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3 years ago

Which one of the following stock index futures has a multiplier of $10 times the index value?

Business

1 answer:

stiv31 [10]3 years ago

7 0

Answer: b. Dow Jones Industrial Average

Explanation: The Dow Jones Industrial Average index futures has a multiplier of $10 times the index value which is used to calculate contract settlements and helps determine the dollar value of each point of price movement. For example, Dow multiplier is 10, meaning each Dow point is worth $10 per contract.

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On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconver

Rzqust [24]

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

Cr Bonds payable 3,840,000

Cr Premium on bonds payable 138,240

Cr Additional paid in capital - warrants 15,360

5 0

3 years ago

An email message that appears legitimate arrives in your inbox from your bank and asks you to click on a link in the message and

Whitepunk [10]

The answer is Phishing attack

6 0

3 years ago

Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs

Kay [80]

Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue 39,500

variable cost of goods sold (25,500)

variable selling expenses <u> (16,500) </u>

Contribution (2,500)

<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.

3 0

3 years ago

special - time order for 15,000 bird feeders at $ 3,50 per unit Bluebird currently produces and sells . This level represents 80

schepotkina [342]

Answer:

$15,000 Increase

Explanation:

Calculation to determine what the effect on net income will be :

Effect on net income = (15,000 x $3.50) – ($2.50x 15,000)

Effect on net income = $52,500-$37,500

Effect on net income = $15,000 Increase

Therefore If Bluebird accepts this additional business , the effect on net income will be :$15,000 Increase

5 0

3 years ago

Wu Production Company, which uses activity-based budgeting, is in the process of preparing a manufacturing overhead budget. Whic

creativ13 [48]

Answer:

Option which would likely appear on that budget will be:

Batch level costs: production setup.

Explanation:

Here the company uses activity based budgeting is a management accounting tool which new year budget is only seen by not considering the previous year records.

Activity based budgeting which is a budgeting method in which firstly the overhead costs are being calculated and the the budgets gets created.

Batch-level cost is a cost which is not associated with any given specific individual units but is associated with a group of units.

For example, to set up a production run the cost incurred is associated with the batch of goods that are produced subsequently.

Another example can be be procurement costs. The expenses associated with the procurement costs include the ordering of direct materials, paying suppliers and receiving goods.

Since all of the expenses are related to the orders placed numbers, they must be allocated not to an individual product but to group of unit.

6 0

3 years ago