E7-5 (Record sales gross and net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n /60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for balance due from Chester Company.
Instructions
a) Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases.
Sales and receivables are entered at gross selling price.
Sales and receivables are entered at net of cash discounts.
b) Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.
Click here for the solution: On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n /60, f.o.b. shipping point
Showing posts with label sold. Show all posts
Showing posts with label sold. Show all posts
Monday, March 21, 2016
Wednesday, November 11, 2015
Soundgarden Company sold 200 copymaking machines in 2008 for $4,000 apiece together with a one year warranty
E13-10 (Warranties) Soundgarden Company sold 200 copymaking machines in 2008 for $4,000 apiece together with a one year warranty. Maintenance on each machine during the warranty period averages $330.
a.) Prepare entries to record the sale of the machines and the related warranty costs, assuming that the accrual method is used. Actual warranty costs incurred in 2008 were $17,000.
b.) Prepare 2008 entries for Crow assuming that the warranties are not an integral part of the sale. Assume that of the sales total, $150,000 relates to sales warranty contracts. Crow estimates the total cost of servicing the warranties will be $120,000 for 2 years. Estimate revenues earned on the basis of costs incurred and estimated costs.
Click here for the solution: Soundgarden Company sold 200 copymaking machines in 2008 for $4,000 apiece together with a one year warranty
a.) Prepare entries to record the sale of the machines and the related warranty costs, assuming that the accrual method is used. Actual warranty costs incurred in 2008 were $17,000.
b.) Prepare 2008 entries for Crow assuming that the warranties are not an integral part of the sale. Assume that of the sales total, $150,000 relates to sales warranty contracts. Crow estimates the total cost of servicing the warranties will be $120,000 for 2 years. Estimate revenues earned on the basis of costs incurred and estimated costs.
Click here for the solution: Soundgarden Company sold 200 copymaking machines in 2008 for $4,000 apiece together with a one year warranty
Friday, October 9, 2015
Gaelic Industries Inc., operating at full capacity, sold 22,350 units at a price of $150 per unit during 2010
1. Gaelic Industries Inc., operating at full capacity, sold 22,350 units at a price of $150 per unit during 2010. Its income statement for 2010 is as follows:
Sales.......................... $3,352,500
Cost of goods sold............ 2,200,000
Gross Profit............................... 1,152,500
Expenses:
Selling expenses......................... $250,000
Administrative expenses.................. 250,000
Total expenses........................ 500,000
Income from operations..................... $ 652,500
The division of costs between fixed and variable is as follows:
Fixed Variable
Cost of sales 60% 40%
Selling expenses 50% 50%
Administrative expenses 55% 45%
Management is considering a plant expansion program that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $242,500, but will not affect the relationship between sales and variable costs.
1. Determine for 2010 the total fixed costs and the total variable costs.
2. Determine for 2010 (a) the unit variable cost and (b) the unit contribution margin.
3. Compute the break-even sales (units) for 2010.
4. Compute the break-even sales (units) under the proposed program.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $652,500 of income from operations that was earned in 2010.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the 2010 level, what will the income or loss from operations be for 2011?
8. Based on the data given, would you recommend accepting the proposal? Explain.
Click here for the solution: Gaelic Industries Inc., operating at full capacity, sold 22,350 units at a price of $150 per unit during 2010
Sales.......................... $3,352,500
Cost of goods sold............ 2,200,000
Gross Profit............................... 1,152,500
Expenses:
Selling expenses......................... $250,000
Administrative expenses.................. 250,000
Total expenses........................ 500,000
Income from operations..................... $ 652,500
The division of costs between fixed and variable is as follows:
Fixed Variable
Cost of sales 60% 40%
Selling expenses 50% 50%
Administrative expenses 55% 45%
Management is considering a plant expansion program that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $242,500, but will not affect the relationship between sales and variable costs.
1. Determine for 2010 the total fixed costs and the total variable costs.
2. Determine for 2010 (a) the unit variable cost and (b) the unit contribution margin.
3. Compute the break-even sales (units) for 2010.
4. Compute the break-even sales (units) under the proposed program.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $652,500 of income from operations that was earned in 2010.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the 2010 level, what will the income or loss from operations be for 2011?
8. Based on the data given, would you recommend accepting the proposal? Explain.
Click here for the solution: Gaelic Industries Inc., operating at full capacity, sold 22,350 units at a price of $150 per unit during 2010
Wednesday, October 7, 2015
Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications
E 14-8 Investor; straight-line method
(Note: This is a variation of the previous exercise modified to consider the investor's perspective.) Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications.
Required:
1. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2011.
