Answer:
The question is missing the options, which can be found in the attached.
The number of bonds necessary to raise the funds is 46,009
Explanation:
First of all, I calculated the price at which would be issued using the pv formula in excel, which =pv(rate,nper,pmt,fv)
rate is the yield to maturity divided by 2 because it is semi-annual payment
nper is 30 years multiplied by 2
pmt is the semi-annual coupon payment
fv is the $2000 payable on maturity
Find attached.
Answer:
a) $250,000
b) Zero
c) $6,100
d) $47,500
Explanation:
a) Bloomington owes $250,000 at year-end 2016 for inventory purchase.\
This relates to account payable and the amount to be reported as liability as at year-end 2016 is $250,000.
b)Bloomington agreed to purchase a $31,000 drill press in January 2017.
No liability will be recognized at year-end because the entity has no present obligation as there is no legal or constructive responsibility to pay $31,000. What occurred is just an agreement that can be altered.
c) During November and December of 2016, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2017 are $6,100.
The entity will recognized $6,100 as warranty payable as the entity has a present obligation as at year-end 2016 to compensate the customer.
d)Bloomington provides a profit-sharing bonus for its executive equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $950,000. Bonuses are not paid until January of the following year
The entity will report 5% of $950,000 ($47,500) as liability at year-end 2016 as the the entity has a present obligation to settle its executive.
Answer:
True
Explanation:
Using FIFO,
Under First in First out method, items that were purchased first will be availed for sale first. In this case, the opening stock of 5 at $10 items will be sold first. An additional 7 units will be required from the next batch of purchases at $11.
The costs of the first 12 units will be
=(5 x 10)+ (7 x 11)
=50 +77
=$127
With LIFO, the items acquired last will be sold first. In this case, the 12 items sold will come the batch of 15 purchased at $11 in the months
Using LIFO, the cost of goods available for sale.
=12 X $11
=132
The difference is the costs of goods available for sale is $ 5, with FIFO having a lower cost. It means FIFO profits will be $5 more.
Answer: Jeremy completed his engineering degree.
Explanation:
Since Jeremy has a college degree in engineering he makes more money than Rose who dropped out of college. College graduates are in higher demand to work the jobs that pay more than smaller companies. If Rose had of completed her college degree she could of found a job that uses her education and made more money.
Since Jeremy has a specific degree the company hired him based on his knowledge of the subject. He will be paid higher and most likely have better benefits than someone in an entry level position.
