Accoints payable ledger contains all of the balance sheet and income tstatmeent accounts true or false

Data-driven decision making is a process of

maxonik [38]

Planning, collecting, analyzing, and using data to improve your work. l

6 0

3 years ago

f the government imposes a binding price ceiling in a market, then the producer surplus in that market will increase.

Anit [1.1K]

Answer: This statement is FALSE

Explanation:

Price Ceiling is the maximum price fixed by government , usually less than equilibrium price to make necessity goods affordable to max people.

Producer Surplus is the difference between prevailing price & minimum price needed to induce producers to supply . Diagramaticaly / Graphicaly , it is the vertical difference between supply curve & price level

Implying Ceiling Imposition , the price gets reduced . Assuming unchanged Supply curve , the difference between price & supply curve reduces .

Hence , Producer Surplus falls

6 0

3 years ago

On January 1, 2021, Bishop Company issued 6% bonds dated January 1, 2021, with a face amount of $33 million. The bonds mature in

Allisa [31]

Answer:

a. Determine the price of the bonds at January 1, 2021.

market price:

PV of face value = $33,000,000 / 1.04²⁰ = $15,060,769

PV of coupon payments = $990,000 x 13.590 (PV annuity factor, 4%, 20 periods) = $13,454,100

market price = $28,514,869

b. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2021.

Dr Cash 28,514,869

Dr Discount on bonds payable 4,485,131

Cr Bonds payable 33,000,000

c. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method.

amortization of bond discount = ($28,514,869 x 4%) - $990,000 = $150,595

Dr Interest expense 1,140,595

Cr Cash 990,000

Cr Discount on bonds payable 150,595

d. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method.

amortization of bond discount = ($28,665,464 x 4%) - $990,000 = $156,619

Dr Interest expense 1,146,619

Cr Cash 990,000

Cr Discount on bonds payable 156,619

4 0

3 years ago

Ace Inc. is evaluating two mutually exclusive projects—Project A and Project B. The initial investment for each project is $50,0

Alinara [238K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The initial investment for each project is $50,000. Project A will generate cash inflows equal to $15,625 at the end of each of the next five years; Project B will generate only one cash inflow in the amount of $99,500 at the end of the fifth year (i.e., no cash flows are generated in the first four years). The required rate of return of Ace Inc. is 10 percent.

To determine which project to choose we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Project A:

Io= -50,000

Year 1to 5= 15,625

NPV= $9,231.04

Project B:

Io= 50,000

Year 5= 99,500

NPV= -50,000 + 99,500/1.10^5= 11,781.67

The highest NPV is the best option. Therefore, project B is the best.

3 0

3 years ago

A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, ____

AleksandrR [38]

Answer:

Fixed Cost and Variable cost

Explanation:

it is the Variable cost that consist of firm's expenditures made before production while fixed cost comes regardless of the level of production.

7 0

3 years ago