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2 years ago

The following items were selected from among the transactions completed by O’Donnel Co. during the current year:

Business

1 answer:

FrozenT [24]2 years ago

6 0

Answer:

Explanation:

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

The solution to the above has been attached.

b. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):

The solution to the question has been attached.

It should be noted that:

March 11: Interest Expense was calculated as:

= ($240,000 × 30/360 × 4%)

= $240,000 × 0.0833 × 0.04

= 800

Check the attached file

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Rosa purchased three call option contracts on ABC stock with a strike price of $27 when the option premium was quoted at $1.1. T

IrinaK [193]

Answer:

Explanation:

Profit on a long call option = max(St - X, 0) - premium paid

Profit on a long call option = max(29 - 27, 0) - 1.1

Profit on a long call option = max(2, 0) - 1.1

Profit on a long call option = 2 - 1.1

Profit on a long call option = 0.9 per share

Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts = 0.9 * 100 * 3 = $270

Net profit on this investment = 270 - 10

Net profit on this investment = $260

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2 years ago

Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Intere

zubka84 [21]

Answer:

the issue price of the bond is $8,640,999

Explanation:

The computation of the issue price of the bond is shown below:

Particulars Amount PV factor Present value

Semi-annual Interest $300,000 13.59033 $4,077,099

Principal $10,000,000 0.45639 $4,563,900

Issue price of the bonds $8,640,999

Therefore the issue price of the bond is $8,640,999

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2 years ago

Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals i

Jet001 [13]

Answer:

140 luncheons, 160 dinners

Explanation:

7 0

2 years ago

Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. H

Luba_88 [7]

Answer:

$2,340

Explanation:

The computation of cash received from this loan is shown below:-

cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )

= Approved amount - ($3,000 × 2 × 11% )

= $3,000 - ($3,000 × 2 × 0.11 )

= $3,000 - $660

= $2,340

Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.

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2 years ago

Company X, which is a chemical manufacturer, uses crude oil and buys it in the spot market on a monthly schedule. A crude oil sw

Nikitich [7]

Answer:

c. In a month when the spot price is below $25, the company will pay the difference to the counter party

Explanation:

Since Company X uses crude oil, the company buys the swap to hedge in the swap market, so option A is not appropriate because it buys the swap, which pays the counterparty when the spot price falls below $ 25.
so correct option is c. In a month when the spot price is below $25, the company will pay the difference to the counter party

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2 years ago