Answer:
And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:
And the Total August sales would be given by:
And the correct answer for this case would be:
$63,750
Explanation:
For this case the original number of sales for this case is 5000 units and the unitary price is given by 
And the total sales for the original case would be given by:
And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:
And the Total August sales would be given by:
And the correct answer for this case would be:
$63,750
Answer:
(C) Decrease No effect
Explanation:
at purchase:
30,000 shares x 16 dollars each:
Treasury stock 480,000 debit
Cash 480,000 credit
--purchase of own share--
Then we will decrease retained earnings for the difference in the cash proceed on the sale and our treasury stock.
30,000 x 12 dollars = 360,000 cash proceeds
treasury stock 480,000
decrease in RE 120,000
cash 360,000 debit
retained earnings 120,000 debit
Treasury Stock 480,000 credit
Answer:
$700
Explanation:
If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.
Discount = Face value - Issuance price = $15,000 - $14,700 = $300
Bond's Life = 6 years
Amortization of discount = $300 / 6 = $50 annually = $25 semiannually
Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually
Interest Expense Includes both the coupon payment and discount amortization for the period.
Interest Expense = $675 + $25 = $700
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