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Zolol [24]
3 years ago
6

During 2021, Terps Company issued 800,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitte

d at the time of any future purchase. The company estimates that 70% of the coupons will be redeemed. 350,000 coupons had been processed during 2021. The company recognizes coupon expense in the period coupons are issued. At December 31, 2021, the company should report a liability for unredeemed coupons of:
Business
1 answer:
11Alexandr11 [23.1K]3 years ago
5 0

Answer:

$1,050,000

Explanation:

Calculation to determine what the company should report as a liability for unredeemed coupons

Liability for unredeemed coupons =($800,000 x 0.70 ) - $350,000 ) x $5.00

Liability for unredeemed coupons=($560,000-$350,000)×$5.00

Liability for unredeemed coupons=$210,000x $5.00

Liability for unredeemed coupons=$1,050,000

Therefore At December 31, 2021, the company should report a liability for unredeemed coupons of:$1,050,000

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Candice tells Yuri that she wants to hear his ideas about the Q4 Finance Report, and Yuri says that they should compare it to la
Sloan [31]

c.

Arrogantly

Explanation:

What Candice is saying here basically boils down to 'we don't need to compare this to last year's performance as I want to see positive results not negatives'<u> insinuating that the performance has become worse in the last year.</u>

<u>Regressions in a financial report mean weaker performance over the fiscal year while projections mean that the performance was better.</u>

4 0
3 years ago
On February 22, Brett Corporation acquired 250 shares of its $3 par value common stock for $26 each. On March 15, the company re
Alex

Answer: Credit Additional Paid in Capital $198

Explanation:

Brett Corporation reissued the Treasury Stock at $29 which was $3 higher than the amount they had repurchased it for.

When stock is sold for a price higher or lower than they are worth, the balance goes to the Additional Paid-in Capital account. If it is sold higher, the balance is Credited to the Additional Paid-in Capital account and if it is sold for lower than it is worth, it is debited.

The Balance here is,

= $3 * 66 resold shares

= $198

This $198 will therefore be credited to the Additional Paid-in Capital account.

5 0
3 years ago
The capital projects fund of Hood River completed construction of an addition to its city hall at a cost of $4,000,000. The city
Vanyuwa [196]

The capital projects fund account for the 10 percent retainage as (B) II only.

<h3>What is retainage?</h3>
  • Retainage is a percentage of the agreed-upon contract price withheld until the work is substantially completed to ensure that the contractor or subcontractor will fulfill its responsibilities and complete a construction project.
  • Retention is money kept back by one party in a contract as security for unfinished or defective work.
  • Assume the contract is worth $20,000 and you're submitting a paid app after finishing 25% of the work.
  • So you earned $5,000 during the pay period, but retainage is 5%. The current progress payment has been reduced by $250.
  • As a result, the "Amount Due for this Request" will be $4,750.

So, in the given situation the capital projects fund account for the 10 percent retainage as (II) the credit for $400,000 to Contracts Payable-Retained Percentage, that is (B) II only.

Therefore, the capital projects fund account for the 10 percent retainage as (B) II only.

Know more about retainage here:

brainly.com/question/24101126

#SPJ4

The correct question is given below:
The capital projects fund of Hood River completed the construction of an addition to its city hall at a cost of $4,000,000. The city council approved payment of the amount due to the general contractor, less a 10 percent retainage. How should the capital projects fund account for the 10 percent retainage?

I. As a credit of $400,000 to Deferred Revenue-Retained Percentage

II. As the credit for $400,000 to Contracts Payable-Retained Percentage.

A. I only

B. II only

C. Either I or II

D. Neither I nor II

3 0
1 year ago
firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each
Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

                                              Common               Bonds

                                                  Stock

Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

Total market value             $4,000,000   $2,400,000

Total value of debt and equity = $6,400,000

Weight                                      62.5%                37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
2 years ago
During world war i the u.s. military developed the _____ to screen millions of recruits.
hichkok12 [17]
Army Alpha and Army Beta Test
7 0
3 years ago
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