Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?

Answer:

Prior principal approval must be obtained and a copy of the speech must be retained in your firm's Office of Supervisory Jurisdiction

Explanation:

Because the speech is to be givento 35 attendees, it is under the Retail Communication. Every speech should be honest and of good taste; and the speech must be informational, but far from promotional.

It is not required that the speech content has to be pre-filed with the SEC. A copy must be kept a period of f 3 years for inspection by FINRA examiners. The speech script would be kept on file in the firm's supervisory compliance office that is the Office of Supervisory Jurisdiction.

Answer:

All statement are correct except the the second one.

Explanation:

• Ordinary annuities make fixed payments at the end of each period for a certain time period.

True. the differentiating feature between ordinary annuities and annuity dues is the timing of the cash-flows- If payments are made at the end of each period, the payment stream is an ordinary annuity but if payments are made at the beginning of each period, then the stream is an annuity due.

• An annuity due is an annuity that makes a payment at the end of each period for a certain time period.

False. with an annuity due, payments are made at the beginning of each period.

• An annuity due earns more interest than an ordinary annuity of equal time.

True. Payments are made sooner in an annuity due, with the 1st payment made at the beginning of the first period and the last payment being made at the beginning of the last period. Thus each payment earns interest and as a result, both the present value and the future value are higher than that of an ordinary annuity.

A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.

True. A perpetuity is a stream of cash-flows starting at a certain date with equal payments at equal intervals but with no terminal date. Therefore the stream of cash-flows is expected to continue forever- which makes it an infinite annuity.

Answer:

Total income= $16,440

Explanation:

Giving the following information:

Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Bruce works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. With this policy in place, if Bruce works 600 hours, his income will be.

Work= 600*6= 3,600

Welfare= 15,000 - (3600*0.60)= 12,840

Total income= $16,440

Answer:

True

Explanation: If you have overdraft protection your account

Answer:

January 1, Year 1    Cash                                         $56017.5 Dr

                                Discount on Bonds Payable   $1732.5 Dr

                                        Bonds Payable                         $57750 Cr

Explanation:

The value of bonds which are issued at par is denoted by 100. If the bonds are issued at anything above 100 denomination, this means that the bonds are issued at a premium and if the denoted figure is less than 100, like in this question it is 97, the bonds are issued at a discount.

The cash received on the issuance of this bond will be 97% of the face value of the bond and the 3% will be the discount on the issuance of these bonds.

Thus, the cash received is = 57750 * 97% = $56017.5

The discount on Bonds Payable = 57750 - 56017.5 = $1732.5

The journal entry to record the bond issuance and the receipt of cash would be:

Date                 Account title                             Debit              Credit

Year 1              Cash                                         $56,017.5

                        Discount on Bonds Payable   $1, 732.5 Dr

                        Bonds Payable                                                $57, 750 Cr

How to make the journal entry?

Since the bonds were issued at 97, this means they were issued at a discount. The discount on bonds payable is the difference between the face value and the issue price.

Issue Price = $57,750 x 97%

= $56,017.50

Bond Discount = $57,750 - $56,017.50

= $1,732.50

The journal entry to record the issuance of the bonds on January 1, Year 1, would include:

Debit Cash for the amount received ($56,017.50).

Debit Discount on Bonds Payable for the discount amount ($1,732.50).

Credit Bonds Payable for the face value of the bonds ($57,750).

This entry reflects the receipt of cash and the creation of a liability for the face value of the bonds. The discount account represents the additional interest expense that will be recognized over the life of the bonds.

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Answer:

c) 8.44x

Explanation:

Total current assets = cash + account receivable + inventory

⇔ $79,000 = $35,550 + $19,750 + Inventory

⇒ Inventory = $79,000 - $35,550 - $19,750 = $23,700

The inventory circles based on annual sales = Sales/ inventory = $200,000/ $23,700 = 8.44

The calculate how often Walker Telecommunications sold and replaced its inventory over the past year, we can use the Inventory Turnover Ratio formula.

Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory

However, we don't have the exact COGS information, but we can use the Cost of Goods Sold to Sales ratio (COGS/Sales) to estimate it.

Given that the company reported annual sales of $200,000, we need to find the COGS.

COGS/Sales = (COGS) / ($200,000)

We can rearrange the formula to find COGS:

COGS = (COGS/Sales) * ($200,000)

To find the average inventory, we can use the following formula:

Average Inventory = (Beginning Inventory + Ending Inventory) / 2

Since we are looking at how often inventory is sold and replaced, we don't need the specific values for beginning and ending inventory.

We can use the total current assets and the quick ratio to estimate the average inventory:

Quick Ratio = (Total Current Assets - Inventory) / Total Current Liabilities

Solving for Inventory:

Inventory = Total Current Assets - (Quick Ratio * Total Current Liabilities)

Now, we can calculate the inventory turnover ratio:

Inventory Turnover Ratio = COGS / Average Inventory

Substitute the values we found:

Inventory Turnover Ratio = (COGS) / [(Total Current Assets - (Quick Ratio * Total Current Liabilities)) / 2]

Inventory Turnover Ratio = [(COGS/Sales) * ($200,000)] / [(Total Current Assets - (Quick Ratio * Total Current Liabilities)) / 2]

Plugging in the given values:

Inventory Turnover Ratio = [(COGS/Sales) * ($200,000)] / [(79,000 - (2.00 * 27,650)) / 2]

Now, calculate the Inventory Turnover Ratio:

Inventory Turnover Ratio ≈ 8.44x

So, over the past year, Walker Telecommunications sold and replaced its inventory approximately 8.44 times.

Therefore, the answer is (c) 8.44x.

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