1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marusya05 [52]
2 years ago
9

The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 11.75% bonds having a face amount of

$91.5 million. The bonds had been issued in 2013 and had a remaining discount of $4.5 million at December 31, 2020. On January 1, 2021, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102.
Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
Vanyuwa [196]2 years ago
3 0

Answer:

January 1, 2021

Bonds Payable                                           $91.5 million Dr

Loss on Redemption-Bonds Payable      $6.33 million Dr

         Discount on Bonds Payable                    $4.5 million Cr

         Cash                                                            $93.33 million Cr

Explanation:

To calculate the loss on redemption of the bonds, we first need to calculate the value at which bonds have been redeemed. The bonds are redeemed at 102 which means they are redeemed at 102% of the face value.

Redemption amount = 91.5 million * 102% = 93.33 million

The bonds have a carrying value on redemption date of,

Carrying value = Face Value - Discount

Carrying value = 91.5 - 4.5 = $87 million

The loss on redemption of bonds is = 93.33 - 87 = $6.33 million

You might be interested in
Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the product
Alina [70]

Solution :

                                                       Standard               Deluxe          Total

Total cost of direct material           245000               155000        400000

Total cost of direct labor                650000               250000       900000

Total machine hours                       150000                100000       250000

Total setups                                         75                        125             200

Total material pounds                     18000                  9000            27000

Total direct hours of labor               6000                   3750             9750

No. of units shipped                       20000                    5000            25000

a). Cost drivers rates :

Receiving                               150                    Percentage of materials(dollars)  

                                    $\left(600000 \times \frac{100}{400000}\right)$

Manufacturing                        13.20                Per machine hour

                                              $\frac{3300000}{250000}$

Engineering                          11000                  Per set up

                                              $\frac{2200000}{200}$

Machine set up                        4500                per set up

                                               $\frac{900000}{200}$

Shipping                                     40                   per unit

                                             $\frac{1000000}{25000}$

b). Units product cost

                                         Standard                                      Deluxe

Direct cost                        895000                                      405000

                                (245000+650000)                      (155000+250000)  

Overhead :

Receiving                         367500                                       232500

                                  (245000 x 150%)                         (155000 x 150%)

Manufacturing                1980000                                      1320000

                                   (150000 x 13.2)                             (100000 x 13.2)

Engineering                    825000                                         1375000

                                    (75 x 11000)                                   (125 x 11000)

Machine set up              337500                                           562500

                                     (75 x 4500)                                     (125 x 4500)

Shipping                         800000                                             200000

                                      (20000 x 40)                                   (5000 x 40)

Total costs                   5205000                                             4095000

No of units                     20000                                                5000

Unit cost                       260.25                                                   819

                               (5205000/20000)                               (4095000/5000)

7 0
3 years ago
Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes
Bas_tet [7]

Answer:

The answer is C.

Explanation:

Necessity goods are the goods or services that a consumer will continue buying whether income falls or the price rises. This type of goods are considered essential. The are not sensitive to price. To Jane, Diet coke is a necessity because she takes it everyday.

While luxury goods are goods that are really not essential. They are owned or bought for the sake of showing wealth or affluence. To Jane, gourmet cheese is a luxury good.

4 0
3 years ago
What are some strategies that you can use when agreeing to a contract to protect yourself?
motikmotik
You can make sure that all your stuff is locked and you can always keep weapons
5 0
3 years ago
Blue Company produces Trivets. Based on its master budget, the company should produce 13,000 Trivets each month, working 14,500
notsponge [240]

Answer:

14.277 hours.

Explanation:

Please see attachment.

4 0
3 years ago
Two​ firms, A and B​, must each choose either a low price or a high price for their product. The payoff matrix shows the profit
ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each​ other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0
3 years ago
Other questions:
  • GAME DESIGN HELP!!! WILL MARK BRAINLIEST
    7·1 answer
  • Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000 note. 1. On what date does
    6·1 answer
  • Given the following information regarding an income producing property, determine the internal rate of return (IRR) using levere
    9·1 answer
  • The objective on your resume should state your long term career goals. True or false
    7·1 answer
  • What is an example of secondary data?
    6·1 answer
  • A(n) _____ is a firm that delivers a software application, or access to an application, by charging a usage or subscription fee.
    11·1 answer
  • Recording Transactions Affecting Stockholders’ Equity
    8·1 answer
  • Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or services to create exchan
    15·1 answer
  • Williams Company purchased a machine costing $25,000 and is depreciating over a 10-year estimated useful life with a residual va
    6·1 answer
  • What is a LinkedIn InMail?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!