Jones will have to prove that:

  1. the income that was omitted was earned by her husband, not her.
  2. she must prove that when she signed the tax filings, she was not aware of the omission.
  3. after examining all the facts surrounding the omission, the IRS must decide that blaming her would not be fair.

8 0
3 years ago
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