7. Connor has identified the need to make changes in the efficiency of his customer service

Marin Inc. issues $263,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 201

lapo4ka [179]

Answer:

Explanation:

The journal entry is shown below:

On March 1, 2017:

Cash A/c Dr $257,740 ($263,000 × 98%)

Discount on issue of bonds A/c $5,260 ($263,000 × 2%)

To Bonds payable A/c $263,000

(Being the sale of bonds is recorded)

While recording the sale of bonds we debited the cash account and the discount on issue of bonds and credited the bonds payable account

7 0

4 years ago

Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stat

Nadya [2.5K]

The coupon rate must be set at 9.77%

The after-tax return on the bonds is:

= Annual payment rate * ( 1 - tax rate)

= 8.1% * ( 1 - 40%)

= 4.86%

The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:

= 4.86% + 1%

= 5.86%

If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:

= After tax yield / ( 1 - tax rate)

= 5.86% / ( 1 - 40%)

= 9.77%

<em>More on this type of question can be found at brainly.com/question/17126608</em>

8 0

3 years ago

The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is?

mrs_skeptik [129]

An externality is the benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service.

Externalities can either be positive or negative;

Positive externalities occur when there is a positive gain on both the private level and social level.

Negative externalities occur when the social costs outweigh the private costs. For example in cases of pollution where an industry may decide to cut costs and increase profits by implementing new operations that are more harmful to the environment.

brainly.com/question/28504330

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6 0

1 year ago

What is the maximum amount you would pay for an asset that generates an income of $ 250,000 at the end of each of five years if

Galina-37 [17]

Answer:

170,146

Explanation:

$250,000 / (1.08)5= 170,146

3 0

3 years ago

Tomey Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and compute

Bogdan [553]

Answer:

a. $5,604

Explanation:

Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)

= $99,000 + ($2.10 per machine-hour × 18,000 machine-hours)

= $99,000 +$37,800 = $136,800

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred

= $136,800 ÷ 18,000 machine-hours

= $7.60 per machine-hour

Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job

= $7.60 per machine-hour × 90 machine-hours

= $684

Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)

= $70,400 + ($3.70 per direct labor-hour × 8,000 direct labor-hours)

= $70,400 + $29,600 = $100,000

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred

= $100,000 ÷8,000 direct labor-hours = $12.50 per direct labor-hour

Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job

= $12.50 per direct labor-hour × 60 direct labor-hours

= $750

Forming Finishing Total

Direct materials........................$940 $350 $1,290

Direct labor...............................$960 $1,920 $2,880

Manufacturing overhead.......$684 $750 $1,434

Total cost of Job T617........................................................$5,604

4 0

3 years ago