Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. (a) Notes payable select an option (b) Advertising expense select an option (c) Common stock select an option (d) Cash select an option (e) Service revenue
Answer:
income statement
Service revenue
Advertising expense
balance sheet
Notes payable
Common stock
Cash
retained earnings statement.
Nill
Explanation:
The Income Statement records Incomes and Expenses. It is used to calculate the Profit earned during the reporting period.
The Balance sheet records Assets, Liabilities and Owners Equity. The Balance Sheet uses Accounting equation : Assets = Liabilities + Owners Equity.
The Retained Earnings records the Opening and Closing Retained Earnings Balances, Profit for the Year and Dividends Paid. It is used to determine the Balance at the end of the year in Profits attributable to Owners
A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,025. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Duration years
Answer:
9.52 years
Explanation:
Calculation for the modified duration of this bond
First step is to calculate the Percentage decrease in Price of Bond
Percentage decrease in Price of Bond =($1,025-$1,050)/$1,050
Percentage decrease in Price of Bond=-2.3810%
Second step is to calculate the Percentage change in price
Using this formula
Percentage change in price =-Modified Duration*Change in YTM
Let plug in the formula
-2.3810% =-Modified Duration*0.25%
Modified Duration =2.3810%/0.25%
Modified Duration =9.52 years
Therefore the modified duration of this bond is 9.52 years
3. Define opportunity cost. Give an example of a personal decision you made within the past year. What explicit costs were involved
Answer:
The interpretation including its question would be characterized underneath in the explanatory paragraph.
Explanation:
Opportunity costs are economic downsides that authority, an investment company, or perhaps a corporate mess up because once making a choice one alternate solution more than another. This same judgment I decided to make since then has been to attend college rather than just continuing to operate at the local grocery store. Explicitly associated costs throughout someone's intention to pursue are school fees, sleeping expenditures, journals, cars something which I bought to pursue higher education.ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. The interest rate must be ________ for the firm to undertake the project.
Answer:
B) no more than 9%
Explanation:
The computation of the rate of interest is given below:
Given that
Initial Cost = $500
Yearly Yield = $200
Based on the above information
Let us assume the rate of interest be 10%
So,
PV at 10% is
= - $500 + $200 ( P/A , 10% , 3 )
= -$500 + $200 ( 2.487 )
= - 500 + 497.4
= -2.6
As we can see that the at 10% there is a negative value and if we take more than 10% so again it would be the negative value
Now
Let us assume the rate of interest be 10%
So,
PV at 8% is
= - $500 + $200 ( P/A , 8% , 3 )
= -$500 + $200 ( 2.577 )
= -$500 + $515.4
= $15.4
So the rate of interest would not be more than 9%
Robert makes $10 an hour. He is paid double time for any overtime over
40 hours. If he worked a total of 46 1/2 hours last week, what is his
overtime pay? *
O $400
$465
$130
$65
A car dealership can offer a $36,000 car under a special promotion with four years financing at 0%, or can offer a discount off the price of the vehicle if the buyer finances the sale at 0.5% monthly over the four years. What discount off the purchase price results in the buyer making the identical monthly payment under either purchase option
Answer:
$4,064.76
Explanation:
According to the scenario, computation of the given data are as follows,
If car financing at 0%, then
Car price = $36,000
Time period = 48 months
So, Monthly payment = $36,000 ÷ 48 = $750
If financing at regular rate then,
Monthly interest rate = 0.5%
Time period = 48 months
Monthly payment , if we consider the same payment = $750
By using excel formula, [=PV(BY8,BY9,-BY10)]
Discount = $4,064.76
What is Accounting and bookkeeping
Answer:
Book keppening is the recording of finance transaction, and is part of the process of accounting in business
The process or work of keeping financial record is called accounting
Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1.
Equipment $47,040 Buildings $600,000
Land 510,000 Capital stock 162,000
Accounts payable 65,760 Cash 37,680
Accounts receivable 12,720 Furnishings 70,440
Salaries payable 40,200 Snowmobiles 18,480
Interest payable 14,400 Notes payable 744,000
Retained earnings ?
Required:
a. Prepare a balance sheet at December 31, 2011.
b. Assume that no payment is due on the notes payable until 2013. Does this balance sheet indicate that the company is in a strong financial position as of December 31, 2011? Explain briefly.
