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
igomit [66]
3 years ago
13

On January 1, 2020, Echo Company issued $550,000, 16 year, 9%, annual, callable bonds for $475,000. On December 31, 2025, Echo C

ompany redeemed (called) the bonds at 102. REQUIRED: 1. Prepare the Journal Entry to record the Issuance of the Bond 2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method) 3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.
Business
1 answer:
Gnom [1K]3 years ago
7 0

Answer:

1. Prepare the Journal Entry to record the Issuance of the Bond

January 1, 2020, bonds issued at a discount

Dr Cash 475,000

Dr Discount on bonds payable 75,000

    Cr Bonds payable 550,000

2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method)

total bond life = 16 years, 5 years have passed

amortization of bond discount per coupon payment = $75,000 / 16 = $4,687.50

so $51,562.50 have not been amortized yet

3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.

Before being able to redeem the bonds, the remaining discount must be amortized:

December 31, 2025, amortization of bond discount

Dr Interest expense 51,562.50

    Cr Discount on bonds payable 51,562.50

the journal entry to record the redemption of the bonds

December 31, 2025, bonds redeemed at a loss

Dr Bonds payable 550,000

Dr Loss on retirement of debt 11,000

    Cr Cash 561,000

You might be interested in
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 1
Ghella [55]

Answer:

The answer is D

Explanation:

Solution:

Recall that:

Malloy Furniture purchases two products: Big shelves B and Medium shelves M

The cost of big shelf is =$500

The space required = 100 cubic feet

The cost of each medium shelf is =$300

Storage space = 90 cubic feet,

Now,

Since the values 100 and  90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves

5 0
3 years ago
What is market power?
Sedbober [7]
I would say the correct answer is B. t<span>he ability of a company to change prices and output like a monopolist. Market power is basically the power of a particular company to manipulate the price of the product and thus affect all other participants, as well as customers. Monopolists have the greatest market power; conversely, in an ideally balanced economy, nobody would have market power. All participants would have equal chances and nobody would dictate the terms to others.</span>
8 0
3 years ago
What is a major plan that organizes several other plans?
Eva8 [605]
I think it’s D I’m not sure
5 0
3 years ago
The markup on a TV should be 58% based on selling price. If the seller paid $252 for one, then how much should it be sold for (i
FinnZ [79.3K]

Answer:

=$398.16

Explanation:

Mark up represents the desired profits of a product. A percentage mark-up increases the price of a product by that specific percentage.

If the cost is $252 and the required mark-up is 58%, the selling price will 58% higher than $252.

= 58% of 252 + 252

= (58/100 x 252 ) + $252

=$146.16 +252

=$398.16

3 0
3 years ago
Ryan estimates that he drove approximately 2,260 miles on business trips, but he can only provide written documentation of the b
tester [92]

Answer: $1,355.41

Explanation:

Business expense deductible:

= Adjusted Cost of gasoline + Depreciation

As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:

= (Cost of gasoline * Documented miles for business / Estimated miles for business) + (Depreciation * Documented miles for business / Total miles travelled)

= (1,920 * 1,300 / 2,260) + (3,900 * 1,300 / 20,200)

= $1,355.41

3 0
3 years ago
Other questions:
  • Identify the various acts of copyright violation and measures to prevent those acts. Monica recently heard about copyright. She
    13·1 answer
  • A large bank is promoting its credit card to existing bank customers who have had more than one account with the bank over the p
    6·2 answers
  • Facing stiff competition in the e-reader market, Sumac Industries wants to protect its competitive advantage by increasing the p
    13·1 answer
  • Malinda took a client to dinner meeting. After agreeing to a business deal, they went to see a show. Malinda paid $100 for the m
    13·1 answer
  • Powers Rental Service had the following items that require adjustment at year-end.
    11·1 answer
  • A few years back, Dave and Jana bought a new home. They borrowed $230,415 at a fixed rate of 5.49% (15-year term) with monthly p
    8·1 answer
  • Trade industry short note​
    7·1 answer
  • Gillian is a real estate licensee who attends a party at the home of a mortgage broker, Tim, with whom she has worked in the pas
    11·1 answer
  • The country of Lydania has a complex network of pipelines that transports natural gas for millions of people. These pipelines ar
    6·1 answer
  • Y3K Inc has sales of 5783 total assets of 2604 and a debt equity ratio of .75. If its return on equity is 11 percent what is its
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!