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
Annette [7]
2 years ago
5

On June 30, year 8, Adonis Co. had outstanding 4%, $4,000,000 face value bonds, originally issued at 98, maturing on June 30, ye

ar 13. Interest was payable semiannually every June 30 and December 31. Adonis did not elect the fair value option for reporting its financial liabilities. On June 30, year 8, after amortization was recorded for the period, the unamortized bond discount and bond issue costs were $40,000 and $30,000 respectively. On that date, Adonis acquired all its outstanding bonds on the open market at 97 and retired them. At June 30, year 8, what amount should Adonis recognize as gain before income taxes on redemption of bonds
Business
1 answer:
Nataliya [291]2 years ago
3 0

Answer:

gain on redemption         110,000

Explanation:

bonds payable        4,000,000 debit

bond issuance cost      30,000 debit

      discount on bonds            40,000 credit

      cash                              3,880,000 credit

      gain on redemption          110,000 credit

<u>book value of the bonds:</u>

face value      4,000,000

discount             (40,000)

issuance cost  <u>    30,000   </u>

total                3,990,000

<u>acquisition value:</u>

4,000,000 x 97% = 3,880,000

redemption gain/loss

book value less redemption price

3,990,000 - 3,880,000 = 110,000 gain on redemption

You might be interested in
The interest rate is 15.5 percent a year in Indonesia and 1.7 percent in a year in Hong Kong. The inflation rate is 12.6 percent
yawa3891 [41]

Answer:

In Indonesia, 2.58%,

In Hong Kong, 3.14%

Explanation:

Since,

\text{Real interest rate}=\frac{\text{1+Nominal interest rate}}{\text{1+Inflation rate}}-1

In Indonesia,

Nominal interest rate = 15.5% = 0.155,

Inflation rate = 12.6% = 0.126,

So, \text{Real interest rate}=\frac{1+0.155}{1+0.126}-1=\frac{1.155}{1.126}-1=0.02575\approx 0.0258\approx 2.58\%

In Hong Kong,

Nominal interest rate = 1.7% = 0.017,

Inflation rate = -1.4% = -0.014,

So, \text{Real interest rate}=\frac{1+0.017}{1-0.014}-1=0.03144\approx 0.0314\approx 3.14\%

8 0
3 years ago
In order to build profitable relationship with customers, it is important to decide whom it will serve. It does this by ________
givi [52]

Answer:

MARKET SEGMENTATION, TARGET MARKETING

Explanation:

In marketing defining the customer that a product will serve is a very important step in making a profitable venture. If a product is promoted to a wrong customer, chances are they will not buy.

Two methods of determining who a product will serve are market segmentation and target marketing.

Market segmentation is the process by which a set of customers are divided into groups on the basis of some shared characteristics. For example education, income level, and demography.

Target marketing is a subset of the total market for a good or service. It is a group of people that have been identified and targeted for promotional efforts.

4 0
3 years ago
Sales $ 2,000,000 100 % $ 500,000 100 % $ 2,500,000 100 % Variable expenses 800,000 40 % 250,000 50 % 1,050,000 42 % Contributio
Sonja [21]

Answer:

$1.5 million

Explanation:

The computation of break even sales in dollars is shown below:

= (Fixed expenses) ÷ (profit volume ratio)

where,  

Contribution margin  = Sales  - Variable expense

= $2,500,000 - 1,050,000

= $1,450,000

And, Profit volume ratio = (Contribution) ÷ (sales) × 100

So, the Profit volume ratio = ($1,450,000) ÷ ( $2,500,000) × 100 = 58%

And, the fixed expenses is $870,000  

Now put these values to the above formula  

So, the value would equal to  

= ($870,000) ÷ (58%)  

= $1.5 million

3 0
3 years ago
Waterway Industries began the year with retained earnings of $316000. During the year, the company issued $421000 of common stoc
Rus_ich [418]

Answer:

<u>revenues = 1,201,100</u>

<u></u>

Explanation:

$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning

beginning 421,000

+net income (revenues - 1,204,000)

- dividends 82,100

ending 336,000

421,000 + (r-1,204,000) - 82,100 = 336,000

revenues = 336,000 + 82,100 + 1,204,000 - 421,000

<u>revenues = 1,201,100</u>

5 0
3 years ago
In its​ year-end income​ statement, Black Knights Company reported cost of goods sold of​ $450,000. Changes occurred in several
torisob [31]

Answer:

The answer is $330,000

Explanation:

Cash paid to suppliers is the total amount of cash paid to its creditors.

We can find that through:

Cost of sold

Minus: Decrease in inventory

Plus: Decrease in accounts payable

=Cash paid to suppliers.

Now let's start:

Cost of sold - $450,000

Decrease in inventory - $160,000

Decrease in accounts payable- $40,000

$450,000 - $160,000 + $40,000

=$330,000

Therefore, Cash paid to suppliers is $330,000

5 0
2 years ago
Other questions:
  • Witch is true about stock
    14·1 answer
  • A firm that would like to develop a global supply chain would: Manufacture components or supplies in other countries. Sell raw m
    12·1 answer
  • On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and
    9·1 answer
  • Will leaving the country make an American businessman immune to U.S. laws?
    10·1 answer
  • craig thought he could earn $1,000 selling paintings in 6 months. instead, he made $1,200. what is the percentage difference?
    15·1 answer
  • Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without gi
    7·1 answer
  • Select the correct answer from each drop-down menu.
    14·1 answer
  • What does the Internet hostname after the period in the URL describe?
    10·1 answer
  • Responses such as winning, displaying anger, and retaliating are considered _____ responses to conflict.
    9·1 answer
  • suppose that forever 21 corporation has total assets of 3578000, common stock of 939000, and retained earnings of 576000 at dece
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!