Exercise 6-11A Record transactions using a perpetual system (LO6-5) DS Unlimited has the following transactions during August. August 6 Purchases 60 handheld game devices on account from GameGirl, Inc., for $150 each, terms 3/10, n/60. August 7 Pays $350 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GamerGirl four game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 40 game devices purchased on August 6 for $170 each to customers on account. The total cost of the 40 game devices sold is $6,070.00.

Answers

Answer 1

Answer and Explanation:

The journal entries are shown below:

On Aug 6

Inventory (60 × $150) $9,000

       To Accounts Payable $9,000

(being inventory purchased on account is recorded)

On Aug 7

Inventory Dr $350

           To Cash $350

(Being freight charges paid in cash)

On Aug 10

Accounts Payable $600 (4 × $150)  

        To Inventory $600

(Being returned inventory is recorded)

On Aug 14

Accounts Payable  ($9,000 - $600) $8,400

         To Inventory  ($8,400 × 3%) $252

         To Cash $8,148

(Being cash paid is recorded)

On Aug 23

Accounts Receivable ($170 × 40) $6,800

       To Sales revenue $6,800

(Being sales is recorded)

Cost of goods sold $6,070

    To Inventory $6,070

(Being cost is recorded)


Related Questions

When an import tariff is imposed on an intermediate good, producers of this immediate good in the nation will ____________ while the producers that use the intermediate good as an input will ________. Get better off, get better off Get better off, get worse off Get worse off, get better off Get worse off, get worse off

Answers

Answer:

get better off

get worse off

Explanation:

Import are goods or services produced in other countries that are brought into a country.

Import tariff is a form of tax imposed on imported goods. import tariff increases the price of import. the purpose of import is to discourage import

Intermediate good are goods used in the production of finished. An example of an intermediate good is raw materials

When an import tariff is imposed on an intermediate good, producers that use the intermediate goods would be worse off because the price of intermediate goods needed for production would increase as a result of the tariff. This would increase their cost of production and reduce their profit margins

While the producers of the intermediate good in the country would be better off because they would face less foreign competition. Also, they would benefit from the increased price of the intermediate good. This would increase their profit margins.

Gibson Corp. owned a 90% interest in Sparis Co. Sparis frequently made sales of inventory to Gibson. The sales, which include a markup over cost of 25%, were $420,000 in 2017 and $500,000 in 2018. At the end of each year, Gibson still owned 30% of the goods. Net income for Sparis was $912,000 during 2018. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest for 2018

Answers

Answer:

$907,200

Explanation:

Calculation for the net income attributable to the noncontrolling interest for 2018

First step is to calculate the Gross profit rate

Using this formula

Gross profit rate = gross profit + COGS = GPR/ (1-GPR)

Let plug in the formula

Gross profit rate= 25%/(1+25%) = 0.2

intra-entity gross profit = Transfer price x GPR (0.2)

Gross Profit 2017= $84,000 x 30%

Gross Profit 2017= $25,200;

Gross Profit 2018= 100,000 x 30%

Gross Profit 2017= $30,000

Now let calculate 2018 net income attributable to the noncontrolling interest Using this formula

2018 net income attributable to the noncontrolling interest =Subsidiary’s net income + Intra-entity Gross Profit in Ending Inventory for 2017 – Intra-entity grossprofit in 2018 inventory deferred x noncontrolling interest

2018 net income attributable to the noncontrolling interest = ($912,000) + ($25,200) – ($30,000) *10%

= $907,200

Therefore the net income attributable to the noncontrolling interest for 2018 is $907,200

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.

