Answer:
June 30, 2020 Bond Interest expense Debit $5,756.25
Discount on Bonds payable Credit $506.25
Cash Credit $5,250
Explanation:
We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount
Given,
Bond price = $150,000
Interest = 7%
Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20
Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)
Cash payment for semiannual interest = $5,250 (Credit)
Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)
Discount on bonds payable = $506.25 (Credit)
Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)
Answer:
The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.
Explanation:
We have to compare the present-value of both plans to answer this question.
The Plan A has a present value of $30,000 as is an inmediate payment.
The Plan B has both an annual payment and a royalty, for a span of ten years.
The present value for Plan B is:
This can be simplified with a annuity factor for 10 years, with i=10%.
Then, the PV can be calculated as:
To be indifferent, both present values have to be equal:
The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.
The biggest challenges of business process design are how a business could engage people from getting to work in a way of working new ways or techniques and even following procedures that are different and that they are not known to be of.
Answer:
The answer is: ALL THE OPTIONS ARE WRONG
Explanation:
A) In the short run, the firm will shut down if the price of its product is < $12.
B) In the long run, the firm will shut down if the price of its product is < $15.
C) The minimum value of variable cost equals the variable cost of producing 1 single unit, not the variable cost of producing 200 units.
D) If the firm's fixed costs are $500, it means that they decreased. According to the question the fixed costs were $690 (230 units x $3 per unit). So if the fixed costs decrease, then the average total cost should also decrease, not increase to $16.
