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1 year ago

A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.

1 answer:

5 0

When you see a journal entry that leads to a debit of Raw Materials and a credit of Accounts Payable, this is a<u> C. purchase of materials. </u>

<h3 /><h3>What happens when materials are purchased?
</h3>

As materials are an asset, the raw materials account will be debited to show that raw materials are increasing.

If the Accounts Payable is credited, it means that it is increasing as well because it is a liability. The transaction was therefore done by buying the materials on credit.

In conclusion, option C is correct.

Find out more on raw materials purchases at brainly.com/question/26446159.

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currently, a firm has an EPS of $2.08 and a benchmark PE of 12.7. Earning are expected to grow by 3.8 percent annually. What is

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Answer:

$26.42

Explanation:

According to the given situation, the computation of the estimated current stock price is shown below:-

Estimated current stock price = Earning per share × PE ratio

= $2.08 × 12.7

= $26.42

Therefore for computing the estimated current stock price we simply applied the above formula and ignore all other value as they are not relevant.

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2 years ago

Using a minus (-) sign before a keyword search indicates that A. you're adding a "+" and then a "-"to refine the search. B. it's

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The correct answer is D, The word following the '-' is to be excluded from the search.

When searching something on any search engine, if we use a hyphen before a keyword, that looks like a minus sign, " - ", it gives results opposite to that keyword. It will exclude all the searches including that keyword. Similarly, if we use a Plus sign, " + ", before a keyword, it will show us the results containing this keyword.

There are many symbols that are used to refine our search. For example, colon, semicolon, quotation marks, two periods, asterisk, etc are used to refine our search.

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3 years ago

National Storage issued $90 million of its 10% bonds on April 1, 2018, at 99 plus accrued interest. The bonds are dated January

Ahat [919]

Answer:

The total amount of cash received is $91,350,000

Explanation:

The amount of cash proceeds realized from the bond issuance is the 99% of face value of $90 million plus the coupon interest due from January 2018(date of the bond) to April 1 ,2018(the date of bond issuance),that is three months of coupon interest payment.

The bond proceeds is computed as below:

Discounted bond price 99%*$90,000,000 =$ 89,100,000

Three months of interest 10%*$90,000,000*3/12 =$2,250,000

Total amount received from bond issue $91,350,000

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2 years ago

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On J

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Answer:

1. The Ensor's stock measurement date is January 01, 2021

2. Compensation expense for the stock option is $50 million

3. Please see journal entry in the explanation below.

Explanation:

1. It was clearly indicated in the question that on January 1, 2021 , 32 million stock options were granted hence measurement date is ; 1st of January, 2021

2. The fair value per stock option is $6

Therefore, total compensation expenses = $6 × 25 million

= $150 million

Since the options are exerciseable between 01/01/2024 and 01/01/2026

The period for vesting will be 3 years from 01/01/2021 - 31/12/2023

Therefore, the compensation expense for the stock option in year 2021 = Total compensation expense/ Vesting period

= $150 million /3

= $50 million

3. Since 2.6 million(10%) were forfeited, 90% represent the remaining unforfeited. I. e (100%-10%)=90%

In 2022, which is the second year of the vesting period, compensation expense would be;

Compensation expense of 2022 = (Total compensation expense * 90% * the order of the period / Number of period - Compensation expense of

2021

= $150 million *90% *2/3 - $50 million

=$40 million.

In 2023,

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Compensation expense. $40 million

Paid in capital stock options. $40 million

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2 years ago

Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling fo

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Answer:

The YTM is less than 10%

Explanation:

If a coupon rate of a bond is greater than its yield to maturity (YTM), the bond is said to trade at a premium. The Bond's current price would be greater than its Face value

If a coupon rate of a bond is less than its yield to maturity (YTM), the bond is said to trade at a discount. The bonds current price would be less than its face value

In this Question, the bond's current price ($1,197.93) is greater than its face

($1,000) which means that the bond is trading at a premium. Therefore, we can conclude that the bond's YTM is less than its coupon payment. In this question the coupon rate is 10%, therefore the YTM should be less than 10%.

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2 years ago