Answer:
a.
Feb 1, 2020
Prepaid Insurance 19440 Dr
Cash 19440 Cr
b.
Dec 31, 2020
Insurance Expense 5940 Dr
Prepaid Insurance 5940 Cr
Explanation:
a.
The purchase of 3 year insurance on 1 Feb 2020 will be recorded by adding the amount of purchase to the prepaid insurance account as it is an advanced purchase of policy. The resulting credit account will be cash which will represent payment for the insurance.
b.
The adjusting entry will be passed based on accrual or matching principle. The insurance expense per month is,
Insurance expense per month = 19440 / 36 = $540
The insurance expense for 2020 = 540 * 11 = $5940
The insurance expense will be debited by $5940 and prepaid insurance will be credited.
Dake Corporation's relevant range of activity is 2,200 units to 5,000 units. When it produces and sells 3,600 units, its average costs per unit are as follows For financial reporting purposes, the total amount of product costs incurred to make 3,600 units is closest to:
Answer: $50,940
Explanation:
The total amount of product costs incurred to make 3,600 units will be calculated as:
Direct materials = 3600 x 6.85 = 24660
Add: Direct labor= 3600 x 2.80= 10080
Add: Variable manufacturing overhead = 3,600 x 1.50 = 5400
Add: Fixed manufacturing overhead = 3600 x 3 = 10,800
Therefore, the Total product cost will be:
= 24660 + 10080 + 5400 + 10800
= $50,940
Creswell Corporation's fixed monthly expenses are $26,000 and its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $84,000
Answer:
See below
Explanation:
The company's net operating income would be;
= fixed expenses / Contribution margin ratio
= $26,000/60%
= $43,333
The airline industry is an example of a(n) ________ industry. A) perfectly competitive B) monopolistic C) monopolistically competitive D) oligopolistic
Answer:
d
Explanation:
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by:
price setting firms
product differentiation
profit maximisation
high barriers to entry or exit of firms . There is a high cost of entry into the airline industry due to the high cost of the business
downward sloping demand curve
Avocado, Inc. purchased a $100,000 machine and deducted $70,000 of depreciation before selling it for $80,000 (after holding it for more than 1 year). How much gain does Avocado recognize
Answer:Avocado recognizes a gain of $50,000
Explanation:
Book Value of machine = Purchase Price - Depreciation
$ 100,000 - $70,000 = $30,000
Avocado sold the machine at = $80,000
Therefore, Gain/(loss) recognized = Selling Price - Book Value on date of sale
$80,000 - $30000 = $50,000
Avocado recognizes a gain of $50,000
Avocado recognizes a gain of $50,000
The calculation is as follows:
Book Value of machine = Purchase Price - Depreciation
= $ 100,000 - $70,000
= $30,000
And,
Avocado sold the machine at = $80,000
So,
Gain/(loss) recognized = Selling Price - Book Value on date of sale
= $80,000 - $30000
= $50,000
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The summarized balance sheets of Wildhorse Company and Blossom Company as of December 31, 2021 are as follows: Wildhorse Company Balance Sheet December 31, 2021 Assets $2850000 Liabilities $390000 Capital stock 1400000 Retained earnings 1060000 Total equities $2850000 Blossom Company Balance Sheet December 31, 2021 Assets $2160000 Liabilities $500000 Capital stock 1330000 Retained earnings 330000 Total equities $2160000 If Wildhorse Company acquired a 20% interest in Blossom Company on December 31, 2021 for $520000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (Blossom) would have been $432000. $266000. $520000. $332000.
Answer:
$520,000
Explanation:
Under the fair value method of accounting, the investment is recorded at cost paid to acquire such investment. So, the Debit to Equity Investments (Blossom) would have been $520,000
Marshall has received an inheritance and wants to invest a sum of money today that will yield $4,300 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today
Answer:
$2,639.83
Explanation:
The value expected in the next 10 years is known as the future value while the amount to be invested today is the present value amount, hence, using the formula below which relates the present value to the future value, we can determine the present value as appropriate:
PV=FV/(1+r)^n
PV=present value=the unknown
FV=future value=$4,300
r=rate of return=5%
n=number of years that investment would last =10
PV=$4,300/(1+5%)^10
PV=$4,300/1.05^10
PV=$4,300/1.62889463
PV=$2,639.83
a debt of $1,000 is incurred at t 5 0. What is the amount of four equal payments at t 5 1, 2, 3, and 4 that will repay the debt if money is worth 10 percent compounded per period
Answer: $315.47
Explanation:
As this requires equal annual payments, it makes it an annuity. The $1,000 debt will be the present value of the annuity so a present value of annuity formula can be used:
1,000 = Annuity * ( 1 - ( 1 + rate) ^ -n) / rate
1,000 = Annuity * ( 1 - ( 1 + 10%)⁻⁴ ) / 10%
1,000 = Annuity * 3.169865
Annuity = 1,000/3.169865
Annuity = $315.47
Suppose that on January 1, 2016 PepsiCo purchased a patent on a production process and it expected that this patent would have value for 10 years. The patent was recorded on the books for $4,800,000.
