To maximize total revenue for a charity circus, Rosalie should charge approximately $8.17 per ticket. This was determined by calculating the demand function's slope from given data points and solving for the price that results in zero derivative of the revenue function.
Explanation:To determine how much to charge per ticket to make the most money for Rosalie's charity circus, we need to find the price that maximizes total revenue. This can be approached by understanding the concept of a downward-sloping demand curve and the relationship between ticket price and number of attendees. Given two price points – 5 dollars with 1065 attendees and 7 dollars with 805 attendees – we can find the slope of the demand function and then determine the revenue-maximizing point. Total revenue is calculated by multiplying the price per ticket by the number of tickets sold.
Calculating the slope, m, of the linear demand function we get:
m = (Change in number of attendees) / (Change in ticket price) = (1065 - 805) / (5 - 7) = 260 / -2 = -130.
This means that for every dollar the price increases, 130 fewer tickets are sold. To represent the demand function, we can use the point-slope form:
y - y₁ = m(x - x₁), where y is the number of attendees, x is the price, y₁ is one number of attendees we know, and x₁ is the price we know. Plugging in the values we get:
Number of attendees = 1065 + (-130)(Price - 5).
Now we calculate revenue (R) by multiplying the price by the number of attendees for that price:
R = Price × Number of attendees = Price × [1065 - 130(Price - 5)].
To maximize revenue, we differentiate R with respect to Price and set the derivative equal to zero, then solve for Price:
R' = 1065 - 260 × Price + 130 × 5,
R' = 0 when Price = $8.17 (rounded to the nearest cent).
Therefore, to maximize total revenue, Rosalie should charge approximately $8.17 per ticket.
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 5,100 Salaries expense 2,050 Accounts payable 3,100 Retained earnings 4,050 Utilities expense 1,200 Supplies 13,500 Service revenue 9,000 Common stock 5,700 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Net income = $5,750
Explanation:
The question is to compute the income statement based on given information
COWBOY LAW FIRM'S INCOME STATEMENT for DECEMBER ENDING
Description Amount ($) Amount ($)
Service Revenue 9,000
Deduct the total expenses as follows:
Salaries 2,050
Utilities 1,200
Total Expenses (3,250)
Net Income 5,750
Note: that the remaining figures, cash, accounts payable, retained earnings and the common stock are relevant for the preparation of the Balance sheet or the Statement of Financial position. The balance sheet is grouped into asset- cash, liabilities - accounts payable and equity - stock and retained earning.
Final answer:
To prepare the income statement for Cowboy Law Firm, one must list the Service Revenue of $9,000 and subtract the sum of Salaries Expense and Utilities Expense totaling $3,250 to arrive at a Net Income of $5,750.
Explanation:
To prepare an income statement using the provided account balances for Cowboy Law Firm, we consider only those accounts that reflect the firm's revenues and expenses within the period. The income statement will show the firm's profitability by subtracting total expenses from the total revenues.
Here’s how you can calculate it:
Service Revenue: $9,000
Total Expenses: Salaries expense ($2,050) + Utilities expense ($1,200) = $3,250
Next, we calculate the net income:
Net Income:
= Service Revenue - Total Expenses
$9,000 - $3,250
= $5,750
The Net Income is the figure that will be reported on the bottom line of the income statement for Cowboy Law Firm. In this simple income statement, we ignore other accounts such as Cash, Accounts Payable, Retained Earnings, Common Stock, and Supplies as they are not relevant to computing the firm's profitability for the period.
Why has the HRM function increased in stature and influence in many organization and How has increased globalization influenced the way HRM is practiced in the United States?
Explanation:
Globalization at the organizational level can be understood as the integration of all systems that make up a company, including the macro environment.
Understanding the concept of globalization in business makes it possible to understand that the company to be successful in a foreign market must align its strategy in order to conquer the local market, it is important to carry out research and development to understand what the target audience of certain region wants to consume, in addition to respecting the culture, behavior and values of each region.
Currently, in globalized companies, the focus of HRM is to ensure that the company receives new employees and that existing employees have a global posture that prioritizes respect, ethics, company identity, culture and is flexible and open to work in a company that adopts global management, where there are important interactions with other countries for the success of the business.
The HRM function has increased in stature and influence in organizations due to factors such as the shift to service industries, globalization, and reduced desire for unions. Increased globalization has influenced HRM practices in the United States by requiring strategies to attract and retain talent internationally and accommodate diverse workforces.
Explanation:The HRM function has increased in stature and influence in many organizations due to several factors. First, with the shift from manufacturing to service industries, human resources have become more vital to ensuring efficient and effective operations. Additionally, globalization and increased competition from foreign producers have made it necessary for organizations to have knowledgeable and skilled HR professionals who can navigate the complexities of managing a global workforce. Lastly, workplace protection laws and a reduced desire for unions have placed more responsibility on HRM to ensure compliance and employee satisfaction.
