Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $90
Unitary variable cost= $36
Fixed costs= $135,000
First, we need to calculate the contribution margin per unit.
Contribution margin= selling price - unitary variable cost
Contribution margin= 90 - 36= $54
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 135,000 / 54
Break-even point in units= 2,500 units
When the market rate of interest was 12%, Halprin Corporation issued $257,000, 11%, 10-year bonds that pay interest annually. Use the present value tables below. The selling price of this bond issue was?
Answer:
$242,478
Explanation:
The computation of the selling price of this bond issue is shown below:-
Issue price of bonds = Present value of interest + Present value of maturity payment
= ($257,000 × 11% × 5.65022) + ($257,000 × 0.32197)
= $159,731.72 + $82,746.29
= $242,478.01
or
= $242,478
Therefore for computing the issue price of bonds we simply applied the above formula.
In November, one of the processing departments at Goodsell Corporation had beginning work in process inventory of $36,000 and ending work in process inventory of $35,000. During the month, $427,000 of costs were added to production and the cost of units transferred out from the department was $428,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for November, the total cost to be accounted for would be:__________.a) $890,000b) $71,000c) $463,000d) $926,000
Answer:
c) $463,000
Explanation:
Goodsell Corporation
FIFO Method
Current Costs
Costs Added $ 427,000
Add Beginning Work in Process Inventory $36,000
Total Current Cost $ 463,000
Cost Transferred Out $ 428,000
Add Ending Work in Process Inventory $35,000
Total Current Cost $ 463,000
FIFO assigns the current period costs to the inventories. Current period costs are obtained by adding the costs transferred out and ending inventories costs or beginning costs and costs added.
An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 43; federal income tax withheld, $328; cumulative earnings for year prior to current week, $97,324; social security tax rate, 6.0% on maximum of $104,563; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee?
Answer:
Gross pay = $1,112.5
Explanation:
Basic Pay = Hours worked x hourly rate
Basic Pay = 40 x 25
Basic Pay = $1000
Overtime Pay = Overtime hours x (hourly rate x half of hourly rate)
Overtime Pay = 3 x ( 25 x 1.5)
Overtime Pay = $112.5
Gross Pay = Basic pay + Overtime Pay
Gross pay = $1,000 + 112.5
Gross pay = $1,112.5
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Imposing restrictions on foreign ownership of domestic capital Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing a tax on looms
Answer:
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement
Imposing restrictions on foreign ownership of domestic capital
Explanation:
Samsco has current after-tax operating income of $65 million and a cost of capital of 9.5%. Assume that the firm is in stable growth, growing 3% a year forever and that the reinvestment rate is 35%. What is the return on invested capital
Answer:
10%
Explanation:
Return on Invested Capital = After-tax operating income / Invested capital
After-tax operating income = 65,000,000
Invested capital = ?
Invested capital = After-tax operating income * (1 - Reinvestment rate ) / (Cost of capital - Expected growth rate)
After-tax operating income = 65,000,000
Reinvestment rate = 35%
Cost of capital = 9.5%
Expected growth rate= 3.0%
Invested capital = 65,000,000 * (1 - 35%) / (9.5% - 3%)
Invested capital = 65,000,000 * 65% / 6.5%
Invested capital = $650,000,000
Hence, Return on Invested Capital = $65,000,000 / $650,000,000
Return on Invested Capital = 0.10
Return on Invested Capital = 10%
EFT a.means effective funds transfer b.makes it easier to document purchase and sale transactions c.can process certain cash transactions at less cost than using the mail would incur d.means efficient funds transfer
Answer:
b. makes it easier to document purchase and sale transactions
Explanation:
EFT means Electronic Funds Transfer and it is when money is moved using computer systems between accounts that can be from one or more banks. EFT includes transactions like direct payments, deposits, transfers on ATMs, bill payments using online banking, among others. According to this, the answer is that EFT makes it easier to document purchase and sale transactions because these transactions are made electronically and you always have evidence of the actions made like deposits and transfers and it makes it possible to monitor the purchases and sales made.
