Question 25(Multiple Choice Worth 4 points)

On January 1, 2017, Marin Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide t

kap26 [50]

Answer and Explanation:

The Journal entry is shown below:-

1. Debt Investment Dr, $344,260.74

To Cash $344,260.74

(Being cash paid is recorded)

2. Interest Receivable Dr, $38,400

To Debt Investment $3,973.93

To Interest Revenue $34,426.07

(Being interest received is recorded)

Fair Value Adjustment Dr, $1,713.19 ($342,000 -$340,286.81)

To Unrealized Holding Gain or Loss - Equity $1,713.19

(Being fair value adjustment is recorded)

3. Unrealized Holding Gain or Loss - Equity $7928.68

($335,915.49 - $329,700 + $1,713.19)

To Fair Value Adjustment 7,928.68

(Being unrealized loss or gain is recorded)

Working note

Book value of Interest Interest Amortization Book value

debt beginning Revenue Receivable (d = c - d) of debt

(a) b=(a × 10%) c at the end

($320,000 × 12%) (e - d)

$344,260.74 $34,426.07 $38,400 $3,973.93 $340,286.81

$340,286.81 $34,028.68 $38,400 $4,371.32 $335,915.49

8 0

3 years ago

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of

zalisa [80]

Answer:

Ponzi Products

a) Net income for the next quarter:

= $50

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

Explanation:

a) Production of chain-letter kits for the quarter = 100 units

Total production cost (outlay) = $1,000 (100 * $10)

Sales in the second quarter = $550 (50 * $11)

Sales in the third quarter = $600 (50 * $12)

Cash collections:

Third quarter = $550

Fourth quarter = $600

a) Net income for the next quarter:

Sales revenue = $550

Production cost 500 ($1,100 * 50/100)

Net income = $50 ($550 - $500)

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

6 0

3 years ago

Greg, a project manager in your company, is falling behind on the project schedule. He has elected to crash the project. What is

Vinil7 [7]

Answer:

c) Adding additional project resources to the project

Explanation:

Falling behind schedule is something that needs to be avoided or dealt with promptly and systematically

Crashing is the technique to use when fast tracking has not saved enough time on the project schedule. You use crashing to save resources to the project for the least cost possible. Anyhow, crashing is expensive because more resources are added to the project.

References:

Dave. “A Step-by-Step Process of Dealing with a Project That Is Falling behind Schedule.” MyClientSpot Blog, 10 Sept. 2015

Monnappa, Avantika. “Project Management Learning Series: Fast Tracking Versus Crashing.” Simplilearn.com, Simplilearn, 27 Sept. 2019,

5 0

3 years ago

"during the 1980s, incompatible computer products resulted in ____."

PIT_PIT [208]

Excessive spare parts inventories, a lack of transferable employee skills, increased support costs.

7 0

3 years ago

Jane ran 23/10 miles. what is this fraction as a mixed number

scoray [572]

2 3/10 miles is the answer.

7 0

3 years ago

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