Increased globalization has influenced the way HRM is practiced in the United States. With multinational corporations expanding their operations globally, HRM departments have had to develop strategies to attract and retain talent in a highly competitive international labor market. They also have to consider cultural differences and develop HR policies and practices that accommodate diverse workforces. Additionally, HRM professionals need to stay updated on international labor laws and regulations to ensure compliance when operating in different countries.
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First Among Best Solar Inc. announces thatthey will take back free of cost, all of their solar panels that are no longer useful. Till now, the cost of disposal was significant. This action reduces___________.
Answer:
Total Cost of ownership
Post ownership cost
Explanation:
Total cost of Ownership is the the sum of all the amount spent on an item,which includes the cost of purchase,servicing,repair, disposal etc. It is a management tool adopted by marketers and financial analyst to help determine the total costs associated with an item.
Post ownership cost is the total amount involved in disposal of an item,it also include the salvage costs of the item and more recently some other cost like environment costs, liability cost etc.
When the company takes back the panel it will reduce both of Total cost of ownership and Post ownership cost.
Final answer:
First Among Best Solar Inc.'s new policy of taking back old solar panels for free reduces the lifetime cost and lowers economic barriers for customers, potentially making solar energy adoption more appealing due to reduced total cost of ownership.
Explanation:
First Among Best Solar Inc. has announced a significant policy change by offering to take back their solar panels at no extra cost once they are no longer useful. This action reduces the overall lifetime cost of solar panel ownership for their customers. Previously, the disposal of solar panels could involve a significant cost, potentially adding financial burden on the solar panel owners at the end of the panel's life cycle.
One of the challenges in the adoption of solar energy is the high upfront cost associated with purchasing and installing solar panels. While the cost of solar energy has become more competitive over the years, especially when considering that the fuel cost is zero, these upfront costs still present a significant barrier for many potential customers. First Among Best Solar Inc.'s policy to take back solar panels free of charge effectively reduces the total cost of ownership, making the option to invest in solar energy more accessible and financially attractive.
In addition to lowering the economic barrier, the company's initiative can be seen as an environmental commitment. The manufacturing and disposal of photovoltaic (PV) cells involve handling hazardous materials and waste. By offering to take back the panels, the company is potentially reducing the environmental impact, ensuring proper disposal or recycling of these materials. This also aligns with the environmental benefits of solar power, which are generally low-impact, especially when compared with fossil fuels, despite the challenges such as intermittency and the need for maintenance and periodic battery replacement.
At the end of the month, Grant Entertainment Company showed a $9,300 book balance in its cash account. The following information was gathered by studying the bank statement and the company's cash records: (1) deposits in transit amounted to $3,150 (2) outstanding checks were $6,200 (3) a $550 check had been incorrectly drawn on Grant's account by the bank (4) NSF checks returned by the bank were $750 (5) bank service charge was $29 (6) credit memo for $75 for the collection of one of the company's account receivable Based on the above information the true cash balance would be
Answer:
$9,146
Explanation:
The question states that the true cash balance should be calculated based on the information given
In order to do this, a bank reconciliation statement will be computed as follows:
December 31
Particulars Amount ($) Amount ($)
Cash balance (based company books) 9,300
Add the following:
Incorrectly drawn check 550
Company's credit memo on account receivable 75
Subtract the following:
NSF check 750
Bank Charges 29
Adjusted Cash Balance as per books 9,146
The true cash balance after all the necessary additions and subtractions based on omissions from the bank statement is $9,146
Carl has been working as a sales executive with All Fame Cosmetics Inc. for more than a year. His work has been appreciated by his seniors and he regularly meets his sales targets. However, he has not received any incentive or commission that was promised to him by his employer during his pre-employment interview. If Carl decides to file a case against All Fame Cosmetics, he has_____________.
Answer:
The questions is lacking options, here are the options
A) a cause of action under whistle-blower protection.) a cause of action for breach of implied contract.C) no recourse because he is an at-will employee.D) no recourse because the incentives
The answer is option (b) a course of action for breach of implied contract
Explanation:
The action carried out by All fame cosmetics inc. shows a breach of contract entered with Carl to pay him an agreed incentives for the performance of a specified job. Having been able to carry out the activities and All fame Cosmetics inc. have failed to pay him, he can sure them for breach agreement.
Answer: B. A cause of action for breach of Implied contract.
Explanation:A contract is an agreement between two people or organization,a contract is expected to be obeyed by all the parties of the agreement.
An Implied contract is a contract between two people or organizations which arises from the actions, Conduct or activities of any or both parties. It is legally binding and can be tendered in the Court of Law. Carl can sue the company for breach of Implied contract.
Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount of accrued salaries is $3,100. The closing entry (after adjustments) would be:
Answer:
income summary 143,100 debit
salaries expense 143,100 credit
Explanation:
The company will do an adjusting entry to reocrd the expense for the accrued but not payed salaries of the year:
salaries expense 3,100 debit
salaries payables 3,100 credit
Thus, the total slaries expense for the year would be:
140,000 + 3,100 = 143,100
To close we will leave the expenses balance at zero thus, we will credit this amount against an auxiliary account called income summary.
Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business. True or False
Answer: True
Explanation:
Strategic sourcing is defined as the planning process used in supply chain management of business through which supply channel is created for organization to source-search and purchase supplies at low cost from market.This plan helps in establishing beneficial relationship between buyer and supplier.
It can fulfill the requirement of supplies needed by organizational channels .it helps in success of organization along with benefits that cannot be achieved from just purchasing mechanism .
Thus, the statement given is true.
Pablo Management has four part-time employees, each of whom earns $235 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the four employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day. (January 1) was an unpaid holiday.
a. Prepare the year-end adjusting entry for wages expenses.
b. Prepare the journal entry to record payment of the employees' wages on Friday, January 4.
Answer:
1) $940 will be debited to wages account credited to wages payable account
2) $2,820 will be debited to wage expense; $940 to wages payable and $3,760 credited to cash account.
Explanation:
Question 1: To prepare the year end adjusting entry for the wages expenses assuming that December 31 was a Monday.
Date Particulars Debit Credit
Dec, 31 Wages Account $940
Wages Payable A/c $940
Being the record of wages accrued for one day.
Note: The $940 is the $235 x 4
Question 2) Prepare the journal entry to record payment of the employees' wages on Friday, January 4.
Step 1) The wages expense would be the wages of the four workers for the will be calculated as follows
The wage expense for the three days in the new year = 4 workers x 3 days x $235= $2,820
The Cash account= 4 workers x 4 days x $235= $3,760
Date Particulars Debit Credit
Jan, 14 Wages Expense $2,820
Wages Payable A/c $940
Cash Account $3,760
Being the record of accrued wages (from step 1) and current wages paid.
a. To prepare the year-end adjusting entry for wages expenses, we need to account for the three days worked in January that will be paid in the following year. We will debit (increase) the Wages Expense account and credit (increase) the Accrued Wages Payable account. b. To record the payment of the employees' wages on Friday, January 4, we need to account for the wages earned in December. We will debit (decrease) the Accrued Wages Payable account and credit (decrease) the Cash account to record the payment.
Explanation:a. To prepare the year-end adjusting entry for wages expenses, we need to account for the three days worked in January that will be paid in the following year. Since the four employees earn $235 per day, the total wages for those three days would be $235 x 3 = $705. We will debit (increase) the Wages Expense account for $705 and credit (increase) the Accrued Wages Payable account for $705.
b. To record the payment of the employees' wages on Friday, January 4, we need to account for the wages earned in December. The employees worked from Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day was an unpaid holiday, so the total wages for those four days would be $235 x 4 = $940. We will debit (decrease) the Accrued Wages Payable account for $940 and credit (decrease) the Cash account for $940 to record the payment.
In 2019, Brazil's trade deficit as share of GDP widened. In that year, government deficit as share of GDP declined and investment as share of GDP remained constant. What must have happened to private savings as share of GDP?
Answer:
The private savings as a share of the GDP must have declined.
Explanation:
according to the twin deficit hypothesis:
budget deficit = savings + trade deficit - investments
the government deficit as a share of GDP declined and investment as a share of GDP remained constant that means that the savings should decline.
The term "market" in economics refers to A. a legal institution where exchange can take place. B. a place where money changes hands. C. an organization which sells goods and services. D. a group of buyers and sellers of a product and the arrangement by which they come together to trade.
Answer:
D. a group of buyers and sellers of a product and the arrangement by which they come together to trade.
Explanation:
The market is the place at which the buying and selling of goods and services are taken place. It could come via direct contact, indirect contact through agents or brokers.
It is a trading of goods and services where the seller can able to sell the products and the buyer can buy the products that satisfy its needs and wants so that he or she could get the maximum satisfaction after consuming the product
Nelson is properly classified as an independent contractor for FunTime Toys. While driving to a meeting at FunTime's headquarters, Nelson caused a car accident in which a cab driver was hurt. Upon investigation, it was found that Nelson was on the phone with one of the managers at FunTime when he was driving that day. Which of the following may be true in the context of liability for the accident? A. FunTime has no liability, because Nelson is not a full-time employee. B. FunTime has vicarious liability. C. FunTime has no liability, but only if Nelson is a member of a protected class. D. FunTime has strict liability.
FunTime Toys may have vicarious liability for the accident caused by Nelson if he was performing tasks within the scope of his work, such as being on a work-related call, at the time of the accident.
