The carrying value of bonds at maturity always equals: Multiple Choice the amount of discount or premium. the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. the par value of the bond. the amount of cash originally received in exchange for the bonds. the amount in excess of par value.

Answers

Answer 1

Answer: the par value of the bond

Explanation:

The carrying value of bonds at maturity will always be equal to the par value of the bond. The carrying value of a bond is simply refered to as the bond's face value or par value plus the premiums taht are unamortized.

We should note that during the time of maturity of the bond, there'll have been an ammortization of the discounts or premiums, while the bond's par value will be left.

Answer 2

The carrying value of bonds at maturity always equals to the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. Thus, option (b) is correct.

At maturity, bonds' carrying values will always be the same as their par values. The face value or par value of a bond plus any unamortized premiums are simply referred to as the bond's carrying value.

To put it another way, it is the total of a bond's face value, any unamortized premiums, and any unamortized discounts, if any. The par value, interest rate, and remaining maturity period of the bond must all be known before calculating the carrying value using the effective interest rate technique.

Therefore, option (b) is correct.

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Related Questions

3. What do you think has more risk: buying corporate bonds or buying a second house in hopes that housing prices increase?

Answers

Answer:

buying a second house

Explanation:

bonds have a high chance of providing returns whereas the housing market is very hard to predict

A researcher was interested in the relationship between the number of texts sent in a day and the number of e-mails sent in a day by employees at a certain company. Using 15 data values, a 90 percent confidence interval for the slope of a regression model was found to be (2.31, 3.47). The researcher claims that the interval would have been narrower with a different sample size if all other things remained the same. Which of the following sample sizes would make the researcher's claim NOT true?
A. 14
B. 16
C. 20
D. 30
E. 100

Answers

Answer:

A. 14

Explanation:

the researcher claims that the width of the interval would have been smaller if the sample had been different, and in this case different refers to larger. The original sample included only 15 people, so in order to increase the data sample, you must include more than 15 people. That is why 14 doesn't make sense.

The definition of environmentalism is_____.

A) Company policies aimed at curbing air and water pollution and over-harvesting of forest

B) The study of geology and how climate and to rain affect the evolution of societies

C) A worldwide movement that began in the 1970s and whose purpose is to protect the air, land, and water

D) The study of how children are affected more strongly by their environment than they are by heredity

Answers

Answer:

C

Explanation:

because of the word "environmentalism" which gives meaning and purpose to the term as a group or movement.

During its first year of operations, Mack's Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollectible using the direct write-off method, and reported net income of $63,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible. $ fill in the blank 1

Answers

Answer: $58600

Explanation:

The net income that would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible will be calculated thus:

= Reported net income + Uncollectible - (Sales × % Uncollectible)

= $63800 + $9300 - ($580000 × 2.5%)

= $63800 + $9300 - $14500

= $58600

Current Attempt in Progress
Cullumber Company entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $42,500 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $31,900 from Ladd on account.
3. Paid $2,900 cash for May rent on storage space.
4. Performed computer services worth $17,900 on account.
5. Performed computer services for Wharton Construction Company for $5,400 cash.
6. Paid Western States Power Co. $8,300 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $1,600 on account.
9. Received $14,000 cash from customers for contracts billed in (4).
Create a tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Answers

Answer:

Assets = Liabilities + Stockholders' Equity = $68,600

Explanation:

Note: See the attached excel file for the tabular analysis of the effect of each transaction on the accounting equation.

From the attached excel file, we have:

Assetes = Total assets balance = = $18,800 + $17,900 + 31,900 = $68,600

Liabilities = Total liabilities balance = $1,600

Stockholders' Equity = Total Common Stock balance + Total  Net Income balance = $42,500 + $25,500 = $67,000

Liabilities + Stockholders' Equity = $1,600 + $67,000 = $68,600

Therefore, we have:

Assets = Liabilities + Stockholders' Equity = $68,600

Boss Company reported the following results for the year ended December 31, 2019, its first year of operations: 2019 Income (per books before income taxes) $ 1,500,000 Taxable income 2,500,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2019. What should Boss record as a net deferred tax asset or liability for the year ended December 31, 2019, assuming that the enacted tax rates in effect are 40% in 2019 and 35% in 2020

Answers

Answer:

$350,000 deferred tax asset.

