On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
A. Debit Bond Interest Expense $18,110; debit Discount on Bonds Payable $250; credit Cash $18,360.
B. Debit Bond Interest Expense $36,720; credit Cash $36,720.
C. Debit Bond Interest Expense $18,610; credit Cash $18,360; credit Discount on Bonds Payable $250.
D. Debit Bond Interest Expense $18,360; debit Discount on Bonds Payable $250; credit Cash $18,610.
E. Debit Bond Interest Expense $18,360; credit Cash $18,360.
Answer: C
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Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. The correct entry along with the equation to record the issuance and usage of materials, assuming a favorable materials usage variance, is as follows
A) Work in Process SQ x SPMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP B) Work in Process SQ x SPMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP C) Work in Process AQ x APMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP D) Work in Process AQ x APMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP E) None of these.
Felix Time Company manufactures and sells watches for $40 each
Times Products Company has offered Felix Time $25 per watch for a one-time order of 5,000 watches. The total manufacturing cost per watch is $28 per unit and consists of variable costs of $20 per watch and fixed overhead costs of $8 per watch. Assume that Felix Time has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? A) increase of $25,000 B) decrease of $25,000 C) increase of $125,000 D) decrease of $125,000
Brand and product managers operate cross-functionally.
Answer the following statement true (T) or false (F)
In which of the following situations will the implied warranty of merchantability arise?
a. Morgan sold his DVD player to a friend. b. Josh sold his car for $1,000 to a co-worker. c. Seconds, Inc. bought used furniture from Pamela's yard sale. d. Yolanda purchased a curling iron from Value Plus Discount Store.