# On December 31, a \$1,500,000 bond issue on which there is an unamortized discount of \$70,100 is redeemed for \$1,455,000.

Explanation:

The journal entry is shown below:

Bonds Payable A/c Dr. \$1,500,000

Loss on Redemption of Bond A/c Dr. \$25,100

To Discount on Bonds Payable A/c \$70,100

To Cash A/c \$1,455,000

(Being the redemption of the bond is recorded)

The loss on redemption of bond would be

= \$1,455,000  + \$70,100  - \$1,500,000

= \$25,100

## Related Questions

IRobot designs andmanufactures robots for consumer, commercial, and military use. For the ﬁscal year ended January 2, 2016, the company reported the following on its balance sheet and income statement(amounts in thousands): Accounts receivable, net of allowance of \$33 at January 2, 2016, and \$67 at December 27,2014, of \$104,679 and \$71,056, respectively.
Revenue for ﬁscal 2015 (i.e., the year ended January 2, 2016) of \$616,778.
Bad debt expense for ﬁscal 2015 of \$0.

Required:
Compute the amount of cash collected from customers during ﬁscal 2015.

iRobot

The amount of cash collected from customers during fiscal 2015 = \$583,155.

Explanation:

a) Data and Calculations:

Allowance at January 2, 2016 = \$33

Allowance at December 27, 2014 = \$67

Accounts Receivable at January 2, 2016 = \$104,679

Accounts Receivable at December 27, 2014 = \$71,056

Revenue for 2015, year ended Jan 2, 2016 = \$616,778

Bad debt expense for 2015 = \$0

Computation of the Cash collected from customers during fiscal 2015:

Accounts Receivable

Dec. 27, 2014  Balance                 \$71,056

2015                 Revenue               616,778

Jan. 2, 2016     Balance                (104,679)

2015                 Cash                   \$583,155

A recent study about online shopping asked respondents to indicate their education level on the following scale "Less than High School, " "High School, " "Some College, " "College+". Which of the following statements is (are) I. Education level is a categorical variable.II. Education level is nominal scaled.III. Education level is ordinal scaled. A. I onlyB. III onlyC. Both I and IIID. Both I and III

C. Both I and III.

Explanation:

The education level is categorical variable and is ordinal scaled.

Ordinal level is a second level statistical measurement technique. It allows ranks to the data for its categorization and degree of variation is not determined between data.  Education level is ordinal scale because it provides orders of quantitative data.

Retail managers can use ________ to determine which inventory items require the most attention. a. EOQ modeling

b. CPS scheduling

c. Breakeven analysis

d. ABC analysis

Explanation:

ABC analysis is one of the type of inventory method that are basically divided into the three main categories that is A,B and the C categorization.

The main advantage of this type of analysis is that it is categorized on the quantity and the values basis and this analysis is basically keeps the cost in the business under the control. It is also known as the inventory management and the ABC analysis contributed in the overall profit in an organization.

According to the question, the retail manager basically using the ABC analysis for determining the inventory items in the system.

Therefore, Option (D) is correct.

The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambulance. The decision will rest partly on the anticipated mileage" be driven next year. The miles driven during the past 5years are as follows:
Year Mileage
1 3000
2 4000
3 3400
4 3800
5 3700
a) Forecast the mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecast in part (a), (Hint: You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5.

Explanation:

A) using 2-year moving average :

Year 6 : (3800 + 3700) = 7500 / 2 = 3750

2) Mean absolute deviation based on the forecast above :

(3000 + 4000) = 7000/2 = 3500

(4000 + 3400) = 7400/2 = 3700

(3400 + 3800) = 7200/2 = 3600

3000

4000

3400 __3500__100

3800__3700__100

3700__3600__100

Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100

C) weight of 0.4 and 0.6

(0.4*3000 + 0.6*4000) = 3600

(0.4*4000 + 0.6*3400) = 3640

(0.4*3400 + 0.6*3800) = 3640

3000

4000

3400 __3600__200

3800__3640__160

3700__3640__60

(200 + 160 + 60) = 420 / 3 = 140

Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry: A. will first decrease, then increase. B. will increase. C. will remain unchanged. D. will decrease.

B. will increase

Explanation:

Assuming that 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry will increase .Because after trade, assuming firms in both countries make economic (excess) profits, this will attract entry of other firms into the industry in both markets. So, number of firms will increase.The correct answer is Option (B).

A Nike women's-only store in California offers women's running, training, and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of \$437,000 per year and is located on prime real estate in the center of town. The store owner pays \$18,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add \$7,700 per month to her firm's profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store's profits. What is the opportunity cost of continuing to operate the fitness studio within the store?