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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

almond37 [142]

Answer:

bonds payable 1,000,000 debit

loss on redemption 20,000 debit

discount on bonds 10,000 credit

cash 1,010,000 credit

--to record tyhe call of the bonds on September 30th--

Explanation:

par value of the bonds: 1,000,000

call premium: <u> 10,000</u>

total cash disbusements: 1,010,000

carrying value 990,000

loss on redemption 20,000

<u>Notice: </u>It is a loss as we are paying more than the aliability is worth

discount/premium:

face value 1,000,000

carrying value 990,000

discount 10,000

We write off the bonds account: bond payable and bon discount

we debit the loss and credit hthe cash disbursments

8 0

3 years ago

To determine the six-month interest payment amount on a bond, you would take one-half of the market rate times the face value of

MrRa [10]

Answer:

False

Explanation:

To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.

The market rate of the bond may or may not be equal to the contract rate. If the bond was sold at a premium, the market rate is lower than the contract rate. If the bond is sold at a discount, the market rate will be higher than the contract rate.

3 0

3 years ago

Assume that you have already completed a 5-year international assignment working for KPMG as a Tax Consultant in Singapore.

horrorfan [7]

From the information, it can be inferred that it's an indication of the uncertainty that exists in the Vietnamese cultural model.

From the complete information, Vietnam has low points in the avoidance index. This implies that they're less associated with their cultural roots and don't have concern for hiring white people.

Some of the solutions that can be applied for training the workers include providing them with ethical and language-based training and also encourage a team culture.

Learn more about model on:

brainly.com/question/25993624

6 0

2 years ago

Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rat

erastovalidia [21]

Answer:

The correct answer is $720 in Year 1 and $240 in Year 2 Next.

Explanation:

According to the scenario, the given data are as follows:

Loan Amount =$16,000

Rate of interest = 6%

Time period for first year (Apr - Dec) = 9 months

Time period for second year ( Jan - Mar) = 3 months

So, we can calculate the amount of interest by using following formula:

For first year:

Amount of interest (1st year) = $16,000 × 6% × 9 ÷ 12 = $720

Amount of interest (2nd year) = $16,000 × 6% × 3 ÷ 12 = $240

8 0

3 years ago

Your financial analyst calculated the following ratios for three companies: Boeing Microsoft PG&E Cash ratio 0.15 0.1 0.1 Cu

MaRussiya [10]

Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.

Explanation:

We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.

Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.

The debt ratios are therefore not directly comparable because each company is in a different industry.

7 0

3 years ago