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MrRa [10]
3 years ago
6

Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from

the Bonds Payable balance and shown with long-term liabilities on thebalance sheet.B) It is added to the Bonds Payable balance and shown with long-term liabilities on thebalance sheet.C) It is subtracted from the Bonds Payable balance and shown with the current liabilities on thebalance sheet.D) It is added to the Bonds Payable balance and shown with stockholders' equity on thebalance sheet.
Business
1 answer:
Aliun [14]3 years ago
8 0

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

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1. Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each
olga_2 [115]

Answer:

 $470,000 F

Explanation:

The computation of the static budget variance of operating income is shown below:

Particulars  Actual results         Static budget         Static budget variance Units sold        180,000 units        185,000  units

Revenues        $3,780,000            $4,440,000             $660,000 U

Variable costs  $1,080,000            $1,295,000              $215,000 F

Contribution margin  $2,700,000   $3,145,000             $445,000 F

Fixed costs         $800,000              $775,000              $25,000 U

Operating income   $1,900,000     $2,370,000            $470,000 F

Note:

Multiply the selling per unit with unit sold to get the revenue amount

6 0
3 years ago
Trew Company plans to issue bonds with a face value of $902,000 and a coupon rate of 6 percent. The bonds will mature in 10 year
Agata [3.3K]

Answer:

$807,992

Explanation:

issue $902,000 with a 6% semiannual coupon and 10 year maturity. coupon payment = $27,060

if the annual market interest rate = 7.5%, the bonds should be sold at a discount:

issue price = present value of face value + present value of interest payments

  • present value of face value = $902,000 / (1 + 3.75%)²⁰ = $431,961
  • present value of annuity = $27,060 x {1 - [1 / (1 + 3.75%)²⁰]} / 3.75% = $376,031

issue price = $431,961 + $376,031 = $807,992

the journal entry should be:

Dr Cash 807,992

Dr Discount on bonds payable 94,008

    Cr Bonds payable 902,000

5 0
2 years ago
What is a reason someone would want to include a savings in a budget?
katrin2010 [14]
Having a saving in the budget will one help obviously save more money for the household and it will build interest over the years.
7 0
3 years ago
Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance c
Crank

Answer: analysis using numerical tools

Explanation:

The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.

Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.

8 0
2 years ago
What type of operation involves methods and operating procedures that are aimed primarily at the reduction of primary and second
sp2606 [1]

Salvage is a type of operation that involves methods and operating procedures that are aimed primarily at the reduction of primary and secondary damage incurred during fire suppression activities.

What is fire suppression activity?

All actions are taken to contain and put out a fire after it has been discovered, including immediate attack, sustained attack, limited action, delayed action, and observation and monitoring.

Any fire can be put out by cooling it down, covering it, starving it, or stopping the combustion process altogether. Cooling with water is one of the most typical ways of putting out a fire.

Salvage covers tasks that must be completed in order to avert both direct and indirect fire damage as well as to lessen the impact of firefighting operations. Losses resulting from water, smoke, and firefighting activities are included.

The purpose of Salvage is to lessen the damage caused by a fire's heat, smoke, water, cold, or whether both during and after the fire.

To know more about fire suppression refer to:  brainly.com/question/24313137

#SPJ4

5 0
1 year ago
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