Walmart company own which stores and brands

nuary 1, Campanella Inc. issued $4,000,000, 8% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interes

olasank [31]

Answer:

$188,400

Explanation:

Data provided in the question:

Value Bonds issued = $4,000,000

Amount for which bonds issued = $3,756,000

Thus,

Bond discount at the time of issue = $4,000,000 - $3,756,000

= $244,000

Interest = 8%

Interest payable = Value Bonds issued × Interest

= $4,000,000 × 8%

= $320,000

Market rate of interest = 10%

Therefore,

Interest expense = $3,756,000 × 10%

= $375,600

Thus,

Discount amortized = Interest expense - Interest payable

= $375,600 - $320,000

= $55,600

Therefore,

At the end of the first year, Campanella should report unamortized bond discount

= Bond discount at the time of issue - Discount amortized

= $244,000 - $55,600

= $188,400

3 0

2 years ago

Q 7.39: In a small-town retail store, the sales clerk is responsible for counting the cash in the cash register and comparing it

denis23 [38]

Answer: b.segregation of duties

Explanation:

Segregation of duties as an internal control ensures that there are multiple people doing activities that if left to one person can leave the company at the risk of fraudulent activity. It also helps to reduce the incidence of errors in reporting because more than one person will be cross-checking transactions.

There should be more segregation of duties in this small-town retail store. For instance, the sales clerk should not be responsible for both the counting and comparison to the cash register tape because they could have omitted sales from the machine and then simply taken the money from the cash when counting. A different person should count the cash to see if it tallies with the cash register tape.

5 0

2 years ago

At the end of the day, the cash register tape shows $1,300 in cash sales, but the count of cash in the register is $1,385. The p

kherson [118]

Answer:

C. Debit Cash $1, 385: credit sales $1, 300: credit Cash Over and Short $85.

Explanation:

Based on the information given The proper entry to account for this excess is:

Debit Cash $1,385

Credit Sales $1,300

Credit Cash Over and Short $85

($1,385-$1,300)

5 0

2 years ago

Altima, Inc. finished Job A40 on the last working day of the year. It utilized $ 360 of direct materials and $ 2 comma 030 of di

Anastasy [175]

Answer:

C. debit to Finished Goods Inventory $ 3 comma 202 and a credit to Work minus Process Inventory $ 3 comma 202

Explanation:

The journal entry is shown below:

Finished goods inventory A/c Dr $3,202

To Work in process inventory A/c $3,202

(Being the job is completed)

The computation is shown below:

= Direct material cost + Direct labor cost + manufacturing overhead cost

= $360 + $2,030 + $2,030 × 40%

= $360 + $2,030 + $812

= $3,202

3 0

2 years ago

On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J

mel-nik [20]

Answer:

The cash received from bond issuance is journalized as follows:

Dr Cash $285,600

Cr Bonds payable $280,000

Cr Premium on Bonds payable $5,600

The June 30 and 31 December Year 1 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

31 December

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

The June 30 and 31 December Year 2 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

31 December

Dr Interest expense(bal fig) $7,840

Dr Premium on bonds $560

Cr Cash $8400

Explanation:

The amount realized from the bond is calculated thus:

$280,000*102%=$285,600

Premium on bond=Bonds proceeds-par value

=$285,600-$280,000

=$5,600

Semi-annual amortization of bond premium=$5,600/5*6/12

=$560

Semi-annual interest payment=$280,000*6%*6/12

=$8,400

5 0

2 years ago