Answer:
1. $24,300
2. 12
3. the bond is trading at a discount.
4. $470,090.86
5. <u>Journal Entry</u>
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
Explanation:
<u>1. seml-annual Interest payment</u>
Seml-annual Interest payment = ($540,000 × 9 %) ÷ 2
= $24,300
<u>2. Number of seml-annual Interest payment</u>
Number of seml-annual Interest payment = 6 years × 2
= 12
<u>3. Issue</u>
The annual market rate for the bonds (YTM) , 12% is greater than the coupon rate of the bond 9%.
The Price will be less than the par value and we say that the bond is trading at a discount.
<u>4. Computation of the Issue Price, PV</u>
PMT = $24,300
n = 12
YTM = 12 %
FV = $540,000
p/yr = 2
PV = ?
Using a Financial Calculator, the Issue Price, PV is $470,090.86
<u>5. Journal Entry</u>
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
Answer: 4 containers
Explanation:
The formula used to get the number of containers that are needed will be:
N = DT(1+X)/C
where,
N = total containers
D = planned usage rate used by the work center = 111 parts per hour
T = average waiting time = 100 minutes = 100/60 hours = 1.67 hours
X = inefficiency factor = 0.21
C = capacity of standard container = 5 dozens = 5 × 12 = 60 parts
N = DT(1+X)/C
N = (111 × 1.67)(1 + 0.21)/60
N = (185.37 × 1.21)/60
N = 224.2977/60
N = 3.738
N = 4 approximately
4 containers will be needed
Answer:
c. Sales budget, budgeted income statement, budgeted balance sheet
Explanation:
First, we calculate the sales for the period. It would also calculatethe cash proceeds from sales, which will be useful for the balance sheet.
With that, we can plug sales revenue into the income statement and calcualte the net income.
And with the income statement, we can solve for retained earnings and build up the balance sheet. Among other data
Doing it in any other order, we are going to leave blanks and need to do the next one to fill them. In the proposed orde,r we do not need information from the subsequent budget to complete the previous one, which is good.
Answer:
$1,756,600.
Explanation:
P2 Jasper Company
Budgeted cash Receipt
For the 2nd quarter
April May June
Accounts Receivable $400,000
70% in the month of Sale $367,500 $374,500 $392,000
30% in the month after Sale $110,250 $112,350
Budgeted cash receipt $767,500 $484,750 $504,350
Total budgeted cash receipt for the 2nd quarter = $767,500 + $484,750 + $504,350 = $1,756,600.
30% in the month after sale means 30% amount will be received in the following month.
