On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cross report?
a. $14,000.
b. $6,000.
c. $12,000.
d. $8,000.

Answers

Answer 1

Answer: amount of interest expense  Cross  should report =a. $14,000.

Explanation:

interest expense = Principal( Face value) x Rate x period( Time)

Carrying value of the bond ( face value ) =$300,000

Rate= 8%

year ended on December, therefore The interest expense recorded would be for four months ( From June 1 to December 31 )

Therefore the Interest Expense = $300,000 x 8% x 7/12

= $300,000 x 0.08 x 7/12

= $168,000/12

$14,000

The amount of interest expense  Cross  should report at the current year end is $14,000


Related Questions

The MerryWeather Firm wants to raise $11 million to expand its business. To accomplish this, the firm plans to sell 15-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 4%. What is the minimum number of bonds the firm must sell to raise the $11 million it needs?
a. 20,711.
b. 113,377.
c. 41,422.
d. 56,688.
e. 23,000.

Answers

Answer:

$19,810.54

Explanation:

Calculation for the minimum number of bonds the firm must sell to raise the $11 million it needs

First step is to calculate the price of each bond

Price of each bond =1,000 / (1+0.04)^15

Price of each bond =1,000 / (1.04)^15

Price of each bond =$555.26

Now let calculate the minimum number of bonds the firm must sell

Minimum number of bonds to sell=$11 million/$555.26

Minimum number of bonds to sell=$19,810.54

Therefore the minimum number of bonds the firm must sell to raise the $11 million it needs is

$19,810.54

Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $202,700 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 202,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answers

Answer:

$76,500

Explanation:

Zwick Company owns 25,500 shares of Handy Corporation, which represents 25,500 / 202,500 = 12.59% of all common stocks. Since Zwick influence over Handy is not significant, all dividends received will be directly considered dividend revenue.

total dividends received = $3 per share x 25,500 shares = $76,500

Xtron has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. Xtron would be best described as a(n) ______ organization.

Answers

Answer:

Organic

Explanation:

From the question, we are informed about Xtron who has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. In this case Xtron would be best described as a organic organization.

Organic organizations, which was set up by Tom Burns and G.M. Stalker arround 1950, organic organization can be regarded as organization that is can be embrace flexibility and have the potential to adapt well to changes, they also have

value external knowledge.

18)
Whiskey, gin, and vodka are examples of
spirits (3 pts).

Answers

Answer:

Vodka, gin, baijiu, shōchū, soju, tequila, rum, whisky, brandy and singani are examples of distilled drinks. Beer, wine, cider, sake and huangjiu are examples of fermented drinks.

Explanation:

When the grocery store orders a large shipment of chocolate candy just before Valentine's Day, this type of inventory is typically called:_______
A. Smoothing Inventory
B. Hedge Inventory
C. Cycle Stock
D. Transportation Inventory
E. Anticipation Inventory

Answers

Answer:

E. Anticipation Inventory

Explanation:

In the case when the grocery store wants to order for a big chocolate shipment prior to the valentine day so there the inventory type would be anticipation inventory as it represents the demand anticipation for the forthcoming event i.e. valentine day

So the same is to be considered

Hence, the correct option is E

And, the other options are incorrect

dishwashers. How many of each type should Sparkle Clean produce to fulfill the order AND minimize their production cost

Answers

Answer:

hello your question is incomplete attached below is the complete question

Answer :

112 units of standard dishwashers  and

178 units of deluxe dishwashers

Explanation:

from  the calculations we can see that

D(x,y) > 0  and Vxx > 0

The cost will be minimized during production when 112 units of standard dishwashers and 178 units of deluxe dishwashers are produced by sparkle clean

attached below is a detailed solution

The term inadequacy refers to:______
A. The inability of a plant asset to meet its demands.
B. An asset that is worn out.
C. An asset that is no longer functional.
D. The condition where the salvage value is too small to replace the asset.

Answers

Answer: A. The inability of a plant asset to meet its demands.

Explanation:

When something is said to be inadequate, it means that it is not in enough quantity or rather lacks the capacity to perform the tasks that it is needed for.

The same goes when this is being spoken in relation to an asset. A plant asset that is inadequate is unable to meet the demands that it was acquired for.

A survey reveals that, on a small island, 175 people have jobs, 25 people are not working but are looking for jobs, and 90 people are neither working nor looking for work. The unemployment rate on the island is:____.

Answers

Answer:

The answer is = 12.5%

Explanation:

The 175 people that have jobs are in unemployment (employed).

The 25 people that are not working but are looking for jobs are called unemployed.

The 90 people are neither working nor looking for work for work are not counted in the employment.

Therefore, the labor force is employed people + unemployed people.

Labor force is 175 + 25= 200 people.

