Answer:
C. Interest Expense account is increased; the Interest Payable account is increased.
Explanation:
A secured interest can be defined as a legal right granted by a borrower to a lender (creditor) over a collateral (the borrower's property) which permits or allow the lender to have a right to possess the property as soon as the lender defaults in making payment. The payment which is expected to be made by the borrower of a mortgage loan is considered a secured obligation because it is a lien or an enforceable legal claim.
When interest is accrued on a note payable, but not paid, the Interest Expense account is increased; the Interest Payable account is increased.
Answer:
The correct option is D,$20,000 unfavorable
Explanation:
In the first place, it is noteworthy that fixed overhead flexible budget variance is the between the budgeted overhead cost and the actual fixed overhead incurred.
When actual fixed cost overhead is lower than budgeted,the resultant effect is a favorable variance,where the reverse is the case when the budgeted fixed overhead cost is higher as is the case here.
budgeted fixed overhead costs $200,000
Actual fixed overhead costs ($220,000)
fixed overhead flexible budget variance ($20,000) unfavorable
Answer:
c. $229
Explanation:
To compute the total absorption cost per unit we do the following,
Absorption of fixed costs = Fixed costs / units produced
Absorption cost = 200,000 / 4000 = $50/unit
Total cost of each individual unit = 99 + 55 + 25 + 50 = $229
This includes direct material, direct labor, manufacturing overhead and the fixed absorption cost.
With absorption costing we take all the goods produced in a period as denominator for the Fixed costs.
Hope that helps.
Answer:
option (c) 9%
Explanation:
Data provided in the question:
current price of outstanding shares = $38.89
Last Dividend paid = $3.50
Marginal tax rate = 34%
Now,
cost of preferred equity = Dividend ÷ Price per share
thus,
cost of preferred equity = $3.50 ÷ $38.89
or
cost of preferred equity = 0.0899
or
cost of preferred equity = 0.0899 × 100%
= 8.99% ≈ 9%
Hence,
The correct answer is option (c) 9%
Answer:
D. $15,000,000
Explanation:
amount to be raised before 5%cost = $14,000,000 + $250,000
=$14,250,000
then:
100 - 5 = 95% ~~ $14,250,000
100% ~~ $ 15,000000
Therefore, the amount required to be raised is $15,000,000.