Answers

Answer:

see below

Explanation:

Given that cost incurred = $457,200

Overhead

= $457,200 - $433,200

Bedrock Company reported a December 31 ending inventory balance of $414,500. The following additional information is also available: The ending inventory balance of $414,500 included $73,700 of consigned inventory for which Bedrock was the consignor. The ending inventory balance of $414,500 included $25,400 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is:

Answers

Answer:

$389,100

Explanation:

Calculation to determine what the correct balance for ending inventory on December 31 is:

Using this formula

Ending inventory on December 31=Ending inventory balance-Office supplies

Let plug in the formula

Ending inventory on December 31=$414,500- $25,400

Ending inventory on December 31=$389,100

Therefore the correct balance for ending inventory on December 31 is:$389,100

Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $490,000 $125,000 $365,000 Variable expenses 288,800 62,500 226,300 Contribution margin 201,200 62,500 138,700 Traceable fixed expenses 111,650 34,790 76,860 Segment margin 89,550 $ 27,710 $ 61,840 Common fixed expenses 36,910 Net operating income $ 52,640 The break-even in sales dollars for Division Q is closest to:

Answers

Answer:

Break-even point (dollars)= $202,263.16

Explanation:

Giving the following information:

Division Q:

Sales= $365,000

Total variable costs= 226,300

Fixed costs= 76,860

To calculate the break-even point for Division Q, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 76,860 / [(365,000 - 226,300) / 365,000]

Break-even point (dollars)= 76,860 / 0.38

Break-even point (dollars)= $202,263.16

bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labor-hours will be required in August. The variable overhead rate is $5.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $69,440 per month, which includes depreciation of $15,680. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answers

Answer:

$84,000

Explanation:

The computation of August cash disbursement for manufacturing overhead is seen below;

Direct labor hour

5,600

Variable overhead per hour

$5.4

Variable manufacturing overhead

$30,240

Fixed manufacturing overhead

$69,440

Total manufacturing overhead

$99,680

Less: Depreciation

$15,680

Cash disbursement for manufacturing overhead

$84,000

define securitization.​

Answers

Answer:

The conversion of an asset, especially a loan, into marketable securities, typically for the purpose of raising cash by selling them to other investors.

BBB Leasing purchased a machine for $390,000 and leased it to Jack Tupp Auto Repair on January 1, 2021. Lease description: Quarterly rental payments $24,408 at beginning of each period Lease term 5 years (20 quarters) No residual value; no BPO Economic life of machine 5 years Implicit interest rate 10% Fair value of asset $390,000 What is the balance in the lease payable account after the April 1, 2021, lease payment

Answers

Answer:

$350,324

Explanation:

total lease liability = $390,000

since the first payment is made on January 1, the carrying of lease liability = $390,000 - $24,408 = $365,592

the interest expense for the 3 months = $365,592 x 10% x 3/12 = $9,139.80 ≈ $9,140

carrying value of lease liability after second payment = $365,592 - ($24,408 - $9,140) = $365,592 - 15,268 = $350,324

The market for bell peppers is perfectly competitive and currently has an equilibrium price of $3 and the number of bell pappers traded is 6. Suppose the government imposes a price floor of $1 on this market. What will be the size of the shortage in this market

Answers

Well, the price would increase by 1 dollar, so the shortage would be 2 less.

There should be no shortage.

What is a price floor?

It is the minimum price where the producer should charge also at the same time it should be binding and considered effective. In the case when the price floor should be above the equilibrium price so it should be the surplus while on the other hand if the price floor is below the equilibrium price so that means it is no surplus. Also, the shortage is not possible

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You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus (there are no other restaurants or food stores within 500 miles). During the day, only students eat at your restaurant. In the evening, while students are studying, 3 faculty members eat there. If students have an elasticity of demand for pizzas of -4 and the faculty has an elasticity of demand of -2, what should your pricing policy be to maximize profits?

Answers

Answer:

since the price elasticity of demand for students is -4, the the price charged to them should be:

price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8

since the price elasticity of demand for faculty is -2, the the price charged to them should be:

price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12

Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $120 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $59; postage expenses, $74; and miscellaneous expenses, $144. The petty cashier could not account for a $13 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $440.
1-Prepare the journal entry to establish the Petty Cash fund.
2-Record the reimbursement of the petty cash fund.
3-Record the increase of the petty cash fund.
Date General Journal Debit Credit
Oct 01

Answers

Answer:

1. Sep 09

Dr Petty cash $410

Cr Cash $410

2. Sep 30

Dr Merchandise inventory $59

Dr Postage expense $74

Dr Miscellaneous expenses $144

Dr Cash short and over $13

Cr Cash $290

3. Oct 01

Dr Petty cash $30

Cr Cash $30

Explanation:

1-Preparation of the journal entry to establish the Petty Cash fund

Sep 09

Dr Petty cash $410

Cr Cash $410

2- Preparation of the journal entry to Record the reimbursement of the petty cash fund.

