Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 4,600 Salaries expense 1,800 Accounts payable 2,600 Retained earnings 4,100 Utilities expense 1,000 Supplies 13,000 Service revenue 8,500 Common stock 5,200 Required: Use only the appropriate accounts to prepare an income statement.

Answers

Answer 1

Answer:

                                                  Cowboy Law Firm

                    Income statement for the period ended December

                                                                          Amount in $

Service revenue                                                   8,500

Utilities                                                                  (1,000)                                    

Salaries expense                                                 (1,300)

Net income/(loss)                                                  6,200

Explanation:

An income statement is a part of the financial statements that shows how profitable the activities of an entity was for a given period of time. It is usually stated as the income statement for a period end.

The elements of the income statement include the revenue otherwise called sales, expenses including cost of goods sold, operating expenses etc and the profit or loss as well as the other comprehensive income/loss.


Related Questions

The following information is available for Brendon Company before closing the accounts. What will be the amount in the Income Summary account that should be closed to Retained earnings? Retained earnings $ 112,000 Dividends 32,000 Fees earned 187,000 Depreciation Expense—Equipment 12,000 Wages expense 71,400 Interest expense 3,300 Insurance expense 11,700 Rent expense 24,200

Answers

Answer:

$64,400

Explanation:

The amount of in the income summary that would be closed to retained earnings is the fees earned of $187,000 less the depreciation expense of $12,000,wages expense of $71,400,interest expense of $3,300,insurance expense of $11,700 as well as the rent expense of $24,200 as computed thus:

net income from income summary=$187,000-$12,000-$71,400-$3,300-$11,700-$24,200=$64400

Retained earnings closing balance=$112,000-$32,000+$64400 =$ 144,400.00  

On January ​3, Halsall Corporation purchased 1,800 shares of the​ company's ​$1 par value common stock as treasury​ stock, paying cash of $ 8 per share. On January ​30, Halsall sold 1,200 shares of the treasury stock for cash of $9 per share. Journalize these transactions.

Answers

Answer:

The journal entries alongwith its explanation are as under:

Explanation:

Journal entry at Jan 3, to record purchase of treasury stock would include the recording of treasury stock at the price paid to the shareholders for purchase of the stock, the journal entry is as under:

Dr Treasury Stock (1800 share*$8 per share) $14,400

Cr Cash                                                                      $14,400  

 

Journal entry at Jan 30, of selling treasury stock would include the elimination of the treasury stock at the amount purchased and the remainder will will be the Paid-In Capital, the journal entry is as under:

Dr Cash (1200*9)                 $10,800

Cr Treasury stock (1200*8) $9,600

Cr Paid in capital from sale of treasury stock $1,200

(c)
Your answer is partially correct. Try again.
Prepare a CVP income statement for current operations and after Mary's changes are introduced.
v
MARIGOLD SHOE STORE
CVP Income Statement
Current
New
Sales
$800,000
$912,000
जी
Variable Expenses
$480,000
$576,00
Contribution Margin
$320,000
$336,000
Fixed Expenses
$270,000
$294,000
Net Income/(Loss)
$50,000
$42,000
$
Would you make the changes suggested?
No​

Answers

Answer:

The changes suggested increase income by 16,000 therefore is a good idea to made the changes

Explanation:

Your Mistake is that fixed expenses should remain constant with a sales increase

                     Current                  New

Sales             $800,000       $ 912,000

Variable        $ 480,000      $ 576,000

Contribution $ 320,000      $ 336,000

Fixed             $ 270,000     $ 270,000  

Net Income   $  50,000       $  66,000

Drivers of the growth of international acquisitions include all of the following except:_________.
1. the need to grow the business to compete with other global firms.
2. to acquire assets and resources needed to compete.
3. a faster way to develop a presence in the local market.
4. the desire to develop all of the required resources internally.

Answers

Answer:

the desire to develop all of the required resources internally.

Explanation:

The U.S. Department of Defense needs to buy several million dollars worth of tires for its armored personnel carriers. An American manufacturer can supply the tires for $20 million. A foreign supplier can provide the tires for $15 million. Under these facts:________.
A) GATT requires that the tires be bought from the foreign supplier.B) A U.S. statute requires that the government buy from the U.S. supplier.C) Since the foreign supplier is cheaper, the government must buy from the foreign supplier to save money.D) None of the above is correct.

Answers

Answer:

The correct answer to the following question will be Option B.

Explanation:

The United States Department of Defense wants to supply tires valued many millions of dollars for some of its tanks and armored vehicles. An American manufacturer could supply 20 million dollars for the tires. Variables are dependent can supply $15 million again for tires. Beneath such factual information.

The other three choices have no relation with the specified scenario. So choice B is the perfect solution to that.

Joy Elle’s Vegetable Market had the following transactions during 2010: Issued $50,000 of par value common stock for cash. Repaid a 6 year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $2,000. Sold a long-term investment (cost $63,000) for cash of $6,000. Acquired an investment in IBM stock for cash of $12,000. What is the net cash provided by financing activities?

