Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,300 per year for this machine. Information on two alternative replacement machines follows:
Alternative A Alternative B
Cost $121,000 $113,000
Variable manufacturing costs per year $22,500 $10,200
Required:
1. Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
2. Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Chose below:
(a) Keep the manufacturing machine.
(b) Alternative A.
(c) Alternative B.
Answers
Answer: Check attachment
Explanation:
1. Calculate the total change in net income if Alternative A is adopted.
The answer is -$25800. Check attachment for further explanation.
2. Calculate the total change in net income if Alternative B is adopted.
The answer is $31400. Check attachment for further explanation.
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
The machine should be replaced with alternative B has it generates a change in net income by $31400.
Related Questions
Marco started the shop by investing $40,400 cash and equipment valued at $18,400 in exchange for common stock.
Purchased $110 of office supplies on credit.
Paid $1,600 cash for the receptionist's salary.
Sold a custom frame service and collected $4,900 cash on the sale.
Completed framing services and billed the client $240.
What was the balance of the cash account after these transactions were posted?
a. $11,790
b. $12,030
c. $43,700
d. $43,830
e. $43.940.
Answers
Answer:
$43,700
Explanation:
The simplest way to determine the balance of the cash account is to prepare the cash account and see the side with a shortfall well as the amount. A cash account accounts for only cash related transactions.
Marco`s Cash Account
Debit :
Capital $40,400
Cash Sales $4,900
Total $45,300
Credit :
Receptionist's salary $1,600
Balance c/d (missing amount) $43,700
Total $45,300
thus,
the balance of the cash account after these transactions is $43,700.
On Saturday, December 31, the company's owner provided ten hours of service to a customer. The company bills $100 per hour for services provided on weekends. Payment has not yet been received. The owner did not stop in the office on Saturday; as such, on December 31, the services were unbilled and unrecorded. Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.
Answers
Answer:
Adjusting Entry
December 31, 2019:
Debit Accounts receivable $1,000
Credit Service Revenue $1,000
To record the provision of service to a customer for 10 hours by the owner.
Explanation:
a) Data and Analysis:
Accounts receivable $1,000 Service Revenue $1,000 ($100 * 10 hours)
b) The above transaction shows that service was rendered on account. This implies that the Accounts receivable will be debited while the Service revenue is credited with $1,000 respectively since payment has not yet been received by the company as at the adjustment date of December 31, 2019.
Grocery Corporation received $301,232 for 14.00 percent bonds issued on January 1, 2018, at a market interest rate of 11.00 percent. The bonds had a total face value of $256,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium.
Required:
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answers
Answer:
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Analyze the overall financial situation from a cross-sectional viewpoint. Compare each company’s ratios with the industry average. What are the strengths and weaknesses of each company? Which company is best to invest in and why?
Answers
Answer:
Cross-sectional analysis is a type of analysis where an investor, analyst or portfolio manager compares a particular company to its industry peers. Cross-sectional analysis may focus on a single company for head-to-head analysis with its biggest competitors or it may approach it from an industry-wide lens to identify companies with a particular strength. Cross-sectional analysis is often deployed in an attempt to assess performance and investment opportunities using data points that are beyond the usual balance sheet numbers.
Your company, ImSecure Inc., is a security investigation firm. You have been contacted by Darling Company, a producer of cardstock for greeting card companies like Hallmike and Birthday Wishes Company. Darling currently requires orders to be placed several weeks in advance of the delivery date. Orders come in through traditional channels (account reps, paper forms, etc.). Hallmike, Darling’s largest client, now requires Darling to use e-commerce for order transmission and payment. Because of this new change, Darling is considering moving all of its clients to EDI for orders and payments.
Required:
Detail the new opportunities e-commerce solutions like EDI present for internal and external perpetrators trying to defraud Darling Company.
Answers
What are the different types of discrimination
Answers
Answer:
There are a lot of differnet ways here
Age Discrimination.
Disability Discrimination.
Sexual Orientation.
Status as a Parent.
Religious Discrimination.
National Origin.
Sexual Harassment.
Race, Color, and Sex.
Explanation:
Hope this Helped!!!!!!!!
NeverEver Corporation is choosing between a taxable bond at the yield of 7% and a municipal bond at the yield of 5.75%. Calculate the NeverEver Corporation's break-even tax rate. g
Answers
Answer:
18%
Explanation:
Calculation to determine the NeverEver Corporation's break-even tax rate.
