Which of the following is far more effective, has greater longevity, and has a far wider audience than advertising?

Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a yea

Aleks04 [339]

Answer:

a)

period interest interest discount amortized bond's

payment expense on BP discount carrying value

0 49,320.60 750,679.40

1 32,000 37,533.97 43,786.63 5,533.97 756,213.37

2 32,000 37,810.67 37,975.96 5,810.67 762,024.04

3 32,000 38,101.20 31,874.76 6,101.20 768,125.24

4 32,000 38,406.26 43,786.63 6,406.26 774,531.50

b)

December 31, 2017, accrued interest on bonds payable

Dr Interest expense 19,050.60

Cr Interest payable 16,000

Cr Discount on bonds payable 3,050.60

c)

total interest expense year 2007:

($37,533.97/2) + $37,810.67 + ($38,101.20/2) = $18,776.99 + $37,810.67 + $19,050.60 = $75,638.26

Explanation:

the market price of the bonds:

$800,000 / 1.05¹⁰ = $491,130.60

$32,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $259,548.80

market price = $750,679.40

discount on bonds payable $49,320.60

discount amortization first payment = (750,679.40 x 0.05) - 32,000 = 5,533.97

discount amortization second payment = (756,213.37 x 0.05) - 32,000 = 5,810.67

discount amortization third payment = (762,024.04 x 0.05) - 32,000 = 6,101.20

discount amortization fourth payment = (768,125.24 x 0.05) - 32,000 = 6,406.26

3 0

2 years ago

2. Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer

Advocard [28]

Answer:

See explanation section

Explanation:

a) Implementing an urban planning project is an example of speculative risk. There is a huge uncertainty before implementing a project as well as after its implementation regarding its gross outcomes. Projects of any type can completely fail. But there are some cases that they succeed; they may spawn some positive outcomes for a specific community. In any project, there is always a probability of both gain and loss.

b) There are a lot of possible adverse outcomes of this type of risk. Maybe the project is not running sustainably. The ground condition may not be suitable afterward, but inclement weather can reduce the desired project utilitarian. It can attribute an adverse impact on the present environment. Assume that the budget cross before the implementation of that project. Finally, these sorts of adverse outcomes may result in the project’s failure.

c) Project risk can also beget some positive outcomes. In this type of threat, after implementation of that project, it may run sustainably. The ground and atmospheric conditions may appear suitable for this specific project. The approved budget may consider sufficient for the project implementation. That is how; these sorts of positive outcomes may result in the project’s success.

d) These types of risks, both positive and negative, may create unexpected expenses. If we think about the real risks, to manage these risks, we should exploit, share and enhance the specific risk, And in case of managing the harmful risks, we should transfer into a better resource-based project or try to mitigate the negative impacts of the project. Both of these efforts can be considered as unexpected expenses.

e) To protect myself against the real risks, I’ll exploit the specific risk. Because operating the risk is about increasing the chances of positive effects, the risk may have on the project. But if it is about the detrimental risks, I’ll try to avoid the risks by doing some activities like delegating tasks, changing the deadline, and increasing the human resources of the project team.

5 0

3 years ago

Modern Railways Co. operates a cargo railroad service between New York and Boston. A train owned by Modern Railways derails due

Verizon [17]

Answer: Special damages

Explanation: In simple words, special damages refers to the claim made by the injured person for the losses he or she suffered due to negligence of duty by the defendant.

In the given case, the train that is owned by the modern railways collided with a truck owned by craft co resulting in a loss of $100,000 of the former.

Hence if Craft co proves that the accident happened due to the negligence from the side of modern railways then they can claim special damages.

4 0

3 years ago

The Dlabay Company had a quick ratio of 1.4, a current ratio of 2.75, an inventory turnover of 6 times, total current assets of

Gnesinka [82]

Answer:

Annual sale is $2,282,728.80 and ACP is 44.87 days

Explanation:

Since the annual sales are not given, so first we have to compute the current liabilities amount, then inventory amount, after that, only the sales amount could be found

So, the current liabilities = Current assets ÷ current ratio

= $775,000 ÷ 2.75

= $281,818

Now the quick ratio = (Current assets - inventory) ÷ current liabilities

1.4 times = ($775,000 - inventory) ÷ $281,818

$394545.20 = $775,000 - inventory

So, inventory = $380,454.80

Now, the inventory turnover equals to

Inventory turnover ratio = (Turnover ÷ average inventory)

6 times = Annual sales ÷ 380454.80

So, annual sales = $2,282,728.80

The computation of the ACP is shown below:

= (Account receivable ÷ credit sales) × 360 days

Since account receivables is not given so first, we have to calculate it which equals to

= Current assets - cash - inventory

= $775000 - $110,000 - $380,454.80

= $284545.20

Now put these values to the above formula

So, the value would equal to

= ( $284545.20 ÷ $2,282,728.80) × 360 days

= 44.87 days

5 0

3 years ago

Pizza International, Inc. operates 700 family restaurants around the world. The company’s annual report contained the following

Thepotemich [5.8K]

Answer:

$22,546

Explanation:

The preparation of the Cash Flows from Operating Activities -Indirect Method is shown below:

Cash flow from Operating activities

Net loss -$9,473

Add: depreciation $33,350

Less: Increase in Receivables -$179

Add: Decrease in Inventory $661

Less: Increase in Prepaid Expenses -$673

Less: Decrease in Accounts Payable -$2,291

Less: Decrease in Accrued Liabilities -$728

Add: Increase in Income Taxes Payable $1,879

Net Cash flow from Operating activities $22,546

Note payable is considered long term liabilities. Hence, we ignored it

The positive sign shows the inflow of cash while the negative sign shows the outflow of cash and the same is shown above

7 0

3 years ago