Answer:
$489,250
Explanation:
Market value of bonds and stock warrants
= ((500*1000*0.95)+(500*50))
= 475000+25000
= $500,000
Issue price bonds = 500000*1.03
= 515000
Carry value of bonds = ((500*1000*0.95)/500000)*515000
= (475000/500000)*515000
= $489,250
External failure is a cost that relates to all errors not detected and therefore not corrected upon delivery to the customer.
Answer:
These answer choices are correct:
a) Different companies use different charts of accounts based on individual company need.
The chart of accounts is the list of all the accounts that a company uses over a period of time. Because each company has a different economic and operating activity, each company's chart of accounts is unique.
b) The chart of accounts contains the balance of all of the accounts in a ledger
c) The chart of accounts should be ordered in a logical sequence based on type of account
The chart of accounts includes all the acounts of the ledger, and it also is organized following a logical sequence. Assets, Liabilities, Stockholders' Equity, and their corresponding subdivisions, is usually the order of organization.
Answer:
off-peak pricing
Explanation:
Off-peak pricing is defined as the type of pricing where there is a lower charge for services when there is less flow of customers. It provides an incentive to keep customers that patronise a business when there is less demand.
When there is a rush or higher demand the price can now go higher.
In the given scenario where commuters in New York install radio frequency identification (RFID) devices on their cars that can be read automatically as they approach a toll booth. Also New York authorities the opportunity to manage traffic flow by charging different toll amounts for different times of day.
This is an off-peak pricing system
Answer:
Notes payable is debited by $6,900, Interest expense is debited by $69 and cash is credited by $6,969
Explanation:
Interest = Principal Amount * Rate * Number of days / 360
Interest = $6,900 * 6% * 60/360
Interest = $69
Cash to be paid = Principal Amount + Interest
Cash to be paid = $6,900 + $69
Cash to be paid = $6,969
On the date of maturity, the journal entry to make the payment of note payable is:
Date Account Title and Explanation Debit Credit
June 11 Note payable $6,900
Interest expenses $69
Cash $6,969
(To record the payment of notes payable along with interest)