Answer and Explanation:
The Journal entries are shown below:-
Interest expense Dr, $316,800
Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)
To Interest payable $336,000 ($4,800,000 × 7%)
(Being interest expense and bond premium amortization is recorded)
Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities
Answer: Dynamic of need
Explanation: There are two words of importance here. Dynamic and need.
Dynamic: when a person, place, or thing is energetic and active, this is know as being dynamic.
When something is dynamic it goes through a lot of process. Example: Someone with a dynamic personality is usually funny.
Need: to require something because it’s important or very essential.
Dynamic of need is when you have a active need of things, this things can be information which are very essential.
Answer: 20,816.215
Explanation:
Given that:
A deposit of $1000 at 4% interest compounding is defined by the growth function:
v(t) = 1000e^0.04t
Where t = number of years.
Find the average value during the first 40 years (that is, from time 0 to time 40.)
(That is t = 0,...,40)
For ease, we can use a python list comprehension to get our values.
v = [1000*2.7182818**0.04*t for t in range(41)]
V gives a list of the value of the deposit from year 0 till 40 years after the deposit.
Average = sum of compounding deposits / number of years
Sum of compounding deposits = sum(v) = $853464.8344
Number of years = len(v) = 41
Hence, average = $853464.8344 / 41
Average = $20,816.215
Answer:
a) 250 brackets;
b) Average inventory: 125 brackets; Annual inventory holding cost: $187.50
c) 10 orders;
d) $375
e) 25 days
f) 20 brackets
Explanation:
a) EOQ = square root of [(2* Order Cost per one order * annual demand] / Holding Cost per bracket per year ] = square root of [ 2* 18.75 * 2,500 / 1.5] = 250 brackets.
b) Average inventory = EOQ/2 = 125 brackets; Annual inventory holding cost = 125 x 1.5 = $187.5
c) Orders made annually give EOQ = Annual demand / EOQ = 2,500/250 = 10 orders;
d) Total annual cost of managing (ordering and holding) the inventory = 10 x 18.75 + 187.5 = $375
e) Time between orders = Total annual working days/ orders made per year = 250/10 = 25 days.
f) The reorder point (ROP) = Demand of bracket per working day * lead time = Annual demand * Lead time / total annual working days = 2,500*2/250 = 20 brackets.
