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vampirchik [111]
3 years ago
5

Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $1,800,000 par value, mature in four years, and pay

10% interest semiannually on June 30 and December 31.
1. Record the entry for the issuance of bonds for cash on January 1.
2. Record the entry for the first semiannual interest payment and the second semiannual interest payment.
Business
1 answer:
sukhopar [10]3 years ago
4 0

Answer:

The journal entries are as follows:

(i) On January 1,

Cash A/c Dr. $1,800,000

      To Bonds payable A/c         $1,800,000

(To record the issuance of bonds for cash)

(ii) On June 30th,

Interest expense A/c Dr. $90,000

          To cash A/c                          $90,000

(To record the semiannual interest payment)

(iii) On December 31st,

Interest expense A/c Dr. $90,000

          To cash A/c                          $90,000

(To record the semiannual interest payment)

Workings:

Interest expense:

= $1,800,000 × 10% × (6/12)

= $1,800,000 × 0.1 × 0.5

= $90,000

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AP MICROECONOMICS 1. GW Company produces and sells hats in a perfectly competitive market at a price of $2 per hat. Assume that
slavikrds [6]

Answer:

With the information in the question, we can make the following table:

Number of        Output of     Marginal  Marginal  Marginal

workers/day     hats/day       Product   Revenue  Cost

0                        0                    0              $0             $0

1                         10                   10            $20           $15

2                        26                  16            $32           $15

3                        36                  10            $20           $15

4                        44                  8              $16            $15

5                        49                  5             $10            $15

6                        52                  3             $6             $15

(a) After which worker do diminishing marginal returns begin?

As it can be seen in the table, after the third worker is hired, the diminishing marginal returns begin, because while the marginal product of the second worker is 16 hats, the marginal product of the third worker is 10 hats.

(b) Calculate the marginal physical product of the fifth worker.

The marginal product of the fifth worker is 5 hats.

(c) Calculate the marginal revenue product of the third worker.

The marginal revenue of the third worker is $20.

(d) How many workers will GW hire to maximize profit?

It should hire four workers. By the fourth worker, the marignal revenue is $16, while the marginal cost of hiring the additional fourth worker is $15. In a perfectly competitive market, the profit maximization point is obtained where marginal revenue = marginal cost, which is almost the case here.

(e) if GW Company has fixed costs equal to $20, what will be the company's short-run economic profits from hiring two workers?

If two workers are hired, the total revenue is $52. If the company has fixed costs of $20, and hires two workers costing each $15, the total costs are $50, therefore, in the short-run, the profit is $2.

(1) If the price of hats increases, what will happen to the number of workers hired in the short run?

The number of workers hired will increase because a higher price for hats means a higher marginal revenue for each worker.

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What are the four major categories of​ expenditure?
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Answer:

3.

DR Selling and Administrative Salaries               $240,000

      Manufacturing Overhead                                $150,000

      Work in Process                                                $600,000

CR Wages Payable                                                                      $990,000

4.

Manufacturing Overhead Applied

= 41,000 hours * 16.25

= $666,250

5. Total Manufacturing cost to be added = Raw Materials + Direct Labor + Manufacturing Overhead

= 480,000 + 600,000 + 666,250

= $1,746,250

6.

DR Finished Goods                                             $1,680,000

CR Work in Process                                                                $1,680,000

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Ending Balance = Beginning balance + Raw materials + Direct labor + Manufacturing Overhead - Cost transferred to Finished goods

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= $84,250

9. Predetermined overhead cost - Actual cost = 666,250 - 650,000 = $16,250.

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12. Finished goods = Beginning balance + Cost transferred from WIP - Cost of goods sold

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13.

Adjusted Cost of Goods sold = Cost of goods sold - Overapplied

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= $1,673,750

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= $1,126,350

15. Net Operating Income

= Gross Margin - Selling and Administrative salaries - Selling and Administrative expenses

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= $519,250

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