Exercise 10-10 Whitmore Company issued $408,500 of 5-year, 7% bonds at 99 on January 1, 2017. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS
Compute the total cost of borrowing for these bonds
. Total cost of borrowing $____________ SHOW LIST OF ACCOUNTS
Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS
Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104.
Total cost of borrowing $___________
list of accounts:
Exercise 10-10
| Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Bonds Payable Cash Common Stock Cost of Goods Sold Depreciation Expense Discount on Bonds Payable Equipment Federal Income Taxes Payable Federal Uemployment Taxes Payable FICA Taxes Payable Gain on Bond Redemption Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Inventory Lease Liability Loss on Bond Redemption Mortgage Payable Notes Payable Notes Receivable Other Operating Expenses Paid-in Capital in Excess of Par-Common Stock Payroll Tax Expense Preferred Stock Premium on Bonds Payable Prepaid Insurance Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Sales Taxes Payable Service Revenue State Income Taxes Payable State Unemployment Taxes Payable Subscription Revenue Ticket Revenue Unearned Service Revenue Unearned Subscription Revenue Unearned Ticket Revenue |
In: Accounting
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,550,000 | $ | 4,250,000 | $ | 1,870,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 1,700,000 | 0 | ||||||
| Billings during the year | 2,050,000 | 4,750,000 | 3,200,000 | ||||||
| Cash collections during the year | 1,825,000 | 4,100,000 | 4,075,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion.
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
2-a. In the journal below, complete the
necessary journal entries for the year 2021 (credit "Various
accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2022 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2023 (credit "Various accounts" for
construction costs incurred).
3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,550,000 | $ | 3,825,000 | $ | 3,225,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 3,125,000 | 0 | ||||||
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,550,000 | $ | 3,825,000 | $ | 3,975,000 | |||
| Estimated costs to complete as of year-end | 5,950,000 | 4,150,000 | 0 | ||||||
2021 2022 2023
Revenue ______ _______ ________
Gross P _______ _______ ________
In: Accounting
This past year, your team made $80,000 in net revenue from concession sales. You decide to take 10% of that net revenue and invest it for 3 years with a guaranteed 7% annual return. What is the future value of the money you invested at the end of 3 years? (FV = C0 x(1 + r)t)
In: Finance
In the short run, under what conditions should the
firm shut down?
average total cost at the minimum point
price greater than average variable cost
price less than average variable cost
marginal revenue greater than marginal cost
marginal revenue greater than average total cost
In: Economics
The balance of payments is
the difference between the flow of money into and out of a country.
the difference between revenue earned from domestic operations and revenue earned from foreign operations.
the amount of money attributed to activities that are outsourced.
the difference between a country's imports and its exports.
the amount of money collected in taxes from foreign direct investment.
In: Economics
A not-for-profit organization receives a restricted gift. When and in which type of fund should it recognize the revenue? When and in which type of fund should it recognize the related expense? What is the reason for the apparent inconsistencies between the fund types in which the revenue and expenses are reported? Include a link to an article or current event to support your position.
In: Accounting
Compute the price elasticity of demand if price increases from $10 to $12 and quantity demanded falls from 600 to 400. Use the value obtained and a specific example to determine whether price must be increased or decreased to increase total revenue. Explain why. Note: Explain only how to increase total revenue, not decrease it.
In: Economics
Kathonzweni Holdings Limited has investment interests in three companies. Kanzokea Video Limited (KVL), Kithuki Hauliers Limited (KHL) and Mbuvo Fisheries Limited (TFL). The following financial data relate to these companies.
1. As at 31 December 2001, the financial statements of two of the companies revealed the following information:
|
Company |
Price of share Sh. |
Earnings per share Sh. |
Dividend per share Sh. |
|
Kanzokea Video Ltd. (KVL) Kithuki Hauliers Ltd. (KHL) |
160 270 |
8 18 |
8 9 |
2. Earnings and dividend information for Mbuvo Fisheries Ltd. (TFL) for the
past five years is given below:
|
Year ended 31 December |
1997 Sh. |
1998 Sh. |
1999 Sh. |
2000 Sh. |
2001 Sh. |
|
Earnings per share Dividend per share |
5.0 3.0 |
6.0 3.0 |
7.0 3.5 |
10.0 5.0 |
12.0 5.5 |
The estimated return on equity before tax required by investors in Turkana Fisheries Ltd.’s shares is 20%.
