PB10-4 (Algo) Comparing Bonds Issued at Par, Discount, and Premium [LO 10-3]
Marshalls Corporation completed a $540,000, 8 percent bond issue on January 1, 2021. The bonds pay interest each December 31 and mature 10 years from January 1, 2021.



Required:

For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements immediately after the bonds were issued

Answers

Answer 1

The amounts that would be reported on January 1, 2021, financial statements of Marshalls Corporation after the issuance of the bonds under these three independent cases are as follows:

Financial statements                  Case A             Case B             Case C

                                          (Issued at 100)   (Issued at 96)    (Issued at 104)

a. Bonds Payable                   $540,000         $540,000          $540,000

b. Unamortized Premium      

   (or discount)                      $0                         $21,600              $21,600

c. Carrying Value                 $540,000            $518,400           $561,600

Data and Calculations:

Face value of bonds payable = $540,000

Bond interest = 7%

Bonds issued at par (at 100):

Face value of bonds payable = $540,000

Cash proceeds = $540,000

Unamortized premium (or discount) = $0 ($540,000 - $540,000)

Bonds issued at discount (at 96):

Face value of bonds payable = $540,000

Cash proceeds = $518,400 ($540,000 x 96%)

Unamortized discount = $21,600 ($540,000 - $518,400)

Bonds issued at premium (at 104):

Face value of bonds payable = $540,000

Cash proceeds = $561,600 ($540,000 x 104%)

Unamortized premium = $0 ($561,600 - $540,000)

Question Completion:

Marshalls Corporation completed a $540,000, 7 percent bond issue on January 1, 2021. The bonds pay interest each December 31 and mature 10 years from January 1, 2018.

Required: For each of the three independent cases that follow, provide the following amounts to be reported on January 1, 2018, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.) January 1, 2018—Financial statements Case A (Issued at 100) $ 650,000 Case B (at 96) 650,000 Case C (at 104) 650,000 $ $ a. Bonds Payable b. Unamortized premium (or discount) c. Carrying Value

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Related Questions

re
Project: Prepare Scenarios Using Gidgits Galore
Assignment Directions:
Part A: Prepare your own scenarios, using Gidgits Galore as your backdrop.
1. Provide an example of a "wrongful discharge" at Gidgits Galore.
2. Provide an example of a "retaliatory discharge" at Gidgits Galore.
3. Provide an example of "disparate treatment" at Gidgits Galore.
4. Provide an example of "disparate impact" at Gidgits Galore.
5. Provide an example of a "bona fide occupational quality" at Gidgits Galore.
Length: Each scenario must be at least one-half to one page in length

Answers

The answers to the questions about work in Gidgits Galore  is given below:

An example of a "wrongful discharge" at Gidgits Galore is said to be when an office supervisor tells an employee to carryout a task that is said to be against safety laws such as do a sudden urgent work that needs urgent approval and it is one that cannot wait and the employee will not be wearing safety gadget, the employee have the right to refuse and He or she cannot be fired for his or her refusal.

An example of a "retaliatory discharge" at Gidgits Galore occurs when an employee reports the director of the company for encouraging bribery in the workplace and when the employer is said to finds out about the bribery sandal and then confronts the director who then fires them for it, this can serves as an an example of retaliatory discharge.

What is an example of "disparate treatment" at Gidgits Galore?

Note that the term disparate treatment connote a deliberate employment discrimination.

An example of this is making sure that only employees with master's degree in a the firm can on some good and special cases (cases or jobs that will bring big allowance if the job is done well) excluding those who came in with bachelor's degree.

An example of "disparate impact" at Gidgits Galore is telling all employees to be involved in a particular task and using results from that task given to  unintentionally remove some particular minority employees disproportionately.

An example of a "bona fide occupational quality" at Gidgits Galore is When directors, supervisors and  other company's employees must join a union in the company,  be a member of that union (Example is National association of management, accountancy etc.) so as to be able to fulfill their job duties or requirements.

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Which of the following are considered "free money" when it comes to
financing higher education?
Loans
Work-study programs
Military programs
Scholarships and grants

Answers

The option that can be considered free money when it comes to financing higher education is: Scholarships and grants.

What are grants?

Grant is a monetary fund given by a public entity or a charitable foundation or a specialized grant making institution to an individual for a specific purpose.

Grants and scholarship does not need to be paid back by individuals. Therefore it can be considered free money when it comes to financing higher education.

