<span>Present
value is the current value of a future sum of money. Present value of money is
used to compute the time value of money. It is also known as ‘present discounted
value’ or ‘discounted value.’ It is the worth of money now to be paid in series
of payments at a certain interest rate to arrive at the future value.</span>
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is <u>higher than the market rate of interest.</u>
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
Answer and Explanation:
The computation is shown below:
1. Overhead rates
For Molding Deptt
= Total Estimated overhead ÷ Total Machine hours
= $400,000 ÷ 5,000
= $80 per machine hour
For Polishing Deptt
= Total Estimated overhead ÷ Total Labor hours
= $80,000 ÷ 20,000
= $4 per machine hour
2. Overheads assigned to Form A is
= (80 × 3500) + (4 × 5000)
= $300,000
Overheads assigned to Form B is
= (80 × 1500) + (4 × 15000)
= $180,000
Now
Overhead cost per unit
Form A = $300,000 ÷ 30,000 = $10 per unit
Form B = $180,000 ÷ 50,000 = $3.6 per unit
Answer:
Debit Bad Debt Expense; Credit Accounts Receivable
Explanation:
Bad debts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense.
When a cash payment is received from the debtor, cash is increased and the accounts receivable is decreased. When recording the transaction, cash is debited, and accounts receivable are credited.
The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.
