ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/2018 $194,758 6/30/2018 $7,000 $7,790 $790 195,548 12/31/2018 7,000 7,822 822 196,370 6/30/2019 7,000 7,855 855 197,225 12/31/2019 7,000 7,889 889 198,114 6/30/2020 7,000 7,925 925 199,039 12/31/2020 7,000 7,961 961 200,000 What is the annual stated interest rate on the bonds

Answer:

7%

Explanation:

Calculation to determine the annual stated interest rate on the bonds

Using this formula

Bonds annual stated interest rate=Cash paid/Ending carrying value*2 payments per year

Let plug in the formula

Bonds annual stated interest rate=$7,000 / $200,000 × 2 payments per year

Bonds annual stated interest rate=0.07*100

Bonds annual stated interest rate= 7%

Therefore the annual stated interest rate on the bonds is 7%

Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued during 2021. On January 1, 2021, Coronado issued 200000 shares of nonconvertible preferred stock. During 2021, Coronado declared and paid $110000 cash dividends on the common stock and $79000 on the preferred stock. Net income for the year ended December 31, 2021 was $618000. What should be Coronado's 2021 earnings per common share

On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $414,430 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $52,000. Negotiations led to Maywood guaranteeing a $73,000 residual value. Equal payments under the lease are $104,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 7 % interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 6 Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.

Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:

Placid Lake Scenic
Inventory $380,000 $114,000
Land 840,000 440,000
Equipment (net) 640,000 540,000

During 2020, intra-entity sales of $195,000 (original cost of $90,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $330,000 in intra-entity sales were made with an original cost of $83,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.

Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and interest?

Hurte-Paroxysm Products, Inc. (HP) of the United States exports computer printers to Brazil, whose currency, the reals (symbol R$) havebeen trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reals equivalent of $200 each. A strong rumor exists that the reals will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the devaluation take place, the exchange rate isexpected to remain unchanged for the foreseeable future. Based on this forecast, HP Products may either (1) maintain the same realprice and sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the realprice in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.

Required:
a. What would be the short-run (one-year) impact of each pricing strategy?
b. Which do you recommend?

If HP maintains the same real price and same unit volume, what will be the firm's gross profits?

When a company uses a
allocation rate there is only one base for allocating all overhead costs to products or other cost objects.

Lancelot Corporation manufactures tennis gear and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data: Budgeted output units 8,000 units Budgeted machine-hours 24,000 hours Budgeted variable manufacturing overhead costs for 8,000 units $288,000 Actual output units produced 8,500 units Actual machine-hours used 23,750 hours Actual variable manufacturing overhead costs $250,000 What is the flexible-budget amount for variable manufacturing overhead

Sanders Co. is planning to finance an expansion of its operations by borrowing $49,200. City Bank has agreed to loan Sanders the funds. Sanders has two repayment options: (1) to issue a note with the principal due in 10 years and with interest payable annually or (2) to issue a note to repay $4,920 of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is 9.5 percent for each option.
Required
a. What amount of interest will Sanders pay in year 1 under option 1 and under option 2?
Amount of Interest
Under option 1
Under option 2
b. Wihat anount of insyinyder option 1 and under option 27 (Round your final answers to the nearest dollar amount)
Amount of Interest
Under option 1
Under option 2
c. Which option is more advantageous to Sanders?
Option 1
Option 2

Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.

Question 2
Mt Jack is a director of a company from which he receives a salary of RM15.000 per month He
also received director's fees of RM5.000 during the year ended 31 December 2020 The
benefits provided to him included:
a Accommodation for which the company pays monthly rental of RM5 000 include
RM1,500 for the furniture
b. Employer's contribution to the Employee's Provident Fund of 13% of salary
c. A company new car costing RM150.000
d. A part-time gardener who is paid RM400 per month
A domestic servant who is paid RM500 per month
f Leave passage to Japan for Mr Jack and his family and the company paid RM5.000 for
their air fait
Mc Jack also received the following Malaysian income during the year ended 31 December
2020
a
Interest income of RM3.800 from a 15-month fixed deposit in a Maaysian bank
b Royalties of RM22 500 from the publisher of his book on taxation
c. Rental income of R12 500 per month. He also paid assessment and out rent of
RM1,350 per annum as well as cost of repairs amounting to RM4500 made up of
repainting (RM1,000) and extension of the kitchen RM3.500)
Mr Jack's wife earns a salary of RM6 200 per month. She is allowed to make use of a company
car (cost RM82 000) during office hours but is not allowed to drive it home She also has
interest income of RM850 from her savings account with Bank Simpanan Nasional She made a
cash donation of RM2 500 to an approved institution as well as donated books worth RM200
to the same institution
Required: Compute the aggregate income for by Mr Jack and his wife for the year of
assessment 2020 separate assessment)​

