Answer:
D. Seven months.
Explanation:
Bond is defined as a debt instrument that shows the indebtedness big the bond issuer to the bond holder. They are units of cooperates debt issued by companies and they are tradeable. For example corporate bond and municipal bonds.
When a bond is issued on June 1 , with repayment of October 1 and April 1. The interest expense by October will be for 4 months.
However as at December 31, 2009 the accrued interest that will be recognised will be for October to December (that is for 3 months). Though it has not been paid it will be recognised at the end of the accounting period.
This gives a total of 7 months interest expense.
Answer:
Option (b) is correct.
Explanation:
Given that,
Net sales = $4,885,340
Cost of goods sold = (2,942,353 )
Selling expenses = (884,685 )
Operating income = $1,058,302
Interest expense = $(55,240 )
Earnings before income taxes = $1,003,062
Income tax expense = $(401,225 )
Net income = $ 601,837
EBIT = Net income + Income tax expense + Interest expense
= $1,003,062 + $401,225 + $55,240
= $1,058,302
Times interest earned ratio in 2017:
= EBIT ÷ Interest expense
= $1,058,302 ÷ $55,240
= 19.1582 or 19.16
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating expenses $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
Answer:
I used an excel spreadsheet since there is not enough room here. I ordered the given data:
Fixed Variable Actual Total
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating exp. $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The actual results yielded an unfavorable operating income variance. Operating income = $14,065, unfavorable variance = $2,645
Answer: d.an annual report for external regulators such as the SEC
Explanation:
A managerial accountant is someone who records and analyzes the financial information for an organization. The data analysed will then be used to form financial decisions which can help the organization's growth.
Managerial accountants prepared ls financial information for internal reporting and not external reporting. Therefore, of the options given, the managerial accountants can prepare all the reports except the annual report for external regulators such as the SEC.
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
Recording the sales transaction:
It is given that the company delivered five rebuilt pianos to customers who paid $14,500 in cash. It means the company had made cash sales to the customer. To record the cash sales, Cash account is debited and Sales Revenue account is credited. Hence, the journal entry for the sales shall be as follows:
Cash Debit $14,500
Sales Revenue Credit $14,500
(Being goods sold for cash)
The condition of exchange that is being met when Small describes how his customers choose to purchase his clothes (by evaluating that his brand is environmentally conscientious, whereas most other brands are not) is that each party believes it is appropriate or desirable to deal with the other party.