Sep 30

Dr Merchandise inventory $59

Dr Postage expense $74

Dr Miscellaneous expenses $144

Dr Cash short and over $13

Cr Cash $290

($59+$74+144+$13)

3- Preparation of the journal entry to Record the increase of the petty cash fund

Oct 01

Dr Petty cash $30

Cr Cash $30

($410-$440)

Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$90 comma 000 a​ year, and he pays workers ​$110 comma 000 in wages. In​ return, he produces 300 comma 000 baskets of peaches per​ year, which sell for ​$3.00 each. Suppose the interest rate on savings is 1 percent and that the farmer could otherwise have earned ​$45 comma 000 as a shoe salesman. What is the​ farmer's economic​ profit? The peach farmer earns economic profit of ​$nothing . ​(Enter your response as an​ integer.)

Answers

Answer:

Economic profit =$645,000

Explanation:

Economic profit is the difference between revenue and  out of pocket expenses plus opportunity cost.

Opportunity cost is the value of the benefit sacrificed in favour of a decision. It is the value of the next best alternative forgone in favour of a decision.

For example, the opportunity cost of the farmer is the interest rate he would have earned had he invested the money in savings account plus the salary forgone as a salesman

Economic profit = Revenue - out-of-pocket expenses - opportunity cost

Opportunity cost = interest foregone + salary forgone

                            = (1% × $1,000,000) + 45,000 = 55,000

Out of pocked trading expenses = 110,000 + 90,000 = $200,000

Revenue = $3 × 300,000 = $900,000

Economic profit = 900,000 -200,000-55,000= $645,000

Economic profit =$645,000

Sheffield Corp. sells its product for $70 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is

Answers

Answer:

$40

Explanation:

Calculation to determine what The per unit manufacturing cost under absorption costing is

The per unit manufacturing cost under absorption costing= $15 + $12 + $1 + ($720,000 / 60,000)

The per unit manufacturing cost under absorption costing= $15 + $12 + $1 +$12

The per unit manufacturing cost under absorption costing= $40

Therefore The per unit manufacturing cost under absorption costing is $40

Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of credit ratings of corporate bonds. Imagine further that you manage a corporation interested in issuing new bonds, in addition to past issues by the firm that already trade in the market. Identify one way in which your firm might lose and one way in which it might gain from these regulatory reforms. Explain.

Answers

Answer:

If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.

Explanation:

Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.

Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to proudcts. Mnaufacturing overhead costs are allocated on the the bases of Macine hours in the Machining Department on the bases of direct labor hours. In the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:
Machining Assembly
Direct labor - hours 40,000 40,000
Machine - hours 50,000 20,000
Direct labor costs $500,000 $900,000
Manufacturing overhead costs $280,000 $360,000
The accounting records of the company show the following data for Job #316
Machine Assembly
Direct labor - hours 120 65
Machine - hours 50 5
Direct material cost $425 $175
Direct labor cost $275 $300
WHat are the total manufacturing costs for Job #316
Which of the following are correct? (Please show ALL calculations)
A. $2,040
B. $1,960
C. $1,175
D. $1,440

Answers

Answer:

See below

Explanation:

Total manufacturing cost = direct material cost + direct labor cost + manufacturing overhead cost

Where

Direct material cost = Machining direct material cost + assembly direct material cost

= $425 + $175

= $600

The direct labor cost = Machining direct labor cost + Assembly direct labor cost

= $275 + $300

= $575

The machining overhead cost = Manufacturing overhead costs / Machine hours

= $280,000 / 50,000

= $5.6

So, cost = $5.6 × 50 = $280

Assembly overhead cost = Manufacturing overhead costs / direct labor hours

= $360,000 / 20,000

= $18

So, the cost = $18 × 65 = $1,170

= $600 + $575 + $280 + $1,170

= $2,625

Many employment contracts have mandatory arbitration clauses.


