Answer:
True
Explanation:
The answer is true
Answer:
The answer is true because
Explanation:
One doesn't just start up business for the gains and benefits, yes we get profits but we buy and sell goods for the betterment of our country or society.
b. Also to help someone move ahead or go to the next level in life.
I hope this has helped you.
A "trade secret" Group of answer choices is legally equivalent to a patent or copyright. need not be treated confidentially by the company in order to be protected. can be almost any information not generally known if it is valuable to its possessor and treated confidentially. is a narrow, precise concept that the law defines in great detail.
Answer:
can be almost any information not generally known if it is valuable to its possessor and treated confidentially
Explanation:
Trade secret is any information that is not known by the public and it gives the firm an edge over its competitors and gives the firm that has the secret economic benefits.
There is an active effort to keep trade secret confidential
What is considered as a trade secret differs by region.
An example of a trade secret is a secret recipe used in making a pie. No one knows this recipe apart from the owner. This recipe gives the pie made a distinct taste that attract customers
Use the following information to calculate the interest rate on an eight year bond just issued by Becher inc. show work
inflation: next two years = 2.5%, year three and beyond = 4.5%
Pure rate= 2.0%
Maturity risk premium= zero for a 1 year maturity, increasing by .1% each year thereafter
Default risk premium= 1.5%
Liquidity risk premium = 0.0% for treasuries; 0.5% for corporate bonds
a. 7.7%
b. 8.2%
c. 8.7%
d. 9.2%
e. 9.4%
Answer:
c. 8.7%
Explanation:
Inflation for the next year is 2.5% and year 3 and beyond is 4.5%
Pure rate is 2.0%
Maturity Risk premium (MRP) is 0 for a 1-year maturity and increasing by 0.1% each year
Default Risk Premium (DRP) is 1.5%
Liquidity Risk Premium(LRP) is 0.0% for treasuries, 0.5% for Corporate bond
Interest rate = Pure rate + Inflation + LRP + MRP + DRP
= 2 + Inflation + 0.5 + (0.1*7) + 1.5%
= 2 + {(2 years * 2.5) + (6 years * 4.5) / 8} + 0.5 + (0.1*7) + 1.5%
= 2% + 4% + 0.5% + 0.7% + 1.5%
= 8.7%
The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,500 of an employee's pay. Assume that an employee earned total wages of $9,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?
a. $534.60.
b. $613.80.
c. $79.20.
d. $465.00.
e. $0.00.
Answer:
d. $465.00
Explanation:
Calculation for the amount of total unemployment taxes
FUTA tax rate $60.00
(0.8%×$7,500)
SUTA tax rate $405.00
(5.4%×$7,500)
Total unemployment taxes $465.00
Therefore the amount of total unemployment taxes the employer must pay on this employee's wages will be $465.00
Consider the following information from the financial statements for Rock Inc. Last Year This Year Accounts Receivable 23,535 29,197 Inventory 31,858 36,758 Total Current Assets 156,774 155,103 Total Assets 481,648 433,593 Total Current Liabilities 28,578 21,489 Total Liabilities 260,101 205,624 Sales 473,864 Cost of Goods Sold 142,263 Operating Expenses 148,349 Tax Expense 7 Calculate this years' gross profit ratio. (enter 2 decimal places. e.g. enter .2968 as .30)
Answer:
Rock Inc.
Gross profit ratio:
= 0.70
Explanation:
a) Data and Calculations:
Sales $473,864
Cost of Goods Sold 142,263
Gross profit $331,601
Gross profit ratio = Gross profit/Sales
= $331,601/$473,864
= 0.69978
= 0.70
b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold. It is the first profit point on the Income Statement. It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold. This profit will cover the expenses incurred in running the business for the particular period.
