On June 30, 2009, Sage Company issued 12% bonds with a par value of $750,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $1,020,000 at 101; they mature in 20 years. Sage Company uses straight-line amortization. Interest payment dates are December 31 and June 30.


(a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018.

(b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months’ interest and the amortization of premium on the bonds.

Answers

Answer 1

Answer:

(a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018.

the discount on bonds payable = $750,000 x 2% = $15,000

amortization per coupon = $15,000 / 40 coupons = $375

By June 30, 2018, $375 x 18 = $6,750 of the discount were already amortized. The carrying value of the bonds = $750,000 - ($15,000 - $6,750) = $741,750

loss on redemption of the bonds = redemption value - carrying value = $780,000 - $741,750 = $38,250

Journal entry to record redemption of bonds:

June 30, 2018, bonds redeemed at a loss

Dr Bonds payable 750,000

Dr Loss on redemption of bonds 38,250

    Cr Cash 780,000

    Cr Discount on bonds payable 8,250

Journal entry to record new issuance of bonds:

June 30, 2018, bonds issued at a premium

Dr Cash 1,030,200

    Cr Bonds payable 1,020,000

    Cr Premium on bonds payable 10,200

(b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months’ interest and the amortization of premium on the bonds.

amortization of premium per coupon = $10,200 / 40 = $255

December 31, 2018

Dr Interest expense 40,545

Dr Premium on bonds payable 255

    Cr Cash 40,800


Related Questions

Business Math!

Your budget says that savings should be 11% of income. If you earn $1,500.00 a month, how much should
you save in a year?
$1.880.20
$1,880.00
$1,780.00
$1,980.00

Answers

Answer:

$1,980.00

Explanation:

$1,500.00 * 0.11 = $165.00

$165.00 * 12 months = $1,980.00

You should save $1,980.00 in a year.

which of the following career fields ensures that required supplies are available?
A.) Logistics B.) Purchasing C.) Management D.) Marketing communications

Answers

Answer:

D.marketing communication

i dont know but good luck

Answers

Answer:where’s the question?

Explanation:

Developing the ability to solve problems can help you
. The first step you should take is to
the problem and then solve it.
a. advance in your career a. create
b .become more ethics b. identify
c. change your values c. ignore

Answers

Complete Question:

Developing the ability to solve problems can help you.

The first step you should take is to

________ the problem and then solve it.

Group of answer choices

a. advance in your career.

b. create.

c. become more ethics.

d. identify.

e. change your values.

f. ignore

Answer:

d. identify

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

Hence, the first step you should take is to identify the problem and then solve it.

Answer:

Please mark as Brainliest :)

Explanation:

Although most STEM careers require workers to earn bachelor's degrees, high school graduates can qualify for some STEM careers. Which of these jobs do not require post-secondary education?
O Museum Conservator and Anthropologist O Electronic and Industrial Engineering Technicians
O Social Science Research Assistant and Park Naturalist
O Non-Destructive Testing Specialist and Surveying Technician​

Answers

Answer:

I think C if its not D

Explanation:

The job which does not require post-secondary education is Non destructive Testing Specialist and Surveying Technician. Thus, the correct answer is D.

What are STEM careers?

STEM is the acronym for Science, Technology, Engineering, and Math.STEM education fosters critical thinking, improves knowledge acquisition, and empowers the next generation of entrepreneurs.

These refer to the best career help in the growth of a country and stability of economy. It is a demanding job that requires highly qualified candidates. This will help in introducing technology and encourages innovation.

Therefore, option D Non-Destructive Testing Specialist and surveying technician is the correct answer which only requires a secondary degree.

Learn more about STEM careers, here:

https://brainly.com/question/9795432

#SPJ5

Recruiting new employees via the Internet allows companies to _________.
a.
Reach candidates from across the world
b.
Conduct recruiting sessions from the office
c.
Gather résumés and cover letters paperlessly
d.
All of the above

Answers

I had this question and the answer was b: conduct recruiting sessions from th office.

Answer:

answer is b on edge 2020

Explanation:

Community colleges and vocational schools offer programs in maintenance and repair.

Answers

Answer:

yes, yes they do

Explanation:

Which group once represented 35 percent of the labor force, but today, __________ represent only about 11.1 percent of the labor force, and are consequentially, much less powerful in influencing economic policy?

Answers

Answer:

"Labor unions" seems to be the right approach.

Explanation:

Labor unions, therefore, have a substantial effect on jobs, corporations, and as well as the political system. This seems to be a worker association done to negotiate with the workplace in addition to performance management, such as claims, labor issues, compensation, minimum wages, service time, as well as other job security.

Name one potential danger of choosing a career based solely on salary and earnings potential.

Answers

Answer:

too much pressure and stress

one is going to work under pressure as the workload will be increasing mainly because the salary will be high and that will also lead to stress

One potential danger of choosing a career based solely on salary and earnings potential is poor health and depression.

What is a Career?

