Answer:
The amount of effective interest expense that chaco will record in the first six months is $14,375
Explanation:
interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.
The interest expense is calculated by these formula
Interest expense = Effective semiannual interest rate × Outstanding balance
Interest expense = (8% ÷ 2) × $359,378 = $14,375
So the interest expense is gotten as %14,375
The Chaco Company will record an effective interest expense of $14,375.12 for the six months ended June 30, Year 1.
The effective interest method is a technique used for discounting bonds. This method is used to calculate the amount of interest expense for a specific time period. In this case, we are finding the effective interest for the six months ended June 30, Year 1 on a bond issued by the Chaco Company.
The formula for the effective interest method is: Book value of the bond at the beginning of the period X Yield rate/Number of periods per year.
The book value of the bond at the beginning of the time period (January 1, Year 1) was $359,378. The yield was 8% and there are two periods in the year because the interest is paid semiannually.
So, the effective interest for the six months ended June 30, Year 1 = $359,378 * 8%/2 = $14,375.12.
Therefore, the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1 is $14,375.12.
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Answer:
Ending inventory:
(a) specific identification = $5,885
(b) weighted average = $5,960
(c) FIFO = $5,750
(d) LIFO = $5,845
Explanation:
Date Activity Units Cost Total
Oct. 1 Beg. inventory 155 $14 $2,170
Oct. 5 Purchase 180 $13.50 $2,430
Oct. 9 Sales 240
Oct. 18 Purchase 140 $13 $1,820
Oct. 29 Sales 110
Oct. 25 Purchase 330 $12.50 $4,125
total Purchases 805 $13.10 $10,545
Cost of goods sold:
(a) specific identification = [(55 x $14) + (185 x $13,50)] + [(35 x $13) + (75 x $12.50)] = $4,660
(b) weighted average = $13.10 x 350 units = $4,585
(c) FIFO = (155 x $14) + (85 x $13.50) + (95 x $13.50) + (15 x $13) = $4,795
(d) LIFO = (180 x $13.50) + (60 x $14) + (110 x $13) = $4,700
Ending inventory:
(a) specific identification = $10,545 - $4,660 = $5,885
(b) weighted average = $10,545 - $4,585 = $5,960
(c) FIFO = $10,545 - $4,795 = $5,750
(d) LIFO = $10,545 - $4,700 = $5,845
Answer:
$31.68
Explanation:
The computation of the stock price is shown below:
= Dividend for year 1 ÷ (1 + required return)^number of years + Dividend for year 2 ÷ (1 + required return)^ number of years + Dividend for year 3 ÷ (1 + required return)^ number of years + Dividend for year 4 ÷ (1 + required return)^ number of years
= $5.30 ÷ (1 + 9.8%) + $9.40 ÷ (1 + 9.8%)^2 + $12.25 ÷ (1 + 9.8%)^3 + $14.25 ÷ (1 + 9.8%)^4
= 4.82695810564663 + 7.79692170895252 + 9.25399090557962 + 9.80404969365523
= 31.681920413834
= $31.68
Answer:
(D). Employee master file.
Explanation:
An employee master file is a file kept by an organization that contains data, records and information on the employee.
Information such as; employee's name, address, date of birth, date of hire, sales record, salary to be received, and other payment details are contained in the master file.
If an employee's hourly wage rate is changed, it will be recorded in the employee's master file.
Answer:
Accumulated depreciation on car at the end of year 2 will be 22,500
Explanation:
The unit-of use Method recognize depreciation base on the use of a cost driver. This cost driver could be miles, number of units produced, or others.
(60,000-10.000)/100,000 = .5 rate per mile
acumulated depreciation at year 2
25,000 + 20,000= 45,000 total miles driven
45,000 * 0.5 = 22,500
Answer:
Explanation:
The journal entries are shown below:
On October 1
Dividend Declared A/c Dr $650 (2,600 shares × $0.25)
To Dividend payable A/c $650
(Being dividend is declared)
On October 15
No entry is required
On October 31
Dividend payable A/c Dr $650
To Cash A/c $650
(Being dividend is paid for cash)
The company Divine Apparel declares a dividend of $0.25 on October 1, subsequently on October 31, the company pays out these dividends to all registered shareholders as of October 15. The total dividend payout would be $650.
The actions you described pertain to what is often referred to in the world of stocks and finance as dividend declaration and payment. On October 1, Divine Apparel declares a dividend of $0.25. This declaration doesn't result in a financial transaction just yet, but rather it promises a future cash outflow to shareholders.
To calculate this, we multiply the number of shares - 2,600 shares in this case - by the declared dividend of $0.25. This calculation would result in a total dividend of $650.
October 15 marks the 'record date', this is the date when the company looks at its records to see who the shareholders are. An investor must be listed as a holder of record to ensure the right of a dividend payout. It's important to note that there are no accounting entries to be made on this date, this is purely an administrative date.
Finally, October 31 is the 'payment date'. Every shareholder of record as of October 15 will receive the stipulated dividend. In this case, Divine Apparel pays out $650 in total dividends to the shareholders it had registered on October 15.
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1. Calculate the percent change in operating income expected.___ %
2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1. $___
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales= 5,000 units
Selling price= $75
The unit variable cost= $45
Total fixed cost equals= $49,500
Operating income at 5,000 units sold is $100,500.
Degree of operating leverage= 1.5
Now Head-First expects to increase sales by 10% next year.
1) % Change on income= ?
We know that the degree of operating leverage is calculated by the following formula:
degree of operating leverage= %change in income/ %change in sales
1.5= %change in income/0.10
0.15= %change in income
15%= %change in income
2) Net operating income
Sales= 5,500*75= 412,500
Total variable cost= 5,500*45= (247,500)
Contribution margin= 165,000
Fixed costs= (49,500)
Net operating income= 115,500
Change in income= (115,500 - 100,500)/100,500= 0.1493= 14.93%