Using this formula
Break-even tax rate=1- ( Municipal / Corporate )
Let plug in the formula
Break-even tax rate=1- (0.0575-0.07)=0.821429
Break-even tax rate=1-0.821429=0.178571
Break-even tax rate=0.178571 *100
Break-even tax rate= 17.8%
Break-even tax rate=18% Approximatel
Therefore the NeverEver Corporation's break-even tax rate is 18%
10 points whoever comes.
Answers
Answer:
im here
Explanation:
what to do and thank you
A productive process approachviews operations as a separate organizational function.must provide feedback information for control of process inputs and technology.is of limited use in service organizations.disregards human and social concerns.
Answers
Answer:
The correct answer is the second option: Must provide feedback information for control of process inputs and technology.
Explanation:
To begin with, the term known as " Productive process approach" in the field of business management is refered to the method used by the companies who seeks for the constant improvement of its daily operations inside the organization. Therefore that it is necessary to say that this approach must provide feedback information of the internal processes that happen in the business regarding the inpunts and the technology used by the place so that a regular control will take place and with that every little adjustment as well in order to get better at every possible way to produce the company's product.
The comparative balance sheets for Concord Corporation as of December 31 are presented below.
Concord Corporation
Comparative Balance Sheets
December 31
Assets 2021 2022
Cash 1959,840 $39,600
Accounts receivable 44,000 51,040
Inventory 133,276 124,960
Prepaid expenses 13,446 18,480
Land 127,600 114,400
Buildings 176,000 176,000
Accumulated depreciation-buildings (52,800) (35,200)
Equipment 198,000 136,400
Accumulated depreciation-equipment (39,600) (30,800)
Total $659,762 $594,880
Liabilities and Stockholders' Equity
Accounts payable $39,362 $31,680
Bonds payable 264,000 264,000
Common stock, $1 par 176,000 140,800
Retained earnings 180,400 158,400
Total $659,762 $594,880
Additional information:
1. Operating expenses include depreciation expense of $36,960 ($17,600 of depreciation expense for buildings and $19,360 for equipment).
2. Land was sold for cash at book value.
3. Cash dividends of $10,560 were paid.
4. Net income for 2022 was $32,560.
5. Equipment was purchased for $80,960 cash. In addition, equipment costing $19,360 with a book value of $8,800 was sold for $7,040 cash.
6. 35,200 shares of $1 par value common stock were issued in exchange for land with a fair value of $35,200.
Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method.
Answers
Answer:
Concord Corporation
Concord Corporation
Statement of Cash Flows for the year ended December 31, 2022
Operating activities:
Net income $32,560
add Depreciation 36,960
Loss from sale of equipment 1,760
Changes in working capital:
Accounts receivable 7,040
Inventory -8,316
Prepaid expenses 5,034
Accounts payable 7,682
Net cash from operations $82,720
Investing activities:
Sale of equipment $7,040
Sale of land 22,000
Purchase of equipment -80,960
Net cash from investments -$51,920
Financing activities:
Dividends payment -10,560
Net cash flows $20,240
Reconciliation:
Beginning cash balance $39,600
Net cash flows $20,240
Ending cash balance $59,840
Explanation:
a) Data and Calculations:
Concord Corporation
Comparative Balance Sheets
December 31
Assets 2022 2021 Changes
Cash $59,840 $39,600 +$20,240
Accounts receivable 44,000 51,040 -7,040
Inventory 133,276 124,960 +8,316
Prepaid expenses 13,446 18,480 -5,034
Land 127,600 114,400 +13,200
Buildings 176,000 176,000 0
Accumulated depreciation
-buildings (52,800) (35,200) (17,600)
Equipment 198,000 136,400 +61,600
Accumulated depreciation
-equipment (39,600) (30,800) (8,800)
Total $659,762 $594,880
Liabilities and Stockholders' Equity
Accounts payable $39,362 $31,680 +$7,682
Bonds payable 264,000 264,000 0
Common stock, $1 par 176,000 140,800 +35,200
Retained earnings 180,400 158,400 +22,000
Total $659,762 $594,880
Additional information:
1. Depreciation $36,960
($17,600 of depreciation expense for buildings and $19,360 for equipment)
2. Sale of land at $22,000
3. Cash dividends paid $10,560
4. Net income for 2022 $32,560
5. Equipment purchase $80,960
Equipment sales $7,040
Loss from sale $1,760
Accumulated Depreciation $10,560
Equipment
Account Titles Debit Credit
Beginning balance 136,400
Cash 80,960
Sale of equipment 19,360
Ending balance 198,000
Sale of Equipment
Account Titles Debit Credit
Equipment 19,360
Accumulated depreciation 10,560
Cash 7,040
Loss from Sale of Equipment 1,760
6. Land $35,200 Common stock $35,200
Land
Account Titles Debit Credit
Beginning balance 114,400
Common stock 35,200
Cash 22,000
Ending balance 127,600
Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $8,500,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,800,000, $3,600,000, and $3,600,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be: Building Land Equipment a. $ 4,800,000 $ 3,600,000 $ 3,600,000 b. $ 4,800,000 $ 3,600,000 $ 600,000 c. $ 3,400,000 $ 2,550,000 $ 2,550,000 d. None of these answer choices are correct.
