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Olegator [25]
3 years ago
10

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of

Business
1 answer:
borishaifa [10]3 years ago
8 0

Answer:

c. interest paid over the life of the bond minus the amount of premium at sale  

point.

Explanation:

when bonds are issued at premium the total interest cost of the bonds over the life of the bonds is equal to the amount of interest paid over the life of the bond minus the amount of premium at sale point.

From below journal entry you can see that, When interest payment is made cash is credited full amount but interest is debited after deducting amortised premium.

Journal entry if bonds are issued at premium

cash                                                            xx

    Bonds Payable                                      xx

     Premium on bonds payable

                                                                                  xx

Interest Expense                                         xx

Preminum on bonds payable                     xx

     cash                                                                       xx

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Undifferentiated Marketing, Multi-Segment Targeting, Focus Targeting, and Customized Marketing.

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5 0
3 years ago
Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of region
Elina [12.6K]

Answer:

a. <u>Labor variances for 14 PT staff: </u>

Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)

= ($50 - $52) x 1.40 x 2,604

= $7291.20 (Unfavorable)

Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate

= [(1.20 * 2,604) - (1.40 * 2,604)] * $50

= [3,124.80 - 3,645.60] * $50

= $26,040 (Unfavorable)

Labor Cost variance = Labor rate variance + Labor efficiency variance

= $7,291.20 (Unfavorable) + $ 26,040 (Unfavorable)

= $33,331.20 (Unfavorable)

<u>Labor variances for 10 SD staff</u>:

Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)

= ($45 - $47) * 1.20 * 1,600

= $3840 (Unfavorable)

Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate

= (1.40*1,600) – (1.20*1,600)]*$45

= [2,240 – 1,920] * $45

= $14,400 (Favorable)

Labor Cost variance = Labor rate variance + Labor efficiency variance

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5 0
3 years ago
Park &amp; Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The
KengaRu [80]

Answer:

a) $14,600.

Explanation:

The computation of the company total assets are shown below:

= Cash balance + supplies balance + equipment balance

where,

Cash balance =  investment amount + borrowed amount - paid amount for equipment

= $6,200 + $3,200 - $2,120

= $7,280

And, the other item values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $7,280 + $1,120 + $6,200

= $14,600

4 0
3 years ago
Use the information below to answer questions 4-7. Drake Company's income statement for the most recent year appears below:
Colt1911 [192]

Answer:

(A) $731,250

Explanation:

The formula to compute the break-even point in sales dollars is shown below:

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6 0
3 years ago
“A business organization requires both long term and short term capital which can
Anna007 [38]
The example of ownership capital is : Shares

Shares determine that you have a part of percentage of the company (you will also get part of its income)

Example of Borrowed capital is : Leasing.
Leasing is a rental agreement in which you can borrow goods that you can use for your production process

hope this helps
5 0
3 years ago
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