Answer:
A) The issuance of bonds on December 31, 2016.
Dr Cash 104,031
Cr Bonds payable 96,000
Cr Premium on bonds payable 8,031
B) The first interest payment on June 30, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
C) The second interest payment on December 31, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
Answer:
The correct response will be "Paying a premium price
".
Explanation:
- Each consumption has the fundamental economic intention of obtaining products that have the highest possible and the limit requirements at the lowest competitive prices.
- And therefore, satisfied customers frequently ignore that instinct because some other manufacturer is still connected to something like the commodity.
0.08x+0.057 (6000-x)=472.5
Solve for x
X=4500 invested at 8%
Answer:
The correct answer is letter "C": to raise competition among firms in the cartel.
Explanation:
A cartel is a group of companies or countries working together to regulate the price of a single product they produce in common. The cartel makes it impossible for a foreign business to enter the market and demand lower prices. Cartels are, in most cases, not helpful to customers. They generate high prices that remain unchanged until consumers find alternative ways to purchase the same items.
Under such a scenario,<em> cartels are unlikely to be formed to generate more competition among the companies that compose them.</em>
Answer:
Entry to record adjustment:
COGS Dr $9.4m
Inventory Cr $9.4m
Explanation:
The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.
The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:
Entry:
COGS Dr $9.4m
Inventory Cr $9.4m
