The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 13% bonds having a face amount of $90.3 million. The bonds had been issued in 2010 and had a remaining discount of $3.3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Answers

Answer 1
Answer:

Answer:

Dr  Bonds payable                                      $90,300,000

Dr loss on early redemption of bonds        $5,106,000  

Cr Discounts on bonds payable                                             $3,300,000

Cr Cash                                                                                      $92,106,000

Explanation:

The amount of cash paid to bondholders by calling the bonds is the 102% of the face value of $90.3 million i.e $90.3*102%=$92,106,000

The proceeds would debited to cash while the face value of the bond of $90.3 million would be debited to bonds payable account.

In addition the remaining discount of $3.3 million would credited to discounts on bonds payable account.

The loss or gain on the bond call can then be determined as appropriate.


Related Questions

"Audits may be characterized as (a) financial statement audits, (b) compliance audits, or (c) operational audits"
What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 0 –$ 5,500 1 1,525 2 1,725 3 2,125 4 1,625
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?
Pharell works in the Government and Public Administration career cluster. Physical fitness and patriotism are very important tohim and he would like to travel to new places around the world. Which career pathway would best suit Pharell?O PlanningO GovernanceO Revenue and TaxationO National Security

What is the specific eight-digit Codification citation (XXX-XX-XX-X) that describes the information about loans and trade receivables that is to be disclosed in the summary of significant accounting policies?

Answers

Answer: FASB ACS 310-10-50-2: “Receivables—Overall—Disclosure—Accounting Policies for Loans and Trade Receivables.

Explanation:

For the purposes of establishing standard frame of referencing for for items such as articles, textbooks, and other similar items, the FASB uses an 8 digit codification cititation format that works in the following way.

i. Topics — FASB ASC 310 to access the Receivables Topic

ii. Subtopics — FASB ASC 310-10 to access the Overall Subtopic of Topic 310

iii. Sections — FASB ASC 310-10-15 to access the Scope Section of Subtopic 310-10

iv. Paragraph — FASB ASC 310-10-15-2 to access paragraph 2 of Section 310-10-15"

The specific eight-digit Codification citation that describes the information about loans and trade receivables that is to be disclosed in the summary of significant accounting policies is,

FASB ACS 310-10-50-2: “Receivables—Overall—Disclosure—Accounting Policies for Loans and Trade Receivables.

The specific eight-digit codification citation should be FASB ACS 310-10-50-2.

Information of FASB:

Here FASB applied an 8 digit codification citation format that works in the following way.

i. Topics — FASB ASC 310 to access the Receivables Topic

ii. Subtopics — FASB ASC 310-10 to access the Overall Subtopic of Topic 310

iii. Sections — FASB ASC 310-10-15 to access the Scope Section of Subtopic 310-10

iv. Paragraph — FASB ASC 310-10-15-2 to access paragraph 2 of Section 310-10-15"

Learn more about receivables here: brainly.com/question/24509758

You have $11,000 and will invest the money at an interest rate of .33 percent per month until the account is worth $17,200. How many years do you have to wait until you reach your target account value

Answers

Answer:

1.5 years

Explanation:

The number of years for reaching the target value, it will be computed using the excel formula which is as:

=Nper(Rate,pmt,pv,fv,type)

where

nper is number of years

rate is 33%

Pmt is monthly payment which is $0

pv is present value which is -$11,000

fv is future value which is $17,200

type is 0

So, putting the values above:

=Nper(33%,0,-11000,17200,0)

=1.5 years

Therefore, the number of years it will take to reach the amount of $17,200 from investing $11,000 today is 1.5 years.

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:Sales $3,000,000Net operating income $150,000Average operating assets $750,000Consider each of the following requirements independently.Requirement 1:Compute the company's return on investment (ROI).Return on investment % ?Requirement 2:The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI?Return on investment % ?Requirement 3:The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring an $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the company's ROI in this scenario?Return on investment %?

Answers

Answer:

1) ROI= 20%

2) ROI=15%

3) ROI = 35%

Explanation:

ROI is the proportion of capital invested that is earned as net operating income. It calculated as

Return on Investment = Net income/Average operating asset

                                 = 150,000/750,000 × 100 = 20%

2.

ROI with a 50% increase in sales and 200% increase in average assets

ROI = (150%× 150,000)/(200%× 750,000)× 100= 15%

3.

