Answer:
Date, bonds sold at a premium
Dr Cash 5,500,000
Cr Bonds payable 5,000,000
Cr Premium on bonds payable 500,000
Explanation:
The total face value of the bonds is $1,000 x 5,000 bonds = $5,000,000
since the bonds were sold at 110, their price was $5,000,000 x 110% = $5,500,000
the difference between the face value and the actual market price = $5,500,000 - $5,000,000 = $500,000 must be recorded as premium on bonds payable (increases the bonds' carrying value)
Answer:
$412,500
Explanation:
March
Cash receipts from sales on account for April = $400,000 * 75%
Cash receipts = $300,000
April
Cash receipts from sales on account for April = $450,000 * 25%
Cash receipts = $112,500
Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April
Total Cash receipts = $300,000 + $112,500
Total Cash receipts = $412,500
Answer:
It might be because of an increase in efficiency in the workforce or advances in technology. Hope it helps :)
Explanation:
Answer:
<em>Operating Lease</em>
<em />
Explanation:
5years / 6 years = 83.33% above 75% of the useful life
the ownership reverts at the end of the lease
the lessor has risk considering the residual value is not guaranteed
We aren't given with information about the asset value to check if it is paying the entire value of the asset.
But for the information given we can conclude it is an operating lease.
Answer:
balance sheet
Explanation:
A balance sheet is one of the most essential financial statements that helps accountants and managers grasp the financial structure of the company, at a <u>certain point of time</u>.
The balance sheet clearly states the company's assets, liabilities and stockholders' equity, rigorously adhering to the basic accounting equation:
Assets = Stockholder's Equity + Liabilities
The equilibrium of the equation above is non-negotiable; it relies on common sense too. Every company owns things - <em>assets</em>, which were obtained with the aid of a e.g. bank loan - <em>liability, </em>or investor money - <em>stockholders' equity</em>.
These three groups can be further itemized into smaller, concrete accounts. Also, the <em>liquidity principle</em> is applicable in terms of ordering the items in an increasing liquidity order.
The time context is also an important distinction of this specific financial statement. While statements such as the P&L statement refer to <em>a specific time interval</em> (year, quarter...), the balance sheet reflects <em>a specific point of time. </em>
