Answer:
The Journal entries are as follows:
(i) On January 3,
Salaries expenses A/c Dr. $110,000
To salaries payable $110,000
(To record the salaries expenses)
(ii) On January 3,
Merchandise inventory A/c Dr. $55,692
Raw material inventory A/c Dr. $37,128
To accounts payable A/c $92,820
(To record the merchandise and raw material)
Shipping cost A/c Dr. $550
To bank A/c $550
(To record the shipping cost)
(iii) On January 3,
Accounts receivables A/c Dr. $22,000
To sales $22,000
(To record the sales on account)
cost of goods sold A/c Dr. $15,180
To Merchandise inventory $15,180
(To record the cost of goods sold)
(iv) Cash A/c Dr. $16,850
To accounts receivables $16,850
(To record the cash received)
The journal entries for the given transactions on January 3rd are provided below.
Explanation:January 3:
Journal Entry: Debit: Payroll Expense $110,000 Credit: Cash $110,000Journal Entry: Debit: Safety Product Inventory $55,692 Debit: Raw Materials $37,128 Credit: Accounts Payable $92,820Journal Entry: Debit: Delivery Expense $550 Credit: Cash $550Journal Entry: Debit: Accounts Receivable $22,000 Credit: Sales Revenue $22,000 Debit: Cost of Goods Sold $15,180 Credit: Inventory $15,180Journal Entry: Debit: Cash $16,850 Credit: Accounts Receivable $16,850Journal entries are the primary way of recording financial transactions in accounting. They provide a chronological record of all financial activities within a business. Each entry includes specific information about the accounts affected, the amounts involved, and a brief description of the transaction.
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In the theory of perfect competition, the assumption of easy entry into and exit from the market implies Group of answer choices positive economic profits in the long run. losses in the long-run equilibrium. zero economic profits in the long run. zero economic profits in both the short run and the long run. positive economic profits in both the short run and the long run.
Answer:
Zero economic profits in the long run.
Explanation:
In a perfect competition, firms are able to freely enter into, or exit a market.
As more and more firms enter the market, it causes an increase in supply in the long run, which leads to a fall in prices and therefore profits, such that firms will start to earn normal profits or zero economic profits.
In perfect competition, the assumption of easy entry and exit into the market implies zero economic profits in the long run.
Explanation:In the theory of perfect competition, the assumption of easy entry into and exit from the market implies zero economic profits in the long run. In perfectly competitive markets, when economic profits are positive, new firms will be attracted to enter the market. This increases competition and drives down profits until they reach zero in the long run. Similarly, when economic losses occur, firms exit the market, reducing competition and allowing remaining firms to eventually reach zero economic profits.
You have been requested by the secretary of agriculture of a Central American country to determine whether cattle produced in that country could be hedged using the Chicago Mercantile Exchange(CME) live cattle contract. What information would you need to collect to determine whether this is feasible? What suggestions would you propose (to the country, to the CME) to make hedging Central American cattle in the CME cattle contract?
Answer:
Answer explained below
Explanation:
The variation between the futures or derivatives price and spot price at any given point in time is called basis. It is obtained by subtracting future price from the cash price and can be negative or positive.
Whatever be the basis position, whether positive or negative, before expiry of the contract but at the end of the expiry, it will converge with the spot prices.
Basis risk is the probability of the basis strengthening or weakening after the hedge has been implemented till the time the hedge is exited. Basis can fluctuate making calculation of hedging difficult.
Long basis positions gains from a strengthening of a basis. Short hedges have long basis positions. Short hedge means taking up a short futures position where underlying is owned for delivery in the future.
Short basis points gains from weakening of the basis. Long hedges have a short basis points. Long hedges involve buying up of futures and if underlying prices increase the gain in the long future, will be there.
Which of the following statements is true? Group of answer choices A perfectly competitive firm that seeks to maximize profits will not be resource-allocative efficient. If the demand curve and the marginal revenue curve weren't the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient. Resource allocative efficiency exists when a firm produces its output at the lowest possible per unit cost (lowest ATC). Productive efficiency exists when firms produce the quantity of output at which price equals marginal cost.
Answer:If the demand curve and the marginal revenue curve weren't the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient.
Explanation: Demand curve is a graphical representation of the rate of change of demand as the price of a product changes.
Marginal revenue curve is a graphical representation of the rate of change of marginal revenueas the production and the quantity of output produced changes.
For a perfectly competitive firm with no market control, the marginal revenue curve is a horizontal line.
FOR A PERFECTLY COMPETITIVE FIRM THE MARGINAL REVENUE CURVE AND THE DEMAND CURVE SHOULD BE THE SAME IF THE FIRM ALLOCATES ITS RESOURCES EFFICIENTLY.
