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nirvana33 [79]
3 years ago
13

In 2005, ABC Company issued $100,000 of 20-year bonds at face value. Ten years later, in 2015, the company retired the bonds ear

ly by purchasing them in the open market at $101,000. The entry to record this transaction includes a:
Business
1 answer:
KiRa [710]3 years ago
3 0

Answer:

b. debit to Loss on Bond Retirement of $1,000.

Explanation:

Options are "<em> A.  credit to Gain on Bond Retirement of $1,000.  B.  debit to Loss on Bond Retirement of $1,000.  C.  debit to Bonds Payable of $101,000.  D.  credit to Cash of $100,000."</em>

<em> </em>

When a bond is retired before maturity a gain or loss may arise. In such case if the price paid to retire the bonds is greater the carrying amount of bonds then the company need to record a loss on retirement in the book. On the other hand if the price paid is less than the carrying amount of the bonds at retirement, then the company records a gain on retirement of bonds.

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3 0
4 years ago
Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer
Likurg_2 [28]

Answer:

a) Ownership rights cannot be easily transferred. - True

b) Ownership rights cannot be easily transferred.  - False

c) Owners have unlimited liability for corporate debts.  - False

d) Capital is more easily accumulated than with most other forms of organization.  - True

e) Corporate income that is distributed to shareholders is usually taxed twice.  - True

f) It is a separate legal entity. It has a limited life.  - False

g) Owners are not agents of the corporation. - True

Explanation:

A corporation is an organization established by the issuance (and purchase) of shares. It is identified as a separate legal entity from the owners and the liabilities of the owners is limited to the amount invested (in form of shares or stock). Ownership rights can easily be transferred through various means. One of such means is the sale of shares or stock in the secondary market.

The company pays company income tax on income earned while the shareholders (owners) also paid tax on dividend income. It has an unlimited life and is expected to continue to perpetuity.

The board of directors, managers of the company are the agents of the corporation acting on behalf of the owners.

5 0
3 years ago
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lubasha [3.4K]

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7 0
3 years ago
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A rodent species that once experienced much predation now has lower predation risk. As a consequence, the mortality of maturing
USPshnik [31]

Answer:

A shift to later reproduction with benefit of higher fecundity, because of their smaller size.

Explanation:

When an organism faces high predatory risk they tend to adapt in order to survive predation. Generally the smaller an animal is the lower it's mortality.

So as the rodent has reduced predation it must have reduced its size.

The rodent will also be involved in reproductive activity that will increase it fecundity. That is a later reproduction with benefit of higher fecundity.

In a bid to survive extinction the rodent will have developed a strategy to have high reproduction of offspring and smaller size that promotes lower mortality.

7 0
3 years ago
Which Of the following examples below, which is not an example of scarcity?
inessss [21]

The puppy mill that was shut down is not an example of scarcity. Scarcity means "lacking" whether of time, money, or resources. The puppy mill doesn't create scarcity, in fact it created a surplus of dogs available for adoption. So the answer is B.

4 0
3 years ago
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