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).
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:
Book Values Fair Values
Current assets $41,500 $41,500
Building 108,000 67,000
Land 17,000 35,200
Trademark 0 31,800
Goodwill 19,000 ?
Liabilities (50,500) (50,500)
Common stock (100,000)
Retained earnings (35,000 )
Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
1) $166,000
2) $96,000
Answer:
Scenario 1. Cash Exchange of $166,000
Current assets $41,500 (debit)
Building $67,000 (debit)
Land $35,200 (debit)
Trademark $ 31,800 (debit)
Goodwill $41,000 (debit)
Liabilities $50,500 (credit)
Investment in Deluxe Company $166,000 (credit)
Scenario 1. Cash Exchange of $166,000
Current assets $41,500 (debit)
Building $67,000 (debit)
Land $35,200 (debit)
Trademark $ 31,800 (debit)
Liabilities $50,500 (credit)
Investment in Deluxe Company $96,000 (credit)
Gain on Bargain Purchase $29,000 (credit)
Explanation:
All assets and liabilities of Deluxe Company have been acquired by Allerton Company. This is known as a Business Combination in terms of IFRS 3.
During a Business Combination transaction, Assets and Liabilities are Acquired at their Fair Values instead of Book Values.
Any Excess of the Purchase Price (Consideration) over the Net Assets taken over is known as Goodwill otherwise it is known as a Gain on Bargain Purchase.
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:
Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $27,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:
Annual cost of servicing, taxes, and licensing $ 4,300
Repairs, first year $ 2,200
Repairs, second year $ 4,700
Repairs, third year $ 6,700
At the end of three years, the fleet could be sold for one-half of the original purchase price.
Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $70,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $15,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract.
Riteway Ad Agency’s required rate of return is 20%.
Required:
1. Use the total-cost approach to determine the present value of the cash flows associated with each alternative. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
Answer:
The present value of purchase is $ 209,907.41
The present value of lease is $ 153,773.15
Find attached spreadsheet.
Explanation:
The present of value of both options need to be calculated in order to determine the viable option:
Present value of purchase=($27,000*10)+($4,300+$2,200)/(1+20%)^1+($4,300+$4,700)/(1+20%)^2+($4,300+$6,700)/(1+20%)^3-($27000*10*0.5)/(1+20%)^3=$209,907.41
Present value of lease option=$15,000+$70,000/(1+20%)^1+$70,000/(1+20%)^2+$70,000/(1+20%)^3-$15,000/(1+20%)^3=$ 153,773.15
Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.00 % (annual coupon payments) and a face value of $ 1 comma 000. Andrew believes it can get a rating of A from Standard & Poor's. However, due to recent financial difficulties at the company, Standard & Poor's is warning that it may downgrade Andrew Industries' bonds to BBB. Yields on A-rated, long-term bonds are currently 6.50 %, and yields on BBB-rated bonds are 6.90 %.A. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue?
B. What will be the price of the bond if it is downgraded?
Why Do Organizations not change in response to environmental pressures?
Answer:
It often proves difficult to actually realize the change that you have come up with. Especially when it comes to cultural or behavioral change. We want to show that change is not so much something that you have to get others to join. You have to make your change part of it
Samantha, who is single and has MAGI of $28,000, was recently employed by an accounting firm. During the year, she spends $2,500 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course).
Assuming no reimbursement, how much can Samantha deduct for the:
a. CPA exam review course? $X
b. Law school expenses? $X
Answer:
a. CPA exam review course $0
b. Law school expenses $4,000
Explanation:
1a. CPA exam review course will be $0 because the IRS has disallowed any costs that will lead to qualifying for a different trade .
1b. The Law School expenses will be $4,000 . Based on section 222, Samantha is been limited to $4,000 of the tuition paid.
Therefore the balance of $650 is excess tuition $200 + $450 books which will not qualify under the regular education expense deduction due to the negative position of the IRS on law school costs.
What is new and innovating about this design/chopping board?
Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.