Answers
Answer:
C.$3,400,000; $2,550,000; $2,550,000
Explanation:
Calculation to determine what The initial values of the building, land, and equipment would be
First step is to calculate the formula Total fair value using this formula
Total fair value = Building + Land + Equipment
Let plug in the formula
Total fair value = $4,800,000 + $3,600,000 + $3,600,000
Total fair value = $12,000,000
Now let calculate the initial values of the building, land, and equipment
Using this formula for BUILDING
Building= Total cost of acquisition × (Fair value of building ÷ Total fair value)
Let plug in the formula
Building= $8,500,000 × ($4,800,000 ÷ $12,000,000)
Building= $8,500,000 × 0.4
Building= $3,400,000
Using this formula for LAND
Land = Total cost of acquisition × (Fair value of land ÷ Total fair value)
Let plug in the formula
Land= $8,500,000 × ($3,600,000 ÷ $12,000,000)
Land= $8,500,000 × 0.3
Land= $2,550,000
Using this formula for EQUIPMENT
Equipment= Total cost of acquisition × (Fair value of Equipment ÷ Total fair value)
Let plug in the formula
Equipment= $8,500,000 × ($3,600,000 ÷ $12,000,000)
Equipment= $8,500,000 × 0.3
Equipment= $2,550,000
Therefore The initial values of the building, land, and equipment would be:$3,400,000; $2,550,000; $2,550,000
gross domestic product includes the values of only final goods and services.
true or false
Answers
Barton's Taco Tico has four taco makers and ten other employees who take orders from customers and perform other tasks. The four taco makers and the other employees are paid an hourly wage. How would one classify (1) the wages paid to the taco makers and other employees and (2) materials (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) used to make the tacos
Answers
Answer:
Barton's Taco Tico
1. The wages paid to the taco makers and other employees are variable costs.
2. The cost of materials are also variable costs.
Explanation:
Variable costs vary in total but remain fixed per unit. For example, the wages paid to the workers have a fixed rate. Therefore, the total will vary, depending on the total hours worked by each worker. Similarly, the costs of materials vary in total, but the price per material may be relatively fixed.
Please help with the following question.
Answers
Answer:i dont really know
Explanation:
When the year-to-year changes in comparative balance sheet accounts do not coincide with the changes implied from amounts reported on the statement of cash flows, the analyst may find useful information for reconciliation in notes to the financial statements and the:
Answers
Answer: Operating activties section of the cash flow statement.
Explanation:
A comparative balance sheet refers to the statement which shows an organization's financial position over different periods through which comparism is made.
It should be noted that the current liabilities and the adjustment for the changes in current assets are included in the operating activities secction of the cash flow statement.
As a result of the fact that the changes in assets don't tally with cash flows, the section with regards to the operating activities of the statement of cash flows
can help in this scenario.
moes tavern is considering a project with an initial cost of $15 million that would produce cash flows of 3 million the first year, 4 million the second, 5 million in the third year, and 6 million per year for the final two years. If the required return is 10.8%, should moe undertake the project?