Answers

Answer:

$26,000

Explanation:

                    Joy Elle’s Vegetable Market

               Cash flow from Financing Activities

Issuance of Stock                                          $50,000

Less: Repaid Note payable                          $22,000

Less: Paid Dividend                                       $2,000

Net Cash provided by financial activities  $26,000

-Acquired land by issuing common stock is a Non cash investing and financing activities under cash flow

-Sold a long-term investment for cash is an investing activities under cash flow

-Acquired an investment in IBM stock for cash is an Investing activities under Cash flow

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of the​ assemblies, the XOminus​01, has an estimated annual demand of 12 comma 000 units. The cost to place an order for these assemblies is ​$650​, and the holding cost for each assembly unit is approximately ​$30 per year. The company has 260 workdays per year.

Required:
What are the annual inventory holding costs if Talbot orders using the EOQ​ quantity?

Answers

Answer:

$1,975 per year

Explanation:

The first step is to calculate Economic order quantity using the following formula:

Economic Order Quantity = √2DO / H  

Here

A is Annual Demand which is 12,000 Units.

O is Ordering Cost per order $650 per order.

H is Holding or Carrying Cost per unit per year is $30 per unit per year.

By putting values, we have:

Economic Order Quantity = √(2 * 12,000 * $650) / 30 = 131.66 units

Now annual inventory holding costs can be calculated using the following formula:

Inventory Holding Cost = Average Inventory * Holding Cost

Here,

Average Inventory = EOQ /2 = 131.66 / 2 = 66 units  

By putting values we have:

Annual Inventory Holding Cost = 66 * 20 = $1,975 per year

Journalize the July transactions.

Martin Johnson opened Seaside Cleaning Service on July 1, 2019. During July, the company completed the following transactions:
July 1 Owner Martin Johnson invested $39,870 cash and $7,545 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $2,500 cash and the balance on account.
3 Purchased cleaning supplies for $1,794 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $4,813 for cleaning services.
15 Received $1,650 from customers for future cleaning services.
18 Paid $1,200 of amount owed on truck.
20 Paid $698 for employee salaries.
21 Collected $3,632 from customers billed on July 12.
25 Billed customers $6,275 for cleaning services.
31 Paid gasoline for the month on the truck, $297.
31 Owner Martin Johnson withdrew $1,000 for personal use.
Adjustments:
July 31 Earned but unbilled fees at July 31 were $2,476.
Depreciation on truck for the month was $175.
Earned $450 of payment received on July 15.
One-twelfth of the insurance expired.
An inventory count shows $521 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $287.

Answers

Answer:

Transactions :

July 1

Cash $39,870 (debit)

Cleaning Equipment $2,500 (debit)

Capital $42,370 (credit)

July 1

Truck $10,500 (debit)

Cash $2,500 (credit)

Accounts Payable $8,000 (credit)

July 3

Cleaning Supplies $1,794 (debit)

Accounts Payable $1,794 (credit)

July 5

Prepaid Insurance $1,800  (debit)

Cash $1,800  (credit)

July 12

Trade Receivable $4,813 (debit)

Service Revenue $4,813 (credit)

July 15

Cash $1,650 (debit)

Deferred Revenue $1,650 (credit)

July 18

Accounts Payable $1,200  (debit)

Cash $1,200 (credit)

July 20

Cash $3,632 (debit)

Accounts Receivable $3,632 (credit)

July 25

Trade Receivables $6,275 (debit)

Service Revenue $6,275 (credit)

July 31

Utilities : Gasoline  $297 (debit)

Cash  $297 (credit)

July 31

Capital $1,000 (debit)

Cash $1,000 (credit)

Adjustments:

July 31

Cash $2,476 (debit)

Deferred Revenue $2,476 (credit)

July 31

Depreciation $175 (debit)

Accumulated Depreciation $175 (credit)

July 31

Deferred Revenue $450 (debit)

Revenue $450(credit)

July 31

Insurance Expense $150 (debit)

Insurance Prepaid $150 (credit)

July 31

Supplies Inventory $521 (debit)

Income statement $521 (credit)

July 31

Wages $287 (debit)

Wages Payable $287 (credit)

Explanation:

Journal entries have been made for both the transactions and adjustments that occurred during the period.

Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.

Journal entry worksheet
The company has 15 employees, who earn a total of $1,600 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2019, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020.
Transaction General Journal Debit Credit
The Office Supplies account started the year with a $3,500 balance. During 2019, the company purchased supplies for $14,455, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3,080.
Transaction General Journal Debit Credit
Record the adjusting entry related to the company's insurance.
Transaction General Journal Debit Credit

Answers

Explanation: BIG STONKS

Within the relevant range, the variable cost per unit: remains constant as activity changes. increases as activity increases. decreases as activity increases. can increase or decrease as the activity changes.

