Answer:
Explanation:
Sales revenue to be reported - $1,000,000
Warranty expense - $40,000
Unearned warranty revenue - $12,000
Cash = 1,000,000+12,000 = $1,012,000
Warranty liability - $40,000
On January 1, a shareholder purchased 81 shares of stock in Beta company for $115 per share. On August 20, the company paid an $8 dividend per share. On December 31, the shareholder sold all the shares for $113 per share. What is the overall Economic Rate of Return for this investment?
Answer:
Explanation:
Economic rate of return on the investment is as follows
Total Cash Received =
Dividend = 8
Share disposal = 113
Total 121
Total investment = 115
Net return on investment = 121-115 = 6
Net return on investment = 6/115*100 =5.217%
Answer:
5.22%
Explanation:
Dividend per share = $8
Loss on sales per share = Purchase price - Sales price - = $115 - $113 = -$2
Total return per share = Dividend per share - Loss on sales per share
= $8 -$2 = $6
Overall Economic Rate of Return = (Total return per share ÷ purchase price) × 100
Overall Economic Rate of Return = ($6 ÷ $115) × 100
= 5.217391304347830
= 5.22% approximately
Therefore, the overall Economic Rate of Return for this investment is 5.22%.
3) What are the main factors behind economic growth? Write a short essay. Be expansive. Take a broad view of this question. What institutional factors are important? What cultural factors are important? But be sure to include the traditional economic factors. What factors are most important?
Explanation:
It is a level of goods and services provided by the country in a specific periodCertain factors associated with the economic growth are1. Natural resources: Every country must protect their land forms so that the natural resources like oil or mineral can be obtained adequately and thus it can boost the economy of the country
2. Infrastructure: Creating an successful infrastructure make goods and services faster and thus increasing the economic growth.
3. Higher population: There are both advantages and disadvantages. We have high man power and on the other side there might be huge unemployment too.
Culture is closely associated with the branch of economy because it can turn the country upside down. Because, it is the culture which decides the like and unlike of a particular product.
Final answer:
The main factors behind economic growth include physical capital, human capital, technology, institutional factors, and cultural factors. These factors contribute to increasing production and income over time. While their importance may vary, investment in physical and human capital, technological advancements, and favorable institutional and cultural factors all play key roles in driving economic growth.
Explanation:
Economic Growth: Factors and Impacts
Economic growth refers to the increase in a country's production and income over time. There are several main factors that contribute to economic growth:
Physical capital: This refers to the stock of machinery, equipment, and infrastructure that is used in production. Developing countries often need to invest in physical capital to boost economic growth.Human capital: This includes the knowledge, skills, and health of the workforce. Education and training programs are important for building human capital and increasing productivity.Technology: Technological advancements drive economic growth by increasing efficiency and productivity. Innovation and research and development (R&D) are crucial in this regard.Institutional factors: Institutions such as the rule of law, property rights, and a stable political environment are important for fostering economic growth. They provide a framework for economic transactions and investment.Cultural factors: Cultural values and attitudes can also impact economic growth. For example, a culture that values entrepreneurship and innovation may be more conducive to economic growth.While all these factors are important, their relative importance may vary from country to country. For example, a country with abundant natural resources may prioritize physical capital investment, while a country with a highly educated workforce may focus more on technology and innovation.
Susan Zupan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Zupan's law firm prepares monthly financial statements, when should it recognize revenue from this engagement? The law firm should recognize the revenue in________
Zupan's law firm should recognize the revenue in April, as that is when the services were performed and, thus, the revenue was earned. This is in accordance with the accrual basis of accounting where revenue is recognized when it is earned, not when payment is received.
Explanation:The subject of this question pertains to revenue recognition, a fundamental concept in accounting. In accordance with the accrual basis of accounting, revenues are recognized when they are earned, regardless of when the payment is received. In this scenario, Susan Zupan's firm should recognize the revenue from the legal engagement in April because that is the month the work was completed and the services were rendered.
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Option b) April is the correct choice.
This question relates to the recognition of revenue in accordance with Generally Accepted Accounting Principles (GAAP). According to GAAP, revenue should be recognized when it is earned and realizable. In the case of Susan Zupan, who performed the legal work in April, the revenue should be recognized in April when the service was provided.
Option a) March – This is when the engagement was accepted, but no services were rendered.Option b) April – This is when the legal work was performed, making the revenue earned and realizable.Option c) May – This is when payment was received, but GAAP requires revenue recognition when earned, not when cash is received.Option d) June – This option is irrelevant as it does not pertain to when services were provided or payment was received.Therefore, the correct answer is April, aligning with the principle that revenue is recognized when services are performed.