Balance Sheets:
2013 2012
Cash and equivalents $100 $85
Accounts receivable 275 300
Inventories 375 250
Total current assets $750 $635
Net plant and equipment 2,300 1,490
Total assets $3,050 $2,125
Accounts payable $150 $85
Accruals 75 50
Notes payable 150 75
Total current liabilities $375 $210
Long-term debt 450 290
Common stock 1,225 1,225
Retained earnings 1,000 400
Total liabilities and equity $3,050 $2,125
Income Statements:
2013 2012
Sales $2,600 $1,400
Operating costs excluding depreciation 1,250 1,000
EBITDA $1,350 $400
Depreciation and amortization 100 75
EBIT $1,250 $325
Interest 62 45
EBT $1,188 $280
Taxes (40%) 475 112
Net income $713 $168
Dividends paid $53 $48
Addition to retained earnings $600 $120
Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.
$
Answer:
–$32
Explanation:
Rosnan Industries' 2013 free cash flow (FCF)
Details $
Net income 713
Add Non-Cash Expenses:
Depreciation and amortization 100
(Increase) decrease in non-cash current assets:
Decrease in accounts receivable (300 - 275) 25
Increase inventories (375 - 250) (125)
Increase (decrease) in current liabilities:
Increase in total current liabilities (375 - 210) 165
Capital expenditure:
Increase in net plant and equipment (2,300 - 1,490) (810)
Depreciation and amortization (100)
Free cash flow (32)
Therefore, Rosnan's 2013 free cash flow (FCF) minus $32.
Which of the following is false?
a) Mail surveys are cheap but have low response rates.
b) Coverage error is when respondents give untruthful answers.
c) Focus groups are nonrandom but can probe issues more deeply.
d) Surveys posted on popular websites suffer from selection bias.
Answer:
b) Coverage error is when respondents give untruthful answers
Explanation:
Coverage error occurs when the target population isn't the population actually sampled.
Coverage error could be undercoverage or over coverage.
undercoverage is when the sampling population doesn't include all of the target population.
Over coverage is when some of the target population is over represented in the sample population.
I hope my answer helps you
Answer:
b) Coverage error is when respondents give untruthful answers.
Explanation:
Coverage error is a form of bias in experiments, where the selected sample does not match with the population for whom the experiment is actually meant for. This problem could arise as a result of undercoverage or overcoverage of samples.
Undercoverage is a situation wherein the members of the earmarked population are not included in the sample. Overcoverage occurs when samples that are not from the intended population, are included in error or even included more than once.
________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others.
A) Periodic surveys
B) Mystery shoppers
C) Customer loss rates
D) Customer focus statements
E) Sales summary reports
Answer:
A) Periodic surveys
Explanation:
The periodic survey is the survey which takes place after delivering the product and services to the customer. It can be in the form of customer feedback with respect to the satisfaction level, repurchase intention, worth of mouth, etc
By maximizing the customer satisfaction the company can able to achieve their sales targets that results into capture a maximum share in the market
Hence, the first option is correct
Marshall Grocery Delivery Service reports the following information: Rate per hour of direct labor is: Labor rate per hour $ 20 Rate per hour of direct labor $ 25.80 Materials markup 23 % Target profit margin 20 % The materials markup for a job that will use 100 labor hours and $2,000 of materials is:
Answer:
$460
Explanation:
The following information was reported from Marshall Grocery delivery service report
Labor rate per hour= $20
Rate per hour= $25.80
Materials markup= 23%
Target profit margin= 20%
The material markup for a job that will use 100 labor hours and $2,000 of materials is calculated as follows
Materials markup= Materials × percentage
= $2,000×23/100
= $2,000×0.23
= $460
Hence the materials markup is $460
Peterson Corporation wanted to run an ad campaign that featured popular songs sung by the original singer. The aim was to make an emotional connection with people who remembered the songs. When Bette was approached to sing for the commercial, she refused saying she did not "do" commercials. Peterson Corporation still wanted to use the song, so they hired a backup singer for Bette and she was told to "sound as much as possible like the Bette record." The backup singer did the commercial, and people, even close acquaintances of Bette, thought it was her. Bette sued Peterson Corporation for wrongfully appropriating her likeness.
