Mills Corporation acquired as a long-term investment $300 million of 6% bonds, dated July 1, on July 1, 2018. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $350 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $325 million.
Required:
1. & 2. Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.
3. At what amount will Mills report its investment in the December 31, 2018, balance sheet?
4. Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $360 million. Prepare the journal entries to record the sale.

Answer:Please see explanation for answers

Explanation:

1. Journal to record the investment in bonds

Date              Account title and explanation     Debit                     Credit

July, 1 2018     Investment in Bonds         $300,000,000  

  To Premium on Bond Investment           $50,000,000  

  To Cash                                                                                 $350,000,000

2. To record interest on Bonds

Date              Account title and explanation     Debit                  Credit

December 31,2018  Cash                                   $9,000,000

         (300,000,000 x 6% x 6/12)

 Interest Revenue

($350,000,000 ×  4% x 6/12)                                                   $7,000,000

 To Premium on bonds                                                             $2,000,000

3. The Amount to be reported in balance sheet is

 Investment in Bonds                                                                $300,000,000

+Premium on bonds  

(Original Premium $50,000,000  -Amortization (2,000,000) =48,000,000

Amount to be reported in Balance sheet=  $348,000,000

4. Date              Account title and explanation     Debit                  Credit  

January 2, 2019     Cash                                 $360,000,000

     To gain on sale                                                                       $12,00,000      ($348,000,000 - $360,000,000)

       To Investment in bonds                                                       $300,000,000    

       To Premium on bonds                                                          $48,000,000

Scarcity occurs when supply exceeds demand.
True of False

Which of the following is NOT an example of fixed expenses?

Select the best answer from the choices provided.
A.
Health insurance premium

B.
Interest on college loans

C.
Apartment Rent

D.
The amount of gas to fill up your tank

Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividends declared and paid during 2020 totaled $81,300. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $89,160 (net of tax) was charged to maintenance and repairs expense in 2019.

has any questions or problems.
4. It is the development of an ongoing connection between a company and its customers. The
relationship involves marketing communications, sales support, technical assistance and
customer service​

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Required:
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b. What is the probability that the project will result in a loss for the contractor?
c. Suppose the contractor has the opportunity to renegotiate the contract. What value of R should the contractor strive for in order to have a .99 probability of making a profit?

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an increase in the cost of farm equipment
a rise in demand for organic produce
an increase in customers at the market
a change in the market price for non-organic fruit
a sale on organic meats at the market

(answer is abc)

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Hoda is creating a report in Access using the Report Wizard. Which option is not available for adding fields using the wizard?

Tables
Queries
Reports
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g Customers arrive at the window at a rate of 12 per hour and it take the teller 4 minutes, on average, to serve a customer. Use this information to calculate the requested items in columns a and b. The BHFC's operations manager is considering adding a second window to this branch which would cost the bank $20,000 annually. The operations manager also estimates the bank's revenue will increase by $2,000 annually for each minute of reduction in custimer waiting time. Should the BHFC add the second window?

Jameson Corporation was organized on May 1. The following events occurred during the first month.
A. Received $67,000 cash from the five investors who organized Jameson Corporation. Each investor received 110 shares of $10 par value common stock.
B. Ordered store fixtures costing $10,000.
C. Borrowed $16,000 cash and signed a note due in two years.
D. Purchased $18,000 of equipment, paying $1,400 in cash and signing a six-month note for the balance.
E. Lent $1,700 to an employee who signed a note to repay the loan in three months.
F. Received and paid for the store fixtures ordered in (b).
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Prepare journal entries for each transaction.

Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
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Fixed overhead will not be affected by whether or not the special order is accepted.

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c. Normal price, direct materials, direct labor, and variable overhead.
d. Normal price, direct materials, direct labor, variable overhead, and fixed overhead.

2. By how much will operating income increase or decrease if the order is accepted?
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Job 306 Job 307 Job 308
Balances on March 31
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Direct labor 21,000 18,000
Applied overhead 10,500 9,000
Costs during April
Direct materials 135,000 200,000 $ 115,000
Direct labor 102,000 153,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process
a. Materials purchases (on credit).
b. Direct materials used in production.
c. Direct labor paid and assigned to Work in Process Inventory.
d. Indirect labor paid and assigned to Factory Overhead.
e. Overhead costs applied to Work in Process Inventory.
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Cost of goods sold for Job 306.
i. Revenue from the sale of Job 306.
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
2. Prepare journal entries for the month of April to record the above transactions.
Transaction General Journal Debit Credit
a. Raw materials inventory 560,000
Accounts payable 560,000
b. Work in process inventory 450,000
Raw materials inventory 450,000
c. Work in process inventory 359,000
Cash 359,000
d. Factory overhead 23,000
Cash 23,000
e. Work in process inventory
Factory overhead
f(1). Factory overhead
Raw materials inventory
f(2). Factory overhead 24,000
Cash 24,000
f(3). Factory overhead 56,000
Accumulated depreciation-factory equipment 56,000
f(4). Factory overhead 39,000
Cash 39,000
g. Factory overhead
Work in process inventory
h. Cost of goods sold
Finished goods inventory
i. Cost of goods sold
Finished goods inventory
j. Cost of goods sold
Factory overhead

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Someone who gives money or goods to an organization
A. Donor
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How many of each type of lamp must be sold to optimize total contribution margin?

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c. 18,000 classic lamps; 0 fancy lamps
d. 0 classic lamps; 30,000 fancy lamps
e. 10,000 classic lamps; 10,000 fancy lamps

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which of the following is a reason to approach smaller banks for a business loan



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