Answer:
Rocky Mountain Lodge
a) Balance Sheet
At December 31, Year 1:
Assets:
Current Assets:
Cash 37,680
Accounts receivable 12,720
Current assets $50,400
Long-term Assets:
Furnishings 70,440
Snowmobiles 18,480
Equipment 47,040
Buildings 600,000
Land 510,000
Long-term assets 1,245,960
Total $1,296,360
Liabilities and Equity:
Liabilities
Current Liabilities:
Accounts payable 65,760
Salaries payable 40,200
Interest payable 14,400
Current liabilities $120,360
Long-term liabilities
Notes payable 744,000
Total liabilities $864,360
Equity:
Capital stock 162,000
Retained earnings 270,000
Total equity 432,000
Total $1,296,360
b) The company is not in a strong financial position as of December 31, 2011.
c) Its current assets cannot settle its current liabilities. There is doubt if the company will be able to settle the long-term notes payable at the level of its current operations because the basis does not exist. It will still require funds to finance operations, as most of the investments are made in long-term assets (especially land and building).
Explanation:
a) Data and Calculations:
Cash 37,680
Accounts receivable 12,720
Furnishings 70,440
Snowmobiles 18,480
Equipment 47,040
Buildings 600,000
Land 510,000
Total $1,296,360
Accounts payable 65,760
Salaries payable 40,200
Interest payable 14,400
Notes payable 744,000
Capital stock 162,000
Retained earnings 270,000
Total $1,296,360
he financial statements of Walgreen Co. reported the following information (in millions): Year 2 Year 1 Cost of sales $51,098 $51,291 Inventories, net 6,852 7,036 The average inventory days outstanding in year 2 is:
Answer:
50.1
Explanation:
The average inventory days outstanding in year 2
= Net / Cost of sales × 365
Given that;
Net = 7,036
Cost of sales = 51,291
Average inventory days outstanding in year 2
= 7,036 / 51,291
= 50.1
Supervisors should not bother others when planning for the short-term because it will only pull employees away from what they are paid to do. Group of answer choices True False
Answer: False
Explanation:
In order for an organization to achieve its objectives and grow, the role played by everyone involved with the organization is crucial. The employers, supervisors, employees and every other person have a role to play.
Even during short term planning, it is vital for the supervisors to carry the employees along and bother them about happenings. This is vital so that they'll know what is expected from them and also make them be aware that they're part of the organization.
Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of €2,000,000 this year, while the Greek subsidiary generated a net inflow of €1,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05. Group of answer choices $525,000 outflow $3,675,000 outflow $210,000 outflow $525,000 inflow
Answer:
$525,000 outflow
Explanation:
The German subsidiary had a net ouflow of €2,000,000
The Greek subsidiary had a net inflow of €1,500,000.
In other words, the U.S-based multinational would record an outflow because the net ouflow shown above is more than the net inflow.
Net ouflow=net ouflow-net inflow
Net ouflow= €2,000,000-€1,500,000.
net ouflow=€500,000.
Lastly, we convert the ouflow into dollars using the below exchange rate
€1=$1.05
€500,000 in dollars=€500,000*$1.05/1€
€500,000 in dollars=$525,000
On May 20, White Repan Service extended an offer of $108,000 for land that had been priced for sale at $140,000 On May 30 White Repair Service accepted the sellers counteroffer
of $115.000. On June 20. the land was assessed at a value of $95 000 for property tax purposes On July 4 White Repair Service was offered S150.000 for the land by a national retail
chain At what value should the land be recorded in White Repair Service's records?
Answer:
$115.000.
Explanation:
As per the guidelines of the generally accepted accounting principles, assets should be recorded at their acquisition price. The value to be recorded is the price paid for the asset.
For White Repan Service, the amount they paid for the land was the counteroffer from the seller. White Repan Service paid $105,000 for the land. The value to be recorded should be $105,000.
You should change your voicemail message if you are out of the office.
True or false
Answer:
true
Explanation:
i just answered the question
What is the percentage of the misstatement in (a) to the reported income of $1,073 million? Round to one decimal place.
Answer: 51.5%
Explanation:
Accrued expenses are to be included in the income statement because they show expenses that have not been paid but belong to the current period.
