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nadezda [96]
2 years ago
10

On October 1, 2020 Bonita Industries issued 5%, 10-year bonds with a face value of $8090000 at 103. Interest is paid on October

1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable. credit of $202250 to Interest Payable. credit of $7847300 to Bonds Payable. debit of $242700 to Discount on Bonds Payable.
Business
1 answer:
V125BC [204]2 years ago
6 0

Answer:

a credit of $242700 to Premium on Bonds Payable

Explanation:

Based on the information given The journal entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable which is calculated as:

Premium on Bonds Payable=[($8090000*103%)-$8090000

Premium on Bonds Payable=8,332,700-$8090000

Premium on Bonds Payable=$242700

Therefore The entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable

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Quantity Discount: Consider a quantity discount problem where the yearly demand for the product is 1,286 units, the ordering cos
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Answer:

EOQ = 72 units

Explanation:

Annual demand D = 1,286 units

Ordering cost S = $47

Holding percentage I = 35%

So, 0 - 199 units, the unit cost is $66

EOQ = \sqrt{2DS/PI}

EOQ = \sqrt{(2 * 1286 * 47)/(66*0.35)}

EOQ = \sqrt{5233.07}

EOQ = 72.33998613

EOQ = 72 units

3 0
3 years ago
Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Total Company D
anzhelika [568]

Answer:

B

Explanation:

6 0
3 years ago
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the proces
sergey [27]

Answer:

The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23

Explanation:

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The new expected portfolio return =

rp = 0.1 × 13% + 0.9 × 11%

rp = 0.1 × 0.13 + 0.9 × 0.11

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The new expected portfolio beta =

bp = 0.1 × 1.50 + 0.9 × 1.20

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7 0
3 years ago
The berry patch has sales of $438,000, cost of goods sold of $369,000, depreciation of $37,400, and interest expense of $13,800.
12345 [234]

Times interest earned ratio is calculated with the help of following formula:


Times interest earned ratio = Income before interest and tax / Interest


Income before interest and tax is calculated with the help of following formula:

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Income before interest and tax = 438000-369000-37400 = 31,600


Hence, Times interest earned ratio = Income before interest and tax / Interest = 31600 / 13800 =<u> 2.29 times</u>



4 0
3 years ago
A consumer maximizes total utility from a given amount of income when the
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