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AysviL [449]
3 years ago
14

The rule to remember when accounting for bonds sold at a premium or at a discount is that Bonds Payable is always credited for t

he face amount of the bond issue, regardless of the selling price. If a bond with a face value of $50,000 was sold at a premium for $52,000, what account would be credited and for how much?
Business
1 answer:
Sever21 [200]3 years ago
7 0

Answer:

Cr Bonds Payable account 50,000

Cr Premium on Bonds Payable account 2,000

Explanation:

The complete journal record should be:

  • Dr Cash account 52,000
  • Cr Bonds Payable account 50,000
  • Cr Premium on Bonds Payable account 2,000

Since cash is an asset and it increases, it should be debited.

Since bonds payable and premium on bonds payable are liabilities and they increase, they should be credited.

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The accounting equation (Assets 5 Liabilities 1 Equity) is a fundamental business concept. Explain what this equation reveals ab
Orlov [11]

Answer:

Explanation: The Accounting Equation (Assets= liabilities +Equity) shows the relationship between a company's assets, Liabilities and owners equity which at the end of the day balance out.

Assets reflect the total value of the property that the business has, and which is in its turnover.

Liabilities reflect the size of the financing of an organization’s assets by third parties, banks, and private financial institutions.

Owner's Equity is characterized the value of investments made in this organization by its owner/s (shareholders). It can be said to be Capital plus retained earnings.

The accounting equation can be said to be Assets = liabilities+capital+revenue-expenses -dividend.

this is simply put that assets are totality of a company's liabilities, capital, revenue, expenses and dividend.

5 0
3 years ago
A credible online source is less likely to include
Nezavi [6.7K]
2) as opinions should be left out of factual articles and credible sources
7 0
3 years ago
Read 2 more answers
Which type of company enjoys the benefit of passing along deductions and credits of the company on to partners to file on their
Oksi-84 [34.3K]

Answer:

The correct answer is Limited Liability Partnerships.

Explanation:

A Limited Liability Company is a type of mercantile company, in which the liability is limited to the capital contributed, and therefore, in the event that debts are incurred, it does not respond with the personal assets of the partners, but to the one contributed in said Limited company. It presents as a capitalist-type society in which capital, which will be divided into social interests, will be integrated by the contributions of all partners, who will not respond personally to social debts.

Social ACTIONS are not equivalent to the actions of corporations, as there are legal obstacles to their transmission. In addition, they do not have a "value" character and cannot be represented by means of securities or account entries, and their transmission by means of the public document that will be registered in the partner register book is mandatory. It will be constituted in a public deed and subsequently in the registration of the commercial register, at which time it acquires legal personality.

3 0
3 years ago
Within the marketing concept, a service orientation is an integrated organizational effort that revolves around.
Mekhanik [1.2K]

Answer:  making sure customers are satisfied

                                                 

Explanation: In simple words, service orientation refers to the mindset in the organisation under which all employees within work for a sole objective, that is, customer satisfaction.

Such behavior is implemented by the top management and requires continuous efforts. The domain of applicability of such behavior is after the sale is made.

This behavior is developed by the organisation to make sure that their market share remains constant and existing customers do not shift their demands.

7 0
3 years ago
The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin'
dusya [7]

Answer:

Contribution margin per unit= $7.5

Explanation:

Giving the following information:

Each radio sells for $23.75 and the variable cost per unit is $16.25.

The contribution margin is the difference between the selling price and the unitary variable cost:

Contribution margin= selling price - unitary variable cost

Contribution margin= 23.75 - 16.25

Contribution margin= $7.5

6 0
3 years ago
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