Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Anything would help! Thanks One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December
Anything would help! Thanks
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December 31, at the end of Its first year of operations, were: The following information is relevant to the first month of operations in the following year: - OPC sell its inventory at $150 per unit, plus sales tax of 6% OPC's January 1 Inventory balance consists of 180 units at a total cost of $12,060. OPC's policy is to use the FIFO method, recorded using a perpetual Inventory system. - The $1,600 in Prepald Rent relates to a payment made in December for January rent this year. - The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected IIfe of five years. It is belng depreclated using the straight-IIne method. - Employee wages are $4,000 per month. Employees are pald on the 16 th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay perlod include $250 of income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are pald monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be pald on March 31 . - Unearned Revenue is for 30 units ordered and pald for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February. - Note Payable arlses from a three-year, 9 percent bank loan recelved on October 1 last year. - The par value on the common stock is $2 per share. - Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share. 0. Use present value tables to show how the total bond issuance proceeds of $81,420 were determined in item 17 by calculating the present value of (a) the $90,000 face value and (b) the annual interest payments. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of \$1) (Use appropriate factor(s) from the tables provided and final answer to the nearest whole dollar amount.) 12. Instead of investing one large amount of cash, OPC could invest equal amounts over the next three years. If OPC can earn 7 percent interest compounded annually, how much cash would OPC need to invest equally at the end of each of the next three years to have saved $98,000 ? (Future Value of $1, Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1 ) (Use appropriate factor(s) from the tables provided and final answer to the nearest whole dollar amount.) One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December 31, at the end of Its first year of operations, were: The following information is relevant to the first month of operations in the following year: - OPC sell its inventory at $150 per unit, plus sales tax of 6% OPC's January 1 Inventory balance consists of 180 units at a total cost of $12,060. OPC's policy is to use the FIFO method, recorded using a perpetual Inventory system. - The $1,600 in Prepald Rent relates to a payment made in December for January rent this year. - The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected IIfe of five years. It is belng depreclated using the straight-IIne method. - Employee wages are $4,000 per month. Employees are pald on the 16 th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay perlod include $250 of income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are pald monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be pald on March 31 . - Unearned Revenue is for 30 units ordered and pald for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February. - Note Payable arlses from a three-year, 9 percent bank loan recelved on October 1 last year. - The par value on the common stock is $2 per share. - Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share. 0. Use present value tables to show how the total bond issuance proceeds of $81,420 were determined in item 17 by calculating the present value of (a) the $90,000 face value and (b) the annual interest payments. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of \$1) (Use appropriate factor(s) from the tables provided and final answer to the nearest whole dollar amount.) 12. Instead of investing one large amount of cash, OPC could invest equal amounts over the next three years. If OPC can earn 7 percent interest compounded annually, how much cash would OPC need to invest equally at the end of each of the next three years to have saved $98,000 ? (Future Value of $1, Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1 ) (Use appropriate factor(s) from the tables provided and final answer to the nearest whole dollar amount.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started