Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $9 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018. Any earned but unpaid wages will be paid during the first quarter of 2019. Using only the information provided, which of the following statements is most accurate?

a. Liabilities increased by $1.0 million in 2018
b. Liabilities increased by $3.0 million in 2018
c. Assets decreased by $5.0 million in 2018
d. Retained earnings decreased by $10.0 million in 2018
e. Retained earnings decreased by $7.0 million in 2018

Answers

Answer 1

Answer: a. Liabilities increased by $1.0 million in 2018

Explanation:

In 2018, $9 million was used to settle the wage debt of 2017 and the remainder was used to settle the wages in 2018.

The money remaining in cash after the wage settlement was:

= 9,000,000 - 2,000,000 - 8,000,000

= -$1,000,000

This means that $1,000,000 of wages was not settled in 2018 which means that this would have to go to the Wages Payable account to signify that the company owes wages.

This account is a liability account so liabilities in 2018 would increase by $1,000,000.


Related Questions

Investment X offers to pay you $4,020 per year for 12 years, whereas Investment Y offers to pay you $2,041 per year for 7 years. How much higher is the present value investment X if the discount rate is 11 percent? Round to nearest whole number.

Answers

Answer:

$16,481.68

Explanation:

Note that the present value of each yearly cash inflow can be determined using the formula provided below:

PV of cash inflow=cash inflow/(1+discount rate)^n

n is the year in which the cash inflow is expected, it is 1 for year 1 cash inflow, 2 for year 2 and so on.

PV of Investment X=$4,020/(1+11%)^1+$4,020/(1+11%)^2+$4,020/(1+11%)^3+$4,020/(1+11%)^4+$4,020/(1+11%)^5+$4,020/(1+11%)^6+$4,020/(1+11%)^7+$4,020/(1+11%)^8+$4,020/(1+11%)^9+$4,020/(1+11%)^10+$4,020/(1+11%)^11+$4,020/(1+11%)^12

PV of investment X=$26,099.27

PV of investment Y=$2,041/(1+11%)^1+$2,041/(1+11%)^2+$2,041/(1+11%)^3+$2,041/(1+11%)^4+$2,041/(1+11%)^5+$2,041/(1+11%)^6+$2,041/(1+11%)^7

PV of investment Y=$9,617.59  

the difference in PV=$26,099.27-$9,617.59

the difference in PV=$16,481.68  

The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.

a. True
b. False

Answers

Answer: True

Explanation:

Net present value (NPV) simply refers to the difference that is gotten between the present value of the cash inflows and that of the cash outflows over a particular period of time.

The net present value is used in investment planning and capital budgeting to determine the profitability of a project.

Therefore, the correct option is true.

The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as:

Answers

Answer:

vacancy

Explanation:

Vacancy. The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as. Overage rent.

Betty (25 years old) studied music education in college and graduated a year ago. She currently works as a music teacher at a year-round private middle school. Her gross pay is $39600 a year, or $3300 a month. After taxes, health insurance, and other paycheck deductions, her net pay is $35900 a year. Based on recommended guidelines, how much money should Betty be saving each month

Answers

Answer:

Based on recommended guidelines, Betty should be saving at least $598.33 each month.

Explanation:

a) Data and Calculations:

Gross pay per year = $39,600

Gross pay per month = $3,300 ($39,600/12)

Net pay per year after deductions = $35,900

Total deductions for taxes, health insurance, etc. = $3,700 ($39,600 - $35,900)

Net pay per month after deductions = $2,992 ($35,900/12)

b) Based on the 50-30-20 budgeting method of spending 50% income on essentials, saving 20%, and leaving 30% for discretionary purchases, Betty should be saving at least $598.33 per month ($2,992 * 20%).

The reason for failure of quality improvement efforts ismanagers continue to focus on short-term financial results.managers instinctively blame employees when there is a quality failure.managers interfere with teamwork.all of the above.

Answers

Answer:

managers instinctively blame employees when there is a quality failure, managers continue to focus on short-term financial results,and managers interfere with teamwork

Explanation:

Quality improvement can be regarded as systematic as well as formal approach used in analysis of practice performance as well as efforts used in improving performance. variety of this approaches such as

QI models enables one in collections and analysis of data and test change.

It should be noted that The reason for failure of quality improvement efforts is

that;

1)managers instinctively blame employees when there is a quality failure,

2) managers continue to focus on short-term financial results,

3)managers interfere with teamwork

. If the prices of goods and services were expressed in terms of $20 for a shirt, $100 for a purse, what function of money is being described here?