In the context of liability for the car accident caused by Nelson, it is important to determine the extent to which FunTime Toys may be responsible. Despite Nelson being classified as an independent contractor, certain circumstances could lead to FunTime having vicarious liability. According to the principle of vicarious liability, if Nelson was performing a task within the scope of his work for FunTime (such as being on a work-related call), then FunTime may be held liable for his actions during that time. The fact that Nelson is not a full-time employee does not automatically absolve FunTime of liability, nor does Nelson's membership in a protected class have any bearing on this issue. Strict liability would typically not apply in this case because it is generally associated with scenarios where someone is held liable without fault, such as with inherently dangerous activities or product liability.
Therefore, option B suggesting that FunTime might have vicarious liability could be true, if it is determined that Nelson's actions were within the scope of his work for FunTime when the accident occurred.
What are the most relevant cultural values affecting the consumption of each of the following? Describe how and why these values are particularly important. a. Internet b. Video games/consoles c. Milk d. Fast food e. Luxury cars f. Cell phones
Answer:
a. Internet - Connectivity and globalization are the values behind the consumption of Internet. The omnipresence of instant communication and responsiveness are the main reason why Internet is so ubiquitous nowadays. Everyone has cognitive and informative needs that need to be satisfied by using the Internet.
b. Video games/consoles - A sense of belonging to a special community and peer influence are values which mostly influence the consumption video games. Young people (the main users of these products) are under the pressure to be involved in online video game communities. Also, there is the presence of immersion in a different, virtual world.
c. Milk - Being and essential FMCG good, milk consumption is stimulated by traditional values, as most of us associate milk with something that has been a staple in the fridge since childhood. Also, the well-being value is what drives milk consumption, as it boasts several health benefits which most of us are aware of.
d. Fast food - Convenience is something that mostly stimulates the consumption of fast food. All of us know it is not healthy, however, we opt for this option when we run out of time to have a proper meal. Also, we may be triggered by the choices of our peers and family, which brings in the society cultural element.
e. Luxury cars - The value of prestige and cultural status is what makes us buy luxury cars and several other luxury items. Although it provides the same essential value as a usual car (in the sense of the need for transportation), a luxury car is a status symbol which signifies our wealth.
f. Cell phones - The feeling for connectivity, integration with the society and other cultural values similar to the ones which drive Internet consumption are present as the motivators for cell phone consumption too. Everyone has one, and even if we do not feel the actual need to possess one (which is rare, since they are very addictive), we are tempted by their omnipresence in our environment.
Two countries can each produce clothing and computers.
If the two countries decide to specialize and exchange then all consumers, workers, and firms will benefit and experience gains from trade.
True or False?
Answer:
True
Explanation:
International trade refers to buying and selling of goods by a country beyond it's domestic geographical boundaries.
When a country decides to produce those goods in which it specializes and decides to exchange in trade for other goods, it stands to gain from such trade.
A country should focus on production of those goods in which it holds a comparative advantage. For example, if Ghana specializes in cocoa production and Brazil specializes in wheat production, both can benefit if each decides to produce as per it's comparative advantage and trade the rest.
The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight's beginning inventory for 2015 is 18 comma 000 trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced
Answer:
units required to be produced 217,000
Explanation:
expected sales for the period 208,000
desired ending inventory 27,000
total units required 235,000
beginning units ( 18,000 )
units required to be produced 217,000
The company needs units to fullfil teir sales bdget and desired ending invenoty.
the beginning inventory already complete a portion of the requirement so is the difference what determinates the required units to be produced.
Final answer:
To calculate the number of serving trays McKnight Company needs to produce in 2015, you add the budgeted unit sales to the target ending inventory and subtract the beginning inventory, which totals 217,000 units.
Explanation:
To compute the number of trays the McKnight Company budgeted for production in 2015, we use the following formula:
Budgeted unit sales + Target ending inventory - Beginning inventory = Units of finished goods to be produced.Applying this formula:
208,000 (Budgeted unit sales)+ 27,000 (Target ending inventory)- 18,000 (Beginning inventory)= 217,000 units of finished goods to be produced in 2015.McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin. This is an example of Select one:
a. analyzing support activities.
b. identifying the cost drivers for each activity.
c. analyzing primary activities.
d. analyzing competitors’ pricing.
e. assessing willingness to pay.
Answer:
The correct answer is letter "D": analyzing competitors’ pricing.
Explanation:
Companies tend to analyze their competitors' pricing to review what are other firms of the same industry doing to obtain revenue. This study usually involves verifying competitors' raw material, labor, and manufacturing pricing. The best practices can be adapted to the analyzing company so revenue can be maximized.
Hope receives an $18,500 scholarship from State University. The university specifies books, supplies, and equipment, while $10,000 is for room and board. In addition, Hope w campus library and earns $5,000. What is Hope's gross income?