If accrued expenses were not included in the income calculation then the income is overstated because expenses reduce income.
Income is overstated by the accrued expenses amount which is $553 million
The percentage of this to the reported income is:
= 553 / 1,073 * 100
= 51.5%
Exercise 1-7A Prepare a statement of stockholders' equity (LO1-3) At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $7,400. During the year, Buffalo reports net income of $7,700 and pays dividends of $2,400. In addition, Buffalo issues additional common stock for $7,200. Required: Prepare the statement of stockholders' equity at the end of the year (December 31).
Answer:
See below
Explanation:
Statement of stockholder's equity at the end of the year 31, December.
•Retained earning
Opening balance
$7,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
------------
End of year balance
$12,700
•Common stock
Opening balance
[$12,000 + $7,400]
$19,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
$7,200
End of year balance
$31,900
= $31,900 - $12,700
= $19,200
Southern Markets has sales of $78,400, net income of $2,400, costs of goods sold of $43,100, and depreciation of $6,800. What is the common-size statement value of EBIT?
Answer:
36.35%
Explanation:
According to the scenario, computation of the given data are as follows,
Sales = $78,400
Net income = $2,400
Cost of goods sodl = $43,100
Depreciation = $6,800
So, we can calculate the EBIT value by using following formula:
= EBIT ÷ Sales
= ($78,400 - $43,100 - $6,800) ÷ ($78,400)
= $28,500 ÷ $78,400
= 36.35%
Hence, the common-size statement value of EBIT is 36.35%
Kurt Simmons has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front along the street. Damage to the parked car was $5,400 and damage to the store was $12,650. What amount will the insurance company pay for damages
Answer:
$18,050
Explanation:
Calculation for What amount will the insurance company pay for damages
Damage to the parked car $5,400
Add damage to the store $12,650
Total damages $18,050
Therefore the amount that the insurance company will pay for damages is $18,050
If enterprise systems do much of the traditional work of recording transactions and processing journal entries and other accounting information, what role is left for the accountant to perform?
Answer:
If enterprise systems do much of the traditional work of recording transactions and processing journal entries and other accounting information,
the role that is left for the accountant to perform is to analyze the accounting information and provide interpretations to guide management's actions.
Explanation:
This is an evolving role that accountants must fulfill as Information Technology frees up their time to concentrate on less routine accounting tasks. They should now be focused on becoming trusted and valued advisors to their organizations by helping them to undertake strategic planning. They can achieve this as they devote more of their time to carry out an in-depth analysis of the accounting information being produced through technological automation and to provide correct interpretation of the analyzed data.
An organization’s _____ is its general purpose or reason for existence
Answer:
cells?
Explanation:
You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate is 8%, you earn an economic profit of
Answer:
-$1,500
Explanation:
Calculation for the economic profit earn
Using this formula
Economic profit =Investment amount ×(Return on investment-Current interest rate)
Let plug in the formula
Economic profit =$50,000×(0.05 - 0.08)
Economic profit =$50,000×(-0.03)
Economic profit = -$1,500
Therefore you earn an economic profit of -$1,500
Suppose that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your client chooses to invest 70% of a portfolio in your fund and 30% in the T-bills. Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the proportion y
Answer:
Proportion y = 80%
Explanation:
E(rc) - r(f) = y[E(rp) - r(f)]. Where E(rc) - r(f) is Risk premium of clients overall portfolio and y[E(rp) - r(f)] is Risk premium of clients risky portfolio
0.15 - 0.07 = y[0.17 - 0.07]
0.08 = y(0.10)
y = 0.08/0.10
y = 0.80
y = 80%
So, the proportion of risky portfolio(y) is 80%. So, to achieve overall return of 15% on portfolio, investors needs to invest 80% investment in risky portfolio.
A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is called:
Answer:
Product development
Explanation:
A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is called product development.
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
_____ is a form of personal selling that requires that salespeople earn the confidence of their customers and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.
Answer:
Trust-based relationship selling
Explanation:
Salespeople can be defined as a group of people or individuals who are saddled with the responsibility of selling goods and services to customers, in order to meet their needs or wants.
Trust-based relationship selling is a form of personal selling that requires that salespeople earn the confidence of their customers and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.