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $82,000 8 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $260,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)

Transformational leadership is a positive predictor of job performance and organizational commitment.

a. True
b. False

You run a coffee shop where demand is constant week to week. You use 10 bags of roasted coffee each week. Currently, you order whole roasted coffee beans from an out-of-town supplier who charges $20 per bag and a fixed cost of $100 per delivery. Storage for each bag per month is estimated at $1. Assume your coffee shop operates for 52 weeks and 12 months per year. Assume there are no lead times.

Required:
a. Under these costs, what is the optimal order size (in bags)?
b. How often (in months) do I place an order under my solution to part a?
c. What are my annual total costs (including purchasing costs) under my solution to part a?

State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. Sold 20,000 shares of $5 par common stock for $22 per share. Sold equipment with a book value of $55,800 for $60,000. Purchased land for $650,000 cash. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable. Sold a new issue of $500,000 of bonds at 98. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.]
Amount
a. $
b. $
c. $
d. $
e. $
f. $
g. $
h. $

Why do you think our economy continues to experience wage differences among groups - please
discuss with relevant examples?

Garrett Company provided the following information:

Product 1 Product 2
Units Sold 10,000 20,000
Price $20 $15
Variable cost per unit $10 $10
Direct fixed cost $35,000 $75,000

Common fixed cost totaled $46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true?

a. Sales will increase by $300,000.
b. Overall operating income will increase by $2,600.
c. Overall operating income will decrease by $25,000.
d. Overall operating income will not change.
e. Common fixed cost will decrease by $27,600.

Jennings Hardware Store marks up its merchandise by 30%. If a part costs $25.00, which of the following is true?

a. The price is $7.50.
b. The markup is $32.50.
c. The price is $32.50.
d. The markup is pure profit.
e. All of these choices are correct.

A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that cost $6 per unit to manufacture. The units can be sold as is for $2.00 each, or they can be reworked for $4.50 each and then sold for the full price of $8.50 each. If the units are sold as is, the company will be able to build 22,000 replacement units at a cost of $6 each, and sell them at the full price of $8.50 each.
What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Deductible amounts should be indicated with a minus sign.)
Sell as scrap Rework
Sales of scrap units
Sales of reworked units
Cost to rework units
Opportunity cost of not making new units
Incremental income (loss) $0 $0
The company should:

CHRO Conversations: SVP of HR Tim Richmond, AbbVie
People will work harder if they know their results are noticed and rewarded appropriately. At AbbVie, the Human Resources area places special emphasis on rewarding employees based on levels of contributions. This activity is important because it will examine how one company utilizes talent philosophies that differentiate rewards based on employee results.
The goal of this activity is to help you recognize how strategic goals of a company can be supported by HR activities that reward and recognize employees who produce at high levels. These rewards go well beyond salary and include opportunities for career growth and development.
At AbbVie, people want to know their ________ and results will be rewarded appropriately.
a) hard work
b) time off
c) verbal communication
d) philosophical ideals
At AbbVie, HR tends to think of "more and better and now" as it relates to career opportunities, human capital capabilities, and raising the bar on a continual basis for:__________
a) career growth.
b) higher salaries.
c) better benefits.
d) higher quantity outputs.
e) higher quality outputs.
The "talent philosophy" at AbbVie includes differentiating levels of:________
a) development and hiring.
b) performance and rewards.
c) rewards and terminations.
d) performance and hiring.
e) development and global travel.
AbbVie has a standard in hiring of "replacing every person who leaves with someone":________
a) younger.
b) with a college degree.
c) who has more experience.
d) better.
e) from another country.
AbbVie does not want to pay its ________ performers the same as it pays its higher performers.
a) older
b) more experienced
c) lower
d) international
e) specialized

The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies. Gecko pays no dividend, whereas Gordon has an expected dividend yield of 6 percent. Suppose the capital gains tax rate is zero, whereas the income tax rate is 40 percent. Gecko has an expected earnings growth rate of 10 percent annually, and its stock price is expected to grow at this same rate.

