Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of four-year, 12% bonds with interest payable semiannually, at
1 answer:
<u>Solution and Explanation:</u>
Face Value of Bonds = $100,000
Annual Coupon Rate = 12.00% , Semi-annual Coupon Rate = 6.00%
Semiannual Coupon = 6.00% * $100,000 , Semiannual Coupon = $6,000
Annual Interest Rate = 9.00% , Semiannual Interest Rate = 4.50%
Time to Maturity = 5 years , Semiannual Period = 10
Present Value of Bonds
Present Value of Bonds =
Present Value of Bonds = $111,869
So, present value of the bonds payable is $111,869
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Answer:
overhead rate: 15
applied overhead 30,000
underapplicatio for 1,000
Explanation:
The manufacturing overhead rate is determinate by dividingthe total expected cost by a cost driver. In this case, the machine hours.
estimated cost 150,000
expected machine hours 10,000
predeterminate overhead rate = 150,000/10,000 = 15
Next, to allocate cost, we multiply the actual value fo the cost driver by the rate
actual machine hours x MO rate
2,000 x 15 = 30,000 applied overhead.
Last, we compare with the actual overhead to determinate over or underapplied overhead:
applied - actual
30,000 - 31,000 = -1,000
Thew overhead was underapplied, as the cost were for 31,000 but we only recognize 30,000