Answer:
Dividend Declared (SCE) $4,500 (credit)
Shareholders for Dividends (SFP) $4,500 (credit)
Explanation:
When Dividends are declared, we recognize an Equity Element - Dividend Declared and a liability (Present Obligation that arises with declaration) to the Shareholders of the dividend.
<u>Entry :</u>
Dividend Declared (SCE) $4,500 (credit)
Shareholders for Dividends (SFP) $4,500 (credit)
Dividend Calculation = 1,500 × $50 × 6%
= $4,500
Answer:
1. $5.62
2. $15,174
Explanation:
1. The computation of the cost of one unit of product under variable costing is shown below:-
Total product cost = Direct material + Direct labor + Variable overhead
= $123,000 + $93,000 + $65,000
= $281,000
Unit product cost = Total product cost ÷ Produced units
= $281,000 ÷ $50,000
= $5.62
2. The computation of cost of ending inventory under variable costing is shown below:-
Unsold at end = Unit produced - Unit sold
= 50,000 - 47,300
= 2,700
Cost of ending inventory = Number of units sold × Unit product cost
= $5.62 × 2,700
= $15,174
Answer:
3.60
Explanation:
Given that,
Sales units = 1,000
Sales price per unit = $60
Variable expenses = 40% of the selling price
Total Fixed cost = $26,000
Contribution margin per unit:
= Selling price - Variable cost
= $60 - ($60 × 40%)
= $60 - $24
= $36
Total contribution:
= Contribution margin per unit × Sales units
= $36 × 1,000
= $36,000
Profit = Total contribution - Fixed cost
= $36,000 - $26,000
= $10,000
Degree of operating leverage:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)
= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)
= 36,000 ÷ 10,000
= 3.60
Cds are time deposits that you can close before the term ends but might pay early penalty for withdrawing early. Cds vary with the financial institution. I would say a savings account
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