Required:
If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon’s stock?

It takes courage to kill a project, but sometimes you know it has to be done. Some common symptoms of a failing project are ill-defined initial requirements, constant changes in scope, excessive changes in resources and personnel, and extreme stress/tension over anticipated changes. Yet, a project may have followed the "book" and done everything right, but still need to be terminated. This was the case with a project in the U.K. where the client was highly committed to the project, contributing time, resources, and prompt decisions. The scope was clear, completion criteria agreed upon, the budget and timeframe acceptable to all. Early on, however, an unavoidable scope change had to be made, requiring a 20 percent increase in time and a 10 percent increase in cost, agreed to by the client. As the project approached the end of the fi rst phase, it was clear that the quality and schedule were both deteriorating, as indicated in progress reports to both the client and senior management. A quick review showed that the results were not going to be acceptable. With the agreement of the PM, an outside Expert was called in to review the effort to date and make a recommendation. Then a joint meeting was held with the Expert, the PM, the Program Manager, and the primary contractor where it was decided that the best thing to do was to work together to complete phase one and then terminate the project, with a clean handover to another team to tackle phase two. Although disappointing to everyone, the close and frequent communications of both progress and concerns throughout the project with upper management and the client, offered in timely, digestible amounts, reduced their expectations and protected the client from a surprise at the end. Honest, consistent communication throughout the project life cycle resulted in improved trust, integrity, and confi dence in the vendor and their team.

Required:
a. What are your thoughts about doing everything right and the project still failing?
b. Does the admonition "Never surprise the boss!" now make more sense? Why?
c. Do you think the scope change at the beginning was the problem here, or was there going to be a problem anyway?

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year. Month Cost(Y) Hours(H) January $ 7,300 260 February $ 9,125 730 March $ 7,540 410 April $ 7,485 330 May $ 9,460 980 June $ 9,030 705 How should the cost function be properly stated using the high-low method?

Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, $20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.

Required:
Prepare the stockholders’ equity section of the balance sheet for Stahl Company.

Suppose Dina gets a sales bonus at her place of work that gives her an extra $800 of disposable income. She chooses to spend $600 and save the remaining $200. From this, you can tell that Dina's marginal propensity to consume (MPC) is , and her marginal propensity to save (MPS) is . Mathematically, it must always be true that: Disposable Income = Therefore, it must also be true that: 1 =

Market Structure and Market Power
The marginal revenue curve of a firm with market power will always lie below its demand curve because of:_____.
a. the discount effect and the substitution effect.
b. the substitution effect and the income effect.
c. the output effect and the discount effect.
d. the output effect and the substitution effect.

Bridgeport Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020.
Purchase
Cash paid for equipment, including sales tax of $7,400 $155,400
Freight and insurance cost while in transit 2,960
Cost of moving equipment into place at factory 4,588
Wage cost for technicians to test equipment 5,920
Insurance premium paid during first year of operation on this equipment 2,220
Special plumbing fixtures required for new equipment 11,840
Repair cost incurred in first year of operations related to this equipment 1,924
Construction
Material and purchased parts (gross cost $296,000; failed to take 2% cash discount) $296,000
Imputed interest on funds used during construction (stock financing) 20,720
Labor costs 281,200
Allocated overhead costs (fixed-$29,600; variable-$44,400) 74,000
Profit on self-construction 44,400
Cost of installing equipmen 6,512
Compute the total cost to be capitalized for each of these two pieces of equipment.
Purchase equipment $enter a dollar amount
Construction equipment $enter a dollar amount

what is the reading about?

​

In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $59,160, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000

Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000

Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.

Businesses rarely consider profits when supplying goods and services.
True of False

Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5250000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3200000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6440000 note payable and an 10%, 4-year, $12550000 note payable.

Required:
What are the weighted-average accumulated expenditures?

Shamrock, Inc. issues a $660,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $107,412. Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Choose the items that meet the qualifications to be treated as an intangible asset on the balance sheet.
a. Unsuccessful legal defense costs of trademark
b. Legal costs in securing copyright
c. Purchased patent
d. Investment in subsidiary
e. Filing fees for patent
f. Purchase of a franchise
g. Successful legal defense costs for copyright
h. Research costs for new drug
i. Sale of a franchise
j. Internal development costs for patent
k. Purchased copyright
l. Initial training costs for startup of new business