Answer:
Hope's gross income = $5000 + $10,000 = $15,000
Explanation:
First, we need to highlight what are qualified education expenses especially for tax-free fellowships and scholarships.
Specifically, the qualified expenses that will be tax exempt will be
The tuition and fees which are requirements to go to an eligible school or institution
Other course related expenses required for courses in such institutions such as books equipment and supplies are also tax exempt.
However, room and board, research travel and other expenses that are not required for courses in the institution are not tax free
Based on this analysis:
Hope's initial earning on campus = $5000
However, $10,000 spent on room and board are not required for enrolment in the school, hence, it will be added to the earnings to make the gross income
Hope's gross income = $5000 + $10,000 = $15,000
Final answer:
Hope's gross income is calculated by adding the taxable portion of her scholarship assigned for room and board ($10,000) to her earnings from working at the campus library ($5,000), totaling $15,000.
Explanation:
Hope's gross income can be calculated by adding her earnings from work to the taxable portion of her scholarship. The scholarship funds allocated to room and board are typically considered taxable income by the IRS. Therefore, from her $18,500 scholarship, $10,000 for room and board is taxable. The remaining $8,500, specified for books, supplies, and equipment, is usually tax-free if it is a requirement for enrollment or attendance at the educational institution. Additionally, the money Hope earns from working at the campus library is considered earned income and is taxable. Thus, her gross income is the sum of her earnings from work ($5,000) and the taxable part of her scholarship ($10,000).
Total Gross Income = Taxable Scholarship Funds + Earnings from Work
Total Gross Income = $10,000 (for room and board) + $5,000 (from working) = $15,000
On January 1 of the current year, Lafferty signs a contract to rent a building for $1,000 per month for the next three years. On that date, Lafferty pays $36,000 for rent. On January 1 when payment is made, what is the amount of the prepaid rent that should be classified as a noncurrent asset
Answer:
$24,000
Explanation:
Given that
Rent of the building per month = $1,000
On that date, the rent value= $36,000
So, the amount of prepaid expenses would be recognized in two ways
As a current asset
= Rent of the building per month × total number of months in a year
= $1,000 × 12 months
= $12,000
As a non-current asset, it would be
= Total rent - prepaid rent
= $36,000 - $12,000
= $24,000
Write two paragraphs explaining each of the parties’ point of view - Lauren's as well as the CEO's. Explain your final decision on whether or not to go through with the sale as well as WHY this is your decision.
Final answer:
In this case, the final decision has already been made by Lauren to agree to the new terms proposed by Bart's. As the CEO, Jimmy Cricket should address the issue with Lauren and have a discussion about the importance of group decision-making. While it is understandable that Lauren wanted to save time and effort by making the decision on her own, it is crucial for the CEO to emphasize the value of collective decision-making in order to consider different perspectives, mitigate risks, and ensure that the company's best interests are protected. The CEO should emphasize the need for team collaboration and the importance of discussing potential risks, such as Bart's payment history, to make informed decisions that align with the company's goals and objectives.
Explanation:
--Lauren's point of view:
Lauren, as an employee, is likely to focus on the potential benefits and opportunities that the new ride can bring to the amusement park. She may see it as a way to attract new customers and increase ticket revenue. Lauren may also believe that the ride would enhance the overall experience of the park, leading to positive word-of-mouth and customer satisfaction. From her perspective, investing in the new ride could be a way to stay competitive in the market and keep the park exciting for visitors.
--The CEO's point of view:
The CEO, on the other hand, has the responsibility to make strategic decisions that will ensure the financial stability and success of the amusement park. The CEO may take a more cautious approach and consider the financial feasibility of the investment. They will carefully analyze the costs, such as the purchase cost of the ride, the annual operating costs, and the potential increase in revenue. The CEO will also factor in the useful life of the ride and the salvage value. They will weigh the potential benefits against the financial risks and assess whether the investment aligns with the long-term goals of the park.
--Final decision and reasoning:
Based on the information provided, it is difficult to make a definitive decision on whether or not to go through with the sale. Further analysis is needed to evaluate the potential additional ticket revenue that the ride would generate. Additionally, other factors, such as market trends, competition, and customer preferences, should be considered.
However, if we assume that the additional revenue generated by the ride is sufficient to cover the costs and provide a positive net present value (NPV), it could be a viable investment. A positive NPV indicates that the present value of the cash inflows exceeds the initial investment, making it an attractive opportunity.
A strategy is a(n):
a.set of opportunities in the marketplace.
b.broad statement of purpose.
c.simulation used to test various product line options.
d.plan for cost reduction.
e.action plan to achieve the mission.
Answer:
e.action plan to achieve the mission.
Explanation:
A strategy is an action plan to achieve the mission.
Answer:
The correct answer is e .action plan to achieve the mission.