Answers

Answer:

remains constant as activity changes.

Explanation:

The Variable Cost per unit is the actual production cost that is incurred in order to produce each unit that is affected by changes in the company's output or activity level. Within the relevant range, the variable cost per unit remains constant as activity changes, even though the total dollar amount varies in accordance to the various changes in the company's activity, the variable cost will stay constant on a per unit basis.

In no case can "market" in the lower-of-cost-or-market rule be more than:_______.
a. estimated selling price in the ordinary course of business.
b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
c. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
d. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal and an allowance for an approximately normal profit margin.

Answers

Answer:

b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.

Explanation:

Note that the lower of cost market rule is explicitly encouraging businesses to record the lowest cost of inventory; for example using the original cost or its current market price, whichever is favourable.

Thus, the "market" must not be more than the estimated selling price in the ordinary course of business, with an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.

The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed: Group of answer choices manufacturing margin contribution margin differential cost differential revenue Flag this Question Question 21 pts Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $37 per pound and would require an additional cost of $9.25 per pound to produce. What is the differential cost of producing Product D

Answers

Answer:

a) The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed:

Differential Revenue

b) The Differential cost of producing Product D is the additional cost of $9.25 per pound.

Explanation:

a) Differential Revenue is the difference in sales revenue that results from two different courses of action.

b) The corporate finance institute defines Differential cost as "the difference between the cost of two alternative decisions."

Listed below are a few events and transactions of Kim Company. Year 1 Jan. 2 Purchased 95,000 shares of Grey Co. common stock for $501,000 cash. Grey has 285,000 shares of common stock outstanding, and its activities will be significantly influenced by Kim. Sept. 1 Grey declared and paid a cash dividend of $2.00 per share. Dec. 31 Grey announced that net income for the year is $500,400. Year 2 June 1 Grey declared and paid a cash dividend of $2.00 per share. Dec. 31 Grey announced that net income for the year is $722,900. Dec. 31 Kim sold 10,000 shares of Grey for $126,500 cash. Prepare journal entries to record the above transactions and events of Kim Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

Answers

Answer:

Year 1

Jan. 2

Investment in Grey $501,000 (debit)

Cash $501,000 (credit)

Sept. 1

Share of Profit of Associate : Dividend Received $190,000 (debit)

Dividend Declared $190,000  (credit)

Year 2

June 1

Share of Profit of Associate :  Dividend Received $190,000 (debit)

Dividend Declared $190,000  (credit)

Dec. 31

Cash $126,500 (debit)

Investment In Grey $126,500 (credit)

Explanation:

During the first year, Kim Company purchased 33% of stocks in Grey Co. This led to  Kim Company having significant influence over  Grey Co. Grey Co. is known as Associate Company.

The dividend paid by an Associate is Part of Share of profit from an associate and must be presented as such in the entity books.

During the second year, when Kim Company sells 10,000 shares of Grey Co, they lost part of Investment but still have significant influence (29%) in Grey Co.The Grey Co remains an Associate of Kim Company.

On October 1, Oriole Corporation’s stockholders’ equity is as follows.

Common stock, $7 par value $535,500
Paid-in capital in excess of par—common stock 30,000
Retained earnings 167,000
Total stockholders’ equity $732,500

On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.

Required:
a. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
b. Indicate the balances in the three stockholders? equity accounts after the stock dividend shares have been distributed.

Answers

Answer:

a. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.

1) $7 per stock2) $7 per stock

b. Indicate the balances in the three stockholders? equity accounts after the stock dividend shares have been distributed.

Common stock $589,050Paid-in capital in excess of par - common stock $83,550Retained earnings $625,400

Explanation:

since it is a "small" stock dividend, it will be carried out at market value and not at par value.

the total number of stocks = $535,500 / $7 par value = 76,500 stocks

total transaction = 76,500 stocks x $14 x 10% = $107,100

the journal entry should be:

Dr Retained earnings 107,000

    Cr Common stock 53,550

    Cr Paid in capital in excess of par value 53,550

total common stock account = $535,500 + $53,550 = $589,050 / 84,150 stocks = $7 per stock

Gasoline is considered a final good if it is sold by a a. gasoline station to a bus company that operates a bus route between San Francisco and Los Angeles. b. pipeline operator to a gasoline station in San Francisco. c. gasoline station to a motorist in Los Angeles. d. All of the above are correct.

Answers

Answer:

c. gasoline station to a motorist in Los Angeles.

Explanation:

A final good is a good that is used by the consumer to satisfy current wants and it is not used to produce another good.

Gasoline would be used by the fuel station in San Francisco to generate cash by selling it. So it is not a final good.

The bus company uses the fuel as an input needed to generate cash. It is not a final good to the bus company.

