One objective of affirmative action plans is to ____

Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2006, at a discount of

elixir [45]

Answer:

A. December 18, 2020

Dr Cash 4,080,000

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

Cr Discount on Bond payable 60,000

Cr Cash 3,120,000

B. The LOSS is reported as an ORDINARY INCOME

Explanation:

A. Preparation of Journal entries

December 18, 2020

Dr Cash 4,080,000

($4,000,000/100)*102

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

(4,080,000-4,000,000)

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

[3,00,0000-(3,120,000+60,000)]

Cr Discount on Bond payable 60,000

($150,000/25)*10

Cr Cash 3,120,000

(3,000,000*104%)

B. Indication of the income statement treatment of the gain or loss from redemption.

The LOSS is reported as an ORDINARY INCOME

8 0

3 years ago

50 percent of your potential customers would be willing to buy your product for $16 each, but the other 50 percent would be will

nignag [31]

If you set the selling price of each unit at $16, the expected profit per customer is: $6.

<h3>Expected profit</h3>

Using this formula

Expected profit=Lowest amount willing to pay-Marginal cost

Where:

Lowest amount willing to pay=$10

Marginal cost=$4

Let plug in the formula

Expected profit=$10 - $4

Expected profit= $6

Therefore if you set the selling price of each unit at $16, the expected profit per customer is: $6.

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8 0

2 years ago

nancy compnay has a balance of 15000 in accounts receivable on december 31, of which 1500 is more than 30 days overdue

kompoz [17]

The company's Allowance for Doubtful Accounts has a starting debit balance of $45 dollars. They calculate that 1% of current accounts and 10% of accounts older than thirty days are uncollectible.

Doubtful Accounts
A doubtful account is one on which you are due payment but are unsure if your company will actually receive it. To put it another way, the debt is what you might have to write off and take a loss on.
Businesses have questionable accounts for a variety of reasons, including
Unsatisfactory Service: If a consumer is unhappy with the caliber of your goods, services, or supplies, they may complain and decide to postpone paying you until the problem is remedied.
Financial Crisis: A client may experience financial difficulty and file for bankruptcy or insolvency.

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6 0

2 years ago

Credit Derivative. In a total return swap, Party A receives LIBOR 3%. Party B receives the total return on a certain equity inde

dusya [7]

Based on the provisions of the swap, Party A will pay $6,000 and receive $8,000.

<h3>How much will Party A pay?</h3>

Party A will pay the total return of 6% on the equity index capital:

= 6% x 100,000

= $6,000

<h3>How much will Party A receive?</h3>

Party A is to receive the rate of LIBOR + 3%. LIBOR is 5% so Party A will receive:

= 5% + 3%

= 8%

Total return is:

= 8% x 100,000

= $8,000

In conclusion, Party A will pay $6,000 and receive $8,000.

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5 0

3 years ago

An environmental consultant is considering the installation of a water storage tank for a client. The tank is estimated to have

LUCKY_DIMON [66]

Answer:

The preferred alternative based on a present worth analysis with a MARR of 20% per year is:

the Installation of a water Storage Tank

Explanation:

a) Data and Calculations:

MARR = 20% per year

Time period or planning horizon = 20 years

Alternatives

Tank Pond

Initial costs $309,000 $315,000 ($225,000 + $90,000)

Annual maintenance costs 7,100 16,000

PV annuity factor 4.870 4.870

Total PV: maintenance cost $34,577 $77,920 ($16,000 * 4.870)

Total PW costs $343,577 $392,920 ($315,000 + $77,920)

Present worth is the same as the present value (PV) of a future amount, discounted to the present using a specified rate.

8 0

3 years ago

One objective of affirmative action plans is to _____.