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3 years ago

On December 31, a $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000.

Business

1 answer:

Novay_Z [31]3 years ago

7 0

Answer:

Explanation:

The journal entry is shown below:

Bonds Payable A/c Dr. $1,500,000

Loss on Redemption of Bond A/c Dr. $25,100

To Discount on Bonds Payable A/c $70,100

To Cash A/c $1,455,000

(Being the redemption of the bond is recorded)

The loss on redemption of bond would be

= $1,455,000 + $70,100 - $1,500,000

= $25,100

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A potential loan customer wants to borrow $4 million to purchase and manage a strip mall with a pizza restaurant, crafts store,

Lena [83]

Answer:

The loan officer takes the following steps (not necessarily in this order) to assess the creditworthiness of the borrower:

- Run a credit report using any of the major credit reporting agencies like TransUnion, Experian or Equifax.

- Obtain accounts receivable aging reports.

- Check references.

- Conduct a gut check using creative investigative methods.

Explanation:

There are some factors that can affect creditworthiness or credit score such as: bill payment history, which comprises 35 percent of the total credit score and the most important factor in calculating credit scores, the level of debt, credit history age, types of credit on a report and number of credit inquiries, credit utilization, length of credit history. There are five “C's” to consider during a credit risk assessment: character, capacity, capital, condition, and collateral. Whether a sale is a domestic or international transaction.

The main factor lenders consider in determining a person's creditworthiness is investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts, capacity to pay, character, and any collateral you may have for loan guaranteed only by a promise to repay.

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3 years ago

The new Fore and Aft Marina is to be located on the Ohio River near Madison, Indiana. Assume that Fore and Aft decides to build

Nataly [62]

Po = 0.5385, Lq = 0.0593 boats, Wq = 0.5930 minutes, W = 6.5930 minutes.

<u>Explanation:</u>

The problem is that of Multiple-server Queuing Model.

Number of servers, M = 2.

Arrival rate, $\lambda$ = 6 boats per hour.

Service rate, $\mu$ = 10 boats per hour.

Probability of zero boats in the system, $\mathrm{PO}=1 /\{[(1 / 0 !) \times(6 / 10) 0+(1 / 1 !) \times(6 / 10) 1]+[(6 / 10) 2 /(2 ! \times(1-(6 /(2 \times 10)))]\}$ = 0.5385

<u>Average number of boats waiting in line for service:</u>

Lq = $[\lambda.\mu.( \lambda / \mu )M / {(M – 1)! (M. \mu – \lambda )2}] x P0$

= $[\{6 \times 10 \times(6 / 10) 2\} /\{(2-1) ! \times((2 \times 10)-6) 2\}] \times 0.5385$ = 0.0593 boats.

The average time a boat will spend waiting for service, Wq = 0.0593 divide by 6 = 0.009883 hours = 0.5930 minutes.

The average time a boat will spend at the dock, W = 0.009883 plus (1 divide 10) = 0.109883 hours = 6.5930 minutes.

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3 years ago

A business is having trouble keeping up with the competition. They cannot

Makovka662 [10]

Answer:

Decision support system

Explanation:

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3 years ago

Hadlee Corporation produces two products, P and Q. P sells for $9.50 per unit; Q sells for $5.50 per unit. Variable costs fo

RideAnS [48]

Answer:

C. $4,350

Explanation:

We first calculate contribution per limiting factor to rate priority the products to be produced.

Contribution P = 9.50 - 5 = $4.50

Contribution Q = 5.50 - 3 = $2.50

Labor hours used,

P = 3

Q = 5

Contribution / labor hour

P = 4.50 / 3 = $1.5

Q = 2.50 / 5 = $0.5

We should prioritize production of P first and thus total units produced for P should be 900 using 900*3 = 2700 labor hours.

Q should be produced

Hours available for Q = 3300 - 2700 = 600 hours

Q production = 600/5 = 120 units.

Optimum Contribution =

900 units of P @ 4.50 contribution / unit = $4,050

120 units of Q @ 2.50 contribution / unit = $300

Total Contribution = 4,050 + 300 = $4,350

Hope that helps.

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3 years ago

Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low pro

dexar [7]

Answer:

Net income or (Loss) = $43,128

Explanation:

As per the data given in the question,

Elegant Decor Company

Forecasted annual income statement

Under plan to eliminate Department 200

Sales = $437,000

Cost of goods sold = $261,000

Gross profit = $176,000

Operating expense

Direct expenses:

Advertising = $15,500

Stores supplies used = $4,500

Depreciation- Stores Equipment = $4,200

Total Direct Expense = $24,200

Allocated Expenses :

Sales Salaries = $64,000

($104,000-2×$24,200+($31,200÷2) = $40,000)

(104,000-$40,000)

Rent Expenses = $14,180

Bad debt expense = $9,400

Office salary = $15,600

($31,200 - ($31,200 ÷ 2))

Insurance expense = $1,724

($2,200 - $476)

Miscellaneous expense = $3,728

($4,000 - $272)

Total Allocated Expenses = $108,632

Total Expense = $132,872

($108,632 + $24,200)

Net income or (Loss) = $43,128

($176,000 - $132,872)

5 0

3 years ago