On January 2, 2017, Mahoney Sales issues $10,000 in bonds for $9,400
The bonds are five-year bonds with a stated rate of 4% and pay semiannual interest on June 30 and December 31. Mahoney Sales uses the straight-line method to amortize bond discount. Prepare the journal entry for the first interest payment on June 30, 2017.
What will be an ideal response
Interest Expense 260
Discount on Bonds Payable 60
Cash 200 .Interest Expense = ($10,000 x 4% x 6/12 ) + ($600 / 10 ) = $260
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The total fixed cost for Harold, a salesperson, is $20,000 per month. Harold generates 25% gross profit on the products he sells. If Harold sells $200,000 worth of merchandise in six months, which of the following statements is true?
A. Harold generated $30,000 gross profit for the company. B. By having Harold, the company incurred a direct loss of $70,000. C. Harold generated $120,000 in gross profit for the company. D. By having Harold, the company incurred a direct loss of $280,000. E. Harold sold $120,000 worth of goods, which equals the BEP.
Answer the following statement(s) true (T) or false (F)
1. A sole proprietor may transfer his or her business to another individual by selling all of his or her shares of stock to that individual. 2. Sole proprietorships are created and governed by state statute. 3. Sole proprietors can attract new employees by offering shares of their business as compensation. 4. The sole proprietorship is dissolved by filing a certificate of dissolution with the secretary of state.
South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000 for setups, and $36,000 for repairs. Cost Driver RateVolumeResources used: Materials$10/lb18,350lbsPurchasing$250/purchase order160purchase ordersSetups$450/setup80setupsRepairs$36/job700jobsResources supplied: Materials$192,700 Purchasing$44,300 Setups$37,500 Repairs$30,000 The unused resource capacity for setups for South Beach is:
A. $1,080. B. $1,500. C. $1,000. D. $2,500.
Stockholders' equity consists of which of the following?
A. Paid-in capital and par value. B. Long-term assets. C. Retained earnings and cash. D. Premiums and discounts. E. Paid-in capital and retained earnings.