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Naddik [55]
3 years ago
15

On February 1, 2020, Blue Corporation issued 3,400 shares of its $5 par value common stock for land worth $26,700.Prepare the Fe

bruary 1, 2020, journal entry.
Business
1 answer:
mafiozo [28]3 years ago
7 0

Answer:

                                 Dr.  Cr.

February 1, 2020

Cash                      $26,700

Bond Premium                       $9,700

Bond Payable                        $17,000

Explanation:

Any amount paid / received over the face value of the bond is called premium of bond. It is due to that the stated interest rate of bond is higher than the market rate.

Face value of bond = 3,400 x $5 = $17,000

Premium on bond = $26,700 - $17,000 = $9,700

Cash received will be debited to cash account. Bond payable is a liabilities. Bond premium is also a liability account which will amortize over the bond life and reduce the interest payable amount of each period.

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For the most recent year, Camargo, Inc., had sales of $594,000, cost of goods sold of $255,330, depreciation expense of $67,900,
defon

Answer: 2.61 times

Explanation:

Times Interest ratio = Earnings before Interest and Tax / Interest

Earnings before Interest and tax = Sales - Cost of goods sold - Depreciation expenses

= 594,000 - 255,330 - 67,900

= $270,770

Net Income = Addition to retained earnings + Total dividends paid

Net income = 80,300 + ( 27,500 * 1.64)

= $125,400

Earnings before tax = Net Income/ ( 1 - T)

= 125,400/ ( 1 - 0.25)

= $167,200

Interest = Earnings before interest & tax (EBIT) - Earnings before tax (EBT)

= 270,770 - 167,200

= $103,570

Times Interest ratio = 270,770 / 103,570

= 2.61 times

5 0
3 years ago
Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 820 2 1,130 3 1,390 4 1,525 a
harina [27]

Answer:

$3,765.26

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash Flow in year 1 = $ 820

Cash Flow in year 2 = 1,130

Cash Flow in year 3 = 1,390

Cash Flow in year 4 = 1,525

I = 10

PV = $3,765.26

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0
3 years ago
A company must be able to evaluate an attractive opportunity in relation to its ______ competencies.
Tasya [4]
The answer is “existing”
4 0
3 years ago
Read 2 more answers
What are the four most important ways a firm becomes a​ monopoly? The four main reasons a firm becomes a monopoly​ are:
gladu [14]

Answer: A. the government blocks​ entry, control of a key​ resource, network​ externalities, and economies of scale.

Explanation:

3 0
3 years ago
Christine has obtalned a job pltching a product at a local state fair. Her job is to demonstrate cookware, highlighting Its feat
TEA [102]

Answer:

C

Explanation:

In marketing , it is believed that the values a product offers go a long way to influence the customer's decision about the product.

One aspect of customers value proposition (CVP) that Christine based her selling approach on is all benefits approach

All benefits approach is an aspect of CVP where the seller attempts to reveal every benefit attached to the product being sold . This explains why Christine had to go as far as cooking to prove the benefits of the cookware to customers.

Moreover , this particular approach needs less or little information about the customers and even competitors.

4 0
3 years ago
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