Explanation:

Calculation to determine What should Boss record as a net deferred tax asset or liability for the year ended December 31, 2019,

Using this formula

December 31, 2019 Net deferred tax asset or liability=Taxable income -2019 Income (per books before income taxes)

Let plug in the formula

December 31, 2019 Net deferred tax asset or liability=(2,500,000 - $ 1,500,000) × 35%

December 31, 2019 Net deferred tax asset or liability= $350,000 deferred tax asset.

Therefore what Boss should record as a net deferred tax asset for the year ended December 31, 2019 is $350,000

Riverview Company's budget for the coming year includes $7,000,000 for manufacturing overhead, 40,000 hours of direct labor, and 200,000 hours of machine time. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.4 machine hours and 0.30 labor hours to complete

Answers

Answer:

$70

Explanation:

With regards to the above, we need to compute first the overhead application rate.

Overhead application rate = Budgeted overhead / Budgeted activity/Budgeted machine hour

= $7,000,000 / 40,000 labor hours

= $175

Overhead application rate = $175 per direct labor hour

Assigned overhead = Overhead application rate × Number of machine hours consumed

= $175 × 0.4

= $70

Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson:
Direct material $340,000
Direct labor 610,000
Allocated variable overhead 420,000
Allocated fixed cost 110,000
Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?
A. $530,000.
B. $950,000.
C. $1,370,000.
D. $1,480,000.
E. None of the answers is correct.

Answers

Answer:

C. $1,370,000

Explanation:

Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity

Direct material $340,000

Direct labor $610,000

Allocated variable overhead $420,000

Minimum bid price $1,370,000

($340,000+$610,000+$420,000)

Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield

Answers

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $42,500 to J.D. His basis in his Clampett, Incorporated, stock on January 1, 2021, was $36,000. For 2021, J.D. was allocated $11,800 of ordinary income from Clampett, Incorporated, and no separately stated items. How much capital gain does J.D. recognize related to Clampett, Incorporated, in 2021

Answers

Answer:

See bellw

Explanation:

Income of J.D related to Clampett = Ordinary income + Capital gain

Given that

Basis distribution = $42,500

Basis stock = $36,000

Ordinary = $11,800

But Capital gain = Basis distribution - (Basis stock + Ordinary income

= $42,500 - ($36,000 + $11,800)

= $42,500 - $47,800

= - $5,300

Therefore, J.D income related to Clampett

= Ordinary income + Capital gain

= $11,800 - $5,300

= $6,500

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue - $ 39.10 Personnel expenses $ 35,100 $ 10.30 Medical supplies 1,100 7.10 Occupancy expenses 8,100 1.10 Administrative expenses 5,100 0.20 Total expenses $ 49,400 $ 18.70 The activity variance for net operating income in July would be closest to:

Answers

Answer:

$1,836 unfavorable

Explanation:

The computation of the activity variance for net operating income in July is shown below:

net income is

= $39.10 - $18.70

= $20.40

And, the difference in activity is

= 3,250 - 3,160

= 90    

Now the activity variance for net operating income is

= $20.40 × $90

= $1,836 unfavorable

1. Caleb owns a used book shop, charging $8 for each used book that he sells. It costs him $3.50 for each used book and $0.16 per bag. In addition, he spends $1150 on rent, $92 on electricity, and $2240 on labor costs each month. Analyze Caleb's business by answering the following questions. (5 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point; Part V - 1 point) Part I: What is Caleb's unit cost per used book that he sells

Answers

Answer: $3.66 per book

Explanation:

Every book that Caleb sells costs him $3.50 and he puts it in a bag that costs $0.16.

Units cost per used book is therefore:

= Unit cost of book + bag cost

= 3.50 + 0.16

= $3.66 per book

Teozocior.01.010
o
.
Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.

Answers

Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $1,800. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January.

Required:
a. Record (in summary form) the S3,500 in gift cards sold (keeping in mind that, in actuality, the firm would record each sale of a gift card individually).
b. Record the S728 in gift cards redeemed.
c. Determine the balance in the Deferred Revenue account (remaining liability for gift cards).

Answers

Answer:

General Journal Debit Credit

1 Cash 2600  

Unearned revenue  2600

(To record gift cards sold)  

2 Unearned revenue 832  

Sales tax payable  32

Sales revenue  800

(To record gift cards redeemed)  

Advanced Enterprises reports year−end information from 2019 as​ follows: Sales​ (160,250 units) ​$969,000 Cost of goods sold ​(641,000) Gross margin ​328,000 Operating expenses ​(268,000) Operating income ​$60,000 Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by​ 13.5%, and as a result expects a decrease in sales volume of​ 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold

Answers

Answer:

Cost of goods sold = $576,900

Explanation:

The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .

