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NeX [460]
3 years ago
15

​Martinville, Inc. earned revenues of $ 17,000 and incurred expenses of $ 7,000. The company declared and paid cash dividends of

$ 2,500. What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings​ account?
Business
1 answer:
vladimir1956 [14]3 years ago
4 0

Answer:

$10,000

Explanation:

A company's income is either shared out as dividends or kept in as retained earnings. Therefore, the total of retained earnings and dividend paid out is the net income. This is the amount that will reflect in the income statement. In other words, income is calculated first before dividends or retained earnings are declared.

For ​Martinville, income will be calculated first before dividends are paid. Net income will be

=revenue - expenses

=$17,000 -$7,000

=$10,000

Balance in the Income Summary account was $10,000

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Sharmer Company issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the
nexus9112 [7]

Answer:

$957,349

Explanation:

the market price of the bonds = PV of face value + PV of coupon payments

PV of face value = $1,000,000 / (1.03)¹⁰ = $744,094

PV of coupon payments = $25,000 x 8.5302 (PV annuity factor, 3%, 10 periods) = $213,255

market price of the bonds = $744,094 + $213,255 = $957,349

journal entry to record the issuance of the bonds:

Dr Cash 957,349

Dr Discount on bonds payable 42,651

    Cr Bonds payable 1,000,000

5 0
3 years ago
Too Young, Inc., has a bond outstanding with a coupon rate of 6.9 percent and semiannual payments. The bond currently sells for
dlinn [17]

Answer:

7.43%

Explanation:

Where the debt is publicly traded , the cost of debt is equal to the yield to maturity

Approximate yield to maturity = [coupon +(face value - market price )/ number of years to maturity ]/ [{face value + market price]/2]*100

Face value - 2000

Market price - 1905

years to maturity= 30 years

Coupon =( 6.9%*2000)/ 2 = 69

Workings

[69 + (2000-1905)/30] / [(2000+1905]/2 *100)

([69+3.17]/[(3905]/2*100)

(72.17/1952) * 100 = 3.70

Annual yield = 3.7*2= 7.4%

7.4 % being an approximate yield value , the closest option is 7.43%

8 0
3 years ago
Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
mel-nik [20]

Answer:

Materials Cost Variance = 6500 favorable

Explanation:

Frogue Corporation

AP= Actual price per kilogram $2.50

AQ= Actual kilograms of material used 31,000

SP = Standard price per kilogram $2.80

SQ= Standard kilograms per completed unit 6 kilograms = 5000 units *6 kg= 30,000 kg

Material Price Variance =( AP -SP)(AQ)=

                                  =  ( $2.50- $2.80)31,000 = 9300 Favorable

It is favorable because the standard price is higher than the actual price.

Material Quantity  Variance  =( AQ -SQ)(AP)=  (31000- 30,000) 2.8

                                               = 1000*2.8=  2800 unfavorable

It is unfavorable because the standard quantity is lower than the actual quantity.

Materials Cost Variance =Material Price Variance+Material Quantity  Variance

                                      =9300 Favorable+2800 unfavorable=

Materials Cost Variance = 6500 favorable

When favorable and unfavorable are added the unfavorable is with negative sign so they are subtracted.

8 0
3 years ago
Direct material budget. Dawson Co. produces wine. The company expects to produce 2,535,000 two-liter bottles of Chablis in 2018.
mars1129 [50]

Answer:

2,558,000 bottles

Explanation:

The formula for computation of the purchase is:

Purchase in units = Usage + Desired ending material inventory units − Beginning inventory units.

In format that will be:

Beginning inventory   54,000

Plus: Purchases.........2,558,000

Less:ending inventory <u>77,000</u>

Required For Use......<u>2,535,000</u>

Hence the number of bottles to be purchased in 2018 is 2,558,000

8 0
3 years ago
When assessing the value of a business, is most important.
Mademuasel [1]
When it has a strong demand from consumers and slightly more supply then it's demand. And of course, if the company is more famous, provides good quality service, and has little down peak of it's business.



I hope it helped you!
7 0
3 years ago
Read 2 more answers
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