Project Organizational Capability

If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the b

Llana [10]

Answer:

(C) Bonds Payable for $150,000

Explanation:

the face value of the bonds will the value at which bonds payable account enter the accounting. Then, there is a discount which decrease the net value of the bonds:

Bonds Payable 150,000 credit

Discount on bonds 15,000 debit

When the bonds are converted, we will write-off these account against common stock and additional paid-in

To wirte-off the account we need to post them in the other side so we got:

Bonds payable debit 150,000 debit

Discount on bonds 15,000 credit

Common Stock xx credit

Additional paid.in xx credit

These makes option C correct

5 0

3 years ago

Who lowered interest rates on government bonds in order to create a fund to pay an annual sum to the survivors of the emigres wh

REY [17]

Answer:

Charles X

Explanation:

Charles X was a king of France between 1824 and 1830 and for the greater part of his life was known as the Count of Artois. During his reign as king, Charles X, whose full name is Charles Phillipe, lowered interest bonds to create funds to pay survivors of the emigres who forfeited their lands. He also restores primogeniture(the right of succession of the throne by first borns). He also enacted the law of death or imprisonment for sacrilege in his support of the Roman Catholic Church.

Cheers.

5 0

2 years ago

Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

beks73 [17]

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

Cost
Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

7 0

3 years ago

In our aggregate expenditure model we assume that:

maria [59]

Answer:

The correct answer is regarding the model, is that an individual firms prices are flexible but the level of the price is fixed.

Explanation:

The aggregate expenditure model is the model in which the sum or total of all the expenditures are undertaken in the economy with the factors during the particular time period.

The equation is:

AE = C (Consumption) + I (Investment) + G (Government) + NX (Net Exports)

In this model, it is assumed that the prices of the individual firm are flexible whereas the price level is fixed.

7 0

3 years ago

A company is considering the purchase of new equipment for $57,000. The projected annual net cash flows are $23,400. The machine

lina2011 [118]

Answer:

Net Present Value = $3,304.069

Explanation:

To determine whether or not the investment was right, we will need to determine the net present value of the investment (NPV).

The NPV is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.

NPV of an investment(NPV)

NPV = PV of Cash inflows - PV of cash outflow

The cash inflow is an annuity.

PV of annuity= A× 1 -(1+r)^(-n)/r

A- Annual cash flow ,- 23,400 r - discount rate - 8%, number of years- 3

Present Value of cash inflow =23,400 × (1- (1.08)^(-3)/0.08 = 60,304.06

Initial cost = 57,000

Net Present Value = 60,304.06 - 57,000 = 3,304.069

Net Present Value = $3,304.069

Kindly note that a discount rate of 8% was used as it is the opportunity cost of capital for the investment.

4 0

3 years ago