Sales volume in year 2020= (100-10)% ×  sales figure for 2019

                                            = 90% × 160,250=  144,225  

Cost of goods sold per unit =  cost of goods sold in 2019/Sales units in 2019

                                              = 641,000/160250=$4

Cost of goods sold =  $4× 144,225 =  $576,900

Cost of goods sold = $576,900

After a rough week and against her better judgment, Pari tells Vihaan she is tired of arguing with him over trip reports. She makes an exception for him and, against policy, says he no longer needs to fill them out. A week later, another sales rep comes to her and asks to stop preparing reports, just like Vihaan. Why do you think Pari now has a managerial problem

Answers

Answer:

Hello the options related to your question is missing below are the missing options

A. She administered punishment to Vihaan.

B. She misused the ERG theory with Vihaan.

C. She failed to provide procedural justice.

D. She misused the expectancy theory with Vihaan.

answer : She failed to provide procedural justice. ( C )

Explanation:

Pari has a managerial problem because she failed to provide procedural Justice

Procedural justice is simply treating every employee equally as regards to a certain work procedure at the workplace, Pari did not exhibit that when she excepted Vihaan

20 POINTS AND BRAINLIEST. Mike wants to pursue a job in energy. He goes to college to become
an electrician but before he can have his own license, he must work
for a licensed electrician for two years to gain experience. This is an
example of a(n)

internship

apprenticeship

bachelor's degree program

doctorate program

Answers

Answer:

appreticeship

Explanation:

Have a good day! I hope this helps. Please let me know if I get this correct :)

After analyzing the scenario, this is an example of an apprenticeship. Thus, option B is the correct option.

What is apprenticeship?

A new generation of practitioners of a trade or profession are trained through the apprenticeship system, which combines classroom instruction and reading with on-the-job training. Apprenticeships can also help professionals get a license to work in a regulated field. The majority of their training is completed while they are employed by an employer that assists the apprentices in learning their trade or profession in exchange for their continuous labor for a certain length of time once they have attained demonstrable competence.

The duration of apprenticeships varies greatly between industries, occupations, roles, and cultures. The "journeyman" or professional certification level of competence may occasionally be attained by those who successfully complete an apprenticeship.

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At year-end, Yates Company estimates that $1,500 of its accounts receivable balance is uncollectible. Yates uses the allowance method to account for bad debts. The entry to record this adjusting entry would include a: Multiple choice question. debit to Allowance for Doubtful Accounts and credit to Bad Debts Expense debit to Accounts Receivable and credit to Bad Debts Expense debit to Bad Debts Expense and credit to Accounts Receivable debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts

Answers

Answer:

debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts

Explanation:

The journal entry needed to record the adjusting entry by using the allowance method is given below:

Bad debt expense    

                 To Allowance for doubtful debts

(Being bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expense and credit the allowance as it decreased the assets

Crane Sporting Goods expects to have earnings per share of $6 in the coming year. Rather than reinvest these earnings and grow, the firm plans to pay out all of its earnings as a dividend. With these expectations of no growth, Crane's current share price is $60 and the cost of equity capital is 10%. Suppose Crane could cut its divident payout rate to 75% for the foreseeable future and use the retained earnings to open new stores. The return on investment in these stores is expected to be 12%. if we assume that the risk of these new investments is the same as the risk of its existing investments, then the firm's equity cost of capital is unchanged. What effect would this new policy have on Crane's stock price

Answers

Answer:

Stock price increases

Explanation:

We need to determine the stock price with the new policy

Stock price can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

growth rate = retention rate x Return on investment

Retention rate = 1 - payout ratio = 1 - 0.75 = 0.25

growth rate = 0.25 x 12 = 3%

Stock price = 6/(0.10 - 0.03) = $85.71

Under the new policy, stock price increases

rede Company budgeted selling expenses of $30,600 in January, $34,500 in February, and $40,500 in March. Actual selling expenses were $31,700 in January, $34,080 in February, and $48,400 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

Answers

Answer:

JANUARY

By month

$1,100 Unfavorable

Year-to-date

$1,100 Unfavorable

FEBRUARY

By month

$420 Favorable

Year-to-date

$680 Unfavorable

MARCH

By month

$7,900 Unfavorable

Year-to-date

$8,580 Unfavorable

Explanation:

Preparation of a selling expense report that compares budgeted and actual amounts by month and for the year to date