Required:
What will the entry look like to record amortization for the month of January, 2016?
Answer:
Dr Amortization Expense $40,000
Cr Accumulated Amortization (contra-asset account) $40,000
Explanation:
Preparation of What will the journal entry look like to record amortization for the month of January, 2016
Based on the information given What the journal entry will look like to record amortization for the month of January, 2016 is :
Dr Amortization Expense $40,000
Cr Accumulated Amortization (contra-asset account) $40,000
10 years will give us 120 months (10 years*12 months)
Hence,
$4,800,000/120 months
= $40,000
Which is the difference between static storage systems and dynamic storage systems
Answer:
In a static storage area each product is assigned a specific area, whereas in dynamic storage, product locations and fluid and as such are subject to change.
For financial accounting purposes, what is the total amount of product costs incurred to make 20,250 units
Answer:
$411,075
Explanation:
Calculation for the total amount of product costs incurred to make 20,250 units
First step is to calculate Variable manufacturing cost per unit
Direct materials 7.70
Direct labor Variable 4.70
Variable manufacturing overhead 2.20
Variable manufacturing cost per unit $14.6
Second step is to calculate Total variable manufacturing cost
Variable manufacturing cost per unit$14.6
*Number of units produced 20,250 units
=Total variable manufacturing cost $295,650
($14.6*20,250)
Second step is to calculate Total fixed manufacturing cost
Fixed manufacturing overhead per unit $5.70
xNumber of units used to calculate fixed cost per unit 20,250 units
=Total fixed manufacturing cost $115,425
($5.70*20,250)
Now let calculate Total product cost
Total product cost = $295,650+$115,425
Total product cost=$411,075
Therefore the total amount of product costs incurred to make 20,250 units is $411,075
Pharoah Company purchased $2600000 of 8%, 5-year bonds from Sheridan, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2724740 at an effective interest rate of 7%. Using the effective-interest method, Pharoah Company decreased the Available-for-Sale Debt Securities account for the Sheridan, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $9820 and $10180, respectively. At December 31, 2021, the fair value of the Sheridan, Inc. bonds was $2780000. What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity
Answer:
$75,260
Explanation:
Calculation for What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity
Using this formula
Comprehensive income/separate component of stockholders' equity=Fair value-(Sales of bonds-July 1, 2021 Amortized premiums-December 31, 2021 Amortized premiums)
Let plug in the formula
Comprehensive income/separate component of stockholders' equity=$2,780,000 - ($2,724,740 - $9,820 - $10,180)
Comprehensive income/separate component of stockholders' equity=$2,780,000-$2,704,740
Comprehensive income/separate component of stockholders' equity= $75,260
Therefore What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity is $75,260
Assume that VCRs and videotapes are complements. When the price of VCRs fall and the price of plastic (used to make videotapes) rise, what should happen to price and quantity of videotapes. What happens to equilibrium price and quantity
Explanation:
When the price of VCRs fall and the price of plastic (used to make videotapes) rise, then there will be an increase in the price and decrease in demand and for videotapes since they are strong compliments.
Consider this analogy, people used to need videotapes in other to record on VCRs; (just a sim card is needed so as to fully use a phone). Hence, as the price of the material (plastic) used to make videotapes rises; ultimately the videotape prices themselves would increase; leading to lesser demand.
As a result of this, we can expect the equilibrium price and quantity to decrease.
GDP for this economy is _____. rev: 04_09_2018 Multiple Choice $6,400 billion $7,500 billion $9,400 billion $10,470 billion
Answer:
b. $7,500 billion
Explanation:
Note: The complete question is attached as picture below
GDP = C + I + G + X - M
GDP = Consumption + Investment + Government purchases + Exports - Imports
GDP = $5,100 + $1,100 + $1,400 + $850 - $950
GDP = $7,500 billion.
Hence, the GDP for this economy is $7,500 billion.