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Below is annual stock return data on Hollenbeck Corp and Luzzi Edit, Inc.
Year
Hollenbeck
Luzzi Edit
1
7%
-3%
N
20%
0%
2 3
-7%
20%
4
5%
7%
(a)
What is the average return and standard deviation for each stock? (Round answers to 2 decimal places, eg. 52.75.)

Answers

The average return of the Hollenbeck stock is 4%.

The average return of the Luzzi Edit stock is 6%

The standard deviation of the Hollenbeck stock is 19.67%.

The standard deviation of the Luzzi Edit stock is 17.72%.

What is the average return of the stocks?

The average return can be determined by adding the returns together and dividing it by the number of years.

The average return of the Hollenbeck stock = (7 + 20 - 7 + 5) / 4 = 4%

The average return of the Luzzi stock = (-3 + 20 + 7) = 6%

What is the standard deviation of the stocks?

Standard deviation is used to determine how the values in a group differs from the mean of the values in the group. It is a measure of variation.

The standard deviation of the Hollenbeck stock = √(4 - 7)² + (20 - 4)²  + (-7 -4)²  + (5 - 4)²  = 19.67%

The standard deviation of the Luzzi Edit stock = √(-3 -6)² + (20 - 6)² + (7 - 6)² + (0 - 6)² = 17.72%

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Cosmogena, a cosmetics start-up, wants to hire five female marketing executives. For these openings, the management prefers candidates who are outgoing, sociable, and upbeat. Which of the big five personality traits is Cosmogena seeking?

Answers

Answer:

why did he have to stop his new style

A new accountant mistakenly classified some capital expenditures as revenue expenditures. What is the outcome of this error

Answers

Answer:

the company will understate assets and understate net income

Explanation:

Smokecity, Inc., manufactures barbeque smokers. Based on past experience, smoke city has found that it’s total annual overhead costs can be represented by the following formula: overhead cost = $543,000 + $1.34x, where x equals number of smokers. Last year, smoke city produced 20,000 smokers. Actual overhead costs for the year were as expected. What is the total fixed overhead cost incurred by smokecity last year?

Answers

Answer:

569800

Explanation:

Accrued Revenues are a/an
a. Asset
b. Liability
c. Revenue
d. Expense

Accrued Expenses are a/an
a. Asset
b. Liability
c. Revenue
d. Expense

Answers

Revenues - Asset
Expenses - Liability

An engineering graduate starts a new job at $68,000 per year. Her
investments are deposited at the end of the year into a mutual fund
that earns a nominal interest rate of 5% per year with quarterly
compounding. How much money will be in the account immediately
after she makes the last deposit?
(a) She makes $4000 annual deposits for the next 40 years.
(b) She makes the $4000 deposits for 10 years, then stops all
investments for the next 10 years, and then resumes deposits of $6000
per year for the next 20 years.

Answers

Answer:

Explanation:

Effective Annual Rate=(1+r)^n-1 Here=r=5/4=1.25% per quarter EAR=(1.0125^4)-1 5.09% (a)..

if we consider Airbnb to be new entrant into the hospitality short stay vacation industry. according to Porter's Five forces, how attractive is this industry? What might be particularly difficult for a new startup

Answers

The entrance of Airbnb into the hospitality short stay vacation will be  attractive but there are some market threats that need to be effectively managed.

What is the Porter's Five forces?

These forces are economic force that determines the competitive intensity and attractiveness of a market.

According to Porter, the Five forces in the every market includes::

threat of new market players,threat of substitute products,power of customers, power of suppliers, industry rivalry

In conclusion, the hospitality firm needs to evalute the forces to understand the industry structure and to determine the best corporate strategy for its operation.

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Name the blue-shaded parts as a mixed number.
A) 2 2/3
B) 3 2/3
C) 2 2/9
D) 3 2/9

Answers

Answer:

[A] 2 2/3

Explanation:

Base on the given data you can see that 2 of the circle are fully shaded meaning

2 whole

There is one that is shade 2/3 {2 out of 3 are shaded}
Hence, put together

2 2/3

Therefore, the answer is [A] 2 2/3

~lenvy~

What change will cause a movement along the supply curve?

Answers

[tex]\huge\sf\green{Answer \red{✓}}[/tex]

Movement along the supply curve will occur when the price of the good changes and the quantity supplied changes by the original supply relationship.

______________

Answer:

When the price of the good changes and the amount supplied varies as a result of the original supply relationship, a movement along the supply curve occurs. To put it another way, a movement happens when a change in quantity supplied is solely due to a price change, and vice versa.

