Answer:
Dr. Cr.
February 1, 2020
Cash $26,700
Bond Premium $9,700
Bond Payable $17,000
Explanation:
Any amount paid / received over the face value of the bond is called premium of bond. It is due to that the stated interest rate of bond is higher than the market rate.
Face value of bond = 3,400 x $5 = $17,000
Premium on bond = $26,700 - $17,000 = $9,700
Cash received will be debited to cash account. Bond payable is a liabilities. Bond premium is also a liability account which will amortize over the bond life and reduce the interest payable amount of each period.
The first step is<span> defining the problem and research objectives.</span>
Answer:
The annuity is worth $4100.20 today and if we increase the rate of return, from 7% to 8% the value of the annuity falls to $3992.71.
Explanation:
The step by step solution for the given problem is attached with the image.
The value of annuity will decrease if we increase the rate of return, from 7% to 8%. Future cash flows are discounted using the rate of return, and the higher the discount rate, the lower the present value of the future cash flows.
Answer:
See below
Explanation:
With regards to the above, first we need to compute the fixed manufacturing overhead.
Fixed manufacturing overhead
= Total fixed manufacturing overhead ÷ Total machine hours
= $344,000 ÷ 40,000
= $8.6 per machine hour
Calculation of overhead applied to Job M759
Variable manufacturing overhead
= 60 machine hours × $3.9
= $234
Fixed manufacturing overhead
= 60 machine hours × $8.6
= $516
Therefore, total overhead applied to job M759 is $750
A debtor<span> is someone who owes a financial obligation (a “debt”) to another, known as the </span>creditor<span>. An example of a </span>debtor-creditor relationship<span> is where a bank lends money to an individual or company, on the basis that the money has to be paid back at some point to the bank</span>