Answers
Answer:
YES
THE NPV IS POSTIVE. IT IS 2.2 MILLION
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-15 million
Cash flow in year 1 = 3 million
Cash flow in year 2 = 4 million
Cash flow in year 3 = 5 million
Cash flow in year 4 = 6 million
Cash flow in year 5 = 6 million
I = 10.8
NPV = 2.2 million
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Capital budgeting is the process of making capital expenditure decisions. used in sell or process further decisions. of determining how much capital stock to issue. of eliminating unprofitable product lines.
Answers
Answer:
The correct answer is the first option: of making capital expenditure decisions.
Explanation:
To begin with, the term known as "Capital Budgeting", in the field of business management, refers to the method a company's manager use in order to see how profitable it is to start some new inversions or projects, therefore that the main purpose of this process is to involve the elaboration of a budget that will help the superiors of the organization to make capital expenditure decisions when they are looking for a new inversion or project to start with. It is very helpful in the situations where there is a need for evaluation of future prospects.
Sales on account for the first two months of the current year are budgeted as follows.
January $ 966,000
February 650,000
All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows.
Collections within the month of sale:
Within discount period 60 %
After discount period 15
Collections within the month following sale:
Within discount period 15
After discount period 7
Returns, allowances, and uncollectibles 3
Total 100 %
Compute the estimated cash collections on accounts receivable for the month of February.
Answers
Answer:
Total cash collections $689,322
Explanation:
The computation of the estimated cash collections on account receivable is shown below;
January Sales within the discount period ($966,000 × 15% × 98%) $142,002
January Sales after the discount period ($966,000 × 7%) $67,620
February Sales within the discount period ($650,000 × 60% × 98%) $382,200
February Sales after the discount period ($650,000 × 15%) $97,500
Total cash collections $689,322
After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,180, $4,020, and $22,140, respectively. Cash and noncash assets total $5,600 and $54,240, respectively. Amounts owed to creditors total $14,500. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $34,560, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid.
Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entries on Feb. 28 to (a) allocate the partner's deficiency and (b) distribute the remaining cash.
Answers
Answer:
William Gerloff, Joshua Chu, and Courtney Jewett LLC
Journal Entries
a. February 28:
Debit Williams' Capital $600
Debit Courtney's Capital $300
Credit Joshua's Capital $900
To allocate the partner's deficiency
b. February 28:
Debit Williams' Capital $8,740
Debit Courtney's Capital $16,920
Credit Cash $25,660
To distribute the remaining cash to partners.
Explanation:
a) Data and Calculations:
Cash $5,600
Non-cash assets 54,240
Creditors 14,500
Profit sharing = 2:1:1
February Cash in hand:
Cash $5,600
Non-cash assets 34,560 Loss from assets 19,680
Cash balance $40,160
Settlement of creditors (14,500)
Balance for distribution $25,660
If partner pays deficiency 900
Total cash for distribution $26,560
William Gerloff Joshua Chu Courtney Jewett
Capital balances $19,180 $4,020 $22,140
Loss sharing (9,840) (4,920) 4,920)
Capital balance $9,340 ($900) $17,220
Cash distribution (9,340) (17,220)
Capital balances $0 $0 $0
If partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency, the deficiency will be shared between William and Courtney as follows:
William = 2/3 * $900 = $600
Courtney 1/3 * $900 = $300
Capital distribution with unpaid deficiency, with total cash for distribution of $26,560:
William Gerloff Joshua Chu Courtney Jewett
Capital balances $19,180 $4,020 $22,140
Loss sharing (9,840) (4,920) 4,920)
Capital balance $9,340 ($900) $17,220
Deficiency sharing (600) (300)
Cash distribution (8,740) (16,920)
Capital balances $0 $0 $0
Journal Entries
February 28:
Debit Cash $34,560
Non-cash assets $35,560
To record the receipt of cash from the sale of assets.
Debit Creditors $14,500
Credit Cash $14,500
To settle creditors.
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow.
Repairs HR IT M1 M2
Repairs _____ 0% 0% 40% 60%
HR 10% _____ 20% 35% 35%
IT 0% 10% ____ 20% 70%
The direct costs of the service departments in the previous period were $36,000 for Repairs, $55,600 for HR, and $81,000 for IT.
