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
DochEvi [55]
3 years ago
7

Farmland Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was

$388,000, the company redeemed the bonds at 99. Prepare the entry to record the redemption of the bonds
Business
1 answer:
Stells [14]3 years ago
3 0

Answer:

Please see journal entries below

Explanation:

The entries below are made in the books of Farmland Corporation, the issuer of the bond.

Upon redemption, journal entries would be as follows.

Debit: Bond Account $396,000 (cash paid to bond investors)

Credit: Cash/Bank Account $396,000 (cash paid to bond investors)

Debit: Profit/Loss Account $8,000 (premium paid over carrying value of bond, calculated below: )

Credit: Bond Account $8,000 (premium paid over carrying value)

Premium over carrying value is calculated as follows:

Redemption value - carrying value

= (\frac{redemption price}{carrying price} *face value) - carrying value

=(\frac{99}{100} *$400,000) - $388,000

= $396,000 - $388,000

= $8,000

You might be interested in
John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA taxes are 7.65% of gross ea
Anastasy [175]

Answer:

The net pay for John Jansen is $2894

Explanation:

For calculating the net pay for John Jansen we have to subtract all the FICA taxes and federal income taxes and also state income taxes, with authorized voluntary deductions also being subtracted from the gross earnings .

Given information -          Gross earning                         = $4000

                                         FICA taxes                                = 7.65%

                                         Federal income taxes               = $675

                                         State income taxes                    = 3%

                                       Authorized voluntary deductions = $5

One important to remember here is that FICA taxes and State taxes would be calculated on the gross earnings of John

FICA taxes = 7.65% of $4000

                  = .0765 x $4000

                  = $306

State taxes = 3% of $4000

                   = .03 x $4000

                   = $120

NET PAY = gross earnings - FICA tax - state tax - federal income tax -

                                                         authorized voluntary deduction

   = $4000 - $306 - $120 - $675 - $5

   = $2894

 

7 0
3 years ago
The goals of __________ are to determine the work load at which systems performance begins to degrade and to identify and elimin
kondor19780726 [428]
Volume testing does these things
5 0
3 years ago
Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal
kiruha [24]

Answer:

d

Explanation:

7 0
2 years ago
A company’s retained earnings increased $375,000 last year and its assets increased $973,000. The company declared a $79,000 cas
Alex Ar [27]

Answer:

C. $454,000.

Explanation:

We know that

The ending balance of retained earnings = Opening balance of retained earnings + net income - dividend paid

$375,000 = $0 + net income - $79,000

So, the net income would be

= $375,000 + $79,000

= $454,000

The ending balance of retained earnings - Opening balance of retained earnings is also known as increase in retained earning

6 0
3 years ago
Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 u
iren2701 [21]

Answer:

Estimated manufacturing overhead rate= $77 per direct labor hour

Explanation:

Giving the following information:

Production:

Product A: 1,850 units

Product B: 1,250

Hours required:

Product A: requires 0.3 direct labor-hours per unit

Product B: requires 0.6 direct labor-hours per unit.

The total estimated overhead for the next period is $100,485.

First, we need to calculate the total amount of direct labor hours required:

Total direct labor hours= 0.3*1,850 + 0.6*1,250= 1,305 hour

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 100,485/1,305= $77 per direct labor hour

4 0
3 years ago
Other questions:
  • An advertiser wants to create ads that target potential customers in california. which targeting method should this advertiser u
    14·1 answer
  • To reduce the potential for litigation, the keys to dealing with non-performing employees by health leaders are _____________, c
    15·1 answer
  • Assume the U.S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, an
    5·1 answer
  • Pink Polka Fashion Inc., a multinational clothing brand, has plans to expand in the European Union (EU) marketplace. In order to
    13·1 answer
  • Enrollment in a particular class for the last four semesters has been 122, 128, 100, and 155 (listed from oldest to most recent)
    14·1 answer
  • What will most likely cause a lender to deny credit?
    6·1 answer
  • Which two of the following are long-term sources, of finance?
    5·1 answer
  • A Nike Hoodie has a retail price of $99.00 and it costs the retailer $49.50. What is the mark-up
    5·1 answer
  • URGENT!!!
    8·1 answer
  • The most important labor force issue for developed economies is their _________ populations. global diverse aging all of these
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!