Complete Question
Susan Zupan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Zupan's law firm prepares monthly financial statements, when should it recognize revenue from this engagement?
a) March
b) April
c) May
d) June
The Rehabilitation Act of 1973: a. applies only to employers receiving federal financial assistance. b. is enforced by the EEOC. c. does not apply to federal contractors. d. a, b, and c
Answer:
d. a, b, and c
Explanation:
The Rehabilitation Act of 1973 is the law enforced by the EEOC which is not applied to federal contractors while giving special importance on employers receiving federal financial assistance to those with the most difficult handicaps, to develop special federal capacities and research and training programs with respect to handicapped people, to build special capacities in the correspondent of education, health, and welfare for coordination of all programs with respect to handicapped people under the department of education, health and welfare, and for other targets.
Parent Corporation sells land (a capital asset) to Subsidiary Corporation in an intercompany transaction, realizing a $25,000 gain. Subsidiary uses the land for five years in its trade or business before selling the land to a nonmember of the group in a cash sale in which a $50,000 gain is realized. Which statement is correct?a. A $25,000 capital gain is included in consolidated taxable income when Parent sells the land to Subsidiary Corporation. A $50,000 Sec. 1231 gain is included in consolidated taxable income when Subsidiary sells the land.b. A $25,000 capital gain and a $50,000 Sec. 1231 gain are included in consolidated taxable income when Subsidiary sells the land.c. A $75,000 Sec. 1231 gain ($25,000 from Parent and $50,000 from Subsidiary) is included in consolidated taxable income in the year Subsidiary sells the land (assuming no recapture of previously deducted Sec. 1231 losses must occur).d. None of the above are correct.
The correct statement is that a $75,000 Sec. 1231 gain ($25,000 from Parent and $50,000 from Subsidiary) is included in consolidated taxable income when the Subsidiary sells the land, assuming there is no recapture of previously deducted Sec. 1231 losses.
When the Parent Corporation sells land to the Subsidiary Corporation, realizing a $25,000 gain, this gain is typically deferred for tax purposes in a consolidated return because it is an intercompany transaction. Therefore, answer a, which suggests a $25,000 capital gain is included in consolidated taxable income when Parent sells the land to Subsidiary, is incorrect since this gain is not immediately recognized.
When the Subsidiary Corporation later sells the land to a nonmember, the entire gain realized, including the previously deferred gain from the intercompany sale plus any additional gain recognized by the Subsidiary, is recognized. Therefore, the correct statement is c, which states that a $75,000 Sec. 1231 gain ($25,000 from Parent and $50,000 from Subsidiary) is included in consolidated taxable income in the year Subsidiary sells the land, assuming no recapture of previously deducted Sec. 1231 losses must occur. This includes the deferred gain and the additional gain on the final sale.
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,300 automobile tires: Actual: 52,400 lbs. at $1.7 per lb. Standard: 53,400 lbs. at $1.75 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $ b. The direct materials price variance should normally be reported to the . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the
Answer:
Direct Material Price Variance = ( Ap - Sp) * AQ
($1.70 - $1.75) * 52,400 = (-0.05)*52,400 = -$2,620 Favorable
Direct Material Quantity Variance = ( Aq - Sq)* Sp
( 52,400 -53,400) $1.75 = -$1,750 Favorable
Total materials cost variance = Material price variance + Material quantity variance
= -$2,260 (f) + -$1,750 (f)
=-$4,010 (F)
Explanation:
Ap = Actual Price
Sp = Standard Price
Aq = Actual Quantity
Sq = Standard Quantity
F= Favorable
Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds have a coupon rate of 6.0 percent and make semiannual coupon payments. What is the current market yield on this bond?
Answer:
9.08%
Explanation:
We use the RATE formula that is shown in the attachment below
Given that,
Present value = $898,.49
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 6% ÷ 2 = $30
NPER = 4 years × 2 = 8 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
Therefore,
After solving this, the yield to maturity is 9.08%
When prices rise a. the effect in the rich and poor is uncertain. b. both the rich and poor lose real income. c. the poor benefit at the expense of the rich. d. the rich benefit at the expense of the poor.
Answer:
The correct answer is letter "B": both the rich and poor lose real income.
Explanation:
Real income refers to the amount of money left to individuals after adjustments for inflation. In front of an increase in prices or, inflation, the purchasing power of individuals decreases since wages tend to remain at the same level. The same situation is faced by poor and wealthy individuals, thus, both of them see their real income decreased when inflation hits the markets.
Final answer:
When prices rise, b) both the rich and poor generally lose real income, with a potentially greater impact on the poor due to their reliance on basic necessities. In situations where income changes, the consequences for poverty and inequality depend on the relative changes in income levels among different socio-economic groups.
