What is the discount yield, bond equivalent yield, and effective annual return on a $2 million commercial paper issue that currently sells at 98.25 percent of its face value and is 128 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

Answer:

Cash would be debited $5,000 on the left side of the T account. Unearned programming service revenue will be credited $5,000 on the right side of T account.

Explanation:

When cash is received, cash increases and is debited by $5,000 (note Cash is an asset account, when asset and expense accounts increase they are debited. When revenue, liability, and owner's equity increase they are credited).

The revenue for this service is not earned yet so we pass the other leg of the entry to Unearned Programming Revenue. It is a revenue account so when it increases we credit. So we credit $5,000 to this account.

Final answer:

When a business receives cash in advance for services, this is treated as a liability called 'Unearned Revenue'. The Cash account would be debited (increased) by $5,000 and the Unearned Revenue account would be credited (increased) by $5,000.

Explanation:

When Major Programming receives $5,000 in advance for providing programming services, this is considered as prepayment and thus, it is recorded as a liability on the balance sheet. In terms of T-accounts, it would be recorded as follows:

• Cash (an asset account) would be debited (increased) by $5,000.
• Unearned Revenue (a liability account) would be credited (increased) by $5,000.

Therefore, the T-accounts would reflect an increase in both Cash and Unearned Revenue by $5,000 each, resulting from this transaction.

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Answer:

the minimum price depends on the owner's discount rate. For example, if the discount rate is 12% per year or 1% per month, then the price should equal:

PV =  $1,000,000 x 90.81942 (PVIFA, 1%, 240 periods) = $90,819,420

You would need to adjust the PVIFA depending on the owner's discount rate; the higher the rate, the lower the price.

Answer:

Preparation of Cash flow statement is below:-

Explanation:

Please find the full information of question

The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.

                    Nosker Company

            Statement of cash flow

         For the year ended 31 December, 2017

Cash flow from operating activities

Receipt from customers       $228,300

($242,100 - $13,800)

Less Cash payment

Suppliers                                $173,500

($175,500 + $10,600 - $12,600)

Operating expenses             $8,300

(23,900 - $15,600)

Income tax expenses           $900

($8,100 + $900)

Interest expenses                $35,100

Cash flow from investing activities

Sale of equipment                                       $8,700

Net cash provided by Investing activities  $8,700

Cash flow from financing activities

Issuance of company stock                         $4,600

Less: Land Redemption                                $6,200

Less: Payment of cash dividend                   $25,400

Net cash used by financing activities           $27,000

Net Increase in cash                                         $16,800

Beginning cash                                                 $19,600

Cash at end of period                                       $36,400

Answer:

Explanation:

a. The computation of the economic order quantity is shown below:

=

where,

Carrying cost = $20 × 15% = 3

And, the annual demand = 450 bicycles ×  12 months × 2 tyres = 10,800

And, the ordering cost is $50

Now put these values to the above formula  

So, the value would equal to

=

= 600 tires

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $10,800 ÷ 600 tires

= 18 orders

c. The average  annual ordering cost would equal to

= Number of orders × ordering cost

= 18 orders × $50

= $900

Final answer:

The Economic Order Quantity for the company is around 240 units. This leads to an estimated 23 orders per year with an average annual ordering cost of $1150.

Explanation:

The Economic Order Quantity (EOQ) is calculated using the equation √((2DS)/H). In this example, D represents the demand rate which is the number of bicycles produced a year (450 per month times 12, totaling 5400). S represents the ordering cost ($50) and H represents the holding cost which is 15% of the tire cost ($20) per unit, totaling $3 per unit.

So if you substitute these values into the formula, the EOQ equals √((2 * 5400 * 50)/3), which results in approximately 240 units. From this solution, the number of orders per year would be the annual demand divided by the EOQ, i.e., 5400 / 240 giving approximately 22.5 orders (rounded upwards it means 23 orders per year). The average annual ordering cost would be the cost per order times the number of orders per year (23 * $50), resulting in $1150.

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Answer:

Allocated administrative expense to Meat department = $17,000

Explanation:

The basis of allocating the administrative expense is the floor space occupied by the the department.

Administrative  expense

= Floor space occupied/Total floor area × Administrative expense

Total floor area=  (1,470+980+2,450)= 4,900 square feet

Floor area occupied by meat department = 2,450

Administrative expense = $34,000

Allocated administrative expense to Meat department:

= (2,450/4,900) ×  $34,000 = $17,000

= $17,000

Answer:

$17,000

Explanation:

Using the floor spacing occupied by each department as the basis for the allocation of the administrative expense. In other words, the bigger the square feet occupied, the bigger the total administrative expense to be allocated.

Given

Department       Square Feet       Dollar Sales

Produce                 1,470                  $ 99,000

Bakery                      980                 $ 49,000

Meats                     2,450                 $ 61,000

Totals                     4,900               $ 209,000

And the Amount Administrative Square feet of floor space $ 34,000

Then the administrative cost allocated to the meat department

= (2450/4900) * $ 34,000

= $17,000

Answer:

Dr. Allowance for Doubtful Accounts  $7,400

Cr. Accounts Receivable                       $7,400

Explanation:

A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.