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steposvetlana [31]
3 years ago
14

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on Decembe

r 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

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Ahat [919]

Answer:

C

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve

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3 years ago
Felice bought a duplex apartment at a cost of $165,000. Her mortgage payments on the property are $1,520 per month $666 of which
ivanzaharov [21]

The Rent per apartment Felice should charge is the PITI plus expected profit, (where PITI is principal, interest, taxes, and insurance) which is <em>$8,516</em>.

Data and Calculations:

Cost of a Duplex Apartment = $165,000

Monthly mortgage payments = $1,520

Deductible mortgage payment = $666

Annual Real Estate Taxes = $1,752

Annual Insurance costs = $1,464

Annual Maintenance costs = $1,230

Annual profit expected = $2,550

Rent to charge = PITI + Profit

= $8,516 ($1,520 - $1,752 - $1,464 - $1,230 + $2,550)

Thus, the Rent per apartment Felice should charge is the PITI plus expected profit, (where PITI is principal, interest, taxes, and insurance) which is <em>$8,516</em>.

Learn more about PITI here: brainly.com/question/1395659

8 0
3 years ago
Denny is the owner of a popular ice-cream parlor. He also has a retail distribution network in the form of ice-cream vans that g
AysviL [449]

This is an example of "Equilibrium in business"

<u>Explanation:</u>

Equilibrium is the state of balance between market supply and demand, and as a consequence, prices are stable. Over-supply of goods or services generally causes prices to fall, leading to higher demand. The offers and demand balance effect results in a stable state. Here as Denny have good retail distribution network which allow him to supply across city and maintain lower price due to good availability of ice creams. For Denny reaching to the customers was easy via vans, thus his ice-creams had lower price.

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3 years ago
Monument Health buys $400,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Monu
Anna007 [38]

1. The amount of the free trade credit that Monument Health obtains from Cardinal Health is <u>$400,000.00</u>.

2. The total amount of trade credit offered by Cardinal is <u>$404,000.00</u>.

3. The approximate annual cost of the costly trade credit is <u>72%</u>.

4. <u>No.</u> Monument Health should not replace a portion of the trade credit with a bank loan.

5. If the bank loan is used, the trade credit should be replaced by $133,333.00.

<h3>What is trade credit?</h3>

Trade credit is a business arrangement that allows the buyer to buy goods in exchange for later payment.

Giving trade credit is costly to the seller but profitable to the buyer, especially with the offer of cash discounts.

<h3>Data and Calculations:</h3>

Gross prices = $400,000

Terms of trade = 1/5, net 15

Bank loan = $400,000

Loan interest rate = 12%

Days per year = 360 days

Cost of Trade Credit for 5 days = $4,000.00 ($400,000 x 1%)

Annualized cost = 72% (1%/5 x 360)

Cost of bank loan for 10 days = $1,333.33 ($400,000 x 12% x 10/360)

Learn more about trade credit and cash discounts at brainly.com/question/14883253

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What type of monopoly is based on ownership of a manufacturing method or other scientific process?
Natalka [10]

Answer:

Technological monopoly

Explanation:

3 0
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