Answer:
Note: The organized question is attached
<u>Description of each transaction</u>
1. Merchandise purchased on account as a cost of $39,200, which is $40,000 less 2% discount of $800
2. Paid fright charge of $450
3. An allowance or return of merchandise was granted by the seller, $4,900, which is an invoice amount of $5,000 less 2% discount of $100
4. The balance due of $34,300 ($39,200 - $4,900) was paid within the discount period
Answer:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Explanation:
Current liability refers to a short-term liability that is that is due for a payment within a year.
Long-term liability refers to a liability that is that is due for a payment more than one year in the future.
Not a liability - This implies that a liability is no longer a liability the moment a payment is made for it or the moment it is paid.
Based on the above, we therefore have:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Answer: e. the lowest variable cost per unit that can reasonably be expected.
Explanation:
The lowest variable cost per unit that can reasonably be expected will be used in the computation of the best-case analysis of a project.
It should be noted that the lower variable costs will tend to increase the profit of a company under the best case analysis and therefore when it's being compared with other options, it's the correct option.
Therefore, the correct option is E.
Answer:
The statement is: False.
Explanation:
The United States Pendleton Civil Service Act, effective from 1883, is legislation that established fair practices while employing individuals. The Act was named after Senator George H. Pendleton (1825-1889) states that employers must provide applicants job positions based on their merit instead of their political party affiliation.
Thus, <em>the Civil Service Act was enacted in the 19th century, not the 20th</em>.
$1,000-par-value bond had a 5.700%
Current price quote of 97.708
Yield to maturity (YTM) of 6.034%.
A.What was the dollar price of the bond?
Dollar price of bond = Par-value bond x Price of quote
$1,000 x 0.97708= $977.08
b.What is the bond’s current yield?
Current Yield = discount (or coupon) x par-value)/Dollar price of bond
= (0.057000 x $1,000)=57
57/$977.08= 0.05833708601 or 5.83%
C.Is the bond selling at par, at a discount, or at a premium? Why?
The reason been that the bond is selling at discount due to the fact that the coupon is lower than both the current yield and yield to maturity (YTM).
d.Compare the bond’s current yield calculated in part b to its YTM and explain why they differ?
The bond’s current yield in part (b ) is lower because the coupon is so high. If the discount were lower, then the current yield would be close to or the same as the YTM.
