A collective bundle of shares is called?

Suppose Hale and sons purchases 800,000$ of 5% annual bonds of Mcphee Corporation at face value on January 1, 2014. These bonds

r-ruslan [8.4K]

Answer:

1) Journalize Hale and Sons transaction related to the bonds for 2014

The McPhee Corporation bonds are classified as long term assets (more than 1 year), and as held to maturity

January 1, 2014, investment in McPhee Corporation bonds

Dr Investment in McPhee Corporation bonds 800,000

Cr Cash 800,000

June 30, first coupon payment received from investment in McPhee Corporation bonds

Dr Cash 20,000

Cr Interest revenue 20,000

December 31, second coupon payment received from investment in McPhee Corporation bonds

Dr Cash 20,000

Cr Interest revenue 20,000

2) journalize the entry required on the McPhee bonds maturity date.

December 31, 2018, last coupon payment + principal received from investment in McPhee Corporation bonds

Dr Cash 820,000

Cr Investment in McPhee Corporation bonds 800,000

Cr Interest revenue 20,000

4 0

3 years ago

In its first year of operations, Sunland Company recognized $30,000 in service revenue, $8,100 of which was on account and still

Lorico [155]

Answer:

A. Cash basis $5,750

Accrual basis $11,400

B. Accrual basis

Explanation:

A. Calculation for the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting

Cash basis Accrual basis

Service revenue

$21,900 $30,000

Less Operating expenses

$12,880 $18,600

Less Insurance expenses $3,270 $0

Net income $5,750 $11,400

B. Based on the above calculation the basis of accounting that provides more useful information for decision-makers is ACCRUAL BASIS OF ACCOUNTING.

4 0

3 years ago

A paint store owner has a home garage sale. An individual purchases a television at the sale. The individual is told the televis

Svet_ta [14]

Answer:No, the buyer will not prevail in the breach of warranty claim.

Explanation:

There was no express warranty assurance in the contract.

It can also be implied that the buyer knew there is the possibility of qualities issues with the Television since he was informed of it's age and he did not raise a query on the quality.

Consequently the buyer cannot sue for a breach of warranty.

5 0

4 years ago

The drivers that explain changes in costs as units produced change are called:

N76 [4]

Answer:

b. unit-level drivers

Explanation:

The drivers that explain changes in costs as units produced change are called unit-level drivers. Therefore the costs and the number of units produced are correlated. Such examples of this can be seen in many everyday situations such as direct labor hours, seeing as the more hours you work the more money you will recieve.

6 0

4 years ago

When you receive a vertical promotion, you are more likely to _______ than when you receive a horizontal promotion.

zepelin [54]

The answer is C hope it helps

7 0

3 years ago

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