Sheridan company has $2800000 of bonds outstanding. The unamortized premium is $40300. If the company redeemed the bonds at 101, then there would be a gain redemption of $12300
To calculate the gain or loss redemption follow the following steps first add bonds outstanding and unamortized premium then subtract the amount with cash to find the cash, multiply the bond outstanding by 1.01 then subtract both the numbers the difference between the numbers will be a gain or loss redemption if the amount on debit side is greater than the amount on credit side before subtracting the numbers then it is gain redemption and vice versa.
According to the question(($2800000 + 40300) - (2800000 * 1.01)) = 12300 the journal entry of the following will be:
Bonds payable (Debit) $2800000
Unamortized premium (Debit) $40300
Gain on redemption (Credit) $12300
Cash (2800000*1.01) (Credit) $2828000
Therefore the gain redemption is $12300
If you are taking the redemption proceeds and subtracting what you, in the beginning, paid for the bond, then the difference will inform you of the answer. If it's positive, you then have a gain. If it is negative, you've got lost cash at the bond.
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Answer:
i wouldnt be a investor
Explanation:
i wouldnt waste my time like that :)
Answer:
Learning curve theory states that as the quantity of a product produced increase , the man-hours per unit expended producing the product decrease.
Explanation:
The learning curve states that if a person performs similar task again and again, then after a period of time there will be an improvement in his/her performance.
It is calculated using following formula.
Y = ax^b
.
Y = cumulative average time per unit or batch.
a = time taken to produce initial quantity.
X = the cumulative units of production or, if in batches, the
cumulative number of batches.
b = the learning index or coefficient, which is calculated as:
log learning curve percentage ÷ log 2. So b for an
90 per cent curve would be log 0.9 ÷ log 2 = – 0.152
<span>Instructions for the proper handling of accounts receivable using notes held by bork furniture company as an example. Determine the due date by calandar day and year, and the maturity values of all said notes.</span>
<span>This is an example of ascending vertical social mobility because he is going upward. He is getting a higher position with more money. He is going up the ladder rather than being demoted downward to something lower.</span>