Answer:
The journal entry to record issuance of the bond would be:
Debit : Cash $382,942.
Credit : Bonds Payable $382,942.
Explanation:
At Issuance of Bonds, we recognize the Cash Asset and the Liability Bond Payable at the Issue Price of the Bond instead of Face Value.
The Issue Price is also known as the Present Value or Current Price of the Bond and for this question this was given as $382,942.
Answer:
a, Journal Entries to record transactions
Account Titles Debit Credit
Cash $5,412.36
Cash Short and Over $0.71
($5,413.07 - $5,412.36)
Sales $5,413.07
The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.
b. Journal Entries to record transactions
Account Titles Debit Credit
Cash $3,712.95
Cash Short and Over $0.79
(3,712.95 - 3,712.16)
Sales $3,712.16
Answer: Capital investment in new machinery
Capital investment in new machinery enables a company to produce more over a given period of time as compared to the old machine.
It also helps the company to take advantage of new orders in the markets and helps it increase its share in catering to the demand for its products
Answer:
B) Is not a contract because there is no consideration for B's promise.
Explanation:
In contract law, consideration is the benefit that must be bargained for between the parties involved. It is the essential reason for the parties entering a contact. Consideration must have some value and is exchanged on the performance or promise from the other party.
Common law rules on contract modifications require some new consideration in order to modify an existing contract. In this case, only B added some new consideration (more money) to the written contract, A didn't add anything new.