The journal entry to record the prior year’s deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end) as revenue in the current year would include:
a. A credit to Revenues Control.
b. A debit to Deferred Inflows: Property Taxes; and a credit to Revenues Control.
c A debit to Deferred Inflows: Property Taxes.
d. A debit to Revenues Control.
Answer:
b. A debit to Deferred Inflows: Property Taxes; and a credit to Revenues Control.
Explanation:
In accrual accounting revenues and expenses are not recognised till they are earned or incurred.
Deferred revenue is the income for goods that have not been delivered yet. For example if a business made sales of books worth $500 but have not delivered the goods to the buyer, the income realised is credited to deferred income. When the books have been delivered the income can now be recognised and moved to revenue account.
So in the scenario given the property taxes have not been collected yet and Soni's recorded as Deferred inflow from the previous year. When the taxes are collected we debit Deferred Inflow- Property taxes and credit Revenue Control.
David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,700. They have made prepayments of $1,500 and also have a child tax credit of $2,000, of which $1,400 is refundable.What is the amount of their tax refund or taxes due?
Answer:
-$1,800
Explanation:
Given that
Tax liability = $1,700
Prepayment made = $1,500
Child tax credit = $2,000
The computation of tax refund is given below:-
= Tax liability - (Prepayment made + Child tax credit)
= $1,700 - ($1,500 + $2,000)
= $1700 - $3500
= -$1,800
Therefore, from the above calculation simply we subtract tax liability from prepayment and child tax credit.
Barney Buyer purchased 15 bags of beans from Sam Seller. Each bag of beans weighed 1 lb.. Upon delivery, Barney will have certain rights and duties. Identify which is Barney's right or which is Barney's duty.
He may examine the beans.
[ Choose ] Duty Right
He must pay for the bags of beans that he accepted.
[ Choose ] Duty Right
He may reject all the bags of beans even if only some of the bags of beans are nonconforming.
[ Choose ] Duty Right
He may accept the beans and then seek damages for the nonconforming bags.
[ Choose ] Duty Right
He may accept the conforming bags of beans and reject the nonconforming bags.
[ Choose ] Duty Right
He must give notice of rejection to allow Sam to cure.
[ Choose ] Duty Right
Answer:
Identify which is Barney's right or which is Barney's duty.
He may examine the beans.
[ Right ]
He must pay for the bags of beans that he accepted.
[ Duty ]
He may reject all the bags of beans even if only some of the bags of beans are nonconforming.
[ Right ]
He may accept the beans and then seek damages for the nonconforming bags.
[ Right ]
He may accept the conforming bags of beans and reject the nonconforming bags.
[ Right ]
He must give notice of rejection to allow Sam to cure.
[ Duty ]
Explanation:
The Rights are enshrined in a contract of sales between both parties to the contract. They are actions either party can take in the event one party contravenes the covenant/agreement of the contract
The Duties are equally spelled out in the contract. They are actions each party is expected to carry out to keep the contract active.
Final answer:
Barney Buyer has certain rights and duties upon receiving 15 bags of beans from Sam Seller. His rights include examining, rejecting, and seeking damages for nonconforming goods, while his duties encompass paying for accepted goods and notifying of rejection for curing. These elements underscore essential contractual obligations and remedies in commercial transactions.
Explanation:
Barney Buyer purchased 15 bags of beans from Sam Seller. Upon delivery, Barney has specific rights and duties in this transaction. Critically, these rights and duties are foundational in understanding the legal framework surrounding commercial transactions.
He may examine the beans. [Right]
He must pay for the bags of beans that he accepted. [Duty]
He may reject all the bags of beans even if only some of the bags of beans are nonconforming. [Right]
He may accept the beans and then seek damages for the nonconforming bags. [Right]
He may accept the conforming bags of beans and reject the nonconforming bags. [Right]
He must give notice of rejection to allow Sam to cure. [Duty]
These components of Barney's rights and duties highlight the principles of contractual obligations and remedies in commercial law, which ensure that both parties in a transaction are protected and have a clear understanding of their responsibilities.
ABC Insurance retains the first $1 million of each property damage loss and purchases insurance 22) for that part of any property loss that exceeds $1 million. The insurance for property losses above $1 million is called
A) coinsurance
B) excess insurance
C) liability insurance.
D) primary insurance.
Answer:
B) excess insurance
Explanation:
Excess insurance is also known as excess waiver insurance and is amount that will be paid in case of an accident that exceeds normal insurance cover. The amount covered by excess insurance is agreed between the beneficiary and the insurance company.
It protects one against excess charges in cases where a car is stolen or damaged.