Step 4: Use the line chart to determine the approximate price of the stock at the beginning of 2003. How much money would you have earned if you bought one share of stock at the beginning of 2003 and sold it at today's current price?

Answers

The amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is $22.81 ($61.81 - $39).

What is the price of stock?

The price of a share of stock is the cost that is paid to buy it or the revenue received when it is sold.

The price of a stock reflects the value that investors place on the issuing company.

Thus, the amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is $22.81.

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Payment received in advance for services is a/an
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

Paying three months of rent in advance is an
example of a/an
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

Answers

1 - unearned revenue
2 - prepaid expense


Which BCMAP situation requires a direct comment on the USMC Fitness Report?
Select the best re

Answers

Self discipline is a BCMAP situation that require a direct comment on the USMC fitness report.

What is Body composition millitary appearance and fitness report?

BCMAP is the program employed by millitary base to develop and build bodies of corps for effectiveness in their work and for their healthiness in performing task.

The Fitness Report is a strategy use by which the Marine Corps so as to check and evaluates Marine's performance for their selection, assignment, retention and capabilities.

Therefore, Self discipline is a BCMAP situation that require a direct comment on the USMC fitness report.

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Question Number 4) A tool The Weather Channel uses to tell them what are the key elements of the role and what is the compensation for the role is a(n) ________.

Answers

Answer:

I believe is the correct answer

Explanation:

weather indicator(s)

7
Type the correct answer in the box. Spell all words correctly.
Name the stakeholder that Haddock, Inc. serves.
Haddock, Inc. is a huge transportation manufacturing unit based in Houston. When they adhere to the ethics of preventing air pollution, littering, and waste
management, they are essentially adhering to business ethics and serving the

Answers

When Haddock, Inc. adheres to the ethics of preventing air pollution, littering, and waste management, they are essentially adhering to business ethics and servicing government and communities stakeholders.

Who are the stakeholders of a business?

A stakeholder is a person or an entity that has some vested interests in a company because they can either affect or be affected by a business' operations and performance.

Typically, an entity's stakeholders include the following groups:

InvestorsEmployeesCustomersSuppliersCommunitiesGovernmentsMediaTrade associations.

Thus, when Haddock, Inc. adheres to the ethics of preventing air pollution, littering, and waste management, they are essentially adhering to business ethics and servicing government and communities stakeholders.

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Every day, your boss participates in a conference call from 1:00 PM to 2:00 PM. You know this, and today, instead of returning from lunch at 1:00, you decide to extend your lunch until 1:45. This is an example of

Answers

An example of Shirkingis when an employee decide to extend their lunch until 1:45 instead of 1:00 becaujse of his boss participation in a conference call.

What is called Shirking?

A shirk essentially means the act of avoiding or getting out of doing something that should be done.

Hence, when an employee decide to extend their lunch until 1:45 instead of 1:00 because of his boss participation in a conference call is an example of Shirking because he need to help his boss.

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In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing jointly). Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.

Answers

Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

What is tax liability?

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

Data and Calculations:

Earned income = $14,000

Qualified Dividend income = $5,000

Adjusted taxable income = $6,450 ($19,000 - $12,550)

Tax liability = $645 ($6,450 x 10%)

Thus, Carson's tax liability for 2021 is $645.

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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,800 Accounts receivable $ 25,200 Inventory $ 47,400 Building and equipment, net $ 114,000 Accounts payable $ 28,425 Common stock $ 150,000 Retained earnings $ 16,975 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 63,000 April $ 79,000 May $ 84,000 June $ 109,000 July $ 60,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,600 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $855 per month (includes depreciation on new assets). Equipment costing $2,800 will be purchased for cash in April. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. Complete the cash budget. 4. Prepare an absorption costing i

Answers

1. The computation of the schedule of expected cash collections for Shilow Company is as follows:

Schedule of Expected Cash Collections

                                             April           May          June           Total

Sales                                $79,000     $84,000   $60,000     $223,000

Cash Sales                      $47,400     $50,400    $65,400     $163,200

40% credit sales              25,200        31,600       33,600         90,400

Total cash collections $72,600     $82,000    $99,000    $253,600

2. The completion of the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases for Shilow Company are as follows:

Merchandise Purchases Budget

                                                April           May          June           Total

Sales                                   $79,000     $84,000   $109,000      $223,000

Cost of goods sold (75%)    59,250       63,000         81,750        204,000

Ending inventory                 50,400       65,400        36,000          36,000