Answers

Answer: unit of account.

Explanation:

Money is anything that's generally accepted by the people and used for making purchases. There are different functions of money such as:

• Means of payment

• Store of value

• Unit of account

• Standard for defered payment

If the prices of goods and services were expressed in terms of $20 for a shirt, $100 for a purse, the function of money that is shown here is the unit of account.

Unit of account simply means the measurement of value. This is something through which goods can be valued.

At the end of year 8, Shore Co. held trading securities that cost $17,500 and which had a year-end market value of $19,000. All of these securities were sold during year 9 for $22,000. For the year ended on December 31, year 8, Shore should report a gain of

Answers

Answer:

$1,500

Explanation:

Calculation to determine what Shore should report as a gain

Using this formula

Unrealized gain=Market value-Trading securities value

Let plug in the formula

Unrealized gain=$19,000-$17,500

Unrealized gain=$1,500

Therefore Shore should report a gain of $1,500

The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is priced to yield 12%, what is the bond's value today

Answers

Answer:

Bond Price  = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment,  annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.  

Coupon Payment (C) = 1000 * 10% = $100

Total periods remaining (n) = 3

r or YTM = 12%  

 Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12]  + 1000 / (1+0.12)^3

Bond Price  = $951.9633746 rounded off to $951.96

Zeta, Inc., a calendar year taxpayer, suffers a casualty loss of $45,000. Zeta recovered insurance of $30,000. How much of the casualty loss will be a tax deduction to Zeta, Inc.

Answers

Answer:

$15,000

Explanation:

Calculation to determine How much of the casualty loss will be a tax deduction to Zeta, Inc.

Using this formula

Casualty loss tax deduction=Casualty loss-Insurance recovered

Let plug in the formula

Casualty loss tax deduction=$45,000-$30,000

Casualty loss tax deduction=$15,000

Therefore the amount of the casualty loss that will be a tax deduction to Zeta, Inc. is $15,000

If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be _____.

Answers

Answer:

High

Explanation:

Entrants can be regarded as firms that are willing in entering a particular industry. As regards to market theory, a potential entry can become actual entry into a market on some condition such as when existing firms that are in the market have their earns above the Normal profit. It should be noted that If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be High

What does project failure mean? What are some examples?

Answers

Answer:

that's mean A project is considered a failure when it has not delivered what was required, in line with expectations

Explanation:

Therefore, in order to succeed, a project must deliver to cost, to quality, and on time; and it must deliver the benefits presented in the business case.

CVS pharmacy collects data from bar-coded products. These data can be evaluated and combined to monitor which CVS products are in demand by customers. CVS uses this method to track pricing data to make sure that CVS pricing is competitive. This is an example of _______.

Answers

Answer:

InfoScan.

Explanation:

A UPC is an acronym for universal product code. UPC is typically used for the identification of a specific product and its manufacturer (vendor) through a unique code that is printed on the product.

Basically, a universal product code (UPC) comprises of two (2) main parts;

A machine-readable barcode that contains sets of vertical black lines.

A unique twelve (12) digit number placed beneath or adjacent to the machine-readable barcode.

The first six-digits of the UPC represents the manufacturer and is printed on all of its products while the next five-digits is the product's unique reference number (item number) and the last digit is typically known as a check digit, used for the verification of the authenticity of a UPC.

Generally, the universal product code are usually scanned with a barcode scanner and this makes it easier to identify a product, as well as its price.

In this scenario, CVS pharmacy collects data from bar-coded products, which can be evaluated and combined to monitor its products that are in demand by customers. Also, this method is used to track pricing data to make sure that its pricing remains competitive among rivals. Thus, thiis is an example of InfoScan used for systemically scanning price information on products.

The following information is available for Kiss Company: Sales$100,000 Operating expenses$94,000 Operating assets$40,000 Stockholder's equity$25,000 Cost of capital 10% What is Kiss Company's residual income

Answers

Answer:

the residual income is $2,000

Explanation:

The computation of the residual income is shown below:

= Operating income - rate of return × operating assets

= ($100,000 - $94,000) - (10% × $40,000)

= $6,000 - $4,000

= $2,000

hence, the residual income is $2,000

The same is to be considered and relevant

On October 6, 2021, Ronan Corp. sold land to Bane Co., its wholly owned subsidiary. The land cost $72,400 and was sold to Bane for $96,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?a. No gain may be recognized.b. As Bane uses the land.c. When Bane Co. sells the land to a third party.d. Proportionately over a designated period of years.e. When Bane Co. begins using the land productively.

