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When the bonds are issued at premium, then the premium amount shall be transferred to account named Premium on issue of Bonds payable. This account will have a credit balance and this balance will be amortized over the life of the bonds on the basis of method used and will get reduced to Nil balance at the end of bond life or at maturity. This unamortized amount shall be added in the nominal
The Nature of account of premium on issue of bonds payable and computation of balance of discount on issue of bonds need to be determined.
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Chapter 14 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
- Please find the correct answerarrow_forwardWhat are the total manufacturing costs for fenix publishing?arrow_forwardPinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and depreciation is $53,000. The tax rate is 37%. What is the net income? Don't Use Aiarrow_forward
- In 2011, It cost Parley Corp. $9 per unit to produce part T5. In 2012, it has increased to $12 per unit. In 2012, Southside Company has offered to provide Part T5 for $7 per unit to Westa. As it pertains to the make-or-buy decision, which statement is true? Need helparrow_forwardABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70 per share. The firm is considering a capital structure with 53% debt at a rate of 5% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued.arrow_forwardTotal fixed cost when nothing is produced?arrow_forward
- What is the net operating income of this financial accounting question?arrow_forwardWhat is the total fixed cost when nothing is produced?arrow_forwardPinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and depreciation is $53,000. The tax rate is 37%. What is the net income?arrow_forward
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