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Marysya12 [62]
3 years ago
10

Sugar City issued $2 million of bonds to fund the construction of a new city office building. The bonds have a stated rate of in

terest of 5% and were sold at 101. Which of the following entries should be made in the Capital Projects Fund to record this event?
A) Debit Cash $2.02 million; Credit Bonds Payable $2 million and Premium on bonds payable $.02 million
B) Debit Cash $2.02 million; Credit Bonds payable $2 million and Other financing sources $.02 million.
C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million.
D) Debit Cash $2.02 million; Credit Other financing sources $2 million and Revenue $.02 million.
Business
1 answer:
love history [14]3 years ago
3 0

Answer:

C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million

Explanation:

<u>A private firm will reocrd as follow:</u>

As the bonds are sold at a higher price than their face value we recognize a premium which will be amortized over the life of the bond.

<u><em>But in this case, we are doing a public accounting thus,</em></u> we must record the cash received and credit other financing sources for the whole amount funded.

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Under what conditions would you recommend using each of these funding methods to pay for information systems expenses: allocatio
Arada [10]

Answer:

The conditions under which each funding method for paying for IT system expenses would be recommended are:

Allocation method is preferred to other methods when actual usage cannot be captured but, some other cost drivers can be used as the allocation bases.

Chargeback method works better than others when actual usage by each unit can be accurately captured.

Explanation:

The Allocation Funding Method charges IT costs to individuals, departments, or business units based on revenues, number of employees, and other cost drivers and not based on usage. It is often used when actual usage cannot be recorded.

The chargeback method charges IT costs to individuals, departments, or business units based on their actual usage of the IT services.  With wide variation in IT usage, business units need to be charged their actual costs consumed.

The corporate budget method allocates IT cost based on a periodic predetermined rate. It is used where unit managers need to be given control over their budgets, enabling them to search for cost-saving technologies.

6 0
2 years ago
Which of the following data is used to determine credit scores?
mojhsa [17]

Answer:

Payment history, the number and type of credit accounts, your used vs. available credit and the length of your credit history are factors frequently used to calculate credit scores.

Explanation:

5 0
2 years ago
Read 2 more answers
The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly department, based on a budgeted volu
Igoryamba

Answer:

B. $10,000 Underapplied

Explanation:

Hourly rate = $250,000/100,000 = $2.5 per hour

Excess hours = 4000

Excess over head = 4000 * 2.5 = $10,000

There was a $10,000 underapplied overhead for that period

8 0
2 years ago
Oh, no! You contract Mononucleosis (Mono) and consequently miss two weeks of work without pay. You do not have any type of disab
Ilia_Sergeevich [38]

Answer:

Take a credit facility and do an insurance cover.

Explanation:

In order to meet your monthly financial commitments, you can seek for upfront credit facility through your organization if such provisions exist or ask for a salary loan which can be deducted from source (Salary).  

To prepare for similar unfortunate incidence in the future, it will be important to secure a life and health insurance cover either through your organization or on an individual basis.  

3 0
3 years ago
Neosho Corporation's Gauge Division manufactures and sells product no. 24, which is used in refrigeration systems. Per-unit vari
tester [92]

Answer:

(a) Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price.  (b) $30  (c) $40  (d) $35

Explanation:

Solution

Given that:

(A)  The Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price.

(B) If Gauge had excess capacity, The Division's Management set the transfer price would be $30. this is because transfer price be set as sum of Total Outlay cost and Opportunity Cost. So, ($23 + $7) + $0 = $30

(C) iF Gauge had no excess capacity, the transfer price would be $40.

The Calculation of Transfer price is as follows:

($23 + $7) = $30

Add :- ($40 - $23 -$7) = $10

Hence, the transfer Price = $40

(D) If Gauge was able to reduce the variable cost of internal transfers b $5 per unit then Transfer Price Would be $35.

Thus,

The calculation of transfer price is as follows:-

($23 + $7 - $5) = $25

Add :- ($40 - $23 -$7) = $10

The transfer Price = $35

7 0
3 years ago
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