When common stock is issued by a corporation for a cash price above par value, the excess of the cash proceeds over the par value should be reported in the financial statements as a component of: Select one: a. Retained earnings on the balance sheet b. Total liabilities on the balance sheet c. Operating income on the income statement d. Total contributed capital on the balance sheet
Answer: d. Total contributed capital on the balance sheet
Explanation:
When Common stock is issued this is known as a Paid-In Capital. If there is an excess over the par value, this will be an additional amount and so will be recorded in the Additional Paid-In Capital account.
This account is on the Equity side of the balance sheet and will form part of the capital contribution to the company because it was given to the company by shareholders.
The owner of a bicycle repair shop forecasts revenues of $212,000 a year. Variable costs will be $63,000, and rental costs for the shop are $43,000 a year. Depreciation on the repair tools will be $23,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield.
Answer:
Sales Revenue 212,000
Variable Cost (63,000)
Rent Expense (43,000)
Depreciation Expense (23,000)
Income before taxes 83,000
Income tax expense (16,600)
Net Income 84,800
Cash from operating activities 107,800
tax-shield from depreciation 4,600
Explanation:
Cash flow from operations (indirect method)
net income 84,800 + depreciation expense = 107,800
The depreciation provides a tax shield as they are an accounting concept. The depreciation expense did not involve the outflow of cash but, it is a taxable deduction therefore generates a tax-shield.
23,000 x 20% = 4,600
examples of tangible and intangible
Answer: Tangible: cash, inventory, vehicles, equipment, buildings and investments
Intangible: goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists
Hope this helps
Plz mark brainlest
The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department
Answer:
$41,960
Explanation:
the question is incomplete, so I looked for a similar question in order to fill in the missing parts:
Corporate headquarters building lease $86,000 Cosmetics Department sales commissions--Northridge Store $5,300 Corporate legal office salaries $57,300 Store manager's salary-Northridge Store $11,700 Heating-Northridge Store $14,400 Cosmetics Department cost of sales--Northridge Store $32,400 Central warehouse lease cost $13,900 Store security-Northridge Store $16,300 Cosmetics Department manager's salary--Northridge Store $4,260Direct costs are costs that are specific to a certain product, service or in this case, department or business unit. They are not shared with other products, services or business units.
The direct costs allocated to the Cosmetics Department are:
Cosmetics Department sales commissions--Northridge Store $5,300 Cosmetics Department cost of sales--Northridge Store $32,400 Cosmetics Department manager's salary--Northridge Store $4,260 total $41,960Double your wealth. Kant Miss Company is promising its investors that it will double their money every years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $ now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $? Using the Rule of 72, what annual rate is Kant Miss promising? 24% (Round to the nearest whole percentage.) Using the time value of money equation, what annual rate is Kant Miss promising? 25.99% (Round to two decimal places.) Is this investment a good deal?
Answer:
The question is incomplete, so I looked for a similar one:
"Kant Miss Company is promising its investors that it will double their money every 3 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $300 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $26 comma 000?"
Since the number of years is very small, both the rule of 70 or 72 will not be very accurate. If you use the rule of 70 the answer is 23.33% and using the rule of 72 the answer is 24%, but both are wrong. In order to determine the correct interest rate you must solve the following:
2 = (1 + i)³
∛2 = ∛(1 + i)
1.2599 = 1 + i
i = 25.99%
If this deal was not a scam or a fraud, then it would be a great opportunity, but sometimes such great opportunities are generally false or simply an illusion (due to extremely high risk).
In order to determine how long it would take for $300 to turn into $26,000, we can use the future value formula:
26,000 = 300 x 1.2599ⁿ
1.2599ⁿ = 86.667
n = log 86.667 / log 1.2599 = 1.9379 / 0.1003 = 19.32 years
What are some ways to build relationships within the core team?
