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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.

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astraxan [27]

Answer: Delegation

Explanation: Delegation in the context above may simply be explained as the process whereby there is a shift in the responsibility of one person to another who will function as a deputy. When an individual usually a superior, who is the actual overseer of a certain process or routine entrusts or handover to another person due to one reason or the other such as tight scheduling or shortage of personnel. In most cases the new handler is usually a lower ranking official in the task such as in the scenario above and as such, the expected rate of output is slightly reduced.

8 0
3 years ago
Based on the following information, what is the balance on the financial account? Exports of goods and services = $5 billion Imp
Olegator [25]

Answer:

3 billion

Explanation:

the financial account will be the cash inflow less the cash outflow:

Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion

4 billion of dollar enter the US from aboard while 1 billion left the country with destination aboard in total the financial account will be:

4 billion - 1 billion = 3 billion

4 0
3 years ago
The price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and eddie has $10 to spend on both goods. the m
marysya [2.9K]

If peanuts cost .25 per bag, you would divide $10 by .25 to determine how many bags you are able to buy.

3 0
2 years ago
By lowering production costs, _____ help domestic producers compete against foreign imports
Ann [662]

The policy that lowers production costs and helps domestic producers to compete with imports are <u>D. subsidies. </u>

<h3 /><h3>What are subsidies?</h3>

This is a government policy where the government pays for some of the costs of production for local firms.

This allows the local firms to then sell their goods at a lower price so that they can compete with cheaper imports.

Options for this question include:

A. tariffs

B. custom duties

C. tariff rate quotas

D. subsidies

Find out more on subsidies at brainly.com/question/6945210.

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2 years ago
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.25 per
garik1379 [7]

Answer:

1,065 U

Explanation:

Materials Price Variance = Actual Quantity Purchased * (Standard Price – Actual Price)Actual Price= Total Cost / Quantity Purchased

= ($27,690 /21,300 )=$ 1.3

=21,300* [$1.25 – $1.3]

=21,300*0.05

=1,065 U

During May, the materials price variance for part XBEZ52 was 1,065 which is Unfavourable because the actual

purchase price is higher than standard.

5 0
2 years ago
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