For example of you hire a car that has standard insurance, and it is involved in an accident. If the damage is above the limit of insurance cover you will have to pay the rental company the excess for the repairs. Excess insurance covers costs that are high, with some covering up to $6,000.
So if ABC purchases insurance for part of property loss that exceeds $1 million, they are purchasing excess insurance to protect themselves from loss.
A computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of 5 years. Determine the second year's depreciation expense using the straight-line method.
Answer:
The second year's depreciation expense using the straight-line method is $10,200
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement based on the estimated useful life of the asset.
Depreciation = (cost - salvage value)/estimated useful life
where the salvage value is the estimate of the amount that will be received from the disposal of the asset after its useful life.
Annual depreciation
= ($56,000 - $5,000)/5
= $10,200
Answer:
$10,200
Explanation:
Deprecation is way of expensing the cost of an asset.
Deprecation expense using the straight line depreciation method =( Cost of asset - residual value) / useful life
($56,000 - $5,000) / 5 = $10,200
The depreciation expense each year is $10,200.
I hope my answer helps you
Terri works at Timmy's Toy Factory on the assembly line. She has been designated as "Assistant Manager." The majority of her time is spent demonstrating how to assemble the toys to the new employees on the line. In addition, she spends about 5% of her time processing paperwork for the Manager of the line. Terri often works more than 40 hours a week to keep up with all her duties, but because she is an assistant manager, she is not paid overtime. Which of the following statements is true? Select one: a. Terri's pay is not consistent with the FLSA because she is a non-exempt employee. b. Terri should be paid overtime according to the FLSA because she is an exempt employee. c. Terri's pay is consistent with the FLSA because she is a salaried worker. d. Terri should be given compensatory time off but not overtime because she is a salaried worker.
Terri's classification as an exempt or non-exempt employee under the FLSA will determine her eligibility for overtime pay. Since her job involves training and managerial paperwork, she could potentially meet the criteria for exempt status but more details about her role would be needed to make a clear determination.
Explanation:The question concerns whether Terri should be paid overtime according to the Fair Labor Standards Act (FLSA). If Terri is classified as an exempt employee, she may not be eligible for overtime pay. The FLSA defines exempt status based on job duties, salary level, and salary basis. Given that Terri spends most of her time demonstrating to new employees which is a form of training and a small portion of her time completing managerial paperwork, it could argue for her exempt status. This would include duties such as supervising other employees, having input in the hiring process, and having managerial responsibilities. Since the information provided does not specify Terri's full range of duties or her level of decision-making authority, it's not clear whether she meets the criteria for exempt status under the FLSA. If she is non-exempt, she should be paid for any hours worked over 40 in a workweek. The most accurate answer based on the given information, though subject to further specification of Terri's role, might be that her pay could potentially be consistent with the FLSA if she meets the criteria for an exempt employee.
Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss whether you agree or disagree with this statement. Explain your answer in a well-constructed and cogent response.
Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement
Explanation:
when a licensing arrangement is structured in such a way that ir reduces the risks of a firm's technological know-how being expropriated by licensees, then licensing may be said to be appropiate.
For example : when a firm perceives its technological advantage can be intimated by its competitor ,in such case the company gets its technology licensed before the imitation of its technology occur.By doing so the firm may deter its competitors from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments.
so we can say that Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement
It is necessary to weigh the advantages and disadvantages of licensing proprietary technology to foreign competitors in order to form a consistent opinion.
What are the disadvantages of technology licensing?For an organization that owns the rights to a certain technology, licensing to other companies may not be a good strategy to gain competitive advantage, as innovation is an essential characteristic for organizational success.
Therefore, technology licensing can be advantageous if an organization has its structure and objectives aligned with providing know-how to other companies, such as a franchise network for example.
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Your division has been asked to compile a recommendation for the price point for an innovative software application. You need to know how much customers will be willing to pay and under what circumstances. Conduct a scientific experiment. Access traditional sources and electronic sources. Conduct primary research for firsthand information.
Answer:Conduct a Scientific experiment.
Explanation:Product pricing is a process through which the price of a particular product is determined, this can be done through conducting a Scientific experiment involving the target customers to know how much they will be willing to pay for that product and under what circumstances.
Scientific experiment ensures that stepwise or procedural approach is followed in order to specifically get proper and reliable Information from the audience or Customers, it gives a unique Information regarding what you are looking for.
To determine the price point for a software application, you need to conduct primary research to get firsthand information from potential customers, and analyze secondary data from traditional and electronic sources. Conjoint Analysis and Price Sensitivity Meter can be valuable in understanding customers' willingness to pay and perceived value.
