The bond issuance should be recorded as the bond issued with discount. There is a difference between the bond's par value and its selling price. If a bond sold below its par value, a discount will appear as the difference between them. For the journal entry, there will be a debit balance in cash account for $1,864,097, debit balance in the discount of the bond payable account for $ 135,903, and credit balance in the bond payable account for $2,000,000.
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</span><span>Steven Paul "Steve" Jobs was an American entrepreneur, businessman, inventor, and industrial designer.</span>
Answer and Explanation:
The computation of the total incremental cost is shown below;
For making 53,500 units
<u>Particulars Relevant Relevant Total </u>
<u> Per Unit Fixed Costs Relevant Costs
</u>
Variable Cost
Per Unit $2.95 $157,825
(53,500 units × $2.95)
Fixed
Manufacturing
Costs $67,000 $67,000
Total Incremental Costs to Make $224,825
For making 53,500 units
<u>Particulars Relevant Relevant Total </u>
<u> Per Unit Fixed Costs Relevant Costs
</u>
Purchase
Price
Per Unit $3.50 $187,250
(53,500 units × $3.50)
Total Incremental Cost to Buy $187,250
The company should buy the component from the outside supplier as it saves the cost for ($224,825 - $187,250) = $37,575 plus the buying cost is less than the making cost
Answer:
d. recognition of realized gains or losses on sales
Explanation:
In the case of trading securities, the non-realized gain and losses should be recorded in the income statement. So at the time when securties are sold so here the realized gain are distinct as compared to the afs and htm securties
So as per the given situation, the option d is correct
And, the same should be considered
