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lyudmila [28]
3 years ago
9

Which type of account is typically the most liquid

Business
1 answer:
timurjin [86]3 years ago
5 0
<span>Checking account
Savings account
Certificate of Deposit
<span>Exchange Traded Fund</span></span>
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Which of the following is NOT a liability?
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Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond
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Answer:

bonds payable       1,000,000 debit

loss on redemption    20,000 debit

        discount on bonds               10,000 credit

        cash                                  1,010,000 credit

--to record tyhe call of the bonds on September 30th--

Explanation:

par value of the bonds:    1,000,000

call premium:                   <u>       10,000</u>

total cash disbusements:  1,010,000

carrying value                      990,000

loss on redemption               20,000

<u>Notice: </u>It is a loss as we are paying more than the aliability is worth

discount/premium:

face value     1,000,000

carrying value 990,000

discount             10,000

We write off the bonds account: bond payable and bon discount

we debit the loss and credit hthe cash disbursments

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