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2 years ago

Power Company issued a $ 1,000,000, 5 %, 10-year bond payable at at face value on January 1, 2016. Requirements

Business

1 answer:

Anettt [7]2 years ago

4 0

Answer and Explanation:

The journal entries are shown below:

1. Cash Dr $1,000,000

To Bond payable $1,000,000

(Being the issuance of the bond is recorded)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities

2. Interest Expense Dr ($1,000,000 × 5% × 1 ÷ 2) $25,000

To Cash $25,000

(Being the interest expense is recorded)

For recording this we debited the interest expense as it increased the expense and credited the cash as it decreased the asset

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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A

Burka [1]

Answer:

The special order should be : Accepted

Explanation:

<u>Analysis of whether or not to accept special order</u>

Revenues (3,000 x $25) $75,000

Less Variable expenses :

Costs - Manufacturing (3,000 x $20) ($60,000)

Shipping (3,000 x $3) ($9,000)

Net Income $6,000

Conclusion :

Since Net Income has increased by $6,000 as a result of special order, it should be accepted

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2 years ago

3. Do you agree with Graeter’s decision to stop franchising?

liberstina [14]

Answer: Yes, I agree with Graeter’s decision to stop franchising?.

Explanation:

Graeter’s decision to stop franchising was simply to maintain the quality of their products.

If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.

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2 years ago

Information on Wolfen Company's direct labor costs for the month of January follows: Actual direct labor rate $5.00 Standard dir

xeze [42]

Answer:

Standard Rate = $ 5.65

Explanation:

Wolfen Company

Actual direct labor rate $5.00

Standard direct labor hours allowed 11,000

Actual direct labor hours 10,000

Direct labor rate favorable $6,500

Using formula to find the unknown figure

Direct Labor Rate variance = Actual Hours ( Standard Rate-Actual Rate)

$6,500= 10,000( Standard Rate-5)

$6,500/10,000 = (Standard Rate-5)

0.65+ 5=Standard Rate

Standard Rate=5+0.65= $ 5.65

We can check by putting it in another formula

Direct Labor Rate variance= (actual hours * standard rate)-(actual hours* actual rate)

$6,500=(10,000*Standard Rate)-( 10,000 *5.0)

$6,500= (10,000*5.65)-( 10,000 *5.0)

$6,500= (56,500)-( 50,000 )

$6,500=$6,500 (favorable) when standard price is higher than actual price

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3 years ago

The __________ is a listing of all the balance sheet and income-related accounts

fenix001 [56]

<span>Answer : Chart of accounts Explanation: A chart of accounts (COA) is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.</span>

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3 years ago

katen-ka-za [31]

Answer:

Explanation:

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2 years ago

Power Company issued a $ 1,000,000​, 5 %​, 10​-year bond payable at at face value on January​ 1, 2016. Requirements

Power Company issued a $ 1,000,000, 5 %, 10-year bond payable at at face value on January 1, 2016. Requirements