Required:
Use the step method to allocate the service department costs to the production departments. Allocate HR costs first, followed by IT, and then Repairs
Answers
Answer:
Bens Corporation
Allocation of Service Departments' Direct Costs:
Repairs HR IT M1 M2 Total
Direct costs $36,000 $55,600 $81,000 $172,600
Step allocation:
HR direct costs 5,560 -55,600 11,120 19,460 19,460 0
IT costs 0 0 -92,120 20,471 71,649 0
Repairs costs -41,560 0 0 16,624 24,936 0
Total costs allocated 0 0 0 $56,555 $116,045 $172,600
Explanation:
a) Data and Calculations:
Usage data:
Repairs HR IT M1 M2
Repairs 0% 0% 40% 60%
HR 10% __ 20% 35% 35%
IT 0% 10% __ 20% 70%
HR Costs = $55,600:
Repairs = $5,560 ($55,600 * 10%)
IT = $11,120 ($55,600 * 20%)
M1 = $19,460 ($55,600 * 35%)
M2 = $19,460 ($55,600 * 35%)
IT costs = $92,120:
Repairs = $0 ($92,120 * 0%)
M1 = $20,471 ($92,120 * 20/90)
m2 = $71,649 ($92,120 * 70/90)
Repair costs = $41,560:
M1 = $16,624 ($41,560 * 40%)
M2 = $24,936 ($41,560 * 60%)
Answer:
HR allocation:
$3,960 = 0.10 × $39,600
$7,920 = 0.20 × $39,600
$13,860 = 0.35 × $39,600
$13,860 = 0.35 × $39,600
IT allocation:
$52,920 cost of IT is $45,000 (direct cost) + $7,920 (allocated from HR)
$11,760 = 0.2 × $52,920
(0.2 + 0.7)
$41,160 = 0.7 × $52,920
(0.2 + 0.7)
Repairs allocation:
$23,960 cost of Repair is $20,000 (direct cost) + $3,960 (allocated from HR)
$9,584 = 0.40 × $23,960
$14,376 = 0.60 × $23,960
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 56,000 66,000 Finished goods 96,000 66,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 560,000 units during next year, the number of units it would have to manufacture during the year would be:
Answers
Answer:
Budgeted Production Units 530,000 Units
Explanation:
The computation of the number of units manufactured is shown below;
Budgeted Sale Units 560,000 Units
Add: Ending Inventory of Finished Goods 66,000 Units
Less: Beginning Inventory of Finished Goods 96,000 Units
Budgeted Production Units 530,000 Units
Hence, the above represent the answer
change into indirect speech anil said "I'll phone back later"
Answers
he revenue cycle's primary objective is to Group of answer choices lower expenses. provide the right product in the right place at the right time for the right price. provide quality product in order to maximize market share. maximize the company's profit.
Answers
Answer: provide the right product in the right place at the right time for the right price.
Explanation:
Revenue cycle refers to the process involving the completion of an accounting process from the sale of a product till receipts are gotten for payment made.
The primary objective of the revenue cycle is to provide the right product in the right place at the right time for the right price.
Samanderson, Inc. is in the business of selling ceramic bowls. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces ceramic bowls out of it. Ceramic bowls are then transferred to finishing department, which designs it as per the requirement of the customers. During the month of July, molding department purchased 650 kgs of tungsten carbide at $210 per kg. It started manufacture of 3,500 bowls and completed and transferred 3,200 bowls during the month. It has 300 bowls in the process at the end of the month. It incurred direct labor charges of $1,000 and other manufacturing costs of $600, which included electricity costs of $900. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of bowls. The ending inventory was 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July?
What is the total conversion costs for the month of July?
a. $1,700
b. $1,500
c. $1,300
d. $1,000
Answers
Answer:
Samanderson, Inc.
The total conversion costs for the month of July is:
= $2,500
Explanation:
a) Materials purchased, 650 kgs at $210 = $136,500
Units started 3,500
Units transferred out 3,200
Ending units 300 55% complete
Materials Conversion Total
Costs incurred $136,500 $2,500 $139,000
Equivalent units:
Units transferred out 3,200 3,200
Ending work in process 300 165
Total equivalent units 3,500 3,365
Cost per equivalent unit:
Materials Conversion
Costs incurred $136,500 $2,500
Total equivalent units 3,500 3,365
Cost per equivalent unit $39 $0.7429
Cost assigned to:
Units transferred out $124,800 (3,200 * $39) $2,377 (3,200 * 0.7429)
Ending work in process 11,700 (300 * $39) 123 (165 * 0.7429)
Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $28 million gaming center: a. Issue $28 million of 6% bonds at face amount. b. Issue 1 million shares of common stock for $28 per share. 2. Which alternative results in the highest earnings per share
Answers
Answer:
Penny Arcades, |nc.
a. Issue $28 million of 6% bonds at face amount.
