Questions
Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...

Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

Plan assets $469,800
Projected benefit obligation 607,000
Pension asset/liability 137,200
Accumulated OCI (PSC) 97,100 Dr.


As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Service cost $91,100
Settlement rate, 8%
Actual return on plan assets 54,400
Amortization of prior service cost 19,100
Expected return on plan assets 51,600
Unexpected loss from change in projected benefit obligation,
   due to change in actuarial predictions
79,700
Contributions 99,500
Benefits paid retirees 85,800

Using the data above, compute pension expense for Bridgeport Corp. for the year 2020 by preparing a pension worksheet.

In: Accounting

On January 1, 2018, Loop Raceway issued 550 bonds, each with a face value of $1,000,...

On January 1, 2018, Loop Raceway issued 550 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $535,288. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required:

1. Prepare a bond amortization schedule.

2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

In: Accounting

On January 1, 2018, Loop Raceway issued 520 bonds, each with a face value of $1,000,...

On January 1, 2018, Loop Raceway issued 520 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $506,090. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

  1. 1. Prepare a bond amortization schedule.

  2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

In: Accounting

Below, you will see a pricing curve for Oil Futures. Your client is an oil producer...

  1. Below, you will see a pricing curve for Oil Futures. Your client is an oil producer (they are extracting oil from the ground and selling it to refineries)    They wish to hedge their estimated production for March 2021, June 2021, and September 2021.

Oil Pricing Curve

June 2020 $52.35

Sept 2020 $51.00

Dec 2020    $50.05

Mar 2021 $48.10

June 2021 $47.15

Sept 2021    $44.25

  1. Oil future prices are said to be in __________.
  2. What hedge rates could your client lock into today for Mar21, Jun21, and Sep21?
  3. On settlement date for each of the 3 hedges, assume the spot price of oil has dropped to $38.00 per barrel. Show the calculations (2 steps) of the settlement for each of the above three dates. ($38.00/barrel is the price for each of the three dates)

In: Finance

Between the beginning of 2020 and the middle of 2020, A. the typical interest rate on...

Between the beginning of 2020 and the middle of 2020,

A. the typical interest rate on jumbo mortgage went up, relative to the interest rate on conforming mortgages

B. the typical interest rate on conforming mortgages went up, relative to the interest rate on jumbo mortgages

In: Finance

The total population of the United States was 151, 325, 798 in 1950; it increased to...

The total population of the United States was 151, 325, 798 in 1950; it increased to 281,421,906 in 2000 and to 308,745,538 in 2010.

Find the percent change in population of the US from 1950 to 2010.

In: Statistics and Probability

If we moved from mexico to USA, Florida, and still have rental property in Mexico and...

If we moved from mexico to USA, Florida, and still have rental property in Mexico and we file taxes seperately, how do we file in US and Mexico?

In: Accounting

What does it mean to say that the US workplace is based on a male prototype...

What does it mean to say that the US workplace is based on a male prototype of the ideal worker? Describe ways that both men and women suffer from the expectation associated with this ideal.

In: Psychology

feasibility analysis on the following business, using primary or secondary research to support your decisions, and...

feasibility analysis on the following business, using primary or secondary research to support your decisions, and include information about the research in your appendix section.


Meal Planning Company

You are preparing to open a new small business: a meal planning and delivery company - but with a twist. YOU need to research meal prep companies and come up with the twist: that is, a competitive advantage over the companies in the marketplace today.

Description and details of the business: As a meal planner, you would:


  • Interview your customers as to their likes/dislikes/allergies
  • Create a list of ingredients
  • Create step-by-step recipes for your customers to follow
  • Explain the nutritional value of the meals to educate your customers
  • Explain to them how they are saving money by sticking to your meal plans
  • Purchase the necessary ingredients
  • Prepare and package all the necessary ingredients for each meal
  • Deliver the uncooked, prepared ingredients to your customers


  • Market research and demographic research
  • Ideas / pricing / etc
  • Consider that it could be to a particular audience; a particular type of meal; add-ons; pricing differentiation - and more.

Remember the proposed business so you have the liberty of making decisions / assumptions (that you explain) and you may make decisions about the company (such as the type of food, etc) and so on. Plan that the business will start up in MI (research hint!)

In: Operations Management

A multinational company has many divisions. Two of these divisions are Mic Division and Mandy Division....

A multinational company has many divisions. Two of these divisions are Mic Division and Mandy Division. The Mic Division produces a component that is used by the Mandy Division. The cost of manufacturing the component is as follows:

Direct materials

$10

Direct labour

$6

Variable overhead

$4

Fixed overhead

$5*

Total cost

$25

*Based on a normal volume of 400,000 components

Other costs incurred by the Mic Division are as follows: Fixed selling and administrative: $400,000
Variable selling: $1.50 per unit

Mic Division has been selling its manufactured component for $40 in the external market. The Mic Division is capable of producing 500,000 components per year. However, the division expects to be only able to sell 400,000 components next year. The variable selling expenses are avoidable if the component is transferred internally.

Mandy Division has been buying a very similar component from an external supplier at $34 per unit. The division expects to use 100,000 units of this component next year. The manager of the Mandy Division has offered to buy 100,000 units from the Mic Division at $24 per unit.

Required:

(a) Compute the minimum transfer price that the Mic Division would be willing to accept.

(b) Compute the maximum transfer price that the Mandy Division would be willing to pay.

(c) What will be the effect on company-wide profit if 100,000 components are transferred internally, at a price of $24 per unit, instead of Mandy Division buying at $34 per unit from the external supplier?

(d) Assume that Mandy Division has decided to expand its production volume, and will now require 200,000 units of the component. Advise the CEO of the company on setting corporate policies with respect to internal transfers between Mic and Mandy divisions. Support your answer with relevant computations.

In: Accounting