So, unemployment rate is:

(unemployed people ÷ labor force) x 100

(25÷200) x 100%

=12.5%

Belkin co provides medical care and insurance benefits to its retireees in the current year belkin agrees to contribute 5% of the employees 310000 gross salaries to a terirement program what is the amount of employee benefits expense for the current period?
a. $25
b. $100
c. $250
d. $12,500
e. $25,000

Answers

Answer: 15,500

Explanation:

From the question, we are informed that Belkin co provides medical care and insurance benefits to its retireees in the current year Belkin agrees to contribute 5% of the employees 310000 gross salaries to a terirement program.

The amount of employee benefits expense for the current period will be calculated as:

= 5% × 310,000

= 5/100 × 310,000

= 0.05 × 310,000

= 15,500

question 5 eiyfgeyfie

Answers

Answer:

where's the question?

uh...where’s the problem? if you misclicked I understand!

King Corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flows of $700,000. The machinery has a fair value of $560,000. King should recognize a loss on impairment of:_____.
A. $ 60,000.
B. $ 140,000.
C. $200,000.
D. $ -0-.
E. None of the other answers are correct.

Answers

Answer:

C. $200,000.

Explanation:

The computation of the impairment loss is shown below:

= Book value of the machinery - fair value of machinery

- $760,000 - $560,000

= $200,000

Hence, the  impairment loss is $200,000

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassock standard labor cost is $13 per hour. During August, Hassock produced 9,000 units and used 27,160 hours of direct labor at a total cost of $323,220. What is Hassocks labor efficiency variance for August?

Answers

Answer:

Direct labor time (efficiency) variance= $2,080 unfavorable

Explanation:

Giving the following information:

Standard= 3 hours of direct labor per unit

The standard labor cost is $13 per hour.

During August, Hassock produced 9,000 units and used 27,160 hours

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (3*9,000 - 27,160)*13

Direct labor time (efficiency) variance= $2,080 unfavorable

Marigold Corp. constructed a building at a cost of $30600000. Weighted-average accumulated expenditures were $13000000, actual interest was $1300000, and avoidable interest was $604000. If the salvage value is $2400000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Answers

Answer: 720,100

Explanation:

Given that:

Cost of building = 30600000

Avoidable interest = 604,000

Salvage value = 2400000

Useful life = 40 years

((Cost of building + Avoidable interest) - salvage value)) / 40

((30600000 + 604000) - 2400000)) / 40

= 28804000 / 40

= 720,100

Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $562,000 + $562,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,320,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?

Answers

Answer: $196000

Explanation:

Firstly, we have to calculate the stock basis which will be the difference between the carryover Basis and the cash received. This will be:

= $1,320,000 - $562,000

= $758,000

If the sticks are being sold at $562,000, this will bring about a loss of:

= $758,000 - $562,000

= $196000

Last year, Big W Company reported earnings per share of $2.70 when its stock was selling for $40.50. If its earnings this year increase by 10% and the P/E ratio remains constant, what will be the price of its stock?

Answers

Answer: $‭44.55‬

Explanation:

P/E ratio last year = Market price / Earnings per share

= 40.50/2.70

= 15

PE ratio remains constant.

Earnings increase by 10% = 2.70 * 1.10 = $‭2.97‬

15 = Market Price / 2.97

Market Price = 15 * 2.97

= $‭44.55‬

On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year. This is an example of:

Answers

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

Brian Inc. borrowed $8,000 from First Bank and signed a promissory note. What entry should Brian Inc. record?

Answers

Answer:

Dr Notes Receivable $8,000

Cr Cash $8,000

Explanation:

Based on the information given we were told that Brian Inc. borrowed the amount of $8,000 from First Bank in which they signed a promissory note which means that the journal entry that Brian Inc. should record the transaction is :

Dr Notes Receivable $8,000

Cr Cash $8,000

Which of the following is not a level of control

Answers

Answer:

ere are the option???

Explanation:

What the options

20 word thing do b annoying

Robert House believed that a leader cannot move back and forth among the four leadership styles: directive, supportive, achievement-oriented, and participative.
a) True
b) False

Answers

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The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy would you recommend? (Assume mpe mpc)
A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.
B. Contractionary fiscal policy, decrease government expenditures by $200, or cut taxes by $100
C. Contractionary fiscal policy,decrease govenment expenditures by $100, or cut taxes by $200.
D. Expansionary fiscal policy, increase government expenditures by $200, or cut taxes by $100.

Answers

Answer: A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.

Explanation:

Recessionary gap = $200

Marginal Prospensity to Consume = 0.5

Spending multiplier will them be calculated as:

= 1/(1-0.5)

= 2

Tax multiplier will be:

= -0.5/(1-.5)

= -1

Therefore, the answer is option A"Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200"

You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price

Answers

Answer:

since the market price is lower than the offered price, you should reject this offer

Explanation:

bond's market value

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32

market price = $934.96

since the market price is lower than the offered price, you should reject this offer

The information that follows relates to Khan Corporation:________.
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
On the basis of this information, the company's sales revenue is:______.
A) $40,000,000.
B) $10,000,000.
C) $1,500,000.
D) $3,000,000.
E) None of the answers is correct.