I hope my answer helps you

2 brothers, Joe and Bob get equal dollar amounts of securities as a gift. Joe immediately sells his securities and deposits the money to a bank account. On the other hand, Bob keeps his securities positions and holds them in a brokerage account. After 5 years, Joe has $10,000 in his bank account, while Bob has $30,000 in his brokerage account. The $20,000 difference between the account balances is explained by:

Answers

Answer:

Opportunity cost

Explanation:

The opportunity cost Bob's brother Joe $20,000. Remember, the term Opportunity cost refers to the cost (loss in this context) incurred when one forgoes an alternative best option–holding them in a brokerage account, in place for a less beneficial one.

Thus, Bob chose the best alternative over his brother.

"An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:"

Answers

Answer: A. Par

Explanation:

While US Government bonds are usually sold at auction which means a price different from Par, Federal Agency bonds operate much like Corporate Bonds in their selling procedure. They engage a group of Underwriters called a Selling group which can be made up of large banks and brokers.

These underwriters will then handle everything that have to do with the sale and sell it to the public. Like a Corporate listing, they get a commission from this.

Because of this direct sale by the Underwriter to the public, the Public is most likely to get the offering at Par.

The Dominican Republic is considering placing a room tax on Eco Hotels. The preliminary analysis requires them to calculate consumer and producer surplus before the tax. Below are the demand and supply equations for eco hotel rooms in the Dominican Republic.
Demand equation: Qd = 2500 - 5P
Supply equation: Qs = 1OP - 500
Calculate consumer surplus. Number
Calculate producer surplus.

Answers

Answer:

The consumer surplus is 225,000

The producer surplus is 112,500

Explanation:

According to the given data we have the following:

Demand equation: Qd = 2500 - 5P

Supply equation: Qs = 1OP - 500

Therefore, the equilibrium is at demand equal to the supply

2500-5P=10P-500

15P=3000

P=200

Q=10P-500=10*200-500=1500

The inverse demand function is

P=500-0.2Q

Therefore, CS=0.5*(Pmax -Pe)*Qe

=0.5*(500-200)*1500

=225,000

The consumer surplus is 225,000

Regarding PS, maximum price or y-intercept of the demand curve

Pe and Qe are equilibrium price and quantity  the inverse supply curve

P=50+0.1Q

PS=0.5*(Pe-Pl)Qe

Pl=y intercept of supply curve

PS=0.5*(200-50)*1500

=112,500

The producer surplus is 112,500

The Sky Blue Corporation has the following adjusted trial balance at December 31. Debit Credit Cash $ 1,340 Accounts Receivable 3,100 Prepaid Insurance 3,400 Notes Receivable (long-term) 4,100 Equipment 17,500 Accumulated Depreciation $ 4,800 Accounts Payable 6,520 Salaries and Wages Payable 1,550 Income Taxes Payable 4,000 Deferred Revenue 820 Common Stock 3,500 Retained Earnings 1,440 Dividends 410 Sales Revenue 51,930 Rent Revenue 410 Salaries and Wages Expense 23,800 Depreciation Expense 2,400 Utilities Expense 5,320 Insurance Expense 2,500 Rent Expense 7,100 Income Tax Expense 4,000 Total $ 74,970 $ 74,970 Required: Prepare an income statement for the year ended December 31. How much net income did the Sky Blue Corporation generate during the year

Answers

Answer:

Net Income that Sky Blue Corporation generated during the year   $ 7220

Explanation:

Sky Blue Corporation

Income Statement

For the year ended December 31

Sales Revenue  $51,930

Less Expenses:

Operating Expenses : $ 38,620

Rent Expense 7,100

Salaries and Wages Expense 23,800

Depreciation Expense 2,400

Utilities Expense 5,320

Operating Income : $ 13,310

Add Other Income : $ 410

Rent Revenue 410

Less Other Expenses : $ 6500

Insurance Expense 2,500  

Income Tax Expense 4,000

Net Income                $ 7220

We get the net income by subtracting the total expenses from the total revenues. This includes other income and other expenses.

A company produces a single product. Variable production costs are $13.50 per unit and variable selling and administrative expenses are $4.50 per unit. Fixed manufacturing overhead totals $51,000 and fixed selling and administration expenses total $55,000. Assuming a beginning inventory of zero, production of 5,500 units and sales of 4,350 units, the dollar value of the ending inventory under variable costing would be:

Answers

Answer:

$15,525

Explanation:

Calculation for ending inventory under variable costing

Using this formula

Units in ending inventory = Units in beginning inventory + Units produced −Units sold

Thus,

= 0 units + 5,500 units −4,350 units

= 1,150 units

Formula for Value of ending inventory under variable costing

= Unit in ending inventory × Variable production cost

= 1,150 units × $13.50 per unit

= $15,525

You have a portfolio that is invested 17 percent in Stock A, 38 percent in Stock B, and 45 percent in Stock C. The betas of the stocks are .62, 1.17, and 1.46, respectively. What is the beta of the portfolio

Answers

Answer:

The portfolio beta is 1.207

Explanation:

