Which of the following financial institutions has a membership requirement?

Bose Company issued $600,000, 14 % bond on January 1

Tasya [4]

Answer:

1) If bonds are issued as 100 entry will be

Debit Credit

Cash 600,000

Bonds payable 600,000

2) If bonds are issued at 95

Debit Credit

Cash 570,000

Discount 30,000

Bonds payable 600,000

3) If bonds are issued at 105

Cash 630,000

Bonds payable 600,000

Premium 30,000

4)

Debit Credit

Interest payable 42,000

Cash 42,000

Explanation:

1) If the bonds are issued at 100 then the company will receive the same amount of cash as the face value so they will receive 600,000 cash and will owe the bond buyers 600,000 so they will debit 600,000 cash and credit 600,000 bonds payable.

2) If bonds are issued at 95 then the company will receive cash 95% of 600,000 which is 570,000 so they will debit 570,000 cash, 30,000 will debited as discount and 600,000 bonds payable.

3) If bonds are issued at 105 then the company will receive cash 105% of 600,000 which is 630,000 so they will debit 630,000 cash and will credit 600,000 bonds payable and 30,000 as premium.

4) The bonds are issued on January 1 and there is a journal entry of interest payment at July 1 so we assume that the bond has semi annual payments.

14% of 600,000 is 84,000 and we will divide it by 2 to find the semi annual payment which will be 42,000, so we will debit interest payable by 42,000 and credit cash by 42,000.

6 0

3 years ago

Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX E

Nuetrik [128]

Solution :

1. Allocation on the basis of $\text{Direct labor hours}$

LX EX

Direct Material 125000 90000

Direct $\text{labor}$ cost 90000 60000

Manufacturing overhead $81000$ $121500$

(202500/5000 x 2000) (202500/5000 x 3000)

Total cost 296000 271500

Units produced 50 30

Cost per unit 5920 9050

2. Allocation on the basis of $\text{Direct labor costs}$ :

LX EX

Direct Material 125000 90000

Direct labor cost 90000 60000

Manufacturing overhead 121500 81000

(202500/150000 x 90000) (202500/150000 x 60000)

Total cost 336500 231000

Units produced 50 30

Cost per unit 6730 7700

3. Allocation on the basis of $\text{machine hours}$

LX EX

Direct Material 125000 90000

Direct labor cost 90000 60000

Manufacturing overhead 112500 90000

(202500/2700 x 1500) (202500/2700 x 1200)

Total cost 327500 240000

Units produced 50 30

Cost per unit 6550 8000

5 0

2 years ago

What is not a potential risk of purchasing a used car?a) used cars can require repairs soonerb) warranties can be very limitedc)

Oksi-84 [34.3K]

used cars can require repairs sooner warranties can be very limited used cars can have lower initial cost unexpected issues may arise

hope this helps <3

4 0

3 years ago

Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indic

mariarad [96]

Answer:

1. <u>Operating and Cash outflow:</u> Payment of employee salaries.

2. Investing and Cash inflow: Sale of land for cash. Investing

3. Operating and Cash outflow: Purchase of rent in advance.

4. Operating and Cash inflow: Collection of an account receivable.

5. Financing and Cash inflow: Issuance of common stock.

6. Operating and Cash outflow: Purchase of inventory

7. Investing and Cash inflow: Collection of notes receivable.

8. Operating and Cash outflow: Payment of income taxes.

9. Noncash activity, so no effect: Sale of equipment for a note receivable.

10. Financing and Cash inflow: Issuance of bonds.

11. Investing and Cash outflow: Loan to another firm.

12. Financing and Cash outflow: Payment of a long-term note payable.

13. Financing and Cash outflow: Purchase of treasury stock.

14. Operating and Cash outflow: Payment of an account payable.

15. Investing and Cash inflow: Sale of equipment for cash.

Explanation:

A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.

1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.

2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.

3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.

8 0

2 years ago

You work in the marketing department of a household cleaning products manufacturer. When the CEO found that online purchase of c

Ivenika [448]

Answer:

Volume objectives

Explanation:

Volume objectives are the bases pricing decisions on market share, the percentage of a market controlled by a certain company or product.

Volume Objectives refer to the objectives based on the part of a market controlled by a certain product. This helps to calculate the minimum sales of a product at a certain price level to cover all the production costs.

In the given question, the team should use volume objectives for its action plan.

3 0

2 years ago