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natta225 [31]
3 years ago
8

The following section is taken from Blossom's balance sheet at December 31, 2021. Current liabilities Interest payable $ 40,500

Long-term liabilities Bonds payable (8%, due January 1, 2025) 505,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
Business
1 answer:
aev [14]3 years ago
3 0

Answer:

(a) Journalize the payment of the bond interest on January 1, 2022.

Dr Interest payable - bonds payable 40,400

    Cr Cash 40,400

The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.

(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.

Dr Bonds payable 100,000

Dr Call premium 3,000

    Cr Cash 103,000

(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.

interest expense = $405,000 x 8% = $32,400

Dr Interest expense - bonds payable 32,400

    Cr Interest payable - bonds payable 32,400

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A few years ago, Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoy
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Answer:

General Motors had more of a Production Orientation

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3 years ago
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company
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Answer:

a. $13

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Explanation:

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Variable overhead rate = Variable overhead cost ÷ Expected standard hours

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= $2 direct labor hour

Total overheard rate = Variable overhead rate + Fixed overhead rate

= $11 + $2

= $13

b. The computation of overhead controllable variance is shown below:-

Variable overhead cost = Overhead rate × Standard hours

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= $240,625

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Working note:-

Standard direct labor hours = Actual units ÷ Standard hours

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butalik [34]
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3 years ago
Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $19,000 and the fair mar
NARA [144]

Answer:

a gain for 6,000 dollar will be recognized

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Total proceeds from the sale:

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