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Dmitriy789 [7]
3 years ago
14

Presented below are three independent situations:

Business
1 answer:
Blababa [14]3 years ago
4 0

Answer:

Explanation:

a)

June 30, 2018

Dr Bonds Payable $250,000

Dr Loss on Redemption of bonds $25,500

    Cr Discount on Bonds Payable $20,500

    Cr Cash $255,000

Supporting calculations:

Discount on Bonds Payable = 250,000 -  229,500 = $20,500

Cash = $250,000*102/100 = $255,000

Loss on redemption of bonds = $255,000+$20,500-$250,000 = $25,500

b)

June 30, 2018

Dr Bonds Payable  $200,000  

Dr Discount on Bonds Payable $3,500

    Cr Gain on Bond Redemption  $9,500

    Cr  Cash                                             $194,000

Supporting calculations:

Discount on Bonds Payable = 200000-196500 = $3500

Cash = 200000*97% = $194,000

Gain on Bond Redemption = $200,000 + $3,500 - $194,000 = $9,500

c)

31 Dec

Dr Bonds Payable $30,000  

    Cr Common Stock  $6000

    Cr Paid in capital in excess of par-Common Stock $24000

Common Stock = 30000/1000*$5*40 shares = 6,000

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Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need
mezya [45]

Question Completion:

see Exhibit 4 attached.

Answer:

1. The largest and smallest divisions by net sales in 2017:

Largest divisions:

Fabric & Home care with 32%

Baby, Feminine & Family Care, 28%

Smallest divisions:

Beauty with 18%

Grooming, 11%

Healthcare, 11%

2. The one most important division in terms of the proportionate net earnings for the company is:

Fabric & Home Care

Explanation:

The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%.  In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%.  The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division.  Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.

Download docx
4 0
2 years ago
Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization sch
Kobotan [32]

Answer:

c. 7%

Explanation:

According to the given scenario, the computation of the annual stated interest rate on the bonds is shown below:-

Sated interest Rate = Cash interest ÷ Face Value of the bond × 2

= $7,000÷ $200,000 × 2

= 7%

Therefore for computing the annual stated interest rate on the bonds we simply applied the above formula. hence the correct option is c

6 0
3 years ago
The following per unit cost information is available: direct materials $36, direct labor $24, variable manufacturing overhead $1
oksian1 [2.3K]

Answer:

Mark−up percentage = 18.75%

Explanation:

Total manufacturing cost= Direct material + Direct labor  + Variable overhead + Fixed overhead

= $36 + $24 + $18 + $40

= $118

Hence, the total manufacturing cost is $118.

Total selling cost = Fixed selling cost + Variable selling cost

Total selling cost = $28 + $14

Total selling cost = $42

Hence, the total selling cost is $42

Total cost = Total Manufacturing cost + Total selling cost

Total cost = $118 + $42

Total cost = $160

Mark−up percentage = ROI / Total cost * 100

Mark−up percentage = $30 / $160 * 100

Mark−up percentage = 0.1875 * 100

Mark−up percentage = 18.75%

7 0
3 years ago
You want to buy a new sports car from Muscle Motors for $38,000. The contract is in the form of an annuity due for 60 months at
insens350 [35]

Answer:

$800.71

Explanation:

In this question we use the PMT formula that is shown on the attachment below:

Data provided in the question

Present value = $38,000

Future value = $0

Rate of interest = 10% ÷ 12 months = 0.83333%

NPER = 60 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payments is $800.71

5 0
3 years ago
Consider the following financial statement information for the Hop Corporation:
EastWind [94]

Answer: Operating cycle = 84.70 days

Cash cycle = 41 days

Explanation:

Beginning inventory = $11,100

Ending Inventory = $12,100

Average inventory = ($11100 + $12100)/2 = 11600

Average Accounts receivable = (6,100 + 6,400)/2 = 6250

Average Accounts payable = (8,300 + 8,700)/2 = 8500

Day sales in inventory = Average inventory × 365 / Cost of goods sold

= 11600 × 365 / 71000 = 59.63 days

Average collection period = Average receivable × 365 / Credit sales

= 6250 × 365 /91000 = 25.07 days

Average payment period = 43.70 days

Therefore, operating cycle will be:

= Day sales in inventory + Average collection period

= 59.63 days + 25.07 days

= 84.70 days

Cash cycle = Operating cycle - Average payment period

= 84.70 - 43.70

= 41 days

7 0
3 years ago
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