False

True

Answers

This answer is True

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $226,800 of raw materials on credit; issued materials to production of $219,000 of which $37,200 were indirect. Minstrel incurred a factory payroll of $164,400, of which $47,200 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $17,900 and $31,800 respectively. Compute the cost of jobs transferred to Finished Goods Inventory.

Answers

Answer:

$460,900

Explanation:

The computation of the cost of jobs transferred to Finished Goods Inventory is shown below:

= beginning wip + Direct material + direct labor + manufacturing overhead - closing wip

= $17,900 + ($219,000 - $37,200) + ($164,400 - $47,200) + 150% of $117,200 - $31,800

= $17,900 + $181,800  + $117,200 + $175,800 - $31,800

= $460,900

Sheridan Incorporated factored $133,800 of accounts receivable with Skysong Factors Inc. on a without-recourse basis. Skysong assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Sheridan Incorporated and Skysong Factors to record the factoring of the accounts receivable to Skysong. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

Answer:

Sheridan Incorporated journal entry

Dr Cash 123,096

Dr Loss on sale receivables 2,676

Dr Due from factor 8,028

Cr Account receivable $133,800

Skysong Factors journal entry

Dr Account receivable 133,800

Cr Due to customer 8,028

Cr Interest revenue 2,676

Cr Cash 123,096

Explanation:

Preparation of the journal entry for Sheridan Incorporated and Skysong Factors to record the factoring of the accounts receivable to Skysong

Sheridan Incorporated journal entry

Dr Cash 123,096

(133,800-2,676-8,028)

Dr Loss on sale receivables 2,676

(2%*$133,800)

Dr Due from factor 8,028

(6%*$133,800)

Cr Account receivable $133,800

Skysong Factors journal entry

Dr Account receivable 133,800

Cr Due to customer 8,028

(6%*$133,800)

Cr Interest revenue 2,676

(2%*$133,800)

Cr Cash 123,096

(133,800-2,676-8,028)

Fixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 81,000 units, while sales were 76,140 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.

Answers

Answer:

Part a.

Yes, variable costing operating income is less than or greater than absorption costing.

Part b.

$247,860

Explanation:

The difference between variable costing operating income and absorption costing operating income lies in the fixed costs deferred in inventory.

The profit in both method is the same if and only if there is no inventory. That means units produced equal units sold (Production = Sales)

The absorption costing method includes fixed manufacturing cost in determining product costs whereas the variable costing method only accounts for variable manufacturing cost.

When the units produced are greater than units Sold (Production > Sales) , Fixed Costs in Inventory increases this means absorption profits will be greater than Variable costing profit as Fixed costs in inventory value reduces cost of sales in absorption costing.

Difference in variable costing and absorption costing operating income.

Difference = (81,000 - 76,140) x $51

                  = $247,860

Acquired $70,000 cash from the issue of common stock. Purchased $61,000 of inventory on account. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. Sold inventory on account that cost $51,000 for $97,000. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. Collected $79,540 cash from accounts receivable. Paid $56,200 cash on accounts payable. Paid $3,020 for advertising expense. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Answers

Answer:

Net Income = $33,820

Assets = Liabilities + Stockholders' Equity = $108,620

Explanation:

Note: This question is not complete as the introductory paragraph and the numbering are omitted. The complete question is therefore provided before answering the question as follows:

The Pet Store experienced the following events for the Year 1 accounting period:

1. Acquired $70,000 cash from the issue of common stock.

2. Purchased $61,000 of inventory on account.

3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash.

4. Sold inventory on account that cost $51,000 for $97,000.

5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost.

6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320.

7. Collected $79,540 cash from accounts receivable.

8. Paid $56,200 cash on accounts payable.

9. Paid $3,020 for advertising expense.

10. Paid $4,050 cash for insurance expense.

Required:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

The explanation of the answer is now given as follows:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

Period costs are costs that include selling and asministrative costs which are not related to cost of producing a product.