Answers

Answer:

c. When Bane Co. sells the land to a third party

Explanation:

As in the case of the consolidated financial statement no gain or loss should be recognized when there is an intercompany transactions also it would be removed at the time of consolidation

So the gain that should be recognized at the time of sale of the land would occur when the company sold the land to the third party

Therefore the option c is correct

true or false
2. Determining the producers preferences of products are
important when thinking of starting a business.​

Answers

Explanation:

The answer is True!!!!!!!

A sum of $5,000 is invested for five years with varying annual interest rates of 9%, 8%, 12%, 6%, and 15%, respectively (for example, in the first year 9% interest is accrued and 8% in the second year and so on). The future amount after 5 years is equal to ____________.

Answers

Answer:

The future amount after 5 years is equal to $8,036.04.

Explanation:

This can be calculated using the future value (FV) formula as follows:

FV after 1 year = Invested amount * (100% + Year 1 interest rate)^Number of year = $5,000 * (100% + 9%)^1 =  $5,450.00

FV after 2 years = FV after 1 year * (100% + Year 2 interest rate)^Number of year = $5,450 * (100% + 8%)^1 = $5,886.00

FV after 3 years = FV after 2 years * (100% + Year 3 interest rate)^Number of year = $5,886 * (100% + 12%)^1 = $6,592.32

FV after 4 years = FV after 3 years * (100% + Year 4 interest rate)^Number of year = $6,592.32 * (100% + 6%)^1 = $6,987.86

FV after 5 years = FV after 4 years * (100% + Year 5 interest rate)^Number of year = $6,987.86 * (100% + 15%)^1 = $8,036.04

Therefore, the future amount after 5 years is equal to $8,036.04.

Note: The number of year used in each of the calculation above is 1 because the interest was changing after one year.

f an asset was purchased on January 1, Year 1, for $140,000 with an estimated life of 5 years, what is the accumulated depreciation at December 31, Year 4

Answers

Answer:

The answer is "[tex]\$ 112,000[/tex]"

Explanation:

[tex]\text{Straight-line method depreciation}=\frac{Asset\ costs}{Utility \ of \ life}[/tex]

                                                     [tex]= \frac{\$ 140,000}{5}\\\\= \$ 28,000[/tex]

On 31 December, accumulated depreciation:

 [tex]= 4 \ years \times \$ 28,000\\\\=\$ 112,000[/tex]

Creating a Budget
Before you can make a spending plan that works for your particular situation, you'll need to understand your spending priorities. What must you spend money on, and what items do you simply want? First, make sure you understand the following terms:
budget: a plan for saving and spending
expenditure: the amount of money spent
necessity: an item that a person must have, such as housing, clothing, or food
luxury: an item that offers physical comfort or enjoyment but is not necessary for life and health.
1. Classify each of the following expenditures as a necessity or a luxury. If any item can be considered either a necessity or a luxury, depending on the situation, classify it as either.
Expenditure Necessity Luxury Either
a. Auto insurance
b. Clothing for school
c. Concert tickets
d. Dinner for two at the newest
e. restaurant in town Groceries
f. Music downloads
g. Medical treatment for strep throat
h. Theme park tickets
i. New car
j. Rent
k. School lunches
I. School ski trip
m. Cell phone service
2. For those items that you indicated could be either necessities or luxuries, describe when you would consider them necessities and when you would view them as luxuries.
MAKING A BUDGET
3. Income First, write down your weekly income: $______.
4. Expenditures For one week, keep track of all of your expenditures. At the end of the week, put the totals in the table below.
Weekly Expenditure Current Amount
Clothing $
Debt repayment (monthly payment + 4) $
Entertainment $
Food (including groceries, meals
out, and snacks) $
Rent and utilities (monthly payment = 4) $
Transportation (own car, ridesharing, public
transportation, etc.) $
Personal care items $
Other $
Total Weekly Expenditures $
5. Subtract your total expenditures from your weekly income.
6. Revised budget
At the end of the week, did you have any money left? Or did you spend more than you earned? If you want to make better use of your money, take a look at how you're spending it and decide where you can trim expenditures. You may find that you could be spending your money on something you really want.
Weekly Expenditure New Budget Actual Spending
Clothing $ $
Debt repayment (monthly payment + 4) $ $
Entertainment $ $
Food (including groceries, meals out,
and snacks) $ $
Rent and utilities (monthly payment + 4) $ $
Transportation (own car, ridesharing,
public transportation, etc.) $ $
Personal care items $ $
Other $ $
Total Weekly Expenditures $ $
7. Using your revised budget as a guide, record your income and expenses for another week. How much money were you able to save?

