If,at the current level of output, a firm's average cost is greater than its marginal cost, then:

On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb

Free_Kalibri [48]

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $340,000

Bonds payable $340,00

(Being the bond payable is issued for cash)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities

On Dec 31

Interest expense ($340,000 × 8%) $27,200

To Cash $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets

On Dec 31

Interest expense ($340,000 × 8%) $27,200

To Cash $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets

7 0

3 years ago

You will die when you poop in the bed

Gnom [1K]

Answer: No you don't that's just weird

Explanation:

3 0

3 years ago

Read 2 more answers

Please give a complete answer to all questions, citing the legal principle to support your answer.

Alex Ar [27]

1. In the criminal justice system, John can temporarily put Jack in custody pending the arrival of the police. Jack was not detained for a period longer than five minutes and not for a civil wrong.

Thus, in this lawsuit for the tort of unlawful imprisonment, Jack will lose because he committed a crime. He cannot apply a civil law to a criminal case.

2. Adriana is correct that her personal assets cannot be reached in this lawsuit brought by the shareholders of DEF, Inc. because SLA Accountants, LLP is a limited liability partnership and not just an ordinary partnership.

A limited liability partnership, like a limited liability company, offers members limited liability. However, the shareholders of DEF, Inc. may decide to sue Adriana personally.

3. Andrew is wrong because the car handed over by Sam was not a completed inter-vivos gift. The transfer was not absolute but conditional upon Sam not returning from the Middle East.

As a conditional transfer of gift, the vesting of the ownership interest created by the transfer depends on the fulfillment of a condition.

Thus, since the transfer condition did not materialize, Andrew should return the car to Sam in good faith.

Learn more about inter vivos gifts and limited liability partnerships here brainly.com/question/14767795 and brainly.com/question/1166757

5 0

2 years ago

A machine costing $180,000 was purchased May 1. The machine should be obsolete after four years and, therefore, no longer useful

Anvisha [2.4K]

Answer:

Straight line depreciation expense

Year 1 = $27,500

Year 2, 3 ,4 = $41,250

Double declining method

Year 1: $60,000

Year 2: $60,000

Year 3: $30,000

Year 4: $15,000

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

( $180,000 - $15,000) / 4 = $41,250

Depreciation expense every year would be 41250 expect in year 1 when the machine was used for only 8 months.

To determine the deprecation expense in the 1st year, determine the monthly deprecation expense.

41250 / 12 = 3,437.50

Depreciation for 1 st year = 3,437.50 x 8 = $27,500

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

2 / 4 = 0.5

Depreciation expense in year one = 0.5 x $180,000 = $90,000

The same procedure for determining depreciation expense in year 1 under straight line depreciation would also be used here.

90,000 / 12 = $7,500

$7,500 x 8 = $60,000

Book value at the beginning of year 2 = $180,000 - $60,000 = $120,000

Depreciation expense in year 2 = 0.5 x $120,000 = $60,000

Book value at the beginning of year 3 = $120,000 - $60,000 = $60,000

Depreciation expense in year 3 = 0.5 x $60,000 = $30,000

Book value at the beginning of year 4 =$60,000 - $30,000 = $30,000

Depreciation expense in year 4 = 0.5 x $30,000 = $15,000

I hope my answer helps you

3 0

3 years ago

Read 2 more answers

Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payme

mezya [45]

Answer: a. $120,000

b. $6,000

c. Yes

Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

= $60,000 * 2

= $120,000

b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

= 120,000 * 5%

= $6,000

By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.

c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.

As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

8 0

3 years ago