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miss Akunina [59]
3 years ago
10

On February 1, 2020, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar

y 1, 2021, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement
Business
1 answer:
marta [7]3 years ago
4 0

72,800 gain should be recognised on this bond retirement

Solution:

Bond redemption applies to repurchases of newly sold debt by creditors. If the bonds have been issued, the borrower excludes the debt due in its accounts at the expected maturity of those instruments.

Paid at redemption : $1,000,000 * 102          = 1,020,000    

Book value: $1,000,000 + $92,800               = 1,092,800

                                                                      ----------------------

Gain on bond retirement                                 = 72,800

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On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 f
max2010maxim [7]

Answer:

Banes Domino's Company

Closing Entries

Date      Acct.No              Account                    Debit                 Credit

                 9           Income Summary             329,000.00

                 11                  Salary Expense                              244,500.00

                 12                 Rent Expense                                48,000.00

                 13       Depreciation Expense                           25,000.00

                 14         Supplies Expense                                  9,500.00

                15     Miscellaneous Expense                              2,000.00

Expenses are closed to Income Summary Account.

                10               Fees Earned                  510,000.00

                   9           Income Summary                                  510,000.00

Revenue Accounts are closed to Income Summary Account.

                              9           Income Summary   181,000.00

                                        Jack Banes, Capital                      181,000.00

To close Income Summary Account

                           Jack Banes, Capital    47,000.00

                             Jack Banes, Drawing                               47,000.00

To Close withdrawals account.

5 0
3 years ago
Daniels Transport has operating income of $68,200, interest expense of $210, dividends paid of $320, depreciation of $12,400, ot
Kisachek [45]

Answer:

Option (a) is correct.

Explanation:

Given that,

Operating income = $68,200

Interest expense = $210

Dividends paid = $320

Depreciation = $12,400

Other income = $2,100

common stock = $48,500 with a par value of $1 per share

Retained earnings = $29,700

Income before taxes:

= Operating income - Interest expense + Other income

= $68,200 - $210 + $2,100

= $70,090

Net income:

= Income before taxes - Taxes at 21%

= $70,090 - ($70,090 × 21%)

= $70,090 - $14,719

= $55,371

Shares of common stock outstanding:

= Common stock ÷ Par value per share

= $48,500 ÷ $1

= 48,500 shares

Earnings per share:

= (Net income - Preferred dividend) ÷ Shares of common stock outstanding = ($55,371 - 0) ÷ 48,500

= $1.14 per share

Therefore, the earnings per share if the tax rate is 21 percent is $1.14.

3 0
3 years ago
Arena, Inc. uses the direct method to prepare its statement merchandise inventory of cash flows. Use the following information r
Svet_ta [14]

Answer:

D. $184,400

Explanation:

Please see attachment

7 0
2 years ago
Which of the following could a typical third grader handle?
N76 [4]

10-15 push ups: it's because pull-ups are taxing for an 8 year old, using my brother for an example who can hardly lift himself up. Sit-ups are taxing on the back due to the amount of muscular endurance and strength while a mile running-I laugh- converted to meters is approximately 1609 meters. I'm in Junior high yet I can  only do 900. Thus, it can be concluded the most appropriate activity a third grader could handle is a simple push-up.  

4 0
3 years ago
Read 2 more answers
Constructive conflict Multiple Choice encourages employees to re-examine their basic assumptions about a problem and its possibl
anyanavicka [17]

Answer:

encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

Explanation:

Constructive conflict encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

When employees working in an organization are engaged in a constructive conflict, they are able to draw from a variety of ideas, opinions and views of the other party and by extension moving the organization forward in its operations, goals, objectives and mission.

<em>Hence, a constructive conflict enhances the level of output or production in an organization rather than inhibitions of growth and development. </em>

7 0
2 years ago
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