Answer:
Please see journal entries below
Explanation:
The entries below are made in the books of Farmland Corporation, the issuer of the bond.
Upon redemption, journal entries would be as follows.
Debit: Bond Account $396,000 (cash paid to bond investors)
Credit: Cash/Bank Account $396,000 (cash paid to bond investors)
Debit: Profit/Loss Account $8,000 (premium paid over carrying value of bond, calculated below: )
Credit: Bond Account $8,000 (premium paid over carrying value)
Premium over carrying value is calculated as follows:
Redemption value - carrying value
= 
=
= $396,000 - $388,000
= $8,000
Answer: C. The worldwide economic situation
Explanation:
https://www.studystack.com/flashcard-2772205
Answer:
The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:
Debit Cash $162,000
Credit Accounts Receivable $162,000
The company did not record revenue because they did not sell the harvester. This was only the advance payment.
Answer:
Total contribution margin= $1,220,000
Explanation:
Giving the following information:
Purchase price= $1.8
Selling price= $14
Number of untis= 100,000
<u>First, we will determine the unitary contribution margin:</u>
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 14 - 1.8
Unitary contribution margin= $12.2
<u>Now, the total contribution margin:</u>
Total contribution margin= 100,000*12.2
Total contribution margin= $1,220,000
Answer:
D) The firm receives more than 70 percent of its income from rents and other passive sources.
Explanation:
Many small corporations change from C corporations to S corporations since S corporations eliminate the double taxation issues. Although S corporations have some limitations specially regarding the number of stock owners (currently limited to 100) and their nationality or legal residence status. They can only issue one type of stock which limits their ability to increase capital. S corporations cannot have more than 70 percent of their income from passive sources (this includes rent).