Answers

Answer:

a. Auto insurance - Expenditure

b. Clothing for school - necessity

c. concert tickets - luxury

d. Dinner for two at the newest - luxury

e. Restaurant in town groceries - expenditure

f. music downloads - luxury

g. medical treatment for strep throat - necessity

h. Theme park tickets - luxury

i. New car - luxury

j. Rent - expenditure

K. school lunches - necessity

l. school ski trip - expenditure

m. Cell phone service - necessity

Explanation:

2. Necessity is anything without which survival of a person is not possible. Luxury is anything which adds value to the living standard of a person but survival without such thing is possible.

3. My weekly income is $200

4. Clothing $20

Debt repayment $50

entertainment $30

Food $45

Rent and utilites $25

transportation $10

Personal care items $5

Others $3

total weekly expenditure $188

5. $200 - $188 = $12

6. Yes i have $12 as saving at the end of the week.

ou plan to deposit $5,900 at the end of each of the next 20 years into an account paying 10.8 percent interest. a. How much will you have in your account if you make deposits for 20 years

Answers

Answer:

$326,622.73

Explanation:

Calculation to determine How much will you have in your account if you make deposits for 20 years

Using this formula

Future value = Annuity × {( 1 + interest rate) ^ time period - 1} ÷ interest rate

Future value = $5,900 × {( 1 + 0.097 ^ 20 years - 1} ÷ 0.097

Future value= $5,900 × 55.3597842916

Future value= $326,622.73

Therefore the amount you will have in your account if you make deposits for 20 years is $326,622.73

Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of May:

Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base
Materials handling $6,300 Number of parts 9,100 parts
Assembling $14,000 Number of parts 9,100 parts
Packaging $2,680 Number of bookshelves 910 bookshelves

Required:
Each bookshelf consists of 10 parts. The direct materials cost per bookshelf is $32.What is the total manufacturing cost per bookshelf?

Answers

Answer:

Total unitary manufacturing cost= $57.25

Explanation:

First, we need to calculate the activities rates:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 6,300/9,100= $0.69 per part

Assembling= 14,000/9,100= $1.54 per part

Packaging= 2,680/910= $2.95 per bookshelve

Each bookshelf consists of 10 parts. The direct materials cost per bookshelf is $32.

Now, we can allocate conversion costs to each unit:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Materials handling= 0.69*10= $6.9

Assembling= 1.54*10= $15.4

Packaging= 2.95*1 = $2.95

Total allocated costs per unit= $25.25

Finally, the total unitary manufacturing cost:

Total unitary manufacturing cost= 32 + 25.25

Total unitary manufacturing cost= $57.25

Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders

Answers

Answer:

$5,600

Explanation:

Calculation to determine the total amount that will be paid to common stockholders?

Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]

Total amount paid to common stockholders=$44,000-($9,600*4 )

Total amount paid to common stockholders=$44,000-$38,400

Total amount paid to common stockholders=$5,600

(2014-2017=4)

Therefore the total amount that will be paid to common stockholders is $5,600

1. Hayes Enterprises began 2003 with a retained earnings balance of $820,000. During 2003, the firm earned $470,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2003, the firm's retained earnings totaled $1,040,000. The firm had 120,000 shares of common stock outstanding during 2003.

a. Prepare a statement of retained earnings for the year ended December 31, 2003, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2003.)

b. Calculate the firm's 2003 earnings per share (EPS).

c. How large a per-share cash dividend did the firm pay on common stock during 2003?

Answers

Answer:

Hayes Enterprises

a. A Statement of Retained Earnings for the year ended December 31, 2003

January 2003 Retained Earnings Balance  $820,000

After taxes earnings during 2003                  470,000

Retained earnings available =                    $1,290,000

Preferred dividends =                                       (47,000)

Retained earnings available for common $1,243,000

Common stock dividends =                          (203,000)

Retained Earnings Balance =                    $1,040,000

b. 2003 Earnings per share (EPS) = $1.69

c. The company paid $1.69 cash dividend to common stock during 2003.

Explanation:

a) Data and Calculations:

January 2003 Retained Earnings Balance  $820,000

After taxes earnings during 2003                  470,000

Retained earnings available =                    $1,290,000

Preferred dividends =                                       (47,000)

Retained earnings available for common $1,243,000

Common stock dividends =                          (203,000) ($1,243,000 -$1,040,000)

Retained Earnings Balance =                    $1,040,000

Outstanding common stock shares = 120,000

What are some items that you like to buy or wish you could buy?