Explanation:
The strategy answers the following question: how are we going to achieve what is proposed? Therefore, it is directly related to the group of actions that will be carried out in order to meet 100% of the goals previously established. The mission refers to the objective or purpose for which it works, which must be internalized by all collaborators in order to be very clear in what way they must go to achieve the organizational goals.
Retained Earnings represents the firm's cumulative earnings since inception, minus dividends and other adjustments. True False
Answer:
True
Explanation:
Retained earnings refer to profits generated by a business but have not been distributed to the shareholders. Business owners or shareholders are entitled to share in the company's profits. The company directors may decide not to distribute all the earnings to the shareholders.
Retained earning are recorded independently in the balance sheet as part of the shareholder's equity. The figure in the balance sheet shows the total amount of a company's retained earnings since inception. Retained earnings increase when a company makes profits and decreases when losses are reported. A company may reinvest the retained earnings in the business or use them for other purposes such as debts repayments.
Talbot Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2018 were:
Problem Set B Enlarge Image During 2018, the following transactions occurred: Talbot provided animal care services, all on credit, for $210,300. Talbot rented stables to customers for $20,500 cash. Talbot rented its grounds to individual riders, groups, and show organizations for $41,800 cash.
There remains $15,600 of accounts receivable to be collected at December 31, 2018.
Feed in the amount of $62,900 was purchased on credit and debited to the supplies account.
Straw was purchased for $7,400 cash and debited to the supplies account.
Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of $112,000.
The income tax payable at the beginning of 2018 was paid early in 2018. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One year's interest at 9% was paid on the notes payable on July 1, 2018. During 2018, Jon Talbot, a principal shareholder, purchased a horse for his wife, Jennifer, to ride. The horse cost $7,000, and Talbot used his personal credit to purchase it. Property taxes were paid on the land and buildings in the amount of $17,000. Dividends were declared and paid in the amount of $7,200. The following data are available for adjusting entries: Supplies (feed and straw) in the amount of $30,400 remained unused at year-end. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 were unrecorded and unpaid at year-end. Interest for six months at 9% per year on the note is unpaid and unrecorded at year-end. Income taxes of $16,500 were unpaid and unrecorded at year-end.
Answer:
See answers below in the explanation
Explanation:
Journal Entries :
Journals
Date Account and Explanation Debit Credit
a Accounts receivable 210300
Service Revenue 210300
(Record earned revenue)
Cash 62300
Service Revenue* 62300
(Record earned revenue)
b cash 199100
accounts receivable** 199100
(Record collection Account)
*$41000+$20500=$62300
**$4400+$210300-$$15600=$199100
c Supplies 62900
Accounts Payable 62900
(record purchase of supplies on credit)
d Supplies 7400
Cash 7400
(record purchase of supplies
e Wages Payable 14200
Cash 14200
Record Payment of previous wages
Wages Expenses 112000
Cash 112000
(Record Payment to Employees)
f Income Tax payable 15100
cash 15100
(Record Payment of Income taxes
g Accounts Payable 73000
cash 73000
(record payment of account)
h Interest Expense 2700
Interest Payable 2700
Cash*** 5400
(Record Payment of Interest)
i No journal entry required
j Property Taxes Expense 17000
cash 17000
(Record payment of property taxes)
k Dividends 7200
Cash 7200
(Record Payment of dividends)
*** $60000*9%=$5400
JKS, a nongovernmental not-for-profit art museum, has elected not to capitalize its permanent collections. In 2X11 a bronze statue was stolen. The statue was not recovered, and insurance proceeds of $35,000 were paid to JKS in 2X12. This transaction would be reported in: I. The statement of activities as permanently restricted revenues.; II. The statement of cash flows as cash flows from investing activities.a. Neither I nor II.
b. I only.
c. Both I and II.
d. II only.
Answer:
I. The statement of activities as permanently restricted revenues.;
Explanation:
Permanently restricted items are the objects under the owner of a trustee which are received with restriction by the donor . Restriction states that
the donation must be maintained permanently and which may be used for financial gain for the trust.
Bell Co. changed from a traditional manufacturing philosophy to a just-in-time philosophy. What are the expected effects of this change on Bell’s inventory turnover and inventory as a percentage of total assets reported on Bell’s balance sheet?
A. Decrease， Decrease
B. Decrease ，Increase
C. Increase， Decrease
D. Increase， Increase
Answer:
C. Increase， Decrease
Explanation:
Inventory turnover is increased because there are very low or almost nill Closing inventorya as we divide the cost of goods sold with a lower number. Inventory as a percentage to total asset will be decrease because there will be a lower value ofinventory in the balance sheet. Comparing it with total value of asset tells us the percentage of total asset.
What is the present value of $1,500 due in 14 years at a (a) 5 percent interest rate and (b) 10 percent rate. Explain why the present value is lower when the interest rate is higher.