Goods available for sale $109,650   $125,400      $117,750

Beginning inventory            47,400      50,400        65,400          47,400

Purchases                         $62,250    $75,000      $52,350      $189,600

Schedule of Expected Cash Disbursements for Merchandise Purchases:

                                              April           May             June             Total

Purchases                         $62,250    $75,000       $52,350      $189,600

50% month of purchase    $31,125    $37,500        $26,175        $94,800

50% ffg month                    28,425        31,125         37,500          97,050

Total cash payments      $59,550   $68,625      $63,675       $191,850

3. The completion of the cash budget for Shilow Company is as follows:

                                                 April              May            June

Beginning cash balance       $8,800         $4,030       $4,285

Total cash receipts                72,600        82,000       99,000

Loan                                         8,000          2,000                    

Total cash available           $80,600      $88,030    $103,285

Total cash payments:

Purchases disbursements  $59,550     $68,625     $63,675

Sales commission                   9,480        10,080        13,080

Other expenses                      4,740          5,040         6,540

Equipment                              2,800                                      

Total cash payments         $76,570      $83,745     $83,295

Loan repayment with interest                                     10,180

Cash balance                      $4,030        $4,285        $9,810

Minimum cash balance      $4,000        $4,000      $4,000

4. The preparation of the absorption costing income statement for Shilow Company is as follows:

Absorption Costing Income Statement

                                              April           May           June    

Sales                                $79,000     $84,000    $109,000

Cost of goods sold (75%) 59,250       63,000         81,750

Gross margin                   $19,750      $21,000     $27,250

Expenses:

Sales commission            $9,480      $10,080     $13,080

Other expenses                 4,740          5,040        6,540

Interest on loan                                                           180

Depreciation                        855             855            855

Total expenses             $15,075      $15,975     $20,655

Net Income                    $4,675        $5,025      $6,595

Data and Calculations:

Current assets as of March 31:

Cash $ 8,800

Accounts receivable $ 25,200

Inventory $ 47,400

Building and equipment, net $ 114,000

Accounts payable $ 28,425

Common stock $ 150,000

Retained earnings $ 16,975

Sales data                 Actual      Budgeted      Cash        Credit

March (actual)       $ 63,000                         $37,800    $25,200

April                                           $ 79,000    $47,400     $31,600

May                                           $ 84,000      50,400       33,600

June                                        $ 109,000      65,400      43,600

July                                          $ 60,000       36,000     24,000

Sales:

60% cash

40% credit

Credit sales are collected in the month following the sale.

Interest on Loan = $180 ($8,000 x 1% + $10,000 x 1%)

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Jordan needs to purchase a car. The car Jordan plans to purchase costs $15,000. Jordan has saved $3,000 to
use as a down payment for the car. Jordan is offered credit terms of 5% APR for 5 years
In one year, how much interest will Jordan pay on this loan?

Answers

In one year, the interest that Jordan will pay on a loan to purchase a car that costs $15,000 with a downpayment of $3,000 at 5% APR for 5 years is $600.

How is interest calculated?

The interest can be computed using an online finance calculator for the 5 years period.

However, to calculate interest for one year, especially the first year, the loan amount is multiplied by the APR, as below.

Data and Calculations:

Cost of car = $15,000

Down payment = $3,000

Car loan = $12,000 ($15,000 - $3,000)

APR = 5%

Loan period = 5 years

Interest for one year (first year) = $600 ($12,000 x 5%)

Thus, the interest for the first year is $600.

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If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.

Answers

For a firm that sells a prestige product, the relationship between price and quantity demanded is a positive direct relationship.

Why is the relationship between demand and price of prestige products direct?

The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.

And when the quantity demanded increases, the price tends to increase.

An example of a prestige product is an old car.

Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a positive direct relationship.

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What is the fifth step in the risk management process?.

Answers

Answer:

Risk Management Process. ...

Here Are The Five Essential Steps of A Risk Management Process. ...

Step 1: Identify the Risk. ...

Step 2: Analyze the Risk. ...

Step 3: Evaluate the Risk or Risk Assessment. ...

Explanation:

cuz it is

Is W. L. Gore a mechanistic or an organic organization? Support your answer with examples from the case

Answers

W. L. Gore has nearly 10,000 employees and more than $3 billion in annual revenues, but, as noted earlier, uses an extremely organic organizational structure. Employees have no bosses, participate on teams, and often create roles for themselves to fill functional gaps within the company.

TRUE OR FALSE - ACCOUNTING

1. The matching principle requires expenses be recorded in the same period that the related revenue is recorded.
2. Generally accepted accounting principles require cash‐basis accounting.
3. Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.
4. Consuming goods and services in the process of generating revenues results in expenses.
5. Debiting “Inventory” will increase the account.

