What were two products they were buying on credit during the 1920's?

On January 1, 2019, Broker Corp. issued $3,700,000 par value 10%, 12-year bonds which pay interest each December 31. If the mark

victus00 [196]

Answer:

Price = $3,241,718

Explanation:

To calculate issue price of the bonds we first calculate NPV of the bonds after 12 years and Interest payments of the bonds for 12 years.

NPV can be calculated by : Bond value * NPV factor after 12 years

so, Bond Value after 12 years = $3700 000 * 0.2567 = $949,790

We take the market interest rate for this.

Now we calculate Yearly interest payment = 3700000 * 10% = $370,000

we discount it back using annuity for 12 years so, 370000 * 6.1944 = $2,291,000. This is the total interest payments for 12 years in NPV terms.

To calculate issue price simply add Interest payments and Bond NPV value so,

Price = 2291000 + 949790 = $3,241,718

Hope that helps.

8 0

3 years ago

1. Barry Cain invested $38,000 cash to start an appliance repair business. 2. Hired an employee to be paid $500 per week, starti

attashe74 [19]

Answer:

No. Account Titles & Explanation Debit Credit

1.

Cash $38,000

Barry Capital Account $38,000

2.

No Entry Requires as Employee are only Hired there id no financial transaction involved in hiring the employees only.

3.

Prepaid Rent $10,800

Cash $10,800

4.

Wages Expense $500

Cash $500

5.

Cash $2,900

Revenue $2,900

Explanation:

1. Cash paid is the capital contribution in the business so cash account will be debited and capital account will be credit as per their nature.

2. Hired an employee does not need any transaction as there is no financial involvement in just hiring an employee.

3. Prepaid expense is actually an asset for us as we paid expenses in advance which is not incurred yet. It will be recognized as expense with passage of time.

4. Payment to worker is an expenses against a credit to cash as wage is paid in cash.

5. Revenue earned should be recorded and also received so cash will be debited for the receipt from sales and revenue shold be debited due to its nature of account.

8 0

3 years ago

Henderson is a local automobile salesperson. He earns 6% commission on all of his automobile sales. Last month, he earned $9,900

Murrr4er [49]

The answer for total sales is $165,000

3 0

3 years ago

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June 1 Purchased raw m

Gelneren [198K]

Answer:

raw materials 20000 debit

accounts payable 20000

WIP 8000 debit

factory overhead 1000 debit

raw materials 9000 credit

WIP 84000 debit

factory overhead 24000 debit

wages payables 108000 credit

factory overhead 10100 debit

cash 10100 credit

WIP 49000 debit

factory overhead 49000 credit

Finished Goods 18000 debit

WIP inventory 18000 credit

COGS 15000 debit

Finished Goods 15000 credit

Explanation:

The indirect materials and labor will be considered actual factory overhead thus debited into that account

same procedures applies to the repair and utilities paid in cash we have to posted into factory overehad

from the cost sheet we determiante 7,000 labor hours we apply the $7 overhead rate per our to get the amount of applied overhead

The finished goods will increase while the WIP inventory decrease by the ammount transferred out

The COGS is an expense which decreases our finished goods inventory as we sale them and are no longer in our possesion.

5 0

3 years ago

30 points please help!

WINSTONCH [101]

Answer:

B.

Explanation:

Social Security is Payroll Tax.

3 0

3 years ago