Answer:
a. $757.60
b. $395.00
Explanation:
We have to applied the present value function which is shown in the attachment
a. Given that,
Future value = $1,000
Rate of interest = 5%
NPER = 14 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $757.60
b. Given that,
Future value = $1,000
Rate of interest = 10%
NPER = 14 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $395.00
It shows a inverse relationship between the present value and the interest rate. The higher the interest rate, the lower is the present value and the lower the interest rate, the higher is the present value.
Final answer:
The present value of $1,500 due in 14 years is approximately $757.58 at a 5% interest rate and approximately $395.03 at a 10% interest rate. The present value decreases as the interest rate increases due to the time value of money concept.
Explanation:
The question involves calculating the present value of $1,500 due in 14 years at different interest rates. To find the present value, we use the formula Present Value = Future Value / (1 + r)^n, where 'r' is the interest rate and 'n' is the number of years until the payment is made.
For a 5% interest rate (a), the calculation is $1,500 / (1 + 0.05)^14 = $1,500 / 1.9799 ≈ $757.58.
For a 10% interest rate (b), the calculation is $1,500 / (1 + 0.1)^14 = $1,500 / 3.7975 ≈ $395.03.
The present value is lower when the interest rate is higher because a dollar in the future is worth less than a dollar today when looking at a higher rate of return. This indicates the time value of money, where the value of money decreases over time when faced with the opportunity to earn interest.
Compare the two organizations you selected in terms of the public services they provide. How are they alike, and how are they different?
Answer:West Africa Examination council and Joint Admission Matriculation Board.
Explanation:
Looking at West Africa Examination Council:It is responsible for the proper conduct of examination in secondary schools level among West Africa countries. It specifically deals with anglophone countries in West Africa.
joint Admission Matriculation Board:This organisation is responsible for the proper conduct of examinations into tertiary institutions.
What makes them look alike is that they are both responsible for secondary school students education while their difference is waec deals with Five anglophone countries in West Africa while Jamb deals with only Nigeria and also responsible for only admission into tertiary schools.
The Red Cross and UNICEF provide public services improving life quality, though they focus on different areas. The Red Cross provides emergency services, disaster relief and education, while UNICEF's services are centered around children's rights, education, healthcare and emergency food supply.
Explanation:Assuming that the organizations being compared are non-profit organizations such as the Red Cross and UNICEF, I will provide a brief comparison. Both the Red Cross and UNICEF are geared towards providing public services aimed at improving the quality of life and health of individuals, especially those in crisis situations. They also work globally, which means they serve people in different parts of the world.
However, there are also differences in the public services they provide. The Red Cross provides emergency assistance, disaster relief, and disaster preparedness education, while UNICEF focuses more on children's rights, providing services like education, healthcare, and emergency food supplies to children in need.
Remember, this comparison may vary depending on the real organizations that are intended for comparison as the question doesn't specify the type or name of the organizations to be compared.
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How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred;
a. Paid $2,900 cash for accounts payable due.
b. Collected $1,300 of accounts receivable.
c. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.
d. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.
e. Declared and paid a $400 cash dividend.
f. Paid salaries $1,700, rent for September $900, and advertising expense $200.
g. Incurred utilities expense for month on account $170.
h. Received $10,000 from Capital Bank on a 6-month note payable.
Instructions
Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues – Expenses – Dividends.
Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
Answer:
1. See attached file for the tabular analysis
2. La Brava Veterinary Clinic
Income Statement
For the month Ended September 30
Revenue $7,300
Less: Operating expenses
Salaries expense 1,700
Rent expense 900
Advertising expense 200
Utilities expense 170
Total operating expense 2,970
Net Income $4,330
3. La Brava Veterinary Clinic
Statement of Retained Earnings
For the month Ended September 30
Beginning balance $700
Add: Net income 4,330
Less: Dividends 400
Ending balance $4,630
4. La Brava Veterinary Clinic
Balance Sheet
As of September 30
Asset
Current Assets
Cash $15,900
Accounts receivable 5,200
Office supplies 600
Total current assets 21,700
Non-current assets
Equipment 8,100
Total non-current assets 8,100
Total assets $29,800
Liabilities and Equity
Current liability
Accounts Payable $2,000
Accrued expenses 170
Total current liabilities 2,170
Non-current liability
Note Payable $10,000
Total non-current liabilities $10,000
Total liabilities $12,170
Equity
Capital stock $13,000
Retained earnings 4,630
Total equity $17,630
Total liabilities and Equity $29,800
Explanation:
1. Entries for the month of September
a. Debit Accounts payable $2,900
Credit Cash $2,900
b. Debit cash $1,300
Credit Accounts receivable $1,300
c. Debit Equipment $2,100
Credit Cash $800
Credit Notes payable $1,300
d. Debit Cash $2,500
Debit Accounts receivable $4,800
Credit Accounts receivable $7,300
e. Debit Dividends $400
Credit Cash $400
f. Debit Salaries expense $1,700
Debit Rent expense $900
Debit advertising expense $200
Credit Cash $2,800
g. Debit utilities expense $170
Credit accrued expense $170
h. Debit cash $10,000
Credit Notes payable $10,000
All of these transactions will be posted in the tabular analysis.
