Answer:
Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.
Explanation:
yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%
if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%
we can use the approximate yield to maturity formula to find the market price of Chris's bond:
2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]
0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]
0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV
1.2 + 0.012MV = 8 - 0.05MV
0.062MV = 6.8
MV = 6.8 / 0.062 = 109.68
Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) <u>$139,650 </u>
Total product costs $497,350
Answer:
A liability account in the balance sheet.
Explanation:
When rent is collected in advance, the entries required to be recognized at the point of collection is as follows;
Debit Cash account
Credit Unearned/Deferred rental revenue
The cash account is an asset while the Unearned/Deferred rental revenue is a liability account.
As such, the collection of rent in advance is A liability account in the balance sheet.
Answer:
b. Tyco is liable because it authorized Jane to issue payroll checks.
Explanation:
There is the company responsibility to put the right person for the specific job. Here in the given situation Jane would not be a liable person for an vital position of the company. in the case when the fraud done by the employee so the firm would be liable as the company provide the authorization to the person who have to perform that job
Therefore, the option b is correct
