Answer:
Explanation:
U = 10 X²Z
Given
150 = 5X + 20Z
30 = X + 4Z
To maximise utility
differentiating partially wrt X
MU_x = dU/ dX = 20XZ
differentiating partially wrt Y
MU_y = dU/dY = 10X²
For optimal bundle
MU_x / MU_y = P_x / P_y
20XZ / 10X² = 5 / 20
2Z / X = 1/4
X = 8Z
30 = X + 4Z
30 = 8Z + 4Z
12Z = 30
Z = 2.5
X = 8 X 2.5
= 20
X = 20
Z = 2.5
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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There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is lowest for AAA-rated bonds, and required returns decrease as the bond ratings get higher.A. TrueB. False
Answer:
A. True
Explanation:
The three statement present are correct.
A lower quality bond will need to pay a better return in order to attract investor. as if given the choise, they would purchase better quality if the rate is the same.
The second statemnt, yes the AAA- bonds will have a lower rate. As they are pretty much a risk-free rate
The next bond, which is AAA will have a lower return as is even more solvent to pay.
Find the present values of the following cash flow streams. The appropriate interest rate is 9%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0
Answer:
a. Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your
answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0.
Year Cash Stream A Cash Stream B
1 $100 $300
2 400 400
3 400 400
4 400 400
5 300 100
Explanation:
Please note that unlike the question above, I used an interest rate of 9% since that’s what you asked for so my answer will be different from that of the question above since it uses 6%
Using a financial calculator (specifically BAII plus).
The net present value of the cash stream A is $1,133.
While that of cash stream B is $1,269
Final answer:
The present value of a two-year bond with a $3,000 principal and 8% interest is calculated by discounting the future cash flows of interest and principal back to present terms using rates of 8% and 11%. The total present value at an 8% discount rate remains $3,000, while at an 11% rate, it decreases to $2850.04.
Explanation:
Calculating the present value of cash flows involves finding what future amounts are worth today, given a specific interest or discount rate. For a simple two-year bond with a principal of $3,000 and an 8% interest rate, you receive $240 in interest each year. Using the present value formula, we discount these future cash flows back to their value in present terms.
Present Value Calculations
First with a discount rate of 8%:
Year 1 Interest PV = 240 / (1 + 0.08)1 = $222.22
Year 2 Interest PV = 240 / (1 + 0.08)² = $205.76
Year 2 Principal PV = 3000 / (1 + 0.08)² = $2,572.02
Total Present Value = $222.22 + $205.76 + $2,572.02 = $3,000
Next, with a discount rate of 11%:
Year 1 Interest PV = 240 / (1 + 0.11)1 = $216.22
Year 2 Interest PV = 240 / (1 + 0.11)² = $194.80
Year 2 Principal PV = 3000 / (1 + 0.11)² = $2,439.02
Total Present Value at 11% discount rate = $216.22 + $194.80 + $2,439.02 = $2850.04
To obtain the final answer for the bond's worth in present value terms, we add up all the present values for the different time periods.
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.
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
Which of the following statements is true?
a.IT equals business success.
b.IT equals business innovation.
c.IT represents business success and innovation.
d.IT enables business success and innovation.
Answer:
d.IT enables business success and innovation
Explanation:
Information technology (IT) relates to use and maintenance of computers, software and networking systems so as to recover useful data or transmit data. Growth in information system has lead to an increase in innovation, which means performing a said task more efficiently and effectively.
Progress in Information Technology has made complex tasks easier and have boosted the efficiency. By leading to innovation, IT gradually enables a business to succeed.
Final answer:
IT enables business success and innovation by providing necessary tools and platforms, although its impact also involves shifts in employment and requires regulation and human capital investment.
Explanation:
Among the given options regarding information technology (IT) and its role in business, the most accurate statement is that IT enables business success and innovation. This is because IT itself doesn't equate to either business success or innovation, but rather provides tools, processes, and platforms that can be leveraged to drive business success and foster innovation. The use of IT has allowed companies to expand their market reach, improve efficiency, and create new business models. However, as indicated by Perez's research, the impact of IT also includes shifts in employment and economic opportunities, which require proper regulation and investment in human capital. Furthermore, the advent of IT has led to the rise of 'megafirms' such as Amazon and Apple, highlighting the dual nature of IT in promoting both opportunities and challenges in the modern business landscape.
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.
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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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
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.
