Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,200,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.

What was the effective interest rate on the bonds when they were issued?

a. 9%
b. Above 9%
c. Below 9%
d. Cannot determine from the information given.

Answers

Answer 1

Answer:

b. Above 9%

Explanation:

given data

issue = $6,000,000

time=  10 year

rate = 9 %

shares = 500

solution

as we can see that here bond issue at discount rate

and we know that market rate is greater than coupon rate

so that the effective interest rate on the bonds when they were issued above 9 %

so correct answer b. Above 9%


Related Questions

The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 64,000 EPBO, December 31 $ 68,480 Interest rate 7 % Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense?

Answers

Answer:

$3,424

Explanation:

Calculation for What is the service cost to be included in the current year's postretirement benefit expense

Service cost=December 31 $ 68,480*1/20 years

Service cost=$3,424

Therefore the service cost to be included in the current year's postretirement benefit expense will be $3,424

Unearned revenues refer to a(n): Group of answer choices Asset that will be used over time. Expense incurred because a customer has paid in advance. Liability that is settled in the future when a company delivers its products or services. Increase in revenues as a result of delivering products or services to a customer. Decrease in an asset.

Answers

Answer:

Liability that is settled in the future when a company delivers its products or services.

Explanation:

Unearned revenue is money received for a service that is yet to be provided or a product that is yet to be delivered.

Unearned revenue is recorded as a liability on the balance sheet. The reason for this is because unearned revenue represents debts owed.

Once the service is rendered, the unearned revenue is recorded on the income statement as a revenue.

Example of unearned revenue : a company offers a one year subscription to consumers. The company is earning revenue for services that is yet to be rendered

Suppose that, in a competitive market without government regulations the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Choices for Price Control is:________.
A. Price ceiling
B. Price floor
Choices for Binding or Not is:_______.
A. Binding
B. Non-Binding
Statement Price Control Binding or Not
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum wage law
___________ ___________
The government prohibits gas stations from selling gasoline for more than $2.70 per gallon
___________ ___________
The government has instituted a legal minimum price of $2.70 per gallon for gasolone.
___________ ___________

Answers

Answer:

price floor , binding

price ceiling binding

price floor , non binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price

Because firms are unable to hire workers due to the minimum wage laws., it means it is binding price floor

Equilibrium price is $3 and the maximum price is $2.70 . Thus, it is a binding price ceiling

Equilibrium price is $3 and the minimum price is $2.70 . Thus, it is a binding floor

Poggers Poggers Poggers Poggers Poggers Poggers Poggers Poggers Poggers PoggersPoggers Poggers Poggers PoggPoggers ers Poggers Poggers Poggers

Answers

Answer:

ngl...

Explanation:

that's poggers

Answer:

yes very poggers

Explanation:

A change in the supply of one factor of production a. can alter the earnings of all of the other factors. b. alters the earnings of that factor only. c. will not change the marginal productivities of other factors but may change their prices. d. alters the earnings of capital and labor but not land.

Answers

Answer:

a. can alter the earnings of all of the other factors.

Explanation:

In the case when there is any change in the one factor of the supply so it would alter or made changes the earnings of all other factors not change the one factor or any other reason

It would fully impact the all the other factors earnings

Therefore as per the given options the first one is correct

The following cost information shows that as production increases, Quantity produced/day Total Cost 0 $2,000 1 $2,500 2 $2,800 3 $3,300 4 $4,100 5 $5,300 6 $7,000 Group of answer choices average total cost decreases and then increases. average fixed cost increases. Total cost is increasing slower and slower. marginal cost falls.

Answers

Answer:

The following cost information shows that as production increases, the

average total cost decreases and then increases.

Explanation:

a) Data and Calculations:

    Quantity      Total Cost   Marginal  Average

produced/day                        Cost      Total Cost

0                         $2,000     $2,000      $0

1                          $2,500        $500      $2,500

2                         $2,800        $300       $1,400

3                         $3,300        $500        $1,100

4                         $4,100         $800       $1,025

5                        $5,300      $1,200       $1,060

6                        $7,000      $1,700        $1,167

b) The average total cost is the total cost divided by the quantity produced per day.  When no unit was produced, the company still incurred some cost, known as fixed cost for production infrastructure, etc.  As the quantity produced increases, the average total cost tends to decrease until the quantity increased to 5 units.  Perhaps, the factory capacity was exceeded at this point.  No wonder the entity recorded an increase in the average total cost.