Required:
(i) For Kanzokea Video Ltd. (KVL) and Kithuki Hauliers Ltd. (KHL), determine
and compare:
(ii)Using the dividends growth model, determine the market value of 1,000 shares held in Mbuvo Fisheries Ltd. (TFL) as at 31 December 2001.
In: Finance
1. It has been suggested that global warming may increase the frequency of hurricanes. The table given below shows the number of major Atlantic hurricanes recorded annually before and after 1990.
| before 1995 | after 1995 | |||
| year | # of storms | year | # of storms | |
| 1976 | 2 | 1996 | 6 | |
| 1977 | 1 | 1997 | 1 | |
| 1978 | 2 | 1998 | 3 | |
| 1979 | 2 | 1999 | 5 | |
| 1980 | 2 | 2000 | 3 | |
| 1981 | 3 | 2001 | 4 | |
| 1982 | 1 | 2002 | 2 | |
| 1983 | 1 | 2003 | 3 | |
| 1984 | 1 | 2004 | 6 | |
| 1985 | 3 | 2005 | 7 | |
| 1986 | 0 | 2006 | 2 | |
| 1987 | 1 | 2007 | 2 | |
| 1988 | 3 | 2008 | 5 | |
| 1989 | 2 | 2009 | 2 | |
| 1990 | 1 | 2010 | 5 | |
| 1991 | 2 | 2011 | 4 | |
| 1992 | 1 | 2012 | 2 | |
| 1993 | 1 | 2013 | 0 | |
| 1994 | 0 | 2014 | 2 | |
| 1995 | 5 | 2015 | 2 | |
Does this data is sufficient enough to claim that the number of annual hurricanes increased since 1995? Do the test at 8% significance level. To do the test, answer the following: a. Write down the null and alternative hypotheses. b. Get the excel output and answer the following: i. Fill the cell with the p-value of the test with green color ii. Fill the cell with the test statistic of the test with yellow color
In: Statistics and Probability
| You have observed the following returns over time: | Assume the risk-free rate is 3.55% and the market risk premium is 4.60%. | ||||||||||||
| Year | Stock A | Stock B | Market | INPUT DATA | rRF | 3.55% | Market Risk Premium | 4.60% | |||||
| 1997 | 14.000% | 15.000% | 13.143% | a. What are the betas of Stocks A and B? | |||||||||
| 1998 | 11.000% | 9.000% | 11.029% | bA | bB | ||||||||
| 1999 | -2.500% | 5.000% | 4.109% | ||||||||||
| 2000 | 14.000% | 7.500% | 5.097% | b. What are the required rates of return for Stocks A and B? | |||||||||
| 2001 | 20.000% | 13.500% | 19.926% | rA | rB | ||||||||
| 2002 | 21.500% | 14.000% | 24.869% | ||||||||||
| 2003 | 22.400% | 13.500% | 21.903% | c. What is the required rate of return for a portfolio consisting of 40% A and 60% B? | |||||||||
| 2004 | 19.900% | 14.400% | 15.972% | INPUT DATA | wA | 40.00% | rp | ||||||
| 2005 | 21.100% | 16.700% | 13.006% | ||||||||||
| 2006 | 24.000% | 18.800% | 18.937% | d. Stock A is trading at a price consistent with the security market line. If your analysis suggests that Stock A will provide a return above the SML, does your analysis suggest that Stock A is undervalued or overvalued? Explain. | |||||||||
| 2007 | 26.300% | 19.700% | 16.960% | ||||||||||
| 2008 | 25.500% | 21.100% | 17.949% | ||||||||||
| 2009 | 22.100% | 23.400% | 19.926% | ||||||||||
| 2010 | 13.500% | 11.500% | 18.937% | ||||||||||
| 2011 | 6.400% | 8.800% | 10.040% | ||||||||||
| 2012 | -1.100% | 4.200% | -1.823% | ||||||||||
| 2013 | -4.000% | 5.600% | -1.328% | ||||||||||
| 2014 | 6.500% | 6.800% | 5.097% | ||||||||||
| 2015 | 7.400% | 8.700% | 10.040% | ||||||||||
| 2016 | 9.900% | 9.900% | 13.006% | ||||||||||
In: Finance