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BARSIC [14]
3 years ago
14

Recording the Early Retirement of a Bond Issued at a Premium (with Premium Account) LO10-7 Several years ago, Cyclop Company iss

ued bonds with a face value of $1,000,000 for $1,140,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,037,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.
Business
1 answer:
Vanyuwa [196]3 years ago
3 0

Answer:

Date   Account Titles and Explanation        Debit            Credit

           Bonds payable                              $1,000,000

           Loss on retirement of bond          $13,000

           [$1,050,000 - $1,037,000]

           Premium on bond                          $37,000

                    Cash (1,000,000*105%)                                $1,050,000

(Record the retirement of the bonds, using a premium account)

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Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.82 percent, a par value of $2,000 pe
balu736 [363]

Answer:

3.1781

Explanation:

here you go. I hope thats correct.

3 0
3 years ago
Which of the following is true of economies in the base of the global economic pyramid? a. They are composed of developed econom
satela [25.4K]

Answer:

The answer is: D) They attract the largest FDI from MNEs. If you consider FDI´s share of the country´s GDP

Explanation:

The countries that are located in the base of the global economic pyramid are all underdeveloped and poor countries, so no North America, Europe, Japan, China, or Australia. If you consider the total nominal amount of Foreign Direct Investment (FDI) by Multinational Enterprises (MNEs) in the world, the countries that receive the most of them usually have large economies or high GDP per capita (only Brazil is an exception) like the US, China, Belgium, Canada, France, Russia, Singapore, etc.

But if you consider FDI as a percentage of a country´s GDP the list of receiving countries varies a lot. The following is the list of the 10 countries with the greatest share of FDI to GDP in 2011 (UN 2011 report)

  1. Liberia
  2. Mongolia
  3. Hong Kong SAR (China)
  4. Sierra Leone
  5. Luxembourg
  6. Singapore
  7. Congo republic
  8. Belgium
  9. Chad
  10. Guinea

In this list you can find 6 countries that are extremely poor but very rich in natural resources (in this case minerals). So if consider the relative size of FDI in those economies, then it´s huge. Most FDI done on poor countries is directed to mining or oil corporations.

3 0
4 years ago
What is strategic prospecting and what is each stage in the strategic prospecting process?
elixir [45]

Answer:

A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers

Explanation:

1) Generating Sales Leads

-Qualifying sales leads

2) Determining Sales Prospects

3) Prioritizing Sales Prospects

4) Preparing for Sales Dialogue

5) Remaining stages in the trust-based sales process

8 0
3 years ago
3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of 717 million. Assume 3M pu
Lesechka [4]

Answer:

4.8 times

76 days

Explanation:

Inventory Turnover is the numbers of times that an inventory is sold in a period. It shows that is there any excessive inventory available in respect to the current sales level.

Formula for Inventory Turnover

Inventory Turnover = Inventory Used during the year / Average Inventory

Inventory Turnover = 3,784 million / ( ( $855 + $717 ) / 2 )

Inventory Turnover = 3,784 million / $786

Inventory Turnover = 4.8 times

Number of days Sales is the numbers of days that a company takes to to be sold.

Numbers of Days Sales = 365 / Inventory Turnover ratio

Numbers of Days Sales = 365 / 4.8 = 76.04 = 76 days

6 0
3 years ago
In the market clearing price,
Semenov [28]

Answer:

B) the supply by sellers meets the demand from buyers.

Explanation:

The market clearing price is also called the equilibrium price. At the equilibrium price for a given product or service, both the quantity supplied by the suppliers and the quantity demanded by the consumers is EQUAL. In a supply and demand curve, the equilibrium price is where both curves meet.

4 0
4 years ago
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