Answers

Answer:40,000,000

Explanation:

Sales margin: 7.5%

Capital turnover: 2

Invested capital: $20,000,000

The company sales revenue will be calculated thus:

Capital turnover = Sales / Invested capital

Therefore, 2 = Sales / 20,000,000

Sales = 2 × 20,000,000

Sales = 40,000,000

Therefore,the company sales revenue is 40,000,000

brainstorming solicits the help of multiple people to formulate concepts and identify ways to bring them to market. true or false​

Answers

Answer:

a.

Explanation:

hahshahaha joke lang

Paolo owns a pizza shop. The price of pizza recently increased from $3 to $5 a slice. Paolo responded by increasing the quantity of slices he supplied from 100 to 150 slices per day. By the midpoint method, Paolo's price elasticity of supply is:_______.

Answers

Answer:

Paolo's price elasticity of supply is 0.80.

Explanation:

From the question, we have:

New quantity supplied = 150

Old quantity supplied = 100

New price = $5

Old price = $3

Generally, the formula for calculating the price elasticity of supply is as follows:

Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied = {(New quantity supplied - Old

quantity supplied) / [(New quantity supplied + Old quantity supplied) /

2]} * 100 = {(150 - 100) / [(150 + 100) / 2]} * 100 = 40%

Percentage change in price = {(New price - Old price) / [(New price + Old

price) / 2]} * 100 = {(5 - 3) / [(5 + 3) / 2]} * 100 = 50%

Substituting the values into equation (1), we have:

Price elasticity of supply = 40% / 50% = 0.80

Therefore, Paolo's price elasticity of supply is 0.80.

An investor purchases a long call at a price of $3.05. The strike price at expiration is $46. If the current stock price is $46.10, what is the break-even point for the investor?
a. $32.50
b. $35.00
c. $37.50
d. $37.60

Answers

Answer: $49.05

Explanation:

The call was purchased at $3.05 and the strike price at expiration is $46. The total expenses at expiration is:

= 46 + 3.05

= $49.05

To make a profit, the stock price will have to be above $49.05 which makes it the breakeven point.

Option not included.

What is the percentage return on a stock that was purchased for $48.40, paid a $1.67 dividend, and was then sold after one year for $46.20?
a) -1.10%
b) -2.50%
c) 0.23%
d) -0.33%

Answers

Answer:

a) -1.10%

Explanation:

To calculate the holding period return we will use the foloowinf formula

Holding Period return = ( Dividend Income + Price appreciation ) / Initial price

Where

Dividend Income = $1.67

Price appreciation = Selling Price - Initial price = $46.20 - $48.40 = -$2.20

Initial Price = $48.40

Placing the above values in the formula of Holding period return

Holding period return = ( $1.67 + ( -$2.2 ) ) / $48.40

Holding period return = ( $1.67 - $2.2 ) / $48.40

Holding period return = -$0.53 / $48.40

Holding period return = -0.01095

Holding period return = -1.095%

Holding period return = -1.10%

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Answers

Answer:

book-keeping

Explanation:

Higher Ed Publishing is conducting market research to determine what customers think about its educational technology products. Which statement is the best example of how this company can use primary data to gauge customer opinions and interest in its products?

Answers

Answer:

It can conduct a telephone survey about its products.

Explanation:

Researches regarding the product, customer opinions and interests of the customers are obtained through the primary and secondary data collection. The collection of the such data helps in gathering the information and helping in the advancement of the product.  

In the given excerpt, the company is using the primary data and collecting the information from the customers. The primary data here is gathered through the telephonic survey about the product. The opinions and interests of the customer are collected through market research.

In U.S. price support programs, the "loan rate" is:______.
a. determined by Federal Reserve policy.
b. the interest rate a farmer must pay if he borrows from the government with his crop as collateral.
c. the difference between the market price and the target price.
d. the proportion of the farmer's crop he can loan to the government.
e. the effective price (i.e. price floor) for the commodity to ensure loan repayment.

Answers

Answer: E. the effective price (i.e. price floor) for the commodity to ensure loan repayment

Explanation:

The Price Support Programm is a policy by the government that is used in order to help farmers when there's a reduction in prices of agricultural products by giving out insurance to the farmers.

In U.S. price support programs, the "loan rate" is simply the effective price (i.e. price floor) for the commodity to ensure loan repayment.

Congress votes to substantially increase the minimum wage. The determinant causing the shift in this scenario is:___________.

Answers

Answer:

resource cost or availability

Explanation:

In the case when there is a votes of congress that rise the minimum wage. So this results in the shifting of the cost of the resource or the availability

Therefore as per the given situation there would be rightward shifting as the minimum wage is rised

Also the shifting could be done with respect to the resource cost or the availability

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