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Montano1993 [528]
3 years ago
11

The situations presented here are independent of each other.For each situation, prepare the appropriate journal entry for the re

demption of the bonds.Pelfer Corporation redeemed $160,000 face value, 10% bonds on April 30, 2014, at 105. The carrying value of the bonds at the redemption date was $144,571. The bonds pay annual interest, and the interest payment due on April 30, 2014, has been made and recorded.2-Youngman, Inc., redeemed $250,400 face value, 14.3% bonds on June 30, 2014, at 96. The carrying value of the bonds at the redemption date was $271,021. The bonds pay annual interest, and the interest payment due on June 30, 2014, has been made and recorded.
Business
1 answer:
Vlada [557]3 years ago
4 0

Answer and Explanation:

The Journal entry is shown below:-

1. Bonds payable Dr, $160,000

Loss on bond redemption Dr, $23,429

($160,000 × 1.05 - $144,571)

      To Discount on bond payable $15,429

($160,000 - $144,571)

      To Cash $168,000

($160,000 ÷ 100 × 105)

(Being redemption of bonds is recorded)

2. Bonds payable Dr, $250,400

Premium on bond payable Dr, $20,621

($271,021 - $240,384)

        To Gain on bond redemption $30,637

($271,021 - $240,384)

         To Cash  $240,384

($240,384 ÷ 100 × 96)

(Being redemption on bonds is recorded)

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The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted
Dmitry [639]

Answer:

$96,000

Explanation:

Production  26,000 units

<u>Materials Purchase Budget</u>

Production Materials Required  (5×26,000 units)     130,000

Add Budgeted Closing Materials (50,000×20%×5)   50,000

Total Materials                                                             180,000

Less Budgeted Opening Inventory (4,000×5)          (20,000)

Budgeted Materials                                                     160,000

Material Cost per pound                                                $0.60

Total Material Cost                                                      $96,000

Therefore, the materials purchases budget will be for the month ending April 30 will be  $96,000.

7 0
3 years ago
Arnold, a single individual, has adjusted gross income of $65,000 in the current year. Arnold donates the following items to his
Olin [163]

Answer:

Option A. $15,400

Explanation:

The net deduction allowed as an charitable contributions are as under:

                                             $

1. ABC Cop. stock

Cost $6000  

FMV <u>$22000</u>                   $16000

2. Personal Clothing Items

Cost $1000

FMV <u>$400  </u>                      <u>  ($600) </u>

Net Deduction                 $15,400

The amount that qualifies as charitable contribution for the year is $15400.

3 0
3 years ago
Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation
Ludmilka [50]

Answer:

During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:

I. Output: During Recession, production output reduces.  But, during expansion, product output rises with rising income, employment, and even stable inflation.

II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises.  It reduces when the economy enters a recession.

Explanation:

Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation.  It usually cascades between the spectrum of expansion and recession.  This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

5 0
3 years ago
Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropr
kobusy [5.1K]

Answer: $2,398.55

Explanation:

The deposit at the end of year one would have been compounded by 2 years at the end of year 3. The second year deposit would have compounded by 1 year and the third year deposit would not have compounded at all.

The future value at the end of 3 years is;

= (500 * ( 1 + 11%)²) + (750 * ( 1 + 11%)) + 950

= $2,398.55

<em>The question might not be the exact same but you can use this as a reference. </em>

6 0
3 years ago
A company wants to determine if the average shearing strength of all rivets manufactured is more than 1000 lbs. A sample of 25 r
ser-zykov [4K]

Answer:

B- The average shearing strength of all rivets manufactured must be between 1001.4 and 1006.2.

Explanation:

The company manufactures rivets and it want to analyze the strength of the rivets manufactured. For this purpose the company has carried out hypothesis testing in which the confidence interval resulted to be 1001.4, 1006.2, this indicates that the average strength of each rivet must be between the two values.

4 0
3 years ago
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