Answer:
$17,900
Explanation:
= ($153,000-$5,900-(3070*45))*2
= ($153,000 - $5,900 - $138,150)*2
= ($8,950)*2
= $17,900 - increase in paid-in capital in excess of par
NB - When a company issues bonds, it incurs a long-term liability on which periodic interest payments must be made, usually twice a year.
Answer:
Variable overhead efficiency variance $1,680 Favorable
Explanation:
<em>Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected. </em>
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
5000 units should have taken (5000×0.5 hours) 2,500
but did take <u>2,080</u>
Labour hours variance 420 favorable
Standard variable overhead rate <u>×$ 4.00</u> per hour
Variable overhead efficiency variance <u>$1,680 Favorable</u>
Answer:
1.Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2.Interest expense 28,800
Principal Reduction 61,364
Explanation:
MM Co.
1 . Journal entry
Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to
Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.
Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2. Calculation of the amount goes toward interest expense and Principal reduction
Interest expense 28,800
(360,000*8%)
Principal Reduction 61,364
(90,164-28,800)
Answer: $137,000
Explanation:
Contribution margin = Sales - Variable expenses
Sales (30 * 20,000) $600,000
Cost of Goods sold(24,000 + 340,000 - 19,000) ($345,000)
Variable selling expense (3.2 * 20,000) ($64,000)
Variable administrative expense (2.7 * 20,000) ($54,000)
Contribution margin $137,000
Cost of goods sold = Beginning merchandise + Purchases - Ending merchandise