2. Prepare the journal entry to record interest revenue on June 30, 2011.
3. Prepare the journal entry to record interest revenue on December 31, 2018.
Click here for the solution: Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications
(Note: This is a variation of the previous exercise modified to consider the investor's perspective.) Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications.
Required:
1. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2011.
2. Prepare the journal entry to record interest revenue on June 30, 2011.
3. Prepare the journal entry to record interest revenue on December 31, 2018.
Click here for the solution: Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications
Sunday, September 20, 2015
On December 1, 2006, Passey Corporation sold a machine with a carrying amount of $150,000 to its 80%-owned subsidiary
ADVANCE ACCOUNTING Multiple Choice
1. On December 1, 2006, Passey Corporation sold a machine with a carrying amount of $150,000 to its 80%-owned subsidiary, Scully Company, for $200,000. Scully adopted a four-year economic life, no residual value, and the sum-of-the-years'-digits method of depreciation for the machine. If correct working paper eliminations are prepared for Passey Corporation and subsidiary on November 30, 2007, the end of the fiscal year, Passey's net income to be included in consolidated net income is (disregarding income taxes): (Points : 1)
2. In the measurement of minority interest in net income of a partially owned subsidiary, the credit for Depreciation Expense¾Parent in the working paper elimination (in journal entry format) for intercompany gain in a depreciable plant asset is attributed to net income of: (Points : 1)
3. A material realized gain on a subsidiary's open-market acquisition of its parent company's outstanding bonds at a discount is displayed in the consolidated income statement as: (Points : 1)
4. The starting point for the computation of net cash provided by operating activities in a consolidated statement of cash flows (indirect method) for a parent company and its partially owned subsidiary is: (Points : 1)
5. The realized but unrecognized gain on extinguishment of debt resulting from a parent company's open-market acquisition of the subsidiary's outstanding bonds is recorded in subsequent journal entries by: (Points : 1)
6. In the preparation of a consolidated statement of cash flows, dividends declared and paid to minority shareholders of a subsidiary are: (Points : 1)
7. Included in a working paper elimination (in journal entry format) for intercompany sales of merchandise was a debit to Minority Interest in Net Assets of Subsidiary. This debit indicates that: (Points : 1)
8. Included in a working paper elimination (in journal entry format) for intercompany sales was a credit of $60,000 to Cost of Goods Sold¾Subsidiary. The credit indicates that, for the accounting period involved: (Points : 1)
9. In the installment acquisition of a controlling interest in a subsidiary, the Retained Earnings of Subsidiary/Investee ledger account is first credited in a journal entry of the parent company/investor to: (Points : 1)
10. Intercompany loans, operating leases of property, and rendering of services do not include an element of intercompany profit gain or loss for the consolidated entity because: (Points : 1)
Click here for the solution: On December 1, 2006, Passey Corporation sold a machine with a carrying amount of $150,000 to its 80%-owned subsidiary
1. On December 1, 2006, Passey Corporation sold a machine with a carrying amount of $150,000 to its 80%-owned subsidiary, Scully Company, for $200,000. Scully adopted a four-year economic life, no residual value, and the sum-of-the-years'-digits method of depreciation for the machine. If correct working paper eliminations are prepared for Passey Corporation and subsidiary on November 30, 2007, the end of the fiscal year, Passey's net income to be included in consolidated net income is (disregarding income taxes): (Points : 1)
2. In the measurement of minority interest in net income of a partially owned subsidiary, the credit for Depreciation Expense¾Parent in the working paper elimination (in journal entry format) for intercompany gain in a depreciable plant asset is attributed to net income of: (Points : 1)
3. A material realized gain on a subsidiary's open-market acquisition of its parent company's outstanding bonds at a discount is displayed in the consolidated income statement as: (Points : 1)
4. The starting point for the computation of net cash provided by operating activities in a consolidated statement of cash flows (indirect method) for a parent company and its partially owned subsidiary is: (Points : 1)
5. The realized but unrecognized gain on extinguishment of debt resulting from a parent company's open-market acquisition of the subsidiary's outstanding bonds is recorded in subsequent journal entries by: (Points : 1)
6. In the preparation of a consolidated statement of cash flows, dividends declared and paid to minority shareholders of a subsidiary are: (Points : 1)
7. Included in a working paper elimination (in journal entry format) for intercompany sales of merchandise was a debit to Minority Interest in Net Assets of Subsidiary. This debit indicates that: (Points : 1)
8. Included in a working paper elimination (in journal entry format) for intercompany sales was a credit of $60,000 to Cost of Goods Sold¾Subsidiary. The credit indicates that, for the accounting period involved: (Points : 1)
9. In the installment acquisition of a controlling interest in a subsidiary, the Retained Earnings of Subsidiary/Investee ledger account is first credited in a journal entry of the parent company/investor to: (Points : 1)
10. Intercompany loans, operating leases of property, and rendering of services do not include an element of intercompany profit gain or loss for the consolidated entity because: (Points : 1)
Click here for the solution: On December 1, 2006, Passey Corporation sold a machine with a carrying amount of $150,000 to its 80%-owned subsidiary
Thursday, September 10, 2015
The entry to record the cost of inventory sold includes a credit to cost of goods sold
