Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
Answer:
True
Explanation:
The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."
Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.
It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.
Answer:
U.S. Treasury bonds.
Explanation:
Repurchase agreements can take place between a variety of parties. The Federal Reserve enters into repurchase agreements to regulate the money supply and bank reserves.
This are open market operation and the Treasury bonds are the collateral
The answer to this is D. Hope this helped :)
Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
