Answer:
a) Prepare the journal entry to record interest at the effective interest rate at December 31.
- Interest expense (10% × 1/2 × $380) = $19.0
-Cash (paid to bondholders) (9% × 1/2 × $400) = $18.0
- Discount on Bond Payable 19.0 - 18.0 = 1
Account Title Dr Cr
Interest expense 19
Discount on Bond Payable 1
Cash 18
What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2018, if it uses the direct method?
-Agee would report the cash inflow of $380 million from the sale of the bonds as a cash inflow from Financing Activities in its statement of cash flows. (selling bonds is a financing activity)
-The $18.0 million cash interest paid is cash outflow from Operating Activities because Interest is an Income Statement (Operating) item.
Answer: The company is using the <em><u>comparative approach </u></em>to <u><em>evaluate the individual performances and thus seeking to develop some ranking of the individuals within a work group to identify the best performer.</em></u>
<u><em>Comparative approach concern with ranking an worker/individual performance with respect to that of others individual. </em></u>
Answer:
b. Financing activities.
Explanation:In the financial activities section of the statement of cash flows, the operations related to the entry and exit of funds for activities that increase the liability or stockholders´equity, but that do not make the main activity of the company must be recorded. Such as: issuance of common stock for cash.
Answer:
A. the lower of cost or market
Explanation:
- Regardless of the inventory cost the flow assumption that that is used to show the invention of the balance sheets is stated in the lower order of the cost to the market and that the cost on an inventory item changes form the time it's acquired or sold.
<span>MRP stands for Material Requirements Planning and thus for the planning of the demand for necessary raw materials. If properly planned, the error rate decreases and productivity increases.</span>