Portland power and light recently issued bonds that offered no collateral except the reputation and established name of the Portland power and light company. These represent <u>debenture</u> bonds.
A debenture is a kind of bond which is unsecured by collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Like bonds, debentures may pay periodic interest payments called coupon payments.
The Portland power and light issues bonds which offer no collateral except the reputation and established name of company. Thus, this is a characteristic of debenture bonds.
Hence, debentures are frequently issue by both corporations and governments to raise capital.
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Answer:
Unitary cost= $155.8
Explanation:
<u>First, we need to determine the overhead allocation rate:</u>
<u />
P<u>redetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base</u>
Predetermined manufacturing overhead rate= (562,400/76,000) + 2.3
Predetermined manufacturing overhead rate= $9.7 per machine hour
<u>Now, we can calculate the total cost of Job A496:</u>
<u />
Number of units in the job 20
Total machine-hours 80
Direct materials $780
Direct labor cost $1,560
Total cost= 780 + 1,560 + (9.7*80)
Total cost= $3,116
<u>Finally, the unitary cost:</u>
Unitary cost= 3,116/20
Unitary cost= $155.8
Answer:
1)
Debit Cash/Bank 27,000 (4,500 shares x $6 per share)
Credit Common Stock 13,500 (4,500 shares x $3 per share)
Credit Paid-In Capital in Excess of Stated Value—Common 13,500 (4,500 shares x $3 per share)
2)
Debit Cash/Bank 135,000 (4,500 shares x $30 per share)
Credit preferred Stock 135,000 (4,500 shares x $30 per share)
Explanation:
any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"
First calculate sam's share income
40000/2=20000
sam's capital account balance at the end of the year is
sam capital - withdrawals + share income
58,000−15,000+20,000
=63,000
So the answer is 63000
Hope it helps!