Required:
Is this a valid example of misappropriation. Why or why not.
Answer:
Misappropriation refers to the use of another person's intellectual property including their name or likeness without prior permission from the person which can then cause harm to that person.
This is indeed an example of misappropriation because the company tried to use Bette's likeness in the commercial. After being rebuffed by Bette saying that she does not do commercials for whatever business or personal reasons known to her, they still sought to use her popularity and image to make their products more popular.
To do so they hired a backup singer and told her to sing as much like Bette as she could so much so that even Bette's close acquaintances thought that it was Bette. If her close acquaintances could think it was her, imagine the general public.
They therefore made it seem as though Bette did their commercial which then would mean that Bette does in fact do commercials which would do damage her assertion that she does not do same. This would bring harm to her business relationships if for instance she had rebuffed other companies in the past when they sought her to do their commercials.
This is a case of Misappropriation and Bette should sue.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claim Jumper Makeover Total Sales $ 104,000 $ 52,000 $ 156,000 Variable expenses 32,200 6,800 39,000 Contribution margin $ 71,800 $ 45,200 117,000 Fixed expenses 86,850 Net operating income $ 30,150 Required: 1. What is the overall contribution margin (CM) ratio for the company
Answer:
Weighted average contribution margin ratio= 0.726
Explanation:
Giving the following information:
Sales:
Claim Jumper= $104,000
Makeover= $52,000
Variable cost:
Clain Jumper= $32,200
Makeover= $6,800
First, we need to calculate the participation of the sales for each product:
Claim Jumper= 104,000/156,000= 0.67
Makeover= 52,000/156,000= 0.33
To calculate the weighted average contribution margin ratio, we need to use the following formula:
Weighted average contribution margin ratio= (weighted average sales - weighted average variable cost)/ weighted average sales
weighted average sales= (0.67*104,000) + (0.33*52,000)
weighted average sales= 86,840
weighted average unitary variable cost= (0.67*32,200) + (0.33*6,800)
weighted average unitary variable cost= 23,818
Weighted average contribution margin ratio= (86,840 - 23,818) / 86,840
Weighted average contribution margin ratio= 0.726
Certain balance sheet accounts of a foreign subsidiary of the Rose Co. had been stated in U.S. dollars as follows: Stated at Current Rates Historical Rates Accounts receivable—current $ 280,000 $ 308,000 Accounts receivable—long term 140,000 154,000 Prepaid insurance 70,000 77,000 Goodwill 112,000 119,000 Totals $ 602,000 $ 658,000 If the subsidiary's local currency is its functional currency, what total amount should be included in Tulip's balance sheet in U.S. dollars? $658,000. $609,000. $616,000. $602,000.
Answer:
$602,000
Explanation:
Since the foreign currency is the functional currency in this case, what is required to be done is the translation of the balance sheet accounts, not a remeasurement of the accounts.
The guiding principle is that when the financial statement of subsidiary is prepared using functional currency, assets and liabilities should be translated using the current rates.
Since $602,000 is the total using the current in the question, the total amount that should be included in Tulip's balance sheet in U.S. dollars is therefore $602,000.
On October 1, Black Company receives a 10% interest bearing note from Reese Company to settle an $21,800 account receivable. The note is due in six months. At December 31, Black should record interest revenue of:
a. $0
b. $450
c. $900
d. $1,800
Answer:
At December 31, Black should record interest revenue of: $545
Explanation:
Black Company receives a 10% interest bearing note from Reese Company to settle an $21,800 account receivable.
The amount of the interest per year = 10% x $21,800 = $2,180
At December 31, following 3 months, the interest accrual = $2,180/12 x 3 = $545
Journal entries to record the interest accrual:
Debit Interest receivable $545
Credit Interest revenue $545
Purchasing power parity is used to adjust gross national income in order to make a more direct comparison of________in various countries.
a. living standards.
b. population density.
c. geographical area.
d. factor endowments.
e. labor productivity.
