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3 years ago

Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.

Business

1 answer:

seropon [69]3 years ago

7 0

Answer:

Skysong, Inc.

Balance Sheet (Partial)

As on December 31, 2017.

Liabilities

Long Term Liabilities

Bonds payable (due 2021) $920,000

Notes payable (due 2019) $84,000

Discount on bonds payable (<u>$23,000)</u>

Total Long Term Liabilities <u>$981,000</u>

Explanation:

Long term liabilities are all those liabilities that will be paid after one year's time. As Bond Payable is due in 2021 and needs to be paid after 4 years it is classified as long term liabilities. Note Payable is also due in 2019 and needs to be paid after 2 years it is also classified as long term liabilities.

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Deltona Motors just issued 230,000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1,000, and have a yie

Sergeeva-Olga [200]

Answer:

$81,959,737

Explanation:

Zero coupon bond is the bond which does not offer any interest payment. It is issued on deep discount price and Traded in the market on discounted price.

As per given data:

Numbers of Bonds = 230,000

Numbers of years to mature = n = 18 years

Face value = F = 230,000 x $1,000 = $230,000,000

YTM = 5.9%

Value of zero coupon bond = Face value / ( 1 + YTM )^n

Value of zero coupon bond = $230,000,000 / ( 1 + 5.9% )^18

Value of zero coupon bond = $81,959,737

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3 years ago

Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stoc

Elenna [48]

Explanation:

The effects are as follows:

a. In the first option, there is No effect in any item of the financial statements

b. In the second option, there is No effect in any item of the financial statements

c. In the third option, there is No effect in any item of the financial statements

d. No impact on the assets but it increases the liabilities side and decreases the stockholder equity

The journal entry is shown below:

Retained earning A/c Dr XXXXX

To Dividend payable A/c XXXXX

(Being cash dividend declared)

When the dividend is declared, the dividend amount should be subtracted from the retained earning account.

And, since the dividend is declared that increases the balance of dividend

In addition, the dividend payable and the retained earning account have a credit balance. The increase in dividend payable account would have credit balance whereas the decrease in retained earning account has a debit balance.

e. Paying the cash dividend declared in (d)

The journal entry is shown below:

Dividend payable A/c XXXXX

To Cash A/c XXXXX

(Being the cash dividend is paid)

Since it reduces the liabilities and the asset side also but it does not have any impact on the stockholder equity

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3 years ago

Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms

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Answer:

Answer for the question:

Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation. Cite one example in each category; provide a sentence or two in support of each choice. (Hint: A "99cents menu" is very easily copied and is not a good source of sustained advantage.)

is given in the attachment.

Explanation:

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3 years ago

If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following

PilotLPTM [1.2K]

Answer:

a. Is answered

b. The amount realized increases.

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As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.

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3 years ago

Assume the following is the Budget Equation for a consumer: 170 Tequila + 32 Vodka = 2,810 What would be the intercept of the bu

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Answer:

Explanation:

Let:

$y=Tequila\\x=Vodka$

So:

$170y+32x=2810$

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In order to find the intercept of the budget line on the Tequila axis, we need to evaluate the function for x=0, so:

$y=\frac{281}{17} -\frac{16}{85} (0)=\frac{281}{17} \approx16.53$

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3 years ago