On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $315,000 for its outstanding bonds that have a carrying value of $319,000 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following? Multiple Choice Debit to Bonds Payable $315,000. Debit to Premium on Bonds Payable $9,000. Credit to Gain on Retirement of Bonds of $4,000. Credit to Cash of $315,000. Debit to Bonds Payable $310,000.

Question

06-12-2022
Business

Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $315,000 for its outstanding bonds that have a carrying value of $319,000 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following? Multiple Choice Debit to Bonds Payable $315,000. Debit to Premium on Bonds Payable $9,000. Credit to Gain on Retirement of Bonds of $4,000. Credit to Cash of $315,000. Debit to Bonds Payable $310,000.

Sagot :

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.

After graduating with a master's degree, Zari combined all of her student loans into a single loan of $23,000.00 with an interest rate of 3.2% compounded quarte

¿Cuál propiedad de los números reales se utiliza en la siguiente operación?a) Distributiva b) Conmutativa c) Asociativa d) Ley de los signos [tex] 25 + 80 =

Identify the equilibrium constant expression for the following reaction:[tex]\[2 \text{N}_2\text{O}_5(g) \rightleftharpoons 4 \text{NO}_2(g) + \text{O}_2(g)\][/

If you reverse Reaction 2 and combine the reactions, which substances do not cancel? Check all that apply:- [tex]H_2[/tex]- [tex]HCl[/tex]- [tex]H_2O[/tex]- [te

Glycerol [CH2(OH)CH2(OH)CH2(OH)] is a common ingredient in pharmaceutical and personal-care products. Calculate the boiling point of a solution containing 7.75

Given the reaction:[tex]\[ 2 C_2H_2(g) + 5 O_2(g) \rightarrow 4 CO_2(g) + 2 H_2O(g) \][/tex]How many liters of [tex]$ C_2H_2 $[/tex] react with 12.0 mol [tex]

A scientist is using a generative AI model to create a summary of a research paper. The scientist then enters the prompt "expand more on point number 3" and get

Identify which of the following expressions are polynomials:(i) [tex]$2x^2 + 5x + 6$[/tex](ii) [tex]$x^2 + 6x$[/tex](iii) [tex]$\sqrt{2}x^2 + \sqrt{3}x$[/

In a class of 64 students, the number of boys is [tex]$\frac{3}{5}$[/tex] of the number of girls. Find the number of girls and boys.

You are a manager in charge of monitoring cash flow at a major publisher. Paper books comprise 80 percent of your revenues, which grow about 2 percent annually.

Parrain Parrain · Answer 1 · 2022-12-12T12:55:17-05:00

When retiring the bond, the entry that will not be included is A. Debit to Bonds Payable $315,000.

How is a bond retired ?

When a bond is retired, it means that the company will be paying off the total value of the bond and therefore removing it as a debt from its books. The interest to be paid on the bond, and its current market value are considered.

The bonds payable account for MJKB Incorporated will be debited by the amount of $ 310, 000 which is the par value of the bond and not the amount that was paid for the bond. The amount that was paid of $ 315, 000 will be credited to cash to show that the cash account is decreasing. This means that the bonds payable account will be debited with $ 310, 000 and not $ 315, 000.

Find out more on retiring bonds at https://brainly.com/question/29609509

#SPJ1

Sagot :

How is a bond retired ?

Other Questions