Explanation:
When prices rise, it typically affects individuals differently based on their income levels and wealth status. If we assess the options provided, the most likely scenario is that b) both the rich and poor lose real income. This is because as prices go up, the purchasing power of a given amount of money diminishes, which is referred to as a decrease in real income. However, the impact might be more significant on the poor because they spend a higher proportion of their income on basic necessities.
In the case of self-check questions, when incomes rise more for high-income earners than for low-income workers, inequality is likely to increase even though the level of poverty might remain stable or even decrease if low-income workers' wages rise above poverty thresholds. Conversely, if incomes fall more for high-income earners, inequality might lessen as the income gap between the high-income and low-income workers narrows.
The income effect and substitution effect play a role when prices change. The income effect affects buying power, and the substitution effect comes into play when consumers switch their preferences due to changes in price relative to other goods. These economic concepts are crucial in understanding the broader implications of changes in wages, profits, and prices.
Here are selected data for Creek Corporation: Cost of materials purchases on account $ 68 comma 500 Cost of materials requisitioned (includes $ 4 comma 500 of indirect) $ 51 comma 100 Direct labor costs incurred $ 77 comma 000 Manufacturing overhead costs incurred, including indirect materials $ 98 comma 300 Cost of goods manufactured $ 223 comma 300 Cost of goods sold $ 151 comma 300 Beginning raw materials inventory $ 14 comma 500 Beginning work in process inventory $ 30 comma 400 Beginning finished goods inventory $ 33 comma 200 Predetermined manufacturing overhead rate (as % of direct labor cost) 120% What is the balance in work in process inventory at the end of the year? A. $ 51 comma 700
Answer:
Thus, Work in process inventory (Ending) = $23,840
Explanation:
Below is the Schedule of Cost of Goods Manufactured:
Cost of materials requisitioned = 51,200
Manufacturing overhead applied = 92,640
Direct materials used = 46,700
Indirect materials = 4,500
Direct labor = 77,200
Total manufacturing cost = 216,540
Work in process inventory, beginning = 30,300
Work in process inventory, ending = 23,840
Cost of goods manufactured = 223,000
Applied Manufacturing overhead = Direct labor cost x 120%
= 77,200 x 120%
Applied Manufacturing overhead= $92,640
Cost of manufactured goods = Total manufacturing cost + Work in process inventory (beginning) - Work in process inventory (Ending)
223,000 = 216,540+30,300 - Work in process inventory (Ending)
Work in process inventory (Ending) = (216,540 +30,300) - 223,000
= 246,840 - 223,000
= 23,840
Thus, Work in process inventory (Ending) = $23,840
Answer:
23100
Explanation:
To get to this answer we must use process costing and we will begin by explaining what it is first.
A process costing system is used in industries where masses of similar products or services are produced. Products are produced in the same manner and consume the same amount of direct cost overheads.it is therefore unnecessary to assign costs to individual units of outputs for that period.
The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion. WIP refers to the raw materials, labour, and overhead costs incurred for products that are at various stages of the production process
Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labour cost and manufacturing overhead.
Direct materials are raw materials that are made into finished products. These are not materials that are used in the production process. Direct materials are goods that physically become the finished product at the end of the manufacturing process.
Direct labour cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a work order, or provision of a service.
23,100
Explanation:
Beginning WIP---------------------------------------30,400
Add: Total manufacturing costs
Direct materials used
(51,100 - 4,500) ----------------------46,600
Direct labour----------------------------77,000
Overhead (120% x 77,000) --------92,400-----216,000
Total cost in work in process--------------------246,400
Less; Ending WIP--------------------------------------? -----
Cost of goods manufactured--------------------223,300
Ending WIP = 246,400 - 223,300 = 23,100
Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of_______________.
Answer: Vicarious infringement
Explanation:
Vicarious infringement is a term used in legal processes to describe the Liabilities of which a person or an organisation incurs or inherits as a result of the infringement acts of another person, the other person may be a person's agent who represents him in certain circumstances.
VICARIOUS INFRINGEMENT IS THE SAME FOR BOTH COPYRIGHT AND TRADEMARK LAWS.
c. Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of indirect, or contributory, infringement.
Indirect or contributory infringement happens when a person contributes to or facilitates someone else's direct infringement. In this case, Cynthia made an arrangement with Stephanie, knowingly enabling her to engage in copyright infringement by copying and submitting a paper from a law journal without proper attribution.
Complete question
Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of_______________.
a. nothing because Stephanie, not Cynthia, infringed on the author's/publisher's copyright.
b. vicarious infringement.
c. indirect, or contributory, infringement.
d. nothing because once a work is published online, the fair use doctrine permits unlimited use of the work without attribution.