The other options are not right because EFT means Electronic Funds Transfer and it doesn't involve cash transactions.
Westover Winds just paid a dividend of $2.10 per share. The company will increase its dividend by 8 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 11 percent?
Answer:
Price today = $26.54
Explanation:
The price of the stock can be calculated using the Dividend Discount Model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula to calculate the price of the stock is attached.
Price today = 2.1 * (1+0.08) / (1+0.11) + 2.1 * (1+0.08) * (1+0.06) / (1+0.11)^2 +
2.1 * (1+0.08) * (1+0.06) * (1+0.04) / (1+0.11)^3 +
[(2.1 * (1+0.08) * (1+0.06) * (1+0.04) * (1+0.02)) / (0.11 - 0.02)] / (1+0.11)^3
Price today = $26.54
What are the three major components of DSSs, and what do they do? How do DSSs help in tax planning? How do DSSs help in website planning and adjustment? Please state your answers in 2-3 page paper in APA format. Include citations and sources in APA style.
Answer is given below
Explanation:
Most of the DSS consists of three main components: the Data Management Module, the Model Management Module and the Dialogue Module. These modules help (1) file the request in a user-friendly way, (2) find large amounts of data to focus on relevant facts, (3) process the data through the desired model, and (4) the results. Output in one or several formats is easy to understand. These steps follow the decisive sequence described by Herbert Simon. There are actually some applications that people don't think of as DSS. Turbotax, taxcats and other tax-making applications have been developed over the years to do more than just fill out help forms. With the ultimate goal of paying taxpayers, they come up with sophisticated principles to help taxpayers create the best strategy for choosing options. For example, applications compare filing status and deduction options: which policy is less common taxes, filing as two individuals or filing jointly as spouses? Should deductions be reduced, or standard exemptions taken? Small education loan, or large education exemption? Based on the combination of taxable income and deductions taken, the apps warn customers of the possibility of being audited by the Internal Revenue Service and give them the opportunity to modify the deduction. Apps remind users of optional reductions, tell them what the exception does and make it easier for filers to make decisions. When customers complete their tax preparation for the previous year, they can plan their tax for the coming year based on their total income, type of wages (wages, occupation, capital gains, etc.). And how much the pension funds, which serve as a tax to reduce tax arrears for the coming year, can contribute to earnings and other benefits as most companies use the web as a marketing, sales and customer support tool, the decisions to make websites are very important. Some companies offer DSS designed specifically to analyze the behavior of shoppers on their sites, such as pages viewed, pages viewed, options clicked and page buyers sorted. For example, Datanatics, Inc. The G2 provides an analysis system that analyzes how visitors navigate through a site. Managers can be impressed that 30 percent of shoppers who follow a specific order of web pages are buying an item. However, the software may reveal that another unexpected upside order ends when 90 percent of shoppers buy another item. This can lead to the decision to increase those pages or buy a few pages between the home page and the last page before finishing.Oak Outdoor Furniture manufactures wood patio furniture. If the company reports the following costs for June 2018,Wood $ 270,000Nails, glue, stain 18,000Depreciation on saws 5,300Indirect manufacturing labor 45,000Depreciation on delivery truck 1,700Assemblyline workers' wages 51,000What is the balance in the Manufacturing Overhead account before overhead is allocated to jobs? Assume that the labor has beenincurred, but not yet paid. Prepare journal entries for overhead costs incurred in June. What is the balance in the Manufacturing Overhead account before overhead is allocated to jobs?1. First, prepare an entry for the overhead costs for materials used.2. Next, prepare an entry for the overhead costs for labor incurred.3. Finally, prepare an entry for all other overhead costs.
Answer:
0. Manufacturing Overhead account balance before allocation.
Every expense incurred that is not directly linked to manufacturing of wood patio furniture goes here.
