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Sonja [21]
3 years ago
6

Brazen Inc. sells bonds with a face value of $1,000,000 and a contractual interest rate of 10% for $1,200,000. The bonds will ma

ture in 10 years. Using the straight-line method of amortization, how much interest expense will be recognized in year 1?
Business
1 answer:
chubhunter [2.5K]3 years ago
6 0

Answer:

$80,000

Explanation:

Given:

Face value = $1,000,000

Contractual interest rate = 10%  for $1,200,000

Maturity period = 10 years

Now,

contractual interest =  10% × Face value

= 10% × $1,000,000

= $100,000

The annual bond amortization = ( $1,200,000 - $1,000,000 ) ÷ 10

= $20,000

The annual interest expense = Face value - annual bond amortization

=  $100,000 - $20,000

= $80,000

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Rent expense, land purchased, utility, salary expense, accounts payable, dividend, salaries, insurance---that is your expense for the year. Look at your income is Retained earning, accounts receivable, service revenue, common stock. Add all the expense and subtract from earning that will be your net income.

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Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000) quantity demanded (income =
Dovator [93]
12,000.+ 10,000 = 13,000 price is $12 and (ii) the price is $16.
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3 years ago
The qualities needed for effective leadership are the same as those needed to be an effective follower. Group of answer choices
enot [183]

It is true that the qualities needed for effective leadership are the same as those needed to be an effective follower.

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For a leader to be able to deliver effectively, he or she must have followers who have similar goals and must be effective as well.

Hence, it is true that the qualities needed for effective leadership are the same as those needed to be an effective follower.

Learn more about leadership here : brainly.com/question/17306630

3 0
2 years ago
Fleet, Inc. manufactured 700 units of Product A, a new product, in 20Xl. Product Xs variable and fixed manufacturing costs per u
Ulleksa [173]

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

The variable cost per unit is $6.00 while the fixed cost per unit is $2.00

Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

Total absorption cost = $8.00 × 100 = $800

Total cost under variable cost = Variable cost per unit × number of units in ending inventory

Total variable cost = $6.00 × 100 = $600

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3 0
2 years ago
Engineworks Co. provides the following fixed budget data for the year: Sales (20,000 units) ……………………………. ​ $600,000 Cost of sale
marysya [2.9K]

Answer:

Flexible Contribution Margin <u>147,000</u>

<u>Actual </u>Contribution Margin <u>139,000</u>

<u>Variance 8000 unfavorable</u>

Explanation:

Engine Works Company

Flexible Budget Performance Report

For the year using the Contribution Margin Format

                                      Actual                      Static                Flexible

                                    (21,000 units)       (20,000 units)     (21,000 units)

Sales                       …$651,000                 $600,00             630,000 Fav

V. Cost of goods sold: ​ ​ 512,000              $ 460,000           483,000 Unfav

Direct materials .$231,000 ​                     $200,000             210,000

Direct labor   168,000 ​                              160,000               168,000

Variable overhead  73,500 ​                       60,000               63,000

Variable Operating Expenses 39,500       40,000             42,000

<u>Contribution Margin    $139,000                140,000          147,000  Unfav</u>

Fixed Expenses

Fixed Operating Expenses 12,000 ​ 12000           12000

Fixed overhead 77,500           80,000                  84,000

<u>Income from operations  ​ $ 49,500    $ 48,000            $51,000  Fav</u>

<u></u>

<u>Working</u>

Flexible Calculations = (600,000/20,000)*21,000= $ 630,000

V. Cost of goods sold= ($ 460,000 /20,000)*21,000= 483,000

Direct materials .   =  $200,000 /20,000)*21,000=   210,000

Direct labor =    160,000/20,000)*21,000=    168,000

Variable overhead  =  60,000 /20,000)*21,000=    63,000

Variable Operating Expenses =  40,000 /20,000)*21,000= 42,000

All calculations are carried out in the same way. Dividing the amount in the given budget with the number of units and multiplying it with actual number of units.

Flexible Contribution Margin 147,000 and Actual Contribution Margin 139,000 which shows a Variance  of 8000  which is unfavorable.

4 0
2 years ago
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