You are considering an investment in Cruise, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Cruise earned an EBIT of $203 million, paid taxes of $50 million, and its depreciation expense was $74 million. Cruise's gross fixed assets increased by $71 million from 2017 to 2018. The firm's current assets decreased by $11 million and spontaneous current liabilities increased by $6.1 million. What is Cruise's operating cash flow, investment in operating capital and free cash flow for 2018, respectively in millions

Answers

Answer: See explanation

Explanation:

Cruise's operating cash flow would be calculated as:

= EBIT + Depreciation + Taxes

= 203 + 74 - 50

= $227 million

Cruise's investment in operating capital will b calculated as:

= 71 - 11 - 6.1

= $53.9 million

Cruise's free cash flow for 2018 will be calculated as:

= operating cash flow - investment in Operating capital

= 227 - 53.9

= $173.1 million

Answer and Explanation:

The computation is shown below:

Operating cash flow = EBIT - taxes + depreciation expense

= $203 million -$50 million + $74 million

= $227 million

The investment in operating capital is

= Gross fixed asset - decrease in current asset + increase in current liability

= $71 million - $11 million + $6.1 million

= $66.1 million

And, the free cash flow is

= Operating cash flow - investment in operating capital

= $227 million - $66.1 million

= $160.90 million

Oscar owns a bulldog. Another dog owner filed a lawsuit against Oscar alleging that his bulldog injured her pet poodle in a dog park fight. Despite evidence that his bulldog was not present at the dog park when a dogfight broke out, the jury found Oscar liable for injuries caused to the poodle. Based on these facts, Oscar has the legal option to do which of the following?
1) Make a peremptory challenge ((has to do with a juror))
2) File a motion for a judgment notwithstanding the verdict
3) Motion that the court nullify the verdict based on res judicata(no this has to do with not refiling the case)
4) File a motion for a directed verdict at the end of trial testimony before the case goes to the jury that argues that no reasonable jury could find for opposing party and therefore the judge should make a ruling on the case accordingly

Answers

Answer:

File a motion or a judgement notwithstanding the verdict

Explanation:

Answer:

File a motion or a judgement notwithstanding the verdict

Explanation:

someone please help i have to turn this in tonight.
Outline the process the raw ingredients for a single flavor of ice cream might undergo to get to a local grocery’s freezer case.

Answers

Answer:blending of the mix ingredients.

pasteurization.

homogenization.

aging the mix.

freezing.

packaging.

hardening.

Over the past four years, the common stock of Jess Electronics Co. produced annual returns of 7.2, 5.8, 11.2, and 13.6 percent, respectively. Treasury bills produced returns of 3.4, 3.3, 4.1, and 4.0 percent, respectively over the same period. What is the standard deviation of the risk premium on Jess Electronics Co. stock for this time period? (Hint: First, calculate the risk premium for the stock in each of the years. Then, use these 4 annual risk premiums to calculate the standard deviation in the normal way that standard deviation is calculated.).
A. 2.23 percent
B. 4.46 percent
C. 3.22 percent
D. 2.86 percent
E. 4.61 percent

Answers

Answer:

Standard Deviation = 0.032 or 3.2%

Therefore, Option  C) 3.22 percent is the correct answer

Explanation:

Given the data in the question;

lets make a table;

year     market       Treasury bills      Risk              deviation             square of

           returns            returns         premium        from mean           deviation

                A                    B                   (A - B)         Avg - (A - B)      (Avg-(A-B))²

1             7.2%                3.4%                3.8%            -0.0195               0.0004

2            5.8%                3.3%                2.5%            -0.0325              0.0011

3            11.2%                4.1%                 7.1%              0.0135               0.0002

4            13.6%               4.0%                9.6%             0.0385              0.0015

sum(∑)                                                    23%                                        0.0032

Average Avg = ∑(A-B) /n = 23/4 = 5.75%    

so Variance = ∑(Avg-(A-B))² / n-1 = 0.0032 / (4-1) = 0.0032 / 3 = 0.0010      

Standard Deviation = √variance = √0.0010 = 0.0316 ≈ 0.032 or 3.2%

Therefore, Option  C) 3.22 percent is the correct answer

Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $35 per share.
a. What is the amount of economic investment that has resulted from BBQ’s actions? $ million.
b. How much purely financial investment took place? $ million.

