All categories

2 years ago

What are trade offs.

1 answer:

8 0

Ok so trade offers is like here an example: if you want that car really bad but the other person says if you this car you have to give him something that he likes or the same value as the car.

You might be interested in

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock

FromTheMoon [43]

Answer: Please find answers in explanation column.

Explanation:

a. Journal to record The issuance of the bond

Date Account Titles Debit Credit

Jan. 1 Cash $618,000

9% Bonds payable $600,000

Premium on Bonds payable $18,000

Calculation

Cash = 600,000 x 103% =$618,000

b. The accrual of interest and the premium amortization on December 31, 2020

Date Account Titles Debit Credit

Dec. 31 Interest expense $53,100

Premium on Bonds payable $900

Interest payable $54,000

Calculation

Interest = 600,000 x 9% = $54,000

Premium on bonds = 18,000 /20 = $900

Interest expense=$54,000- $900=$53,100

c.Journal to record The payment of interest on January 1, 2021. Date Account Titles Debit Credit

Jan. 1 Interest payable 54000

Cash 54000

d) Journal to record The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Date Account Titles and Explanation Debit Credit

Jan. 1, 2 Bonds payable $600,000

Cash $600,000

5 0

3 years ago

Fresh Foods, a large restaurant chain, needed to determine if it would be cheaper to produce 5,000 units of its main food ingred

ICE Princess25 [194]

Answer:

Fresh Foods

Make or Buy Decision:

1. Make the ingredient in-house.

2. Make in-house is more cost effective by $3,000 ($90,000 - 87,000)

3. If 40% of the fixed overhead can be avoided if the ingredient is purchased externally:

Total cost:

To make in-house = $87,000

To buy = $78,000 ($60,000 + $30,000 x 60%)

To buy now becomes more cost effective by $9,000 ($87,000 - 78,000).

Explanation:

a) Management in production companies are always faced with the buy or make decision. For this type of decision making, the appropriate costs to analyze are the differential (incremental) costs. These are costs that make a difference between alternatives.

b) Calculation of cost:

Make Buy

Total Unit

Purchase $60,000

Direct materials $25,000 $5.00

Direct labor 15,000 3.00

Variable manufacturing overhead 7,500 1.50

Variable marketing overhead 9,500 1.90

Fixed plant overhead 30,000 6.00 30,000

Total $87,000 $17.40 $90,000

Total variable costs $57,000 $60,000

6 0

3 years ago

What is the amount of money you still owe to their credit card company called?

monitta

An outstanding balance on your account

8 0

2 years ago

If $3000 is invested at 9% interest, compounded annually, then after n years the investment is worth an = 3000(1.09)n dollars. (

Charra [1.4K]

Answer:

The first five terms of the sequence are:

First year: $3270.00

Second year: $3564.30

Third year: $3885.09

Fourth year: $4234.75

Fifth year: $4615.87

Explanation:

When we're dealing with compound interest rates we're dealing with interests being re-invested into the original investment. This means that the new interests of one period will bear interests in the next period. This can be simply calculated using the compound interest formula.

The formula for compound interest rates is $P(1+i)^{n}$

Where:

P is the principal amount being invested,

i is the interest rate,

n is the number of years.

So for the first year we replace in the formula with the given values:

3000 × $(1.09)^{1}$ = $3270

And for the rest of the years we only need to modify the value of n.

For the second year we'd have:

3000 × $(1.09)^{2}$ = $3564.3

And so on.

4 0

2 years ago

Under which law can a hotel guest sue for an injury that happened at the hotel’s spa?

Lesechka [4]

Answer:

C.) Premises Liability Act

Explanation:

This is because it happened on their property/premise. The Act states this to be true.

7 0

3 years ago