1. The entry to record the cost of inventory sold includes a credit to cost of goods sold.
2. The faster the sale of inventory and the collection of cash, the higher the profits will be for a business.
3. In the closing entry process, the sales returns and allowances account is credited.
4. Operating expenses are divided into administrative expenses and selling expenses on the income statement.
5. A merchandiser purchases inventory on account under a perpetual inventory system with terms of 2/10 n/30. The merchandiser would:
Question 6
Ending inventory equals the number of units on hand multiplied by the unit cost.
Question 7
Sales revenue minus sales returns and allowances and sales discounts equals
Question 8
Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include a:
Question 9
In period of increasing prices, FIFO produces lower cost of goods sold and higher gross profit than LIFO.
Question 10
An error in ending inventory carries over into the next period.
Question 11
Which of the following inventory costing methods is the LEAST likely to mimic the actual physical flow of inventory?
Question 12
Which of the following principles require the application of the lower-of-cost-or-market rule?
Question 13
A company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?
Question 14
A deposit in transit has been recorded by the company but not by the bank.
Question 15
To maintain effective internal control, all incoming mail should be opened by a mailroom employee who has access to the accounting records.
Question 16
The initial entry to establish a petty cash fund involves a debit to cash and a credit to petty cash.
Question 17
Internal control does not:
Question 18
A check drawn by the depositor for $205 in payment of a liability was recorded in the journal as $502. This item would be included in the bank reconciliation as a(n):
Question 19
The entry to reimburse the petty cash fund includes a:
Question 20
Under the allowance method, the entry to write off an account that has been deemed uncollectible has no effect on the total asset's of the firm.
Question 21
The allowance method and the direct write-off method are both methods of aging accounts
Question 22
A written promise to pay a specified amount of money at a particular future date is referred to as a promissory note.
Question 23
One method of establishing control over collections of accounts receivable is to:
Question 24
Using the balance sheet approach to estimate uncollectibles, accounts, which are 90 days old,are:
Question 25
Under the direct write-off method, the entry to record an uncollectible account has the following effect on the financial statements:
Click here for the solution: The entry to record the cost of inventory sold includes a credit to cost of goods sold
2. The faster the sale of inventory and the collection of cash, the higher the profits will be for a business.
3. In the closing entry process, the sales returns and allowances account is credited.
4. Operating expenses are divided into administrative expenses and selling expenses on the income statement.
5. A merchandiser purchases inventory on account under a perpetual inventory system with terms of 2/10 n/30. The merchandiser would:
Question 6
Ending inventory equals the number of units on hand multiplied by the unit cost.
Question 7
Sales revenue minus sales returns and allowances and sales discounts equals
Question 8
Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include a:
Question 9
In period of increasing prices, FIFO produces lower cost of goods sold and higher gross profit than LIFO.
Question 10
An error in ending inventory carries over into the next period.
Question 11
Which of the following inventory costing methods is the LEAST likely to mimic the actual physical flow of inventory?
Question 12
Which of the following principles require the application of the lower-of-cost-or-market rule?
Question 13
A company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?
Question 14
A deposit in transit has been recorded by the company but not by the bank.
Question 15
To maintain effective internal control, all incoming mail should be opened by a mailroom employee who has access to the accounting records.
Question 16
The initial entry to establish a petty cash fund involves a debit to cash and a credit to petty cash.
Question 17
Internal control does not:
Question 18
A check drawn by the depositor for $205 in payment of a liability was recorded in the journal as $502. This item would be included in the bank reconciliation as a(n):
Question 19
The entry to reimburse the petty cash fund includes a:
Question 20
Under the allowance method, the entry to write off an account that has been deemed uncollectible has no effect on the total asset's of the firm.
Question 21
The allowance method and the direct write-off method are both methods of aging accounts
Question 22
A written promise to pay a specified amount of money at a particular future date is referred to as a promissory note.