Product costs can be described as costs of creating or producing a product that is meant for sale to customers.

Therefore, we have:

Event         Cost  

  1 .              NA

  2.              Product costs

  3.              Product costs

  4.              NA

  5.              NA

  6.              NA

  7.              NA

  8.              NA

  9.              Period costs

 10.              Period costs

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Note: See the attache excel file for the horizontal statements.

In the attached excel file, Retained Earnings is equal to the balance of the Net Income which is equal to $33,820.

Under the horizontal statements in the attached excel, an evidence to show that Assets is equal to Liabilities Plus Stockholders' Equity. That is:

Assets = Liabilities + Stockholders' Equity = $108,620

Organizations and agencies are a result of _______ in environmental protection issues.
a.
contingency plans
b.
hunting regulations
c.
government involvement
d.
all of the above


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:the answer is C I think

Explanation:

The organizations and agencies are a result of government involvement in environmental protection issues. Thus option (C) is correct.

What is an environment?

An environment is the natural or human-made surroundings in which something exists or operates. It can refer to the physical, biological, social, or cultural context that influences and shapes the behavior, development, and well-being of living organisms or systems.

The environment can refer to the natural world, including the air, water, soil, and climate that sustain life on Earth. It can also refer to the built environment, such as cities, buildings, and infrastructure, that humans have constructed and inhabit.

The government involvement in environmental protection issues led to result in formation of organizations and agencies. Therefore,  option (C) is correct.

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The export business in China is growing. Uncle George, who has just returned from a trade expo in Shanghai, has informed you that the port authority of Ningbo expects the demand to reach the same level as Shanghai. The port authority of Ningbo is now deciding how to change its system to accommodate this surge in demand. They have two options, (a) to retire their existing x-ray machine and buy an x-ray machine similar to the one used by the Shanghai port, or (b) to buy another x-ray machine similar to the one they already own and therefore operate the system with two similar machines. Both the options will cost the port authority of Ningbo the same. Purely from the perspective of reducing lead-time, is (a) or (b) better for you? Please show your detailed analysis.

Answers

Answer:

Assuming that the capacity of the new X-ray machine is the same as the capacity of two older machines, the difference results from the number of units waiting in line (queue). You would need two different groups of workers to move the containers into the correct position if you use the two older machines, while you need only one group to move them to the new machine. This decreases lead time since coordinating work also requires time, it might be a short time, but it is more time at the end of the day.

The following transactions occur for Cardinal Music Academy during the month of October: a. Provide music lessons to students for $9,000 cash. b. Purchase prepaid insurance to protect musical equipment over the next year for $3,240 cash. c. Purchase musical equipment for $12,000 cash. d. Obtain a loan from a bank by signing a note for $14,000. Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.

Answers

Answer:

Part a

Debit : Cash $9,000

Credit : Service Revenue $9,000

Part b

Debit : Prepaid Insurance $3,240

Credit : Cash $3,240

Part c

Debit : Equipment $12,000

Credit : Cash $12,000

Part d

Debit : Cash $14,000

Credit : Loan Payable $14,000

Explanation:

Step 1 : Identify the Accounts affected in each and every transaction.

Step 2: Then determine if this Account is increasing or decreasing.

Step 3 :The journal entries have been prepared above.

how important is the value of a product for a customer

Answers

Answer:

very important

Explanation:

The value of a product is very important to the customer. If the product is good, they will buy more, and you will get more business.
If the product is bad, they won’t come back and they will most likely not buy it again. Therefore, you would get less business.

What does O + A + C = K stand for and mean in the legal "Formula" for contracts?
please helpppp

Answers

Answer:

O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.

Explanation:

Difine the following
1 operetional cost
2 social cost and
3 complementary goods​

Answers

Answer:

1. expenses related to the operation of a business

2.sum of the private costs resulting from a transaction

3. complementary good is a good whose appeal increases with the popularity of its complement.

You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 3% per year compounded semi-annually, what will be your minimum selling price for the bond?