Answers

Answer and Explanation:

The computation is shown below:

a. The economic investment amount is

= Number of resturants × cost per resturant + number of resturant × additional cost

= 10 × $1,000,000 + 10 × $300,000

=  $10,000,000 + $3,000,000

= $13,000,000

b. The amount in financial investment took place is

= Number of shares × per value share

= 200,000 shares × $35 per share

= $7,000,000

Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 43,000 46% Ending work in process 38,000 68 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 90,000 units. Required: 1. Using the weighted-average method, reconcile the number of physical units. 2. Using the weighted-average method, calculate the number of equivalent units.

Answers

Answer and Explanation:

a. The number of physical units reconciles is as follows:

Beginning work in process 43,000

Add: Started during the month 90,000

Units accounted 133,000

Completed & transferred units (133,000 - 38,000) 95,000

Ending work in process 38,000

Units accounted 133,000

b. The number of equivalent units is

Particulars              Units   %Material  EUP   %Conversion     EUP

Units completed      95,000   100%     95,000   100%             95,000

Ending balance        38,000   100%     38,000    68%             25,840

Equivalent units                                    133,000                       120,840

g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale, $15,000 was stillowed to First National Bank on that purchase. After the sale, The Melville Company paid off the loan to First National Bank. What is the effect of thesale and the payoff of the loan on the accounting equation

Answers

Answer and Explanation:

The impact on the sale and the payoff the loan in an accounting equation is as follows:

But before that

The following journal entries should be recorded

Cash $60,000    

        To Land $40,000

        To Profit on sale of land $20,000

(Being the sale of the land is recorded)

Loan Dr $15,000

       To Cash $15,000

(Being the loan is paid)

Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000

Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data are available:
Total Revenues $ 133,000
Operating Expenses 90,700
Cash 31,800
Accounts Receivable 25,500
Supplies 41,100
Accounts Payable 24,500
Common Stock 31,600
No dividends were declared or paid during January.
a. Does Miami Music Corporation have sufficient resources to pay its liabilities?
Yes
No
b. Which financial statement indicates this?
i. Income Statement
ii. Statement of Retained Earnings
iii. Balance Sheet
iv. Statement of Cash Flows

Answers

Answer:

a. Does Miami Music Corporation have sufficient resources to pay its liabilities?

Yes

b. Which financial statement indicates this?

iii. Balance Sheet

The balance sheet shows that total accounts payable are $24,500. The company's liquid assets are much higher, especially cash which is $31,800. The company should have enough resources to pay all its liabilities. it is also a profitable company.

Explanation:

Based on the entries in the books of this company, the following are true:

a. Yes they do.b. Balance Sheet.

How do we know the company can pay off its debt?

Paying off liabilities requires current assets to be larger than liabilities.

The current assets of Account Receivable ($25,500) and Cash ($31,800) are both larger than the Accounts Payable of $24,500. The company can therefore pay off liabilities.

All three accounts are found in the Balance Sheet.

Find out more on the Balance Sheet at https://brainly.com/question/25225110.

8. Agreement and disagreement among economists Suppose that Tim, an economist from a business school in Georgia, and Alyssa, an economist from a university in Massachusetts, are arguing over government bailouts. The following dialogue shows an excerpt from their debate: Alyssa: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. Tim: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Alyssa: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession. The disagreement between these economists is most likely due to .

Answers

Answer:

The disagreement between these economists is most likely due to .

differences between perceptions versus reality.

Explanation:

A bailout occurs when the government provides capital resources to a distressed business or failing company, which it considers to be too big to fail.  The purpose is to prevent the consequences of the downfall of such an entity, which may include bankruptcy, default on its financial obligations, economic impact on the wider society.  Most bailouts are made for the benefit of the society rather than the business entity.  The mindset from which two economists can perceive the reality of bailouts will always differ.

At December 31, 2026, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 103 on January 1, 2028, what is the gain or loss on early extinguishment

Answers

Answer:

$25,800

Explanation:

The bonds would mature at the end of the year 2028, which means in 2 years, as result, annual discount amortization is  computed thus:

annual discount amortization=$50,000/2=$25,000

On January 1,2028, the balance in discount amortization is $25,000

Proceeds for 60% redemption=$600,000*60%*103%=$370,800

60% of bonds payable=$600,000*60%=$360,000

60% of unamortized discount=60%*$25,000=$15,000

In effecting the  journal entries, bonds payable is debited with $360,000 while cash and discount on bonds payable are credited with $370,800 and $15,000 respectively.