To analyze the September transactions and prepare the financial statements, we start with the August 31 balances and record each transaction in a tabular format. The income statement shows the revenues and expenses for September. The balance sheet on September 30 presents the financial position of the company.
Explanation:To analyze the September transactions and prepare the financial statements, we start with the August 31 balances and record each transaction in a tabular format. The columns represent the different components of the balance sheet equation. After recording all the transactions, we can prepare the income statement, retained earnings statement, and balance sheet for September.
The income statement shows the revenues and expenses for September, resulting in net income or net loss. The retained earnings statement shows the changes in the retained earnings account, including the net income/loss and dividends declared. The balance sheet on September 30 presents the financial position of the company at the end of the month, with assets, liabilities, and equity.
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Susan could consider exploring her rights and protections under _____________which is a federal labor law.
Susan could consider exploring her rights and protection under the Family and Medical Leave Act.
Explanation:
• The federal law governing the maternity leave policy in countries like USA is the Family and Medical Leave Act .
• This law states that a woman can take a leave from her job for up-to 12 weeks in case of pregnancy or adoption.
• In simple, words the women can return back to her job after 12 weeks and she is cannot be penalized by her employer for taking leave.
• This act is applicable to only those employees who have been working in the organisation for more than an year and the organization has employed more than 50 peoples
McCann Co. has identified an investment project with the following cash flows.
Year Cash Flow
1 $820
2 1,130
3 1,390
4 1,525
Required:
a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the present value at 16 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)c.What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Present value when discount rate is 10% = $3765.26
Present value when discount rate is 16% = $3,279.43
Present value when discount rate is 25% = $2,715.52
Explanation:
Present value can be calculated by discounting the cash flows at the discount rate.
Present value can be calculated using a financial calculator:
Cash flow for year 1 = $820
Cash flow for year 2 = $ 1,130
Cash flow for year 3 = $1,390
Cash flow for year 4 = $1,525
Present value when discount rate is 10% = $3765.26
Present value when discount rate is 16% = $3,279.43
Present value when discount rate is 25% = $2,715.52
I hope my answer helps you
The present value of cash flows can be calculated using the formula PV = CF / (1+r)^n, where PV is the present value, CF is the cash flow, r is the discount rate, and n is the year. Using this formula, the present value of the cash flows at a 10% discount rate is $3806.68.
Explanation:To calculate the present value of the cash flows, we need to use the formula for present value which is PV = CF / (1+r)^n, where PV is the present value, CF is the cash flow, r is the discount rate, and n is the year.
For the first year, the present value is $820 / (1+0.10)^1 = $745.45.For the second year, the present value is $1130 / (1+0.10)^2 = $929.75.For the third year, the present value is $1390 / (1+0.10)^3 = $1059.29.For the fourth year, the present value is $1525 / (1+0.10)^4 = $1072.19.
Therefore, the present value of the cash flows at a 10% discount rate is $745.45 + $929.75 + $1059.29 + $1072.19 = $3806.68.
Using the same formula, we can calculate the present value at a 16% discount rate and a 25% discount rate.
There are four closing entries: The first one is to close ___________________. The second one is to close __________________. The third one is to close __________________. The fourth one is to close ___________________.
Answer:
Revenues, expenses, income summary, dividend or withdraws account
Explanation:
The closing entries for the following accounts are presented below:
1. Service Revenue A/c Dr XXXXX
To Income Summary XXXXX
(Being revenue account closed)
2. Income summary A/c Dr XXXXX
To Expense A/c XXXXX
(Being expenses accounts are closed)
3. Income summary A/c Dr XXXXX
To Retained earning XXXXX
(Being the difference is credited to retained earning that reflected as a profit)
4. Retained earnings A/c Dr XXXXX
To Dividend A/c XXXXX
(Being dividend account is closed)
The four closing entries in accounting are used to close revenue accounts, expense accounts, income summary, and dividends account.
Explanation:The four closing entries in accounting are used to close temporary accounts at the end of an accounting period. The first closing entry is to close revenue accounts. Revenue accounts represent income earned by a company. The second closing entry is to close expense accounts. Expense accounts represent costs incurred by a company. The third closing entry is to close income summary. Income summary is a temporary account used to summarize the net income or net loss for the period. The fourth closing entry is to close the dividends account. Dividends account represents distributions of profits to shareholders.
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