Oak Outdoor Furniture Manufacturing Overhead June 30
Nails, Glue, Stain 18,000
Depreciation on Saws 5,300
Indirect Manufacturing Labour 45,000
Balance $68,300
1. Journal entry for the overhead costs for materials used.
DR Manufacturing Overhead $18,000
CR Raw material Inventory $18,000
(To record cost of indirect materials used)
2. Journal entry for the overhead costs for labor incurred.
DR Manufacturing Overhead $45,000
CR Wages Payable $45,000
(To record cost of overhead labor costs incurred)
3. Journal entry for all other overhead costs.
DR Manufacturing Overhead $5,300
CR Accumulated Depreciation $5,300
(To record depreciation on saws)
n January, Marigold company requisitions raw materials for production as follows: Job 1 $920, Job 2 $1,600, Job 3 $720, and general factory use (indirect materials) $700. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer and Explanation:
The summarized journal entry for using the raw material is shown below:
Work in process inventory $3,240 ($920 + $1,600 + $720) Dr
Manufacturing overhead 700 Dr
To Raw material inventory $3,940
(Being the raw material used is recorded)
For recording this we debited the work in process and factory overhead as it increased the assets and expenses and credited the raw material inventory as it decreased the assets
The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 Sales $ 800,000 Cost of goods sold 560,000 Gross margin 240,000 Selling and administrative expenses Selling $ 100,000 Administrative 110,000 210,000 Net operating income $ 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The net operating income computed using the contribution approach for the first quarter is:
Answer: $30,000
Explanation:
Sales are $800,000 and the average price is $40. Number of units sold is;
= 800,000/40
= 20,000 units
Sales $ 800,000
Less: Cost of Goods Sold ($560,000)
Gross Margin $240,000
Less : Variable Costing
Selling Expenses (20,000 units X $3.00) ($60,000)
Administrative Expenses (5% of $ 800,000) ($40,000)
Contribution Margin $140,000
Less: Fixed Cost
Selling Expenses ($100,000 - $60,000) ($40,000)
Administrative Expenses ($110,000 -$40,000) ($70,000)
Net Operating Income $30,000
Tyrell recently noticed that he was receiving several catalogs and direct mail advertisements than he had in the past even though he had not requested any of them. Which of the following best explains why this is happening?
A. Tyrell was a victim of online theft.
B. Tyrell gave his personal information to a business, which then traded it to other companies and these companies then began sending him catalogs.
C. All businesses routinely have all customers' personal information.
D. Tyrell's accountant gave his information to the direct mail marketers.
Answer:
B.
Explanation:
In this particular scenario, the most likely occurrence is that Tyrell gave his personal information to a business, which then traded it to other companies and these companies then began sending him catalogs. Most companies online tend to gather as much private information from their customers and eventually sell that information to larger corporations that use it in order to increase their sales. This is done in many forms such as finding out what a client population likes and dislikes, how much money they spend, day to day activities, etc. All this information allows corporations to target specific individuals, and advertise directly to them in order to make sales.
Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. A week later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has Group of answer choices priority to payment in all states. priority to payment in states that follow the English rule. no priority to payment. priority to payment in most states.
Answer: priority to payment in states that follow the English rule
Explanation:
From the question, we are told that Elin owes Floyd $10,000 but Floyd assigns the claim to Gary and that Gary does not notify Elin of the assignment.
A week later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has priority to payment in states that follow the English rule.
Holly has priority claim because Holly has already notified Elin of the task before and therefore has priority to payment in states that follow the English rule.
Option B is correct
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 106 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, they the owners estimate they can serve on average about 162 customers per hour. Use Exhibit 5.6.During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?Critical zoneZone of serviceZone of nonservice
Answer:
Zone of service
Explanation:
Zone of service is the period where there is intensive service to be rendered to customers because of the number present per hour. Since they can serve 162 customers per hour, one can estimate that they would be serving about a thousand customers per night within a six-hour period. In the zone of service, every hand would usually be on deck and the tables and chairs would be fully occupied with customers making their food and drink demands.
a company has net working capital of 661. long term debt is $4024, total assets are $6,129, and fixed assets are $3,894. what is the amount of total liabilities
Answer:
$5,598
Explanation:
The computation is shown below:
As we know that
Total assets = fixed assets + current assets
$6,129 = $3,894 + current assets
The current asset is $2,235
Now
net working capital = Current asset - current liabilities
$661 = $2,235 - current liabilities
So, the current liabilities is $1,574
Now the total liabilities is
= Current liabilities + long term liabilities
= $1,574 + $4,024
= $5,598
Hence, the total liabilities is $5,598
On Oct. 14, Sheffield Company discounted at Sunshine Bank a $9,000 (maturity value), 113-day note dated July 13. Sunshine’s discount rate was 11%.