Classify the following changes in each of the accounts as either an outflow or an inflow of cash. During the year (a) marketable securities increased, (b) land and buildings decreased, (c) accounts payable increased, (d) vehicles decreased, (e) accounts receivable increased, and (f) dividends were paid.
Answer:
(a) marketable securities increased - outflow of cash
(b) land and buildings decrease - Inflow of cash
(c) accounts payable increased - Inflow of cash
(d) vehicles decreased - Inflow of cash
(e) accounts receivable increased - Outflow of cash
(f) dividends were paid - Outflow of cash
Explanation:
Marketable securities are an asset in the entity's financial statements. An increase in an asset in simple terms can be likened to the use of cash in the purchase of an asset. As such, an increase in market securities is an outflow of cash.
Land and buildings decreased - A decrease in land and building is a decrease in asset which can be likened to a disposal of the asset for cash hence this is an inflow of cash.
Accounts payable increased - This is an increase in liability which can easily be likened to the receipt of cash from a loan. Hence this is an inflow.
Vehicles decreased - A decrease in Vehicles is a decrease in asset which can be likened to a disposal of the asset for cash hence this is an inflow of cash.
Accounts receivable increased - This is an increase in an asset other than cash. In simple terms, it can be explained as the exchange of cash for another asset. As such this is an outflow.
Dividends were paid - clearly an outflow of cash.
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.
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.
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.
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.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.
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.
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.
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.
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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What is the difference between absolute advantage and comparative advantage?
Answer:
The Absolute Advantage is the indwelt ability of a country to produce specific goods in an efficient and effective manner at a relatively lower marginal cost.
While
Comparative Advantage refers to the country's capability of producing the specific good at lower marginal cost and opportunity cost.
Answer and explanation:
Absolute Advantage is an individual, company, or country's ability to produce a good or service at a lower cost than any competitor. To offset its competitor costs and earn higher profits, an organization with an absolute advantage requires fewer inputs or more productive processes.
Comparative advantage is an individual, firm, or country's ability to produce a good or service at a lower opportunity cost than its competitor. Having a comparative advantage doesn't mean that one entity is absolutely better at producing that good or service than another. It means it sacrifices less.
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
Partha owns a qualified annuity that cost $52,000. Under the contract, when he reaches age 65, he will receive $500 per month until he dies. Partha turns 65 on June 1, 2018, and receives his first payment on June 3, 2018. Refer to the Annuity payment table to answer the following question. Partha will report gross income of $______ from the annuity payments in 2018.
Answer:
=$2100
Explanation:
Figure out the amount of gross income by partha
The payment to be recieved monthly = $500
The number of payments to be recieved = 260 (Partha`s age is 65)
Thus,
Monthly exclusion = cost of annuiy / number of payments
= [tex]\frac{52000}{260}[/tex]
= $200
So,
Gross income = (monthly payment - monthly exclusion) * (nunmber of months)
= ($500 - $200) * 7
= $2100
Therefore,
partha will report gross income of $2100, from the annuity payment in 2018
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.
When Miles separated from service with his former employer, he had a $10,000 outstanding balance in an employer plan loan. He received a total distribution of $30,000 without regard to the loan. The check he received was for $14,000. Mandatory withholding was $6,000. How much of the distribution is taxable
Answer:
taxable distribution is $30000
Explanation:
given data
outstanding balance = $10,000
total distribution = $30,000
check he received = $14,000
withholding = $6,000
solution
we know here outstanding balance is given $10000 in employ plan loan
so total they received as net of loan outstanding here is $30000
so that total benefit here $30000
that is eligible for the purpose
hence here taxable distribution is $30000
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings:Direct materials ?Direct labor $472,500Variable overhead 15,000Fixed overhead 18,000Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:Direct Materials InventoryBeginning $4,000Ending 2,600There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day.Required:1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0".Happy Home Helpers, Inc.Statement of Cost of Services SoldFor the Coming Year
Answer:
$532,500
Explanation:
The question is to compute the Statement of Cost of Services Sold for Happy Home Helpers Inc.
To compute this statement, the approach is to sum all direct costs associated with the service provided by the firm.
Particulars Amount Amount
Opening Inventory Of Materials $4,000
Add: The Purchase of Direct Materials $25,600
Direct Material available $29,600
Subtract: Closing Inventory of materials ($2600)
The Direct Material Used for the year $27,000
Add:
Direct Labour Cost $472,500
Variable Overhead Cost $15,000
Fixed Overhead cost $18,000
$505,500
The Cost of Services of HHH Inc $532,500
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.
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.
How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?
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.