Answer:
income statement under variable costing.
Sales (5,100 × $92) $469,200
Less Cost of Sales :
Opening Inventory $0
Add Cost of Goods Manufactured (6,200 × $ 25.20) $156,240
Less Closing Inventory (1,100 × $ 25.20) ($27,720) ($128,520)
Contribution $340,680
Less Expenses:
Fixed overhead costs are ($81,840)
fixed selling and administrative costs ($65,400)
Variable selling and administrative expenses ($ 2.20×5,100) ($11,220)
Net Income / (loss) $182,220
Explanation:
Only the Variable production costs are included as cost of goods sold expense.
Both the Non - Manufacturing expenses (Selling and Administrative) and Fixed Manufacturing Overhead are treated as period cost under variable costing.
Sarasota Corporation had the following activities in 2017
1. Payment of accounts payable $817,000
2. Issuance of common stock $230,000
3. Payment of dividends $377,000
4. Collection of note receivable $97,000
5. Issuance of bonds payable $545,000
6. Purchase of treasury stock $42,000
Compute the amount Sarasota should report as net cash provided (used) by financing activities in its 2017 statement of cash flows. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).,)
Net cash __________ by financing activitiess _________.
Answer:
Net Cash provided in financing activities is $356,000
Explanation:
The cash flow from financing activities are the funds that the business took in or paid to finance its activities. These involve long term liability, issuance of stock, short term borrowing etc.
The financing activities in Sarasota Corporation report include; Issuance of common stock, Issuance of bonds payable, Payment of dividends, Purchase of treasury stock.
Cash provided by financing activities for the year 2017
Issuance of common stock = $230,000
Issuance of bonds payable. = $545,000
Payment of dividends = - $377,000
Purchase of treasury stock = -$42,000
Net Cash provided in financing activities = $356000
A 22-year, semiannual coupon bond sells for $1,066.57. The bond has a par value of $1,000 and a yield to maturity of 6.78 percent. What is the bond's coupon rate
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
On June 30, 2020, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,918, a yield of 12%. Auer uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)(1) The issuance of the bonds on June 30, 2020.(2) The payment of interest and the amortization of the premium on December 31, 2020.(3) The payment of interest and the amortization of the premium on June 30, 2021.(4) The payment of interest and the amortization of the premium on December 31, 2021
Answer:
(1) The issuance of the bonds on June 30, 2020.
Dr Cash 4,300,918
Cr Bonds payable 4,000,000
Cr Premium on bonds payable 300,918
(2) The payment of interest and the amortization of the premium on December 31, 2020.
Dr Interest expense 258,055.08
Dr Premium on bonds payable 1,944.92
Cr Cash 260,000
(3) The payment of interest and the amortization of the premium on June 30, 2021.
Dr Interest expense 257,938.38
Dr Premium on bonds payable 2,061.62
Cr Cash 260,000
(4) The payment of interest and the amortization of the premium on December 31, 2021
Dr Interest expense 257,814.69
Dr Premium on bonds payable 2,185.31
Cr Cash 260,000
Explanation:
amortization of bond premium for first coupon payment:
($4,300,918 x 6%) - ($4,000,000 x 6.5%) = $258,055.08 - $260,000 = -$1,944.92
amortization of bond premium for second coupon payment:
($4,298,973.08 x 6%) - ($4,000,000 x 6.5%) = $257,938.38 - $260,000 = -$2,061.62
amortization of bond premium for third coupon payment:
($4,296,911.46 x 6%) - ($4,000,000 x 6.5%) = $257,814.69 - $260,000 = -$2,185.31
Assume that demand increases from D1to D2; in the new long run equilibrium, price settles at a level between P1and P2This means that the industry in question is a(n) __________-cost industry.a. decreasingb. increasingc. constantd. marginale. low
Answer:
The answer is B. Increasing
Explanation:
An increasing-cost industry is an industry whose costs for production increase as more companies compete.
Why is this so? - This is because each new company in the industry increases its demand for supplies and factors needed for production.
A decreasing‐cost industry is one where costs of production reduces as the industry expands.
An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit for this position
Answer: $2
Explanation:
From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.
