On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $303,050. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount.
Required:
1. What is the amount of the discount on the bonds at issuance?
2. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024?3. Prepare the journal entry to record the bond retirement.
Answers
Answer:
1.
$7,250
2.
$284,562.5
3.
Dr. Bond Payable $290,000
Dr. Loss on Retirement $18,487.5
Cr. Bond Discount $5,437.5
Cr. Cash $303,050
Explanation:
1.
Bond is issued on the discount when it is issued below the face value.
Discount value = Face value - Issuance value = $290,000 - $282,750 = $7,250
2.
Carrying value of the bond is the net of face value of the bond and un-amortised bond discount.
Carrying value = 290,000 - ($7,250 x (20-5) / 20) = $284,562.5
3.
Bond Discount = $7,250 x 15/20 = $5,437.5
Related Questions
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Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee salaries. Salaries were $500,000 during the period. a. Provide the journal entry for the vacation pay. b. Provide the journal entry for the pension benefit.
Answers
Answer:
a. Provide the journal entry for the vacation pay
Debit Vacation and Holiday expense $49,000
Credit Vacation and Holiday payable $49,000
(To record earned Vacation and Holiday expenses)
b. Provide the journal entry for the pension benefit
Debit Pension expense $30,000
Credit Pension liability $30,000
(Being pension benefit recognition)
Explanation:
The earned vacation and holiday expense has to be recognized in line with the accrual principle of accounting.The pension benefit was also recognized in line with the accrual principle of account. The pension plan is a contribution of 6% of employee salaries, which amounted to $500,000. So, 0.06 x 500,000 = $30,000.
Forward Co. discarded a machine that cost $5,000 and was fully depreciated. The entry to record this transaction would include a credit to the
account.
Answers
Based on the fact that Forward Co. discarded a machine with cost $5,000, the entry to record this transaction in the books would include a credit to Machinery.
How do you dispose of fixed assets?When fixed assets are to be disposed of, the accumulated depreciation upt to that point is looked at to calculate the net book value.
This would then show the company if they made a profit or a loss when they sold the fixed asset with a profit being made when the selling price is higher than the net book value.
Regardless of the price the fixed asset is sold at, the company would record a credit to the fixed asset (machinery) account to show that the fixed asset account is decreasing.
In conclusion, there will be a credit to machinery.
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what is the main aims of forming a maize milling company
Answers
Answer:
to provide I
or produce mealie meal for the country and improve the country's production in food and farming.
Question # 1: 5+3+6
a. Umer is a businessman, and with time, the demand for his product increases rapidly. To effectively manage the supply and demand, he should have to develop an effective decision-making process to select different alternatives. He is unable to decide what he should do. Make some valuable suggestions for a practical decision.
b. What are the reasons for poor decision making?
Answers
Before making a snap judgment, a businessman can carefully consider and research multiple workable issues to a single problem. Coming up with ideas is brainstorming, in which a group of individuals collaborates to produce concepts and potential solutions.
What is a product?A product is something that is being sold. A business or an object both qualify as products. Every product has a cost associated with it, and each one has a price.
In this example as the demand has increased. Businessmen need to make sure that there will be everything that they can do to meet the demand. This will include the production speed being increased. Also that there will be ample amount of resources that are available.
If the person fails to decide on what decision to take or what will be the first one then the reasons for poor decision-making.
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Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of $213,500.
a. What is Robert's qualified business income? $305,000? (correct)
b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $213500(incorrect), $91500(incorrect).
Answers
1. Robert's qualified business income is $305,000.
This is because Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business.
What is the net income and dividend?During the current year, ABC has net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of $213,500.
If Robert's experience and responsibilities are valued at $213,500, then his qualified business income would also be $213,500.
Robert's income of $91,500 falls under the category of reasonable compensation, and hence, he will not have to pay any self-employment tax.
If Robert's skills and obligations justify a fair salary of $91,500, his eligible business earnings would amount to $123,000. Robert's salary of $91,500 would be viewed as justifiable remuneration and therefore exempt from self-employment tax.
The sum of $213,500 that Robert obtained from ABC as dividends would be liable to the self-employment tax.
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Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at Group of answer choices prices at and above the equilibrium price. prices at and below the equilibrium price. prices above and below the equilibrium price, but not at the equilibrium price. the equilibrium price but not above or below the equilibrium price.