ROI wth a 1,000,000 increase in sales

ROI = ( 150,000+200,000)/(250,000+ 750,000)× 100=35%

Answer

1) ROI= 20%

2) ROI=15%

3) ROI = 35%

Final answer:

The company's ROI for the different scenarios were calculated to be 20%, 60% and 35% respectively.

Explanation:

The Return on Investment (ROI) can be calculated by dividing the Net Operating Income by the Average Operating Assets and is typically expressed as a percentage. ROI = (Net Operating Income / Average Operating Assets) × 100

  1. For Requirement 1, with a Net Operating Income of $150,000 and Average Operating Assets of $750,000, the ROI is (150000/750000) × 100 = 20%.

  2. For Requirement 2, if sales and Net Operating Income increase by 50% and 200% respectively, with no increase in Average Operating Assets, the new Income becomes 150,000 * 3 (because of the 200% increase) = $450,000. Therefore, the new ROI becomes (450000/750000) × 100 = 60%.

  3. For Requirement 3, if sales increase by $1,000,000, requiring an increase in Average Operating Assets by $250,000, with a resulting $200,000 increase in Net Operating Income, the new Net Operating Income becomes $150,000 + $200,000 = $350,000 and the new Average Operating Assets becomes $750,000 + $250,000 = $1,000,000. Therefore, the new ROI becomes (350000/1000000) × 100 = 35%.

Learn more about Return on Investment here:

brainly.com/question/37192636

#SPJ12

Which of the following categories in the portfolio matrix is a market leader and growing fast?a.Star
b.Meteor
c.Cash cow
d.Shiner
e.Top dog

Answers

Answer:

It is Star (B)

Explanation:

Option (a) True. Star is a product with high relative market share in a high growing market . This product is full of potential but require more investment and spending in the areas of advertising,innovation and  market research in order to maintain its market leadership position. Hence, it might be cash neutral at this stage.

In the long-run, it will eventually turns to cash cow in the portfolio if we can sustain its position.

Option(b) Meteor. False. This does not exist in product portfolio matrix.

Option (c) Cash cow. False.

This product has a large relative market share in a stagnating (mature) market, profits and cash flows are expected to be high. Because of the lower growth rate, investments needed should also be low.

Hence, they  typically generate cash in excess of the amount of cash needed to maintain the business and this  ‘excess cash’ is supposed to be ‘milked’ from the Cash Cow for investments in other business units (Stars and Question Marks). Cash Cows ultimately bring balance and stability to a portfolio.

Option (d) Shiner. False .It does not exist

Option (e) Top dog. It is a product with low relative market share in a stagnant market.

At December 31, 2017, Sweet Corporation had a projected benefit obligation of $561,600, plan assets of $331,900, and prior service cost of $120,300 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017. (Enter liability using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pension asset/liability at December 31, 2017

Answers

Answer:

Pension liability at December 31, 2017 is ($229,700)

Explanation:

Projected benefit obligation                         $561,600

Less: Plan assets                                           $331,900

Pension liability at December 31, 2017     -$229,700

Members should use the AICPA conceptual framework for independence to:a) come to different conclusions than the interpretations of the code of professional conduct.
b) Evaluate independence matters not addressed in the code of professional conduct.
c) understand the rules on the confidential client information and acts discreditable to the profession.
d) more easily interpret conflicts of interest and subordination of judgement by a member.

Answers

Option C is the correct answer. The AICPA's conceptual framework for independence is utilized or used to assess any challenges to members' independence.

Litigation, adverse interest between or among the CPA firm and the client, self-interest, familiarity outcoming in a financial benefit result to the CPA firm, CPA firm owning stock in the client's firm, and so on are all examples of threats

In the new AICPA Code, two conceptual frameworks;

  • One for participants in public accounting

  • One for participants in the sector reflects a significant change in substance.

The conceptual framework strategy is one manner in which warnings to completely comply with rules originating from a specific link or condition that are not covered by the code can be;

  • Discovered

  • Assessed

  • Resolved

Therefore, Option C) "Understand the rules of confidential client information and professional misconduct." is the correct answer. 

To know more about these frameworks, click below:

brainly.com/question/22596931

Members should use the AICPA conceptual framework for independence to  understand the rules on the confidential client information and acts discreditable to the profession.

Option C

Explanation:

Two conceptual frameworks, one each for participants in public accounting and one for participants in the sector, represent a major change to substance in the updated AICPA Code.

In all of these two implementation frameworks, the conceptual framework strategy is one way in which warnings to fully comply with rules arising from a specific connection or circumstance which are not covered by the code can be identified, assessed and addressed.

Other Questions