Question 23
One method of establishing control over collections of accounts receivable is to:
Question 24
Using the balance sheet approach to estimate uncollectibles, accounts, which are 90 days old,are:
Question 25
Under the direct write-off method, the entry to record an uncollectible account has the following effect on the financial statements:
Click here for the solution: The entry to record the cost of inventory sold includes a credit to cost of goods sold
Tuesday, September 8, 2015
On December 31, 2009 Berry Corporation sold some of its product to Flynn Company, accepting a 3%, four-year promissory note
On December 31, 2009 Berry Corporation sold some of its product to Flynn Company, accepting a 3%, four-year promissory note having a maturity value of $900,000 (interest payable annually on December 31). Berry Corporation pays 6% for its borrowed funds. Flynn Company, however, pays 8% for its borrowed funds. The product sold is carried on the books of Berry at a manufactured cost of $570,000. Assume Berry uses a perpetual inventory system.
Instructions
(a) Prepare the journal entries to record the transaction on the books of Berry Corporation at December 31, 2009. (Assume that the simple interest method is used.)
(b) Make all appropriate entries for 2010 on the books of Berry Corporation.
(c) Make all appropriate entries for 2011 on the books of Berry Corporation.
Click here for the solution: On December 31, 2009 Berry Corporation sold some of its product to Flynn Company, accepting a 3%, four-year promissory note
Instructions
(a) Prepare the journal entries to record the transaction on the books of Berry Corporation at December 31, 2009. (Assume that the simple interest method is used.)
(b) Make all appropriate entries for 2010 on the books of Berry Corporation.
(c) Make all appropriate entries for 2011 on the books of Berry Corporation.
Click here for the solution: On December 31, 2009 Berry Corporation sold some of its product to Flynn Company, accepting a 3%, four-year promissory note
Sunday, September 6, 2015
On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000
BE 5-1 On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2012. Apache has no significant obligations to perform services after the sale. How much gross profit will Apache recognize in both 2011 and 2012 applying the cost recovery method?
Click here for the solution: On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000
Click here for the solution: On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000
On June 3, Hunt Company sold to Ann Mount merchandise having a sale price of $8,000 with terms of 2/10, n/60, f.o.b. shipping point
On June 3, Hunt Company sold to Ann Mount merchandise having a sale price of $8,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $120, terms n/30, was received by Mount on June 8 from the Olympic Transport Service for the freight cost. Upon receipt of the goods, June 5, Mount notified Hunt Company that merchandise costing $600 contained flaws that rendered it worthless. The same day Hunt Company issued a credit memo covering the worthless merchandise and asked that it be returned at company expense. The freight on the returned merchandise was $24, paid by Hunt Company on June 7. On June 12, the company received a check for the balance due from Mount.
Instructions
(a) Prepare journal entries on Hunt Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered net of cash discounts.
(b) Prepare the journal entry under basis 2, assuming that Ann Mount did not remit payment until August 5.
Click here for the solution: On June 3, Hunt Company sold to Ann Mount merchandise having a sale price of $8,000 with terms of 2/10, n/60, f.o.b. shipping point
Instructions
(a) Prepare journal entries on Hunt Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered net of cash discounts.
(b) Prepare the journal entry under basis 2, assuming that Ann Mount did not remit payment until August 5.
Click here for the solution: On June 3, Hunt Company sold to Ann Mount merchandise having a sale price of $8,000 with terms of 2/10, n/60, f.o.b. shipping point
Wednesday, September 2, 2015
The Lineberry Golf Cart Co. sold 7,400 carts this year at an average unit price of $3,000
The Lineberry Golf Cart Co. sold 7,400 carts this year at an average unit price of $3,000. Fifty days of sales remained uncollected in accounts receivable at the end of the year. The firm produced the carts at a 42% cost ratio (COGS/Revenue) and had three months of inventory on hand at year end (3/12 of the year’s COGS).
The golf business is booming and management plans a 10% increase in unit sales despite a 5% price increase. The firm has programs in place to improve production efficiency, inventory management, and the effectiveness of collections efforts. It is assumed that these programs will decrease the cost ratio to 40% lower year-end inventory to two months, and lower year-end receivables to 40 days of sales.
Compute Lineberry’s revenue, COGS (cost of goods sold), and gross margin as well as ending receivables and inventory for this year’s and next year’s plan. Calculate using a 360-day year and assume sales are evenly distributed over the year.
Click here for the solution: The Lineberry Golf Cart Co. sold 7,400 carts this year at an average unit price of $3,000
The golf business is booming and management plans a 10% increase in unit sales despite a 5% price increase. The firm has programs in place to improve production efficiency, inventory management, and the effectiveness of collections efforts. It is assumed that these programs will decrease the cost ratio to 40% lower year-end inventory to two months, and lower year-end receivables to 40 days of sales.
