Quaker Company announces a bond issue of $89,400 to be issued at 5% (which is at par). It is a ten year issue with interest paid semi-annually and principal due on the maturity date. The issue date is to be July 1st. However the bonds are actually not sold until September 1st. Quaker Company prepares its annual financial statements on October 31st. Required 1: What is the amount of cash received by Quaker Company on September 1st? $ Required 2: What is the amount of interest payable recognized in the books as of October 31st of year 1? $ Required 3: What is the amount of loan payable cancelled in year 10? $[
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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