Total credits=$370,800+$15,000=$385,800  

total debit=$360,000

loss on early extinguishment is $25,800($385,800-$360,000)

It is reported that a 99-year license to use a parking spot at 42 Crosby in New York City is priced at $1 million. The licensee will have to cease using the parking spot thereafter. If the interest rate is fixed at 0.5% per month for the next 99 years, what is the fixed monthly payment on an equivalent 99-year mortgage to finance this purchase

Answers

Answer:

$13.39

Explanation:

future value of an annuity = monthly payment x FV annuity factor

monthly payment = future value / FV annuity factor

future value = $1,000,000

FV annuity factor = [(1 + 0.5%)¹¹⁸⁸ - 1 ] / 0.5% = 74,670.60843

monthly payment = $1,000,000 / 74,670.60843 = $13.39

The following events occurred for Favata Company: Received $15,000 cash from owners and issued stock to them. Borrowed $12,000 cash from a bank and signed a note due later this year. Bought and received $1,300 of equipment on account. Purchased land for $22,000; paid $2,000 in cash and signed a long-term note for $20,000. Purchased $8,000 of equipment; paid $2,000 in cash and charged the rest on account.

Answers

Answer:

a. Dr Cash$15,000

Cr Contributed Capital $15,000

b. Dr Cash $12,000

Cr Notes Payable (short-term) $12,000

c. Dr Equipment $1,300

Cr Accounts Payable $1,300

d. Dr Land $22,000

Cr Cash $2,000

Cr Notes Payable (long-term) $20,000

e. Dr Equipment$8,000

Cr Cash $2,000

Cr Accounts Payable $6,000

Explanation:

Preparation of Journal entries

a. Dr Cash$15,000

Cr Contributed Capital $15,000

b. Dr Cash $12,000

Cr Notes Payable (short-term) $12,000

c. Dr Equipment $1,300

Cr Accounts Payable $1,300

d. Dr Land $22,000

Cr Cash $2,000

Cr Notes Payable (long-term) $20,000

e. Dr Equipment$8,000

Cr Cash $2,000

Cr Accounts Payable $6,000

(8,000-2,000)

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.

a. Hubert buys a sweater made in Guatemala.
b. Kate's father in Sweden orders a bottle Of Vermont maple syrup from the producer's website.
c. The State of Pennsylvania repaves highway PA 320, Which goes through the center Of Swarthmore.
d. Kate gets a new refrigerator made in the United States.
e. Hubert's employer upgrades all of its computer systems using U.S.-made parts.

Answers

Answer:

GDP is the total market value of all the goods and services produced in a country at a given period of time. The five components of GDP are:

Explanation:

1. Consumption (C) : This involves all the private consumption spending or consumer spendings on goods and services such as on groceries, jewelry and clothing.

Kyoko gets a new refrigerator made in the United States - This is a form of consumption because the commodity is produced, bought and also consumed within domestic boundaries. Consumption includes durable goods, non-durable goods as well as services.

2. Investment (I) : This involves the private domestic investment and/or capital expenditure. This is incurred when businesses spend money to invest in their business activities.

Jacque’s employer upgrades all of his computer systems using U.S made parts - The money spent on upgrading computer systems will help increase the productivity and efficiency of business processes in the long run, hence is a form of investment.

3. Government spending (G) : This relates to government consumption expenditures and gross investment. Involves government spending on equipment, infrastructure and payroll.

The State of Pennsylvania replaces highway PA320, which goes through the center of Swathmore - The government has utilized its fund to construct a highway, which is an example of improving its infrastructure and benefiting the public, hence a form of government spending.

4. Exports (X) : Goods and services produced domestically, that are bought by those in other countries.

Kyoko’s father in Sweden orders a bottle of Vermont maple syrup from the producer’s website - This is a form of an export because the syrup that is produced domestically is being sold to someone in another country.

5. Imports (M) : The goods and services produced by another country which are brought into the domestic country.

Jacques buys a sweater made in Guatemala - This is a form of imports since it is produced outside domestic borders and is being purchased to be consumed within the country.