2. The Pennington Corporation issued new bonds 23 years ago. The bonds have a coupon rate of 12 percent, semi-annual payments, and were sold at their par value of $1,000. The 30-year bonds have 7 years remaining to maturity and the level of interest rates has declined. If the required rate of return for this bond is 10 percent, what is the intrinsic value of the bond
Answer:
c) $1,099
Explanation:
First, the multiple chices for the question
a) $1,692 b) $705 c) $1,099 d) $1,058 e)$1,189
Solution
what are we given,
First the future value = $1000 (which is the par value)
Years left to maturity = 7 yeras
Periods to consider = 2x7 = 14 (since the bonds involve a semi-annual payment)
Coupon rate = 12%
Therefore, we calculate teh interest amount as follows
= Future value x (coupon rate/2) =
$1000 x (0.12/2)= $60
Step 2: Calculate the Present value Based on given figures
Rate to use for present value = Required rate of return/2 = 10%/2 = 5%
Considering the Present Value
= PV(Rate,nper, pmt, FV)
PV ( 5%, 14, 60, 1000) = $1098.99
PResent Value = $1098.99
Final answer:
To find the intrinsic value of the bond, calculate the present value of the remaining semi-annual coupon payments and the par value at the required semi-annual rate of return, which is 5%.
Explanation:
The student's question pertains to the calculation of the intrinsic value of a bond. The Pennington Corporation issued 30-year bonds with a coupon rate of 12 percent, semi-annual payments, and a par value of $1,000. With 7 years remaining to maturity and the current required rate of return at 10 percent, we would need to calculate the present value of the remaining coupon payments and the par value of the bond.
To calculate this, we need to discount the semi-annual interest payments, which would be $60 (12% of $1,000 divided by 2), as well as the $1,000 par value, using the semi-annual discount rate (which would be 5%, half of the 10% required return). This requires calculating the present value of an annuity for the interest payments, plus the present value of a single sum for the par value of the bond.
You run a small farm that grows fresh produce to sell at your roadside stand. You employ workers, you rent land and you rent capital in order to grow the produce. If the marginal product per dollar of capital is $2, the marginal product of labor is 20, the price of labor is $10 and the marginal product of land is 32, what is the price of land?
Answer:
The price of land is $16
Explanation:
Provided data from the question;
The marginal product per dollar of capital = $2
The marginal product of labor = 20
The price of labor = $10
The marginal product of land = 32
To determine the price of land, The formula below is given:
Marginal Product of Labor ÷ Price of Labor = Marginal Product of Land ÷ Price of Land
20 ÷ $10 = 32 ÷ P
$2 = 32 ÷ P
P = $16
Therefore, Price of land = $16
Answer:
The price of the land is $16
Explanation:
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,800 from Diamond Inc. with terms 3/12, n/45. 5 Returned goods costing $1,450 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,350 with terms 3/12, n/45. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.
Final answer:
To calculate the cost of inventory for Ace Incorporated as of June 30, transactions with Diamond Inc. and Club Corp. were evaluated, adjusting for returns and discounts. After applying the respective discounts, the total inventory cost as of June 30 is $4,559.
Explanation:
To calculate the inventory cost for Ace Incorporated as of June 30, first, we address each transaction sequentially. With a perpetual inventory system, inventory values and costs of goods sold are updated continuously with each purchase or sale.
June 3: Purchased goods for $4,800 from Diamond Inc. with terms 3/12, n/45. This means if payment is made within 12 days, a 3% discount is applied.June 5: Returned goods worth $1,450 to Diamond Inc., which reduces the amount owed to $3,350 ($4,800 - $1,450).June 6: Purchased goods from Club Corp. for $1,350 with terms similar to the first supplier.June 11: Paid Diamond Inc. Before 12 days, hence took advantage of the 3% discount. $3,350 - 3% of $3,350 = $3,249.50 paid to Diamond Inc.June 22: Paid Club Corp. in full. Since payment was within 12 days, a 3% discount on $1,350 equals $1,309.50 paid.Therefore, the total inventory cost as of June 30 is the sum of payments made to both suppliers, $3,249.50 + $1,309.50 = $4,559.
The cost of inventory for Ace Incorporated as of June 30 is $4,515.50 after accounting for goods purchased, returns, and discounts.
During the month of June, Ace Incorporated purchased goods from two suppliers.
The sequence of events was as follows: June 3 Purchased goods for $4,800 from Diamond Inc. with terms 3/12, n/45. 5 Returned goods costing $1,450 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,350 with terms 3/12, n/45. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full.
Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month.
Calculate the cost of inventory as of June 30.
To answer this, follow these steps:
On June 3, Ace purchased goods worth $4,800 from Diamond Inc. with terms 3/12, n/45. The effective cost was $4,800 - $144 (3% of $4,800) = $4,656.On June 6, Ace purchased goods worth $1,350 from Club Corp. with terms 3/12, n/45. The effective cost was $1,350 - $40.50 (3% of $1,350) = $1,309.50. By June 30, Ace had inventory worth the sum of the goods purchased and net credits for returns: $3,206 (from Diamond Inc.) + $1,309.50 (from Club Corp.) = $4,515.50.In the TEQUILA MINI CASE, the bartender in the Viva advertisement is intended to suggest that Viva Vodka is trendy and foreign. What type of consumer would respond best to this element of the advertisement?
