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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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Answer:

$34,100

Explanation:

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Interest expense on the first annual payment=$310,000*11%

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The amount principal repayment in respect of the  first annual payment is the amount of payment which is $52,639 minus the interest portion of the payment.

The Principal portion of the first payment=$52,639-$34,100=$18,539

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 The answer would be False
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g If the beginning work in process includes 200 units that are 20% complete with respect to conversion and 30% complete with res
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Answer:

1,140 units

Explanation:

Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.

Step 1 : Determine units completed and transferred

Units Completed = Beginning units + Units Started - Ending units

                              = 200 + 1,000 - 100

                              = 1,100 units

Step 2 : Calculate equivalent units of production with respect to conversion costs

Completed and transferred (1,100 x 100%)         1,100

Ending units (100 x 40%)                                         40

Total equivalent units of conversion costs         1,140

thus,

the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.

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2 years ago
The selling concept is typically practiced with ________.A) industrial productsB) unsought goodsC) specialty productsD) convenie
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Answer:

B) unsought goods

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The selling concept -

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Paul Rodriguez who is the President of WV Railroad will need to rely primarily on his <u>Conceptual skills </u>to combat the challenges faced by his organization.

<h3>What are Conceptual Skills?</h3>

Conceptual skills refer to the competence and ability to see the overall organization, grasp how the various elements are interrelated, and analyze how the organization interacts with its external environment.

Conceptual skills also include the capacity to recognize and solve challenges. These abilities enable Presidents or managers of an organization to assess events and devise alternate strategies.

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