Answer:
Please see below the Journal entries required for the Gilman Corporation for the amount borrowed.
Explanation:
Date: December 1
Debit: Cash $20,000
Credit: Notes Payable $20,000
To record Issuance of the note.
Date: December 31
Debit: Interest Expense<em> ($20,000 x 0.06 x 30/360)</em> $100
Credit: Interest Payable $100
To record Accrual Interest at the year end.
Date: March 1
Debit: Note Payable $20,000
Interest Payable $100
Interest Expense <em>($20,000 x 0.06 x 60/360)</em> $200
Credit: Cash $20,300
To record Payment of the note.
Answer: They raise the cost of pollution to discourage it.
Explanation:
Under the market oriented approach the forces of demand and supply determine the optimum quantity of a good and the price at which the good must be traded. The price gives us information on the relative scarcity of the good. When pollution is free, businesses will produce a large amount of it. However, when market oriented approach is used, the demand for pollution coming from the society as a whole interacts with the supply of pollution created by the various business and consumption activities. The intersection of this determines the price for pollution and the optimum quantity of pollution. Thus, pollution is not free anymore, it has a cost which is the price of pollution. Thus, the market oriented approach increases the cost of pollution to reduce the level of pollution.
Answer:
YTM (Annual( = 10.13%
Effective Annual Yield =10.40%
Explanation:
In order to calculate Yield to maturity, we need to use yield to maturity formula.
Formula: Yield to maturity = [C +(F – P)/n]/(F + P)/2
Where,
C = Coupon amount
F = Face value
n = number of periods
P = Current price
Data
C = 1000 x 8 % = 80
C (6months) = 80 x 6/12 = 40
F = $1000
n = 30 years
P = $800
Solution
YTM = 40 + (1000 – 800/30)/(1000 + 800)/2
YTM = 40 + (200/30)/(1800/2 )
YTM = 40 +( 200/30)/900
YTM = 5.068 semiannual
YTM (Annual( = 10.13%
Effective Annual Yield = 
Effective Annual Yield =10.40%
Answer:
The correct answer is option (d).
Explanation:
According to the scenario, the computation for the given data are as follows:
Total labor hour for standard tents = 2,800 × 4 = 11,200 Labor per hour
Total labor hour for deluxe tents = 1,300 × 10 = 13,000 Labor per hour
Total labor hour = 11,200 + 13,000 = 24,200
Allocation rate for indirect manufacturing costs = Total costs / Total labor hours = $484,000 /24,200 = $20
So, Per unit overhead for standard tents = Labor hours per unit × Allocation rate
= 4 × $20 = $80
Per unit overhead for deluxe tents = Labor hours per unit × Allocation rate
= 10 × $20 = $200
So, $80 of overhead cost should be assigned to each standard camping tent and $200 of overhead cost should be assigned to each deluxe tent.
Answers with Explanations:
1. What type of market is Huy Fong targeting with its Sriracha sauce?
"Huy Fong's Food Inc." is a company that sells <em>Sriracha sauce</em> made in California. It has also partnered with several companies in order to provide variety of products based on its official flavor.
Since Huy Fong is <u>open to competition with other rivals</u>, it is clear that the company is using the "monopolistic competition" <u>type of market.</u> Hung Fung is not the only company that sells sriracha sauce, other companies like <em>Heinz</em> and <em>Tabasco</em> are also selling the same sauce.
However, it has been branded as the most authentic and original of all. Such <u>uniqueness of the Huy Fung Sriracha sauce</u> makes it<em> stand out from the rest</em>. In this aspect, the company is <em>monopolizing the competition.</em>
2. Of the four categories of segmentation variables, which is most important to Huy Fong's segmentation strategy, and why?
Of the four categories of segmentation variables, "demographic" is the most important to Huy Fung's segmentation strategy. The company's target market are men and women who belong to the<u> age range of 20-30 in the United States.</u>
This is the<em> specific population</em> that the company is focusing on. These people are considered to be<em> budgeting their money</em> and in that sense, they'd be able to afford the sriracha sauce.
