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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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Answer:

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3. Intensive Distribution

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Selective Distribution is the one in which the product is available only at some identified places, as for example the 5. point the apple phones are available usually at apple stores or some other specified mobile sellers, thus it is easily available yet at some limited shops only.

Exclusive Distribution is the one in which the product is available only at some exclusive shops, as in the 4th point and 6th point the luxury brand is not easily available and rather at only a few outlets of the company.

8 0
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murzikaleks [220]

Answer:

$10,800

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The extra money that Richard gave Alice that was not part of the divorce settlement is not included in her gross income, since it is included in Richard's gross income.

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3 years ago
An individual stockholder is entitled to receive any dividends declared on stock owned, provided the stock is held on the date o
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7 0
3 years ago
Barbara is a producer in a monopoly industry. Her demand​ curve, total revenue​ curve, marginal revenue​ curve, and total cost c
maks197457 [2]

Answer:

D

Explanation:

Profit is Maximize when MR = MC

since MR=40 - 0.5Q

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Therefore:

40-0.5Q = 4

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-0.5Q= -36

divide through by -0.5

Q = 72

since Q = 72

from Q = 160 - 4p

72 = 160 - 4P

-4p = 72 - 160

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When dave, a restaurant owner, had his seafood business destroyed by hurricane katrina, he believed that he was in control of hi
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Dave is an individual with an <u>"Internal locus of control".</u>


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Psychological research has discovered that individuals with a more internal locus of control appear to be in an ideal situation, e.g. they have a tendency to be greater accomplishment situated and show signs of improvement paying employments.

7 0
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