SELLING EXPENSE REPORT

JANUARY

By month

Budget Actual Difference

$30,600 -$31,700 =$1,100 Unfavorable

Year-to-date

Budget Actual Difference

$30,600-$31,700=$1,100 Unfavorable

FEBRUARY

By month

Budget Actual Difference

$34,500-$34,080=$420 Favorable

Year-to-date

Budget Actual Difference

$65,100-$65,780=$680 Unfavorable

($30,600+$34,500=$65,100)

($31,700+$34,080=$65,780)

MARCH

By month

Budget Actual Difference

$40,500-$48,400=$7,900 Unfavorable

Year-to-date

Budget Actual Difference

$105,600-$114,180=$8,580 Unfavorable

($65,100+$40,500=$105,600)

($65,780+$48,400=$114,180)

Freemore Company has the following sales budget for the last six months of 2018: July $206,000 October $181,000 August 168,000 November 203,000 September 209,000 December 185,000 Sales are immediately due, however the cash collection of sales, historically, has been as follows: 55% of sales collected in the month of sale, 35% of sales collected in the month following the sale, 7% of sales collected in the second month following the sale, and 3% of sales are uncollectible. Cash collections for September are ________. $126,710 $199,930 $188,170 $173,750

Answers

Answer:

the cash collection for the September month is $188,170

Explanation:

The computation of the cash collection for the September month is given below:

= September collection  + August collection + July collection

= $209,000 ×0.55 + $168,000 × 0.35 + $206,000 × 0.07

= $114,950 + $58,800 + $14,420

= $188,170

hence, the cash collection for the September month is $188,170

Therefore the third option is correct

Assume the following information for Splish Brothers Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 950,000
Collections 902,000
Write-offs of accounts receivable 5,500
Collections of accounts previously written off 2,300
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
1. Prepare the entry to record the write-off of uncollectible accounts during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Prepare the entry to record bad debt expense for the period.

Answers

Buddy I got a hold on hood buddy I got

Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2019, an asset account for the company showed the following balances:


Equipment $350,000
Accumulated depreciation through 2018 165,000

During 2019, the following expenditures were incurred for the equipment:

Major overhaul of the equipment on January 1, 2019, that improved efficiency $42,000
Routine maintenance and repairs on the equipment 5,000

The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $20,000 estimated residual value. The annual accounting period ends on December 31.

Required:
Record the adjusting entry for depreciation on the equipment during 2018.

Answers

Answer: See explanation

Explanation:

The adjusting entry for depreciation on the equipment during 2018 will be calculated as:

Depreciation = (Equipment cost - Estimated residual value) / Estimated life

= ($350000 - $20000) / 8

= $41250

Debit: Depreciation = $41250

Credit: Accumulated depreciation = $41250

(To record depreciation for the year)

If you use a check to pay your monthly rent,
A. the check is not money because it is not part of M1.
B. you have used money because the landlord accepted it as a means of payment.
C. the check is considered money because you received something in return.
D. the check becomes money when it arrives at the landlord's bank.
E. the check is not money because it is just an instruction to your bank to make a payment

Answers

Answer:

E

Explanation:

Money is an economic unit that is generally accepted as a medium of exchange in the economy

Functions of money  

1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans

2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans

3. Store of value : money can retain its value over the long term, this it can be used as a store of value

M1 includes the most liquid from of money. It includes currency, demand deposits and checking account.

A check is not a form of money. It can be defined as a note or an instruction to a bank to make a payment. The payment can either be honoured or not be honoured

Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1.

Answers

Answer:

Spalding Pointers Corporation

Sales Budget

For the first quarter of year 1.

Details                                     January             February        March  

Sales revenue ($)                   120,000              126,000       132,300

Explanation:

Before preparing the sales budget, the following are calculated first:

Expected sales in January year 1 = $120,000

Expected sales in February year 1 = Expected sales in January year 1 * (100% + Expected percentage increase) = $120,000 * (100% + 5%) = $126,000

Expected sales in March year 1 = Expected sales in February year 1 * (100% + Expected percentage increase) = $126,000 * (100% + 5%) = $132,300

The sales budge will now look as follows:

Spalding Pointers Corporation

Sales Budget

For the first quarter of year 1.

Details                                     January             February        March  

Sales revenue ($)                   120,000              126,000       132,300

Taking a smartphone to the gym when you work out becomes more popular. What is the result of this event?