Answer:
Consumers low in ethnocentricity.
Explanation:
Ethnocentricity is defined as the belief an individual has that his own culture is superior to others. It is based on his personal beliefs, values and norms.
Individuals that highly ethnocentric are biased to their culture.
The advertisement in this scenario the message being passed is that Viva Vodka is trendy and foreign. This will appeal more to someone who is liberal and has low ethnocentricity.
People with high ethnocentricity will prefer a drink that promotes their particular culture.
Adam, Bill, and Charlie are partners. The profit and loss sharing rule between them is 2:5:1, with Bill receiving the largest share and Charlie receiving the smallest. The partnership incurs a net loss of $ 76 comma 000. While closing the Income Summary ________. (Do not round any intermediate calculations.)
Answer:
Adam's capital will be debited for $19,000
Bill's capital will be debited for $47,500
Charlie's capital will be debited for $9,500
Explanation:
Net loss = $76,000
The loss will be distributed according to their sharing ratio
Total of Ratios = 2 + 5 + 1 = 8
Adams's Share = 76,000 x 2 / 8 = $19,000
Bill's Share = 76,000 x 5 / 8 = $47,500
Charlie's Share = 76,000 x 1 / 8 = $9,500
As there is a loss the Journal Entry will be as follow
DR. Adam's capital account $19,000
DR. Bill's capital account $47,500
DR. Charlie's capital account $9,500
CR. Income Summary Account $76,000
Final answer:
The net loss of $76,000 incurred by the partnership of Adam, Bill, and Charlie is allocated based on their profit and loss sharing ratio of 2:5:1. The loss is divided by calculating the value of one part of the ratio from the total loss and then multiplying by the number of parts each partner has, resulting in Adam getting $19,000, Bill $47,500, and Charlie $9,500.
Explanation:
The question relates to how a partnership deals with a net loss and how that loss is allocated between the partners according to their agreed profit and loss sharing ratio. When a partnership such as that of Adam, Bill, and Charlie incurs a net loss of $76,000, this loss must be divided among the partners based on their loss sharing agreement, in this case, a ratio of 2:5:1. Bill, having the largest share, will bear the most significant portion of the loss, while Charlie will bear the least.
Here is how to calculate the division of the loss:
First, add up the parts of the ratio: 2 + 5 + 1 = 8 parts in total.
Calculate the value of one part by dividing the total loss by the total parts: $76,000 / 8 = $9,500 per part.
Multiply the value per part by the number of parts each partner has to find their share of the loss: Adam (2 parts) = 2 * $9,500 = $19,000; Bill (5 parts) = 5 * $9,500 = $47,500; Charlie (1 part) = 1 * $9,500 = $9,500.
Thus, while closing the Income Summary, the partnership will allocate the net loss of $76,000 between the partners in the following amounts: Adam will be allocated $19,000, Bill $47,500, and Charlie $9,500.
Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700 Journalize the closing entries. If an amount box does not require an entry, leave it blank.
Answer:
Fees Earned $614,500
Fees Earned $614,500 (debit)
Profit and Loss $614,500 (credit)
Dividends 45,000
Shareholders Equity $45,000 (debit)
Dividends $45,000 (credit)
Rent Expense 140,000
Profit and Loss $140,000 (debit)
Rent Expense $140,000 (credit)
Retained Earnings 3,250,000
Retained Earnings $ 3,250,000 (debit)
Shareholders Equity $3,250,000 (credit)
Supplies Expense 18,200
Profit and Loss $ 18,200 (debit)
Supplies Expense 18,200 (credit)
Wages Expense 320,000
Profit and Loss $ 320,000 (debit)
Wages Expense $ 320,000 (credit)
Miscellaneous Expense 8,700
Profit and Loss $8,700 (debit)
Miscellaneous Expense $ 8,700 (credit)
Explanation:
Fees Earned $614,500
Close off income to Profit and loss Account
Dividends 45,000
Close off to Shareholders Equity
Rent Expense 140,000
Close off expense to Profit and loss Account
Retained Earnings 3,250,000
Close off to Shareholders Equity in Retained Earning Reserve
Supplies Expense 18,200
Close off expense to Profit and loss Account
Wages Expense 320,000
Close off expense to Profit and loss Account
Miscellaneous Expense 8,700
Close off expense to Profit and loss Account
This detailed answer explains how to journalize closing entries for Automation Services Co., including the debit and credit amounts for each account.
