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grin007 [14]
4 years ago
7

Journalize the entries to record the following selected bond investment transactions for Starks Products: If an amount box does

not require an entry, leave it blank. a. Purchased for cash $66,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $990
Business
1 answer:
dalvyx [7]4 years ago
6 0

Answer:

The journal entries are:

Dr Bond Receivable      66,000

Dr Interest Receivable   990

Cr Cash                          66,990

(to record the purchase of Iceline, Inc. 's bonds)

Explanation:

The purchase include the following deliverables:

+ The bond at the price of $66,000

+ The interest receivables that the seller(s) is/are eligible to receive, yet, they transfer the rights to the buyers. This amount is recorded at $990 as Buyer's receivable because as bond holder, Buyers are eligible to receive that. Noted that this is not qualified to be recorded as Interest Income for Bond's Buyers because the Buyers do not hold the bond at all before the purchase, thus, they should not recorded any interest income from the coupon receipt.

=> Total Cash spent for the purchase is $66,990 ( $66,000 + $990).

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Tickets for the historical review of ballroom dancing at the Portsmouth Music Hall cost $42 for the main-floor seats and $25 for
const2013 [10]

Answer:

(a) The cost in dollars of all the main-floor seats that were sold: 42m + 25b. (b) The total number of seats that were sold for the performance: m+b.

Explanation:

Its understood that 1 tickect is equal to 1 seat, therefore the number of seats = number of tickets regardless of the type of seat. With this assumption, the algebraic expressions can be done.

7 0
3 years ago
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations
stepan [7]

Answer:

Sales quantity for A = $17,977

Sales quantity for B = $18,539

Sales quantity for C = $18,876

Explanation:

Given that

Monthly profit = $11,000

Fixed cost A = $5,000

Fixed cost B = $5,500

Fixed cost c = $5,800

The computation of given question is below:-

Every Sandwich Profit

= $2.65 - $1.76

= $0.89

Sales quantity = (Profit + Fixed cost) ÷ Profit per unit

Sales quantity for A = ($11,000 + $5,000) ÷ $0.89

= $17,977

Sales quantity for B = ($11,000 + $5,500) ÷ $0.89

= $18,539

Sales quantity for C = ($11,000 + $5,800) ÷ $0.89

= $18,876

3 0
3 years ago
Earnings per share: Select one: a. Will always be lower than the dividend paid per share b. Will always be higher than the divid
Svetlanka [38]

Answer:

b. Will always be higher than the dividend paid per share

Explanation:

A firm pays dividend to it's stockholders based upon it's earnings.

Earnings per share (EPS) is expressed as:

= \frac{Earnings\ available\ to\ stockholders}{No.\ of\ stocks\ outstanding}

Dividend payout ratio on the other hand is expressed as:

= EPS (1 - b)

wherein, b = retention ratio which denotes the percentage of earnings retained by a firm i.e not distributed as dividends.

Thus, a firm's earnings per share would always be higher than the dividend paid by it per share.

7 0
3 years ago
What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint v
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Strategic alliances are generally meant to increase the business strength. Most of the cooperative strategies aim at drawing upon the individual strengths of partners to be more competitive as a single unified unit.

There are a lot of  challenges in getting cooperative strategies to work as envisaged during the planning phases. When corporate companies seek cooperation strategies, the hindsight which comes is that most of them compete against each other).

Hence, it is  natural that such companies will seek to fulfill their interests first before considering the interests of their partnerships. Then, some companies seek cooperative partnerships with partners who are already having other collaborators.

It  also follows that such cooperation lacks commitment. There is also a lack of detailing the operational structure by which operational strategy will be a great success.

To know more about Strategic alliance here:

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5 0
2 years ago
If sales are $904,000 in 2019 and this represents a 13% increase over sales in 2018, what were sales in 2018?
Allisa [31]
<span>The sales in 2018 will be $800,000. Let the sales in 2018 be x and 13% increase shows 1.13x and the calculation will be done by dividing 904000 with 1.13 and the answer will be 800000. This is simple calculation as the question is showing that the sales in 2018 were less so that answer is also checked.</span>
3 0
3 years ago
Read 2 more answers
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