All categories

3 years ago

For each situation, prepare the appropriate journal entry for the redemption of the bonds.

Business

1 answer:

Arada [10]3 years ago

5 0

Answer and Explanation:

The journal entries are given below:

On Apr. 30

Bonds payable $124,000

Loss on redemption of bonds( bal fig) $18,228

Discount on Bonds payable($124,000 - $111,972) $12,028

Cash ($124,000 × 1.05) 1,30,200

(Being redemption of bonds at 105 is recorded)

On Jun. 30

Bonds payable $162,000

Premium on Bonds payable($174,960 - $162,000) $12,960

Gain on redemption of bonds ( bal fig) $14,580

Cash($162,000 × .99) $160,380

(Being redemption of bonds at 98 is recorded)

You might be interested in

Justification for the method of determining periodic deferred tax expense is based on the concept ofa. Matching of periodic expe

sukhopar [10]

Answer:

c. Recognition of assets and liabilities

Explanation:

Determining periodic deferred tax is a consequence of difference of tax as per book profit and profit as per income tax norms.

Thus recognition of deferred tax asset or liability is matching of assets and liabilities, as when we recognize deferred tax asset as in the condition that the tax payable as per income tax is less and as per books is more than deferred tax asset arises.

In this case we recognize the asset, then against that asset recognized is income tax payable, further income tax payable is set off against this asset and income tax expense.

6 0

2 years ago

At the beginning of 2018, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2018, the

Colt1911 [192]

Answer:

The answer is: Credit record to Accounts Receivable account

Explanation:

The Accounts Receivable account is an asset, usually it should be a current asset since it should be collected within a one year period. When assets increase, a debit record should be made. But in this case, the asset is decreasing since bad debts reduce the Accounts Receivable account. When an asset decreases, a credit record should be made.

6 0

2 years ago

3 Points

Maslowich

Answer:

C. An auction market

Explanation:

Option A is wrong because merchant wholesalers purchase any products directly from the manufacturers and sell those to the retailers, or consumers. In that case, buyers and sellers do not need to come together to complete a transaction.

Option B is incorrect as the warehouse club is recognized as a retail store where customers can purchase bulk products to reduce the expenses. In that case, only sell is the motive.

Option D is wrong because drop shippers cannot hold the inventory to their stocks. Therefore, customers and manufacturers will not come together.

<u><em>Option C</em></u> is correct because, in an auction market, the buyer and the seller have to come at the same time to complete a transaction. In that market, the buyer will directly negotiate with the seller to purchase a product or something else.

5 0

3 years ago

Read 2 more answers

If you scored high on a questionnaire in the category of medicine,in which of the following could you be interested?select all t

Ray Of Light [21]

The correct answer would be B none of the others are relevant

6 0

3 years ago

Read 2 more answers

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela

8_murik_8 [283]

Answer:

1) Direct Materials

Price Variance = $138,474 (F)

Usage Variance = $82,800 (F)

2) Direct Labor

Direct Labor Price = $9,102 (F)

Direct Labor Usage = $4,800 (F)

Explanation:

Material Price Variance = ( Standard price - Actual price) * Actual Quantity purchased

= ($20 - $5.30) *9,420

= $138,474 (F)

Actual Price = $49,926/9,420 = $5.30

Material Usage Variance = ( Standard Quantity - Actual Quantity ) * Standard Price

= ( 11,960 - 7,820 ) $20

=$82,800 (F)

Standard Quantity = 2.60 *4,600 = 11,960

Actual Quantity used = 0+9,420-1,600 = 7,820

Direct Labor price Variance = ( Standard Rate - Actual Rate) * Actual Hours worked

= ($16-$12.30) * 2,460

= $9,102 (F)

Actual time = 61.50*40 = 2,460

Usage variance = ( Standard time - Actual time ) * Standard rate

= ( 2,760 - 2,460) $16

= $4,800 (F)

Standard time = 0.60 *4,600 = 2,760

3 0

3 years ago