Explanation:To conduct a scientific experiment to determine an appropriate price point for an innovative software application, you would primarily need to perform a market analysis. It would involve primary research such as surveys, interviews or focus groups to gather firsthand information about how much potential customers might be willing to pay.
Next, you'd also want to analyze secondary data, meaning pre-existing data in your field. Traditional sources might include business reports, while electronic sources could be online databases or articles. This would also help you understand under what circumstances customers may be willing to pay different price points.
In your actual experiment, you could consider methods such as Conjoint Analysis or Price Sensitivity Meter (PSM) to understand customers' preferences and their perception of value in relation to the price.
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You recently conducted a series of interviews for an accounting position at your law firm. You’ve decided on a candidate but need to inform the other applicants that they were not selected for the position.How can you reduce the rejected applicants’ disappointment? Check all that apply.A. Reveal specific reasons for not hiring the applicant.B. Compare the applicant to the candidate hired for the position.C. Use vague explanations.D. Use an indirect pattern.
Final answer:
In rejecting job applicants, provide specific constructive feedback and use an indirect pattern of communication, while avoiding vague explanations and direct comparisons with the hired candidate.
Explanation:
When informing rejected applicants that they were not selected for the accounting position, it is important to be professional and empathetic. Offering specific reasons for not selecting the applicant, without making direct comparisons to the candidate who was hired, can provide closure and opportunities for personal development. Using an indirect pattern of communication can be less harsh, soften the rejection, and maintain a positive image of your law firm. Avoid using vague explanations, as they do not contribute to the candidate’s understanding of the decision and can be frustrating.
Positive feedback and an invitation to apply for future openings can also help mitigate disappointment and preserve a good relationship with potential future employees.
Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?
Answer:
$50,000
Explanation:
Data given in the question
Number of wheat sold to Big Ben Bakery = $5,000
Number of hamburger buns sold to Hamburger heaven = $11,000
Buys of beef = $20,000
Number of hamburgers used = 10,000
Selling price for each hamburger = $5
So by considering the above information, the GDP amounted to
= Number of hamburgers used × Selling price for each hamburger
= 10,000 × $
= $50,000
As GDP refers to the value of final goods and services that are to be produced.
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $67,697. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $14,215 before adjustment on August 31.Journalize the adjusting entry for uncollectible accounts as of August 31.
Answer:
The journal entry is as follows:
On August 31,
Bad expense A/c Dr. $53,482
To Allowance for doubtful accounts $53,482
(To record the adjustment entry to increase allowance for doubtful accounts)
Working notes:
Allowance for doubtful accounts:
= Allowance for Doubtful Accounts at August 31 - Allowance for doubtful accounts before adjustment on August 31
= $67,697 - $14,215
= $53,482
On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.
1. Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.
June 30 entry
Answer:
Debt Securities Investment 493,841.79 debit
Discount on D-S Investment 6,158.21 debit
Cash 500,000 credit
--to record bonds purchase--
Cash 22,500 debit
Discount on D-S Investment 769.78 credit
Interest revenue 21,730.22 credit
--to record first interest collection--
Interest receivables 22,500 debit
Discount on D-S Investment 769.78 credit
Interest revenue 21,730.22 credit
--to record second interest collection--
Explanation:
cost 493,841.79
face value 500,000.00
discount: 6,158.21
We divide this over the total payment left:
6,158.21 / 8 = 769,78
interest proceeds
500,000 x 9% / 2 = 22,500.00
amorization (769.78)
Interest revenue 21,730.22
Answer:
Explanation:
Face value = 500000
Discount = -16158.21
Fair Value = 483841.79
Amortization Schedule
year Amount Interest repay Closing
6 months 483841.79 0 22500 461341.79
6 months 461341.79 48384.2 22500 487225.96
investment in bond 483841.79
Cash 483841.79
To record the investment at amortized cost.
Cash 22500
Investment 22500
to record the semi annual interest payment
Cash 22500
Investment 25884.2
Interest Income 48384.2
Culver Corporation earned $262,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 13,500 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.(a) Are the warrants dilutive?
(b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
(c) Compute diluted earnings per share.
Answer:
a) The warrant are Dilutive
b) Basic EPS $2.62
c) Diluteed EPS = $2.31
Explanation:
a) The warrants are dilute because the cost of exercising the rights is lover than the market price
b) Basic Eps = Total Earning/Share Outstanding = $262,000/100,000 = $2.62
c) Diluted Eps = Earnings/(Shares outstanding+potential shares)
= $262,000/(100,000+13,500) = $2.31
Summary operating data for Loma Company during the current year ended April 30, 20Y6, are as follows: cost of goods sold, $7,500,000; Expenses incurred in the administration or general operations of the business, sometimes called general expenses.administrative expenses, $750,000; interest expense, $100,000; rent revenue, $120,000; sales, $13,580,000 and Expenses that are incurred directly in the selling of merchandise.selling expenses, $1,250,000.
