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
Fittoniya [83]
3 years ago
5

On July 1, Aloha Co. exercises a call option that requires Aloha to pay $408,000 for its outstanding bonds that have a carrying

value of $411,200 and par value of $400,000. The company exercises the call option after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds.
Business
1 answer:
Alex73 [517]3 years ago
3 0

Answer:

July 1       Bonds Payable                        400000 Dr

               Premium on Bonds Payable   11200 Dr

                    Cash                                        408000 Cr

                    Gain on Redemption              3200 Cr

           

Explanation:

The data provided for the carrying value and other amounts is of 1st July thus the statement regarding the interest payment is irrelevant.

The bonds are redeemed at 408000 which is less than their carrying value which is 411200 ( face value of 400000 and premium of 11200 ). Thus, we can conclude that there is a gain on early redemption.

The gain on redemption = 411200 - 408000 = 3200

The entry for this event will require to close the bond payable and related premium account by debiting them and crediting the cash and gain account.

You might be interested in
The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. t
guapka [62]
To find the value of the inventory to the nearest cent: 
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%  

We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts 
X = $18,750/29% 
X = $18,750/0.29
X = $64,655.17

The value of the inventory is $64,655.17

To check your work you can take $64,655.17 and multiply it by 29%
= $18,750
6 0
3 years ago
If there is a floor on wages created by a minimum wage, union contracts, or other factors, then a decline in the marginal produc
olga55 [171]

Answer:

Decrease; Increase

Explanation:

When there is a decline in the marginal productivity of low skilled workers, it results in a decline or decrease in the demand for low skilled workers. Marginal productivity is the extra output gained from adding one unit of labour. Thus, if low skilled workers are added to increase marginal productivity, but then reaches the point of decline, the demand or the need for those low skilled workers reduces. The reduction or decrease in the demand for these low skilled workers then lead to an increase in number of unemployed workers as those unskilled workers becomes jobless.

5 0
3 years ago
The following information is available for a company's utility cost for operating its machines over the last four months. Month
tia_tia [17]

Answer:

                          Machine hours (X)        Utility cost

       High                2,680                          8,100

        Low               <u> (740)</u>                           <u> (4,650)</u>

                              <u> 1,940 </u>                          <u> 3,450</u>

Variable cost per machine hour

= $3,450/1,940 hours

= $1.7784 per machine hour

Explanation:

Using high and low method, we will obtain the highest activity (machine hours) and the corresponding cost. We will also obtain the lowest activity and the corresponding cost. Thereafter, we will deduct the lowest points from the highest points. Finally, we will divide the difference in cost by the difference in machine hours in order to determine the estimated variable cost per machine hour.

8 0
3 years ago
Jose wants to upgrade his look before a job interview. A friend tells him about a men's clothing line that allows potential cust
AlladinOne [14]

Answer:

D. Experience

Explanation:

Based on the information provided within the question it can be said that this scenario best describes the 4E framework objective known as experience. This is the objective of helping customers experience the company's product, either directly or indirectly. Which is what the clothing line in this scenario is doing by allowing it's customers to virtually experience the product by seeing how it would look on them through a computer program.

6 0
3 years ago
Read 2 more answers
Suppose the Federal Reserve (the Fed) announces that it is raising its target interest rate by 50 basis points, or 0.50%. It wou
Olenka [21]

Answer: decreasing money supply; less; decreases.

Explanation:

When the Federal Reserve wants to increase its target interest rate by 50 basis points, this can be done if the Fed reduces the money supply that is in circulation.

This will in turn, lead to a new equilibrium rate and there will also be a decrease in money in the financial system as there'll be a reduction in the quantity of money demanded.

5 0
2 years ago
Other questions:
  • Progressive companies who want to attract and keep good employees are now offering their employees ________ benefits, such as on
    8·1 answer
  • Tom works as an agent for a large insurance company. at his work station, he has taped pictures of his wife and granddaughter an
    8·1 answer
  • Moorcroft Company’s budgeted sales and direct materials purchases are as follows:
    5·1 answer
  • As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to
    10·1 answer
  • Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and
    10·1 answer
  • You think hard about how to allocate the next hour between watching football and going for a walk. You decide to spend the first
    15·1 answer
  • Using the information provided below and assuming the cash flows occur at a constant rate each year, calculate the discounted pa
    14·1 answer
  • Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with
    9·1 answer
  • Universal Containers sells through many different reseller networks. Each reseller's deals are tracked on separate opportunities
    5·1 answer
  • Companies that try to act in a socially responsible way are likely to focus on such activities as Multiple select question. incr
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!