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hoa [83]
3 years ago
10

On January 1, 2017, Hannigan Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable

each January 1. 1. Prepare the journal entry for the issuance assuming the bonds are issued at 97. 2. Prepare the journal entry for the issuance assuming the bonds are issued at 102.
Business
1 answer:
mart [117]3 years ago
6 0

Answer:

Explanation:

The journal entries are shown below:

Cash A/c Dr $582,000            ($600,000 × 0.97)

Discount on Bonds Payable A/c Dr $18,000

       To Bonds payable A/c    $600,000

(Being the issuance of the bond is recorded and the remaining balance is debited to the discount on bond payable account)

Cash A/c Dr $612,000            ($600,000 × 1.02)

       To Bonds payable A/c    $600,000

       To Premium on bonds payable A/c $12,000

(Being the issuance of the bond is recorded and the remaining balance is credited to the premium on bond payable account)

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A stock has a correlation with the market of 0.49. The standard deviation of the market is 25%, and the standard deviation of th
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Answer:

Stock's beta  = 0.65 (Approx)

Explanation:

Given:

Correlation = 0.49

Standard deviation of stock (SDs) = 33% = 0.33

Standard deviation of market  (SDm) = 25% = 0.25

Find:

Stock's beta

Computation:

Stock's beta = Correlation(SDs) / SDm

Stock's beta = 0.49 (0.33) / 0.25

Stock's beta  = 0.65 (Approx)

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3 years ago
Table 1 contains information about a small business for one month. The business
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The current ratio includes at the of the following except :
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4 years ago
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Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:
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Answer:

Part a. Compute the unit product cost under absorption costing.

Variable costs per unit:

        Direct materials                                                                         $ 165

         Direct labor                                                                                $ 72

         Variable manufacturing overhead                                            $ 8

Fixed Overheads per unit:

       Fixed manufacturing overhead ($535,500/10,500)                  $ 51

Unit product cost                                                                                $296

Part b. Compute the unit product cost under variable costing.

Variable costs per unit:

        Direct materials                                                                         $ 165

         Direct labor                                                                                $ 72

         Variable manufacturing overhead                                            $ 8

Unit product cost                                                                                $245

Explanation:

Part a. Compute the unit product cost under absorption costing.

Absorption costing treats fixed overheads as part of product cost and hence fixed manufacturing overheads are included in unit product cost at their absorption rate

Part b. Compute the unit product cost under variable costing.

Variable Costing System treats fixed overheads as a Period Cost and not part of product cost hence fixed manufacturing overheads are excluded in unit product cost

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<span>The proactive efforts of company managers to boost the stock price of the company should, of a necessity, include such actions as raising the company's dividend each year (ideally by at least $.05 per share) and repurchasing shares of common stock.</span>

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4 years ago
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