Answers

1 True
2 False - Must be accrual basis
3 True
4 True
5 True

what is a informal business structure

Answers

your business doesn't operate under the guidelines of a written document that spells out the rules, regulations and chain-of-command. Under this structure, your business operates by a system developed by your employees who have proven effective.

In an informal organizational structure, your business doesn't operate under the guidelines of a written document that spells out the rules, regulations and chain-of-command. Under this structure, your business operates by a system developed by your employees who have proven effective.

Question 9 of 10
Why are facts called the "building blocks of legal decisions"?
O A. Because so much time is used to determine whether the facts
presented are accurate or not
B. Because facts form the foundation that judges use to reach their
conclusions
O C. Because facts are written in a way that makes them easy to
identify
D. Because facts tell judges and juries what most people believe is
true

Answers

Answer:

B. Because facts form the foundation that judges use to reach their conclusions

Explanation:

I hope this helps, I just got it right.

A certificate that authorizes an employer to withhold federal income taxes from each employee is called a Form

a. W-2.
b. 1040.
c. W-4.
d. 1040EZ.

Answers

Certificate that authorizes an employer to withhold federal income taxes from each employee is called a form W-4

Using budgeting assumptions when preparing the master budget, ______.

Answers

Answer:

makes it easier to answer "what-if" questions

Explanation:

An investment firm provides its customers mobile applications that significantly simplify traditional investing activities. For example, a customer can purchase a stock by utilizing their phone or tablet. This unique service demonstrates the firm’s desire to practice which of Porter’s strategies?

Answers

The Differentiation strategy is used by the investment firm in standing out in the industry.

What is Michael Porter strategy?

A strategy is defined by Porter as a competitive position that is deliberately chosen as a different set of activities to deliver a unique mix of value.

The Generic Strategies model of Michael Porter includes:

Cost LeadershipDifferentiationFocus.

These strategy are important because they provide an options for organizations to gain competitive advantage.

In conclusion, the Differentiation strategy is used by the investment firm in standing out in the industry.

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A strength of Enterprise's Generation X managers is likely to be their _____

Answers

Answer:

A strength of Generation X managers is likely to be their ability to provide feedback to employees

Explanation:

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Please help as soon as possible How do you reduce 3.75 to its lowest terms Which model best fits the data shown in the scatterplot?A. y=-0.7x+1.9B. y = 0.7x+1.9C. y=-0.7x-3.8D. y=1.9x-07 c)Point C has mesame x-coordinate as point Asame y-coordinate as point BWrite down the coordinatesof point As a result of bringing the monster to life , Victor: A). Is expelled from the university B). Becomes ill and almost diesC). Decides to dedicate his life to science D). Loses his inheritance Mark and Henry win some money and share it in the ratio 1:3. Mark gets 9. How much did Henry get? What caused the US to boycott the 1980 Summer Olympics in Moscow and the Soviets to boycott the 1984 Summer Olympics in Los Angeles? Kimberly Dunning was admitted to the hospital with dyspnea related to an asthma attack. Which acid-base imbalance is she at the highest risk for developing based on her condition The table shows the amount of money that each student each spent at an amusement park. Which measure best represents the center of the data? Lisosomas: Mitocondrias: I need a quick answer please, I will give Brainliest no links please and thanks Write the synonym of the verbs slectionner and opter pour. Use the infinitive form in your answer. How does Algebra act as a tool to improve communication PLEASE HELP1) For each key term or person, write a sentence explaining its significance. -Militarism, Triple Alliance, Kaiser Wilhelm II, Triple Entente (2pts)2) In the period leading up to World War I, how did nationalism unite and divide citizens? (2pts)3) How do imperialism and militarism work together to promote war? (2pts)4) What ideas and beliefs led to the Armenian genocide? (2pts)5) Do you think WWI was avoidable? Use information from the text to support your answer. (2pts) Read the passage.We ran through our circle of friends, trying to think of a single person who would fit in well with our "family." It wasn't difficult to hit on someone.Which best identifies what the term hit means?series of 4 radio buttonsto decide onto strike by actionto indulge excessivelyto affect in a negative way In what areas is leslie's overspendinghurting her budget?select all that apply.ignore my check marks those werent right pleas help How did the goals of MacArthur affect Japans economy in the decades following World War II? who is the main characters in the forgiveness project make a poem about taking care of your reproductive system