Prepare a single-step income statement.
Loma Company
Income Statement
For the Year Ended April 30, 20Y6
Revenues:
Sales
Rent revenue
Total revenues
Expenses:
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Net income
Answer:
Loma Company's Income Statement for the year ended is $4,100,000
Explanation:
Loma Company
Income Statement for the Year Ended April 30, 20Y6
Revenues:
Sales $13,580,000
Rent revenue $120,000
Total revenues $13,700,000
Less Expenses:
Cost of goods sold $7,500,000
Selling expenses $1,250,000
Administrative expenses $750,000
Interest expense $100,000
Total expenses $9,600,000
Net income $4,100,000
(Net Income = Total Revenue - Total Expenses)
A chemical manufacturer is setting up capacity in Europe and North America for the next three years. Annual demand in each market is 2 million kilograms (kg) and is likely to stay at that level. The two choices under consideration are building 4 million units of capacity in North America or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million. The variable cost of production in North America (for either a large or a small plant) is currently $10/kg, whereas the cost in Europe is 9 euro/kg. The cur-rent exchange rate is 1 euro for U.S. $1.33. Over each of the next three years, the dollar is expected to strengthen by 10 percent, with a probability of 0.5, or weaken by 5 per-cent, with a probability of 0.5. Assume a discount factor of 10 percent. What should the chemical manufacturer do? At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?
Answer:
Explanation:
The two choices under consideration are building 4 million units of capacity in North America
YEAR 1 2 3
Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00
Variable cost @ 10 40,000,000.00 40,000,000.00 40,000,000.00
Divide by:
Conversion Factor 1.33 1.33 1.33
Multiply by:
Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3
NET CASHFLOWS 30,827,068.00 31,597,744.00 32,387,688.00
DCF @ 10% 0.909090909 0.83 0.75
Present Values 28,024,607.27 26,113,838.02 24,333,349.36
NET TOTAL COST 78,471,794.65
or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million.
YEAR 0 1 2 3
Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00
Variable cost @ [(10+9)/2] 38,000,000.00 38,000,000.00 38,000,000.00
Additional cost 2,000,000.00
Conversion Factor 1.33 1.33 1.33 1.33
Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3
CASHFLOWS 1,503,759.40 29,285,714.29 30,017,857.00 30,768,304.00
DCF @ 10% 1 0.909090909 0.826446281 0.751314801
Present Value 1,503,759.40 26,623,376.62 24,808,146.28 23,116,682.19
NET TOTAL COST = 76,051,964.50
DECISION: The manufacturer should build 2 plants in 2 different locations because it gives a lower net present cost
At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?
The difference in both options came from the fact that variable cost is lower in Europe and building the plant is more expensive. If there is no increase in cost and variable cost is same everywhere, then both options will be same.
The decision for the chemical manufacturer's capacity setup requires analyzing long-run costs, economies of scale, and variable costs against the backdrop of possible currency exchange fluctuations, to determine which option yields the best financial outcome over three years.
The chemical manufacturer is considering two options for capacity setup: building 4 million kg capacity in North America only or splitting the capacity with 2 million kg in each location of North America and Europe. To tackle this, it is essential to evaluate the long-run costs and economies of scale to determine the most cost-efficient option. Given the difference in variable costs between North America and Europe (after converting euros to USD), and the potential changes in exchange rates, a detailed financial analysis should consider the expected net present value (NPV) of both setups using the provided discount factor and exchange rate forecasts.
Furthermore, since the chemical firm is a constant cost industry and production costs are consistent regardless of quantity, the decision primarily revolves around considering the one-time additional cost, differences in variable costs, and the implications of exchange rate fluctuations. An indifference analysis should find the initial cost differential that makes the NPVs of both options equal, by integrating the additional fixed cost and variable costs over the three-year period using the provided probabilities and the discount rate.
year 2012. On February 2, 2012, the company issued an additional 30 million shares to the market at a price of $50, while the market price per share was $50. "The resulting price per share after new issuance will be":
Price per share after new issuance will be $50
Explanation:
Given data:
The number of shares that are additionally issued by the company= 30 million, price at which the shares are issued by the company = $50, market price of shares = $50
Resulting price per share after the issuance will be:
[tex]$=(158 \text { million } * \$ 50+30 \text { million } * \$ 50) /(158 \text { million }+30 \text { million })$[/tex]
After solving the above equation, we get,
= $50
Therefore, the resulting price per share after the new issuance will be $50
On March 2, Kingbird, Inc. sold $954,000 of merchandise on account to Ayayai Company, terms 4/10, n/30. The cost of the merchandise sold was $590,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Following Journal Entries are recorded for Kingbird, Inc
Explanation:
March 02
Debit: Account Receivable = $954,000
Credit: Sale = $954,000
(Credit Sale is Recorded)
Debit: Cost of Good Sold = $590,000
Credit: Inventory = $590,000
(To Record Cost of merchandise Sold)
Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $ 15,000 $ 15,000 Land* 120,000 440,000 Totals $ 135,000 $ 455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) b. What is Kevan’s tax basis in his LLC interest?
