Answer:
1. What is the amount of the discount on these bonds at issuance?
$18,885
2. How much total bond interest expense will be recognized over the life of these bonds?
total interest expense = ($248,000 x 7% x 3 years) + $18,885 = $70,965
3. Prepare an effective interest amortization table for these bonds.
see attached PDF
Explanation:
the journal entry to record the issuance
January 1, 2019, bonds issued at a discount
Dr Cash 229,115
Dr Discount on bonds payable 18,885
Cr Bonds payable 248,000
The discount on the bonds at issuance is $18,885. The total bond interest paid over the life of the bonds is $52,080. An effective interest amortization table can be created to track the interest expense, reduction of discount, and carrying value at each period.
In the scenario you described, the bonds have a par value of $248,000 and they were sold for $229,115. The discount on the bonds at issuance is the difference between the par value and the amount they were sold for: $248,000 - $229,115 = $18,885.
The annual contract rate is 7%. Therefore, the annual interest is $248,000 * 7% = $17,360. Since interest is paid semiannually, each interest payment will be $17,360 / 2 = $8,680. Since the bonds mature in three years, there will be 3 * 2 = 6 interest payments, so total bond interest paid over the life of the bonds is $8,680 * 6 = $52,080.
An effective interest amortization table can be created by calculating the interest expense at each period (at the market rate of 10%), the amount of the payment that reduces the discount, and the carrying value of the bonds at each period.
#SPJ11
Answer:
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows: 1. Raise social security retirement age
2. Reduce medicare for wealthy seniors
3. Raise medical healthcare contributions question
According to davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the united states. in his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the democrats aim at making sure that everyone lives in an “equitable, fair society”. i think i would agree more with the democrat philosophy because equity and fairness to everyone is a key public value outcome in every society.question
The two fiscal issues that are hyper-partisan are as follows: i. military defense spending. ii. issues of taxes - the parties are so divided chiefly because they have extreme opposites points of view on several issues.- on the issues, i lean towards the democrat view. question
Towards the end of his talk, davidson says he fears that the longer we delay any solution, the more the world will look to the u.s. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. he explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.
Answer:
The fiscal solutions that Davidson offer are raising the social security retirement age, reducing Medicare for wealthy seniors, and raising medical healthcare contributions question.
Explanation:
Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 55 Insurance Expense 22 Salaries Payable 23 Unearned Fees 59 Miscellaneous Expense
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
The May transactions are:
May 5: Received cash from clients on account, $2,450.
May 9: Paid cash for a newspaper advertisement, $225.
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
May 15: Recorded services provided on account for the period May 1-15, $9,180.
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
May 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.
May 20: Purchased supplies on account, $735.
May 21: Recorded services provided on account for the period May 16-20, $4,820.
May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.
May 27: Received cash from clients on account, $9,520.
May 28: Paid part-time receptionist for two weeks' salary, $750.
May 30: Paid telephone bill for May, $260.
May 31: Paid electricity bill for May, $810.
May 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.
May 31: Recorded services provided on account for the remainder of May, $2,650.
May 31: Kelly withdrew $10,500 for personal use.
Solution:
Kelly Pitney
General Journal:
May 3:
Debit Cash $4,500
Credit Unearned Fees $4,500
To record advance payment for services.
May 5:
Debit Cash $2,450
Credit Accounts Receivable $2,450
To record cash receipt on account.
May 9:
Debit Miscellaneous Expense $225
Credit Cash $225
To record cash paid for a newspaper advertisement.
May 13:
Debit Accounts Payable $640
Credit Cash $640
To record part debt settlement to Office Station Co.
May 15:
Debit Accounts Receivable $9,180
Credit Fees Earned $9,180
To record services provided to clients on account, May 1 to 15.
May 16:
Debit Salaries Payable $750
Credit Cash $750
To record salaries paid.
May 17:
Debit Cash $8,360
Credit Fees Earned $8,360
To record cash receipt from clients for fees earned, May 1 to 16.
May 20:
Debit Supplies $735
Credit Accounts Payable $735
To record supplies purchased on account.
May 21:
Debit Accounts Receivable $4,820
Credit Fees Earned $4,820
To record fees earned, May 16 - 20.
May 25:
Debit Cash $7,900
Credit Fees Earned $7,900
To record cash receipt from clients for fees earned, May 17 - 23.
May 27:
Debit Cash $9,520
Credit Accounts Receivable $9,520
To record cash receipt from clients on account.
May 28:
Debit Salaries Payable $750
Credit Cash $750
To record salary paid.
May 30:
Debit Miscellaneous Expense $260
Credit Cash $260
To record payment of telephone bill for May.
May 31:
Debit Miscellaneous Expense $810
Credit Cash $810
To record electricity bill for May paid.
May 31:
Debit Cash $3,300
Credit Earned Fees $3,300
To record cash receipts from clients for May 26 - 31.
May 31:
Debit Accounts Receivable $2,650
Credit Fees Earned $2,650
To record fees earned for services on account.
May 31:
Debit Kelly Pitney, Drawing $10,500
Credit Cash $10,500
To record drawing for personal use.
Explanation:
The general journal is an important accounting tool that helps to record transactions as they occur daily. It identifies the two accounts involved in each transaction, which should be debited or credited as the case may be.
The account that is debited is the account that receives value. The account that is credited the account that gives value. Sometimes, for each business transaction or event more than two accounts are involved.
It is from the general journal that transactions are posted to the general ledger. The general ledger is a book that records transactions affecting all the accounts. It is not necessarily in a physical book form.
Answer:
*May 16
Salaries Expense: Debit 630
Salaries Payable: Debit 120
Cash: Credit 750
Explanation:
The salaries payable is equaled to $120 as states in the balance sheet. To find the salaries expense, subtract the cash and the salaries payable.
( 750 - 120 = 630 )
Determine the new selling price to break even next round.
Answer:
$18.80
Explanation:
New selling price = Old selling price - Adjustments
Old selling price = $19.00, Adjustments = 1 quarter of reduced raw material costs difference
New selling price = $19.00 - ($8.13 - $7.33)/4
New selling price = $19.00 - $0.20
New selling price = $18.80
So, the new selling price to break even next round is $18.80.
a. Identify, analyze, plan, track, and control
b. Analyze, track, identify, plan, and control
c. Identify assets, threats, vulnerabilities, and exposure factor
d. Cost benefit analysis, control, and review
Answer:
A
Explanation:
Identify, analyze, plan, track, and control
Hourly wage rate $12
Payroll taxes of wage rate 10%
Setup and downtime of actual labor time 20%
Cleanup and rest periods 30%
of actual labor time
Fringe benefits 25%
of wage rate
a. Determine the standard direct labor hours per brake repairs.
(Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per brake repair_____________
b. Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hourly rate __________
c. Determine the standard direct labor cost per brake repair. (Round answer to 2 decimal places, e.g. 1.25.)
Answer:
a) standard direct labor hours per brake repair = hour spent repairing the brakes + setup time + cleanup time = 1 + (1 x 20%) + (1 x 30%) = 1.5 hours per brake repair
b) standard direct labor hourly rate = hourly wage rate + payroll taxes + fringe benefits = $12 + ($12 x 10%) + ($12 x 25%) = $16.20
c) standard direct labor cost per brake repair = 1.5 x $16.20 = $24.30