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Elan Coil [88]
3 years ago
8

Sage Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed

a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $367,600. At December 31, 2020, the raw material had declined in price to $334,840. What entry would you make on December 31, 2020, to recognize these facts
Business
1 answer:
maks197457 [2]3 years ago
7 0

Answer:

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

Explanation:

Preparation of What entry would you make on December 31, 2020, to recognize these facts

Based on the information given the Joi entry you would make on December 31, 2020, to recognize these facts will be :

December 31, 2020

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

($367,600-$334,840)

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Nunavet Ocean Cruises sold an issue of 12-year ​$1,000 par bonds to build new ships. The bonds pay​ 4.85% interest, semi-annuall
frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  24.25  (1,000 face value x 4.85 bond rate / 2 )

time  24.00 (12 year 2 payment a year)

rate  0.04850 (current rate divide by 2 to get it annually)

24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\

PV $339.55

Then present value of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00 the face value of the bond

time   24.00

rate   0.04850

\frac{1000}{(1 + 0.0485)^{24} } = PV  

PV   320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity  $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

7 0
3 years ago
The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the account
vova2212 [387]

Answer:

Wholistic Health Services Co.

Income Statement for the year end February 28, 2019

Service Revenue                           $270,900

Less: Supplies Expense                <u>$3,000    </u>

Gross Income                                  $267,900

Less operating Expenses:

Insurance Expense         $4,000

Depreciation Expense    $9,000

Miscellaneous Expense $6,000

Utilities Expense             $1,760

Rent Expense                  $4,200

Wages Expense              <u>$213,000</u>

                                                       <u>$237,960</u>

Net Income                                    <u>$29,940  </u>    

Explanation:

Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.

8 0
3 years ago
Which of the following theories suggests that employee motivation is influenced by what other people contribute to and receive f
Debora [2.8K]

Explanation:

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3 0
3 years ago
The economy continues to descend into chaos. The stock market still moves down after it makes progress forward, and unemployment
BaLLatris [955]

Answer:

A) . It is going to be a while before things get better in the United States.

Explanation:

3 0
3 years ago
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In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing
Anni [7]

Answer:

Experience.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets so as to produce a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

A service organization can be defined as an assembly of people who are saddled with the responsibility of providing customer-oriented services rather than just making profit.

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Thus, Disney is marketing an experience because they comprises of both a tangible and an intangible quality.

8 0
3 years ago
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