Answer:
The firm will pay 480 dollars each year as interest payment.
Explanation:
The interest amount is calculated by multiplying the rate of interest with the amount borrowed. In problem loan is 8,000 dollars and rate of interest is 6%, so the interest amount will be calculated as follow
Interest payment = 8,000 * 6% = 480 dollars
Answer:
Explanation:
The journal entries are shown below:
On Jan 1 - Cash A/c Dr $5,000,000
To Bonds Payable A/c $5,000,000,
(Being bond is issued)
On June 30 - Interest expense A/c Dr $150,000
To Cash A/c $150,000
(Being interest paid for cash)
On December 31, Bonds Payable A/c Dr $5,000,000
To Cash A/c $5,000,000
(Being payment of principal is recorded on the maturity date)
Answer:
$ 34
Explanation:
Overhead cost $3,600,000
Factory utilities $820,000
Machine hours $130,000
Overhead cost + Factory utilities/ Machine hours
($3,600,000 + $820,000) = $4,420,000
$4,420,000 /130,000 = $34
direct labor hours per hour= $34
The company overhead rate is $34
Answer:
The company must produce 8,270 life vests during the year.
Explanation:
Acording to the question we have the following data:
Beginning inventory = 630 life vests
Ending inventory = 2,700 life vests
Total sale of life vests = 6,200 life vests
Hence, Total life vests to be produced by the company during the year = Total sales of life vests + Ending inventory - Beginning inventory = 6,200+2,700-630 = 8,270 life vests.
Answer:
it promotes specialization by overcoming the problems with barter.
Explanation:
When economies are specialised workers focus on producing what they have competitive advantage in, and all other goods are purchased with the use of money. This increases economic efficiency and improves quality of products.
On the other hand the barter system involves exchange of goods between people. To get what I want I must provide the other person what they want. This promotes diversity of production with one person producing wide range of goods he does not have competitive advantage in.
So money increases economic efficiency.
