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3 years ago

A company set up a petty cash fund with $800. The disbursements are as follows:

Business

1 answer:

kkurt [141]3 years ago

3 0

Answer:

The correct option is B,cash at bank.

Explanation:

In creating the fund,cash of $800 needs to made available to the petty cash account.

In order to achieve this,the cash is moved from the cash at bank to petty cash which effectively means that the cash at bank the giving account should be credited while the receiving account,the petty cash account is debited.

Option B is correct since it is the account meant to be credited in order that the petty cash fund account can be created

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A way of buying, in which you can purchase goods or services and pay later, is called:

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A credit Xdxdxxdxdxdxd

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3 years ago

If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the b

Llana [10]

Answer:

Explanation:

the face value of the bonds will the value at which bonds payable account enter the accounting. Then, there is a discount which decrease the net value of the bonds:

Bonds Payable 150,000 credit

Discount on bonds 15,000 debit

When the bonds are converted, we will write-off these account against common stock and additional paid-in

To wirte-off the account we need to post them in the other side so we got:

Bonds payable debit 150,000 debit

Discount on bonds 15,000 credit

Common Stock xx credit

Additional paid.in xx credit

These makes option C correct

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3 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

Fantom [35]

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075] + 1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

3 0

2 years ago

Jacob needed money for some unexpected expenses, so he borrowed $5,890.25 from a friend and agreed to repay the loan in seven eq

Anna11 [10]

Answer:

OPTION C i.e 11%

Option A i.e 30.55 year

Explanation:

we know that capital can be calculated as

$Capital = EMI \times PVIFA$

$capital = EMI \times \frac{(1+r))^n -1}{r (1+r)^n}$

from the data given in question we can calculate the value of r

$5890.2 = 1250 \times \frac{(1+r))^7 -1}{r (1+r)^7}$

$4.7122 = \frac{(1+r))^7 -1}{r (1+r)^7}$

solving for r we get

r = 11%

option C

we know that

$Total\ saving = cash flow \times FVIFA$

$= Cash\ flow \times \frac{(1+r)^n -1}{r}$

from the data given we can evealueate the value of n

$8,452,622 = 40,000 \times \frac{(1.11)^n -1}{0.11}$

$\frac{8452622}{40000}\times 0.11 = (1.11)^n -1$

solving for n we get

n = 30.55 year.

Option A

4 0

3 years ago

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 36,100

salantis [7]

Answer:

1) Direct materials=$43070

2)Direct labor=$126300

3)Manufacture overhead=$117600

4)Total manufacturing cost=$286970

5)Prime cost=$169370

6)Conversion costs = 126300+117600= $243900

7)Total period cost= $418670

Explanation:

The company reported the following costs for 2018:

1) Direct materials

Thread 1,020

Premium quality cotton material 41,300

Buttons 750

Total= $43070

2)Direct labor

Wages paid to seamstresses 76,200

Wages paid to cutters 50,100

Total= $126300

3) Manufacture overhead

Factory rent $ 36,100

Utilities for factory 24,600

Cutting room supervisor's salary 31,300

Factory insurance 19,100

Depreciation on sewing machines 6,500

Total= $117600

Notice that marketing, Depreciation on salespersons' vehicles and president's salary are not part of manufacturing overhead.

4)Total manufacturing cost=$43070+126300+117600=$286970

5)Prime cost= direct material + direct labor=43070+126300=$169370

6)Conversion costs = Direct labor + Manufacturing overhead= 126300+117600= $243900

7)Total period cost= manufacturing cost + Company advertising + Depreciation on salespersons' vehicles + President’s salary

Total period cost= 286970 + 24200 + 30600 + 76900= $418670

7 0

3 years ago