Productivity (output per worker hour of a bicycle manufacturing plant with 600 employees

On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and

Annette [7]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $600,000

To Bonds Payable $600,000

(Being Bonds issued is recorded)

Here we debited the cash as increased the assets and we credited the bonds payable as it also increased the liabilities

2. Interest Expense Dr, $21,000 ($600000 × 7% × 6 ÷ 12)

To Cash $21,000

(Being first semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as it decreased the assets

3. Interest Expense Dr, $21,000 ($600,000 × 7% × 6 ÷ 12)

To Cash $21,000

(Being second semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as it decreased the assets

4 0

3 years ago

What is your long term career goal?

alekssr [168]

To own a electrical business

4 0

3 years ago

Company J acquired all of the outstanding common stock of Company K in exchange for cash. The consideration transferred exceeds

slamgirl [31]

<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.

<u>Explanation:</u>

Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.

Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.

4 0

3 years ago

Bramble Corp. purchased a machine for $65600 on July 1, 2020. The company intends to depreciate it over 8 years using the double

KonstantinChe [14]

Answer:

$16,400

Explanation:

Depreciation for 2020 is calculated as;

= (Cost - Nill value) × 50% × 6/12[July to December)

Given that ;

Cost = $65,600

Depreciation = ($65,600 - 0) × 0.5 × 6/12

Depreciation = $16,400

Therefore, depreciation for 2020 is $16,400.

4 0

3 years ago

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years. Target average profit margin for Simon

Luda [366]

Answer:

Allowable unit cost of a hydraulic valve using the target costing model = 52.4

Explanation:

Given that:

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years.

Target average profit margin for Simon 20.00%

The company does not expect the manufacturing cost to vary over the next 4 years

Estimated sales volume and the unit selling price of the valve for the next 4 years is given below:

Year Sales volume (units) Unit selling price

Year 1 40,000 $80.00

Year 2 50,000 $75.00

Year 3 35,000 $50.00

Year 4 25,000 $45.00

The objective is to determine the allowable unit cost of a hydraulic valve using the target costing model.

The Cost for each unit selling price can be calculated as:

= unit selling price - (Target average profit margin × unit selling price)

For Year 1

= $80.00- (0.2 × $80.00)

= $80.00 - $16.00

= $64.00

For Year 2

= $75.00 - ( 0.2 × $75.00)

= $75.00 - ( $15.00)

= $60.00

Year 3

= $50.00 - (0.2× $50.00)

= $50.00 - $10.00

= $40.00

Year 4

= $45.00 - (0.2 × $45.00)

=$45.00 - $9.00

= $36.00

Year Sales volume Unit Cost Cost per Unit

(units) selling price

Year 1 40,000 $80.00 $64.00 $2560000

Year 2 50,000 $75.00 $60.00 $3000000

Year 3 35,000 $50.00 $40.00 $1400000

Year 4 25,000 $45.00 $36.00 $900000

Total: 150000 $7860000

Allowable unit cost = Total cost/Total number of unit cost

Allowable unit cost = $7860000/150000

Allowable unit cost = 52.4

6 0

3 years ago