What is the budgeted cost of goods sold given the following for next budget
1 answer:
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Complete Question:
PB10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5]
Tiger Company completed the following transactions. The annual accounting period ends December 31.
Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.) Jan.
27 Paid for the January 3 purchase.
Apr. 1 Received $80,000 from Atlantic Bank after signing a 12-month, 5 percent promissory note.
June 13 Purchased merchandise on account at a cost of $8,000.
July 25 Paid for the June 13 purchase.
July 31 Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $8,000.
Dec. 31 Determined wages of $12,000 were earned but not yet paid on December 31 (Ignore payroll taxes).
Dec. 31 Adjusted the accounts at year-end, relating to interest.
Dec. 31 Adjusted the accounts at year-end, relating to rent.
Required:
1. & 2. Prepare journal entries for each of the transactions through August 1 and any adjusting entries required on December 31.
3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31.
Answer:
Prepared journal Entries for Questions 1, 2 and 3 are attached as images in this order
1 Journal Entry Worksheet 1 (image 1)
2 Journal Entry Worksheet 1 (image 2)
3 Journal Entry Balance sheet 1 (image 3)
Answer:
7.84%
Explanation:
Given:
Bond's par value (FV) = $1,000
Maturity (nper) = 25 × 2 = 50 periods (since it's semi-annual)
YTM (rate) = 0.0925÷2 = 0.04625 semi annually
Price of bond (PV) = $875
Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)
PV is negative as it's a cash outflow.
So semi- annual coupon payment is $39.20
Annual coupon payment = 39.2×2 = $78.40
Nominal Coupon rate = Annual coupon payment ÷ Par value
= 78.4 ÷ 1000
= 0.0784 or 7.84%