Answers
Answer:
the equilibrium price but not above or below the equilibrium price.
Explanation:
At equilibrium price, quantity demanded equals quantity supplied. At this point, buyers are able to buy all they want to buy and sellers are able to sell all they want
Above equilibrium price, there would be a surplus. the quantity supplied would exceed the quantity demanded. Sellers would not be able to sell all they want in this case
Below the equilibrium price, there would be a shortage. the quantity demanded would exceed the quantity supplied. buyers would not be able to buy all they want
Elena works for a company that handles product testing for a company based in Germany. This work is an example of
Answers
Answer:
outsourcing
Explanation:
outsourcing is what companies use to reduce production costs by contracting some business activities to other businesses.
hope this helps:)
Answer:
Elena works for a company that handles product testing for a company based in Germany. This work is an example of Outsourcing.
Explanation:
Outsourcing is a form of the verb outsource. Outsource is usually defined as of a company or organization, to purchase (goods) or subcontract (services) from an outside supplier or source.
Outsourcing is the technique used by companies to reduce cost by transferring portions of work to third party suppliers opposed to performing the job internally.
Outsourcing benefits include savings, quality improvement, and the ability of the organization to concentrate time and resources on its core resources.
Raymond is a saver and he has deposited $5,019 in a savings account that pays 8% interest rate per year. If Raymond keeps the
money in the account for 6 years, how much will the money be after 6 years? Round your answer to the nearest two decimal
place and remove the dollar sign.
Answers
Based on the amount Raymond deposited, the amount in the account at the end of 6 years will be $7,964.22.
The account will increase the amount by 8% every year.
In 6 years time, the account would have:
= Initial amount x ( 1 + rate) ^ number of years
= 5,019 x ( 1 + 8%) ⁶
= 7,964.522
= $7,964.52
In conclusion, the account would have $7,964.22.
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five rules you need to follow before going into business for yourself
Answers
Building leaders is the game. ...
Don't let anything in your professional life excuse any lapses at home. ...
Giving back should be everyday. ...
Trust your team and focus on the bigger things.
Question: Hello: )✨five rules you need to follow before going into business for yourself ?
Answer: Conduct market research. Market research will tell you if there's an opportunity to turn your idea into a successful business. ...
Write your business plan.
Fund your business.
Pick your business location.
Choose a business structure.
Choose your business name. Develop a powerful message.
Focus on the customer and fully understand the market.
Start small and grow.
Understand your own strengths, skills, and time available.
Surround yourself with advisors and mentors.
Have an amazing day/night<3.
:
You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 16 percent on outstanding balances. What is the effective annual interest rate?
Answers
Answer:
Effect Annual rate of return =17.22%
Explanation:
The Effective annual rate of return is the equivalent rate earned where compounding is done frequently at period or interval less than a year.
EAR = (1+r/m)^n× m - 1
EAR - Equivalent annual rate of return, r- annul rate of return, n-number of years
r= 16/12 =1.333%, n= 1 m= 12 (note there are 12 months in a year)
EAR = (1+0.16/12)^(1×12) - 1
EAR = 1.0133^12 - 1 = 0.1722
EAR 0.1722 × 100 = 17.22%
Effect Annual rate of return =17.22%
Your parents are giving you $250 a month for 4 years while you are in college. At an interest rate of .57 percent per month, what are these payments worth to you when you first start college
Answers
Answer:
FV= $13,757.37
Explanation:
Giving the following information:
Monthly payment= $250
Interest rate= 0.0057
Number of periods= 4*12= 48
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {250*[(1.0057^48) - 1]} / 0.0057
FV= $13,757.37
What does this part of the safety manual indicate about the use of ladders?
Ladders can be used only on a limited basis.
Workers must take care to handle ladders correctly.
Workers must wear the proper gear when using ladders.
Ladders can be used only on certain levels of the warehouse.
Answers
Answer:
B
Explanation:
I PUT IT ON BABY
When using ladders, employees must be properly outfitted. As a result, choice (C) is the best way to respond.
What is head gear?Any article of clothing worn on the head is referred to as headgear, headwear, or headdress. Examples include hats, helmets, turbans, and many other styles. Headgear is worn for a variety of reasons, such as social customs, ornamentation, protection from the elements, or for religious or cultural reasons.