The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:
= $40 - $38
= $2
Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer. Prepare the July 31 journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
The Designer Journal Entry
Date General Journal Debit Credit
July 31 Unearned Revenue $7,500
Design Services Revenue $7,500
Magic Realm, Inc., has developed a new fantasy board game. The company sold 48,500 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $873,000 per year, and variable expenses are $41 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 60,625 games next year (an increase of 12,125 games, or 25%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Answer:
1a.
Contribution format income statement for the game last year
Sales ( 48,500 games × $61) $2,958,500
Less Variable Expenses ( 48,500 games × $41) ($1,988,500)
Contribution $970,000
Less Fixed Costs ($873,000)
Net Income / (loss) $97,000
1b. 10.00
2a. 250%
2b. $339,500
Explanation:
Contribution Income Statement : Shows Separately the Variable Costs and Fixed Cost
Degree of operating leverage = Contribution / EBIT
= $970,000 / $97,000
= 10.00
Increase in net operating income = Degree of operating leverage × Percentage Increase in Sales
= 10.00 × 25%
= 250%
Expected amount of net operating income = Last Year`s net operating income × 3.5
= $97,000 × 3.5
= $339,500
George operates a business that generated revenues from services of $50 million in 2019 and reported deductible expenses other than interest of $49 million in 2019, which included depreciation expense of $500,000. The business paid interest expenses of $800,000 in 2019, none of which was for loans used to purchase tax-exempt investments. What is the maximum business interest deduction that George will be eligible to claim this year
Answer:
$750,000
Explanation:
The Adjustable Taxable Income will be calculated first to compute the maximum business interest deduction that is allowable to George.
Step 1. Calculate Net Adjustable Taxable Income
Net Adjustable Taxable Income = Total revenue - Deductible expenses + Disallowed Expenses - Tax Exempt Revenue
Here
Total revenue is $50 million
Deductible expenses are $49 million
Disallowed Expenses includes a depreciation of $0.5 million
Tax Exempt Revenue is zero
So by putting values, we have:
Net Adjustable Taxable Income = $50 million - $49 million + $0.5 million
= $1.5 million
Net ATI = $1.5 million
Step 2. Calculate the maximum business interest deduction which is 50% of Net ATI
Maximum Business Interest Deduction = Net ATI * 50%
= $1.5 * 50% = $0.75 million
So Maximum Business Interest Deduction is $750,000.
A company is considering investing in a new machine that requires a cash payment of $47907 today. The machine will generate annual cash flows of $19946 for the next three years. What is thw internal rate of return if the company buys this machine
Answer:
12%
Explanation:
Calculation for the internal rate of return if the company buys this machine
Using this formula
IRR = Initial investment/Annual Cash flow
Where,
Initial investment =$47,907
Annual Cash flow =$19,946
Let plug in the formula
IRR= $47,907/$19,946
=2.402
Using PV factor table = 2.402
IRR = 12%
Therefore internal rate of return if the company buys this machine will be 12%
Health Foods bonds have 10 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 9%. They pay interest annually and have a 10% coupon rate. What is their current yield
Answer:
The current yield of the bond is 9.73%
Explanation:
We can calculate the Current Yield of the Bond by using the following formula:
Current Yield = Coupon Interest / Current Market Price in step 1 * 100
Current Yield = ($1,000 * 10%) / ($1,064 from step 1) * 100
Current Yield = 9.37%
Step 1. Calculate the current price of the bond:
High fixed costs and low variable costs are typical of which approach? product process mass customization repetitive product and mass customization
Answer:
Product and mass customization.
Explanation:
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.
High fixed costs and low variable costs are typical of product and mass customization.
Hence, the high fixed costs are usually a determinant for pricing a product that aren't produced in mass because to break even, businesses would need to rake in more revenues to meet the the increasing (high) fixed costs.
However, when this products are manufactured in mass, this would help to cut or lower down the total cost of production.
Suppose there are two very similar countries (call them Countries C and D). Both countries have the same population, and they are both experiencing the same population growth (that is, N is identical in both countries, and grows at the same rate g subscript N ). Both countries also depreciate capital at the same rate (d). Suppose that both countries have the same technology and experience the same technological progress (g subscript A is identical in both countries), that both countries have the same savings rate, and that we observe that both countries are in steady state. True or false, output per worker (LaTeX: \frac{Y}{N}Y N ) must be equal in both countries. Group of answer choices
Answer: True
Explanation:
According to the Solow Model, Savings and Investment determine the level of Output, Income and Capital. If these two countries are similar in savings and Investment as well as underlying factors such as population and population growth, it can be said for certain that they should both have the same output. Output per worker is equal in both countries.
Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 35%, and its unlevered cost of capital is 15%. The firm also has outstanding debt of $19.05 million, and it expects to maintain this level of debt permanently. What is the value of Milton Industries without leverage? What is the value of Milton Industries with leverage?
Answer:
1. $33.33 million
2. $40.00 million
Explanation:
The computation of the value of Milton Industries with leverage is shown below:-
Value of Milton Industries without leverage is
= Free cash flow ÷ unlevered cost of capital
= $5 million ÷ 0.15
= $33.33 million
Value of Milton Industries with leverage is
= Value of Milton Industries without leverage + Tax × Debt
= $33.33 million + 0.35 × $19.05 million
= $40.00 million
Therefore we have applied the above formula.
At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year. On the 189th day of the year, Ann sells her half of the Whitman stock to her son, Scott. Becky's stock basis is $41,300. How much of the Whitman loss belongs to Ann and Becky
Answer:
Becky's loss = $60,000
Ann's loss = $31,068
Explanation:
Assuming a 365 day year, the loss allocation should be as follows:
Ann (then Scott) 50% x $120,000 = $60,000Becky 50% x $120,000 = $60,000From the 50% that corresponds to Ann:
Ann = 189/365 x $60,000 = $31,068.49 = $31,068Scott = $60,000 - $31,068 = $28,932Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock three weeks ago was $42.70. Today, RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80. What is the intrinsic value of your put contract
Answer:
$25
Explanation:
We can calculate intrinsic value by intrinsic formula
Formula : intrinsic Value = (purchased price- current price) x 100
intrinsic Value = (45-44.75) x 100
intrinsic Value = $25
Mr. and Mrs. Camarena's AGI (earned income) was $15,410. Their federal income tax withholding was $930. They had no itemized deductions and two dependent children, ages 18 and 19. If Mr. and Mrs. Camarena are entitled to a $4,732 earned income credit, compute their income tax refund. Assume the taxable year is 2019.
Answer: $5,662
Explanation:
In 2019, married couples filling jointly had a standard deduction of $24,400.
Mr. and Mrs. Camarena's AGI of $15,410 is below this and so they will not be taxed as all income below $24,400 for them is not Taxable.
The income tax refund they gain will therefore be just the earned income credit as well as their federal income tax withholding.
= 4,732 + 930
= $5,662
Bank Reconciliation and Entries
The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $11,810. The bank statement indicated a balance of $15,100 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $5,440.
b. A deposit of $5,660, representing receipts from October 31, had been made too late to appear on the bank statement.
c. The bank had collected $2,940 on a note left for collection. The face of the note was $2,790.
d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account.
e. A check drawn for $740 had been incorrectly charged by the bank as $40.
f. Bank service charges for October amounted to $60.
Instructions:
1. Prepare a bank reconciliation.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Answer:
1)
bank statement reconciliation:
bank balance $15,100- outstanding checks -$5,440+ deposits in transit $5,660- error in charging check -$700total $14,620
cash account reconciliation:
cash account balance $11,810
+ note collected $2,940
- error made recording check -$70
- bank service fees -$60
total $14,620
2)
income statement:
interest revenues increase by $150
bank fees increase by -$60
profits increase by $90
assets:
cash increases by $2,810
supplies increase by $70
notes receivable decreases by $2,790
total increase $90
liabilities:
do not change
equity:
increase by $90, since profits increase by $90
cash flow statement:
operating cash flow increases by $2,810
A company's days' cash on hand is computed by dividing: Group of answer choices cash and short-term investments by daily cash operating expenses. cash by total cash operating expenses. cash, short-term investments, and accounts receivable by daily cash operating expenses. average cash over the period by daily cash operating expenses.
Answer:
The answer is A. cash and short-term investments by daily cash operating expenses
Explanation:
This is calculated as follows:
cash and short-term investments(cash equivalents) ÷ daily cash operating expenses.
Cash equivalents are very short-term securities. They are very liquid and can be converted to cash very quickly. Examples are bank accounts short-term securities like treasury bills.
Days cash on hand is the number of days that a firm can afford to pay its operating expenses, given the amount of cash available.