Answer:
$55,000
Explanation:
Kevan tax basis is calculated as:
$120,000 + $15,000 + $90,000 + $40,000 - $210,00
Kevin tax basis = $55,000
Using the following illustration
Kevan contributed $120,000 to land
Jerry and Dave both contributed $0
Kevan contributed 15,000 in cash
Jerry and Dave both contributed $245,000 in cash
Kevan Nonrecourse mortgage in excess of the contributed amount to land is $90,000.
Jerry and Dave: $0
This is so because all nonrecourse debt greater than the amount is allocated to Kevan only.
Kevan, Jerry and Dave Remaining Nonrecourse mortgage is $40,000
This is calculated by 33.3% of ($210,000 - $90,000)
Kevan Relief from mortgage debt is $210,000
Jerry and Dave Relief from mortgage debt is $0
Kevan's tax basis in his LLC interest will be $205,000, which is the sum of his cash contribution, the adjusted basis of the land contributed, and his share of the nonrecourse debt.
Explanation:Under IRS regulations, Kevan's tax basis in his LLC interest will be calculated according to his contribution plus any liabilities he is assuming. Kevan contributed cash and land, which carry different tax implications.
For the cash contribution, Kevan's tax basis is simply the amount of cash contributed which is $15,000. For the land contribution, the tax basis is the amount of adjusted basis (the original cost plus improvements minus depreciation) at the time of contribution plus his share of the nonrecourse debt. The adjusted basis of the land is given as $120,000 and his share of the nonrecourse debt (since each member received 33.33 percent) would be $70,000 (1/3 of $210,000).
Adding these components together, Kevan’s tax basis in the LLC is $15,000 (cash) + $120,000 (adjusted basis of the land) + $70,000 (his share of nonrecourse debt) = $205,000.
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Cory incurred and paid the following expenses in 2019: Tax return preparation fee $ 600 Moving expenses 2,000 Investment expenses 500 Expenses associated with rental property 1,500 Interest expense associated with loan to finance tax-exempt bonds 400 Calculate the amount that Cory can deduct (before any percentage limitations).
Answer:
$4,600
Explanation:
Given that,
Tax return preparation fee = $600
Moving expenses = $2,000
Investment expenses = $500
Expenses associated with rental property = $1,500
Interest expense associated with loan to finance tax-exempt bonds = $400
Total amount that Cory can deduct:
= Tax return preparation fee + Moving expenses + Investment Expenses + Expenses Associated with rental Property
= $600 + $2,000 + $500 + $1,500
= $4,600
You must pick one of two wagers, for an outcome based on flipping a fair coin. 1. You win $440 if it comes up heads and lose $110 if it comes up tails. 2. You win $770 if it comes up heads and lose $220 if it comes up tails. Find the expected outcome for each wager. Which wager is better in this sense?
Answer:
See Below
Explanation:
Expected value is the sum of the products of the probability and payoff of each.
Wager 1:
probability of heads and tails, both is 0.5
Win = 440
Loose = 110
So,
Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165
Wager 2:
Similar to wager 1
Win = 770
Loose = 220
So,
Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275
2nd wager is better, in this sense.
The expected outcome for wager 1 is $165, while for wager 2, it is $275. Therefore, wager 2 is better in terms of expected value.
To determine which wager is better, let's calculate the expected outcome for each wager.
Wager 1If you choose the first wager, you win $440 if it comes up heads and you lose $110 if it comes up tails.
Probability of heads (P(H)) = 0.5Probability of tails (P(T)) = 0.5Expected outcome for heads = $440 * 0.5 = $220Expected outcome for tails = -$110 * 0.5 = -$55Total expected outcome for wager 1 = $220 - $55 = $165Wager 2If you choose the second wager, you win $770 if it comes up heads and you lose $220 if it comes up tails.
Probability of heads (P(H)) = 0.5Probability of tails (P(T)) = 0.5Expected outcome for heads = $770 * 0.5 = $385Expected outcome for tails = -$220 * 0.5 = -$110Total expected outcome for wager 2 = $385 - $110 = $275Conclusion: The expected outcome for wager 2 is higher at $275 compared to $165 for wager 1. Therefore, in terms of expected value, wager 2 is the better choice.
