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wlad13 [49]
3 years ago
11

Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability poli

cy was $36,000 for 18 months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021?
Business
1 answer:
Cerrena [4.2K]3 years ago
6 0

Answer:

The balance in Eve's prepaid insurance account as of December 2021 is $18000 as shown below.

Explanation:

The balance of prepaid insurance would be the balance left after 12 months expense has taken from both amounts

Liability policy $36000*6/18=$12000

Crop damage policy $12000*12/24=$6000

Balance of prepaid insurance           $18,000

The balance of $18000 would be left in the prepaid insurance account,whereas the balance damage crop policy account would be enough for the coming year, there is a need for 6 months insurance policy payment in respect of liability policy in the year 2022

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Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at
Katena32 [7]

Answer:

b. 1,2,3,4

Explanation:

Lets first understand what relevant cost is? Relevant cost is any cost that influences the decision of a decision maker. Therefore, the first four items are relevant in the decision of whether to sell the X-547 or to further process it.

Explanation for each item is as follows:

1- Selling price of X-547:

The selling price is relevant because it will help to determine the revenue generated from selling X-547 at the split off point and which could also be used for comparative purposes, if suppose the decision of further processing is chosen.

2- Variable cost of processing X-547 into Xylene:

The variable cost of processing X-547 is indeed relevant too, because at this stage management is not in a position to take a decision until they explore the possibilities coming out of processing X-547, therefore, in order to come to a decision making position the management will need to know the variable cost of processing X-547, making it relevant in the decision.

3- The avoidable fixed costs of processing X-547 into Xylene:

There is sometimes a fear (i.e fear of increase in step-fixed costs as a result of processing a product or fear of loss of control over costs) felt by the management when trying to process certain products for further development therefore those fixed costs which can be avoided during processing X-547 can also influence (i.e encourage) the decision of further processing X-547, making it relevant.

4- The selling price of Xylene:

The last but not the least, the selling price of Xylene. If the management finds that if X-547 is further processed into Xylene and it sells at a highly favorable/lucrative price, creating a huge margin for them then definitely they would be encouraged to taking the decision of further processing it.

5 0
3 years ago
Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di
I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0
3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
Veseljchak [2.6K]

Answer:

Bond price=$888.35

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>

<em>Value of Bond = PV of interest + PV of RV</em>

The value of bond for Local School District can be worked out as follows:

Step 1

PV of interest payments

PV = A × (1+r)^(-n)/r

A-annul interest payment:

= 7.5% × 1,000× = 75

r-Annual yield = 8.6%

n-Maturity period = 25  

PV of interest payment:

=75× (1- (1+0.086)^(-25)/0.086)

= 761.22

Step 2

<em>PV of Redemption Value</em>

= 1000 × (1.017)^(-25)

= $127.131

Step 3

<em>Price of bond</em>

=761.222 + 127.13

=$888.35

6 0
3 years ago
In one or more complete sentences, explain the details and requirements to obtain a driver license.
ycow [4]
To obtain a drivers license you must have a permit first.
-You must drive daily and "do not" get stopped by the cops while you have your permit or you wont get your license. 
-While having your permit you must have a passenger 18 or older by your side at all times while driving with a permit.
-You must read the book of license. (DMV Drivers License Booklet)
-If you want more information about how to get your license, i suggest you read the DMV booklet.
Hope this answer helped!:)

6 0
3 years ago
What would you identify as key milestones
kicyunya [14]

Answer:

A milestone is a marker in a project that signifies a change or stage in development. Milestones are powerful components in project management because they show key events and map forward movement in your project plan. Milestones act as signposts through the course of your project, helping ensure you stay on track.

Explanation:

Hope this helps

-A Helping Friend (mark brainliest pls)

6 0
3 years ago
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