On November 1, 2020, Stellar Company adopted a stock-option plan that granted options to key executives to purchase 31,800 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $477,000. All of the options were exercised during the year 2023: 21,200 on January 3 when the market price was $68, and 10,600 on May 1 when the market price was $77 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 202

Answers

Answer:

2021 No entry

The total compensation cost is the amount of $477,000

2021

Dr Compensation Expense 238,500

Cr Paid-in Capital- Stock Options 238,500

2022

Dr Compensation Expense 238,500

Cr Paid-in Capital- Stock Options238,500

1/3/2023

Dr Cash 848,000

Dr Paid-in capital - Stock Options 318,000

Cr Common Stock 190,800

Cr Paid-in Capital in Excess of par 975,200

5/1/2023

Dr Cash 424,000

Dr Paid-in Capital - Stock Options 159,000

Cr Common Stock 95,400

Cr Paid-in Capital in Excess of Par 487,600

Explanation:

Preparation of the journal entries relating to the stock option plan for the years 2021, 2022, and 2023.

2021 No entry

The total compensation cost is the amount of $477,000

2021

Dr Compensation Expense 238,500

Cr Paid-in Capital- Stock Options 238,500

(1/2 * $477,000)]

(Being To record compensation expense for 2021)

2022

Dr Compensation Expense 238,500

Cr Paid-in Capital- Stock Options238,500

(1/2 * $477,000)

(Being To record compensation expense for 2022)

1/3/2023

Dr Cash 848,000

(21,200 * $40)

Dr Paid-in capital - Stock Options 318,000

($477,000 *(21,200/31,800))

Cr Common Stock 190,800

(21,200 * $9)

Cr Paid-in Capital in Excess of par 975,200

[848,000+318,000-(190,800)]

(Being To record issuance of 21,200 shares of $9 par value stock upon exercise of option price set at $40)

5/1/2023

Dr Cash 424,000

(10,600 *$40)

Dr Paid-in Capital - Stock Options 159,000

($477,000 * (10,600/31,800))

Cr Common Stock 95,400

(10,600*$9)

Cr Paid-in Capital in Excess of Par 487,600

[424,000+159,000-(95,400)]

(Being To record issuance of 10,600 shares of $9 par value stock upon exercise of option price set at $40)

Context content and culture are

Answers

Complete Question:

Context, content and culture are:

O Important ethical concepts

O Important marketing concepts

O Corporate ethics policy

O Three dimensions of evaluating corporate gifts.

Answer:

Context, content and culture are:

O Three dimensions of evaluating corporate gifts.

Explanation:

Corporate gifts may turn out to be regarded as bribery if they are meant to induce the other party to alter their behaviors.  This is why in evaluating corporate gifts, the criteria have always included the context (the circumstances in which the gifts are given), the content (how much is given), and the culture (the accepted general practice in a particular industry, locality, or region).  Generally, corporate gifts are given either as means of showing appreciation, creating positive first impression, or returning some favors.

Context, content and culture are the three dimensions of evaluating corporate gifts. That is, criteria that define the ethical nature of corporate gifts.

The context is determined by the circumstance in which a corporate gift is given. The content refers to what is given as a corporate gift.

Culture refers to the acceptability and compliance of the practice of providing corporate gifts in a particular company and location.

This practice of providing corporate gifts can be seen as unethical if such gifts are given for the purpose of bribery, gaining privileged information or anything that leads a party to engage in unethical behavior.

Therefore, the three dimensions of corporate gift valuation will help to maintain ethics as a regulatory and guiding concept in the practice of providing gifts.

Learn more here:

https://brainly.com/question/21830013

The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is: Joint product costing. Accounting approach. Activity-based approach. Direct approach. Departmental approach.

Answers

Answer:

Activity-based approach.

Explanation:

Cost allocation in financial accounting can be defined as the process of identifying, gathering and assigning of cost across multiple cost objects such as products, inventory or departments.

There are various types of cost allocation methods and these are;

1. Sequential method.

2. Activity-based management method.

3. Reciprocal services method.

4. Direct method.

The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is activity-based approach.

This ultimately implies that, activity-based approach gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the activity-based approach, the relationship between time and cost measurement is used to determine the cost price of goods and services.

