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Alexus [3.1K]
3 years ago
6

Chang Industries has bonds outstanding with a par value of $216,000 and a carrying value of $227,000. If the company calls these

bonds at a price of $221,000, the gain or loss on retirement is:
A. 5,000 gainB. 6,000 gainC. 6,000 lossD. 5,000 lossE. 11,000 gain
Business
1 answer:
cluponka [151]3 years ago
4 0

Answer:

A. $6,000 gain

Explanation:

Data provided

Carrying Value = $227,000

Call Price = $221,000

The computation of gain or loss on retirement is shown below:-

Gain on Retirement = Carrying Value - Call Price

= $227,000 - $221,000

= $6,000

Therefore for computing the gain on retirement we simply deduct the call price from carrying value.

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C&A purchases fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case. Each case co
Verdich [7]

Answer:

$1.5

Explanation:

Given:

Charges per order = $30

Charges per case = $50

1 case = 5 bags of fertilizers

Number of fertilizers bags needed per year = 2000 bags

Annual holding cost, C₀ = 30%

Now,

Annual demand for cases,  D = \frac{\textup{Number of fertilizers bags needed}}{\textup{Number of bags per case}}

= \frac{\textup{2000}}{\textup{5}}

= 400 cases

thus,

Annual unit holding cost per case, C_h = 30% of $50 i.e $15

Thus,

Economic Order quantity ( EOQ ) =\sqrt{\frac{2C_oD}{C_h}}

on substituting the respective values, we get

EOQ =\sqrt{\frac{2\times30\times400}{15}}

or

EOQ = 40

Now,

Annual ordering cost = Ordering cost × Number of orders

= C₀ × \frac{\textup{annual demand}}{\textup{EOQ}}

= $30 × \frac{\textup{400}}{\textup{40}}

= $300

Annual inventory holding cost

= Annual unit inventory holding cost × Average inventory

= C_h × \frac{\textup{EOQ}}{\textup{2}}

= $15 × \frac{\textup{40}}{\textup{2}}  

= $300

Now,

Sum of annual ordering and holding cost per case of fertilizer

= $300 + $300

= $600

Therefore,

Annual ordering and holding cost per case of fertiliser

= \frac{\textup{600}}{\textup{Annual demand}}

= \frac{\textup{600}}{\textup{400}}

= $1.5

7 0
3 years ago
When a bond issued at face value is retired what is the journal entry
Vedmedyk [2.9K]
Credit the "bond payable" liability account for the total face value of the bonds and debit cash for the same amount.


8 0
3 years ago
The practice of comparing a company with its prior performance or with best practices from other companies is called A. benchmar
KatRina [158]

Answer:

A. benchmarking

Explanation:

In companies; benchmarking is the good practice as it compares the company's business processes and performance metrics to industry. There are four types of benchmarking which are internal, competitive, functional and generic. Benchmarking always facilitate to seek the best practices of your competitor and learn it to implement or take strategic decisions. Based on the data and information which is derived from benchmarking; company can modified its strategies towards the achievement of objective to excel among competitors.

3 0
2 years ago
The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at each of the follo
zubka84 [21]

Answer:

The correct answer is ENRON.

Explanation:

Going back to December 2, 2001, is going back to one of the biggest scandals in economic history. That day, the energy company Enron declared bankruptcy. First global energy distributor, invoiced 100,000 million dollars annually.

Jeffrey Skilling, the mind behind accounting, did his last master move badly. Before the bankruptcy they were seen coming, he resigned his position alleging family reasons and sold the shares he had in the company. Four months later came bankruptcy. Supposedly, he didn't know anything about the critical situation of the company. He did not strain.

In 2004 he was charged with about thirty charges, including operating with confidential information, by selling about 60 million dollars in Enron shares before bankruptcy, deceiving the auditor or conspiracy.

7 0
3 years ago
Which best compares and contrasts Management and Marketing?
sertanlavr [38]

Answer:

hello

takip et beni lütfen

7 0
3 years ago
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