A career is referred to what an individual chooses as a profession to earn something. A career of an individual is based on his talents, skills, and abilities which help him to seek growth and development and achive the goals of life.

A career should be based on individual interest rather than based solely on salary and earnings potential. As salary does not give the satisfaction of work and provides stress and pressure while working.

A career based on interest provides satisfaction and lack of pressure and good mental well-being whereas earnings potential will lead to stress and poor health which lead to many health problems.

Learn more about Career, here:

https://brainly.com/question/2160579

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how does an increase in income increase tax revenue​

Answers

Answer:

An increase in income will increase tax revenue because the more taxes and tax write-offs will lead to more in tax returns.

Explanation:

The more income you make the more taxes you will pay, after write-offs you will end up earning more back in tax returns than you would if you made less

What does "Certeris Paribus" assume when
calculating how people spend money?
A. The person has held the same job with the same amount of
pay
B. The person has been promoted and makes more money than
before.
C. The person has lost their job and is unemployed at the
moment.
D. The person has taken a second job for additional income.

Answers

ceteris paribus assumes things like confidence and income remain the same, so that we may study simply the interaction between interest rates and the demand for loans and ignore how all the other variables might affect the outcome.

Which of the following should an individual NOT do after an interview?

A. Send a thank-you note to the interviewer, expressing appreciation for the interview

B. Insist the interviewer announce his employment discussion immediately

C. Shake the interviewer's hand

D. Follow-up with a phone call regarding the decision-making process of a decision​

Answers

Answer:

B.

Explanation:

The interviewer will call you back if you get the job. It also might come off as inappropriate, or pushy.

Hey :)

The answer would be B

This is because it would be rather rude to make the interviewer announce your employment discussion especially if he needs to speak with his boss before letting you know

Hope this helps!

What can give working people information about their fields, including conferences and leadership opportunities in those fields?

an extracurricular activity
a career and technical student organization
a professional organization
a cocurricular activity

Answers

Answer:

a professional organization

Explanation:

A professional organization is also known as a professional association or professional body. It is founded by people of a particular profession to advance their interests. A professional organization exists to support people working in that profession for the public good.

A professional body facilitates communication, interactions, and connection between members. It promotes research and innovation to further the knowledge and skill in the profession.

Answer:

3rd option

Explanation:

The HR department at Clearwater Electronics received a report of a work-related injury on the production line that resulted in the employee missing several days of work. Supposedly, the employee hurt his back while lifting a box of components. However, another employee reported that the employee was not really hurt and just wanted some days off. It is the responsibility of the HR department to process workers' compensation claims and make sure the claim is not fraudulent. Which statement gives the best reason for HR to ensure that the claim is legitimate?

Answers

Answer: Fraudulent workers' compensation claims can lead to higher insurance premiums and penalties, so it is important for HR to protect the company and avoid costly mistakes.

Explanation:

With regards to the scenario in the question, the statement that gives the best best reason for the Human Resource to make sure that the claim is legitimate is because the activities of workers that are fraudulent can lead to the increase in both the insurance premium and penalties.

Therefore, every claim.has to be verified and seen to be legitimate. The HR must therefore protect the company and make sure that costly mistakes are avoided.

MORE FREE PINTS! IT'S CLEARANCE SALE!! FLAG QUESTION WHEN YOU'RE DONE!!!

Answers

Answer:

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Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

Answers

Answer:

14.82%

Explanation:

initial investment = $1,000

annual coupon = $140 (7 coupons received)

selling price = $1,090

the easiest way to determine the realized rate of return is to use a financial calculator or excel spreadsheet, and calculate the IRR: 14.82%

the cash flows are:

-10001401401401401401401230

In a market there is a shortage of a good. What change would cause the market to come to an equilibrium?

A) a decrease in supply
B )a fall in price
C) an increase in demand
D) a rise in price

Answers

Answer:

D) a rise in price

Explanation:

At the equilibrium point, the quantity demanded and the quantity supplied are the same. There is no excess shortage or supply in both demand and supply.

A shortage occurs when suppliers are not able to meet the market demand. Here, demand is the quantity that buyers are willing to buys at a specific price over time.  As per the law of demand, high product price causes demand to decrease while low price results in increased demand.

A shortage of a product means its demand is high. Many buyers are willing to buy the commodity at the current price.  As per the law of demand, a price increase will result in reduced demand and achieve equilibrium.

Florence deposited ₱ 14,800 in a bank that gives 4.35% simple interest. after 2years 4months, she went back to the bank to check her balance. how much was available in her account?​

Answers

Answer:

₱ 16,300.054

Explanation:

The formula for calculating simple interest is as below.

I= p x r x t

In this case, p= 14,800, r = 4.35% and t is 2 years and 4 months

the interest rate is in years; we need to convert two years and four months to years.

=4 months = 4/12 of one year = 0.33

2 years 4 months = 2.33 year

I= 14,800 x 4.35/100 x 2.33

I= 14,800 x 0.0435 x 2.33

I=1,500.054

the amount in the bank will be principal plus interest

=14,800 + 1500

=16,300.054

who in t.f would let biden win

Answers

Answer:

people who are stupid lol

Explanation:

Answer:

Cheaters!?!?