A company has the following cash transactions for the period.
Accounts Amounts Cash
received from sale of products to customers 31,500
Çash received from the bank for long-term loan 36,500
Cash paid to purchase factory equipment (41,500)
Cash paid to merchandise suppliers (10,300)
Cash received from the sale of an unused warehouse 11,300
Cash paid to workers (22,300)
Cash paid for advertisement (2,300)
Cash received for sale of services to customers 21,500
Cash paid for dividends to stockholders (4,300)
Assume the balance of cash at the beginning of the period is $3,300.
Required: 1.
Calculate the ending balance of cash. Ending balance

Answers

Answer:

oha lan buney yaa hepsi english

magine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same, or less than today?

Answers

Answer:

less than today

Explanation:

Inflation is the general increase in consumer prices in the economy. When prices are increasing, the purchasing power of a currency decreases. A 3 percent inflation rate indicates that prices of goods and services have increased by an average of 3 percent.

Interest rate expresses the rate at which money saved is growing per year. A 5 percent interest rate means that the amount in the account will increase by 5 percent.

For there to be a real increase in the money saved, the interest rate must be higher than the inflation rate. A high-interest rate compensates for the increase in prices.

Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2018, Isaac had $688 million in sales of this type. Scheduled collections for these sales are as follows:

2018 $ 60 million
2019 120 million
2020 120 million
2021 150 million
2022 150 million
$ 600 million

Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2019, what deferred tax liability would Isaac report in its year-end 2019 balance sheet?

a. $126 million.
b. $54 million.
c. $144 million.
d. $180 million.

Answers

Answer:

a. $126 million.

Explanation:

The computation of the deferred tax liability is as follows

Particulars                      2018                    2019

                                               (in $ millions)

Income for

Finan reporting              600                     0

Income for income

tax purpose                   60                       120

Difference                     540                     120

Opening balance                                     162

of dtl

Dtl creation

(30% of 540)             162                          0

Reversal of dtl

(30% of 120)               0                           -36

Ending balance        162                         126

Coronado Industries purchased equipment in 2019 at a cost of $912000. Two years later it became apparent to Coronado Industries that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $583000 and it is estimated that the fair value is now only $360000. The entry to record the impairment is

Answers

Answer and Explanation:

The journal entry to record the impairment is as follows:

Loss on impairment of equipment $223,000 ($583,000 - $360,000)  

            To Accumulated depreciation- Equipment $223,000

(Being the impairment is recorded)

Here the loss would be debited as it increased the losses and accumulated depreciation is credited as it decreased the assets

From the following ledger balances, prepare a trial balance for the Whispering Winds Corp. at June 30, 2022. All account balances are normal.
Accounts Payable $8,300 Service Revenue $7,300
Cash $7,700 Accounts Receivable $4,300
Common Stock $22,500 Salaries and Wages Expense $3,500
Dividends $2,100 Rent Expense $2,300
Equipment $18,200.

Answers

Answer:

Realidades 2 WKBK page 109

Explanation:

Realidades 2 WKBK page 109

Pina Colada Corp. issued 22000 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $53000 and issued long-term notes payable of $484000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows

Answers

Answer:

Net cash flows from financing activities $1,311,000.

Explanation:

The computation of the amount that would be reported on the financing activities of the cash flow statement is as follows:

Issue of common stock(22,000 shares × $40) $880,000

Less: payment of dividend ($53,000)

Add: Issue of the long term note payable $484,000

Net cash flows from financing activities $1,311,000.

Orientation responsibilities are normally shared between:
of 2
Select one:
a. the HR department and top management.
b. mid- and upper-level executives.
C. coworkers and line managers.
d. the HR department and the new employee's immediate manager.
Clear my choice

Answers

Answer:

d. the HR department and the new employee's immediate manager.

Explanation:

An "employee orientation" is part of a new employee's onboarding process, before he's trained. It often happens on the first day of employment. It allows the new employee to feel welcomed in the company, which will make him more successful in achieving his goal.

It is the role of the HR department and direct manager or immediate manager to conduct the orientation. It is the role of the HR to give the employee the company handbook and sign contracts. On the other hand, the immediate manager introduces the new employee to his colleagues and gives him a tour of the company's premise. Some immediate managers provide a welcome party.

The total assets of Berber Company are $190,000 and its owner's equity is $89,000. What is the amount of its total liabilities?



Answers

Answer:

$101,000

Explanation:

As per the accounting equation, assets are equal to liabilities plus equity.

I.e.,

Assets = Liabilities + Equity

For Berber Company, Assets are $190,000: liabilities = $89,000

Therefore,

$190,000 = $89,000 + Equity

Equity = $190,000 -$89,000

Equity = $101,000

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