Required:
What proceeds did Sheffield Company receive?
Answer: $8,945
Explanation:
Number of days that have passed since Note was issued is;
18 days in July
31 days in August
30 Days in September, and
14 days in October
= 18 + 31 + 30 + 14
= 93 days
93 days have already elapsed out of the 113 so days left is;
= 113 - 93
= 20 days
Assuming a 360 day Calender, Sheffield Company will receive;
= Maturity level - Discount Amount
= 9,000 - (9,000 * 11% * 20/360)
= 9,000 - 55
= $8,945
Sheffield would will get $8,945 of proceeds to represent that 20 days are still left of the note till it matures and so need to be discounted from the maturity value.
The calculated cost of trade credit for a firm that buys on terms of 2/10, net 30, is lower (other things held constant) if the firm plans to pay in 40 days than in 30 days.
A. True
B. False
Answer:
A. True
Explanation:
The terms of 2/10, net 30 implies that the firm is entitled to receive a 2 percent discount if it makes payment within 10 days for the goods it bought on term but the seller expects to pay full amount of the amount due in 30 days if it fails to pay within 10 days.
However, since there will be no more discount after the discount period, the cost of trade credit will continue to fall longer the payment is extended. For this question this can be demonstrated using the formula for calculating the cost of trade discount as follows:
Cost of trade discount = {[1 + (discount rate / (1 - discount rate))]^(365/days after discount)} - 1 ................... (1)
We can now applying equation (1) as follows:
For payment in 40 days
Cost of trade credit (payment in 40 days)= {[1 + (0.02 / (1 - 0.02))]^(365/40)} - 1 = 0.202436246672765, or 20%
For payment in 30 days
Cost of trade credit (payment in 30 days) = {[1 + (0.02 / (1 - 0.02))]^(365/30)} - 1 = 0.278643315029666, or 28%
Conclusion
Since the 20% calculated cost of trade credit for payment in 40 days is lower than 28% calculated cost of trade credit for payment in 30 days, the correct option is A. True. That is, the calculated cost of trade credit for a firm that buys on terms of 2/10, net 30, is lower (other things held constant) if the firm plans to pay in 40 days than in 30 days.
Timberline Associates uses the weighted-average method in its process costing system. The following data are for the first processing department for a recent month:
Work in process, beginning:
Units in process 2,400
Percent complete with respect to materials 75%
Percent complete with respect to conversion 50%
Costs in the beginning inventory:
Materials cost $8,400
Conversion cost $7,200
Units started into production during the month 20,800
Units completed and transferred out 22,200
Costs added to production during the month:
Materials cost $97,400
Conversion cost $129,600
Work in process, ending:
Units in process 1,000
Percent complete with respect to materials 80%
Percent complete with respect to conversion 60%
Required:
A. Determine the equivalent units of production.
B. Determine the costs per equivalent unit.
C. Determine the cost of ending work in process inventory.
D. Determine the cost of the units transferred to the next department.
Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? X Y Price $25 $25 Expected dividend yield 5% 3% Required return 12% 10% a. Stock X pays a higher dividend per share than Stock Y. b. Stock Y pays a higher dividend per share than Stock X. c. Stock Y has a lower expected growth rate than Stock X. d. One year from now, Stock X should have the higher price. e. Stock Y has the higher expected capital gains yield.
Answer:
a. Stock X pays a higher dividend per share than Stock Y.