The portfolio beta is the weighted average of the individual stock betas that form up the portfolio. The weightage of each stock in the portfolio is calculated on the basis of investment in that stock as a proportion of total investment in the portfolio. The portfolio beta is calculated as follows,

Portfolio beta = Weight of Stock A * Beta of Stock A +  Weight of Stock B * Beta of Stock B + ... +  Weight of Stock N * Beta of Stock N

Portfolio beta = 0.17 * 0.62   +   0.38 * 1.17   +   0.45 * 1.46

Portfolio beta = 1.207

The Fine Point Company currently produces all of the components for its one product, an electric pencil sharpener. The unit cost of manufacturing the motor for this pencil sharpener is: Direct materials$1.75 Direct labor$1.65 Variable overhead$0.75 Fixed overhead$0.60 The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $3.60 per unit. The relevant cost of manufacturing the motor to be considered in reaching the decision is:

Answers

Answer:

$4.15 per unit

Explanation:

The computation of the relevant cost of manufacturing the motor is shown below:

Relevant cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit

= $1.75 + $1.65 + $0.75

= $4.15 per unit

For reaching the decision, we simply added the direct material per unit, direct labor per unit and variable overhead per unit so that the correct answer could arrive

Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment

Answers

Answer and Explanation:

The computation is shown below:

But before reaching any decision, first we have to find out the ROI for new investment which is

ROI of new investment = net operating income ÷ investment

= $12,950 ÷ $70,000

=  18.50%

Now

If investment taken place, then overall ROI is

= Total net operating income ÷ Total average operating assets

= ($380,000 + $12,950) ÷ ($2,000,000 + $70,000)

= 18.98%

As we can see that the overall ROI i.e 18.98% is less than the currently ROI i.e 20% so he should not recommend ROI as it is shows fallen

Arbor Systems and Gencore stocks both have a volatility of 33%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is ​(a​) +1.00​, ​(b​) 0.50​, ​(c​) 0.00​, ​(d​) −0.50​, and ​(e​) −1.00.



In which of the cases is the volatility lower than that of the original​ stocks?

Answers

Answer:

In case of b, c, d ,e volatility is less than that of original stock

Explanation:

The formula to compute the volatility of a portfolio

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

Here,

The standard deviation of the first stock is σ₁

The standard deviation of the second stock is σ₂

The weight of the first stock W₁

The weight of the second stock W₂

The correlation between the stock c

a) If the correlation between the stock is +1

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

[tex]=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times1} \\\\=0.33[/tex]

Hence, the volatility of the portfolio is 0.33 0r 33%

b) If the correlation between the stock is 0.50

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

[tex]=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.5} \\\\=0.29[/tex]

Hence, the volatility of the portfolio is 0.29 0r 29%

c) If the correlation between the stock is 0.00

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

[tex]=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.0} \\\\=0.23[/tex]

Hence, the volatility of the portfolio is 0.23 0r 23%

d) If the correlation between the stock is -0.50

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

[tex]=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-0.5} \\\\=0.17[/tex]

Hence, the volatility of the portfolio is 0.17 or 17%

e) If the correlation between the stock is -1

[tex]=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}[/tex]

[tex]=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-1} \\\\=0[/tex]

Hence, the volatility of the portfolio is 0

In case of b, c, d ,e volatility is less than that of original stock

On January​ 1, 2018​, White Corporation signed a $ 120,000​, four​-year, 2​% note. The loan required White to make payments annually on December 31 of $ 30,000 principal plus interest.

Required:
a. Journalize the issuance of the note on January 1, 2018
b. Journalize the first payment on December 31, 2018

Answers

Answer:

Dr cash                 $120,000

Cr Notes payable                         $120,000

Dr interest expense    $2,400

Dr notes payable       $30,000

Cr cash                                             $32,400

Explanation:

The issuance of the notes payable of $120,000 means that White Corporation's cash inflow has increased by $120,000 while its corresponding loan obligation has also gone up by the same amount.

On 31 December 2018,White Corporation would need to repay $30,000 principal plus interest of $2,400 ($120,000*2%).The interest payment is debited to interest expense while $30,000 repayment is debited to notes payable and cash is credited with the total of $32,400

Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.

