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2 years ago

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

Business

1 answer:

saw5 [17]2 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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Presented below is information for Concord Corporation for the month of March 2020.

Zigmanuir [339]

Answer:

(a) Multiple-step income statement.

Sales revenue $388,710

Less Sales returns and allowances ($12,620)

Net Sales $376,090

Less Cost of Goods Sold ($215,090)

Gross Profit $161,000

Less Operating Expenses :

Selling and Distribution Expenses :

Freight-out $6,220

Sales discounts $7,240 ($13,460)

Administration Expenses :

Rent expense $31,270

Salaries and wages expense $56,180 ($87,450)

Operating Income / (Loss) $60,090

Explanation:

A multiple-step income statement, shows separately Income derived from Primary Activities of the Company (Operating Income) and the Income that includes Secondary Activities of the Company (Net Income).

Operating Expenses are further categorized under Selling and Distribution Expenses and Administration Expenses.

3 0

2 years ago

Refer to exhibit 4-5. if a free market were allowed in the transplanted kidney market, then the equilibrium price would be p2. t

Aneli [31]

Answer:

(q2 - q1)

Explanation:

I have uploaded the picture the question refers to below.

We can see that under a price ceiling of $0, the quantity of kidneys supplied is Q1, and if the price ceiling is removed, and the market is allowed to reach equilibrium, the new quantity of kidneys supplied is Q2, so the increase in the supply of transplanted kidneys can be found by the formula (q2 - q1)

6 0

2 years ago

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its fact

andreev551 [17]

Answer:

Explanation:

We know that

The manufacturing overhead would be comprised of

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary + insurance on factory machine

The direct material would be the material which are used to make the product or we can say it would be directly related to the product

And, the direct labor includes the labor part which are making the products and in return they received the wages

So, the categorization is shown below:

1. salaries for assembly line inspectors - Direct labor or manufacturing overheads

2. insurance on factory machine - manufacturing overheads

3. property taxes on the factory building - manufacturing overheads

4. factory repairs - manufacturing overheads

5. upholstery used in manufacturing furniture - Direct material

6. wages paid to assembly line workers - Direct labor

7. factory machinery depreciation - manufacturing overheads

8. glue,nails,paint, and other small parts used in production - manufacturing overheads

9. factory supervisors salaries - manufacturing overheads

10. wood used in manufacturing furniture - Direct material

7 0

2 years ago

Harry recently raised his employees' wages, which has increased production costs. Which factor did the salary hike affect?

Pavel [41]

The factor that the salary hike effect is :
A. Fixed cost
Technically, no matter how much output the workers produced, the wages will stay the same

hope this helps

6 0

2 years ago

Read 2 more answers

As part of PSM standards, hazard communication standards require employers who use hazardous chemicals to _____.

dusya [7]

As part of PSM standards, hazards communication standards require employers of different companies who use hazardous, unsafe and life threatening chemicals "to check, evaluate, classify and label each of those chemicals". These standards are developed and established by OSHA (Occupational Safety and Health Organization).

8 0

2 years ago