Answers

Answer:

computer or brainly plus

In order to buy something you need enough money. I would buy something useful that I can still afford. Something like an sd card is something I've needed for a long time...

A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and lead time is two days. They use an average of 11 saw blades per day. The standard deviation of use over a six-day period is 9 saw blades. Saw blades aren't the most critical item they carry, but the manager would like to limit the probability of a stockout to 2.5% of the time. What should their restocking level be

Answers

Answer:

the restocking level is 147 units

Explanation:

The computation of the restocking level is shown below:

= (11 × (2 + 4))  + 9 × 1.96

= 147 units

The 1.96 comes from

= 100 - 2.5%

= 97%

The value of z for 97% is 1.96

Hence, the restocking level is 147 units

The same would be considered and relevant too

the most effective use of the interim ___ is to establish cost standards and compare the actual amount with the budgeted amount for that time period

Answers

Answer:

income statement

inventory analysis (w)

Explanation:

Suppose that Greece and Germany both produce oil and shoes. Greece's opportunity cost of producing a pair of shoes is 5 barrels of oil, while Germany's opportunity cost of producing a pair of shoes is 11 barrels of oil.

1. By comparing the opportunity cost of producing shoes in the two countries, you can tell that _____ has a comparative advantage in the production of shoes and _____ has a comparative advantage in the production of oil.
2. Suppose that Greece and Germany consider trading shoes and oil with each other. Greece can gain from specialization and trade as long as it receives more than _____ of oil for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than _____ for each barrel of oil it exports to Greece.
3. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of oil) would allow both Germany and Greece to gain from trade?

a. 1 barrel of oil per pair of shoes
b. 17 barrels of oil per pair of shoes
c. 9 barrels of oil per pair of shoes
d. 10 barrels of oil per pair of shoes

Answers

Answer:

1. Greece, Germany

2. 2.2 barrels of oil, 0.45 pairs of shoes

3. d. 10 barrels of oil per pair of shoes

Explanation:

a) Data and Calculations:

To produce a pair of shoes costs Greece 5 barrels of oil

To produce a pair of shoes costs Germany 11 barrels of oil

b) This means that it costs Germany more than Greece to produce a pair of shoes, and Germany produces a lot of oil to the extent that she is willing to exchange her 11 barrels of oil for a pair of shoes while Greece can only exchange 5 barrels of oil for a pair of shoes.

g This year, Nilo Inc. granted nonqualified stock options to 230 employees. For financial statement purposes, Nilo recorded a $179,200 expense for the estimated value of the options. As a result of this transaction, Nilo has a:

Answers

Answer:

temporary unfavorable book/tax difference

Explanation:

Given that

There is an unqualified stock options for 230 employees

And, the expenses are recorded at $179,200

So based on the above information the nike have temporary also adverse book or tax difference

as this given transaction does not represent the permanent one so it should be considered as temporary

When there is excess supply (surplus) what will happen?

Answers

Answer:

If there is excess supply, then the price will fall.

Explanation:

More supply would reduce the demand and hence, price would adjust to meet the equilibrium between demand and supply

A Market Surplus occurs when there is excess supply- that is quantity supplied is greater than quantity demanded. In this situation, some producers won't be able to sell all their goods. This will induce them to lower their price to make their product more appealing.

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $710,000 $630,000 $565,000 Sales on account 5,691,000 4,628,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume a 365-day year. Do not round intermediate calculations. Round your answers to one decimal place. 20Y3 20Y2 1. Accounts receivable turnover fill in the blank 2 fill in the blank 3 2. Number of days' sales in receivables fill in the blank 4 days fill in the blank 5 days The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.

Answers

Answer:

Sigmon Inc.

1. Accounts receivable turnover = Sales/Average accounts receivable

20Y3 = 8.49x

20Y2 = 7.75x

2. Number of days sales in receivables = 365/Accounts receivable turnover

20Y3 = 43 days

20y2 = 47.1 days

3. The collection of accounts receivable has improved from 47.1 days to 43 days. This can be seen in both the in accounts receivable turnover and the in the collection period.