Explanation:
Alternative A will surely result in higher earnings per share than Alternative B. It has been established that some financial leverage enables the stockholders to earn more per share. This is not a debatable issue. The hard work lies with the corporation's ability to find the debtholders that can finance its activities and assets. This means that the stockholders of Penny Arcades, Inc. will be at a much more financial advantage if they can find creditors to lend it the $28 million for the gaming center than making the finance available themselves.
A The following section is taken from Blossom's balance sheet at December 31, 2021.
Current liabilities Interest payable $ 46,000 Long-term liabilities Bonds payable (9%, due January 1, 2025) 560,000
Interest is payable annually on January 1. The bonds are callable on any annual interest date.
(a) Journalize the payment of the bond interest on January 1, 2022.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $155,000. The call price is 110. Record the redemption of the bonds.
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining
Answers
Answer:
Date Account titles and explanation Debit Credit
1-1-21 Bond interest payable $46,000
Cash $46,000
(To record payment of interest)
1-1-21 Bond payable $155,000
Loss on redemption bond $15,500
(155,000/100*10)
Cash $170,500
(To record bond redemption)
31-1-21 Interest expenses $36,450
Bond interest expenses $36,450
(560,000-155,000)*9%
(Adjusting entry to accrue the interest on the remaining)
How have you practiced initiative and results driven skills in your own life
Answers
Answer:
when i see others struggling i reach out and offer help. When i see areas where your life is not going as well as you would like to and i decide to do something about it.
Explanation:
GUYS PLEASE HELP, ILL GIVE BRAINLIEST
List 5 ways Chapter 7 and Chapter 13 Bankruptcies are similar:
Answers
Answer:
Explanation:
While Chapter 7 eliminates your debts while Chapter 13 restructures them, you will be able to enjoy something called an “automatic stay” when you file either. This stay means that your creditors are unable to contact you about recovering existing debts while the order is in place, and can be penalized by the courts if they violate the stay. In addition, this stay will put a halt to any wage garnishing that you have been subject to, meaning that you will be able to retain all of your earnings during this time.
Curtiss Construction Company, Inc. entered into a fixed-price contract with Axelrod Associates on July 1, 2015, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. The building was completed on December 31, 2017. Accumulatedcontract costs incurred, estimated costs to complete the contract, accumulated billings to Axelrod and cash collections from Axelrod under the contract are as follows:
12/31/2015 12/31/2016 12/31/2017
Costs incurred (to date) $350,000 $2,500,000 $4,250,000
Estimated costs to complete 3,150,000 1,700,000 0
Billings to Axelrod (to date) 720,000 2,170,000 3,600,000
Cash collections (to date) 600,000 1,800,000 3,600,000
Required:
1. For each of the three years, prepare a schedule to compute total gross profit or loss to be recognized as a result of this contract.
2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2016 and 2017 as either cost in excess of billings or billings in excess of costs.
Answers
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A retail store has two options for discounting items to go on clearance.
1: Decrease the price of the item by 15% each week.
2: Decrease the price of the item by $5 each week. If the cost of an item is $45, write a function rule for the difference in price between the two options.
Answers
Answer:
Difference = 1.75 , Function = mod [ 0.15x - 5 ]
Explanation:
Discount case 1 = $5 {Each week} , Discount case 2 = 15% {Each week}
After 1st week , for item cost = 45
Discount in case 1 = $5 , & price = 45 - 5 = 40 Discount in case 2 = 15% of 45 = 6.75 , & price = 38.25Difference in price = 40 - 38.25 = 1.75 .It is same is difference in discount = 6.75 - 5 , ie = 1.75
Functional rule in price difference , for item with unknown price 'x' = mod [ (x - 5) - (x - 0.15x) ] = mod [ x - 5 - x + 0.15x ] = mod [ 0.15x - 5 ] , which is same as difference between discount '0.15x & 5'