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andre [41]
3 years ago
8

Temper Co. purchased 60, 6% Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually o

n July 1 and January 1. If 30 of the securities are sold on July 1 for $32,000 less $300 brokerage fees, the entry would include a credit to Gain on Sale of Debt Investments for:_______________.
a. $2,000.
b. $1,700.
c. $2,300.
d. $1,400.
Business
1 answer:
zavuch27 [327]3 years ago
8 0

Answer:

d. $1,400.

Explanation:

The computation of the gain on sale of debt investment is shown below:

Gain on sale of debt investment = Sale price - purchase price

where,

Sale price = $32,000 - $300 = $31,700

And, the purchase price is

= (60,000 + $600) × 30 days ÷ 360 days

= $30,300

Now the gain on sale of debt investment is

= $31,700 - $30,300

= $1,400

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Bolt Corp. acquires equipment valued at $81,630 by signing a 3-year noninterest-bearing note payable for $100,000. Calculate the
Serga [27]

Answer:

7%

Explanation:

Calculation for the implicit interest rate on the note

First step is to calculate the PV factor

PV factor=$81,630/100,000

PV factor = 0.81630

Last Step is to find the implicit interest rate by using the PV table for 3 years to find the factor that matches the PV factor of 0.81630

Hence the factor that matches the PV factor of 0.81630 can be found or see in the 7% column which means that the implicit interest rate will be 7%

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3 years ago
Han Cho has served in the US Army Reserves for two years. He is currently on active duty, stationed outside of the U.S. and is g
sashaice [31]

Answer:

Once Han returns to the US, his civilian employer is required to take him back.

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5 0
3 years ago
What is the rationale for the internal control principle, segregation of duties? select one:
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The rationale for internal control principle, segregation of duties is that the work of one employee should, without duplication of effort, provide a reliable basis for evaluating the work of another employee. Segregation of Duties is a basic building block of sustainable risk management and internal controls for business. It is based on shared responsibilities of a key process that disperses the critical functions of that process to more than one person or department.
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3 years ago
Stevens Company has had bonds payable of $10,000 outstanding for several years. On January 1, 2018, when there was an unamortize
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Answer:

-$3,000

Explanation:

Data provided in the given question:-

bonds payable = $10,000

unamortized discount = $2,000

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