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3 years ago

The following bond investment transactions were completed during 2016 by Starks Company:

Business

1 answer:

saw5 [17]3 years ago

6 0

Answer:

31st Jan 2016

Dr Bond Receivable 75,000

Dr Interest Receivable 375

Cr Cash 75,375

(to record the bond purchase)

* working note: Bond proceed = 75 x 1,000 = 75,000; Interest receivable = 75,000 x 6% x 30/360 = 375)

1st Jul 2016

Dr Cash 2,250

Cr Interest Income 1,875

Cr Interest Receivable 375

(to record interest receipt on bonds holding, in which 5 months of it ( 75,000 x 6% x 5/12 is recorded as Income, the other one is recorded as collection of Income earned by the bond's seller)

29th Aug 2016

Dr Cash 34,650

Dr Loss on bond Investment 700

Cr Interest income 350

Cr Bond Receivable 35,000

( to record the Sold 35, $1,000 bonds at 98% plus $350 accrued interest = 35,000 x 98% + 350 = 34,650)

31st Dec 2016

Dr Interest Receivable 1,200

Cr Interest Income 1,200

( to record the interest earned on 40,000 bonds outstanding)

Explanation:

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A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks

Liula [17]

Answer:

a. 41.6 million

b. 42.28 million

Explanation:

A) GIven

forecast in june = Sjune = 42 million

Checks recived in june = Xjune = 40 million

Smoothing constant = a = 0.2

So for july

Sjuly = a*Xjune + (1-a)*Sjune

=0.2*40 + (1-0.2)*42 million

=8+33.6 = 41.6 million

B) forecast in july = Sjuly = 41.6 million

Checks recived in july = Xjuly = 45 million

Smoothing constant = a = 0.2

So for August

Saugust = a*Xjuly + (1-a)*Sjuly

=0.2*45 + (1-0.2)*41.6 million

=9+33.28 = 42.28 million

Note: This uses an exponential smoothing to forecast the results, but from the number of checks recived we see that it increases linearly. So we need a linear forecasting method .

5 0

3 years ago

Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a new plant facility. Hash ent

Eduardwww [97]

Answer:

Ratification by Principal One of the criteria for enactment is that all material truths involved in the transaction must be known to the Principal. Van Stavern was not aware of Hash's behaviour.

He did not realize that somehow the steel is being shipped under his name, and that the shipments were being billed him directly. Unlike liability through obvious authority, approval by the principal is a positive act by which he or she acknowledges the agent's illegal actions.

Just a principal would ratify; thus, Van Stavern was not directly imputed to information by the invoices and checks signed by Van Stavern's workers.

The court stated that the use of corporate checks was further proof that Van Stavern regarded the expenditures as business, not private. So Van Stavern could not be held personally liable.

Remember that on Sutton Steel that's not excessively harsh. Sutton understood it was working with a building company and did not seek to get the personal approval of the contract from Van Stavern.

Lawfully, Sutton's agreement in this case is called an unaccepted offer which can be withdrawn at any time.

6 0

3 years ago

Your savings account is currently worth $1,200. The account pays 5 percent interest compounded annually. How much will your acco

Flura [38]

Answer:

$2,010

Explanation:

The future value of the savings account in 6 years can be computed using the below future value formula:

FV=PV*(1+r)^n

FV=unknown future amount

PV=current worth of the savings account=$1,200

r=annual interest rate=5%

n=number of years envisaged=6

FV=$1,500*(1+5%)^6

FV=$1,500*(1.05)^6

FV=$1,500*1.3400956

FV=$2,010

7 0

3 years ago

________ examines organizational units for efficiency, effectiveness, and adequate controls.

mel-nik [20]

Currently, I would say LEAN and Six Sigma.

8 0

3 years ago

The following is a partial unadjusted Trial Balance.

PilotLPTM [1.2K]

Answer:

Supplies Expense 12500

Explanation:

Bravo Unlimited

Adjustment Entry

Date Particulars Debit Credit

February 29 Supplies Expense 12500

Supplies Account 12500

( Opening bal+ purchases- Ending bal= Expense= 2000+ 12000- 1500= 12500

At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.

On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed so the total amount of supplies used up is calculated by (Opening bal+ purchases- Ending bal= Expense) the formula given above.

5 0

3 years ago