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podryga [215]
3 years ago
8

On January 1, Year 1, Worthy Co. issued $1,000,000 of bonds payable. The bonds mature in five years on December 31, Year 5, and

pay 9% interest once a year on December 31. The issue sold for $891,857 to yield 12%. Worthy uses the effective interest method. What is the amount of the liability at December 31, Year 2, after the second interest payment?
a. $1,000,000
b. $931,590
c. $908,880
Business
1 answer:
Serggg [28]3 years ago
5 0

Answer:

$927,946

Explanation:

journal entry to record bond issuance:

Dr Cash 891,857

Dr Discount on bonds payable 108,143

    Cr Bonds payable 108,143

amortization of bond discount = ($891,857 x 12%) - $90,000 = $17,023

bond's carrying value at the end of year 1 = $908,880

amortization of bond discount = ($908,880 x 12%) - $90,000 = $19,066

bond's carrying value at the end of year 1 = $927,946

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ryzh [129]

Answer:

correct answer is Sadvertising

Explanation:

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nowadays emotional advertising become popular in the recent year,  

many firms work for creating strong emotional ties about their product

they think ad. with emotional reaction is viewed  more likely to be shared  

so here the correct answer is Sadvertising

5 0
3 years ago
The current futa tax rate is 0.8%, and the suta tax rate is 5.4%. both taxes are applied to the first $7,100 of an employee's pa
Goryan [66]
The given values in the problem are enumerated below:
futa tax rate = 0.8%
suta tax rate = 5.4 %
Employee's fee = $7,100
Amount taxes = $7100 *(0.008+0.054)= $440.2

When an employee earned total wages of $9100, we can solve the unknown:
Employee's wages =  $9100 + $440.2
Employee's wages = $ 9540.2

3 0
3 years ago
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at
balandron [24]

Answer:

Transactions Units Unit Cost

a. Inventory, Beginning 300 $ 14

b. Purchase, April 11 950 12

c. Purchase, June 1 850 15

d. Sale, May 1 (sold for $42 per unit) 300

e. Sale, July 3 (sold for $42 per unit) 630

f. Operating expenses (excluding income tax expense), $18,200

1 and 2) When you use a periodic inventory method, cost of goods available for sale and ending inventory are the same. They differ only when you use a perpetual inventory.

ending inventory = 1,170 units

Ending inventory under FIFO:

$28,350 - $11,760 = $16,590

Ending inventory under LIFO:

$28,350 - $13,710 = $14,640

Ending inventory under weighted average:

$28,350 - $12,555 = $15,795

3) total units sold = 930 units

COGS under FIFO:

(300 x $14) + (630 x $12) = $11,760

COGS under LIFO:

(850 x $15) + (80 x $12) = $13,710

COGS under weighted average:

($28,350 / 2,100) x 930 = $12,555

4) Income statement under FIFO

Sales revenue                  $39,060

COGS                                <u>($11,760)</u>

Gross profit                       $27,300

Operating expenses       <u>($18,200)</u>

Operating income              $9,100

Income statement under LIFO

Sales revenue                  $39,060

COGS                                <u>($13,710)</u>

Gross profit                       $25,350

Operating expenses       <u>($18,200)</u>

Operating income               $7,150

Income statement under weighted average

Sales revenue                  $39,060

COGS                               <u>($12,555)</u>

Gross profit                       $26,505

Operating expenses       <u>($18,200)</u>

Operating income              $8,305

6) FIFO minimizes operating income, therefore, minimizes income tax expense.

4 0
3 years ago
Why net profit will be higher if increases average prices to customers?​
vampirchik [111]

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

6 0
3 years ago
Over the last several decades, the United States has usually had a trade surplus. a trade deficit. decreasing trade levels. bala
faltersainse [42]

Over the last several decades, the United States has usually had a trade deficit.

When the U.S. 2008 recession began, the trade deficit increased.

When net exports increase, GDP increases.

Trade deficit is when the import of an economy is greater than the export of the economy. Import are goods that are bought from foreign countries. Export are goods that are sold to foreign countries. As at August 2021, trade deficit in the United States was  $73.3 billion. This is higher than the forecasted amount of $70.5 billion.

During the 2008 recession, trade deficit increased by 3% to $920.7 billion.  One of the reasons for this was the increase in the price of crude oil which is a major consistent of import of the United States.

GDP calculated using the expenditure approach is : consumption + government spending + business spending + net export.

Net export = export - import.

If net export increases, GDP increases.

To learn more, please check: brainly.com/question/3651082?referrer=searchResults

7 0
2 years ago
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