2 years ago

When your tire blows out in the middle of a drive, you should

Business

2 answers:

loris [4]2 years ago

6 0

You should tap the breaks repeatedly and pull over

Damm [24]2 years ago

6 0

get out of the car and change it

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3 years ago

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Stells [14]

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:

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= $(\frac{redemption price}{carrying price} *face value) - carrying value$

= $(\frac{99}{100} *$400,000) - $388,000$

= $396,000 - $388,000

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