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ser-zykov [4K]
3 years ago
11

On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bondfor $1,000. The bond pays interest on January

1. The bond is sold on July 1 for $1,200plus accrued interest. Interest has not been accrued since the last interest payment date.What is the entry to record the cash proceeds at the time the bond is sold?A. Cash...........................................................................1,200 Debt Investments .......................................................1,200B. Cash...........................................................................1,230 Debt Investments........................................................1,000 Gain on Sale of Debt Investments...............................200 Interest Revenue.........................................................30C. Cash............................................................................1,230 Debt Investments........................................................1,200 Interest Revenue.........................................................30D. Cash...........................................................................1,200 Debt Investments........................................................1,000 Gain on Sale of Debt Investments...............................200
Business
1 answer:
Arturiano [62]3 years ago
7 0

Answer:

Option (B) is correct.

Explanation:

Interest accrued for 6 months (January 1 to July 1):

= $1,000 × 6% × (6 ÷ 12)

= $30

This shall be credited to interest revenue as this is the income of the investor.

Sale value of investment:

= Bond selling price on July 1 + Interest accrued for 6 months

= $1,200 + $30

= $1,230

Gain on sale of investment:

= (Selling price - Purchase price) - Accrued interest

= ($1,230 - $1,000) - $30

= $200

Therefore, the Journal entry for this transaction is as follows:

Cash A/c                 Dr. $1,230

To debt investments                  $1,000

To Gain on sale of investment  $200

To Interest revenue                   $30

(To record the cash proceeds at the time the bond is sold)

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Tool Manufacturing has an expected EBIT of $ 39,000 in perpetuity and a tax rate of 33 percent. The firm has $ 80,000 in outstan
Thepotemich [5.8K]

Answer:

$208,530

Explanation:

The computation of value of levered firm is shown below:-

For computing the value of levered firm first we need to compute the Value of Unleavened firm

Value of unlevered firm = Earning before interest and tax × (1 - tax rate) ÷ Cost unlevered of Capital

= $39,000 × (1 - 33%) ÷ 15%

= $39,000 × 0.67 ÷ 15%

= $39,000 × 4.67

= $182,130

Now, the Value of levered firm = Value of unlevered firm + Outstanding debt × Tax rate

= $182,130  + $80,000 × 33%

= $182,130  + $26,400

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3 0
3 years ago
For each scenario, select the appropriate distribution density classification.1. Snack Time-Frito-Lay knows that hunger can stri
Karolina [17]

Answer:

1. Intensive Distribution

2. Selective Distribution

3. Intensive Distribution

4. Exclusive Distribution

5. Selective Distribution

6. Exclusive Distribution

Explanation:

Intensive Distribution is the one in which the product is available almost everywhere. That the product is easily available and the company ensures that it has a wide range of consumers.

Selective Distribution is the one in which the product is available only at some identified places, as for example the 5. point the apple phones are available usually at apple stores or some other specified mobile sellers, thus it is easily available yet at some limited shops only.

Exclusive Distribution is the one in which the product is available only at some exclusive shops, as in the 4th point and 6th point the luxury brand is not easily available and rather at only a few outlets of the company.

8 0
3 years ago
Recently, you accepted an internship position with the Tulawaka Zoo in Tennessee. You report to Sharon Molacavage, the Senior An
Furkat [3]

Answer:

The correct answer is letter "B": A moderately favorable situation in which Sharon’s relationships with her employees are strained, but where the employees are still doing highly structured tasks.

Explanation:

Austrian organizational psychologist Fred Fiedler (<em>1922-2017</em>) proposed in his Theory of Contingency that leaders only have one leadership style and that they cannot shape it according to the different situations they might be involved in. Instead, leaders must be located in a situation that matches their style.

Since Sharon's leadership style is <em>autocratic</em>, she is likely to manage herself better in adverse situations where the subordinates still follow her instructions.

3 0
3 years ago
Your store has average sales of $1,680 per day. Its shrinkage rate is 3%. What will its losses be for an entire year?
Lerok [7]

Answer:

$18,396

Explanation:

Average sales of the store per day = $1,680

Number of days in a year = 365

Total sales in a year = $1,680  x 365 = $6132,200

Shrinkage rate = 3%

Losses for an entire year = 0.03 x $6132,200 = $18,396

6 0
2 years ago
Instructions on how to creae and maintained planned maintenance system schedules using sked appendix
gogolik [260]
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  • The mark used to denote the end of an MR is the letter "X."
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  • Each 13-week column has black markings at the top to denote underway periods.
  • Rescheduled MRS is indicated by the O-with-arrow on the schedule mean.

What are the two scheduling techniques for preventive maintenance?

Fixed PMs and floating PMs are two different scheduling techniques for preventive maintenance. Tracking assets and determining when they require inspection, maintenance, calibration, or replacement can be done using either method.

What are the strategies of preventive maintenance scheduling?

These two PM scheduling techniques enable maintenance facilities to precisely identify maintenance triggers, properly maintain assets and effectively utilize maintenance resources. As a result, facilities experience less downtime and improve asset performance for longer.

Learn more about Preventive maintenance: brainly.com/question/14970029

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8 0
9 months ago
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