In 2005, ABC Company issued $100,000 of 20-year bonds at face value. Ten years later, in 2015, the company retired the bonds early by purchasing them in the open market at $101,000. The entry to record this transaction includes a:

Answers

Answer 1

Answer:

Answer:

b. debit to Loss on Bond Retirement of $1,000.

Explanation:

Options are "A. credit to Gain on Bond Retirement of $1,000. B. debit to Loss on Bond Retirement of $1,000. C. debit to Bonds Payable of $101,000. D. credit to Cash of $100,000."

When a bond is retired before maturity a gain or loss may arise. In such case if the price paid to retire the bonds is greater the carrying amount of bonds then the company need to record a loss on retirement in the book. On the other hand if the price paid is less than the carrying amount of the bonds at retirement, then the company records a gain on retirement of bonds.

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The consumer packaged goods industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result, Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream respectively, both reduced their earnings forecasts. However, Procter & Gamble, another consumer packaged goods company, did not. At P&G, innovation is a key attribute, which allowed the firm to update all 200 of its brands and to develop products like Crest Whitestrips that consumers crave. P&G also used its marketing know how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G would indicate that soaring raw materials prices are a __________ while the product placement that features its brands on TV shows is a _________.A. strength; weakness
B. weakness; threat
C. threat; opportunity
D. opportunity; threat
E. opportunity; strength

Answers

Answer:

C. threat; opportunity

Explanation:

A SWOT analysis is a tool that companies use to identify their strengths, weaknesses, opportunities and threats:

-Strengths refer to the things that the company can do well.

-Weaknesses refer to the things in which the company doesn't perform well.

-Opportunities refer to external situations that provide the company an advantage it can take to improve its performance.

-Threats refer to external situations that provide a difficult environment for the company to perfom well.

According to this, the answer is that a SWOT analysis for P&G would indicate that soaring raw materials prices are a threat because this an external situation that affects the company and the product placement that features its brands on TV shows is an opportunity because product placements are a form of advertising that the company can take advantage of to target its customers.

How does increased competition through FDI in the form of greenfield investments affect the host country

Answers

Answer: It drives down prices and increases the economic welfare of consumers.

Explanation:

Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.

With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.

Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. At the beginning of the year, customers owe Rebel $1,000. By the end of the year, customers owe $6,600. At the beginning of the year, Rebel owes salaries of $5,600. At the end of the year, Rebel owes salaries of $3,300. Determine cash-basis net income and accrual-basis net income for the year.

Answers

Answer:

The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.

Explanation:

The computation is shown below:

1. Net income under cash basis:

= Received cash from customers - paid cash for salaries

= $43,000 - $23,500

= $19,500

2. Net income under accrual basis:

= Cash received - salary paid

where,

Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year

= $6,600 + $43,000 - $1,000

= $48,600

And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year

= $5,600 + $23,500 - $3,300

= $25,800

Now put these values to the above formula

So, the value would equal to

= $48,600 - $25,800

= $22,800

1. Cash basis in as accounting method that recognizes revenues and expenses only when the cash is received or paid out.

Net income under cash basis = Received cash from customers - Cash paid for salaries

Net income under cash basis = $43,000 - $23,500

Net income under cash basis = $19,500

2. Accrual basis is as accounting method where accounting transactions are recorded for revenue when earned and expenses when incurred.

Net income under accrual basis = Cash received - Salary paid

Net income under accrual basis = (Cash owed at the end of the year + Cash received - Cash owed at the beginning of the year) - (Salary owed at the end of the year + Salary paid - Salary owed at the beginning of the year)

Net income under accrual basis = ($6,600 + $43,000 - $1,000) - ($5,600 + $23,500 - $3,300)

Net income under accrual basis = $48,600 - $25,80

Net income under accrual basis = $22,800

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A cost that changes in proportion to changes in volume of activity is a(n): Select one: a. Differential cost. b. Fixed cost. c. Incremental cost. d. Variable cost. e. Product cost.

Answers

Answer:

The correct option is D

Explanation:

Variable cost is the corporate cost or an expense which varies in proportion or relation to the production output. Increase or decrease in the variable cost grounded on the production volume of the company or firm, which in short means that increase or rise in variable cost and the production increases and fall in variable cost, production decreases.

Therefore, the cost which changes or varies in the proportion to change in the volume of the activity is known or referred as variable cost.

Denise has her heart set on being a millionaire. What payment does Denise need to make at the end of each month over the coming 44 years at 6% APR to reach her retirement goal of $1 million?

Answers

Answer:

$ 941 796

Explanation:

The present amount with compound interest is given by the following formula:

$A = P (1+(r)/(n))^(nt)$

where A = $ 1 000 000

t (years) = 44

rate = 6%

= 0.06

The formula becomes:

1 000 000 = P (1 + (0.06/44) (44*1)

1 000 000 = P (1.0618)

P = $ 941 796

so the amount needed to be deposited is $ 941 796

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs.Assume that Minneapolis’ sales by major market are:
Market
Minneapolis Medical Dental
Sales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %
Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %

Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %
Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %

Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %

Common fixed expenses
not traceable to markets 9,900 3 %

Office segment margin $ 82,500 25 %

The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.
Required:
Calculate the increased segment margin.for Medical:
Calculate the increased segment margin for Dental: