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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

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From the given information, The demand function is (P) = -x/8 + 600. The demand function illustrates the causal connection between the quantity of a commodity that is demanded and its numerous determinants.

The demand function is given by P - P1 = m(x-x1)

Since, m = -10/80    (i.e. additional 80 tablets every $10)

P1 = $250, x1 = 2800

So, P - 250 = -1/8 (x - 2800)

P = -1/8 + 350 +350

P = -x/8 + 600

Hence, the demand function (P) = -x/8 + 600

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1 year ago
Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not a
blagie [28]

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A promise to deliver a deed

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'Strict performance' is required in contracts where the terms are stated in express terms and the standards are very high. A 'deed' is such a contract because it is a document specifying the legal rights of a person or the ownership of a property. It requires the signatures of the two parties. Therefore, strict performance and adherence to the contractual deed are required.

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Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2
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Answer:

Answer:

Growth rate (g) = n-1√(<u>Latest dividend)</u>     - 1

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                         = 3√(1.1318)  -1  

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