Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is
a. $1,000;
b. $750; c. $250; d. $25; e. none of these
C
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The combination journal has a column for every account of the business
Indicate whether the statement is true or false
In a surety arrangement, the party who benefits from the bond if the bonded party fails to perform is the
A) principal. B) obligee. C) fidelity. D) surety.
Which of the following is the discount rate that makes the NPV of cash flows produced over time equal to zero?
A) CPR B) IRR C) ROI D) TCO
On January 1, 2016, Darth Corp. issued 50,000 of five-year, $1,000 bonds payable at 104. These bonds were each convertible into 100 shares of $10 par common stock. On January 1, 2019, Darth converted all of these bonds when the stock was selling at $11.50 a share.Required:Complete the matrix below to indicate the amounts that would be recorded for the indicated accounts in the journal entry to record the bond conversion. Then record the journal entry for the bond conversion. ? Loss on Additional ? Bond Conversion Paid-in Capital ? (debit) (credit) ? ? ? Book value method ________ ________ ? ? ? Market value method ________ ________
What will be an ideal response?