Preferred stock, 5%, $50 par value, 1,200 shares issued and outstanding with dividends in arrears for the three prior years. Common stock, $100 par value, 2,200 shares issued and outstanding. Total dividends declared and paid in current year were $52,000. How much of the current dividend will be paid to the preferred stockholders assuming the preferred stock is cumulative
Answer:
$12,000
Explanation:
total preferred dividends per year = 1,200 x $50 x 5% = $3,000
since they were not paid during the past three years, and they are cumulative, the total preferred dividends = $3,000 x 4 = $12,000
common stock dividends = total dividends - accumulated preferred dividends = $25,000 - $12,000 = $13,000
cumulative preferred stocks that are not paid in the past, must be paid before any common dividends are paid
If opening capital is ks 70000 and closing capital is ks 90000, what is the amount of profit or loss
Answer:
20,000
Explanation:
The computation of the amount of profit or loss is given below:
As we know that
Closing capital = opening capital + profit or loss - drawings
90,000 = 70,000 + profit or loss - 0
Profit = 90,000 - 70,000
= 20,000
Hence, the amount of profit is 20,000
Note how these emerging technologies are impacting organizations and what organizations can to do to reduce the burden of digitalization.
The correct answer to this open question is the following.
You did not attach any text, article, or particular reference to answer this question. So we assume you are talking in general terms.
So being that the case, we can comment on the following.
It is true that emerging technologies are impacting organizations. Some businesses and organizations have been overwhelmed by technological advances. We are talking about new technologies that are transforming the workplace such as biometrics, analytics, robotics, big data, or artificial intelligence.
What organizations can do to reduce the burden of digitalization is having a gradual transformation. Not a sudden or abrupt change. A step by stape process is highly recommended. But procrastination at all. The digital transformation should start now.
It has to start with a process of training to make employees aware of the necessity of change.
You have checked model income statements and estimate your payroll expense will be 28% of revenue. You expect sales to be $312,112 per year. What should you budget MONTHLY for payroll?
a) $7,283
b) $8,480
c) $9,347
d) $12,960
Answer: a) $7,283
Explanation:
You expect payroll expense to be 28% of annual revenue which is $312,112 per year.
Annual payroll = 28% * 312,112
= $87,391.36 per year
The monthly figure will therefore be:
= 87,391.36/12 months
= $7,282.61
= $7,283
Dave gets a job at a grocery store, which pays him an hourly wage in
exchange for his labor. Dave is participating in *
O A. entrepreneurship
O B. human capital.
O C. the product market.
O D. the factor market.
Answer:
D. the factor market
Explanation:
Labor (along with land, capital, and entrepreneurship) is one of the "four factors of production."
Also, Dave isn't starting a business (so he's not an entrepreneur), nor is he in the product market (since he's not making products; just shelving, bagging, and/or scanning them at checkout). I suppose he might be participating in human capital in that he's building up "human capital" (i.e., building up his skills and experience), but I feel like "factor market" is better.
Sanjay has three children and is starting a new company. He is looking down the road to a future time when his children are grown and could take over the business. Given his future wishes, what question is most important for him to consider when establishing his new business
Answer:
what is the best business structure for continuity and transferability
Explanation:
Sanjay is looking towards beginning a new company. His plans are for his children to take over the company when they are adults in the future.
The most important question he has to consider in this establishment, is one whose answer can provide with the best business entity/structure that would still stand in the future and whose ownership can be handed over to his children In the future.
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes $29,710 in direct materials cost and $10,600 in direct labor cost. A total of 1,750 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313?
Answer:a.Total manufacturing costs for Job 313 =$52,500
Unit Product Cost for Job 313=$30
Explanation:
Total manufacturing costs=Direct materials+Direct labor costs+Overhead costs
But Overhead cost =115% of direct labor cost
= 115% x $10,600
=$12,190
Total manufacturing costs =$29,710 + $10,600+$12,190
=$52,500
Unit Product Cost=Total Manufacturing costs/ Total Number of Units Produced =$52,500 /1,750 units
=$30
Castille sold 35 shares of stock for $47.50 a share. She bought the stock for $51 a share
last year. What was her dollar return (loss), not counting the commission?
$_____loss
Answer:
$122.50
Explanation:
The loss will be selling price minus buying price
Loss = (35 x $47.50) - ($35 x 51)
Loss = $1,662.50 - $1,785.00
Loss = -$122.50
Loss = $122.50
How big does the return have to be to put a domestic stock fund in the top for the three-year period (to 2 decimals)
Answer:
20.944%
Explanation:
Complete question is: "The average return for large-cap domestic stock funds over the three years (2009-2011) was 14.8%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.8%. How big does the return have to be to put a domestic stock fund in the top 10% for the three-year period (to 2 decimals)?"
Top 10% would be 90th percentile.
Z at 0.9 from standard normal table = 1.28
==>> 1.28*4.8% + 14.8%
==>> 6.144% + 14.8%
==>> 20.944%
According to the equation, the return would be 20.944% that have to be to put a domestic stock fund in the top for the three-year period.
How big does the return have?
Given Information:
standard deviation=4.8%average return=14.8%Top 10% would be 90th percentile.