Answers

Answer and Explanation:

The journal entry is shown below;

Bond payable $1,000,000

Loss on retirement of bond $20,000

           To Discount on bond $10,000

           To Cash $1,010,000

(Being the loss on retirement of bond is recorded)

For recording this we debited the bond payable and loss as it decrease the current liabilities and it increased the losses at the same time it decreased the discount and decreased the cash so the respective accounts are credited

Moonlight Bay Inn is incorporated on January 2, 2014, by its three owners, each of whom contributes $20,000 in cash inexchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month ofJanuary:
January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000.
January 3: A two-year, 12%, $30,000 promissory note was signed at the Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019.
January 4: New furniture for the inn is purchased at a cost of $15,000 incash. The furniture has an estimated useful life of 10 years and no salvage value.
January 5: A 24-month property insurance policy is purchased for $6,000 in cash.
January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January.
January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days.
January 15: Wages of $4,230 for the first half of the month are paid in cash.
January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February.
January 31: Cash receiptsfrom rentals of rooms for the month amount to $8,300.
January 31: Cash receiptsfrom operation of the restaurant for the month amount to $6,600.
January 31:. Each stockholder is paid $200 in cash dividends.
Required 1. Prepare journal entries to record each of the preceding transactions. Don’t forget the stock.
2. Post each of the journal entries to T accounts.
3. Prepare adjusting journal entries for each of the following transactions as of January 31.
a. Depreciation of the house
b. Depreciation of the furniture
c. Interest on the promissory note
d. Recognition of the expired portion of the insurance
e. Recognition of the earned portion of the guests’ deposit
f. Wages earned during the second half of January amount to $520 and will be paid on Feb. 3
g. Cleaning supplies on hand on January 31 amount to $230
h. A utility bill is received amounts to $740 and is payable by Feb. 5
i. Income taxes are to be accrued at a rate of 30% of income before taxes
4. Post each adjusting journal entry to T accounts
5. Prepare the following financial statements: a. Income statement for month ended January 31 b. Statement of retained earnings for the month ended January 31 c. Balance sheet at January 31
6. What are your reactions to Moonlight’s first month of operations? Is the bank comfortable with the loan it made?

Answers

Answer:

1. Prepare journal entries to record each of the preceding transactions.

January 2, 2014, Moonlight Bay Inn is incorporated

Dr Cash 60,000

    Cr Common stock 60,000

January 2, 2014, a Victorian Inn is purchased

Dr Land 15,000

Dr Building 35,000

    Cr Cash 50,000

January 3, 2014, promissory note signed at bank

Dr Cash 30,000

    Cr Notes payable 30,000

January 4, 2014, furniture is purchased

Dr Furniture 15,000

    Cr Cash 15,000

January 5, 2014, insurance policy is purchased

Dr prepaid insurance 6,000

    Cr cash 6,000

January 6, 2014, advertisement is placed in the local newspaper

Dr Advertising expense 450

    Cr Cash 450

January 7, 2014, cleaning supplies purchased on account

Dr Cleaning supplies 950

    Cr Accounts payable 950

January 15, 2014, wages for first 15 days are paid

Dr Wages expense 4,230

    Cr Cash 4,230  

January 16, 2014, check received form customer

Dr Cash 980

    Cr Unearned revenue 980

January 31, 2014, cash receipts from room rentals are accounted for

Dr Cash 8,300

    Cr Rental revenue 8,300

January 31, 2014, cash receipts from restaurant are accounted for

Dr Cash 6,600

    Cr Restaurant revenue 6,600

January 31, 2014, dividends are distributed

Dr Retained earnings 600

    Cr Dividends payable 600

Dr Dividends payable 600  

    Cr Cash 600

2. Post each of the journal entries to T accounts.

I used an excel spreadsheet to post the T accounts (attached file).    

3. Prepare adjusting journal entries for each of the following transactions as of January 31.

a. Depreciation of the house

depreciation expense per month = $30,000 x 1/25 x 1/12 = $116.67 ≈ $117

Dr Depreciation expense 117

    Cr Accumulated depreciation - building 117

b. Depreciation of the furniture

depreciation expense per month = $15,000 x 1/10 x 1/12 = $125

Dr Depreciation expense 125

    Cr Accumulated depreciation - furniture 125

c. Interest on the promissory note

interest expense per month = $30,000 x 12% x 28/365 = $276.16 ≈ $276

Dr Interest expense 276

    Cr Interest payable 276

d. Recognition of the expired portion of the insurance

insurance per month = $6,000 /24 = $250

Dr insurance expense 250

    Cr Prepaid insurance 250

e. Recognition of the earned portion of the guests’ deposit

Dr Unearned revenue 490

    Cr Rental revenue 490

f. Wages earned during the second half of January amount to $520 and will be paid on Feb. 3

Dr Wages expense 520

    Cr Wages payable 520

g. Cleaning supplies on hand on January 31 amount to $230

cleaning supplies expense = $950 - $230 = $720

Dr Cleaning supplies expense 720

    Cr Cleaning supplies 720

h. A utility bill is received amounts to $740 and is payable by Feb. 5

Dr Utilities expense 740

    Cr Accounts payable 740

i. Income taxes are to be accrued at a rate of 30% of income before taxes

Dr Income taxes expense

    Cr income taxes payable

4. Post each adjusting journal entry to T accounts

I used an excel spreadsheet to post the T accounts (attached file).    

