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Free_Kalibri [48]
3 years ago
15

The following section is taken from Ivanhoe's balance sheet at December 31, 2021. Current liabilities Interest payable $ 47,500

Long-term liabilities Bonds payable (8%, due January 1, 2025) 575,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Ivanhoe calls bonds having a face value of $170,000. The call price is 106. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
Business
1 answer:
Alinara [238K]3 years ago
8 0

Answer and Explanation:

The Journal Entry is shown below:-

1. Bond Interest Payable $47,500

            To Cash $47,500

(Being payment of interest on bonds is recorded)

2. Bonds Payable Dr, $170,000

Loss on Redemption of Bonds Dr, $10,200

($180,200 - $170,000)

               To Cash $180,200

($170,000 × 106%)

(Being redemption of bonds is recorded)

3. Bond Interest Expense $32,400

($575,000 - $170,000) × 8%

             To Bond Interest Payable $32,400

(Being accrue interest on remaining bonds is recorded)

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Answer:

Explanation:

At some colleges and universities, economics professors receive higher salaries than professors in some other fields.

A. Why might this be true?

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Answer:

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Explanation:

The discounted payback period is used to determine the profitability of an investment project.

A not discounted payback period is how long does it take for the cash flows of a project to recoup the investment's cost without considering the value of money in time. By applying a discount to the cash flows, the discounted period will more accurately measure the length of time needed to recoup an investment using current dollars.

The higher the discount rate, the longer it will take for the cash flows to cover the investment's cost, so if the discount rate lowers, then the discounted payback period will be shorter.

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Answer:

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Explanation:

Computation of the predetermined overhead rate

Using this formula

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