Helmets are made to prevent injuries to the head and occasionally the neck. They often provide protection from blows and are stiff. In combat, on construction sites, and in many contact sports, helmets are a common sight (most commonly being associated with American football).
They are required by law in the majority of the United States for anyone operating a variety of vehicles, including motorcycles, and occasionally extend to bicycles and skateboards.
Hence, option (C) is accurate.
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You’ve recently learned that the company where you work is being sold for $525,000. The company’s income statement indicates current profits of $22,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” indefinitely and that the interest rate will remain constant at 6 percent, at what constant rate does the owner believe that profits will grow
Answers
The estimated growth rate (g) is -0.0181, roughly.
The Gordon Growth Model, often known as the tip reduction model, can be used to calculate the constant rate at which the business owner anticipates gains to increase. This methodology determines a stock's natural value based on expected future growth and the required rate of return.
As the gains are declared to be paid out as tips in this instance, we can consider the company's gains to be original to tips. The tip growth rate(g) can be used to express the owner's perception of the growing rate of gains.
The Gordon Growth Model allows for the following calculation of a company's natural value:
natural Value = tips/( needed Rate of Return- tip Growth Rate)
Given
tips( gains) = $ 22,000
needed Rate of Return( r) = 6 = 0.06
natural Value( trade Price) = $ 525,000
The formula can be changed to account for the tip growth rate(g).
g = ( tips natural Value)- r
Substituting the given values into the formula
g = ($ 22,000/$ 525,000)-0.06
g = 0.0419-0.06
g = -0.0181
It's crucial to remember that a negative growth rate denotes decrease rather than rise in gains. Even so, it's likely that the negative growth rate is the result of factors that were overlooked when gathering the data, such as one-time losses or adjustments.
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Why is it necessary for more than one individual to supervise an event's accounting? In the context of event planning, talk about risk and what it means.
Answers
Answer:
A special event is a one-time or infrequently occurring event outside normal programs or activities of the sponsoring or organizing body. To the customer or guest, a special event is an opportunity for leisure, social or cultural experience outside the normal range of choices or beyond everyday experience.
The key factors typically recognized as determining the perceived scale and impact of events are the level of participation, audience/spectators, and media coverage; and the degree to which an event generates significant international demand for each.
Explanation:
In November 2021, Simon pays $1,000 to take a course to improve his job skills to qualify for a new position at work. Simon's employer reimbursed him for the cost of the course. For 2021, Simon's lifetime learning credit is:
Answers
Based on the available information in the question, Simon's lifetime learning credit for 2021 is $0
What is Lifetime Learning Credit?Lifetime Learning Credit is a term that is used to describe the qualified schooling fee and applicable expenditures spent for qualified students fully admitted to an eligible educational establishment such as an institution.
Also, the Lifetime Learning Credit is known to be used by any of the undergraduate, graduate, and professional degree courses for payments of their tuition fees, comprising courses to obtain or enhance job skills.
Given that Simon's employer has reimbursed Simon for the cost of the course, it is concluded that Simon's lifetime learning credit for 2021 is $0.
Hence, in this case, it is deduced that the correct answer for lifetime learning credit is $0
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briefly explain how the decision support system resolved the problems experienced by the railways
Answers
The decision support system improved the efficiency of the railroads, paying special attention to the punctuality and speed of transportation on both passenger and commercial routes. The Indian Railways encounter a number of difficulties, including the failure to ensure train punctuality.
Ticketless transit by passengers, damage to or theft of railroad property, and others. The railways suffer a considerable loss in income as a result. By December 2023, 100% electrification of the broad gauge is the goal. In 2020–21, the speed of freight trains doubled to 46 kmph from 23 kmph in previous years. In January 2019, all unmanned level crossings on the broad gauge were removed.
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Market size and growth rates in different countries can be influenced positively or negatively by A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available B. the ability of management to tailor a strategy to take into consideration country differences C. the large size of emerging markets such as China and India D. competitive rivalry that is only moderate in some countries E. All of these choices are correct
Answers
Answer:
A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available
Explanation:
For market to grow and develop, there are many basic elements that are required to influence this growth, either positively or negatively. Some of these factors are:
i) Size of population
ii) Current level and state of infrastructural facilities
iii) Level of availability of retail and distribution networks
iv) Level of income of the general population in the particular country
v) Cultural influence
vi) Religious influence, etc
From the explanation above, we can see that option A is correct.
