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kolbaska11 [484]
3 years ago
8

Dunphy Company issued $20,000 of 8.5%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and D

ecember 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30.
Business
1 answer:
Rashid [163]3 years ago
4 0

Answer:

(a)

January 1  Cash                      20000 Dr

                      Bonds Payable      20000 Cr

(b)

June 30    Interest expense    850 Dr

                          Cash                       850 Dr

Explanation:

a.

The bonds are issued at par value thus full cash equal to the par value of these bonds will be received on the issuance date.

b.

The ineterst is paid at 8.5% annually. The annual interest oayment equals 20000 * 0.085 = 1700

As this is paid semiannually in equal installments, the semi annual payment for interest on June 30 will be 1700 / 2 = $850

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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct
Ghella [55]

Answer:

$0 cost or savings per unit

Explanation:

Cost to Buy

Purchase Price       $31.40

and,

Costs to Make

Direct materials        $9.10

Direct labor              $13.10

Variable overhead   $2.10

Fixed Overheads     $7.10

Total                        $31.40

therefore

The net incremental cost or savings of buying the component is $0 cost or savings per unit

5 0
3 years ago
What is the formula for measuring price elasticity of demand? percentage change in price / percentage change in quantity demande
Nostrana [21]
Market value increase demand of sales
8 0
3 years ago
Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over
avanturin [10]

Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

Dividends = 35500 - 15000

Dividends = $20500

4 0
3 years ago
Sunland Company reported the following information for the current year: Sales (64000 units) $1280000, direct materials and dire
tatuchka [14]

Answer:

45%

Explanation:

Given the following :

Sales unit = 64000

Sales revenue = $1,280,000

Direct materials and directly labor = $640,000

Other variable cost = $64,000

Fixed cost = $360,000

Contribution margin ratio:

(Sales revenue - variable expenses) / sales revenue

Total variable expenses = (Direct materials and directly labor + other variable expenses)

Total variable expenses = (640000 + 64000) = $704,000

Contribution margin ratio :

$(1,280,000 - 704,000) / $1,280,000

$576,000 / $1,280,000

= 0.45

0.45 * 100 = 45%

8 0
3 years ago
How do most companies pay the current liabilities incurred by day-to-day operations?.
elixir [45]

Current assets, or possessions used up within a year, are generally used to settle current liabilities.

<h3>Why do you use the term "current liabilities"?</h3>
  • Current liabilities are debts or commitments that fall due within a year or during the regular business cycle. Additionally, current obligations are paid off by using a current asset, either by generating a fresh current liability or by using cash.
  • In accounting, current liabilities are frequently interpreted as all debts owed by a company that must be paid in cash within the fiscal year or the operational cycle of that particular company, whichever is longer.
  • Current assets, or possessions used up within a year, are generally used to settle current liabilities. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current liabilities, along with any outstanding income taxes.  

To learn more about Current assets refer to:

brainly.com/question/13188114

#SPJ4

6 0
1 year ago
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