Answer:
some of these ways are included in the answers below
Explanation:
To build relationship within the core team:
1. You have to recognize and acknowledge the individual motives and effort of team members
2. You have to make room for open communication in the team
3. You have to develop a way of sharing values in the team
4. Everyone should be carried along when it comes to meaningful project learning
5. At periods of success, you have to celebrate such.
6. Communicate well and properly especially when it come to periods of conflicts.
An investment offers $5,500 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would the value be today if the payments occurred for 45 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What would the value be today if the payments occurred for 70 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What would the value be today if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. What would the value be today if the payments occurred for 20 years?
this is an ordinary annuity, so we can use the present value of an ordinary annuity formula:
present value = annuity payment x annuity factor
annuity payment = $5,500PV annuity factor, 7%, 20 periods = 10.594present value = $5,500 x 10.594 = $58,267
b. What would the value be today if the payments occurred for 45 years?
present value = annuity payment x annuity factor
annuity payment = $5,500PV annuity factor, 7%, 45 periods = 13.60552present value = $5,500 x 13.60552 = $74,830.36
c. What would the value be today if the payments occurred for 70 years?
present value = annuity payment x annuity factor
annuity payment = $5,500PV annuity factor, 7%, 70 periods = 14.16039present value = $5,500 x 13.60552 = $77,882.25
d. What would the value be today if the payments occurred forever?
we must use the perpetuity formula:
present value = $5,500 / 7% = $78,571.43
Tammy, a resident of Virginia, is considering whether to purchase a North Carolina bond, face amount $100,000, that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. Tammy is aware that State of Virginia bonds of comparable risk are yielding 4.5%. Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Which of the two options will provide the greater after-tax return to Tammy? Tammy can deduct all state taxes paid on her Federal income tax return
Answer:
It should purchase the Virginia Bonds.
Explanation:
As the bonds are from another State they will be subject to taxation from both, the state and the Federal Government:
We comparethe after-tax yields:
North Carolina
0.046 x (1 - 0.40) = 0.0276 = 2.76% after-tax
Virginia
0.045 x (1 - 0.35) = 0,02925 = 2.925% after-tax
As the bond within the state provides a better yields Tammy should purchase there.
Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.80%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
284%
Explanation:
You calculate it using the conversion method
Which of these Nonforfeiture Options continue a build-up of cash value?a. Waiver of Premiumb. Extended Termc. Reduced Paid-Upd. Cash Surrender
Answer:
Reduced Paid-Up
Explanation:
Nonforfeiture provision in insurance allows for a partial or full refund of premiums paid in case of non payment by the client over a period of time.
Refunds are made before the policy expires.
Reduced Paid-Up option allows the original death benefit to remain without future payments of premiums.
So when there is non payment of premiums over time the original amount going to the beneficiary remains and increases in value
Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment. Charlie reported net income of $120,000 for 2021 and paid dividends of $70,000 on October 1, 2021. How much income should Baker recognize on this investment in 2021
Answer:
the income that recognized on this investment is $10,500
Explanation:
The computation of the income recognized on this investment for the year 2021 is shown below"
= dividend × share of ownership
while
The dividend is $70,000
And, the share of ownership is 15%
Now place these values to the above formula
= $70,000 × 15%
= $10,500
hence, the income that recognized on this investment is $10,500
Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10% to 5%. The banking system has initially $100m of securities and $800m of loans. Assume that loans are used as currency by the borrowers. Deposits are kept constant to $1000m. Show the T-account of the banking system before and after these two operations. Do these operations increase the monetary base? Justify your answer.
Answer:
loanable amount after Fed operation = $950 M
Securities after fed operation = $50 M
attached below is the T-account table
Explanation:
Given data:
For assets : securities = $100 M , Loans = $800 M
For Liabilities : Constant demand deposit = $1000 M
difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action
How with the reserve ratio reduced to: 0.05
hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M
Note : Total demand deposits = securities + loanable amount
therefore loanable amount after Fed operation = $1000 M - $50 M = $950
Attached below is the T-table
When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base
With a deadline approaching, all seven members of Sharon's product development team were working round-the-clock and still the work was not completed in time. After the project was completed, Sharon spoke individually with the members to determine the cause for this delay. Many members complained, saying the work given to them was not in accordance with their roles. Some were unclear about which team member to approach when faced with a problem, and many underestimated the time and effort the project demanded. This team is characterized by ________. Group of answer choices
Answer:
Dissimilar mental model
Explanation:
Communication is simply the interaction with two or more people. It is the passing of information. It involves the transfer and understanding of meaning. In communication, members of the organization shows their satisfaction and frustrations.
mental models simply represent a described or support comprehension as it keep info about the current situation available in memory. It guide behavior and allow prediction.