Explanation:
stock x, dividend = $1.25
$25 = $1.25 / (12% - g)
12% - g = $1.25 / $25
12% - g = 5%
g = 7%
stock y, dividend = $0.75
$25 = $0.75 / (10% - g)
10% - g = $0.75 / $25
10% - g = 3%
g = 7%
both growth rates are equal, what varies are the dividends that the stocks yield and the required rates of return
A seller accepts a contingent backup offer from a second buyer and notifies the first buyer under a release clause. The first buyer decides to remove the sale of buyer's property contingency. What happens next
Answer: Completion of transaction and down payment
Explanation:
Contingency backup offer is when the seller has an already potential buyer for a property.
In this scenario, the seller would have to conclude with the first buyer to avoid fractions and disagreement in some factors and to see if the buyer can make a down payment on the propery.
The cash flow statement should be evaluated by examining the cash flow pattern suggested by the:__________
a) subtotals of each of the three main sections.
b) operating activities section since this section details the day to day operations of the business.
c) change in cash regardless of which section had the biggest impact on the change.
d) financing section since this section details how much debt the company has incurred
Answer:
a) subtotals of each of the three main sections.
Explanation:
A cash flow statement is a representation of the cash inflows and outflows from various activities in a business. The three main sources of cash flow are operating activities, investing activities, and financing activities.
Operating activities include daily production activities that a business usually engages in like manufacturing or selling.
Financing activities are those that affect the capital base of the organisation.
Investing activities are those that involve purchase or sale of assets, and investment in securities.
To get a better knowledge of the cash flow of the organisation we will need to evaluate subtotals of each of these three sections
Assume that the following data characterize the hypothetical economy of Trance: money supply = $200 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate.
a. What is the equilibrium interest rate in Trance? _____ percent.
b. At the equilibrium interest rate, what is the quantity of money supplied, the money demanded, the amount of money demanded for transaction, and the amount of money demanded as an asset in trace?
Quantity of money supplied = $ _____ billion
Quantity of money demanded = $ _____ billion
Amount of money demanded for transactions = $ _____ billion
Amount of money demanded as an asset = $_____ billion
Answer:
a. What is the equilibrium interest rate in Trance?
The equilibrium interest rate is 6%, because it is the interest rate that brings the money supply and the money demand to equilibrium.
At 12% interest rate, the quantity of money demanded is 170 billion, while the money supply is 200 billion.
The quantity of moned demanded as an asset increases by 10 billion if the interest rate falls by two percentage points. Thus, if the interest rate falls 6 percentage points, the quantity of money demanded as an asset will increase by 30 billion, reaching 40 billion.
At this point, money demand is:
$160 billion (money demanded for transactions) + $40 billion (money demanded as an asset) = $200 billion.
Which is the same as the money supply.
b. At the equilibrium interest rate, what is the quantity of money supplied, the money demanded, the amount of money demanded for transaction, and the amount of money demanded as an asset in trace?
The quantity of money supplied is still 200 billion.
The quantity of money demanded is 200 billion.
The amount of money demanded for transactions is 160 billion.
And the amount of money demanded as an asset is 40 billion.
When Joe was working in finance, he bought all of his suits at Macy’s, a department store. Once Macy’s finds out about Joe’s plans to return to business school, what customer-centric approach would Professor Fader recommend that Macy’s takes with Joe?
Answer:
Show Joe that he's still important to them by extending a store discount to him that will apply during his time as a student.
Explanation:
Customer-centric approach is a business strategy in which the focus in on customer demand. The customer is given special attention by the organization to help them retain a long term relationship with the business. In such approach customer is put at core of business. This helps organization to better understand customer needs and fulfill them so the customer remains loyal to them. Macy is also focusing on Joe and has expressed that he is an important person. She is supporting her views by offering Joe extension in discounts that were applicable to him as a student.
A stock has an expected return of 12.6 percent, the risk-free rate is 7 percent, and the market risk premium is 10 percent. What must the beta of this stock be
Answer:
0.56
Explanation:
In this question we used the Capital Asset Pricing Model formula i.e shown below:
As we know that
Expected rate of return = Risk free rate of return + Beta × market risk premium
12.6% = 7% + Beta × 10%
12.6% - 7% = Beta × 10%
5.6% = Beta × 10%
So, the beta is
= 5.6% ÷ 10%
= 0.56
Hence, the beta of the stock is 0.56
Bond T is a zero coupon bond and has 11 years until maturity. If the yield to maturity is 10%, the Macaulay duration of this bond is
Answer:
11 years
Explanation:
The Macauly duration of a bond is generally calculated for coupon bearing bonds sold either at par or at premium or discount values. When we are asked about the Macauly duration of a zero coupon bond, the answer is simply the time to maturity of the bond, or the bond duration. In this case, the time to maturity is 11 years which equals the Macauly duration.