As a result, _______.
A. the quantity of smartphones demanded increases
B. the demand for smartphones increases
C. the quantity of smartphones demanded decreases
D. the demand for smartphones decreases

Answers

Answer:

B is the answer

Explanation:

it's B i think

When the smartphone you take to gym becomes more popular, then, the result will be an an increases in demand for smartphones

Demand means the willingness to acquire a product or service. Here, the popularity of the smartphone will result to an increase in its demand because people want to use the smartphone.

Hence, when the smartphone you take to gym becomes more popular, then, the result will be an an increases in demand for smartphones

Therefore, the Option B is correct

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If an adjusting entry is not made for an accrued expense,
a. expenses will be overstated,
b. liabilities will be understated.
c. net income will be understated.
d. equity will be understated.​

Answers

Answer:

c. net income will be understated.

Satka Fishing Expeditions, Inc., recorded the following transactions in July
1. Provided an ocean fishing expedition for a credit customer, payment is due August 10
2. Paid Marine Service Center for repairs to boats performed in June. (In June, Satka Fishing Expeditions, Inc., had received and properly recorded the invoice for these repairs.)
3. Collected the full amount due from a credit customer for a fishing expedition provided in June.
4. Recelved a bill from Baldy's Bait Shop for bait purchased and used in July. Payment is due August 3
5. Purchased a new fishing boat on July 28, paying part cash and issuing a note payable for the balance. The new boat is first scheduled for use on August 5
6. Declared and paid a cash dividend on July 31
Indicate the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July.
Choose I for increase, D for decrease, and NE for no effect in the column headings below to show the effects of the above transactions.

Answers

Answer:

Satka Fishing Expeditions, Inc.

Indication of the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July:

Transaction             Income Statement                       Balance Sheet

                 Revenue  - Expenses = Net Income  Assets = Liabilities + Equity

1.                    I                    NE               I                   I                                 I

Accounts Receivable and Sales Revenue

2.                  NE                 NE               NE              D                  D          NE                      

Accounts Payable and Cash

3.                  NE                 NE               NE              NE (I and D)  NE      NE

Cash and Accounts Receivable

4.                 NE                  I                  D                NE                 I            D

Supplies Expenses and Accounts Payable

5.                 NE                 NE               NE              I/D                I            NE

Boat Purchased, Cash and Note Payable  

6.                 NE                NE                D              NE                 NE         D

Retained Earnings and Cash

Explanation:

a) Data and Transaction Analysis:

1. Accounts Receivable and Sales Revenue

2. Accounts Payable and Cash

3. Cash and Accounts Receivable

4. Supplies Expenses and Accounts Payable

5. Boat Purchased, Cash and Note Payable  

6. Retained Earnings and Cash

b)

Key:

I = increase

D = decrease

NE = no effect

No. 3 will increase the assets (cash) by the amount and decrease the assets (accounts receivable) by the same amount.  Overall, there will be no effect as the increase cancels the decrease equally.

Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

Original Budget Actual Costs
Variable overhead costs:
Supplies $7,980 $8,230
Indirect labor 29,820 29,610
Total variable manufacturing overhead cost $37,800 $37,840

The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?

a. $130 Unfavorable
b. $950 Favorable
c. $1,440 Unfavorable
d. $1,310 Favorable

Answers

Answer:

c. $1,440 Unfavorable

Explanation:

Variable overhead efficiency variance = (Standard hours - Actual working hours) * Standard Rate

Variable overhead efficiency variance = ($4,190 hours - $4,350 hours)*($37,800/4,200 hours)

Variable overhead efficiency variance = ($4,190 hours - $4,350 hours)*$9 per hour

Variable overhead efficiency variance = 160 hours*$9 per hour

Variable overhead efficiency variance = $1,440 Unfavorable

The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.4 percent per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current Policy New Policy ?
Price per unit $ 93 ?
Cost per unit $ 44 $ 44
Unit sales per month 2,675 2,750
X Answer is complete but not entirely correct.
Break-even price $ 92.87 x

Answers

Answer: $93.86

Explanation:

The break even price simply refers to the price that's required to make a normal profit. From the information given, the break even price will be:

= [($93-$44) × 2675)/2750) + 44] × ( 1 + 2.3%)

= [$49 × 2675)/2750)+44] × (1+0.024)

= [(49 × 2675)/2750)+44] × 1.024

= [(131075/2750) + 44] × 1.024

= (47.66 + 44) × 1.024

= 91.66 × 1.024

= $93.86

Therefore, the break even price is $93.86

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