Answer:
A. living standards.
Explanation:
HDI( Human development index) has been trying to assess 189 different countries and territories, with very different price levels. In order to compare economic statistics across countries, the data must first be converted into a common currency. In contrast to market exchange rates, PPP exchange rates make it possible for this conversion to take into account price differences between countries. This best represents the standard of living of people, GNI per capita (PPP)
a manufacturing firm is considering two locations for a plant to produce a new product. the two locations have fixed and variable costs as folls location FC(ANNUAL) VC(per unit) atlanta $80,000 $20 phoenix $140,000 $16 IF THE ANNUAL DEMAND WILL BE 20,000 units, what would be the cost advantage of the better location? HINT: compare the total costs a 60000 b 20000 c 460000 d 40000
Answer:
b $20,000
Explanation:
For computation of cost advantage first we need to find out the total cost of Atlanta and Phoenix which is shown below:-
Total cost = Fixed cost + (Variable cost × Number of units)
For Atlanta
The Total cost = $80,000 + ($20 × 20,000)
= $480,000
For Phoenix
The Total cost = $140,000 + ($16 × 20,000)
= $460,000
According to the above calculation, Phoenix is best location because it has lower total cost.
So
The Cost advantage at Phoenix = Total cost of Atlanta - Total cost of Phoenix
= $480,000 - $460,000
= $20,000
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $254,800, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point
Answer:
a)Break-even sales in units= 9,100 units
b)The number of units of each products:
Bat= 3,640 units
Gloves= 5,460 units
Explanation:
The break-even sales in unit = total general fixed cost/Average contribution per unit
Average contribution per unit = (40%× (40-30) )+ (60%×(100-60) )=28
Break-even Sales = $254,800/$28=9100 units
Break-even sales in units= 9,100 units
The number of units of each products:
Bat = 40%×9100 =3,640 units
Gloves = 60%× 9,100 =5,460 units
Bat= 3,640 units
Gloves= 5,460 units
=
Presented below is information related to Oriole Corp. for the year 2020.
Net sales $1,534,000 Write-off of inventory due to obsolescence $94,400
Cost of goods sold 920,400 Depreciation expense omitted by accident in 2019 64,900
Selling expenses 76,700 Casualty loss 59,000
Administrative expenses 56,640 Cash dividends declared 53,100
Dividend revenue 23,600 Retained earnings at December 31, 2019 1,156,400
Interest revenue 8,260 Effective tax rate of 20% on all items
Prepare a multiple-step income statement for 2020. Assume that 62,370 shares of common stock are outstanding.
Answer:
Oriole Corp.
Income Statement
For the Year Ended December 31, 2020
Total sales $1,534,000
Cost of goods sold ($920,400)
Loss from inventory write off ($94,400)
Gross margin $519,200
Operating expenses:
Administrative expenses $56,640
Selling expenses $76,700
Total operating expenses ($133,340)
Income from operations $385,860
Other revenues and gains
Dividend revenue $23,600
Interest revenue $8,260
Total other revenues and gains $31,860
Other expenses and losses
Depreciation expense 2019 $64,900
Casualty loss $59,000
Total other expenses and losses ($123,900)
Net income before taxes $293,820
Income taxes 20%* ($58,764)
Net income $235,056
*Generally dividend revenue is not taxed or only 30% of it sis taxed. Since we were told to apply 20% income tax to all items, I didn't calculate it separately. But if you calculate it separately, then income taxes would be $1,156 lower (total $57,608) and net profit would be higher (total $236,212).
A buyer uses a perpetual inventory system, and on December 7, it contacts its supplier to report that some of the merchandise purchased on December 5 was defective. The seller offered to reduce the merchandise price by $400. The buyer agreed to keep the defective merchandise under those terms. Complete the buyer's necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Journal
Account Title
Accounts Payable $400 (Debit)
Purchase return and allowances $400 (Credit)
Account Payable
Dec 7 Cash $400 (Debit)
Purchase Returned
Dec 7 Cash $400 (Credit)
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $ Fine China $ Everyday dinnerware $ b Determine the total shipping and receiving costs to be allocated to the fine china if 3,100 boxes are shipped.
