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Ganezh [65]
3 years ago
10

On January 1, Year 1, Willette Company sold $240,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and Decem

ber 31. The bonds were issued for $180,181, priced to yield 10%. What is the amount of effective interest expense that should be recorded for the six months ended June 30, Year 1
Business
1 answer:
konstantin123 [22]3 years ago
4 0

Answer: $9,009

Explanation:

To find the Effective Interest Rate, you should convert the stated interest rate into a semi-annual interest rate as that is when interest is payable.

Effective interest Rate = 10% Per annum

= 10/2

= 5%

5% is to be paid Semi-annaully.

Interest Expenses for the first 6 months is therefore,

= Issue Price * effective interest rate

= 180,181 * 5%

= $9,009

$9,009 is the amount of effective interest expense that should be recorded for the six months ended June 30, Year 1.

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Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..
notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

<u>With new product:</u>

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0
3 years ago
The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31: Estimated factory ove
lions [1.4K]

Answer:

Estimated manufacturing overhead rate= $32 per labor hour

Explanation:

Giving the following information:

The estimated factory overhead costs $ 2,496,000. Estimated labor hours 78,000.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 2496000/78000= $32 per labor hour

5 0
3 years ago
Rubina is the director of procurement at Baines Corporation. She plans to send a memo to the employees in her department outlini
Romashka-Z-Leto [24]

Answer: describe the bottom line of the policy changes at the beginning of the memo

Explanation:

The options to the question are:

a. describe the bottom line of the policy changes at the beginning of the memo.

b. include an apology at the end of the memo stating the inconveniences that could be caused due to the new policy.

c. present the rationale for the new policies at the memo's beginning.

d. highlight controversial issues, which could arise after the new policies have been implemented, in the memo.

From the question, we are informed that Rubina is the director of procurement at Baines Corporation and that she plans to send a memo to the employees in her department outlining some changes in the company's personnel policies as she believes that most of the employees will view the changes favorably.

Since she is of the opinion that most of the employees will view the changes favorably, she can describe the bottom line of the policy changes at the beginning of the memo. This is because she believes the memo will get a favourable audience. In a situation whereby she is not sure if it will be favourable, in the begining of the memo, she may have to offer and apology and tell them the rationale behind the memo before going into further details.

8 0
3 years ago
19) Which of the following is a fom of business organization that offers limited liability to its owners
Lisa [10]

Answer:

B. Corporation

Explanation:

Corporation is a complex structure of business ownership recognized as separate and distinct from its owners.  A corporation is subdivided into small units called stocks, equity, or shares. Each share or stock represents a small part of the company. Owning a share of a corporation is equivalent to owning a small portion of the corporation. A corporation issues shares to investors when it intends to raise additional capital. The shares of corporations are traded at the securities exchange markets.

Shareholders is the title given to owners of a corporation's shares. one feature of a corporation is that it offers its shareholders limited liability to the company's debts. Should the corporation fail in meeting its obligations, shareholders' personal assets cannot be used to settle the debts.

6 0
2 years ago
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity t
mixer [17]

Answer:

<em>E) Satisfaction Guarantees</em>

Explanation:

<em>Satisfaction Guarantees</em> also called <em>Money-Back Guarantee</em> is  basically a straightforward assurance <em>that a refund will  be produced if a purchaser is not satisfied with a product or service</em>.

This term is widely used in advertisements or commercials advertising a product or service and has been used for a long time as a marketing strategy.

8 0
3 years ago
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