Without the cost concept, accounting reports would become unstable and unreliable.

Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a f

levacccp [35]

Answer:

A. 6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $1,021.16

Future value or Face value = $1,000

PMT = 1,000 × 7% ÷ 2 = $35

NPER = 13 years × 2 = 26 years

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after solving this, the pretax cost of debt is 6.75% (3.38% × 2)

5 0

3 years ago

A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming s

Artemon [7]

A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming sales meeting is using Coercion type of political behavior.

<h3>What is Coercion behaviour?</h3>

Coercion is the use of threats, especially physical threats, to induce an unwilling action from a party.
It entails a series of coercive behaviors that go against an individual's free will in an effort to elicit the desired response.
Extortion, blackmail, or even torture and sexual assault are examples of these activities.
Coercion occurs when someone is threatened with violence if they refuse to sign a contract.

Elements of Coercive Practices Proof

Damaging, endangering, or threatening to harm.

Both directly and indirectly.

Any party or that party's property.

Unfairly sway a party's course of action.

Learn more about coercion here:

brainly.com/question/14292154

#SPJ4

5 0

2 years ago

On January 1, 2020, Blue Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,300,000. At the time, the book

Len [333]

Answer:

$4,465,400

Explanation:

The investment in Elton in 2020 $1,300,000

share of 2020 net income(10%*$690,000) $69,000

ending balance of investment in 2020 $1,369,000

Share of net income 6/30/21 ($480,000*10%) $48,000

ending balance of investment 6/30/21 $1,417,000

Acquisition of investment 7/1/2021 $2,920,000

Total amount of investment $4,337,000

share of net income 12/31/2021($800,000*30%) $240,000

Dividends received(48,000+24,000)*$1.55 ($111,600)

balance of investment in Elton John Corp $4,465,400

In computing the above value,at each point in time the share of Blue Co from net income earned by Elton john corp is added while any dividends received in cash is deducted.

8 0

3 years ago

On January 1, 20X8, L Corporation acquired all of the common stock of S Company for $300,000. On that date, S Company's identifi

dimaraw [331]

Answer:

b. 50,000

Explanation:

According to the given situation, the computation of impairment loss is shown below:-

The Amount of impairment loss to be recognized at December 31, 20X8 is

= Net assets - Fair value of reporting unit

= $310,000 - $260,000

= $50,000

Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.

3 0

3 years ago

On March 31, 2018, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The comp

AVprozaik [17]

Answer:

1)

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2)

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3)

Dr Interest expense 600

Cr Accrued interest 600

4)

Dr Supplies expense 1,960

Cr Supplies 1,960

5)

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6)

Dr Income tax expense 2,600

Cr Income tax payable 2,600

Explanation:

March 31, 2018

Prepaid insurance $14,740 - 3,618

Supplies 2,900 - 1,960

Equipment 22,100

Accumulated depreciation-equipment 5,680 + 1,226

Unearned revenue 9,730 - 6,487

interest payable 600

Income tax payable 2,600

Loan payable, due 2020 20,000

Rent revenue 30,900 + 6,487

Salaries expense 14,500

depreciation expense 1,226

interest expense 600

Supplies expense 1,960

Insurance expense 3,618

Income tax expense 2,600

1. The equipment, which was purchased on January 1, 2017, is estimated to have a useful life of four years. The company uses straight-line depreciation.

depreciation per year = $22,100 / 4 = $5,525

depreciation expense up to March 31, 2018:

$5,525 x 1.25 = $6,906.25 ≈ $6,906

adjustment entry = $6,906 - $5,680 = $1,226

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2. One third of the unearned revenue related to rent is still unearned at the end of the quarter.

adjusting entry = 9,730 - (9,730 x 1/3) = $6,486.67 ≈ $6,487

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2018.

interest per month = $20,000 x 6% x 1/12 = $600

Dr Interest expense 600

Cr Accrued interest 600

4. Supplies on hand total $940 at March 31.

adjusting entry = $2,900 - $940 = $1,960

Dr Supplies expense 1,960

Cr Supplies 1,960

5. The one-year insurance policy was purchased for $14,740 on January 1.

insurance expense per quarter = $14,470 x 3/12 = $3,617.50 ≈ $3,618

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6. Income tax is estimated to be $2,600 for the quarter.

Prepare the quarterly adjusting entries required at March 31.

Dr Income tax expense 2,600

Cr Income tax payable 2,600

8 0

4 years ago