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Elanso [62]
3 years ago
13

Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record the sale of these bonds on Ma

rch 1, 2022.
Business
1 answer:
mestny [16]3 years ago
8 0

Answer:

Par value of bonds = $257,000

Issue price of bonds = 99

Cash receipts from issue of bonds = 257,000 x 99%  = 254,430

Discount on bonds payable = Par value of bonds - Cash receipts from issue of bonds

= 257,000-254,430

= $2,570

Date          Account Titles and Explanation          Debit           Credit

March 1                    Cash                                         $254,430  

                     Discount on bonds payable              $2,570  

                           Bonds payable                                                $257,000

                  (To record issuance of bonds)  

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8 0
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s a state that exists whenever an entity can survive or continue its activities without external assistance or international tra
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Autarky is a state that exists where the entity can survive with no external help or the global trade.

<h3>What is trade?</h3>

Trade is the scenario when the nation engaged in acquiring or selling goods or providing services from or to the outside nations.

  • Autarky is the situation of being self independent or exercising the self rule. It is being applied to the political states, systems of economy,  communities or states of the nation.
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Therefore, the definition provided in respect of the term Autarky.

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2 years ago
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This can be due to the method of allocating cost.

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In the given scenario a division in a decentralised company earned the largest amount of income from operations, yet it was the least profitable.

This can be as a result of the cost allocation method the company uses.

If the company uses a cost allocation method where cost from other division is paid for by the division with largest income. The result will be that the other divisions that generate less income will appear to be more profitable.

The remedy for this is to use activity based costing. Where cost is allocated based on the level of activity of a division.

That way divisions will only pay for cost associated with their activity

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Hiring former employees from other companies and assessing their knowledge is not a typical/common strategy in order to obtain benchmarking data. Not many companies would like to rehire and if they ever do, it will be hard to use the benchmarking data since the former employee's company might be totally different from yours. Remember that competitive benchmarking is only done when you want to compare with your<u> competitors in the same field of business.</u>

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