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
allsm [11]
3 years ago
11

Bond Investment Transactions

Business
1 answer:
Kitty [74]3 years ago
4 0

Answer:

Explanation:

The journal entries are shown below:

a) Investment in bonds Dr A/c$120000

  Interest receivable Dr A/c$ 1000

         To Cash A/c $121000

(purchased of 5% bonds with accrued interest of $1000 on the bonds for cash is recorded)

b) Cash Dr. A/c $3000         ($120,000 × 5% × 6 months ÷ 12 months)

         To Interest receivable A/c $1000

          To Interest Revenue A/c $2000

(Being the first semiannual interest payment is received)

c)  Cash Dr A/c $61100       ($60,000 × 101 + $500)

               To Investment in bonds $60000

               To Interest Revenue $ 500

                To Gain in sale of investment $600

( Being the sale of bond with accrued interest of $500 is recorded and the remaining amount will be credited to the gain in sale of investment)

You might be interested in
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl
Aleksandr-060686 [28]

Answer and Explanation:

a. The computation of operating profit is shown below:-

Profit per unit = Purchase price from outside per unit + variable cost of production internally

= $15 - $7

= $8

Total increment in operating profit = Profit per unit × Total number of units

= $8 × 24,000

= $192,000

b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)

c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit

3 0
3 years ago
What is most often the cause for a change in career or lifestyle?
Margaret [11]

Answer:

Adjustment, is the right answer.

Explanation:

Adjustment is the reason that changes the career or lifestyle. For example, a girl who is working, if she gets married then there are chances that she will continue her professional life but after getting pregnant she has to adjust herself to not go outside. She will avoid going to the office, shopping malls, shopping, etc. Therefore, she has adjusted herself with the situation that changes her carrier (working professional) and her lifestyle.

4 0
2 years ago
Lash World Pool Supplies wants its salespeople to call on pool wholesalers five times per year and to spend two hours on each sa
ivann1987 [24]

Answer:

a) 10

Explanation:

Calculation to determine Approximately how many salespeople does Splash World need to service 1000 accounts

First step is to determine the selling time

Using this formula

Selling time=Number of customers *Sales calls per year*Hours per sales call

Let plug in the formula

Selling time=1000 * 5 *2 hours

Selling time= 10,000 hours

Second step is to determine the number of hours they used to sell

Hours to sell= (40 hours per wweek* 50 weeks)*1/2

Hours to sell = 2000 hours per year*1/2

Hours to sell= 1000 hours per year.

Now let determine how many salespeople does Splash World need to service 1000 accounts

Number of salespeople=10,000 hours /1000 hours per year

Number of salespeople=10

Therefore Approximately how many salespeople does Splash World need to service 1000 accounts will be 10 salespeople

6 0
3 years ago
Depreciation is incorporated into the discounted cash flow analysis of an investment proposal because it: Select one: a. Is a co
tia_tia [17]

Answer:

the answer is b

Explanation:

cause its the annual cash outflow

5 0
2 years ago
suppose the absolute values of the intercept and slope of the demand function are approximated to be 10 and 3 respectively. if t
egoroff_w [7]

The equilibrium price is $0.5 while the equilibrium quantity is 8.5

From the Demand data that we have in this question,

Slope = 3

Intercept = 10

The demand equation

D = -3p + 10

D = 10 - 3p

The supply data

Slope = 5

Intercept  = 6

Supply equation

S = 6 + 5p

D = S

This is because at equilibrium, <u>supply = demand</u>

Therefore,

10-3P = 6+5P

collect like terms

10-6 = 3p+5p

4 = 8p

Divide through by 8

p =\frac{4}{8} \\\\= \frac{1}{2}

Equilibrium price = $0.5

The equilibrium quantity

D = 10 - 3*0.5

= 10-1.5

= 8.5

Therefore from the calculation, the equilibrium price is $0.5 and the equilibrium quantity is 8.5

Read more on brainly.com/question/16689858?referrer=searchResults

3 0
2 years ago
Other questions:
  • The following lots of a particular commodity were available for sale during the year:Beginning inventory 10 units at $60First pu
    13·1 answer
  • A technology company that makes computers for professional use is trying to segment its customers. The company asked some profes
    7·1 answer
  • Aside from human user types, there are two other non-human user groups. Known as account types, ________________ are accounts im
    15·1 answer
  • which of these is most appropriate closing for a business letter? a. respectfully, b. kind thoughts, c. until next time, d. chee
    7·2 answers
  • To add text to a blank slide layout, _____.
    11·2 answers
  • Rita earns $10 per hour. She puts 5% of her earnings in savings. Write an inequality to find how many hours h Rita must work to
    8·2 answers
  • Which of the following resource management key activities defines and categorizes incident resources by capability?
    15·1 answer
  • Dirt is not dirt when it comes to baseball fields.About two-thirds of the pro baseball fields got their dirt from a dirt farm in
    7·1 answer
  • Swifty Corporation financed the purchase of a machine by making payments of $20500 at the end of each of five years. The appropr
    5·1 answer
  • I need HELP
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!