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4 years ago

Bonds with a face amount $1,000,000, are sold at 96. The entry to record the issuance is

Business

1 answer:

laiz [17]4 years ago

8 0

Answer:

Option C is correct

Explanation:

The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000

The discount on bonds payable=Face value-cash proceeds

The discount on bonds payable=$1,000,000-$960,000=$40,000

The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively

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makvit [3.9K]

Answer:

$2,000

Explanation:

where the cost of the delivery truck is $28,000 and a useful life of 5 years with a salvage value of $3,000,

Annual Depreciation = $\frac{28000-3000}{5000}$

= $\frac{25000}{5}$

= 5000

Therefore,

After year 1 which is by January 1st, 2019

Net book value of the truck = $28,000 - $5,000

= $23,000

After year 2 which is by January 1st, 2020

Net book value of the truck = $23,000 - $5,000

= $18,000

After year 3 which is by January 1st, 2021

Net book value of the truck = $18,000 - $5,000

= $13,000

After year 4 which is by January 1st, 2022

Net book value of the truck = $13,000 - $5,000

= $8,000

If the useful life of the asset is extended to 7 years from 5 years, the number of years remaining for the asset as at January 1st, 2022 would be extended from 1 year to 3 years.

Therefore, where the residual value is $2,000

Depreciation per year for the remaining 3 years

= (8000 - 2000)/3

= 6000/3

= 2000

Popular Company would report $ 2,000 as depreciation expense for the year ended December 31st, 2022.

3 0

3 years ago

PLS HELP!!! WILL GIVE POINTS & BRAINLIEST!!!!

Ira Lisetskai [31]

The equilibrium price is $40 and the equilibrium quantity is 250. For next time to find the equilibrium in something it’s the point where they cross.

6 0

3 years ago

Ayayai Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $56,800. Ayayai determined

Mumz [18]

Answer:

journal entry are as given below

Explanation:

given data

carrying value = $56,800

bonds decreased value = $48,100

solution

we know that here impairment loss for organization when future estimate value of assets is less than carrying value of assets

and all loss and expenses are debit

and by the impairment loss value of investment decline so maturity id credit

so here

impairment loss is

impairment loss = carrying loss - decrease value ............1

impairment loss = $56,800 - $48,100

impairment loss = $8700

so journal entry are as

date title Debit Credit

Impairment loss $8700

investment held to maturity $8700

6 0

3 years ago

The legal definition of "small business" varies by country and by industry. In the United States, the Small Business Administrat

tamaranim1 [39]

Answer:

Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.

Explanation:

1. Better technology for the business.

Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.

2. Better capital management.

Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.

3. Tax benefits

Leasing is tax deductible. Reducing the fiscal pressure over the small business.

6 0

3 years ago

On its December 31, 2005 balance sheet, Shin Co. has income tax payable of $13,000 and a current deferred tax asset of $20,000,

anzhelika [568]

Answer:

The correct option here is C) $10,000.

Explanation:

When we are talking about income tax expense it includes the net income tax liability, deferred tax changes and changes in valuation account for deferred tax assets.

Given tax liability = $13,000

Current Deferred tax assets(2005) before valuation account = $20,000,

but at the end of year at 31 December, 2004 it was = $15,000

So here there has been an increase in the deferred tax asset, which means now the income tax expense would decrease ,as this future anticipated deduction will be treated as asset when it will be realized in the current year.

Also it is recognized by shin that 10% of the deferred tax would not be realized, so therefore it is an increase in the valuation account, which will reduce the deferred tax asset effect.

INCOME TAX EXPENSE =

Tax liability - increase in deferred tax asset + increase in valuation account

= $13,000 - ($20,000 - $15,000) + 10% x $20,000

= $13,000 - $5000 + $2000

= $10,000

3 0

3 years ago