A company can produce a product the first time at a cost of $2,500. If its 85 percent learning curve allows the company to reduce its costs on each product, what is the total cost of producing 400 units of the new product? _________________
Answer:
319,000
Explanation:
Based on information identified from the complete source question, a table showing the 85% learning curve indicating that the first unit costs $1, and it shows that the cumulative cost to produce 400 units is $127.60.
So, in this situation where the first unit cost $2,500, logically we would expect the total cost for four hundred units to be $2,500 * 127.60 = $319,000
Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded:
Melting Department direct overhead $110,000
Molding Department direct overhead 400,000
General plant management 100,000
Plant security 50,000
Other pertinent data follow:
Melting Molding
Number of employees 35 40
Space occupied (square feet) 10,000 20,000
Machine hours 10,000 2,000
Direct labor hours 4,000 20,000
Required:
a. Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.
b. Determine the total departmental overhead costs for the Melting and Molding Departments.
Answer:
a.
General Plant Management Costs
Cost is $100,000
These costs are allocated on the basis of number of production employees.
Melting Department employs 35 workers and Molding employs 40 for a total of 75.
Melting Department = [tex]\frac{35}{75} * 100,000[/tex]
Melting Department = $46,666,67
Molding Department = [tex]\frac{40}{75} * 100,000[/tex]
Molding Department = $53,333.33
Plant Security Costs
Cost is $50,000
These costs are allocated on the basis of space occupied by the production departments.
Melting Department occupies 10,000ft² and Molding occupies 20,000 ft² for a total of 30,000 ft²
Melting Department = [tex]\frac{10,000}{30,000} * 50,000[/tex]
Melting Department = $16,666,67
Molding Department = [tex]\frac{20,000}{30,000} * 50,000[/tex]
Molding Department = $33,333.33
2. Melting Department
= 110.000 + 46,666.67 + 16,666.67
= $173,333.34
Molding Department
= 400,000 + 53,333.33 + 33,333.33
= $486,666.66
A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:
Answer:
Debit Credit
Bond Interest Expense $22,000
Cash $22,000
Being semi-annual interest payment on bonds
Explanation:
The semi-interest payment on the bonds equals
Coupon rate × par Value × 1/2
Semi-annual interest payment = 8%× 550,000 × 1/2=22,000
Semi- annual payment = $22,000
The accounting entry to record the interest payment each time payment is made would be:
Debit Credit
Bond Interest Expense $22,000
Cash $22,000
Being semi-annual interest payment on bonds
Note that interest payment is an expense, hence to increase an expense the expense account is debit. On the other hand. the interest payment is a cash outflow, which reduces the cash asset, hence the cash account is credited.
Problem 1 16 points Total Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)
Answer:
Sales Budget for January, February and March
January February March
Budgeted Sales Units 200 300 400
Budgeted Selling Price $10 $10 $10
Budgeted Sales Revenue $2,000 $3,000 $4,000
Production Budget for January, February and March.
January February March
Budgeted Sales Units 200 300 400
Budgeted Production Units 200 300 400
Explanation:
Sales Budget
This is the first budget that a company prepares from which all other budgets are created.
Production Budget
Since there are no closing or opening inventory targets, Budgeted Sales units equal budgeted production units.
A customer has heard about the explosive growth in China and wants to make investments in Chinese companies. Which risk is NOT associated with this potential investment
Answer:
None
Explanation:
Remember, every investment of such type fall under this risks. As customer seeking to invest in a foreign market (China), there's always a risk, such as marketability risks, political risk etc.
Therefore, since there were no options listed we can assure this opinion.