BUSINESS COLLEGE

The Gorman Group issued $870,000 of 11% bonds on June 30, 2021, for $944,646. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). Calculation Req 1 to 3 Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).)

Answers

Answer 1
Answer:

Answer:

Explanation:

December 31, 2018 Amount. Interest Rate Total Interest expense $944,646 x 5.0% = $47,232.3 Cash. $870,000 x 5.5% = $47,850 of premium on bonds $618

June 30, 2019AmountInterest Rate

Total Interest expense $944,646 x 5.0% = $47,232.3

Cash$870,000 x 5.5% = $47,850

of premium on bonds $ 464 No Date General Journal Debit Credit 1 June 30, 2018 Cash 944,646 Bonds payable 870,000 Premium on bonds payable 74,646 December 31,2018 Interest expense 47,232.3 Premium on bonds payable 618 Cash 47,850 June 30, 2019 Interest expense 47,232.2 Premium on bonds payable 618 Cash 47,850 Record the issuance of the bond on June 30, 2018.Record the interest on December 31, 2018 (at the effective rate). Record the interest on June 30, 2019 (at the effective rate). Explanation 2. December 31, 2018 Interest expense (5% × $944,646) = $47,232.3 Cash (5.5% × $870,000) = $47,850 3.June 30, 2019Interest expense (5% × [$944,646 – $618]) = $47,201.4

Cash (5.5% × $870,000) = $47,850

Related Questions

Alpha Company has budgeted activity for October to reflect net income $120,000. All sales are credit sales. Receivables are planned to increase by $35,000, payables to decrease by $25,000 and Depreciation Expense is $55,000. Use this information to determine how much cash will increase (decrease) during the month of October. (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciation expense Accounts receivable increae 100,000 (200,000) (20,000) Case ACase B Case C $310,000 15,000 $420,000 40,000 150,000 80,000 (decrease) Inventory increase (decrease) Accounts payable increase (50,000) (50,000) 120,00070,000 60,000 (220,000) (40,000) 35,000 50,000 decrease) Accrued liabilities increase (decrease) Show the operating activities section of cash flows for each of the given cases (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities Depreciation Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable Accrued Liabilities Net Cash Provided by OperatingActivities
You decide to use your department store charge card .. a lot! After seven weeks you have racked up $1,400 of debt. Your minimum monthly payment is $45, and is paid at the end of each month. If the APR is 16.80%, how long will it take you to pay the loan off? (Assume that you make the minimum payment until the debt is entirely paid off.)
________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.A) Unsought productsB) Convenience productsC) Capital itemsD) Specialty itemsE) Repair items

Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B
Selling price per unit $120 $160
Variable costs per unit 40 90
Contribution margin per unit $80 $70
Machine hours to produce 1 unit 0.4 hours 1.0 hours
Maximum unit sales per month 600 units 200 units

The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $15,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

Required:
a. Determine the contribution margin per machine hour that each product generates.
b. How many units of Product G and Product B should the company produce if it continues to operate with only one shift" How much total contribution margin does this mix produce each month?
c. If the company adds another shift, how many units of Product G and Product B should it produce? How much total contribution margin would this mix produce each month?
d.Suppose that the company determines that it can increase Product GIs maximum sales to 700 units per month by spending S 12,000 per month in marketing efforts. Should the company pursue this strategy and the double shift?

Answers

Answer and Explanation:

a. The computation of total contribution margin is shown below:-

                                                       Product G           Product B  

Contribution margin per unit a             80                        70  

Machine hours per unit b                      0.4                       1  

Contribution margin per

machine hour a × b                                200                    70

b. The computation of total contribution margin is shown below:-

                                                        Product G           Product B      Total

Maximum number of units

to be sold                                                  600                  200  

Hours required to produce

maximum units                                         240                 200            440

c. The computation of units of Product G and Product B and total contribution margin is shown below:-

                                                   Product G       Product B         Total

Hours dedicated to the

production of each product         240                   112                 352

Units produced for most

profitable sales mix  a                      600                  112  

Contribution margin per unit b         $80                  $70  

Total contribution

margin-two shifts a × b                   $48,000           $7,840       $55,840

Hours dedicated to the

production of each product                                                         35,200

Difference                                                                                     $20,640

Change in fixed costs                                                                   $15,000

Change in operating income(loss)                                              $5,640

Therefore, the company add another shifts. So, Yes it will add another shift of the company because it it income.

4. The computation of company pursue this strategy and the double shift is shown below:-

                                            Product G       Product B          Total

Hours dedicated to the

production of each product   280                72                     352

Units produced for

most profitable sales mix        700              72  

Contribution margin per unit   80                 70

Total contribution margin  56,000        5,040             61,040

Contribution margin - two shifts

without marketing campaign                                            55,840

Change in contribution margin                                         5,200

Additional marketing costs                                                $12,000

Change in fixed costs                                                         15,000

Change in operating income(loss)                                   -$21,800

The company pursue the marketing campaign, So, No because the change in operating income is in loss.