Compute Lineberry’s revenue, COGS (cost of goods sold), and gross margin as well as ending receivables and inventory for this year’s and next year’s plan. Calculate using a 360-day year and assume sales are evenly distributed over the year.
Click here for the solution: The Lineberry Golf Cart Co. sold 7,400 carts this year at an average unit price of $3,000
Monday, August 31, 2015
A machine was purchased two years ago for $120,000 and can be sold for $50,000 today
A machine was purchased two years ago for $120,000 and can be sold for $50,000 today. The machine has been depreciated using the MACRS 5-year recovery period and the firm pays 40 percent taxes on both ordinary income and capital gains. Find the firm's tax liability (benefit), if any.
Click here for the solution: A machine was purchased two years ago for $120,000 and can be sold for $50,000 today
Click here for the solution: A machine was purchased two years ago for $120,000 and can be sold for $50,000 today
Sunday, August 23, 2015
William sold Section 1245 property for $25,000 in 2010
William sold Section 1245 property for $25,000 in 2010. The property cost $35,000 when it was purchased 5 years ago. The depreciation claimed on the property was $16,000.
a. Calculate the adjusted basis of the property.
b. Calculate the recomputed basis of the property.
c. Calculate the amount of ordinary income under Section 1245.
d. Calculate the Section 1231 gain.
Click here for the solution: William sold Section 1245 property for $25,000 in 2010
a. Calculate the adjusted basis of the property.
b. Calculate the recomputed basis of the property.
c. Calculate the amount of ordinary income under Section 1245.
d. Calculate the Section 1231 gain.
Click here for the solution: William sold Section 1245 property for $25,000 in 2010
Tuesday, August 18, 2015
On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest. The bonds were dated January 1, 2007. Interest is paid semiannually on January 1 and July 1. On April 1, 2011, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them. Hanson uses the straight-line method for amortization of bond premiums and discounts.
(a) What was the amount of the gain or loss on retirement of the bonds?
(b) Prepare the journal entry needed at April 1, 2011 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1, 2011. Record interest and amortization on only the bonds retired.
(c) Prepare the journal entry needed at July 1, 2011 to record interest and premium or discount amortization.
Click here for the solution: On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
(a) What was the amount of the gain or loss on retirement of the bonds?
(b) Prepare the journal entry needed at April 1, 2011 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1, 2011. Record interest and amortization on only the bonds retired.
(c) Prepare the journal entry needed at July 1, 2011 to record interest and premium or discount amortization.
Click here for the solution: On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
Saturday, July 25, 2015
Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000
E16–5 Horizon Telecom sold $300,000 worth of 120-day commercial paper
for $298,000. What is the dollar amount of interest paid on the
commercial paper? What is the effective 120-day rate on the paper?
Click here for the solution: Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000
Click here for the solution: Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000
Sunday, July 12, 2015
St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share
St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share. After issuance costs, St. Joe netted $57 per share. The company has a marginal tax rate of 40 percent.
a. Calculate the after-tax cost of this preferred stock offering assuming that this stock is a perpetuity.
b. if the stock is callable in 5 years at $66 per share and investors expect it to be called at that time, what is the after-tax cost of this preferred stock offering? (Compute to the nearest whole percent.)
Click here for the solution: St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share
a. Calculate the after-tax cost of this preferred stock offering assuming that this stock is a perpetuity.
b. if the stock is callable in 5 years at $66 per share and investors expect it to be called at that time, what is the after-tax cost of this preferred stock offering? (Compute to the nearest whole percent.)
Click here for the solution: St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share
Wednesday, June 17, 2015
(Determining and Interpreting Flexible Budget Variances) Use the standard price and cost data supplied in Problem 15-18. Assume that Holligan actually produce and sold 31,000 books
Problem 15-19 Determining and Interpreting Flexible Budget Variances
Use the standard price and cost data supplied in Problem 15-18. Assume that Holligan actually produce and sold 31,000 books. The actual sales price and costs incurred follow.
AND SO ON
Check:
Flexible Budget Variance of NI: $25,900 U
Click here for the solution: (Determining and Interpreting Flexible Budget Variances) Use the standard price and cost data supplied in Problem 15-18. Assume that Holligan actually produce and sold 31,000 books
Use the standard price and cost data supplied in Problem 15-18. Assume that Holligan actually produce and sold 31,000 books. The actual sales price and costs incurred follow.
AND SO ON
Check:
Flexible Budget Variance of NI: $25,900 U
Click here for the solution: (Determining and Interpreting Flexible Budget Variances) Use the standard price and cost data supplied in Problem 15-18. Assume that Holligan actually produce and sold 31,000 books
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