BUSINESS COLLEGE

On July 1, Alvarez, Inc. purchased merchandise for $10,800 with terms of 2/10, n/30. On July 5, the firm returned $1,500 of the merchandise to the seller. Payment of the account occurred on July 8. Alvarez uses the perpetual inventory system. Required a. Prepare the journal entries for July 1, July 5, and July 8.

Answers

Answer 1

Answer:

Answer:

Explanation:

The journal entries are shown below:

On July 1

Merchandise Inventory A/c $10,800

To Accounts payable A/c $10,800

(Being goods purchased on credit)

On July 5

Accounts payable A/c Dr $1,500

To Merchandise Inventory A/c $1,500

(Being goods returned)

On July 8

Accounts payable A/c Dr $9,300 ($10,800 - $1,500)

To Cash A/c $9,114

To Merchandise Inventory A/c $186 ($10,800 - $1,500)× 2%

(Being due amount is paid and the remaining balance is credited to the cash account)

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On January 1, 2018, Westside Sales issued $ 20 comma 000 in bonds for $ 21 comma 800. These are eightminusyear bonds with a stated interest rate of 10% that pay semiannual interest. Westside Sales uses the straightminusline method to amortize the bond premium. After the first interest payment on June 30, 2018, what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)

Answers

Answer:

$21,687.5

Explanation:

Premium on bonds payable = $21,800 - $20,000= $1,800

Interest payments = 8 years X 2 semiannual interest payments per year = 16 payments

Premium ammortisation = $1,800 / 16 = $112.5

Carrying value of the bond = $21,800 - $112.5 = $21,687.5

Medallion Cooling Systems, Inc., has total assets of $10,000,000, EBIT of $2,000,000, and preferred dividends of $200,000 and is taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness, and the overall required return on investment:,a. Calculate earnings per share for each level of indebtedness.,

b. Use Equation 13.12 and the earnings per share calculated in part a to calculate a price per share for each level of indebtedness.,

c. Choose the optimal capital structure. Justify your choice

Answers

Answer:

Explanation:

The two attached pictures shows the explanation for this problem. I hope it help you. Thank you

Glenville Company has the following information for April: Cost of direct materials used in production $280,000 Direct labor 324,000 Factory overhead 188,900 Work in process inventory, April 1 72,300 Work in process inventory, April 30 76,800 Finished goods inventory, April 1 39,600 Finished goods inventory, April 30 41,200 a. For April, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured.

Answers

Answer:

Part 1 . Determine the cost of goods manufactured

Direct materials $280,000

Direct labor $324,000

Factory overhead $188,900

Add Opening Stock of Work In Progress Inventory $72,300

Less Closing Stock of Work In Progress Inventory $76,800

Cost of Goods Manufactured $788,700

Therefore cost of goods manufactured is $788,700

Part 2 . Statement of Cost of Goods Manufactured

Opening Stock of Finished Goods Inventory 39,600

Add Cost of Goods Manufactured 788,700

Less Closing Stock of Finished Goods (41,200)

Cost of Goods Manufactured 787100

Explanation:

Part 1 . Determine the cost of goods manufactured

This is a calculation of all Overheads Incurred in the Manufacturing process

Part 2 . Statement of Cost of Goods Manufactured

It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use

Milo receives a commission of on all sales. If his commission on a sale was , find the cost of the item he sold.

Answers

Answer: $1,256

Explanation:

Milo makes 6% on the sales that he makes.

The $75.36 that he made from this sale is therefore 6% of the cost of the item sold.

Assuming the item was x, the cost is;

6% * x = 75.36

x = 75.36/6%

x = $1,256

The cost of the item that Milo sold can be found by dividing the known commission by the commission rate. In this case, the item cost $1000.

The question of finding the cost of an item based on a known commission is a question of working backwards from the commission to the total sale amount. This can be understood as a simple mathematical problem related to percentages.

If Milo's commission was $100, and the commission rate is 10% (as mentioned in the question), then we can formulate this as x * 0.10 = $100, wherein x represents the total sale amount. To find x, we can rearrange the formula to x = $100 / 0.10, which equals to $1000. Hence, the cost of the item that Milo sold was $1000.

To find the cost of the item Milo sold, set up an equation using the commission rate and the commission earned.

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true false greater than 11 percent a bond with an $100 annual interest payment with five years to maturity would sell for a premium if interest rates were below 9 percent

Answers

Answer:

True

Explanation:

Since annual interest payment, coupon payment, is $100, it shows that the face value of the bond is $1,000, effectively the coupon rate is 10%($100/$1000) whereas the discount rate which is the yield to maturity with which to present value the future cash flows is below 9%, and when coupon rate is greater than the yield, the bond sells at a premium to its face value.

Since the coupon rate is higher it is safe to conclude that the bond would sell at a premium

While Mary Corens was a student at the University of Tennessee, she borrowed $8,000 in student loans at an annual interest rate of 9%. If Mary repays $1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.