Answer:
Interest expense 18,284.17 debit
Premium on BP 1,965.83 debit
Cash 20,250 credit
Explanation:
procceds 461,795
face value 450,000
premium on bonds payable 11,795
As the cash received exceed the face value then, the bonds were isued at premium.
This will be amortized over the bonds life
3-year bonds with semiannual payment: 6 payment in total
amortization per payment:
11,795 / 6 = 1.965,83
The will post:
the cash disbursement in favor of the bondholder:
450,000 x 9%/2 = 20,250
amortization (1,965.83)
interest expense: 18.284,17
Answer:
c. $45
Explanation:
Transfer price is the price charged for a product which is transferred to other department/ division / subsidiary of same company / group. The minimum selling price in the absence of any excess capacity is the price available in the market, because the company has demand for the product and it does not lost the sale if transfer not takes place. The product can be sold in the market. So the Transfer price should be $45.
Answer:
Cost of goods purchased= $82,000
Explanation:
Giving the following information:
Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.
We know that:
Cost of goods purchased= cost of goods sold + ending inventory - beginning inventory
Cost of goods purchased= 84,000 + 18,000 - 20,000= 82,000
Answer:
Cash flow from operating activities $141.8
Explanation:
Cash received from customers during the reporting period
A.Sales $ 545.0+ 22.0 Decrease in accounts receivable = $567
B.
Cash paid to suppliers of the goods
Cost of goods sold 218.0 +Increase in inventory 93.0 +Decrease in accounts payable 56.0 =$367
C.
Cash paid to employees
Salaries expense $ 65.0 -Increase in salaries payable 37.0 = $28
D.
Cash paid for insurance
Insurance expense 42.0 -Decrease in prepaid insurance 17.0 =$25
E.
Cash paid for income tax
Income tax expenses 91.0 -Increase in income tax payable 85.8 =$5.2
(2)
Cash received from customers during the reporting period $567
Cash paid to suppliers of the goods ($367)
Cash paid to employees($28)
Cash paid for insurance ($25)
Cash paid for income tax ($5.2)
Cash flow from operating activities $141.8