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable, some inventory, total current assets of $73,000, and total current liabilities of $25,550. The company reported annual sales of $100,000 in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory
Answer:
Over the Past year the Polk Software Inc sold and replaced its inventory at 4.57x(times)
Explanation:
Value of inventory = Total current assets - Cash - Account receivable
Value of inventory = 73,000 - 32,850 - 18,250
Value of inventory = $21,900
Inventory turnover ratio = Sales/ Inventory
Inventory turnover ratio= $100,000 / $21,900
Inventory turnover ratio= 4.57 times
Over the Past year the Polk Software Inc sold and replaced its inventory at 4.57x(times)
"Choose your favorite financial institution: bank or credit union. Are the Financial Statements available online? How do they compare to the financial statements in the Banking Game? Could you provide the URL to your financial institutions financial statements?"
Answer:
I have selected Standard Chartered Bank which is one of the leading banks in the world. It has more than 1200 branches across 70 countries in the world. The head quarter of the bank is in the city of London, England.
The financial statements of the banks are available online. These financial statements are compared with similar other banks or industry averages to analyse the performance of the bank.
Explanation:
Standard Chartered is one of the finest bank in the world. The banking sector has been always striving to serve people better and standard chartered has made this possible. The financial statements of the bank are available online. One can easily go to the banks website of their respective country and click the about us tab. Then in the about us tab there is detail about company operations and their mission vision statements along with free and complete access to financial statements.
Type the correct answer in the box. Spell all words correctly.
Which business model is used by some of the software development companies that create apps for smart phones?
Some software companies that develop apps for smart phones make use of the BLANK
business model to attract and retain customers.
Answer:
freemium
Explanation:
Some software companies that develop apps for smartphones make use of the Freemium business model to attract and retain customers.
What is business?An economic activity that involves the exchange of goods and services with the help of buying and selling with the objective to gain some profit is called Business.
A business model refers to a strategy to seek growth in business and to retain customers by generating high levels of customer satisfaction for them and helps to achieve loyalty and cretes goodwill in the market which helps in strengthening the position of the business.
Freemium is a business model used by software companies as it provides an advanced strategy that helps businesses to attract and retain customers by providing them with value-added services.
Learn more about the business model, here:
https://brainly.com/question/13397493
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Vertis Corporation is interested in cutting the amount of time between when a customer places an order and when the order is completed. Details for the first quarter of the year are provided here. Choose the correct answer from the options provided. Days Wait time 14 Inspection time 0.6 Process time 5 Move time 0.4 Queue time 6 What is the throughput time
Answer:
12
Explanation:
Computation for throughput time
Using this formula
Throughput time = Process time + Inspection time + Move time + Queue time
Let plug in the formula
Throughput time=5+0.6+0.4+6
Throughput time=12
Therefore the Throughput time will be 12
Smith and Baker Legal Services employs 6 full-time attorneys and 10 paraprofessionals. Budgeted salaries are $420,000 for each attorney and $140,000 for each paraprofessional. Budgeted indirect costs (e.g., rent, secretarial support, copying, etc.) are $980,000. The company traces the cost of attorney and paraprofessional time to each client and uses the total to assign indirect costs. What amount of indirect cost would be assigned if services to a client required $30,000 of attorney cost and $25,000 of paraprofessional cost
Answer:
Indirect cost for client is $13,750
Explanation:
Budgeted salaries = ($420,000 * 6) + ($140,000 * 10)
Budgeted salaries = $2,520,000 + $1,400,000
Budgeted salaries = $3,920,000
Budgeted indirect costs given = $980,000
Cost for client = $30,000 + $25,000
Cost for client =$55,000
Indirect cost for client is:
= $980,000 * ($55,000 / $3,920,000)
= $980,000 * 0.014031
= $13,750.38
= $13,750
$1,000 of supplies were purchased at the beginning of the month. $300 were used during the month. (The Supplies account was increased at the time of the initial purchase.) Demonstrate the required adjusting journal entry by selecting from the choices below. (Check all that apply.) Multiple select question. Supplies would be credited for $300. Supplies would be debited for $300. Supplies expense would be debited for $300. Supplies expense would be debited for $700. Supplies expense would be credited for $300.
