Gomez Corporation issues 500, 10 year, 8% $1000 bonds dates jan 1 2010 at 96. Th

Question

Gomez Corporation issues 500, 10 year, 8% $1000 bonds dates jan 1 2010 at 96. The journal entry to record the issuance will show a :
A. credit to conds payable for 480000.
B.credut ti discount on bonds payable for 20000
C.debit to cash 480000
D.debit to cash of 500000

All of the following are factors that a company should consider before a write down impairment of an assets is recorded expect
A. appraisal of the assets.
B.market trends
C.company profits.
D. obsolescence of the assets.

Goodwill
A.can be definied as normal earnings less accumlated amortication
B/ can be subdivide and sold in parts
C.can only be identified withe the busniness as a whole
D.only recorded when generated internally.
Ervay Company has $500000 of bonds outstanding. The unamortized prenium of $7200. the company redeemed the bonds at 101, what would tbe gain or loss on the redmptionm
A. 2200 loss
B2200 gain
C.5000 loss'
D. 5000 gain

Explanation / Answer

First question is credit to discount on bonds payable for $20,000. The actual cost of the 500 bonds is $500,000, but since they are sold at $960 a piece, it is $480,000. Second: company profits is the only thing that does not deal directly with the assets. Third: C - Goodwill is not something that is tangible. Fourth: 2,200 loss (A)

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.