Economics is hard and I need to graduate

Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, 2020. The one-year note carried a 6% rate

Nady [450]

Answer:

loan interest revenue for 2020 is $720

loan interest revenue for 2021 is $240

Explanation:

The loan interest revenue in the year 2020 is for 9 months out of the total loan tenure of twelve months:

interest revenue for 2020=$16,000*6%*9/12=$720.00

This would be debited to interest receivable and credited to interest revenue account.

interest revenue for 2021=$16,000*6%*3/12=$240.00

3 0

3 years ago

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The company allocated manufacturing overhead of using a predetermined overhead rate of per machine hour. The total actual manufa

blagie [28]

Answer:

Instructions are below.

Explanation:

Giving the following information:

We weren't provided with enough information to answer, but, I can provide with an example and formulas to guide an answer.

For example:

Estimated overhead for the period= $1,500,000

Estimated machine-hours= 55,000

Actual machine-hours= 62,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,500,000/55,000

Predetermined manufacturing overhead rate= $27.27

Now, we can allocate overhead based on actual hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 27.27*62,000

Allocated MOH= $1,690,740

4 0

3 years ago

A. At the garage, mechanics changed the

anastassius [24]

Answer:

A. At the garage, mechanics changed the oil, fixed the brakes and checked the transmission.

Explanation:

4 0

3 years ago

Simko Company issued $750,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $710,000. Interest is payab

11Alexandr11 [23.1K]

Answer:

Bond issuance:

Dr cash $710,000

Dr discount on bonds payable $40,000

Cr bonds payable $750,000

The payment of interest on December 31, 2018:

Dr interest expense $50,000

Cr discount on bonds payable $5000

Cr cash $45,000

Explanation:

The bonds were issued at a discount to their face value, as a result, the discount on bonds payable is computed thus:

discount on bonds payable=$750,000-$710,000=$40,000

Bonds payable would be credited with $750,000 while cash and discount on bonds payable would be debited with $710,000 and $40,000 respectively

annual discount amortization=$40,000/8=$5000

annual coupon=$750,000*6%=$45000

6 0

3 years ago

Arjen owns investment A and 1 bond B. The total value of his holdings is 1,529 dollars. Investment A is expected to pay annual c

zloy xaker [14]

Answer:

In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.

As the first cash flow is received today and the last will be received 3 years form now there will be a total of 4 cash flows

1) 218.19 (Will not be discounted as we are receiving it today in the present)

2) 218.19/1.0987 (Discount by 1 year as cash will be received in 1 year)

3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)

4) 218.19/ 1.0987^3 (Discount by 3 years as cash will be received in 3 years)

= 218.19 + 198.58 + 180.74+ 164.51 = 762.02

PV of Bond = 1529-762.09= 766.91

Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000

In a financial calculator put

PV= -766.91

N= 46

FV=1000

PMT= 32

and compute I

I is 4.38 and we will multiply it by 2 because the payments are semi annual. So we will get an I of 8.76

YTM= 0.0876

Explanation:

5 0

3 years ago

Economics is hard and I need to graduate ​

Economics is hard and I need to graduate