5. Prepare the following financial statements: a. Income statement for month ended January 31

Income Statement

Rental revenue                       $8,790              

Restaurant revenue               $6,600

Wages expense                    ($4,750)

Advertising expense               ($450)

Depreciation expense            ($242)

Insurance expense                 ($250)

Cleaning supplies expense    ($720)

Utilities expense                      ($740)

EBIT                                        $8,238

Interest expense                     ($276)

Net income before taxes      $7,962

Income taxes                        ($2,389)

Net income after taxes         $5,573

b. Statement of retained earnings for the month ended January 31

Retained earnings at the beginning of the period:               $0

Net income:                                                                       $5,573

Dividends distributed:                                                      ($600)

Retained earnings at the end of the period                    $4,973

c. Balance sheet at January 31

Assets:

Cash $29,600

Prepaid insurance $5,750

Cleaning supplies $230

Furniture $14,875

Land $15,000

Building $34,883

Total Assets: $100,338

Liabilities and Stockholders' Equity:

Accounts payable $1,690

Unearned revenue $490

Wages payable $520

Interest payable $276

Income tax payable $2,389

Notes payable $30,000

Common stock $60,000

Retained earnings $4,973

Total Liabilities and Stockholders' Equity: $100,338

6. What are your reactions to Moonlight’s first month of operations? Is the bank comfortable with the loan it made?

Yes, the bank should be OK with the loan since the Inn was able to make a profit during the first month of operations (something very uncommon).

A financial advisor offers you two investment opportunities. Both offer a rate of return of 11%. Investment A promises to pay you $450 in 1 year, $650 in 2 years, and $850 in 3 years. Investment B promises to pay you $850 in 1 year, $x in 2 years, and $450 in 3 years. What must x be to make you indifferent between Investing A and B

Answers

Answer:

The value of x is 566.36

Explanation:

The value of x should be such that the present value of both Investments is the same when discounted at a rate of 11%. To calculate the present value, we use the following formula,

Present Value = CF 1 / (1+r)  +  CF 2 / (1+r)^2 + ... + CFn / (1+r)^n

Where,

CF represents Cash flowr represents the discount rate

So, we equate both the present value of Investment A and B to calculate the value of x.

Present Value of A = Present Value of B

450/(1.11)  +  650/(1.11)^2  +  850/(1.11)^3 = 850/(1.11)  +  x/(1.11)^2  +  450/(1.11)^3

1554.472661  =  765.7657658  +  x/(1.11)^2  +  329.0361216

1554.472661  -  765.7657658  -  329.0361216  =  x/(1.11)^2

459.6707736 * (1.11)^2  =  x

x = 566.3603602 rounded off to 566.36

Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises.TIGER ENTERPRISESIncome StatementFor the Year Ended December 31, 2018($ in thousands)Sales revenue $ 15,000 Operating expenses: Cost of goods sold $ 5,000 Depreciation 400 Insurance 900 Administrative and other 3,400 Total operating expenses 9,700 Income before income taxes 5,300 Income tax expense 2,120 Net income $ 3,180 Balance Sheet Information ($ in thousands) Dec. 31,2018 Dec. 31, 2017Assets: Cash $ 620 $ 360 Accounts receivable 830 990 Inventory 810 760 Prepaid insurance 130 35 Plant and equipment 3,200 2,600 Less: Accumulated depreciation (1,160 ) (760 ) Total assets $ 4,430 $ 3,985 Liabilities and Shareholders' Equity: Accounts payable $ 380 $ 520 Payables for administrative and other expenses 380 560 Income taxes payable 360 310 Note payable (due 12/31/2019) 1,380 950 Common stock 1,100 960 Retained earnings 830 685 Total liabilities and shareholders' equity $ 4,430 $ 3,985 Required:Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Net Income                  3,180

Non-monetary terms:

Depreciation expense     400

Adjusted Income          3,580

Change in Working Capital:

Decrease in A/R          160

Increase in Inv             (50)

Increase in Prepaid      (95)

Increase Tax /P             50

Decrease in A/P         (140)

Decrease in Other /P (180)        

Change In Working Capital     (255)

Cash-flow From Operating      3,325

Investing

Purchase of Equipment  (600)

Financing

Note payable                               430

From Issuance of Common Stock 140

Dividends Paid:                        (3,035)

Cash used for Financing           (2,465)

Beginning Cash        360

Cash Flow                 260

Ending Cash              620

Explanation:

We first remove the non.monetary concepts from the net income.

Then we adjust for the change in working capital which are the increase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liability increase (delay of the payment)

Dividends Paid Calculation:

Beginning R/E 685 + 3,180 Income - Ending R/E  830 = 3,035

Quisco Systems has 6.6 billion shares outstanding and a share price of $18.41. Quisco is considering developing a new networking product in house at a cost of $498 million.​ Alternatively, Quisco can acquire a firm that already has the technology for $913 million worth​ (at the current​ price) of Quisco stock. Suppose that absent the expense of the new​ technology, Quisco will have EPS of $0.74.
A. Suppose Quisco develops the product in house. What impact would the development cost have on Quisco’s EPS. Assume all costs are are incurred this year.and are treated as an R&D expense. Quisco’s tax rate is35%, and the number of shares outstanding is unchanged.
B. Suppose Quisco does not developthe product in house but instead acquire the technology. What effect would the acquisition have on Quisco’s EPS thisyear?
C. Which method of acquiring the technology has a smaller impact on earning? Is this method cheaper?Explain.

