______________ insurance covers damage to your vehicle caused by something other than a collision.

Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic inst

madam [21]

Answer:

The net benefit is -$26,000

Explanation:

Given the above information,

The total cost of manufacturing 12,000 circuit boards

= 12,000 × $34

= $408,000

Total purchase price

= 12,000 × $34

= $408,000

Fixed overhead cost applied

= 12,000 × $6

= $72,000

The rental income = $46,000

Outsourcing cost

= Total purchase price + Fixed overhead cost applied - Rental income

= $408,000 + $72,000 - $46,000

= $434,000

Therefore, Net benefit

= Total cost of manufacturing - Outsourcing cost

=$408,000 - $434,000

= -$26,000

8 0

3 years ago

Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio

Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025] + 1000 / (1+0.025)^8

Bond Price = $1000

5 0

3 years ago

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending D

alexdok [17]

Answer:

The year-end adjusting entries for the uncollectible accounts will be:

April 13:

Debit Allowance for doubtful accounts $6,530

Credit Accounts receivable $6,530

(To record write-off of accounts receivable - Dean Sheppard)

May 15:

Debit Cash $3,270

Credit Accounts receivable $3,270

(To record collection on account - Dan Pyle)

Debit Allowance for doubtful accounts $5,410

Credit Accounts receivable $5,410

(To record write-off of accounts receivable - Dan Pyle)

July 27:

Debit Accounts receivable $6,530

Credit Allowance for doubtful accounts $6,530

(To re-establish accounts receivable from Dean Sheppard)

Debit Cash $6,530

Credit Accounts receivable $6,530

(To record collection on account - Dean Sheppard)

December 31:

Debit Allowance for doubtful accounts $13,330

Credit Accounts receivable $13,330

(To record write-off of accounts receivable - Miscellaneous)

Explanation:

April 13: Shipway Company wrote-off account of Dean Sheppard, this means there would be a reduction in both allowance for doubtful accounts and accounts receivable.
The receipt on May 15 of $3,270 reduced the accounts receivable but increased cash. However, the write-off of $5,410 caused a reduction in both the allowance account and accounts receivable.
When there was a receipt of $6,530 on July 27, the accounts receivable would be reinstated and then adjusted for the cash receipt.
Lastly, the write-off of the uncollectible accounts from miscellaneous customers were added up to arrive at $13,330.

8 0

3 years ago

Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25 shares of DJ Industries

jasenka [17]

Answer:

stock warrant

Explanation:

Amy was given a stock warrant which gives her the right to purchase a specific number of stocks (25 stocks) at a specific price ($32) during a specific time period (12 months). Stock warrants are issued directly by the corporation to the stockholders. Stock warrants are also tradable, so Amy can choose to sell them to another investor.

7 0

3 years ago

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the fir

Gwar [14]

Answer:

$18.29

Explanation:

Material Conversion

Units transferred to

the next department 7.400 7.400

Ending WIP

Materials 50% 1.900 950

Conversion Cost 35% 1.900 665

Equivalents Units Production 8.350 8.065

Cost of beginning work in process inventory $ 10.600 $ 12.800

Costs added during the period $ 142.100 $ 359.500

TOTAL COST $ 152.700 $ 372.300

Equivalents Units Production 8.350 8.065

Cost per equivalent unit $18,29 $46,16

3 0

3 years ago