Imagine that you are the supply chain manager for the Magic Widget company and you need to measure your supply chain performance. The chart shows the financial variables that you will need to perform your task.
Financial Variables
Total Assets (in $ billions) 15.3
Cost of Goods Sold (in $ billions) 19.8
Inventory:
Raw Material Inventory (in $ billions) 1.10
Work-in-progress Inventory (in $ billions) 2.20
Finished Goods Inventory (in $ billions) 0.82
Required:
Compute the percentage of assets committed to inventory and inventory turnover. Round your answers to the first decimal place.
Answer:
The percentage of assets committed to inventory is 26.9%.
Inventory turnover is 4.8 times.
Explanation:
Inventory as a percentage of assets = total inventory / total assets × 100
= (1.10 + 2.20 + 0.82) / 15.3 × 100
= 26.9% (rounded)
Inventory turnover = cost of sales / inventory
= 19.8 / (1.10 + 2.20 + 0.82)
= 4.8 times (rounded)
Assume that both firm A and firm B formally agree to each put up $10 million to form firm C. The operations of firm C are restricted to conducting research and development activities for the benefit of firms A and B. Firm C is a _____ of firms A and B.
Answer: a. joint venture.
Explanation:
A Joint Venture refers to when 2 or more entities come together and put up resources necessary to accomplish a certain task or venture that will be beneficial to all of them.
For example, BMW and Toyota jointly started research into utilizing hydrogen fuels and Google cooperated with NASA to create Google Earth.
Firm C is a Joint venture between Firms A and B.
A firm with total liabilities and owners’ equity of $100,000 and net sales of $50,000 would have a total asset turnover of
Answer:
= 50000 / 100000 * 100
= 0.50
Explanation:
If a U.S. company operates within a competitive environment and chooses to offshore part of its production process, the resulting change in the firm’s costs should shift the ______________ curve for its product ___________________, thus _____________ the price of the product being produced.
Answer:
Supply, rightward and lowering, are the right answers.
Explanation:
The offshore production process will affect the supply side, not the demand side so the supply curve will change and it will shift rightwards. The rightwards shift in the supply curve shows that quantity supplied has increased and thus, an increase in quantity will result in the decrease of prices for the commodity.
The specifications for a plastic liner for a concrete highway project calls for thickness of 4.0 mmplus or minus0.08 mm. The standard deviation of the process is estimated to be 0.02 mm.
a) The standard deviation of the process is estimated to be 0.02 mm.
b) The upper specification limit for this product = ? mm (round your response to three decimal places).
c) The lower specification limit for this product = ? mm (round to three decimal places)
d) The process capability index (CPk) = ? (round to three decimal places)
e) The upper specification lies about ? standard deviations from the centerline (mean thickness)
Answer and Explanation:
The computation is shown below:
b. The upper specification limit is
= 4 + 0.08
= 4.080 mm
c. The Lower specification limit is
= 4 - 0.08
= 3.920 mm
d. The process capability index is
= min ((Upper specification limit - Mean) ÷ (3 × Standard deviation)), ((Mean - Lower specification limit)÷ (3 × Standard deviation))
= min (0.08 ÷ (3 × 0.02)), (0.08 ÷ (3 × 0.02))
= min (1.333, 1.333)
So it would be 1.333
e. Upper specification = 4.08 mm
Mean line = 4.0 mm
Now,
The upper specification lies at a distance = Upper specification - Mean line
= 4.08 mm - 4.0 mm
= 0.08 mm
upper specification =Upper specification lies ÷ One standard deviation
= 0.08 mm ÷ 0.02 mm
= 4 mm which is standard deviations from the mean
Complete the following matrix to analyze the human factors that influence organizational change. Write 1 or 2 complete sentences to explain your rationale for each factor. An example has been provided. Human Factors That Influence Organizational Change Example: Resistance Influence on Organizational Change Example of Global Influence (if any) Example of National Influence (if any) Example: Causes delay in implementing change Example: Workers resist change to avoid outsourcing Example: Workers do not know position of the company in the marketplace Organizational Cause of Factor Example: Occurs because of how change is implemented by leadership 1. Loss of control 2. Uncertainty about future 3. Loss of face 4. Concern about competence 5. Fear of more work 6. Past resentments 7. Feeling threatened References
Assume N securities. The expected returns on all the securities are equal to 0.01 and the variances of their returns are all equal to 0.01. The covariances of the returns between two securities are all equal to 0.005.