Answers

Answer:

A) EPS will decrease by $0.05 to $0.69

B) EPS will decrease by $0.01 to $0.73

C) The impact on EPS is smaller if the company is acquired. This doesn't mean that it is cheaper to do it that way, but since the EPS is very low, any significant increase in costs will result in steep reduction of EPS. The cheapest way would be to issue new stocks to cover the expenses of developing the new technology.

Explanation:

6.6 billion shares outstanding and a share price of $18.41, current EPS $0.74, total current earnings = $4,884 million

in house development = $498 million will reduce net earnings by $498 x 65% = $323.7 million or $0.05 per share

EPS = $0.74 - $0.05 = $0.69

if Quisco decides to acquire the company, then total shares will increase by $913,000,000 / $18.41 = 49,592,613 shares

total outstanding shares = 6,600,000,000 + 49,592,613 = 6,649,592,613 shares

EPS = $4,884,000,000 / 6,649,592,613 = $0.73

Other Questions
A compound has an empirical formula of CHN. What is the molecular formula, if its molar mass is 135.13 g/mol? (C=12.01 amu, H=1.008 amu, N= 14.01) The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,063. A total of 33 direct labor-hours and 234 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $24 per machine-hour. The total cost for the job on its job cost sheet would be: WILL GIVE BRAINLIEST!! Need help on 1, 3, 9, and 10! Word bank:PagarOrganizarRecogerBuscarSacarSecarsePescar The journey across the atlantic ocean to transport Africa slaves to the Americas was called. The The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 3% chance of incurring 350 dollar damage, 5% chance of incurring 250 dollar damage, and 12% chance of incurring 100 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value A roller coaster car may be approximated by a block of mass m. Thecar, which starts from rest, is released at a height h above the ground and slides along a frictionless track. The car encounters a loop of radius R. Assume that the initial height h is great enough so that the car never losses contact with the track.Required:a. Find an expression for the kinetic energy of the car at the top of the loop. Express the kinetic energy in terms of m, g, h, and R. b. Find the minimum initial height h at which the car can be released that still allows the car to stay in contact with the track at the top of the loop. which equations are true identities A tank with a constant volume of 3.72 m3 contains 22.1 moles of a monatomic ideal gas. The gas is initially at a temperature of 300 K. An electric heater is used to transfer 4.5 104 J of energy into the gas. It may help you to recall that CV = 12.47 J/K/mole for a monatomic ideal gas, and that the number of gas molecules is equal to Avagadros number (6.022 1023) times the number of moles of the gas.a) What is the temperature of the gas after the energy is added?___Kb) What is the change in pressure of the gas?____Pac) How much work was done by the gas during this process?____J Definitions and vocabulary words can never be part of response questions.Please select the best answer from the choices providedTF An unexpected result of British salutary neglect was thatO the colonies became richer than Britain wanted.O the colonies' dependence on British rule grew.O the colonies developed a separate American identity.O the colonies began to develop self-government. Of the 100 students in the science club, 65 take mathematics, 43 take physics and 10 students take both mathematics and physics. How many science club students take neither mathematics nor physics? URGENT! What is the factored from of y2+6y-16 what is the style in the poem combing reduce to simplest form -1/3-(-3/5) What is a example of accretion? We are planning on introducing a new internet device that should drastically reduce the amount of viruses on personal computers. We think the price should be $39.99, but are not sure on the percentage of people that would buy it. We do some research and find the following information; Studies from the 1930s indicate that percentage should be between 30% and 40% Similar products were launched recently at a price of $4,000 and nobody bought it. A nationwide poll on this type of product and price was run earlier this year, with percentages running from 75% to 80%. We are going to conduct an additional focus group before we launch the product. What should the sample size be if we want a 95% CI to be within 5% of the actual value? 2 PointsClick to read "Forgetfulness" by Billy Collins. Then answer the question.Which element characterizes the structure of the poem?A. There are six stanzas of equal length.B. There are 24 lines with a repeating pattern of five, seven, and fivesyllablesC. There is no clear pattern to the length of the stanzas.D. There are seven repeating rhymes.SUBMIT< PREVIOUS A painter charges 15.40 per hour, plus an additional for the supplies. If he made 188.73 on a job where he worked 7 hours, how much did the supplies cost Angela shared a cab with her friends. When they arrived at their destination, they evenly divided the $ j $jdollar sign, j fare among the 3 33 of them. Angela also paid a $ 5 $5dollar sign, 5 tip. Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $1,800,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $900,000 of goodwill. Should Robinson Company record this goodwill?