9. Physical and mental examinations:

On January 1, 2019, French Company issued $74,000 of five-year, 8% bonds when the market interest rate was 12%. The issue pr

-BARSIC- [3]

Answer:

The interest expense will be recorded when the first interest payment is made $3720

Explanation:

Interest expense = issue price x market rate x n/12

= 62000 x 12 x 6/12

= $3720

7 0

3 years ago

Consider the following five situations. In which situation would a borrower be best off and in which situation would a lender be

umka2103 [35]

Answer:

The borrower is best off in situation "a" and the lender is best off in situation ▼ "C" .

Explanation:

Considering all the situations given in the options, the borrower is best in situation a and lender is best off in situation in c.

Part a

Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, borrower is best off when the inflation rate is very high.

Part c

Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, lender is best off when inflation rate is lowest.

5 0

3 years ago

Landmark Corp. buys $300,000 of Schroeter Company's 8% five-year bonds payable at par value on September 1. Interest payments ar

yawa3891 [41]

Answer: A debit to Long-Term Investments-HTM $300,000

Explanation:

A journal entry is the act of making records of the transactions that takes place and such transactions typically shows the debit and credit balance of the company.

From the question, we are informed that Landmark Corp. buys $300,000 of Schroeter Company's 8% five-year bonds payable at par value on September 1. Interest payments are made semiannually and that Landmark plans to hold the bonds for the five year life.

The journal entry to record the purchase should include a debit to Long-Term Investments-HTM $300,000.

5 0

3 years ago

Direct materials $ 37 per unit Fixed manufacturing overhead costs $ 225,000 Sales price $ 195 per unit Variable manufacturing ov

mina [271]

Answer:

A.Gross Margin $385,550

B. Contribution margin $566,500

Explanation:

a. Preparation of a gross margin income statement

Gross margin income statement

Sales 1,072,500

(5500*$ 195 per unit)

Less Variable expenses:

Direct Material 198,000

(5500*36)

Direct Labour 143,000

(5500*26)

Variable manufacturing overhead 121,000

(5500*22)

Fixed Manufacturing overhead 224,950

(5500*40.90)

(225,000/5500=40.90)

Gross Margin $385,550

Therefore Gross Margin will be $385,550

b. Preparation of a contribution margin income statement.

Contribution margin income statement

Sales 1,072,500

(5500*$ 195 per unit)

Less cost of goods sold:

Direct Material 198,000

(5500*36)

Direct Labour 143,000

(5500*26)

Variable manufacturing overhead 121,000

(5500*22)

Variable Marketing and administrative cost 44,000

(5500*8)

Contribution margin $566,500

Therefore Contribution margin will be $566,500

6 0

3 years ago

Marcus is considering which college major to choose. In taking a rational approach, Marcus should consider

harkovskaia [24]

Answer:

Science or physics.

Explanation:

You didn't give us the choices

8 0

2 years ago