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nirvana33 [79]
2 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]2 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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In order to help their employees move from one job to another, and in order to meet the challenges of a global economy, corporat
lilavasa [31]

In order to help their employees move from one job to another, and in order to meet the challenges of a global economy, corporations must offer retraining program as part of their employee development programs.

To meet the challenges of a global economy and to help employees move from one job to another corporations must offer retraining as part of employee development programs. Training and development is considered vital because it allows employers to pinpoint skills and knowledge they want in their employees. These trainings not only educate the employees but also provide updates on existing skills to increase productivity. Every business has different needs to retain their employees to meet their internal and external challenges.

These trainings to retain the employees are proved to be fruitful

  1. When there is a talent gap in your organization.
  2. When improvement is required in certain areas.
  3. When training becomes essential in certain programs.

Therefore corporations must offer retraining to help employees move from one job to another and meet global challenges.

You can learn more about retraining at

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6 0
1 year ago
If the price elasticity of demand coefficient is 4, then:a. a price increase of 1% will reduce quantity demanded by 1/4%b. A pri
andrew11 [14]

Answer:

A price increase of 1% will reduce quantity demanded by 4%

Explanation:

If the price elasticity is 4 then, this demand is highly responsive to changes in price.

So it will decrease by more than the price increase.

we must remember that the price-elasticity is determinate  like:

↓QD / ΔP   = price-elasticity

if the cofficient is 4 then a 1% increase in price:

↓QD / 0.01 = 4

↓QD = 0.04

Quantity demanded will decrease by 4%

5 0
3 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
snow_tiger [21]

Answer: Exclusive distribution

Explanation:

Exclusive distribution is defined as the agreement in which a parties involved are manufacturer and distributor.It states that the particular distributor cannot sell their service or item to any other party .It binds the agreement that product can be sold to the exclusive distributor.

According to the situation mentioned in the question, designers are asked for exclusive distribution by the retailer.Retailer does not wants that design of jewelry to be sold through any other source or retailer for effective sale.Thus agreement upon this matter is proposed by the retailer.

6 0
3 years ago
Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
Svetlanka [38]

Answer:

D) all of the above

Explanation:

First find the present value for each alternative  using PV of perpetual cashflow formula;

PV = CF / rate

CF = 50

If rate= 5%;

PV = 50/0.05 = $1,000

If rate = 2%;

PV = 50/0.02 = $2,500

With these two calculations, we see that;

-the bond price increased by $1,500

-you could sell this bond at a capital gain, meaning you can sell it a higher price that what you bought it for.

-at an interest rate of 2%, the speculative demand for money would increase

Hence , all these choices are correct!

5 0
3 years ago
Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $260,000. All sales were on ac
den301095 [7]

Answer: That class ain't for you vro.

Explanation:

7 0
3 years ago
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