Closing Entries for Automation Services Co:
Debit Fees Earned $614,500
Debit Dividends $45,000
Debit Rent Expense $140,000
Credit Retained Earnings $799,200
Debit Supplies Expense $18,200
Debit Wages Expense $320,000
Debit Miscellaneous Expense $8,700
Credit Fees Earned $614,500
Credit Dividends $45,000
Credit Rent Expense $140,000
Credit Retained Earnings $3,223,400
Credit Supplies Expense $18,200
Credit Wages Expense $320,000
Credit Miscellaneous Expense $8,700
McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following:
Book value Fair value
Buildings (10 year life) 10,000 8,000
Equipments ( 4 year life) 14,000 18,000
Land 5,000 12,000
Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what adjustment is necessary for Hogan's Buildings account?
A. $1,620 increase.
B. $1,620 decrease.
C. $1,800 increase.
D. $1,800 decrease.
E. No adjustment is necessary.
Answer:
D. $1,800 Decrease
Explanation:
book value Fair value adjustment
01 Jan 10,000 8,000 2,000
Depreciation -1000 -800 -200
31 Dec 9,000 7,200 1,800 Decrease
Kimmel, Accounting, 6e Help I Syst Problem 2-2A These items are taken from the financial statements of Whispering Winds Corp. for 2017. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and t Depreciation expense $35,530 2,150 70,530 20,750 11,750 6,280 12,000 12,000 71,540 6,780 1,650 3,320 14,150 2,480 40,540 19,250 dy Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment Prepare an income statement for the year ended December 31, 2017 Whispering Winds Corp. Income Statement ber 2017 Retained Earnings Expenses search
Answer:
Net Income = $23,550
Explanation:
Whispering Winds Corp.
Income Statement
For the year ended, December 31, 2017
Revenues:
Service Revenue $71,540
Expenses:
Maintenance and Repair expense $1,650
Depreciation Expense $3,320
Insurance expense $2,480
Salaries and wages expense $40,540
Total expenses $47,990
Net Income (Loss) $23,550
Therefore, net income is $23,550
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. MonthLabor-HoursMachine-HoursOverhead Costs 1 3,625 6,775 $513,435 2 3,575 7,035 518,960 3 3,400 7,600 549,575 4 3,700 7,265 541,400 5 3,900 7,955 581,145 6 3,775 7,895 572,320 7 3,700 6,950 535,110 8 3,625 6,530 510,470 9 3,550 7,270 532,195 10 3,975 7,725 565,335 11 3,375 6,490 503,775 12 3,550 8,020 564,210 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation
By applying the high-low method, we estimated the variable overhead cost per machine hour as $52.83 and fixed overhead costs as $161,830.33. The estimated monthly overhead for an average of 7,500 machine-hours in a month is approximately $557,057.5.
Explanation:To answer this question, we first need to apply the high-low method to estimate variable and fixed overhead costs. In the high-low method, the variable cost per machine-hour is computed as the difference of overhead costs associated with the highest and lowest activities divided by the difference in machine-hours in these activities. Then we estimate fixed costs by subtracting variable costs from the total overhead costs.
We start with identifying the months with the highest and lowest machine-hours. Month 5 had the highest machine-hours (7,955) with associated overhead costs of $581,145. Month 11 had the lowest machine-hours (6,490) with associated costs of $503,775. Then, we calculate the variable cost by taking the difference in overhead costs ($77,370) and dividing by the difference in machine hours (1,465) which gives us approximately $52.83 per machine-hour.
Next, we estimate fixed costs by subtracting the variable costs from total overhead in either the highest or the lowest activity month. Using the highest activity month (Month 5), the fixed overhead cost estimate is $581,145 - (7,955 * $52.83) = $161,830.33.
Finally, to estimate the monthly overhead costs for next year at an average of 7,500 machine-hours without considering inflation, we multiply the variable cost per machine-hour with the number of machine-hours and add the estimated fixed costs, that is, ($52.83 * 7,500 + $161,830.33) = $557,057.5.
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If Zenyatta Inc. has the following anticipated dividends: in year 1 of $4.00, in year 2 of $3.50, after that dividends are expected to grow at a 1.4% rate. What is a fair price if the required return is 5%
Answer:
The fair price per share today is $96.40
Explanation:
The fair price per share can be calculated using the DDM approach whereby the expected future dividends are discounted back to calculate the fair value of the share today.
The fair price per share will be,
P0 or V = 4 / (1+0.05) + 3.5 / (1+0.05)² + [(3.5 * (1+0.014)) / 0.05 - 0.014] / (1+0.05)²
Fair price per share = $96.40
Answer:
$96.403(Approx)
Explanation:
Using The dividend discount model (DDM) which is a method or technique that is used in the valuation of a company's stock price based on the premise that the company’s stock is worth of all of its potential dividend payments, discounted back to their current value.
