Answer:
December 31 Salaries & wages expense 3600 Dr
Salaries & wages Payable 3600 Cr
Explanation:
The pay week is of 5 days starting from Monday to Friday. The wage per day is,
wage per day = 6000 / 5 = $1200 per day
The adjusting entry is made based on the accrual or matching principle which follows that the expenses and revenue relating to a particular period should be matched and recorded in their respective periods.
Thus, the wage expense for 3 days ending 31 December will be recorded as wages expense on 31 december for 1200 * 3 = $3600
The credit against this entry will be wages payable as the wage will be paid on January 2.
d.
Ron will not make his monthly goal of $1,270 and will need $741.68 to supplement his monthly income when he retires.
Answer:
Per unit customer costs = $4.5 per unit
Explanation:
Under activity based costing cost are allocated based on per activity rate.
Customer return processing activity rate = $45 per return
Shipping activity rate = $10 per shipment
for Product 1
Total cost of shipment and return will be as follows:
Shipment = 1,200 X $10 = $12,000
Returns = 150 X $10 = $1,500
Total = $12,000 + $1,500 = $13,500
Total units = 3,000
Per unit customer costs = $13,500/3,000 units = $4.5 per unit
Answer:
Price of bond=948.8583731
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
</em>
Value of Bond = PV of interest + PV of RV
Semi-annual interest = 8.6% × 1,000 × 1/2 =43
Semi-annual yield = 9.4%/2=4.7
%
<em>PV of interest payment</em>
PV = A (1- (1+r)^(-n))/r
A- 43, r-0.047, n- 20
= 43× (1-(1.047)^(-10)/0.047)
= 549.7724893
<em>PV of redemption Value</em>
PV = F × (1+r)^(-n)
F-1000, r-0.047, n- 20
PV = 1,000 × 1.047^(-20)
PV = 399.0858837
Price of Bond
549.772 + 399.085
=948.8583731
