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3 years ago

. Identify and explain two principles for ethical accounting practice

1 answer:

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The revised Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of ethics:

Integrity.

Objectivity.

Professional Competence and Due Care.

Confidentiality.

Professional Behavior.

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Concord Company had bonds outstanding with a maturity value of $311,000. On April 30, 2017, when these bonds had an unamortized

Dmitrij [34]

Answer:

Redemption of Old Bonds

4-30-17 Bonds Payable $311000 Dr

Loss on Bond Redemption $26550 Dr

Discount on Bonds Payable $11000 Cr

Cash $326550 Cr

Issuance of New Bonds

3-30-17 Cash $314110 Dr

Premium on Bonds Payable $3110 Cr

Bonds Payable $311000 Cr

Explanation:

Redemption of Bonds Payable

The maturity value for bonds payable is equal to the face value of these bonds. This means that the face value of old bonds was $311000.

The bonds were carrying a discount. Thus, the carrying value of bonds was

Carrying value = Face value - Discount

Carrying value = 311000 - 11000 = $300000

Bonds with a carrying value of $300000 were redeemed at 105% of the face value. The cash paid for redemption is,

Cash paid = 311000 * 105% = 326550

Thus, there was a loss on redemption of = 326550 - 300000 = $26550

Issuance of Bonds Payable

The bonds were issued at 101% of the face value which means they were issued at a premium.

The amount of premium on these bonds is,

Premium = Carrying value - Face value

Premium = 311000 * 101% - 311000

Premium = $3110

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4 years ago

Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance

bogdanovich [222]

Answer: Financial

Explanation: Financial risk is any several categories of risk correlated with the research of money and how it is used, a treaty or process of passing a message which is held between a customer and a seller to trade aid to expenditure which involve organization loans in hazard of failure to meet circumstances of the loan.

7 0

3 years ago

Read 2 more answers

According to economists, gift registries, returning gifts for cash refunds, and "recycling gifts" multiple choice increase the e

valentina_108 [34]

A) increase the efficiency of gift-giving because they allow the recipient to consume goods that provide greater utility and transfer away those goods that are less satisfying.

Utility is the satisfaction that a consumer gets from a good or service, and picking the items that they want themselves provides the best efficiency of choosing goods.

5 0

3 years ago

Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a

Novay_Z [31]

Answer: Please see answer in explanation column

Explanation:

a) Due date = April 22+90 days = July 21

b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440

c1) Journal entry for receipt of note by Bork Furniture

journal Debit Credit

Notes receivable $96,000

Account receivable $96,000

C2) Journal entry to record receipt of payment at maturity

journal Debit Credit

Cash $97,440

Notes receivable $96,000

Interest revenue $1,440 (97,440-96,000)

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3 years ago

Cave Hardware's forecasted sales for April; May; June; and July are $ 200,000; $ 210,000; $ 150,000; and $ 240,000; respe

Dafna1 [17]

Answer:

The balance of account payable for month of June would be $94,128

Explanation:

Here for taking out the amount account payable for month of June , we will need to have Purchases for the month of June and as it is told that 74% of the inventory purchased would be paid in the following month, it means that the inventory that was purchased in May , 74% of it would be paid in June , so therefore the 74% of purchases would be the account payable for month of June.

First we would have to take out purchases and for that we will use equation of -

Cost of goods sold + ending inventory - opening inventory (for June)

COST OF GOODS SOLD =

$150,000 X 80%

= $120,000

ENDING INVENTORY =

$75,000 + 10% OF COST OF GOODS SOLD OF JULY

= $75,000 + 10% X [ 80% X $240,000 ]

= $75,000 + 10% X 192,000

= $75,000 + $19,200

= $94,200

OPENING INVENTORY =

$75,000 + $120,000 X 10%

= $75,000 + $12,000

= $87,000

Now putting all these values in equations top take out purchases-

=$120,000 + $94,200 - $87,000

= $127,200

PURCHASES = $127,200

ACCOUNT PAYABLE = PURCHASES X 74%

= $127,200 X 74%

= $94,128

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3 years ago