Answer:
a) Shipping and handling cost of each product:
Glasses = $ 24, China = $ 48, Everyday dinnerware = $ 72
b) Total shipping and receiving costs of 3,500 boxes of fine China is $148,800
Explanation:
a) Shipping and handling cost of each product:
Glasses = Weighs × Activity rate per lbs = 2 lbs × $ 12 = $ 24
China = Weighs × Activity rate per lbs = 4 lbs × $ 12 = $ 48
Everyday dinnerware = Weighs × Activity rate per lbs = 6 lbs × $ 12 = $ 72
b) Total shipping and receiving costs of 3,100 boxes of fine China
= 3100 boxes × Shipping and receiving cost each product
= 3100 × 48
= $ 148,800
Required informationUse the following information for the Exercises below.[The following information applies to the questions displayed below.]
Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows an $11,589 debit balance. Del Gato Clinic's June 30 bank statement shows $10,555 on deposit in the bank.
a. Outstanding checks as of June 30 total $1,829.
b. The June 30 bank statement included a $16 debit memorandum for bank services.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476.
d. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
1. Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Prepare a bank reconciliation for Del Gato Clinic using the above information:
Answer:
a. No journal entry required
b. Miscellaneous expense A/c Dr $16
To Cash A/c $16
(service charge)
c. Cash A/c Dr $9 ($476 - $467)
To Utilities expense A/c $9
4. No journal entry required
2.) Kindly check attached picture
Explanation:
Kindly check attached picture
Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:
Answer:
Interest Income
Explanation:
Based on the described scenario it can be said that Nate should report this income on his individual return as Interest Income. This is the amount of interest that the individual has earned in a specific period of time. This is what Nate has made by collecting his share of the interest and should be reported as such since Income from flow-through entities retains its character when reported on individual returns.
Paragraph coherence occurs when the ideas in a paragraph are linked and there is a logical flow from one idea to the next. Which of the following are techniques that you can use to help the reader follow your ideas?
A) Place prepositions near the end of the sentence.
B) Show connections with transitional expressions.
C) Avoid repetition of words and phrases.
D) Use pronouns to refer to previous nouns.
E) Use bullets and lists to connect similar ideas.
Answer:
B) Show connections with transitional expressions.
Explanation:
When paragraphs are formed there needs to be a smooth flow so the reader can clearly understand what is being communicated. Paragraph coherence is used to achieve this.
An important method in achieving paragraph coherence is the use of transitions.
Transitions are words or a set of word that connects sentences and ideas together in a paragraph. It makes the relationship between ideas clear and understandable.
Coherence is used to make the ideas expressed flow smoothly and logically.
Culture and Ethical Business PracticesThe business world is becoming increasingly global due to advances in technology and travel. This means that businesspeople must know how to navigate intercultural ethics, not just the ethics of their particular country. To better prepare for the ethical challenges of a global marketplace, you should broaden your cultural awareness and familiarize yourself with strategies that help you adhere to legal and ethical guidelines.Read the following passages.1. You have recently been told you are going on a business trip to Thailand. You want to schedule a meeting with your supervisor to discuss how she conducts business in an ethical manner while in Thailand. In order to prepare for the meeting, you make a list of questions you would like to ask.A. What is an example of a good question to ask in this meeting?B. What are the company policies when it comes to handling bribery?C. Is it customary in this country to take off your shoes before entering a home?D. What are the top three sights I should see?2. After solidifying an overseas deal with a large bottling company, the executive informs you that in order to expedite the signing of the materials, he will need an extra $10,000. How should you react to his request?A. Immediately judge the man as immoral and corrupt and end the business deal.B. Inform the executive that this extra $10,000 wasn’t in the original contract. Avoid assuming unethical behavior until you clarify what he is asking for in relation to the agreed-upon contract.C. Negotiate his request and offer $5,000.3. Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural challenges of doing global business. Which of the following suggestions acknowledge different values and respect the need for moral initiative?
