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Darya [45]
3 years ago
8

Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $45,500 f

or medical insurance and contribute an additional $10,000 to a retirement program.
1. Record the entry for these accrued (but unpaid) benefits on December 31.
2. Assuming $5,500 of the retirement benefits are not to be paid for five years, how should this amount be reported on the current balance sheet?
Business
1 answer:
lbvjy [14]3 years ago
3 0

Answer:

The Solution is given below in the

Explanation:

Requirement 1: Solution

Entries                                                    Debit         Credit

Employee Benefits Expense             $55,500

Medical insurance payable                                     $45,500

Retirement program                                                 $10,000

Requirement 2: Solution

As the retirement program money is paid after 5 years it should be classified as a non-current liability as per the International accounting standard(Presentation of financial statements).

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Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and De
solmaris [256]

Answer:

$1,568,498

Explanation:

First calculate the Amont of discount

Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855  

Now prepare the bond amortization

The Bond Amortization schedule is attached with this answer, please find it.

Now calculate the interest expense for 2017

Interest Expense 2017 = $784,165.80  + $784,332.43

Interest Expense 2017 = $1,568,498.23

Interest Expense 2017 = $1,568,498

3 0
2 years ago
A firm can produce two products with the cost function c(q1, q2) = 10 5q1 5q2 - 0. 2q1q2. the firm enjoys:____.
Llana [10]

The correct option for The firm enjoys economies of scope.

economies of scope exist if C(Q1, 0) + C(0, Q2) > C (Q1, Q2) (10 + 5Q1) + (10 + 5Q2) > 10 + 5Q1 + 5Q2 - 0.2Q12Q2.

Economies of scope is an economic theory stating that the average total cost of production decrease as a result of increasing the number of different goods produced. For example, a gas station that sells gasoline can sell soda, milk, baked goods, etc.

Economies of scope is a financial precept wherein a commercial enterprise's unit value to supply a product will decline because the form of its products will increase. In different words, the extra one of kind-but-comparable goods you produce, the lower the total cost to provide each one may be.

Your question is incomplete. Please read below for the missing content.

A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 - 0.2Q1Q2. The firm enjoys:

A. economies of scale in the two products separately.

B. economies of scope.

C. cost complementarity.

D. economies of scale in the two products separately and cost complementarity.

Learn more about Economies here brainly.com/question/17996535

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6 0
1 year ago
Halt company employee material handling employees who move materials between production divisions at a labor cost of $160,000 a
Ivenika [448]

Answer:

The $12,000 is the material handling cost should be assigned to products made in March.

Thus, the correct option is a. $12,000

Explanation:

For computing how much of the material handling cost should be assigned, first we have to calculate the per pound of material. The formula is shown below:

Per pound of material = Labor cost ÷ Number of pounds

                                    = $160,000 ÷ 800,000

                                    = $0.2 per pound of material

Now, multiply this per pound of material with moving pounds.

In mathematically,

Material Handling cost = Per unit of pound × Moving material

                                      = $0.2 × 60,000

                                      =$12,000

Hence, the $12,000 is the material handling cost should be assigned to products made in March.

Thus, the correct option is a. $12,000

4 0
3 years ago
A firm has a weighted average cost of capital of 11.68 percent and a cost of equity of 15.5 percent. The debt-equity ratio is 0.
asambeis [7]

The firms Cost of Debt is 9.62%.

Data and Calculations:

Weighted average cost of capital = 11.68%

Cost of equity = 15.5%

Debt-Equity Ratio = 0.65

Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity

= 11.68% - (15.5% (1 - 0.65)

= 11.68% - 5.425%

= 6.255%

Unweighted cost of debt = 6.255%/0.65

= 9.62%

Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.

Learn more: brainly.com/question/23044852

6 0
2 years ago
A sole proprietor has ______ personal liability for all business debts and obligations.
andreev551 [17]

A sole proprietor has unlimited personal liability for all business debts and obligations.

<h3>Who is a sole proprietor?</h3>

A sole proprietor is the owner of a sole proprietorship. A sole proprietorship is a type of business that is owned by one person.

A sole proprietor and the business are regarded as a single person under the law. Thus, a sole proprietor has an unlimited liability. An unlimited liability means that in event of default, both the e property of the business and the sole proprietor can be seized.

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4 0
1 year ago
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