Answer:
a. Premium
b. Discount
c. Discount
Explanation:
a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium
Therefore, Valley's bond will sell at a premium.
b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, Spring's bond will sell at a discount.
c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, River Inc.'s bond will sell at a discount.
Answer:
The managerial accountant found out that the cost of the units previously sold was higher than the selling price per unit.
If the variance is unfavorable, it means that the total budgeted costs were larger than the total budgeted revenue. In this case the variance was $5,600 unfavorable. We are not told how many units were sold but it is obviously a mistake to sell products at a lower price than COGS. So the previous flexible budget was not properly prepared.
Answer:
H. J. HEINZ COMPANY
Partial Balance Sheet
For the month ended April 30, 2017
Assets
<u>Current assets</u>
Cash $373,145
Accounts receivable $1,171,797
Inventory $1,237,613
Prepaid insurance <u>$125,765
</u>
Total current assets <u> $2,908,320</u> A
<u>Property, plant, and equipment</u>
Land $76,193
Buildings $4,033,369
Less: Accumulated depreciation <u>$2,131,260</u> <u>$1,902,109</u>
<u>$1,978,302</u> B
<u>Intangible assets</u>
Goodwill $3,982,954
Trademarks <u>$757,907 </u>
<u>$4,740,861 </u>C
Total assets (A+B+C) $9,627,483
Insurance is a financial service that allows a consumer to share liability with a company.
The answer is C
Answer:
If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .
Explanation:
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