Questions in Web surveys often use drop-down boxes as a manner of displaying the response choices for a question. This type of display method is particularly prone to ________.
Answer:
The response options are:
A. halo effects
B. leniency effects
C. primacy effects
D. recency effects
E. presumption effects
The correct answer is C. primacy effects
Explanation:
It is known as the primacy effect of the phenomenon that occurs in the reception of information, through which a person pays greater attention to the first data he receives in comparison to the following data. This effect can be associated with what is usually known as “first impression” (what we feel or think when we meet someone can be difficult to change over time). This would happen when, for example, when presenting a long list of words, people tend to remember the first ones better and value them more.
It is considered that this primacy effect, also called media priming, can result in any image of a story having the capacity to generate in the public the stimulation of what its thoughts are. Thus, it is considered that the image of someone subtracting any object without suffering any kind of consequence can lead to part of the receivers undertake the same action.
Some researchers attribute this effect to a longer trial time of those elements presented previously, which affects a better memorial performance. This also happens when we learn to decide based on past experiences. It seems that the first rewards we have received condition our future decisions to a greater extent than other rewards we have obtained later. This phenomenon is known as the "primacy of the result" and highlights how the first results we get when we perform certain acts, condition us to re-commit the act to a greater or lesser extent.
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $6,100. On September 9, the customer unexpectedly pays the $6,100 balance. Record the cash collection on September 9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Record the cash collection on September 9
Bank $6,100 (debit)
Bad Debt $6,100 (credit)
Explanation:
When Barnes writes off a customer account on May 7
Bad Debts $6,100 (debit)
Account Receivable $6,100 (credit)
When the customer unexpectedly pays the $6,100 balance on September 9
Bank $6,100 (debit)
Bad Debt $6,100 (credit)
Recognise the Assets of Cash Flowing in the entity and De-recognise the Bad Debts expense account.
As technology grows, so does its uses. Companies are finding ways to let their employees manage various parts of their job without needing a full-time employee. One way this is done is with web-based self-service applications. Discuss new ways for employees to use Web-based self-service applications in their companies that will help save time and money. Describe not only the applications and how they work, but how they can save the company money and time. Be sure to include disadvantages to the process from the point of view of the employee.
Web-based self-service applications are types of applications that allow employees to access certain tasks of a company online, without having to interact with a representative of this company. Most of these websites offer support and immediate access to information.
This saves time and money, because the representative who would normally have to facilitate this work is no longer necessary. Moreover, because this is found online, it is likely that these applications can be accessed 24/7, which means that they also save time.
However, there are some disadvantages for employees too. For example, employees usually need to provide a lot of personal information in order to gain access to such application. Moreover, if they are confused about a particular aspect of it, it can be difficult to get personal help or support.
Alex, Brad, and Carl are partners. The profit sharing rule between them is 3:2:3 in alphabetical order. The partnership incurs a net loss of $ 110 comma 000. The journal entry to close Income Summary will include a _______. (Do not round any intermediate calculations.)
Answer:
Alex, Capital account will have a debit balance of $41,250
Explanation:
Partnerships are formed between individuals that come together and pool their resources together to achieve a common goal. They agree to share profits and losses of a business enterprise.
In this case profit sharing is done in a 3:2:3 order.
So for Alex his share of the $110,000 loss will be
Alex's share= (3/3+2+3)*110,000
Alex's share= (3/8)*110,000
Alex's share= $41,250
So this amount will be submitted from Alex's capital account
Final answer:
Alex, Brad, and Carl's capital accounts will be debited for their share of the partnership's $110,000 loss based on the profit-sharing ratio of 3:2:3. The journal entry will include a debit to Income Summary for the full loss and credits to each partner's capital account for their calculated share.
Explanation:
When a partnership incurs a net loss, such as the $110,000 loss described, each partner's capital account must be debited with their share of the loss according to the agreed-upon profit-sharing ratio. In the case of Alex, Brad, and Carl, the profit-sharing ratio is 3:2:3, respectively. To calculate each partner's share of the loss, you would allocate the total loss proportionally.
For Alex and Carl (3/8 of the loss each):
(3/8 of $110,000) = $41,250
For Brad (2/8 of the loss):
(2/8 of $110,000) = $27,500
The journal entry to close Income Summary will include a debit to the Income Summary account for the full amount of the loss, $110,000, and credits to Alex's, Brad's, and Carl's capital accounts for their respective shares of the loss. Thus, the journal entry will look like this:
Debit Income Summary $110,000Credit Alex's Capital $41,250Credit Brad's Capital $27,500Credit Carl's Capital $41,250
The Lancaster State Bank is thinking about purchasing a corporate bond that pays a coupon of 8.5%. The bank has a marginal tax rate of 25%. What is the after-tax yield on this bond?