Z at 0.9 from standard normal table = 1.28
Return= 1.28*4.8% + 14.8%
Return=6.144% + 14.8%
Return=20.944%
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In 2001, records showed that local stocks of fish were down worldwide. Yet, records of harvests indicated that fish were being taken at record rates. What was actually happening
Answer: China was making up figures
Explanation:
This question is based on the documentary film, ''The End of the Line'' which was done on the effects of fishing worldwide. In 2001, records showed that local stocks of fish were down around the world yet worldwide figures were increasing at a record rate.
The United Nations hired someone to investigate this and what he found was that Communist China was inflating the amount of fish they were harvesting so that they could look more efficient.
Given a total population of 1 million, a working age population of 500,000, a labor force of 400,000, 300,000 employed, and 100,000 unemployed... ..the labor force participation rate is:
Answer:
the labor force participation rate is 80%
Explanation:
The computation of the labor force participation rate is given below:
Labor force participation rate = labor force ÷ working-age population × 100
= 400,000 ÷ 500,000 × 100
= 4 ÷ 5 × 100
= 80%
hence, the labor force participation rate is 80%
1. Why might a defendant prefer to be sued in one state rather than in another
Answer:
One state might have less harsh penalties.
Explanation:
if there are two gas stations in a very small town then the gasoline industry is probably best characterised as
Answer:
Oligopolistic
Explanation:
An Oligopoly is when there are few large firms operating in an industry.
When there are two firms in an industry, it is known as a duopoly
Oligopolies are characterised by:
price setting firms product differentiation profit maximisation high barriers to entry or exit of firms downward sloping demand curve_____, which is the ease with which consumers can sample or use a new product innovation, _____ the diffusion rate.
Answer:
Trialbility; increases
Explanation:
A marketing mix can be defined as the choices based on pricing strategy, product attributes, communication and distribution strategy that a business firm offer to its potential customers and target markets.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc
Hence, trialbility which is the ease with which consumers can sample or use a new product innovation, increases the diffusion rate.
This ultimately implies that, when a business firm avails its customers the opportunity to try out their newly introduced or invented products, it increases the rate at which the product will become accepted in the market.
Suppose the Federal Reserve announces that it will be making a change to a key interest rate to increase the money supply. This is likely because
Answer:
The Federal Reserve is worried about unemployment
Explanation:
The Federal reserve uses various strategies bro control supply of money in the economy. This is aimed at improving the economy depending on its present state.
In an economy where there is inflation there is need to reduce money supply.
When economic growth is slow there is need to increase money supply.
So when the Federal Reserve increases money supply by reducing interest rates, it is most likely to combat unemployment and facilitate economic growth.
Do you really believe that having a written code of conduct will reduce fraud and other dishonest acts in an organization
Explanation:
Yes, it is necessary to have a written code of conduct so that employees have an instrument that regulates and regularizes fraud situations in the company. The code of conduct is a necessary document so that employees can guide the ideal ethical behavior for a professional, as well as serving as a protection document for those who suffer an unethical act by third parties.
It is necessary, in addition to the written code of conduct, that behaviors be guided and valued when positive, starting with leaders, who must behave based on ethics and respect for employees. Through shared ethics, an organizational culture favorable to the development and motivation of employees is created.
A supplier has offered your company a reduced price per unit for a component part you purchase if you will increase your purchase quantity from to units. Currently, you pay $ per unit. The supplier has offered to reduce this cost to $ per unit if you purchase the higher quantity. You purchase approximately of the units annually. The cost to place an order is estimated to be $ per order regardless of the order size. Transportation costs are estimated to be $ per unit. Your cost to hold a component part in inventory is estimated at % annually based on the cost of the purchased item. Should you continue with your current policy, or should you take the incentive offered by the supplier?
Answer:
the numbers are missing:
A supplier has offered your company a reduced price per unit for a component part you purchase if you will increase your purchase quantity from 18,000 to 72,000 units. Currently, you pay $28.50 per unit. The supplier has offered to reduce this cost to $28.20 per unit if you purchase the higher quantity. You purchase approximately 279,000 of the units annually. The cost to place an order is estimated to be $360 per order regardless of the order size. Transportation costs are estimated to be $0.85 per unit. Your cost to hold a component part in inventory is estimated at 18% annually based on the cost of the purchased item. Should you continue with your current policy, or should you take the incentive offered by the supplier?
currently the total cost = [279,000/18,000 x $360] + (18% x $28.50 x 18,000/2) + (279,000 x $0.85) + ($28.50 x 279,000) = $5,580 + $46,170 + $237,150 + $7,951,500 = $8,240,400
total cost after proposed change in order size = [279,000/72,000 x $360] + (18% x $28.20 x 72,000/2) + (279,000 x $0.85) + ($28.20 x 279,000) = $1,395 + $182,736 + $237,150 + $7,867,800 = $8,289,081
the proposed change in order size should not be accepted and the company should continue with its current policies
