What is your biggest fear in this world?

On June 30, 2021, Moran Corporation issued $9.0 million of its 8% bonds for $8.1 million. The bonds were priced to yield 10%. Th

Mrac [35]

Answer:

$45,000

Explanation:

Calculation to determine by how much should the bond discount be reduced for the six months ended December 31, 202

First step

Semiannual interest paid on 31.12.2021 = $9,000,000*8%*6/12

Semiannual interest paid on 31.12.2021= $360,000

Second step

Effective interest expense on 31.12.2021 = $8,100,000 * 10% * 6/12

Effective interest expense on 31.12.2021= $405,000

Last step

Bond discount to be reduced for 6 months ended 31.12.2021 = $405,000 - $360,000

Bond discount to be reduced for 6 months ended 31.12.2021=$45,000

Therefore by how much should the bond discount be reduced for the six months ended December 31, 202 will be $45,000

7 0

3 years ago

Arness Woodcrafters sells $250,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a fi

8_murik_8 [283]

Answer:

The Journal entry is as follows:

Cash A/c Dr. $2,27,500

Loss on sale of Receivables A/c Dr. $20,500

Due from Commercial Factor A/c Dr. $10,000

To Recourse liability $8,000

To Accounts Receivable $2,50,000

(To record the sale)

Working notes:

Cash received :

= $250000 - Finance Charge - Amount retained (Due from factor)

= $250000 - 5% of 250000 - 4% of 250000 = 250000 - 12500 - 10000

= $2,27,000

Loss on sale of receivables :

= ($250000 × 5%) + Recourse obligation (as the factoring is with recourse)

= $12500 + 8000

= $20,800

7 0

3 years ago

Purchasing power parity (ppp) is considered an __________ measurement poverty levels

Nastasia [14]

Purchasing power parity (ppp) is considered an objective measurement poverty levels.

Purchasing power parity:

By removing the variations in price levels between nations, purchasing power parities (PPPs) are rates of currency translation that aim to equalize the purchasing power of various currencies.
monetary and developmental. Timothy Callen the rate at which the equivalent amount of goods and services might be purchased in one country using the currency of the other at a certain exchange rate.
By taking the geometric mean of the pricing relationships between each pair of economies for the two varieties of rice, the basic-heading PPP for each pair of economies may be calculated directly. This comparison is bilateral.
China, despite still being a developing country, is thought to have the greatest PPP in the entire world. This is due to the country's economy being the largest in the world, despite the fact that the bulk of its population earn extremely low wages.

Learn more about Purchasing power parity here

brainly.com/question/14635386

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7 0

2 years ago

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summ

gavmur [86]

Answer:

A) It is a use of cash, and will be shown in the investing section as a subtraction.

B) Depreciation Expense

C) Chester’s long-term debt will rise by $10,000,000

D) Broad differentiation

E) Andrews ROE will increase.

Explanation:

A) As the company will do a cash dibursement will be considered cash use and because is investing on it to increase future cash flow

B) A period cost is a cost which cannot be capitalized into an asset. As cost which occur as the time passes over the years Which is the case for depreciation expense

C) bonds payable for 10,000,000 will be recorded

the leverage is a ratio to analize the firm it does not influence the accounting

D) The company differenciate his products from the rest of their competitors in a great variety of products rather than a single buyer segment.

E) ROE will increase as the leverage makes the debt weight increase while the equity weight (proportion of the company owned by the stockholders)

For the rest ofthe options the information provided is insufficient please do another question with the information

8 0

3 years ago

The following information is available for Wonderway, Inc., for 2015:

Temka [501]

Answer: See explanation

Explanation:

a. Calculate the direct labor cost for Wonderway.

This will be the wages paid to laborers which is $84,000.

b. Calculate the manufacturing overhead cost for Wonderway.

Factory rent = $29,600

Add: Indirect production labor = $1,860

Add: Utilities for factory = $30,100

Add: Production supervisor's salary = $30,800

Add: Factory insurance = $12,200

Add: Depreciation on factory equipment = $26,600

Manufacturing overhead cost = $131160.

c. Calculate the prime cost for Wonderway.

Direct materials used = $36,200

Add: Wages = $84,000

Prime cost = $36200 + $84000 = $120200

d. Calculate the conversion cost for Wonderway.

Wages paid to laborers = $84,000

Add: Manufacturing overhead = $131160

Conversion cost = $215160

e. Calculate the total manufacturing cost for Wonderway.

Direct materials used = $36,200

Add: Wages paid to laborers = $84,000

Add: Manufacturing overhead = $131160

Total manufacturing cost = $251360

f. Calculate the period expenses for Wonderway.

Company advertising = $20,700

President's salary = $62,000

Add: Depreciation= $8,180

Add: Sales commissions = $7,700

Period cost = $98580

8 0

3 years ago