Hello accountant

Please assist me with this question. The computer will mark it so you have to follow these steps in order to get the right answer:

Here are some helpful hints in order to score full marks when calculating NPV on AME:

• always calculate the NPV of the payments separately from the NPV of the principle repayment at the very end of the investment
• use the NPV tables at the end of the textbook (using 4 decimal places)
• when completing an amortization table, round every single answer in every cell

On May 1, 2016, Medum Corporation issued a 4year bond worth $426,000 with an interest rate of 7% per annum. Interest is to be paid semiannually on October 31 and April 30. At the time of the issuance, the market interest rate was 8%. Medum Corporation amortizes any premium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. For bond calculations, use the PV tables in Appendix II of the textbook. Bond Issue Price: $Answer Premium or Discount: $Answer b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2016. Date May 1 Account Title and Explanation Debit Credit Answer Answer Cash Answer Answer Discount on Bonds Answer Answer Bonds Payable To record bond issuance 2) Payment of interest and amortization of premium or discount on October 31, 2016. Date Oct 31 Account Title and Explanation Answer Debit Credit Answer Answer Answer Answer Answer To record first payment of interest and amortization 3) Accrual of interest and amortization of premium or discount on December 31, 2016, which is the company's yearend. Date Dec 31 Account Title and Explanation Debit Credit Answer Answer Answer Answer Answer Answer To record the interest accrued on bonds payable 4) Payment of interest and amortization of premium or discount on April 30, 2017. Date Apr 30 Account Title and Explanation Debit Answer Answer Answer Answer Credit Answer Answer Answer Answer To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date May 1 Account Title and Explanation Answer Debit Credit Answer Answer Answer Answer Answer Redemption of bond On May 1, 2016, Medum Corporation issued a 4year bond worth $426,000 with an interest rate of 7% per annum. Interest is to be paid semiannually on October 31 and April 30. At the time of the issuance, the market interest rate was 8%. Medum Corporation amortizes any premium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. For bond calculations, use the PV tables in Appendix II of the textbook. Bond Issue Price: $Answer Premium or Discount: $Answer b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2016. Date May 1 Account Title and Explanation Debit Credit Answer Answer Cash Answer Answer Discount on Bonds Answer Answer Bonds Payable 426000 To record bond issuance 2) Payment of interest and amortization of premium or discount on October 31, 2016. Date Oct 31 Account Title and Explanation Debit Credit Answer Answer Interest Expense Answer Answer Cash Answer Answer Discount on Bonds To record first payment of interest and amortization 3) Accrual of interest and amortization of premium or discount on December 31, 2016, which is the company's yearend. Date Dec 31 Account Title and Explanation Debit Credit Answer Answer Interest Expense Answer Answer Discount on Bonds Answer Answer Interest Payable To record the interest accrued on bonds payable 4) Payment of interest and amortization of premium or discount on April 30, 2017. Date Apr 30 Account Title and Explanation Debit Credit Answer Answer Interest Expense Answer Answer Interest Payable Answer Answer Cash Answer Answer Discount on Bonds To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date May 1 Account Title and Explanation Debit Credit Answer Answer Bonds Payable Answer 426000 Answer Cash Answer Discount on Bonds Redemption of bond Answer Check Q1) Which of the following statements is an example of transaction costs? A. An increase in wages has increased labour costs in China. B. A hike in taxes results in underproduction. C. I paid a commission to the real estate broker when I bought my house. D. Microsoft's profit dropped by 5 percent last quarter. Which of the following illustrates economies of scale? Liza's average total cost changes from $4.50 to $2.20 when she increases salad production from 7 to 9 an hour. Sam's average total cost changes from $1.30 to $2.80 when he increases smoothie production from 5 to 8 gallons an hour. Tina's average total cost remains at $3 when she increases pizza production from 12 to 13 an hour. A. Tina faces economies of scale B. Liza faces economies of scale C. None of the above D. Sam faces economies of scale Which of the following statements illustrates economies of scope? Toshiba uses its