On January 1, 2020 the Walker Manufacturing Company purchased 10% bonds having a maturity value of $100,000 due in 5 years. The bonds pay interest every January 1st. Walker paid a premium for the bonds in the amount of $7,985.10. As a result of paying the $7,985.10 premium, the bond investment provides Walker with an 8% yield. Required:
Prepare journal entries for the following dates:
1. January 1, 2020 when the bonds were purchased.
2. December 31, 2020 to record interest revenue and amortization.
3. January 1, 2021 to record the interest payment being received.
5. December 31, 2021 to record interest revenue and amortization.
5. January 1, 2022 to record the interest payment being received.
In: Accounting
from the end of 2009 to the end of 2019, the size of the united states national debt held by the public grew from $6.8 trillion to $17.2 trillion. during the same period, the 10 year us treasury bond yield to maturity fell from 3.59% in december 2009 to 1.86% in december of 2019. explain how such an increase in the supply of government bonds can lead to a fall in the interest rate. second, consider that the 10 year bond rate has fallen further in 2020 to 0.68 percent on october 1, despite a further increase in the national debt ($20.5 trillion as of june 30, 2020) due to the decline in the economy and increase in federal government spending. why has this continued in 2020 during an economic crisis?
In: Economics
On January 1, 2020, Harrington Company has the following defined
benefit pension plan balances.
| Projected benefit obligation | $4,500,000 | |
| Fair value of plan assets | 4,200,000 |
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $500,000 are created. Other data related to
the pension plan are as follows.
|
2020 |
2021 |
|||||
|---|---|---|---|---|---|---|
| Service cost | $150,000 | $180,000 | ||||
| Prior service cost amortization | 0 | 90,000 | ||||
| Contributions (funding) to the plan | 240,000 | 285,000 | ||||
| Benefits paid | 200,000 | 280,000 | ||||
| Actual return on plan assets | 252,000 | 260,000 | ||||
| Expected rate of return on assets | 6 | % | 8 | % | ||
Prepare a pension worksheet for the pension plan for 2020 and 2021.
In: Accounting
During 2020, Sheridan Company started a construction job with a
contract price of $1,376,000. The job was completed in 2022. The
following information is available. The contract is
non-cancellable.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $344,000 | $709,500 | $920,200 | |||
| Estimated costs to complete | 516,000 | 236,500 | 0 | |||
| Billings to date (non-refundable) | 258,000 | 774,000 | 1,376,000 | |||
| Collections to date | 232,200 | 696,600 | 1,225,500 |
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Gross profit / (loss) | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
In: Accounting
From the end of 2009 to the end of 2019, the size of the United States National Debt held by the public grew from $6.8 trillion to $17.2 trillion. During the same period, the 10 year US Treasury Bond yield to maturity fell from 3.59% in December 2009 to 1.86% in December of 2019. Explain how such an increase in the supply of government bonds can lead to a fall in the interest rate. Second, consider that the 10 year bond rate has fallen further in 2020 to 0.68 percent on October 1, despite a further increase in the national debt ($20.5 trillion as of June 30, 2020) due to the decline in the economy and increase in federal government spending. Why has this continued in 2020 during an economic crisis?
In: Economics
Ahmed, an Australian resident, was made redundant on 30th June 2020 at the age of 58. He had been employed at the company for 14 years and 9 months. His taxation records for the year ended 30th June 2020 revealed the following:
Gross wages up to redundancy $65000 (PAYG withheld $18400)
Interest on savings account held jointly with spouse $4200
Genuine redundancy payment $93000
Lump sum received from his superannuation fund:
Taxable component (element taxed in the fund) $372000 (PAYG withheld $26000)
Ahmed has adequate private health insurance cover for the year.
Required:
For the year ended 30 June 2020, calculate Ahmed's:
a) Taxable Income
b) Net Tax Payable or Refundable
In: Accounting
Explain the impact on US export and import if the US dollar has depreciated in comparison with other currencies. For example, the exchange rate for the Canadian dollar was 1.36 per U.S dollar in 2003. Now in 2020, it is 1.31 Canadian dollars per U.S.dollar under this case the dollar has suffered a slight depreciation. Also, when the dollar has depreciated in the case of the Chinese Yuan from 8.27 in 2003 to 6.69 yuans in 2020 per U.S dollar. Also, when there is not either appreciation or depreciation from 2003 to 2020 which is the case of Saudi Arabia currency its exchange rate remains the same 3.75 Riyals per dollar since 2003. Then explain the impact of U.S. exports and imports under these scenarios.
In: Economics
On January 1, 2020, Sweet Corporation granted its president a
share appreciation rights (SARs) package covering employment over a
three-year period. The package was based on SARs increases for
20,100 shares over the fair value on January 1, 2020 of $17 per
common share. The SARs package to be paid in cash at the end of the
third year (i.e., December 31, 2022).
The fair values of the Sweet shares were as follows:
| December 31, 2020 | $19/share | |
| December 31, 2021 | $22/share | |
| December 31, 2022 | $20/share |
Prepare the journal entries to record the Share Appreciation Rights
(SARs) package, and the payment on December 31, 2022 assuming that
Sweet follows ASPE.
In: Accounting
Acme Co. has projected the following sales for 2019: Q1 = $870 Q2 = $920 Q3 = $850 Q4 = $950 Sales for each quarter in 2020 are projected to be 20 percent greater than the previous quarter (ie. Q1 2020 is projected to be 20% higher than Q4 2019). Calculate expected payments to suppliers in each quarter for 2019, assuming: 1) Acme places orders during each quarter equal to 40 percent of projected sales for the next quarter. For example, if Q1 2020 sales are expected to be $1140, then purchases in Q4 of 2019 would be estimated to be $1140 x 0.4 = $456 2) Acme's average days of payables is 90 days.
Q1 payments =
Q2 payments =
Q3 payments =
Q4 payments =
In: Finance
The graph illustrates a normal distribution for the prices paid
for a particular model of HD television. The mean price paid is
$1600 and the standard deviation is $140.
1180 1320 1460 1600 1740 1880 2020
Use the 68-95-99.7 Rule to answer the following questions.
What is the approximate percentage of buyers who paid more than
$2020?
%
What is the approximate percentage of buyers who paid more than
$1880?
%
What is the approximate percentage of buyers who paid between $1460
and $1740?
%
What is the approximate percentage of buyers who paid between $1460
and $1600?
%
What is the approximate percentage of buyers who paid between $1600
and $2020?
%
What is the approximate percentage of buyers who paid between $1600
and $1880?
In: Statistics and Probability