The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $100 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2037 (20 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.):
Required:
1. to 3. Prepare the journal entry to record the
purchase of the bonds by Saxton-Bose on January 1, 2018, interest
revenue on June 30, 2018 and interest revenue on December 31, 2018
(at the effective rate). (Enter your answers in whole
dollars. If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
Record the purchase of the bonds by Saxton-Bose.
Record the interest revenue on June 30, 2018
Record the interest revenue on December 31,2018
In: Accounting
Please fill in the 3 blanks in the spreadsheet and then answer the two following question.
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
A. Find the missing value for outings revenue, wages, and operating income.
| BLUFF RUN GOLF COURSES | ||||||
| Income Statement | ||||||
| Month Ending July 31, 2018 | ||||||
| Blue Course | Black Course | Gold Course | ||||
| Greens fees revenue | $62,500 | $89,000 | $42,900 | |||
| Outings revenue | fill in the blank | 6,000 | 27,000 | |||
| Total revenue | $74,100 | $95,000 | $69,900 | |||
| Expenses: | ||||||
| Landscaping | $7,800 | $14,200 | $6,500 | |||
| Wages | 43,900 | fill in the blank | 32,700 | |||
| Repairs and maintenance | 5,600 | 2,600 | 4,500 | |||
| Fuel | 3,100 | 3,000 | 1,970 | |||
| Utilities | 1,800 | 3,000 | 1,600 | |||
| Total expenses | $62,200 | $79,200 | $47,270 | |||
| Operating income | $11,900 | $15,800 | $fill in the blank | |||
B. Rank the courses in order of profitability, using dollars.
C. Rank the courses in order of profitability, using percentages.
In: Accounting
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
| Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
| Revenue | $ | 277 | $ | 36,030 | |||||
| Technician wages | $ | 8,500 | $ | 8,350 | |||||
| Mobile lab operating expenses | $ | 4,500 | $ | 31 | $ | 8,680 | |||
| Office expenses | $ | 2,800 | $ | 3 | $ | 3,070 | |||
| Advertising expenses | $ | 1,610 | $ | 1,680 | |||||
| Insurance | $ | 2,880 | $ | 2,880 | |||||
| Miscellaneous expenses | $ | 950 | $ | 2 | $ | 535 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $31 per job, and the actual mobile lab operating expenses for February were $8,680. The company expected to work 140 jobs in February, but actually worked 146 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February
In: Accounting
These financial statement items are for Ivanhoe Company at
year-end, July 31, 2022.
| Salaries and wages payable | $ 3,900 | |
| Salaries and wages expense | 59,300 | |
| Supplies expense | 16,900 | |
| Equipment | 16,580 | |
| Accounts payable | 3,500 | |
| Service revenue | 67,900 | |
| Rent revenue | 9,800 | |
| Notes payable (due in 2025) | 3,000 | |
| Common stock | 16,000 | |
| Cash | 35,620 | |
| Accounts receivable | 11,000 | |
| Accumulated depreciation—equipment | 7,900 | |
| Dividends | 4,000 | |
| Depreciation expense | 4,000 | |
| Retained earnings (beginning of the year) | 35,400 |
1. Prepare an income statement for the year. Ivanhoe Company did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
2. Prepare a retained earnings statement for the year. Ivanhoe Company did not issue any new stock during the year.
3. Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.)
In: Accounting
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
| Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
| Revenue | $ | 279 | $ | 39,100 | |||||
| Technician wages | $ | 8,200 | $ | 8,050 | |||||
| Mobile lab operating expenses | $ | 4,700 | $ | 34 | $ | 9,640 | |||
| Office expenses | $ | 2,400 | $ | 3 | $ | 2,700 | |||
| Advertising expenses | $ | 1,550 | $ | 1,620 | |||||
| Insurance | $ | 2,860 | $ | 2,860 | |||||
| Miscellaneous expenses | $ | 980 | $ | 2 | $ | 585 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $34 per job, and the actual mobile lab operating expenses for February were $9,640. The company expected to work 150 jobs in February, but actually worked 152 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February
In: Accounting
2. The Larson Company prepared the following income
statement using the cash basis of
accounting:
THE LARSON COMPANY
Income Statement, Cash Basis
Year Ended December 31, 2017
Service revenue $460,000
Expenses 220,000
Profit $240,000
Additional data:
1. Service revenue includes $40,000 collected from a customer for
whom services
were provided in 2016, and who was billed in 2016.
2. There are an additional $15,000 of expenses that were incurred
on account, for
which payment will not be made until 2018.
3. Depreciation on a company automobile for the year amounted to
$7,000. This
amount is not included in the expenses above.
4. On December 1, 2017, paid $1,600 for two months' rent (December
and January).
This amount is included in the expenses above.
Instructions
a) Prepare Larson's income statement on the accrual basis in
conformity with
generally accepted accounting principles. Show calculations and
explain each change.
b) Explain which basis (cash or accrual) provides a better measure
of profit.
In: Accounting
13. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers. A hot dog cost $3 in 2006 and $5.40 in 2007. A hamburger cost $5 in 2006 and $6 in 2007. Which of the following statements is correct?
a. When 2006 is chosen as the base year, the consumer price index is 90 in 2007.
b. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.
c. When 2007 is chosen as the base year, the consumer price index is 100 in 2006.
d. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.
14. The CPI was 120 in 2000 and 132 in 2001. Dorgan borrowed money in 2000 and repaid the loan in 2001. If the nominal interest rate on the loan was 12 percent, then the real interest rate was
a. 2 percent.
b. 10 percent.
c. 12 percent.
d. 22 percent
15. By not taking into account the possibility of consumer substitution, the CPI
a. understates the cost of living.
b. overstates the cost of living.
c. may overstate or understate the cost of living, depending on how much prices rise.
d. may overstate or understate the cost of living, regardless of the extent to which prices rise
16. You know that a candy bar cost five cents in 1962. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?
a. five cents × (1962 CPI/ today's CPI)
b. five cents × (1962 CPI/(today's CPI - 1962 CPI))
c. five cents × (today's CPI/1962 CPI)
d. five cents × today's CPI - five cents × 1962 CPI.
17. The nominal interest rate tells you
a. how fast the number of dollars in your bank account rises over time.
b. how fast the purchasing power of your bank account rises over time.
c. the number of dollars in your bank account today.
d. the purchasing power in your bank account today.
18. Consider two countries. Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000 of whom 1,800 work 6 hours a day to make 270,000 final goods
a. Country A has higher productivity and higher real GDP per person than country B.
b. Country A has lower productivity and lower real GDP per person than country B.
c. Country A has higher productivity, but lower real GDP per person than country B.
d. Country B has lower productivity, but higher real GDP per person than country B.
19. The Peapod Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?
a. The owner's knowledge of how to prepare vegetarian entrees.
b. The money in the owner's account at the bank she borrowed money from.
c. The tables and chairs in the restaurant.
d. The land the restaurant was built on.
20. In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker
a. decreased by 1. 7 percent between 1998 and 2008.
b. remained unchanged between 1998 and 2008.
c. increased by 4. 75 percent between 1998 and 2008.
d. increased by 6. 25 percent between 1998 and 2008
In: Economics
Previously issued securities are traded among investors in the:
A. primary market B. IPO market C. secondary market D. demand market
In: Finance
(TCO E & F) A forward contract is
marked to market.
has significant default risk.
is standardized.
is traded over the counter.
is highly liquid.
In: Finance
What is Kula? What was the purpose of kula? what was traded between the islanders? where in the world did Kula take place, and documented the process?
In: Psychology