Explanation:

a) Data and Calculations:

Terms of all sales are 2/10, n/45

                                                             20Y3          20Y2           20Y1

Accounts receivable, end of year $710,000   $630,000   $565,000

Sales on account                          5,691,000  4,628,500  

Average accounts receivable        670,000     597,500

1. Accounts receivable turnover = Sales/Average accounts receivable

20Y3 = 8.49x ($5,691,000/$670,000)

20Y2 = 7.75x ($4,628,500/$597,500)

2. Number of days sales in receivables = 365/Accounts receivable turnover

20Y3 = 43 days (365/8.49)

20y2 = 47.1 days (365/7.75)

On January 1, 2020, Crane Company purchased 12% bonds having a maturity value of $430,000, for $462,600.36. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
1. Prepare the journal entry at the date of the bond purchase.
2. Prepare a bond amortization schedule.

Answers

Answer and Explanation:

1. The journal entry is given below;

On Jan 1, 2020

Investment in bond Dr $430,000.00  

Premium on bond investment Dr $32,600.36  

        To Cash  $462,600.36

(being the investment in bond is recorded)

2. The preparation of the bond amortization schedule is presented below;

Date      Cash          Interest         Premium         Carrying amount of

            Received     revenue Amortized bonds

1-Jan-20                                                                   $462,600.36

1-Jan-21 $51,600.00    $46,260.04   $5,339.96   $457,260.40

  (12% of $430,000)

1-Jan-22 $51,600.00   $45,726.04    $5,873.96   $451,386.44

1-Jan-23  $51,600.00   $45,138.64    $6,461.36   $444,925.08

1-Jan-24 $51,600.00   $44,492.51    $7,107.49     $437,817.59

1-Jan-25   $51,600.00   $43,782.41   $7,817.59      $430,000.00

Other Questions
A tank has the shape of an inverted circular cone with height 16m and base radius 3m. The tank is filled with water to a height of 9m. Find the work required to empty the tank by pumping all of the water over the top of the tank. Use the fact that acceleration due to gravity is 9.8 m/sec2 and the density of water is 1000kg/m3. Round your answer to the nearest kilojoule. is "6x (3x + 8) = 16x" a no solution Find the midpoint (1,-8) (-7,0) Pleaseeeeeeeee helppppp someone pleaseeeeeee Im begging uuuuuuuuuuuu Task 1. A 36-year-old woman. She doesn't make any complaints. A preventive examination revealed changes in the right lung. Objectively: the general condition is satisfactory. The skin is of the usual color. Blood pressure is 130/90 mm Hg, pulse is 78 bpm, BR (breathing rate) is 16 bpm. Percussive posterior above the right shoulder blade slight shortening of the percussive sound. Auscultation is vesicular respiration.X-ray examination subpleurally, in the 6th segment of the lower lobe of the right lung, a rounded formation 3.0 cm in diameter, heterogeneous structure, with decay. The contours are clear and sometimes uneven. In the adjacent parts of the lung tissue, against the background of a deformed pattern, there are single dense foci. The pleura is thickened at this level.Task.1. What is the presumptive diagnosis?2. List the typical clinical symptoms3. With what diseases should the presumptive diagnosis be differentiated?4. Are these radiological symptoms and localization characteristic of this disease?5. What radiation methods are used or can be recommended as clarifying What is 1/3 minus 1/6 Both microscopy and motility agar are used to confirm microbial mobility. Research techniques involving microscopic determination of mobility and explain why both microscopy and motility agar are required to determine motility in some microbes. please mark all that apply! Which of the following phase changes describes what ishappening in the following endothermic process?H20 (1) + heat --> H2O (g)O meltingo freezingo boilingO condensing Determine whether the statement is always, sometimes, or never true. Lines AB, CD, and EF determine plan P. If GH intersects AB, then GH lies on plan P. LaToya is creating a program that will teach young children to type. What keyword should be used to create a loop that will print try again until the correct letter is typeda. printb. randomc. elsed. while Solve 2x^2+ x - 4= 0.x2 += 0DONE How do scientists think Prokaryotic Cells contributed to changing Earths atmosphere to include more oxygen? THE SUI DYNASTY1) When did the Sui Dynasty rule China? Why is this dynasty famous?2) Who unified China and established the Sui Dynasty?3) What are three accomplishments of the Sui Dynasty? All prokaryotes are _________ eukaryotes More complex than Smaller than Larger than Similar in size to why were ships so important to Britain? what is acid? Explain it How do I do this please help how does the nervous system communicate with other parts of the body? What is the length of side c rounded to the nearest tenth of an inch?17 in.19 in.The length of side c rounded to the nearest tenth of an inch is in.