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
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

You might be interested in
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and manage
Ainat [17]

Answer:

Slope of short-run aggregate supply curve: wage-price flexibility

In the short run, some factors are fixed and some factors can vary and the costs incurred on fixed factors are constant. Thus, the price level does not change as fast as it could have been if all are variable resources.

However, if prices are subjected to the variation in the wages, then the price level will increase faster than the costs. If actual price level is below the expected level, then the nominal wage rate is more than the expected and vice-versa. This would result in a greater slope of the short-run aggregate supply curve, which means short-run aggregate supply curve will be relatively steeper.

In the short run, the wage rate and price level are sticky downward because fall in nominal wage of workers will reduce the incentive to work.

Hence, if the wage rate adjusts continuously to any change in price; then the aggregate supply curie is relatively steep, and when wage and price level are sticky,  then the short-run aggregate supply curve will be relatively flat.

5 0
3 years ago
Writing down ways you would like your community to improve is an example of ______
IrinaK [193]
Increase capital markets for example profit market
3 0
3 years ago
Visit the web site for a different well-known company, and find the section that lists the company's values. what are the compan
vovangra [49]

Person can visit the website of Microsoft is the well known company to find the section that lists the company's values.

<h3>What are the core values that Microsoft has?</h3>

  • Innovation - People think that technology can and should be used for good, and that meaningful innovation can and will help to make the world a better place in both large and little ways.
  • Inclusion and variety Diverse voices allow us to thrive. To inform, challenge, and push our thinking, we draw on the experiences, strengths, and perspectives of our workers and customers.
  • CSR- people think that technology has the potential to be a great force for good, and we are working to ensure that everyone has access to the benefits and opportunities that technology provides.
  • Artificial Intelligence- AI, we believe, can enhance your capabilities, free you up for more creative and strategic pursuits, and help you or your organization achieve more when it is created with humans at the heart

Thus, Microsoft is company that have a solid values.

For further details about core values that Microsoft , click here:

brainly.com/question/17031465

#SPJ1

6 0
2 years ago
When early settlers needed to buy farming equipment and supplies, they often would use the milk, eggs, and crops their farms pro
Tasya [4]

Answer:

The correct answer is A)

Explanation:

There is no good or service that is unlimited.

The concept of the Barter system was simply a method of exchanging value for value.

  • It was phased away due to several reasons:
  • It was not a good store of value as many of the goods were perishable
  • it didn't make for good administration: It was too cumbersome and problematic. Imagine having to store three trailers of eggs awaiting a barter exchange

Cheers!

3 0
3 years ago
Credit sales 172,000 collections on accounts receivable during the year 170,000 cash sales 818,000 unadjusted debit balance in a
Marina CMI [18]

Answer:

$250  ( C )

Explanation:

using the given data below is the entry

The adjusting entry to recognize bad debts will include a debit to bad debt expense for

<h3>  particulars                                                                   amount</h3>

Beginning accounts receivable                                                     14000

+ Credit sales made during the year                                             172000

(-) collections from debtors                                                            (170000)

(-) expected salary return & allowances for credit sales               (2000)

Ending accounts receivable                                                          14000

Percentage of bad debt                                                                 1.5%

Total bad debts balance required ( 14000*1.5%)                          210

+ Already debit balance in allowance for doubtful account         40

Total debit to be made in bad debts                                              250

Total debts = total bad debts balance required + already debit balance in all

                  =  210 + 40 = $250

7 0
3 years ago
Other questions:
  • Adel wrote Abdullah, "I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payabl
    10·1 answer
  • Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potentia
    7·1 answer
  • The application of moral and ethical analysis to a situation is usually called ethical. Ethics is rooted in the idea that every
    10·1 answer
  • During market testing, Sensation Cosmetics (SC) realized that the cosmetics industry was dominated by multiple, well-established
    7·1 answer
  • XYZ Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing fa
    6·1 answer
  • The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of
    5·1 answer
  • Plz help me match Matilda and Greg together​
    11·1 answer
  • On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a sche
    8·1 answer
  • Which case below best represents a case of price​ discrimination? A. A professional baseball team pays two players with differen
    13·1 answer
  • The only way to decrease your lifestyle budget is by completely eliminating an item.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!