On January 1, 2012, Sunland Company issued $18000000 of 8% ten-year bonds at 103. The bonds are callable at the option of Sunland at 105. Sunland has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2018, when the fair value of the bonds was 96, Sunland repurchased $4020000 of the bonds in the open market at 96. Sunland has recorded interest and amortization for 2018. Ignoring income taxes and assuming that the gain is material, Sunland should report this reacquisition as

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Answer 1

Answer: Based on the information provided, Sunland Company should report the reacquisition of the bonds as an extinguishment or retirement of debt.

When a company repurchases its own bonds before their maturity date, it is considered an extinguishment of debt. In this case, Sunland repurchased $4,020,000 worth of bonds at 96% of their face value, which indicates a discount from the face value of the bonds.

To properly report the reacquisition, Sunland should record the following:

1. Retirement of Bonds Payable: Debit the Bonds Payable account by the face value of the bonds repurchased, which is $4,020,000.
2. Gain on Extinguishment of Debt: Credit the Gain on Extinguishment of Debt account for the difference between the carrying amount of the bonds ($4,020,000 * 96%) and their recorded value on the books.
3. Cash: Credit the Cash account for the amount paid to repurchase the bonds, which is $4,020,000.

It's important to note that the gain or loss on extinguishment of debt should be reported separately on the income statement, typically as a non-operating item. Additionally, the amortization of the bond premium and interest expense should also be recorded, as mentioned in the provided information.

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The net income or net loss is calculated on thea. balance sheet.
b. statement of owner’s equity.
c. income statement.
d. None of the above

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The net income or net loss is calculated on the statement of owner’s equity.

The net income or net loss is calculated on the Income statement. Option (c) is correct.

The Income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.

An income statement is one of the major financialstatements, along with the balance sheet and the cash flow statement, that report a company’s financial performance over a specific accounting period.
The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.

Therefore, The net income or net loss is calculated on the Income statement. Option (c) is correct.

Learn more about Income statement here,

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If an adjustment for $7,500 in accrued revenues is omitted, how will this affect the financial statements?a. There will be no effect on the financial statements.
b. Net income will be understated by $7,500.
c. Accounts Receivable will be overstated by $7,500.
d. Net income will be overstated by $7,500.

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The right answer for the question that is being asked and shown above is that: "c. Accounts Receivable will be overstated by $7,500. " If an adjustment for $7,500 in accrued revenues is omitted, the affect that the financial statements is that accounts Receivable will be overstated by $7,500.

in 1 or 2 sentences identify a change (either increase or decrease) in supply or demand that would cause the equilibrium price to increase

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Let's say that the demand for the product increases, for example more people move into the area and more people need fresh bread in the morning or more people need to use taxis in this are. If the supply doesn't increase at the same time, the equilibrium prize would increase in this case!

What is a sales lead?

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Answer: A sales lead is a person who shows interest in purchasing a product.

Explanation:

A sales lead is known to be an individual who is interested in purchasing a good and will later become a customer to the company. There are different means by which a company can get a sales lead which include: advertising, direct contact with customers and so on.

Sales lead is a prospective consumer of a product or service that is created when an individual or business shows interest and provides his or her contact information.

"The conversion rate of pounds to euros is £1 = 1.13 euros. How many pounds would I get for 55 euros?"

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Answer:

48.672

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Journal entry for goods sold on account rs.8000

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The journal entry is accurately recorded to capture the sale of goods to Rajesh, the cash received through the cheque payment, and the remaining accounts receivable balance.

When goods are sold to Rajesh for Rs 8000, the sales revenue increases. On the debit side, Rajesh's account is debited with Rs 8000 as he owes the business. On the credit side, the Sales account is credited to record the revenue generated from the sale.

Since Rajesh paid Rs 5000 immediately by cheque, the Bank account is debited with Rs 5000 as the business receives cash. Simultaneously, the Accounts Receivable account is credited with Rs 3000, representing the remaining amount that Rajesh still owes.

This journal entry correctly represents the sale, the cash received, and the remaining accounts receivable balance resulting from the transaction with Rajesh. This showcases the proper accounting of the transaction within the business's financial records.

Complete Question:Pass journal entry Goods sold to Rajesh for rs 8000. He paid ruppees 5000 by cheque immediately? Explain.

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Here's a journal entry for the goods sold on account for Rs.8000:

Accounts Receivable (Debit) - Rs.8000
Sales Revenue (Credit) - Rs.8000

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