Answer: 6.375%
Explanation:
The Lancaster State Bank is thinking about purchasing a corporate bond that has a yield of 8.5%. This bank has a marginal tax rate of 25%.
The after-tax yield on this bond would be 6.375%
Answer:
The after tax yield is 6.375%
Explanation:
The after tax yield is the amount of coupon rate after the tax deduction which will be calculated by this formula:
ATY= i(1- tax Rate)
ATY is the after tax yield
i is the coupon interest rate which is 8.5%
tax rate is the marginal tax which will be adjusted on the rate given to give us the after tax yield so we substitute on the above formula:
ATY = 8.5%(1 - 25%) then we compute on calculator
ATY= 6.375% which is the after tax yield of this bond.
thereafter you get the percentage yield which is the yield of a coupon adjusted for tax.
Bill consumes two goods: iced tea and spaghetti. The price of iced tea is $2 per bottle, and the price of spaghetti is $8 per serving. His income is $1,000 per month. He spends all of his income each month. He purchases 200 bottles of iced tea. How many servings of spaghetti does he purchase
Answer;
No of spaghetti he purchase [tex]y=100[/tex]
Explanation:
Given,
Price of iced tea is[tex]=\$ 2[/tex] per bottle
Price of spaghetti is [tex]=\$ 8[/tex] per serving
Let no iced tea is [tex]=x[/tex]
Let no of spaghetti =[tex]=y[/tex]
[tex]x+y=200[/tex]
multiply by 2
[tex]2x+2y=400[/tex] (i)
[tex]2x+8y=1000[/tex] (ii)
(ii)-(i)
[tex]2x+8y-2x-2y=1000-400[/tex]
[tex]6y=600[/tex]
[tex]y=100[/tex]
[tex]x+y=200[/tex]
[tex]x=200-100[/tex]
[tex]x=100[/tex]
No of spaghetti is 100
No of iced tea is 100
Final answer:
Bill spends $400 on 200 bottles of iced tea and uses the remaining $600 from his monthly income to buy 75 servings of spaghetti at $8 per serving.
Explanation:
Bill is facing a typical consumer's budget problem, where he must allocate his income between two goods: iced tea and spaghetti. If Bill spends his entire monthly income of $1,000, we need to calculate how much he spends on iced tea and how many servings of spaghetti he can purchase with the remaining money.
First, let's calculate the amount Bill spends on iced tea. Since he buys 200 bottles of iced tea at $2 per bottle, the calculation is:
200 bottles × $2 per bottle = $400Bill spends $400 on iced tea, so the remaining budget for spaghetti is $1000 - $400 = $600. Since spaghetti costs $8 per serving, we can find out the number of servings by dividing the remaining budget by the price per serving:
$600 ÷ $8 per serving = 75 servingsWhich of the following methods seeks to effect positive change in processes and organizations by using a set of practical tools to address business issues and process problems? Select one: a. BPR (Business Process Reengineering) b. TOM (Total Quality Management) c. Rummler-Brache d. Six Sigma Methodologies e. Lean han one of the f. This statement can above.
Answer: D. Six Sigma Methodologies
Explanation:
Six sigma methodologies are a set of tools and techniques used to effect continuous improvements of a process,this improvements is aimed at reducing wastages or variations.
Six sigma uses tools such as DMAIC(DEFINE, MEASURE,ANALYSE ,IMPLEMENT,CONTROL) etc guide the process improvement process.
There are several other tools and techniques used they include FISHBONE DIAGRAM, MEASUREMENT SYSTEM ANALYSIS(MSA), 5S etc all these are implemented in different stages of the process.
Six Sigma Methodologies option d. is the method that effects positive change in processes and organizations by utilizing practical tools for business improvements and reducing process variations, as developed by Bill Smith of Motorola.
The method that seeks to effect positive change in processes and organizations by using a set of practical tools to address business issues and process problems is Six Sigma Methodologies.
Developed in the 1990s by Bill Smith of Motorola Corporation, Six Sigma is an approach designed to improve profitability by reducing process and product variation.
It involves a rigorous process improvement methodology that includes the Define, Measure, Analyze, Improve, Control (DMAIC) procedure and encourages the use of statistical methods to validate improvements. Motorola itself attributed significant savings to the implementation of this system.
Six Sigma practitioners utilize various tools, including the development of process maps, Plan, Do, Check, Act (PDCA) cycle for smaller projects, and holding expertise in Six Sigma projects.
These tools and the focused methodology aim to reduce variation and inefficiency in business processes, leading to higher-quality products and services.