Answer:
Supplies expense would be debited for $300 and Supplies would be credited for $300
Explanation:
The adjusting entry for supplies is shown below:
Supplies expense Dr $300
To Supplies $300
(Being the supplies is adjusted)
Here we debited the supplies expense as it increased the expense and credited the supplies as it also increased the asset so that the proper journal entry could be recorded and proper posting could be done
Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product?a. sewing machinesb. Threadc. Dresses
Answer: thread
Explanation:
From the question, we are informed that Hannah has a small business making clothing alterations. The product that would dramatically affect her profit margins if the price were to decrease for that product will be thread.
This is because Hannah makes cloth alterations and thread is something that she uses constantly for her business, so a decrease in the price of thread will definitely have an impact on her profit for the business.
Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on December 31, 2037 (20 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2025.
Answer:
The bonds were issued at $220,879,628.13
This is lower than the face value to compensate for the lower coupon payment.
cash 220,879,628.13 debit
discount on BP 39,120,371.87 debit
bonds payable 260,000,000 credit
--to record the issuance of the bonds--
Interest expense 13,252,777.69 debit
Discoun on BP 252,777.69 credit
cash 13,000,000 credit
--to record the first interest payment--
Interest expense 13,267,944.35 debit
Discount on BP 267,944.35 credit
Cash 13,000,000 credit
--to record second interest payment--
Interest expense 13,539,156.67 debit
Discount on BP 539,156.67 credit
cash 13,000,000.00 credit
--to record Dec 31st, 2025 payment--
Explanation:
To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
Coupon payment:
260,000,000 x 10% x 1/2 =13,000,000.000
time 20 years x 2 payment per year 40
yield to maturity 12% / 2 = 6%
[tex]13000000 \times \frac{1-(1+0.06)^{-40} }{0.06} = PV\\[/tex]
PV $195,601,859.3298
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 260,000,000.00
time 40.00
rate 0.06
[tex]\frac{260000000}{(1 + 0.06)^{40} } = PV[/tex]
PV 25,277,768.80
PV c $195,601,859.3298
PV m $25,277,768.8042
Total $220,879,628.1340
For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.
first interest payment
$220,879,628.13 x 6% = 13,252,777.69
less actual cash outlay: 13,000,000
amortization 252,777.69
second interest payment
($220,879,628.13- $252,777.69) x 6% = 13,267,944.35
less actual cash outlay: 13,000,000.00
amortization 267,944.35
December 31st, 2025:
This will be payment 14th
after building the schedule until that date we got:
select the correct answer.
Which Facets Model of Effects is a value that the customer assigns to something after receiving Information from their senses?
OA association
OB. affective
OC. perception
OD. cognition
Answer:
The answer is C. Perception!
Explanation:
Perception is when you receive information through your senses and assign it meaning. (There's a quizlet made by slmoon9852 that can teach you more about it!)
All too often companies today have failed to______________ their various communicationschannels, resulting in a hodgepodge of communications to consumers.
A) promote
B) rechannel
C) integrate
D) open
E) verify
Answer:
C) integrate
Explanation:
Communication is a key element in the relationship between a company and its consumers. It is needed to keep consumers abreast of current products and services offered by the company.
Integrated communication is when a company controls or influences all messages to the consumer in order to improve strategic relationships with them.
It is a well planned use of all communication channels to give a unified message to consumers
The following amounts were reported by Howe Company before adjusting its immaterial overapplied manufacturing overhead of $16,000. Raw Materials Inventory $80,000 Finished Goods Inventory $120,000 Work in Process Inventory $200,000 Cost of Goods Sold $1,460,000. What is the amount Howe will report as cost of goods sold after it disposes of its overapplied overhead
Answer:
$1,444,000
Explanation:
Given the data as seen below,
Over applied manufacturing overhead = $16,000
Raw materials inventory= $80,000
Finished goods inventory = $120,000
Work in process inventory = $200,000
Cost of goods sold = $1,460,000
Therefore, the amount Howe will report as cost of goods sold after it disposes off its overhead applied will be;
= Cost of goods sold - over applied manufacturing overhead
= $1,460,000 - $16,000
= $1,444,000
The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. No. Account Title Debit Credit 101 Cash $ 18,000 126 Supplies 11,800 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation—Equipment $ 6,500 307 Common stock 8,443 318 Retained earnings 37,600 319 Dividends 6,000 404 Services revenue 37,300 612 Depreciation expense—Equipment 2,000 622 Salaries expense 21,746 637 Insurance expense 1,567 640 Rent expense 2,499 652 Supplies expense 1,231 Totals $ 89,843 $ 89,843 1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901. 2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: The Retained Earnings account balance was $37,600 on December 31 of the prior year.
Answer:
Cruz Company
1. Closing Journal Entries:
Debit Income Summary $29,043
Credit:
612 Depreciation expense
—Equipment $2,000
622 Salaries expense 21,746
637 Insurance expense 1,567
640 Rent expense 2,499
652 Supplies expense 1,231
To close expenses to Income Summary.
Debit 404 Services revenue $37,300
Credit Income Summary $37,300
To close Service Revenue to Income Summary.
Debit Statement of Retained Earnings $6,000
Credit Dividends $6,000
To close Dividends to Statement of Retained Earnings.
Debit Income Summary $8,157
Credit Statement of Retained Earnings $8,157
To close the Income Summary to the Statement of Retained Earnings
2. Cruz Company
Post-Closing Trial Balance as of December 31:
No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 11,800
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation
—Equipment $ 6,500
307 Common stock 8,443
318 Retained earnings 39,857
Totals $ 54,800 $ 54,800
Explanation:
a) Data and Calculations:
Cruz Company
Trial Balance as of December 31:
No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 11,800
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation
—Equipment $ 6,500
307 Common stock 8,443
318 Retained earnings 37,600
319 Dividends 6,000
404 Services revenue 37,300
612 Depreciation expense
—Equipment 2,000
622 Salaries expense 21,746
637 Insurance expense 1,567
640 Rent expense 2,499
652 Supplies expense 1,231
Totals $ 89,843 $ 89,843
b) Income Summary
Service Revenue $37,300
less Expenses 29,043
Net Income $8,257
c) Statement of Retained Earnings
Retained Earnings, beginning $37,600
Add net income 8,257
Less Dividends 6,000
Retained Earnings, ending $39,857
The XYZ Brewery Corporation undertook an advertising campaign which appeared to encourage pre-legal-drinking-aged teenagers to consume its high-powered malt liquor. The FTC can take action against XYZ on grounds that the advertising campaign is in violation of the _____ doctrine.
Answer:
"Unfairness" is the correct approach.
Explanation:
The theory of unfairness is a concept of U.S. trade regulatory law according to which the federal communications commission could indeed rule a business practice "unfair" because it would be discriminatory or detrimental to customers and although the practice is not an antitrust infringement.An intensifying antitrust breach, a violation including its "heart" of government regulations, or a misleading activity.
