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igor_vitrenko [27]
3 years ago
11

On June 30, 2017, Prouty Co. had outstanding 9%, $5,000,000 face amount, 10-year bonds that pay interest semi-annually on June 3

0 and December 31. The unamortized balance in the bond discount account on June 30, 2017 was $200,000. On June 30, 2017, Prouty acquired all of these bonds at 101 and retired them. What amount of gain or loss would Prouty record on this early extinguishment of debt
Business
1 answer:
xxMikexx [17]3 years ago
6 0

Answer: $250,000 loss

Explanation:

The bonds' net carrying amount is

=($5,000,000 - $200,000)

= $4,800,000.

The loss on extinguishment is

=($5,000,000 X 1.01) - $4,800,000

= $250,000.

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OleMash [197]
The answer would be criminal
8 0
3 years ago
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Moreno Company purchased equipment for $450,000 on January 1, 2010, and will usethe double-declining-balance method of depreciat
Mashutka [201]

Answer:

Depreciation expense 2012= $31,851.85

Explanation:

Giving the following information:

Moreno Company purchased equipment for $450,000 on January 1, 2010. It is estimated that the equipment will have a 3-year life and a $20,000 salvage value at the end of its useful life.

To calculate the depreciation expense under the double-declining balance, we need to use the following formula for each year:

Annual depreciation= 2*[(book value)/estimated life (years)]

2010= 2*[(450,000 - 20,000)/3]= 286,666.67

2011= 2*[(430,000 - 286,666.67)/3]= 95,555.55

2012= 2*[(143,333.33 - 95,555.55)/3]= $31,851.85

8 0
3 years ago
Ernest is 42 years old and has been out of work for two months. he lost his position as a program manager when his company merge
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<span>Ernest is experiencing the effects of loss of status following the termination.
Once he lost his job, where he was respected as a good worker, he lost that status as well. Now, he is unemployed, and even though he has enough money to sustain himself, he isn't considered part of the workforce anymore, which obviously depressed him a bit, even though he doesn't know it yet.</span>
3 0
3 years ago
Direct and Indirect Costs Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,
pychu [463]

Answer:

a) direct manufacturing cost    $220,000

b) indirect manufacturing cost $130,000

2 a) the manufacturing department cost will be of $350,000

  b) zero as direct material, labor and overhead can be determinated.

3) a) $40,000

  b) $50,000 advertizement.

4) No as we can set the object cost to determinate the direct and indirect cost of the adminsitrative expenses.

Explanation:

a) The direct manufacturing cost will be the variable manufacturing cost linked to the unit cost:

Materials $7 + Labor $4 = $11 per unit

20,000 units x $11.00 = $ 220,000

b) indirect manufacturing cost will be the overhead.

20,000 x ($1.5 + $5) = 130,000

2)

a) Materials, labor and overhead.

which totals for 350,000

2 b) all the manufacturing cost are traceable so zero.

3)

fixed selling

20,000 x 3.5 = 70,000

less 50,000 advertizement = 20,000

variable sales:

commisions $1 x 20,000 + 20,000 = 40,000 direct cost (sales persons)

b) the indirect cost will be the advertizement as cannot be linked directly to the sales person cost.

3 0
3 years ago
Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30, 20X8:
Advocard [28]

Answer:

$2,289,500

Explanation:

Preparation of the schedule to show the amount of revenue that should be reported by Gilbert’s general fund on the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 20X8

Gilbert City

REVENUE REPORTED by the General Fund

For the Year Ended June 30, 20X8

Property tax revenue $1,862,000

[$2,000,000-$100,000-($2,000,000-$100,000)*2%)]

Interest revenue on advance $1,500

Grant revenue used to acquire computer equipment $235,000

Sales tax revenue $125,000

Liquor license revenue $66,000

Total revenue reported $2,289,500

Therefore the amount of revenue that should be reported by Gilbert’s general fund on the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 20X8 is $2,289,500

3 0
2 years ago
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