Market size and growth rates in different countries can be influenced positively or negatively by population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available.
How does cultural knowledge help a company achieve success?
A.
It helps a company gain points of parity.
B.
It helps a company interact with its competitors.
C.
It helps a company achieve points of difference.
D.
It helps a company interact with sponsors.
E.
It helps a company target its customers better.
Answers
Cultural knowledge can play a significant role in a company's success by helping it achieve points of difference in the marketplace. Understanding cultural norms, beliefs, and values can allow a company to create products and marketing campaigns that resonate with its target audience, leading to increased sales and customer loyalty.
For example, a company that understands the cultural significance of certain colors or symbols in a particular region can design products that are more appealing to local consumers. Additionally, cultural knowledge can help a company avoid missteps that may offend or alienate its target audience. By being culturally sensitive, a company can build a positive reputation and gain a competitive advantage over its rivals. Overall, cultural knowledge enables a company to tailor its offerings to the unique needs and preferences of its target market, leading to increased customer satisfaction and long-term success.
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In which situation would a certificate of deposit (CD) be the best banking choice?
A. Samuel is setting money aside but still needs emergency access to it.
B. Hafsa wants a guaranteed return, and won’t need the money for several years.
C. Darren is looking for an investment that has a very high interest rate.
D. Raj is looking for an investment with a fast return so he can reinvest.
Answers
In this situation a certificate of deposit (CD) would be the best banking choice is Darren is looking for an investment that has a very high interest rate.
In the best banking choice, if you want a safe investment with a higher interest rate than a regular savings account.
A certificate of deposit is issued t a discount given at face value. It is similar to an FD, certificate of deposit aims to denote in writing that you have deposited money in the bank for a fixed period and the bank would pay you interest- based on the amount and the period of your deposit.
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a food worker wearing artifishal nails is preparing a salad for lunch rush what should she do to prevent from contaminating the salad
Answers
Answer:
wear gloves when preparing the salad.
Explanation:
How much would it cost for Chester Corp to repurchase all its outstanding shares if the price went up by 10%? Assume no brokerage fees
Answers
The amount it will cost for Chester Corp to repurchase all its outstanding shares if the price went up by 10% is $214.1 million.
How to explain the valueClosing price is the price per share computed at the end of a particular day. It is the market price per share on a particular day. It is used as a base to compute the repurchase price per share.
Outstanding shares are the shares that exist and are trading in the market. It is calculated by reducing the number of shares repurchased from the total shares issued.
The amount it cost for Chester Corp to repurchase all its outstanding shares if the price went up by 10% will be:
= 1906223 shares × $112.33
= $214.1 million.
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Please Help ASAP!
2. Identify at least three factors that may influence Eric's decision, including Eric's savings and any ways he could reduce the total cost of the loan.
Answers
The three factors that influence Eric's decisions are the lowest rate of return along with the shorter duration of time.
What is Loan?A Loan is referred to as the amount which an individual borrows from a financial institution at a certain rate of interest to start any business or to fulfill their needs.
When Applying for any loan it is important to conduct research about the rate of return which helps in saving a large rate of income for an individual.
While making a decision for a loan, it should be determined which financial institution provides maximum facility on any Loan in order to repay it timely and reduce the burden on an individual.
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Choose a particular economic policy that you think should be implemented (or blocked from implementation). Explain why you think it's important and who/what opposes or supports the policy.
Answers
Economic policies include choices made on government spending and taxation implemented, the availability of money, and the redistribution of income from the wealthy to the poor.
There are two techniques to evaluate the efficacy of economic policies: positive economics and normative economics. The decisions that affect how a political system operates, such as those affecting transportation, public health care, education, and the structure of the armed forces, are the subject of public policy. Knowing how, when, and by whom implementation will be evaluated is helpful. Everyone engaged is kept informed of any potential obstacles as well as any intended and unintentional effects of the task through monitoring of implementation.
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If American Eagle used $100 million in cash to pay $100 million in accounts payable, how would its current ratio and acid-test ratio change? (Round your answers to 2 decimal places.) I just don't know how to get the acid test ratio change.