Answer:
Number of securities in a portfolio = N
Expected returns on all the securities E_i = 0.01
Variances of their returns =0.01
i. Covariances of the returns between two securities = 0.005
Expected return of the portfolio is E(R) = w1R1 + w2Rq + ...+ wn Rn
E(R) =[tex]( \frac{1}{N}*0.01 + \frac{1}{N}*0.01 + .... + \frac{1}{N}*0.01 ) * N[/tex]
E(R) = 0.01
Expected return of N asset portfolio E(R) = 0.01
Variance of N asset portfolio [tex]\sigma ^2 = \frac{ \sum_{k=1}^{n}(r_k- E(r))^2}{n-1}[/tex]
where,
k is the specific return of the asset,
E(r) is the expected return.
ii. As N gets large, the portfolio's diversified risk rapidly decreases.
iii. The portfolio is well-diversified if the assets in a well-diversified portfolio exhibit a negative correlation or less correlation to each other.
Maisley Company decided to analyze certain costs for June of the current year. Units started into production equaled 28,000 and ending work in process equaled 4,000. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $140,000
Answer:
The conversion cost per unit is $4.83
Explanation:
First step is to determine the Total Equivalent units of Production for Conversion costs.
Assuming that Maisley Company uses the FIFO method in its production, the following is the Total Equivalent Units of production for conversion costs :
To Finish Opening Work In Process 0
Started and Completed 28,000
Closing Work In Process (4,000 × 25%) 1,000
Total Equivalent Units of production 29,000
Then find cost per equivalent unit of production for conversion costs.
Cost per equivalent unit = Total Current Period Cost / Total Equivalent Units of production
= $140,000 / 29,000
= $4.827586
= $4.83
Conclusion :
The conversion cost per unit is $4.83
" Frequently, beer manufacturers run television ads showing attractive, young people having fun and, of course, drinking their beer. These ads are designed primarily to create: "
Answer: To create interest in the youths that it's actually for them mostly.
Explanation:
The way an advert is carried out or planned describes who they are communicating to. The content of the advert targets about 80% of it's market by the content it uses when carrying out the advert. When as advert uses young people frequently, it is primarily targeting the young people to build interest in it's product. So the content of an advert describes the market it wants to sell to.
If beer companies makes use of young people for their adverts then it is known that they simply want more patronize and interest from those young people.
Job 590 has a total cost of $ 29 comma 200. It has been charged manufacturing overhead costs of $ 7 comma 000. The rate is 75% of direct labor. What was the amount of direct materials charged to the job?
Answer:
Direct material= $12,867
Explanation:
Giving the following information:
Job 590:
Total cost= $29,200
Manufacturing overhead= $7,000
The rate is 75% of direct labor.
First, we need to calculate the direct labor cost:
Direct labor= allocated overhead/0.75
Direct labor= 7,000/0.75= $9,333
Now, we can calculate the direct material cost:
Total cost= direct material + direct labor + allocated overhead
29,200= direct material + 9,333 + 7,000
direct material= $12,867
Hyperion Manufacturing is expected to pay a dividend of $2.25 per share at the end of the year. The stock sells for $75 per share, and its required rate of return is 12%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate
Answer:
The equilibrium expected growth rate is 9%
Explanation:
Stock Price = Expected Dividend next year / (Required Return - Growth rate)
75 = 2.25/( 12% - growth rate)
75 * ( 12% - growth rate) = 2.25
75 * ( 0.12 - growth rate) = 2.25
9 - 75 * Growth rate = 2.25
9 - 2.25 = 75 * growth rate
6.75 = 75 * growth rate
Growth rate = 6.75 /75
Growth rate = 0.09
Growth rate = 9%
On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $3,200,000. The bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $2,982,557. The bond issuance should be recorded as:
Answer:
Dr Cash 2,982,557
Dr Discount on bonds payable 217,443
Cr Bonds payable 3,200,000
Explanation:
Preparation for the bond issuance Journal entry
Since we were told that the Company has par value of the amount of $3,200,000 and the bond selling price of $2,982,557 which means the bond issuance should be recorded as:
Dr Cash 2,982,557
Dr Discount on bonds payable 217,443
(3,200,000-2,982,557)
Cr Bonds payable 3,200,000