Answer:
C. the actual cost of materials was less than the standard cost.
Explanation:
As it can be seen from the given information that
The Favorable material purchase price is $380
And, non-favorable material quantity variance is $120
So, the total favorable price variance is
= $380 - $120
= $260
This represents that the actual material cost would be lower than the standard cost
hence, the option C is correct
Answer:
$315,250
Explanation:
total discount on bonds payable = $320,000 - $315,000 = $5,000
amortization of bond discount per coupon payment = $5,000 / 20 = $250
bonds carrying value after the first coupon payment is made = $315,000 + $250 = $315,250
Dr Interest expense 8,250
Cr Cash 8,000
Cr Discount on bonds payable 250
Answer:
- What is the maximum amount you should pay to purchase a share of Angelina's stock.
$36,00
Explanation:
The dividend discount model state that the price of a stock should be the result of the Present Value of all of its future dividends, the Gordon growth model indicates that:
Price per Share = D / (r - g) = $2,16 / (0,10-0,04) = $36
Where:
D = the estimated value of next year's dividend
r = The required rate of return
g = the constant growth rate
To this case the value is: $2,16 / (0,10-0,04) = $36
Answer:
a. Journal entries to record the reinstatement of the account receivable
Account Title and Description Debit Credit
Account receivable account $600
Allowance for Doubtful Accounts account $600
(Reinstatement of the account receivable)
b. Journal entries to record the receipt of cash
Account Title and Description Debit Credit
Bank Account $600
Account receivable account $600
(Receipt of cash)
