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
grin007 [14]
4 years ago
7

Journalize the entries to record the following selected bond investment transactions for Starks Products: If an amount box does

not require an entry, leave it blank. a. Purchased for cash $66,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $990
Business
1 answer:
dalvyx [7]4 years ago
6 0

Answer:

The journal entries are:

Dr Bond Receivable      66,000

Dr Interest Receivable   990

Cr Cash                          66,990

(to record the purchase of Iceline, Inc. 's bonds)

Explanation:

The purchase include the following deliverables:

+ The bond at the price of $66,000

+ The interest receivables that the seller(s) is/are eligible to receive, yet, they transfer the rights to the buyers. This amount is recorded at $990 as Buyer's receivable because as bond holder, Buyers are eligible to receive that. Noted that this is not qualified to be recorded as Interest Income for Bond's Buyers because the Buyers do not hold the bond at all before the purchase, thus, they should not recorded any interest income from the coupon receipt.

=> Total Cash spent for the purchase is $66,990 ( $66,000 + $990).

You might be interested in
What is the difference between statistics and business statistics?​
Alik [6]

Answer:

Statistics is extended part of mathematics were you deal about only formulas numbers and business statistics deals about your knowledge about financial business marketing.

8 0
4 years ago
Read 2 more answers
Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The
VLD [36.1K]

Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>

Therefore fixed costs are Irrelevant for this decision.

<u>Incremental Costs and Revenues - accept the special order</u>

Sales ( 10,000 units × $22 each)                               $220,000

<em>Less</em> Variable Costs ( 10,000 units × $17each)         ($170,000)

Net Income                                                                  $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

8 0
4 years ago
Read 2 more answers
Brett owns investment land located in Tucson, AZ. He exchanges it for other investment land. In which of the following locations
andriy [413]

Answer:

F. None of The Above

Explanation:

Real property located in the United States exchanged for foreign real property (and  vice versa) does not qualify as like-kind property.

4 0
3 years ago
Costello Corporation reported pretax book income of $500,900. During the current year, the reserve for bad debts increased by $6
raketka [301]

Answer:

Deferred income tax expense = $7,161

Explanation:

Given:

Bed debts increase = $6,800

Depericiation increase = $40,900

Tax-exempt life insurance = $3,450

Computation:

Assume tax rate = 21%

Taxable difference = 40,900 - 6,800

Taxable difference = 34,100

Deferred income tax expense = 34,100 × 21%

Deferred income tax expense = $7,161

6 0
3 years ago
A key use of a customer survey used in the operations consulting phase of problem definition is customer loyalty analysis. True
Marina86 [1]

Answer: True

Explanation: The operations consulting is the evaluation of the operational situation of the company, this helps us to improve the processes. If a customer survey is carried out, for example, regarding the quality of the products and the result is that raw materials or prices must be modified, if corrective measures are made, it is possible that customer satisfaction increases and therefore the fidelity.

8 0
3 years ago
Other questions:
  • The wireone company manufactures high-quality coated electrical wire in two departments, weaving and coating. materials are intr
    11·1 answer
  • Accounting is the language of business. Yes or no
    9·2 answers
  • What was a result of the Mexican-American War
    14·2 answers
  • You have a minor medical policy with a $500 deductible and an 80/20 co-insurance (co-pay) feature with a CAP of $15,000. If you
    13·1 answer
  • Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a pr
    9·1 answer
  • Auto insurance is needed primarily because of __________. (points : 2)
    11·1 answer
  • 25-6. Which of the following is a fundamental distinguishing feature of individual income taxes compared with payroll taxes? a.
    7·1 answer
  • A company has designed a new product and tested the prototype. what is the next step in product development?
    8·1 answer
  • Which of the following is an example of a monetary policy?
    7·1 answer
  • Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $475,000. To do s
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!