Final answer:

a. The contribution margin per machine hour for Product G is $200 per hour and for Product B is $70 per hour. b. If the company continues to operate with only one shift, it should produce 600 units of Product G and 200 units of Product B, generating a total contribution margin of $62,000 per month. c. If the company adds another shift, it should produce 440 units of Product G and 176 units of Product B, generating a total contribution margin of $100,400 per month.

Explanation:

a. The contribution margin per machine hour for Product G can be calculated by dividing the contribution margin per unit by the machine hours required to produce 1 unit. For Product G, the contribution margin per machine hour is $80 / 0.4 hours = $200 per hour. Similarly, the contribution margin per machine hour for Product B is $70 / 1.0 hours = $70 per hour.

b. If the company continues to operate with only one shift, it should produce as many units of Product G and Product B as possible within the maximum unit sales per month. From the given information, the company can produce and sell 600 units of Product G and 200 units of Product B. The total contribution margin for this mix would be (600 units x $80) + (200 units x $70) = $62,000 per month.

c. If the company adds another shift, they should produce as many units of Product G and Product B as possible within the new machine hours available. With the extra 8 hours per day for 22 days per month, the company will have an additional 8 hours x 22 days = 176 machine hours. Using this additional time and the machine hours required to produce 1 unit, the company can produce (176 hours / 0.4 hours) = 440 units of Product G and (176 hours / 1.0 hour) = 176 units of Product B. The total contribution margin for this mix would be (440 units x $200) + (176 units x $70) = $100,400 per month.

Learn more about Operating shifts and contribution margin here:

brainly.com/question/30590087

#SPJ12

Eilert Construction Company had a contract starting April 2018, to construct a $42,000,000 building that is expected to be completed in September 2019, at an estimated cost of $38,500,000. At the end of 2018, the costs to date were $17,710,000 and the estimated total costs to complete had not changed. The progress billings during 2018 were $8,400,000 and the cash collected during 2018 was $5,600,000. Eilert uses the percentage-of-completion method. [ What makes-up Construction in Process

Answers

Answer:

$20,790,000

Explanation:

Since the estimated total costs to complete had not change, the Construction is Process can be estimated as follows:

Construction in Process = Estimated total completion cost - Total costs of completion to date = $38,500,000 - $17,710,000 = $20,790,000

Ryder Supplies has its stock currently selling at $63.25. The company is expected to grow at a constant rate of 7 percent. If the appropriate discount rate is 17 percent, what is the expected dividend, a year from now?a) 4.43 b) 3.25 c) 10.75 d) 6.33

Answers

Answer:

d) 6.33

Explanation:

The computation of the expected dividend a year from now is shown below:

As we know that

Price of the stock =  Expected dividend ÷ (Required rate of return - growth rate)

Expected dividend = Price of the stock ×  (Required rate of return - growth rate)

= $63.25 × (0.17 – 0.07)

= $6.325

hence, the correct option is d. $6.33

We simply applied the above formula so that the correct value could come

And, the same is to be considered

An company buys a color printer that will cost $18,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%? A. -$3983 B. -$4002 C. -$4957 D. -$5493

Answers

Answer:

The correct answer is option (D)

Explanation:

Solution

Given that:

The present value of equity factor for 5 years at 12% discount are = 3.60478

Then,

The present value of servicing costing = -$500 * 3.60478 = -$1802.39

Thus,

The present value of cost to buy =- $18000

The total Present value = -18000 + 1802.39 = -$19802.39

So,

The equivalent annual annuity = total Present value / present value of equity factor

= -$19802.39 / 3.60478

= -$5493.37

Therefore, the equivalent annual annuity of this deal is -$5493.37

A furniture factory produced 1600 standard chairs in eight days. If the factory employed five workers, what was the labor productivity, in chairs per worker per day? A. 40 B. 100 C. 5O D.20 E. 80

Answers

Answer:

A. 40

Explanation:

Calculation for what was the labor productivity, in chairs per worker per day

Using this formula

Labor productivity per day =Company Per day output/ Number of labor

Let plug in the formula

Labor productivity per day= 1600/8 days×5 workers

Labor productivity per day=1,600/40

Labor productivity per day= 40

Therefore the Labor productivity per day will be 40

One way that teams can be broadly classified as either ____.

Answers

functional or cross-functional
Other Questions
You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs
The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.
If the tax elasticity of labor supply is 0.16, by what percentage will the quantity of labor supplied increase in response to Instructions: In part b, enter your response as a percentage rounded to one decimal place. a. A $500 per person income tax rebate check? A 4.5% increase A 2% increase A 1.5% increase No increase b. A reduction of 5 percent in marginal tax rates?
When aggregate demand is high enough to drive unemployment below the natural rate:_________a. there is downward pressure on the price level, and the government may want to conduct contractionary fiscal policy. b. the economy is slipping into a recession, and the government may want to conduct expansionary fiscal policy. c. there is upward pressure on the price level, and the government may want to conduct contractionary fiscal policy. d. there is upward pressure on the price level, and the government may want to conduct expansionary fiscal policy. e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.