Crystal Glassware Company issues $1,042,000 of its 14%, 10-year bonds at 97 on February 28,2019. The bonds pay interest on February 28 and August 31. Assume that Crystal uses thestraight-line method for amortization. What net amount will be reported for the bonds on theAugust 31, 2019 balance sheet?A) $1,010,740 B) $1,012,303 C) $1,009,177 D) $1,042,000
Answers
Answer:
The correct option is B. $1,012,303
Explanation:
For computing the net amount, the following calculations are need to be done which is shown below:
1. Calculation the total value of bond which equals to
= Issue amount × price
= $1,042,000 × (97 ÷ 100)
= $1,010,740
2. Now compute the discount which shown below:
= Issue amount - total value
= $1,042,000 - $1,010,740
= $31,260
3. Then, compute the semiannual discount amount by applying the straight line method
= Discount value ÷ number of years
where,
number of year would be multiply by 2 = 2 × 10 = 20 years
So, the value would be equal to
= $31,260 ÷ 20 years
= $1,563
4. So, the net amount would be
= Total value of bond + semiannual discount
= $1,010,740 + $1,563
= $1,012,303
Hence, the net amount will be reported for the bonds on the August 31, 2019 balance sheet is $1,012,303
Therefore, the correct option is B. $1,012,303
Related Questions
A form of government spending that is not made in exchange for a currently produced good or service is called
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All of the following are parts of business models employed in the online music industry except: Question 2 options: A) peer-to-peer streaming. B) cloud streaming. C) download-and-own. D) subscription.
Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the:_________a. revenue effect plus redistribution effect. b. protective effect plus revenue effect. c. consumption effect plus redistribution effect. d. production distortion effect plus consumption distortion effect. e. None of the above.
Answers
Answer:
Price of Bond = 585.43
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
The question does not provide information about interest payment therefore the price of the bond is the present value.
PV of redemption Value
PV = F × (1+r)^(-n)
F-1000, r-0.055, n- 10 ×2
PV = 1,000 × 1.055^(-10)
PV = 585.43
Price of Bond =$ 585.43
Answers
Answer:
B) salesmen have granted customers an extension of credit terms.
Explanation:
receivables turnover ratio = net sales / average accounts receivable
A low receivables turnover ratio is usually a bad thing, since most companies sell on credit, i.e. their accounts receivable should be important. A high receivables turnover ratio means that the company is collecting its accounts receivable efficiently and its customers are good payers.
The key point here is average accounts receivable. What can result in a company having very high accounts receivable (compared to its total sales)? The answer is simple, their customers are not paying on time or the company had to extend their credit terms in order to attract more customers.
Answers
Answer:
the skills of:
1) Basic Technology
2) Communication
3) Problem Solving
4) Collaboration
5) Adaptability
6) Multitasking
7) Social Media
Explanation:
Successful employees have common and detailed career goals and plans. Those who do not, however, prefer to flow in their work lives. The person with goals has a strong internal motivation. They are not discouraged when they fail. It is difficult to separate these people from their work and distract them. A person with goals is already motivated for development. Most importantly, an employee with clear goals often has a clearly defined career and development plan, and he already knows what tools, skills and qualifications will help him in that sequence. A person without goals is like a piece of water moving in the direction of sea waves and winds. Wherever the wind blows or where the waves drive, they will go there.
We could say that five general skills that workers say are most important when it comes to getting hired and being successful in the workplace:
Ability and willingness to learn new skills
Critical thinking and problem solving
Collaboration and team work
Interpersonal communication
Ability to analyze and synthesize information.
More specifically, we can list the most important ones nowadays, the skills of:
1) Basic Technology
2) Communication
3) Problem Solving
4) Collaboration
5) Adaptability
6) Multitasking
7) Social Media
1. Calculate the standard cost for a pound of Sheffield's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)
Answers
The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies in the above case is $15.10.
What is the standard cost?
A standard cost is defined as an anticipated cost that a company commonly launches at the starting of a fiscal year for amounts used and prices paid.
It is an anticipated amount of money to pay off for materials costs or labor rates. The standardquantity is the anticipated exercise amount of materials or labor.
Computation of standard cost:
According to the given information,
Standard direct materials costs = $0.80 per pound of cookie mix.
Per pound of milk chocolate = $4, and
Per pound of almonds = $19.
Total ounces:
Then, Standard Material Cost:
Now, 1 minute of direct labor is required in the mixing department and 5 minutes of direct labor in the baking department. Then the standard direct labor cost is:
Variable overhead is applied at a rate = $37.00 per direct labor hour
Now, find the value of Standard Variable overhead cost:
Now, Standard Fixed overhead cost:
Therefore, Standard cost for a pound:
Therefore, Standard cost for a pound is $15.10.
To learn more about the standard cost, refer to:
Answer:
The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies is $15.10
Explanation:
The standard direct materials costs are $0.80 per pound of cookie mix, $4 per pound of milk chocolate, and $19 per pound of almonds.
Total ounces = 10 + 5 + 1 = 16
Standard Material Cost = ( × 0.80) + (
× 4) + (
× 19)
Standard Material Cost = $ 2.9375
Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department.
Standard Direct Labor Cost = × 12.70 +
× 27
Standard Direct Labor Cost = $2.4617
Variable overhead is applied at a rate of $37.00 per direct labor hour
Standard Variable overhead cost = 6/60 × 37
Standard Variable overhead cost = $ 3.70
Standard Fixed overhead cost = 6/60 × 60
Standard Fixed overhead cost = $ 6
Standard cost for a pound = $2.9375 + $2.4617 + $3.70 + $6
Standard cost for a pound = $15.10
Answers
Answer:
B. A contra liability
Explanation:
A contra liability account is an account that is paired with another liability account and used to reduce the liability in that account. The Discount on Bonds Payable, decreases the Value of Bonds.
Final answer:
The 'Discount on Bonds Payable' account is a contra liability. It's used to reduce the balance of the 'Bonds Payable' account. The discount is slowly amortized to interest expense over time.
Explanation:
The Discount on Bonds Payable account is a contra liability. In accounting, contra accounts are used to reduce the balance of their corresponding main accounts. Here, 'Discount on Bonds Payable' is used to reduce the balance of the 'Bonds Payable' account. For example, if a $10000 Bond is issued at a discount for $9500, the 'Bonds Payable' account would show $10000 and the 'Discount on Bonds Payable' would show $500 (which is a contra liability, not a regular liability). Over time, this discount is slowly amortized to interest expense, reducing the balance of the 'Discount on Bonds Payable' account and increasing the carrying value of the 'Bonds Payable' account.
Learn more about Discount on Bonds Payable here:
#SPJ6
Answers
Answer: a. in the short run but not in the long run
Explanation:
The Short Run is usually considered in Economics/ Business as a point in time where at least ONE factor of production is FIXED. This factor is usually the Factory because it is hard to change the capacity of a Factory in the Short run. For instance a wing might need to be constructed. Labour on the other hand is considered variable in the Short run though because more people can be hired and the people already hired can put in more overtime.
The Long Run is classified as a point where EVERY factor of production is Variable. There is enough time to even change the capacity of a Factory. So here even Factory is Variable.