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sdas [7]
3 years ago
11

Larkspur, Inc. issued $432,000, 7%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Larkspu

r uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds.
Business
1 answer:
kirill [66]3 years ago
3 0

Answer and Explanation:

The Journal entry to record the issuance of the bond is as follows:

Cash Dr  $449,280 ($432,000 × 1.04)

        To Bond payable $432,000

        To Premium on bond payable $17,280

(Being the issuance of the bond is recorded)

here the cash is debited as it increased the assets and credited the bond payable and the premium on bond payable as it also increased the liabilities

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A leveraged buyout refers to a(n): a. action where the management of the firm and/or an external party buys all of the assets of
grigory [225]

Answer:

a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.

Explanation:

A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.

Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.

So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken

3 0
3 years ago
Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable b
dusya [7]

Answer:

adshgddfxxxxxxsdccxasss

Explanation:

a

4 0
3 years ago
Bikul has just started a great job and plans to buy a fancy car worth $100,000. Bikul is risk-averse in money matters, but he li
dedylja [7]

Answer:

$10,000

Explanation:

Probability that Bikul wrecks the car is 0.10

loss of wrecking the car is $100000

Therefore risk of wrecking the car = Probability x loss

risk = 0.10 x 100000 = 10,000

premium can be equated with risk, hence premium = $10000

6 0
3 years ago
Aggregation to qualify for a breakpoint is not available to: a a group of family members in the same household that aggregates i
kogti [31]

Aggregation to qualify for a breakpoint is not available to an investment club that purchases different mutual funds within the same fund family. This is further explained below.

<h3>What is the investment?</h3>

Generally, an item purchased or invested in with the purpose of increasing one's wealth and preserving one's financial resources from the hard-earned income or appreciation

In conclusion, An investing club that acquires mutual funds from the same fund family is not eligible for aggregation to qualify for a breakpoint.

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5 0
2 years ago
If no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset's
Alexandra [31]

Answer:

D

Explanation:

option D is correct

If no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset's assigned value is allocated to the expense Indefinitely (no amortization= depreciation of intangible assets like patent rights, copy rights,etc.) with an annual impairment review until its life becomes finite.

3 0
4 years ago
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