Answer:
Find in the excel file attached detailed adjusting entries required for all transactions in the question.
Explanation:
Please note the analysis of each transaction done under the heading "particulars".
Answer:B -
Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.
Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.
Explanation:
The bonds were issued at Par. This means they were issued at 100 of par.
The bonds are now trading at 104 of par.
If Sand Inc calls the bonds then they will make a profit (loss) of,
= 5,000,000 * 104/100
= $5,200,000
Therefore their Profit (loss) will be the bond at par minus the Calling price
= 5,000,000 - 5,200,000
= -$200,000
That means they make a loss of $200,000 in the year the bonds are called.
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Answer:
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Explanation:
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