designers and specialized equipment to make the hard drive for the iPod. Sony's average total cost starts falling as it increases the production of TV sets. Microsoft's profit doubled in the last quarter of 2014. A rise in China's labour cost is shifting productions to other countries such as Mexico. A.A B.D C.C D.B Q2) Read the news clip, then answer the following questions. A Pepsi, a Business Decision PepsiCo has done a deal with 300 small Mexican farmers close to their two factories to buy corn at a guaranteed price. PepsiCo saves transportation costs and the use of local farms assures it access to the type of corn best suited to its products and processes. "That gives us great leverage because corn prices don't fluctuate so much, but transportation costs do," said Pedro Padierna, president of PepsiCo in Mexico. Fluctuations in the price of corn and in transportation costs shift all of the following except the __________. A. total variable cost curve B. average variable cost, marginal cost, and average total cost curves C. total cost curve D. average fixed cost and total fixed cost curve The deal with farmers to avoid fluctuations in costs benefits PepsiCo for all of the following reasons except _________. A. corn costs remain low and stable B. the type of corn it is buying is best suited to its products and processes C. transportation costs are lower D. it eliminates variable costs Q3) Total product is the total _____ of a good produced in a given period. Marginal product is the change in _____ product that results from a one-unit increase in the _____. Average product is the total product divided by the _____. A. quantity; total; quantity of labour employed; quantity of a factor of production B. cost; average; marginal cost; average cost C. price; average; total product; total cost D. quantity; total; average product; price Q4) Economies of scale refer to the range of output over which A. marginal product equals average product. B. longminusrun average cost falls as output increases. C. marginal cost exceeds average cost. D. longminusrun average cost rises as output increases. E. the marginal product of labour decreases. Q5) Read the news clip, then answer the following questions. Gap Will Focus on Smaller Scale Stores Gap has too many stores that are 12,500 square feet. The target store size is6,000 square feet to 10,000 square feet, so Gap plans to combine previously separate concept stores. Some Gap body, adult, maternity, baby and kids stores will be combined in one store. Thinking of a Gap store as a production plant, Gap has decided to reduce the size of its stores because it _____. A. wants to decrease the number of employees B. wants to produce on a new long-run average cost curve C. wants to shift the average total cost curve upward D. is currently experiencing diseconomies of scale This is a ______ decision because it involves ______. A. long-run; changing the plant B. short-run; a short-run cost curve C. short-run; labour D. long-run; shifting a long-run curve Q6) Choose the option that gives an example of a decision made in the short run followed by an example of a decision made in the long run. A.LG has adopted a new technology to create a new cell phone. The sale of LG phones has increased. B.Starbucks' has hired more labour to meet the increasing demand. Starbucks' has opened another store to meet the increasing demand. C.Olive Garden has increased its plant size. Olive Garden has opened two new restaurants in Ames. D.The profits of Dell has improved this quarter. Consumers' preferences for Dell laptops have changed over time. Q7) When Sam increases smoothie production from 4 litres to 5 litres, his total cost of production increases from $32.50 to $36.85. Calculate Sam's marginal cost of producing smoothies. A. $4.35 B. $4.45 C. $26.85 D. $2.50 Q8) Read the news clip, then answer the following questions. A Bakery on the Rise Some 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month. Avalon's decision to ______ is a short-run decision. Avalon's decision to ______ is a long-run decision. A. hire 15 more people; move to a larger space B. hire 15 more people; serve 500 customers a day C. move to a larger space; hire 15 more people D. serve 500 customers a day; hire 15 more people Avalon's long-run decision is riskier than its short-run decision because ______. A. the CEO moved quickly to make the decision to move to a larger space B. rent will increase each year by more than the increase in payroll C. it is always difficult to find good employees, so some space will be unused D. it might take time before the decision can be reversed, especially if the space is taken on a longterm lease