On January 1, 2021, NFB Visual Aids issued $720,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $600,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1-a. Determine the price of the bonds at January 1, 2021.
1-b to 4. Prepare the necessary Journal entries.

Answer and Explanation:

The computation of price of the bonds is shown below:-

Interest on Bond = Bond Face Value × Interest rate × 6 ÷ 12 months

= $720,000 × 8% × 6 ÷ 12

= $28,800

Present Value of interest payments = Interest on bond × PVAF(i%, n)

i = semi annual discounting rate = 10% × 6 ÷ 12

= 5%

n = number of semi annual periods

= 20 years × 2 periods

= 40 periods

Present Value of interest payments = $28,800 × PVAF(5%, 40)

= $28,800 × 17.15909

= $494,182

Present Value of Redemption Value = Redemption Value × PVF(5%, 40)

= $720,000 × 0.142046

= $102,273

Price of Bonds = $494,182 + $102,273

= $596,455

1-b The Journal entries are shown below:-

a. Cash Dr, 596,455

    Discount on Bonds Payable Dr, $123,545

                      To Bonds Payable $720,000

(Being the issuance of bonds is recorded)

b. Interest Expense Dr, $29,823 (596,455 × 10% × 6 ÷ 12)

             To Discount on Bonds Payable $1,023

             To Cash $28,800 ($720,000 × 8% × 6 ÷ 12)

(Being the first interest payment is recorded)

c. Interest Expense Dr, $29,874 (($596,455 + $1,023) × 10% × 6 ÷ 12)

              To Discount on Bonds Payable $1,074

              To Cash Dr, $28,800

($720,000 × 8% × 6 ÷ 12)

(To record the second interest payment)

d. Unrealized Holding Loss Dr, 1,448

                  To Fair Value Adjustment $1,448

(Being adjust the bonds to their fair value is recorded)

Working Notes:

1) Bonds Payable Value after adjusting Discount

= $596,455+$1,023+$1,074

= $598,552

Fair Value of Bonds as on Dec 31 = $600,000

Fair Value adjustment amount is

= $600,000 - $598,552

= $1,448

ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo’s incremental borrowing rate is 8%, and Cleveland’s implicit interest rate of 8% is known to Abriendo. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.

what is Framing in a conversation?​

Sales and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.

July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.
5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the goods sold was $25,000.
7. Returned merchandise with an invoice amount of $6,850 purchased on July 5 from Kester Co.
13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $108,000. The cost of the goods sold was $64,800.
22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the goods sold was $10,000.
23. Sold merchandise for cash, $91,200. The cost of the goods sold was $55,000.
28. Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250.
31. Paid MasterCard service fee of $1,650.

Required:
Journalize the transactions.

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:

Activity Activity Rate
Fabrication $34 per machine hour
Assembly $14 per direct labor hour
Setup $46 per setup
Inspecting $26 per inspection
Production scheduling $14 per production order
Purchasing $8 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Elliptical
Activity Base Machines Treadmills
Machine hours 663 415
Direct labor hours 180 78
Setups 21 9
Inspections 119 181
Production orders 16 9
Purchase orders 90 50
Units produced 268 134

Required:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product.

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,300 1,800 2,800 3,000 Hours per machine 325 200 400 320 Number of machines 3 5 4 4 Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average productivity 2.06 correct units per machine hour

Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $94,500 worth of parts from your supplier and the discount is at an annual rate of 10%. How much will you pay for the parts if you pay today

A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018.
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.
4. The CD matured on September 30, 2018.

You purchased a bond at a price of $13,100. In 15 years when the bond matures, the bond will be worth $30,000. It is exactly 7 years after you purchased the bond and you can sell the bond today for $21,300. If you hold the bond until it matures, what annual rate of return will you earn from today

The CIS Department at Tiny College maintains the Free Access to Current Technology (FACT) library of e-books. FACT is a collection of current technology e-books for use by faculty and students. Agreements with the publishers allow patrons to electronically check out a book, which gives them exclusive access to the book online through the FACT website, but only one patron at a time can have access to a book. A book must have at least one author but can have many. An author must have written at least one book to be included in the system but may have written many. A book may have never been checked out but can be checked out many times by the same patron or different patrons over time. Because all faculty and staff in the department are given accounts at the online library, a patron may have never checked out a book or they may have checked out many books over time. To simplify determining which patron currently has a given book checked out, a redundant relationship between BOOK and PATRON is maintained.

Required:
Write a query that will display all the Books that were published in 2016.

A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 4202 dollars. How much did he invest at each rate?

If there are external or spillover benefits associated with consumption and production of a product, it can be said that the:

Laws governing sales are only enacted when the rights of an organization are infringed upon
True
False

Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report.

October 31 (in millions) 2007 2006
Accounts receivable, net $13,420 $10,873

HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.

For the fiscal years ended October 31 (in millions)

2007 2006 2005
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period $220 $227 $286
Increase in allowance from acquisition 245 3 4
Addition of bad debts provision 32 37 17
Deductions, net of recoveries (29) (48) (76)
Balance, end of period $226 $220 $227

Required:
a. What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?
c. What amount of bad debts expense did HPQ report each year 2007 through 2006? What amount was actually written off?

Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,000.
3 Buys office furniture for $3,800, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time).
10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
27 Pays $700 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,000 in salary for October.
Required:
Prepare the debit—credit analysis for each transaction.

basic level profession​

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.

Oriole Products manufactures two component parts: AJ40 and AJ60. AJ40 components are being introduced currently, and AJ60 parts have been in production for several years. For the upcoming period, 1,500 units of each product are planned for manufacturing. Assume that the only relevant overhead cost is for engineering change orders (any requested changes in product design or the manufacturing process). AJ40 components are expected to require 4 change orders and AJ60 only 2. Each AJ40 requires 1 machine hour, and each AJ60 requires 1.5 machine hours. The cost of a change order is $420.

Required:
Estimate the cost of engineering change orders for AJ40 and AJ60 components if Blue uses a traditional costing method and machine hours as the allocation base.

Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories.Advertising………………………………………………………………….. $25,600Cost of hardware (hangers, decorations, etc)…………….… $42,300Cost of wood…………………………………………………………..... .$121,200Depreciation on production equipment…………………….... $32,000Factory property taxes……………………………………………….....$15,500Factory rent……………………………………………………………..….. $50,000Glue……………………………………………………………………...…….… $3,030Production supervisor salary…………………………………….. $41,200Sales manager salary…………………………………………………. $41,500Utilities for factory………………………………………………………. $27,800Wages for maintenance workers.......................................$33,200Wages of assembly workers..............................................$87,400Wages of finishing workers...............................................$74,100A compute the direct material cost 1a.____ $163,500 _______Compute the direct labor cost. 1b.________ $161,500 ________Compute the manufacturing overhead. 1c.____ $232,730 ______Compute the total manufacturing cost. 1d.____ $557,730 _____Compute the prime cost. 1e_________$325,000 ______Compute the conversion cost. 1f.____ $394,230 _____Compute the total period cost 1g.____ $67,100 ________

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography.
1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? 2. If you expanded and hired additional people to help you, might that give rise to agency problems?3. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?4. List three provisions in the corporate charter that affect takeovers.5. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?6. What is block ownership? How does it affect corporate governance?7. Briefly explain how regulatory agencies and legal systems affect corporate governance.

Evan has a bachelor’s degree in ethics and Human Resources and he has extensive experience working with employees and managers regrading ethics especially in the areas of ethical dilemmas in his current position he has assisted extensively in determining if the company decisions are both ethical and lawful. Which position in the company does Evan background make him ideally suited for

Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $430,000 and an average tax rate of 34%. She spent $43,000 on ingredients, $21,500 on utilities, and $77,400 to rent the premises Emily has a few employees and paid them $86,000 in wages in total. She also paid herself a salary of $64,500 and spent $43,000 to pay for employee benefits A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $21,500 in interest on that loan. Depreciation for the equipment was $12,900 .
1. What was operating income (EBIT) for the year?
2. What was net income for the year?

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)

a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.

On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2018, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:
a) $450,000; $98,400.
b) $450,000; $104,000.
c) $408,000; $104,000.
d) $328,000; $74,000.
e) $408,000; $98,400.

At the end of each of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the cash flows worth today if a 3% discount rate is appropriate

What are the economic problems
typically facing developing nations
like Malaguena?

Determine whether each statement describes the income effect, the substitution effect, or neither. Assume that all other variables are held constant. The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters. The price of chicken falls by $0.75 a pound. Since chicken is now relatively less expensive than ground beef, Mary buys more chicken and less beef. The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further. Model Planes Incorporated reduces production of its wooden plane product line. Jessica sees that the price of orange juice is higher this week. She decides to buy less orange juice and more apple juice because orange juice is relatively more expensive.

Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180. 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.
The cost of the returned merchandise was $3,630. 31.
Paid MasterCard service fee of $3,510.
Instructions Journalize the transactions.

Sadie Equestrian Services established a petty cash fund in the amount of $500 on June 1, 2013. On June 30, a review of the petty cash vouchers showed disbursements for the following: Stamps $60 Cab Fare for Ms. Sadie to attend meeting downtown $28 Dinner for employees working overtime $185 Messenger Costs for delivering legal documents $54 Advance to salesperson for attending networking event $25 Purchase of emergency office supplies $69. The Petty cash fund had a remaining cash balance of $77. The proprietor, Ms. Sadie also decided to increase the size of the Petty Cash fund to $700. Journalize the following:
a) Transaction to establish
Petty Cash Fund
b) Transaction to replenish
Petty Cash Fund on June 30
c) Transaction to increase the size of the
Petty Cash Fund

Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2011. Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30 every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $1.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10. The daughter received the $1,000 dividend on October 18, 2011. How does this information impact who must recognize the dividend as income?a. Darryl must recognize the $1,000 dividend as his income because he knew the dividend would be paid.b. Darryl must recognize $750 of the dividend because he owned the stock for three fourths of the year.c. Darryl must recognize the income of $1,000 because he constructively received the $1,000.d. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.e. None of the above

Quiz Instructions
Question 1
5 pts
(02.01 LC)
Which of these factors is likely to have the greatest influence on purchases by consumers to choose a different
option than originally intended?
The price of a good or service
The price of alternatives or substitutes
Their own income
Their personal preferences