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Firlakuza [10]
3 years ago
9

Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying valu

e of the bonds at the redemption date is $471,250. The entry to record the redemption will include a a. credit of $28,750 to Loss on Bond Redemption. b. credit of $28,750 to Discount on Bonds Payable. c. debit of $38,750 to Gain on Bond Redemption. d. debit of $10,000 to Premium on Bonds Payable.
Business
1 answer:
irga5000 [103]3 years ago
6 0

Answer: B. credit of $28,750 to Discount on Bonds Payable

Explanation:

From the question, we are informed that the face value of the bond is $500,000 while the bond's carrying value is $471,250. The bonds were issued at a discount since the carrying value is less than the face value of the bond.

At the time that the bonds was retired, the unarmotized discount on bond payable will be:

= $500,000 - $471,250

= $28,750

Therefore, the entry to record the redemption will include a credit of $28,750 to Discount on Bonds Payable.

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Answer:

Explanation:

The lease rent that depends  upon CPI rate and operating expenses has more risk than normal increase in value rent alternatives. Reason being that CPI can be increased or decreased in future and this will affect the builder's cashflow.

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The risk level of all the four alternatives is shown below

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Answer:

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Explanation:

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3 years ago
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Semiannual means an event that happens twice a year, every six months. In business surroundings, semiannual is something that is recurring like payments or an interest fee.

If you want to calculate what your investments may be really worth primarily based on returns that compound semiannually, first, divide the yearly fee of going back by way of 100 to convert it to a decimal. 2nd, divide the once-a-year price as a decimal by way of 2 to transform it into a semiannual fee for going back.

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