Magic Mountain retires its 8% bonds for $127,000 before their scheduled maturity. At the time, the bonds have a face value of 125,000 and a carrying value of $118,000. Record the early retirement of the bonds.
What will be an ideal response?
| ? | Debit | Credit |
| Bonds Payable | 125,000 | ? |
| Loss | 9,000 | ? |
| Discount on Bonds Payable | ? | 7,000 |
| Cash | ? | 127,000 |
| (Entry to record early retirement) | ? | ? |
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Flounder Inc Use the information provided for Flounder Inc to answer the question(s) using the effective interest method. On January 1, 2012, Flounder Inc issued $800,000, 10-year, 9% bonds for $662,356. The bonds pay interest on June 30 and December 31. The market rate is 12%. Refer to the information provided for Flounder Inc What is the carrying value of the bonds after the first interest
payment is made on June 30, 2012? A) $662,356.40 B) $666,097.78 C) $670,063.65 D) $133,902.22
The capacity management approach where a firm purchases peak production from another firm so that internal production remains level and can be done cheaply is
A) time flexibility from workforce. B) the use of seasonal workforce. C) the use of subcontracting. D) the use of dual facilities—dedicated and flexible.
If a product is sold "as is"
A) it is covered by neither express nor implied warranties. B) it is not covered by an express warranty, but is covered by an implied warranty. C) it is not covered by an implied warranty, but can still be covered by an express warranty. D) it can still be covered by both express and implied warranties.
The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited
Indicate whether the statement is true or false