Answers

Answer:

Minimum selling price for the bond = $11350.38

Explanation:

Given - You have just purchased a municipal bond with a $10,000 par

             value for $9,500. You purchased it immediately after the previous

             owner received a semi-annual interest payment. The bond rate is

             6.6% per year payable semi-annually. You plan to hold the bond for

             4 years, selling the bond immediately after you receive the interest

              payment. If your desired nominal yield is 3% per year compounded

              semi-annually.

To find - What will be your minimum selling price for the bond?

Proof -

Formula for Bond value is -

Bond value = [tex]\frac{Coupon Amount}{( 1+ Interest rate)^{1} } + \frac{Coupon Amount}{( 1+ Interest rate)^{2} } + \frac{Coupon Amount}{( 1+ Interest rate)^{3} } + .....\frac{Coupon Amount}{( 1+ Interest rate)^{n} }[/tex]

As given,

Coupon Rate = 6.6%

⇒Coupon Rate for semi-annual = 3.3%

and hereby time period becomes double i.e 8 years.

Now,

Interest rate = 3%

For semi-annual , interest = 1.5%

Now,

Coupon amount = 10,000×3.3% = 330

Now,

Bond value = 330 ×PVIF(1.5% , 8) + 10,000×IVAF(1.5%, 8)

                   = 330×7.486 + 10,000×0.888

                   = 11350.38

∴ we get

Minimum selling price for the bond = $11350.38

Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Dr Cash $ 67.6 million

Dr Discount on bonds payable

$ 1.3 million

Cr Bonds payable 65million

Cr Equity-stock warrants outstanding $3.9million

Explanation:

Preparation of the journal entry to record the issuance of the bonds

Dr Cash $ 67.6 million

(65,000,000 * 104/100 = $ 67.6 million)

Dr Discount on bonds payable

$ 1.3 million

($65million+$3.9 million-$67.6million)

Cr Bonds payable 65 million

Cr Equity-stock warrants outstanding $3.9million

($4× 15 warrants × 65,000 bonds = $3.9million)

(Being To record issuance of bonds)

Which one of the following is the reason that bonds may sell at a discount or premium?
A. The market yield rate fluctuated between the time the bond agreement was written and the date the bonds were actually issued to investors
B. Market conditions caused the coupon rate of interest to change between the time the bond agreement was written and the date the bonds were actually issued to investors
C. The bond issuer failed to consider the market yield rate when the bond agreement was created
D. The bond issuer adjusted the coupon rate to match that of other bond issues

Answers

Answer:

A. The market yield rate fluctuated between the time the bond agreement was written and the date the bonds were actually issued to investors

Explanation:

Interest rate changes and changes in the market price of outstanding bonds have an inverse relationship. If the market rate of interest is more than coupon rate than the bonds are sold at discount to match the market interest rate and if the coupon rate is more than market rate than bonds are sold at premium for match the market rate of interest.

Coupon rates one decided than there is no change in the life time of the bonds but market rate are always changing and because of this the bonds are sell at discount or premium.

Ramon and Sammy are working on a group homework assignment. The homework consists of a set of essay questions and a set of questions on graphing models. Ramon can finish an essay question in about 15 minutes and a graphing question in about 30 minutes. Sammy can finish an essay question in about 20 minutes and a graphing question in about 35 minutes. Assume that Ramon and Sammy produce the same quality answers. Calculate Ramon and Sammy's opportunity cost of each task. Please round each answer to the nearest tenth.

Answers

Answer and Explanation:

The computation is shown below:

It is given that Ramon would completed an essay question in approx 15 minutes and for graphing question it finished approx 30 minutes

On the other hand Sammy would completed an essay question in approx 20 minutes and for graphing question it finished approx 35 minutes

a) Ramon's opportunity cost of completing an essay question is

= 15 ÷30

= 0.5 graphing question

b) Ramon's opportunity cost of completing a graphing question is

= 30 ÷ 15

= 2 essay question

c) Sammy's opportunity cost of completing an essay question is

= 20 ÷ 35

= 0.57 graphing question

d) Sammy's opportunity cost of completing a graphing question is

= 35 ÷ 20

= 1.75 essay question

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