Answers
The way that the current ratio and the acid - test ratio of American Eagle will change after the use of $100 million cash to pay $100 million in accounts payable is:
Before After
Current ratio 1.39 1.45
Acid - test ratio 0.71 0.67
How to find the current and acid - test ratio?The current ratio is found by the formula:
= Current assets / Current liabilities
The current ratio before the payment is therefore:
= 1,047,930 / 751, 756
= 1.39
The current ratio after the payment is:
= (1, 047,930 - 100 million) / (751, 756 - 100 million)
= 947,830,000 / 651, 756
= 1.45
The acid test ratio is found by the formula:
= Quick assets / Current liabilities
Quick assets are the cash, marketable securities, and accounts receivables.
The Acid - test ratio before the payment is:
= (361,930 + 55,000 + 119,064) / 751, 756
= 0.71
The Acid - test ratio after the payment is:
= (361,930 + 55,000 + 119,064 - 100 million ) / (751, 756 - 100 million)
= 0.67
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Write a paragraph on needs and wants of the ancient communities
Answers
Answer:
Introduction
Info on needs and wants of ancient communities
.Info on system practiced in exchanging their goods
Logical arrangement of facts
Conclusion
buying and selling textbooks are two separate decisions made at the margin. textbooks create value both when they are bought and when they are sold.
Answers
The total value have you gained is $235.
The total value acquired from trading the reading material can be determined as follows:
The worth acquired from purchasing the course reading: $450 (the most extreme you were able to pay) - $250 (the genuine cost paid) = $200
The worth acquired from selling the reading material: $125 (half of the first cost paid) - $90 (the worth of the book to you in the wake of finishing the tasks) = $35
Thus, the complete worth acquired from trading the reading material is $200 + $35 = $235.
The total value acquired from trading a course is not set in stone by the distinction between the price tag and the selling cost. Assuming the selling cost is higher than the price tag.
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This question is not complete , Here I am attaching the complete question:
buying and selling textbooks are two separate decisions made at the margin. textbooks create value both when they are bought and when they are sold. think about your decision to buy the textbook for this course. you paid $250 for the book, but you would have been willing to pay $450 to use the book for the semester. suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. once you have completed the course, the book is worth only $90 to you. the bookstore will pay you 50% of the original $250. how much total value have you gained?
Which person would most likely have a bad credit report?
A. Oliver pays off the balance on his credit card every month and
recently closed an account he doesn't use.
B. In the past year, Brendan paid some of his bills late, and he has
several credit cards he never uses.
O C. Josie declared bankruptcy 10 years ago, has been in the me job
for eight years, and shays all her bills on time.
D. Mark has lived in the same house for 10 years, and he always pays
his bills on time,
Answers
Answer:
b. He has five credits cards with high balances.Explanation:A VantageScore is a credit score model that shows the probability that someone will pay the loans. A 400 VantageScore is very poor and people can get this score for different situations like bankruptcies as they will appear in your report for up to 10 years, having high utilization rates on your credit card and missing payments. According to this, the answer is that the factor that could be the cause is: he has five credits cards with high balances because he would have a high utilization rate which hurts the credit score. The other options are not right because a bankruptcy appears in the report for up to 10 years, a low debt to credit ratio shows that you use your credit in a responsible form and it won't hurt your credit acore. Also, if someone doesn't have a credit history, there is no score because there is no data to define that.
Explanation:
Answer:
d. because it's the in that makes the most sense
Darin works as a bartender and received $19,500 in regular wages, $800 in overtime wages, $1,200 in tips he reported to his employer, and a bonus of $500. He also received tickets to a baseball game worth $48 as a tip that he did not report to his employer. How much will be the amount on Darin’s Form W-2, box 1?
Answers
The amount reported on Darin’s Form W-2 is $22,000.
In practice, the Form W-2 are maintained by the Employer.
Particulars Amount
Regular time $19,500
Overtime $800
Tips $1,200
Bonus $500
Ticket to a baseball game ($48, bt unreported) $0
Amount reported on Darin’s Form W-2 $22,000
In conclusion, the amount reported on Darin’s Form W-2 is $22,000.
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Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures
Answers
Answer:
Explanation: