Your business plan is a

A single bond with a face value of $1,000 has a stated annual interest rate of 7.6%. The last bond traded on this day was 98.45%

Anestetic [448]

Answer:

$984.50

Explanation:

Cost of bond at closing = Par value * % Bond traded last

Cost of bond at closing = 1000 * 98.45%

Cost of bond at closing = $984.50

Thus, the cost of bond at closing is $984.50

5 0

3 years ago

Brooks Co. purchases various investments in trading securities at a cost of $66,000 on December 27, 2013. (This is its first and

sineoko [7]

Answer:

a) Debit 6,000 to trade securities and Credit $6,000 to Unrealized Gain account

b) Debit $35,000 to Cash account

Credit $33,000 to trade securities account

Credit $2,000 to gain on sales on securities account.

Explanation:

The first part of the question is to determine the year-ended adjusting entry

As follows:

December 31, 2013

Trading Securities = Fair value of the Securities - Trading Securities at Cost

= $72,000 - $66,000

= $6,000

The Journal entry Description Debit Credit

Dec 31, 2013 Trading Securities 6,000

Gain unrealized on securities a/c 6,000

Being the record of unrealized holding gain on trading securities

Part 2) January 3, 2014 Sales of a Portion of Trading Securities

Date Description Debit Credit

Jan 3rd, 2014 Cash 35,000

Trading Securities a/c 33,000

Gain on sales of Securities 2,000

Being the record of sales of a portion of trade securities.

6 0

3 years ago

Binder Corp. has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,00

lina2011 [118]

Answer:

2.12 years

Explanation:

The calculation of the payback period is given below:

Year CF Cumulative CF

0 $(1,450,000) $(1,450,000)

1 640,000 (810,000)

2 715,250 (94,750)

3 823,330 728,580

4 907,125 1,635,705

Now payback period is

= 2 + ($94,750 ÷$823,330)

= 2.12 years

7 0

3 years ago

Sports Medicine, Inc., offers two types of physical exams for students: the basic physical and the extended physical. The char

kramer

Explanation:

Second Quarter Sales budget

Forecasted Physical Exam. (Basic at $95 per exam and Extended at $150)

July

Basic > 240 =95*240=23,040

Extended > 165 = 150*165=25,200

August

Forecasted Physical Exam.

Basic > 250 = 95*250=23,750

Extended > 215 =150*215=32,250

September

Forecasted Physical Exam.

Basic > 80 =90*80 =7,200

Extended > 90 =150*90 =13500

Total Gross Sales

Basic=$53,990

Extended=$70,950

3 0

4 years ago

To display desserts in restaurants, Mario Sclafani ordered refrigeration units from Felix Storch, Inc. Felix faxed a credit appl

Illusion [34]

Sclafani is a disclosed principal

Principals are liable for contracts made by an agent when that contract was authorized by the principal. 

Explanation:

1) Who was the principal?

Sclafani is a disclosed principal

Principals are liable for contracts made by an agent when that contract was authorized by the principal. 

 

2) Who is the agent?

The office worker

3) Who is the third party?

When a third party, in this case Felix, enters into a contract with a disclosed principal, in this case Sclafani, who is liable on the contract the principal alone

In this case Felix alleged that Sclafani authorized the officer worker to sign and fax the credit application back to Felix. Felix likely alleged that in the event Sclafani did not give actual authority to the officer worker, the officer worker had apparent authority to contract with Felix.

Apparent authority is established when the principal leads a reasonably prudent person to justifiably believe that an agent has authority to act.

6 0

3 years ago