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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:

The answer is stated below:

Explanation:

The challenges which one would face and these are:

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5 0
3 years ago
Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48. Each burger costs $6 and each o
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Answer:

The correct answer is 16 utils.

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Easywriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. management recently finished analyzing the re
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a. 50 cents

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3 years ago
The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,
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Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

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Change in net working capital will be:

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Discouraged workers are not counted as part of the labour force and they are not considered to be unemployed.

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