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Alona [7]
3 years ago
5

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. Please explain the calculation and journal entry
Business
1 answer:
ivann1987 [24]3 years ago
7 0

Answer:

Explanation:

The journal entry is shown below:

On September 30

Bonds payable A/c Dr $1,000,000

Loss on bond retirement A/c Dr $20,000

          To Discount on Bond A/c  $10,000

          To Cash A/c $1,010,000

(Being the callable bond is recorded)

The computation is shown below:

For cash

= Par value of bond + Premium

= $1,000,000 + $10,000

= $1,010,000

For Loss, it would be

= $1,010,000 - $990,000

= $20,000

And, the remaining amount would be transferred to discount on bond

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Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000, res
Dimas [21]

Answer:

c. $50.00 per machine hour

Explanation:

Calculation to determine the predetermined overhead allocation rate

Using this formula

Predetermined overhead allocation rate=Manufacturing overhead costs/Machine hours

Let plug in the formula

Predetermined overhead allocation rate=$500,000/10,000

Predetermined overhead allocation rate=$50.00 per machine hour

Therefore Predetermined overhead allocation rate is $50.00 per machine hour

8 0
3 years ago
ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional databa
Alex787 [66]

Answer:

Big data

Explanation:

Big data is defined as the methods of analysing and extracting meaningful insights from data that is so large that traditional data processing methods cannot be used to analyse.

Challenges encountered when analysing big data include data capture, data storage, data analysis, sharing, transfer, visualisation, querying, and updating.

ABC Medical Technology has accumulated so much client information that conventional database management systems cannot handle its customers' needs. It uses big data analysis to extract relevant information.

3 0
3 years ago
Read 2 more answers
+ An e-commerce company spends a lot of money on product replacement, as customers often complain about the products they receiv
mojhsa [17]

Answer: Guaranteeing the quality of products so that the errors are completely eliminated instead of errors being identified and fixed.

Explanation:An e-commerce company spends a lot of money on product replacement, as customers often complain about the products they receive. The company has to replace the products delivered with better products. The company needs to guarantee that the quality of products errors are completely eliminated instead of errors being identified and fixed. By doing so , the cost will eliminated going forward .

Which core value of total quality management can assist the e-commerce company in tackling the problem of product replacements?

3 0
2 years ago
Intel Corporation had assets equal to $123,249 million and liabilities equal to $54,230 million for a recent year-end. What was
Ghella [55]

Answer:

total Equity at end of the year  = $69019 million

Explanation:

given data

assets = $123,249 million

liabilities = $54,230 million

to find out

total equity

solution

we get here total Equity at end of the year that is express as

total Equity at end of the year  = Asset - Liabilities   .................1

put here value we get

total Equity at end of the year  = $123,249 million  - $54,230 million

total Equity at end of the year  = $69019 million

8 0
2 years ago
How can a country achieve higher levels of competition and a variety of products in an industry with only one or two domestic fi
SSSSS [86.1K]

Through promoting intra-industry trade, a country can increase levels of competition and the range of products produced in an industry with only one or two local enterprises producing a good. International trade for goods produced by the same business is known as intra-industry trade.

According to the idea of economies of scale, production costs often decrease as output scale increases. When it makes it possible for one or two large producers to supply the entire country, it becomes particularly important to international trade. A way to maintain consumer choice and competition while combining economies of scale-driven lower average manufacturing costs is through international trade.

#SPJ4

5 0
1 year ago
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