Explanation:

The election mightve been rigged cuz of thousands of ballots and such being dumped at 1 am with all of them voting for Biden ¯\_(ツ)_/¯

The method of determaining what a business will get in exchange for its products
A. pricing
B. supplies
C. Command
D, market

Answers

Answer:

A. pricing

Explanation:

Pricing entails determining the value to attach to a product. It is the process through which a business decides how much customers will pay for its products. A business must consider the production costs and the desired margins when setting a price.

Price plays a crucial role in the success of a product and the business.  A high price has higher profit margins but may put-off some customers. A low price may attract demand but may lead to losses. Sometimes, low prices are associated with a poor quality product.

Perform online research to find a car you would like to have. Find out how much it would cost to lease the vehicle, and how much it would cost to own it. In about 500 words, explain how you will decide whether to lease or purchase the car. Any car of your choice.

Answers

Answer: 2022 Tesla Model 3 Standard Sedan

Explanation:

The price of a lease for a Tesla varies according to their type and model. For the sake of comparison of each Tesla model below, each of the pricing options is a result of the following terms: 36-month lease, 12,000 miles per year. For the two newer models (3 and Y), we will pay the minimum $4,500 down payment. For the veteran models (X and S), we will use the minimum required $7,500 down payment. Meanwhile, simply purchasing the vehicle could cost anywhere from $50k to $80k. 

Personally, after reviewing the two prices as well as considering any other possible fees and costs, I would most likely lease a Tesla due to its cost being much lower. 

Why is it a good idea to know your net worth

Answers

Answer:

Knowing your net worth is important because it can help you identify areas where you spend too much money. Just because you can afford something doesn't mean you have to buy it. To keep debt from accumulating unnecessarily, consider if something is a need or a want before you make a purchase.

Explanation:ig so...

Knowing your net worth is important because it can help you identify areas where you spend too much money. Just because you can afford something doesn't mean you have to buy it. To keep debt from accumulating unnecessarily, consider if something is a need or a want before you make a purchase.

Click this link to view O'NET's Work Activities section for Construction Managers. Note that common activities are
listed toward the top, and less common activities are listed toward the bottom. According to O*NET, what are
common work activities performed by Construction Managers? Check all that apply.
using muscles to lift, push, pull, or carry objects
communicating with supervisors, peers, or subordinates
using speed of limb movement to move arms and legs
scheduling work and activities
exerting oneself physically over long periods of time
making decisions and solving problems

Answers

Answer:

B,D,F

Explanation:

Answer:

ok bdf is correct

Explanation:

hows life people and are u failing

Answers

Answer:

terrible and no i am not failing

Explanation:

someone go check out my recent question i need help asap

Locating close to suppliers reduces these cost

Answers

Locating close to the raw material supplies can reduce where raw materials are heavy and large quantities are used up in production costs. This is particularly true for industries like steel, which uses large quantities of iron ore in the production process.

Art teacher Monica earns time and a half for the number of hours she works over 40 hours. One week she worked 48 hours. How many hours of overtime did she work?

Answers

Answer:

8 hours

Explanation:

Here, we want to know the number of overtime hours worked.

From the question, we are told that the pay is slightly different and higher if she worked for some hours over 40 hours

What this means is that the regular number of hours is 40; then the number of hours in this case 8 over 40 is her over time

What kind of tax system does the United States use?​

Answers

Answer:

It's 100% progressive tax system

Explanation:

I don't know what these people are on

Defamatory statements published on Internet bulletin boards, e-mails, and the like, are considered libel due to the somewhat permanent nature of the medium. This often is vital to a successful suit for defamation as damages are presumed to exist in the case of libel and do not have to be proven to the court.
The remaining question becomes who should be sued. This is the hard part. Sections of the Communications Decency Act of 1996 and several court
decisions provide protections to Internet service providers and bulletin board operators. Such parties generally are considered to be immune from suits
brought to make up for the harm done by such statements. However, they may be held liable if it can be shown that they exercised editorial or full control of
the material posted or transmitted or, at least, had knowledge of the specific defamatory contents. Such a showing has proven very difficult to accomplish.
Think about it
Why do you think it has been so difficult for people to win libel suits against Internet bulletin board operators or Internet service providers?

Answers

Answer:

Sorry i can not answer it...

In the product flow, what type of flow happens when customers return or reject goods?

Reverse flow
bad product flow
value flow
none of the above

Answers

Answer:

reverse flow

Explanation:

I believe it’s reverse flow

There are three different types of slings. What determines which type you use? Select all that apply.
Select the 2 answer options that apply.

What’s available at your worksite


The type of load


Environmental factors


The type of crane

Answers

Answer:the type of load

environmental factors

Explanation:

Answer:

The type of load

Environmental factors

Explanation: Took the test and got it right.

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