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3 years ago

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of

Business

1 answer:

borishaifa [10]3 years ago

8 0

Answer:

c. interest paid over the life of the bond minus the amount of premium at sale

point.

Explanation:

when bonds are issued at premium the total interest cost of the bonds over the life of the bonds is equal to the amount of interest paid over the life of the bond minus the amount of premium at sale point.

From below journal entry you can see that, When interest payment is made cash is credited full amount but interest is debited after deducting amortised premium.

Journal entry if bonds are issued at premium

cash xx

Bonds Payable xx

Premium on bonds payable

Interest Expense xx

Preminum on bonds payable xx

cash xx

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Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 bil

KiRa [710]

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a failed diversification effort.

Explanation:

Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:

- failing to integrate acquisitions

- unable to understand how the acquired organization’s assets would fit with their own lines of business

- paying high premium for the target's common stock

- not acting in best interest of shareholders

The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.

8 0

3 years ago

Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capita

Cloud [144]

Answer:

false

Explanation:

Paid-in capital is the amount of money or any other form that stockholders pay to the corporation for capital stock. it is considered as an important part of the equity in the business. paid-in capital can be paid for common or preferred stock.

it is considered a way through which stockholders can represent their funds by showing the amount of stock they have purchased

6 0

3 years ago

Haberdash inc. last year reported sales of $12 million and an inventory turnover ratio of 3. the company is now adopting a just-

Sindrei [870]

Sales = $12,000,000

Inventory Turnover ratio (old) = 3
Inventory Turnover ratio (new) = 7.5
Freed up Cash = ?
So, let’s find out the freed up cash
 We know level of inventory are calculated as follows;
Inventory = Sales Inventory turnover ratio
Calculating $ value of old inventory
 Inventory Old=$12,000.0003
 =$7.5,000,000
 Calculating $ value of New inventory
 Inventory New=$12,000,0075
 =$3,000,000
 The freed up cash would be=Old Inventory – New Inventory
 =$7.5,000,000 - $3,000,000
=$4.5,000,000

6 0

3 years ago

Read 2 more answers

Lighting design personnel must: A. Understand environmental, cost, and associated benefits of energy-efficient lighting B. Recog

Setler79 [48]

Answer: All of the above

Explanation:

The Lighting Design Personnel is in charge of the designing, the installation, and the operation of lighting and every other special electrical effects.

Such person must understand environmental, cost, and associated benefits of energy-efficient lighting. Also, he or she must be bake to recognize when specialized knowledge is necessary and also estimate energy cost savings

Therefore, the correct option is all of the above.

6 0

3 years ago

Required information Use the following information for the Exercises below. Skip to question [The following information applies

rosijanka [135]

Answer:

See

Explanation:

1. Break even point in units

= Fixed cost / Selling price per unit - Variable cost per unit

Given that

Fixed cost = $600,000

Selling price per unit = $375

Variable cost per unit = $300

Break even point in units = $600,000 / ($375 - $300)

= $600,000 / $75

= 8,000 units

2. Break even in sales

= Fixed cost / Selling price unit - Variable cost per unit × Selling price per unit.

=[ $600,000 / ($375 - $300) ] × $375

= 8,000 × $375

= $3,000,000

6 0

2 years ago