Answer:
D) is a contra account to Bonds payable
Explanation:
Discount on Bond payable arises as a result of a bond issued at a price below its face value, or maturity value. A Bond considered risky or a bond whose interest rate is below market value is usually issued at a discount.
A discount on Bond payable account is a contra account to Bond payable .It is used to decrease the bond value by accounting for the discount on the Bond. The account represents the difference between the maturity value of the Bond and the cash received. The discount amount is debited to this account. It is then amortized to bond interest expense account until the Bond matures.
Answer:
b. $68.65 per direct labor hour
Explanation:
Allocating based on direct labor hours, divide the total budgeted overhead cost with the actual labor cost.
$460,000/6700 hours
$68.65/hour
Answer:
Chen should buy the new machine since it produces a positive NPV of $1,294
Explanation:
Summary of the Project Cash Flows is as follows :
Year 0 = ($120,000)
Year 1 to Year 10 = $18,900
The Project cost of capital = 9%
Calculation of the Project`s NPV :
<em>NPV can be calculated from this summary using a financial calculator as :</em>
<em>CF0 = ($120,000)</em>
<em>CF1 = $18,900</em>
<em>Nj = 10</em>
<em>i = 9 %</em>
<em>NPV = ? </em>
<em>NPV = $1,293.73 or $1,294</em>
The Project is accepted only if it has a Positive NPV
Conclusion,
Chen should buy the new machine since it produces a positive NPV of $1,294.
Answer:
False.
Explanation:
Fringe benefits can be defined as series of additional benefits that are being offered by an employer to his or her employees. This benefits are usually non-cash compensations and as such completely different from the agreed-upon amount of money that the employees receive at regular intervals.
Hence, fringe benefits are always part of an employee's non-cash compensation package.
Some examples of fringe benefits are paid vacation, official cars, health insurance, social security, gym membership, free breakfast or lunch, transportation, housing, etc.