Value after year 2=(D2*Growth rate)/(Required return-Growth rate)
=(3.5*1.014)/(0.05-0.014)
=98.583
Hence fair price=Future dividend and valu x Present value of discounting factor(rate%,time period)
=4/1.05+3.5/1.05^2+98.583/1.05^2
=$96.403(Approx)
When calculating the maximum home price using either the front ratio or the back ratio, one result is the maximum monthly payment the household can sustain. This amount covers:_____
a. Principal, interest, and escrow for taxes and insurance
b. The annual mortgage payment
c.The before-tax cash flow
d. The break-even occupancy level
e. The debt service coverage ratio
Answer:A. Principal, interest, and escrow for taxes and insurance
Explanation: Front-end ratio is a percentage of your total annual gross income which can be dedicated to the payment of your home loan monthly.
Back-end ratio is a term used to describe the total percentage of your annual gross income which you can put into the servising of your debts.
The maximum monthly payment which a household can sustain covers the PRINCIPAL, INTEREST, AND ESCROW FOR TAXES AND INSURANCE When calculating the maximum home price using either the front ratio or the back ratio.
Ventaz Corp manufactures small windows for back yard sheds.Historically, its demand has ranged from 30 to 50 windows per day with an average of 41. Alex is one of the production workers and he works eight hours a day, five days a week. Each order is one window and each window takes 55 minutes.
What is the cycle time for an order?
A. 6.86 minutes per window
B12.5minutes per window
C.5minutes per window
D. 250minutes per window
Answer:
C. 5 minutes per window
Explanation:
Hello, I felt there was an error in the question, and I believe it should be "each window takes 5 minutes" and not "each window takes 55 minutes". I was able to retrieve the question elsewhere and have attached it for your perusal :)
Cycle Time is the time taken between two successive deliveries. Simply spoken, it is the time taken from when the order is initiated to when the order is successfully accomplished. It is important not to confuse cycle time with lead time. Lead time is the time between when an order is requested to when it is delivered. For example, in this case, the window may have been requested to be manufactured half hour before Alex started work on it. Thus, the lead time would be 35 minutes (30 minutes prior + 5 minutes it takes to complete). Cycle time on the other hand is simply 5 minutes on an order. It takes 5 minutes to complete a window and each order is only one window. Hence, cycle time is 5 minutes per window.
Hope this helps :)
Mayor Magnus wants to recruit a Harvard economist, Milton, to be the Chief Developer for the Small Town's economic development division. The legal cap on the job of Chief Developer is $60,000. Mayor Magnus offers Milton $100,000. The contract is:
A. unconscionable based on unequal bargaining power.
B.injurious to public service.
C. exculpatory.
D. enforceable.
Answer:
The correct answer is letter "B": injurious to public service.
Explanation:
Contracts that are injurious to public service are those where public deputies deviate from their duties going out of the law. In most cases, the deviation implies using public resources incorrectly to benefit a third party or the representative in charge of allocating those resources efficiently. The contract is injurious to public service because it decreases the benefits the population should receive according to what central authorities have provided.
Jenny was feeling frustrated. "What's taking them so long to make a decision? It's been weeks since I first met with them, and they all seem interested in the product. I've also jumped through all their paperwork hoops." Jenny is likely selling to a firm in which kind of buying situation?
Answer: A. New buy
Explanation:
The situation described is most likely a NEW BUY situation because it bares some characteristics of same. In a new buy, customers generally take their time to make a decision and put the seller through a lot of paperwork in the case of corporate entities in a bid to assess the risk or cost of the new product. It is also necessary to do so as they have no previous experience with the seller and so trust cannot play a center stage.
Jenny also implied that it was the first time she had met them and it was also the first time they had been introduced to the product so there is that.
If you have any need for clarification do react or comment.
Group of answer choices:
A) New buy
B) Modified rebuy
C) Straight rebuy
D) Generic buy
E) Adapted buy
Answer:
The correct answer is letter "A": New buy .
Explanation:
In the corporate world, the new buy refers to the process in which a firm engages in the purchase of a new product or service. The company needs time to research different options attempting to select the most suitable. From the seller side, they must provide as many details of their goods as possible to attract new consumers. Persuasion is a key factor to close the deal.
After the decision is taken, some organizations may still be looking for options in case the product bought does not meet their standards.
Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds $50 million in reserves. How much more money could the bank create if it does not hold excess reserves
Answer:
$50 million
Explanation:
The computation is shown below:
As we know that
Required reserve = Deposits × Required reserve ratio
= $200 million × 0.20
= $40 million
Now the excess reserves is
= Bank reserves - required reserve
= $50 million - $40 million
= $10 million
So, the money creation is
Money creation = Money multiplier × excess reserve
where,
Money multiplier = 1 ÷ required reserve ratio
= 1 ÷ 0.20
= 5
So, the money creation is
= 5 × $10 million
= $50 million
a car's price is currently $20,000 and is expected to rise by 4% a year. if the interest rate is 6%, how much do you need to put aside today to buy the car one year from now?a. $18,182
b. $19,231
c. $19,263d. $14,085
Answer:
$19,591.63Explanation:
1. Calculate the price of the car in a year from now.
This is add the 4% on the current price:
$20,000 × 1.04 = $20,8002. Calculate the amount of money that must be put aside to have $20,800 in a year:
Use the formula of monthly compound interest, with 6% annual interest
r = 6% / 12 = 0.06/12 = 0.05P(1 + 0.005)¹² = $20,800P = $20,800 / (1 + 0.005)¹² = $19,591.63Releasing more information, in a common-value auction is a. Good for the bidders because it reduces the risk that they face b. Good for the auctioneer because it attracts more bidders c. Good for the bidders because they are less likely to bid more on the item than it’s worth d. Both A&B
Answer:
d. Both A&B
Explanation: Auction is a term used in the field of marketing or trading of goods where bidders are allowed to make bids(amount which they intend to pay for a given product) the Product can either be an Artwork or other goods like furniture,Cars, clothes etc.
A common value auction is a type of auction where certain information about the value of a product are available to some bidders and other sets of bidders have other information about the value.
DISPLAYING INFORMATION ABOUT A COMMON VALUE AUCTION IS GOOD FOR THE BIDDERS AS IT REDUCES THE RISK THEY FACE ESPECIALLY BEFORE BUYING THE PRODUCT AND FOR THE AUCTIONEER AS IT HELPS TO ATTRACT MORE BIDDERS.
Kebt Corporation's Class Semi bonds have a 12-year maturity and an 8.75% coupon paid semiannually (4.375% each 6 months), and those bonds sell at their $1,000 par value. The firm's Class Ann bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell? $937.56 $961.60 $986.25 $1,010.91 $1,036.18
Answer:
Total $986.2534
Explanation:
We have to discount the annual bond against the same rate but compounding semiannualy
[tex](1+ 0.0875/2)^2 -1 = r_e\\1.0894140625 - 1 = r_e\\0.0894140625 = r_e[/tex]
Now we discount the 12 coupon payment and the maturity at the given discount rate
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 87.500 (1,000 x 0.0875)
time 12
rate 0.0894140625
[tex]87.5 \times \frac{1-(1+0.0894140625)^{-12} }{0.0894140625} = PV\\[/tex]
PV $628.4172
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 12.00
rate 0.0894140625
[tex]\frac{1000}{(1 + 0.0894140625)^{12} } = PV[/tex]
PV 357.84
PV c $628.4172
PV m $357.8362
Total $986.2534
A company is evaluating a new 4-year project.
The equipment necessary for the project will cost $3,800,000 and can be sold for $745,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 34 percent.
What is the aftertax salvage value of the equipment?
Answer:
$ 714.957,6
Explanation:
We should solve for the book value afer four years:
3,800,000 x (0.2 + 0.32 + 19.2 + 11.52) =
3,800,000 x 0,8272 = 3.143.360
book value: 3,800,000 - 3,143,360 = 656.640
Now, we compare it against our expected sales value
745,000 - 656,640 = 88,360
This gain will be taxes at 34%
88,360 x 34% = 30.042,4
Now, the after tax salvage value will be :
745,000 - 30,042.4 = 714.957,6
The main difference between CPM and PERT is Group of answer choices
CPM and PERT use different activity time estimates.
PERT analysis is less expensive to conduct.
PERT lends itself to computerization while CPM networks must be constructed manually.
CPM integrates time and cost performance while PERT is based solely on time performance.
Answer: CPM and PERT use different activity time estimates.
Explanation:
Program (Project) Management and Review Technique (PERT) is appropriate when the project time needed to complete different activities are unknown while the Critical Path Method or CPM is fitted for recurring projects in nature. PERT deals with activities that are not predictable but CPM deals with repetitive activities. PERT focuses/concentrates on time while CPM focuses on time-cost & trade-off. Also, PERT requires three-time estimate while CPM requires one-time estimate. PERT uses a probabilistic model and on the other hand, CPM uses a deterministic model. In PERT, a technique of planning and controlling time is used but CPM uses a technique to control cost and time.
Answer:
The correct answer is letter "D": CPM integrates time and cost performance while PERT is based solely on time performance.
Explanation:
The Project Management and Review Technique also called PERT is used to plan and control the time of uncertain activities during the development of a project. The PERT is an event-oriented technique. The Critical Path Method or CPM is a statistical technique used to control the cost and time of well-defined activities of a project. The CPM is activity-oriented.