Trust-based relationship selling is developed through personal selling and personalization because they deal with gathering information about a specific customer's choice such as taste, requirements, product preferences, shopping styles or patterns in order to be able to serve him or her better, through the provision of goods and services that meets their needs.
General Motors, the manufacturing giant's, largest supplier is: a. a legal firm b. a parts supplier c. GMAC Financing d. a trucking company e. Blue Cross-Blue Shield Insurance
Answer: Blue Cross-Blue Shield Insurance
Explanation:
Blue Cross Blue Shield covers insurance services, preventive care and also hospitalization.
General Motors, the manufacturing giant's, largest supplier is Blue Cross-Blue Shield Insurance. Therefore, tye correct option is E.
Drag each tile to the correct box.
Create the sequence showing the procedure followed by the accountant to record the company’s transactions.
example answer: ACEBD or CDBAE
Answer:
Match the invoice with the PO.
Record the transaction in the system.
Post the transaction to a ledger
Generate unadjusted Trial balance
Prepare adjusted Trial Balance.
Issue Financial statements
Closing entries
Post closing Trial balance.
Explanation:
The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.
how many square meters of wall papers are needed to cover a wall 8m long and 3m high
24 square metre of wallpaper is needed
Explanation:
you can do this by length into breadth 8 metre into 3 metre
Answer:
24 square metres of wall papers are needed to cover a wall of 8m long and 3m high.
Ally wishes to leave a provision in her will that $11,748 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 4%
Answer:
$293,700
Explanation:
The computation of the amount provided is shown below:
= Annual target ÷ Rate of Interest
= $11,748 ÷ 0.04
= $293,700
By dividing the annual target from the rate of interest we can determine the investment that should be provided for this given perpetuity
Use the following data to determine the total dollar amount of assets to be
classified as property, plant, and equipment.
Koonce Office Supplies
Balance Sheet
December 31, 2014
Accounts payable
Salaries and wages payable
Mortgage payable
Total liabilities
$ 140,000
20,000
160,000
$320,000
Cash
$ 130,000
Accounts receivable
100,000
Inventory
110,000
Prepaid insurance
60,000
Stock investments
170,000
Land
180,000
Buildings
$210,000
Less: Accumulated
depreciation (40,000.) 170,000
Trademarks
140,000
Total assets
$1,060,000
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and
stockholders' equity
$240,000
500,000
$740.000
$1,060,000
Answer:
=$350,000
Explanation:
Property, plant, and equipment are the tangible long-term fixed assets of a company. The total of PPE is the sum of all fixed long term assets minus accumulated depreciation.
There are fixed assets hence will appear on the asset side of the balance sheet. For Koonce Office Supplies, PPE will include
Land : $180,000
Buildings: $210,000
Total = $180,000 + $210,000
Total = $390,000
less accumulated depreciation
=$390,000 -$40,000
=$350,000
A student has a job that leaves her with $300 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% loan whose terms are $300 per month for 48 months at 9% nominal annual interest. What is the maximum car purchase price that she can afford with her loan
Answer:
$12,055.44
Explanation:
The computation of the maximum car purchase price that can afford the loan is as follows:
But before that following calculations must be done:
The Monthly interest rate is
= 9% ÷ 12
= 0.75%
The Maximum price ($) is
= $300 × PVIFA(0.75%, 48)
= $300 × 40.1848
= $12,055.44
You work for a company that manufactures electric lawn mowers. The mowers work when the user plugs an extension cord into the outlet and into the machine. In order to start the machine, the user must pull a lever and hold it while pushing a button. You believe that your mower is extremely safe. It contains several warnings about using it only on grass, that it is not to be used to shred tree branches or other wood products, and that it is not to be used without the bag attachment for catching the grass that is thrown out the back. A customer sues your company after being hurt when he used the electric lawn mower during a rainstorm. Discuss whether or not your company should have included a warning label to address use of the electric lawn mower in the rain.
Answer: See explanation
Explanation:
Yes. I believe that my company should have included a warning label to address use of the electric lawn mower in the rain.
Since the warning wasn't put there, the customers will believe it is safe to use in the rain that which was exactly what happened in this case. It is the right of the manufacturer to make sure that it's product are safe to use.
