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3 years ago

If bonds with a face value of $ 206 comma 000are issued at 109,the amount of cash proceeds is ________.

Business

1 answer:

nekit [7.7K]3 years ago

5 0

Answer:

The cash proceeds is $224,540

Explanation:

The implication is that the bonds were issued at a premium. A bond issued at a premium is issued above its par value. This means that investors pay more than the face value for investing in the bonds. They are usually compensated with higher interest rates.

Bonds can also be issued at a discount. This happens when the issue price is less than the par value. The par value is the face value or nominal value. Bonds can be issued at a discount when the interest rate is lower than the yield rate.

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2 years ago

Euclid acquires a 7-year class asset on May 9, 2019, for $176,500 (the only asset acquired during the year). Euclid does not ele

tatiyna

<u>Solution and Explanation:</u>

<u>Calculation of Elucid’s cost of recovery deduction for the year 2019 and 2020 </u>

Cost of recovery deduction for 2019 = Assets value * depreciation rate for the first year

$=176500 * 14.29 \text { percent }$ ( it has calculated by using MACR table)

= $ 25221.85

Therefore, the cost of recovery of deduction in 2019 is $25221.85

<u>Cost of recovery deduction for 2020 = Assets value * depreciation rate for the first year </u>

$=\$ 176500 * 24.29 \text { percent }$ ( it has calculated by using MACR table)

= $42871.85

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3 0

3 years ago

Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700000 and cred

marshall27 [118]

Answer:

Adjusting entry Valli Company will make to record the bad debts expense:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

Explanation:

Valli Company uses the percentage of sales method for recording bad debts expense. Bad debts expense is calculated by using the following formula:

Bad Debts Expense = % Estimated Bad debts × Credit Sales

In Valli, Credit sales are $2,500,000 and % estimated is 1%.

Bad Debts Expense = 1% x $2,500,000 = $25,000

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

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3 years ago

The Office Supplies account had a balance at the beginning of year 3 of $4,000 (before the reversing entry). Payments for purcha

snow_lady [41]

Answer:

a. Office Supplies Expense a/c Dr. $750

Explanation:

We are provided that office supplies are recorded as an expense, in that case entry will be:

Office Supplies Expense A/c Dr.

To Cash A/c

After this, there is a valuation of closing balance of supplies in hand.

As per books = $4,000

As per inventory of supplies in hand = $4,750

The difference = $4,750 - $4,000 = $750

This will be recorded in Office supplies expense as in this account only the supplies are recorded.

Therefore correct option is

a. Office Supplies Expense a/c Dr. $750

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3 years ago

The UCC permits terms to be added into a contract or filled in as gap fillers; however, a contract between merchants cannot be e

podryga [215]

Answer: The answer is true

Explanation: the contract can not be enforce until both merchant agrees on a specified price on their agreement

The element of common law includes offer,acceptance and consideration. For the contract to be binding and legal both parties must have the capacity of entering into the contract. The contract of common law will be void if all element of common law formation do not exit.

6 0

3 years ago

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If bonds with a face value of $ 206 comma 000are issued at 109​,the amount of cash proceeds is​ ________.

If bonds with a face value of $ 206 comma 000are issued at 109,the amount of cash proceeds is ________.