A. Find alternatives.B. Don’t rationalize shady decisions.C. Avoid transparency.D. Refuse business if it violates you basic values.E. Workforce Diversity: Benefits and Challenges4. As diversity in the workplace increases, interacting and communicating with your coworkers will present specific challenges and rewards. In order do successfully navigate today’s workplace, be sensitive to the diverse backgrounds of your coworkers.Read the following scenarios.5. In a company meeting on diversity in the workplace, the HR representative starts a discussion on how to be more sensitive toward the diverse backgrounds of the company’s employees. After the informative discussion, you want to know from the HR representative’s perspective why your company values diversity in its work environment. What would be the best response from the HR representative?A. Team members with different backgrounds come up with more effective problem-solving techniques, providing your company with a competitive advantage over other companies.B. Even though it is more expensive for the company to hire a diverse workforce, the people are worth it.C. The company doesn’t want to hear employees gripe about discrimination, so they hire workers with diverse backgrounds.6. As the leader of your workgroup, you want to encourage a positive working environment. You decide to make posters for the hallway with tips for improving communication between the diverse members of your group. How to always win an argument.
Answer: Please refer to Explanation
Explanation:
B. What are the company policies when it comes to handling bribery?
This is a good question to ask because it aims to find out how the company deals with a very important ethical issue which is that of bribery. Your supervisor needs to tell you how the company normally deals with bribery so that you can act appropriately and abide by the ethics of the company.
B. Inform the executive that this extra $10,000 wasn’t in the original contract. Avoid assuming unethical behavior until you clarify what he is asking for in relation to the agreed-upon contract.
You should tell the Executive that the sum of money he is requesting for was not in the original budget and inquire to know why he needs it so that you may know if it is something you can acquire. It is sometimes best to wait for an explanation first before rushing to conclusions and this is one of those times.
A. Find alternatives.
B. Don’t rationalize shady decisions.
D. Refuse business if it violates you basic values.
When dealing with other culture and you see that there are different values from the ones you are used to and therefore different ways of doing things, it is imperative that you find alternatives to your course if action that can still serve your purpose while not antagonizing the people.
Also very important to to avoid rationalizing shady deals because once you start you will find that UNETHICAL decisions are easy to engage in.
Also as much as you are in a different cultures, some behaviours will always be unethical, refusing business that violates your basic values shoeshowss Moral Initiative.
A. Team members with different backgrounds come up with more effective problem-solving techniques, providing your company with a competitive advantage over other companies.
As the saying goes, "two heads are better than one". This is very important in teams with diversity because different cultures and backgrounds have evolved differently and found out different ways to come up with solutions to problems with some being better than others. Having team members from various backgrounds brings that information together to chart a better path forward which can then give a Competitive Advantage.
Build on Similarities. Coexist Peacefully.
By posting this tip, you encourage team members to communicate well with each other by first finding similarities. Human beings regardless of culture can have similarities and from these we can see that we are not all that different. Once that is found out, it is easier to coexist peacefully.
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
Answer:
Find below full question:
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
a. $1312.50
b. $1190.48
c. $1028.38
d. $1079.80
Option D,$ 1,079.80 is correct
Explanation:
The present value formula can be used to determine the cost in year one as follows:
PV=FV*(1+r)^-n
FV is the future cost in year 4 which is $1,250
r is the growth rate of cost per year which is 5%
n is the duration of time involved,it is 3 because the difference between year 4 and year 1 is 3
PV=$1250*(1+5%)^-3
PV=$1250*(1.05)^-3
PV=$1250*0.863837599
PV=$ 1,079.80
The cost of the hydrogen sulfide monitor in year one is $ 1,079.80
In essence option D,$ 1,079.80 is correct
Elisha Levi believes that a flexible, customized approach to selling is best when dealing with highly complex products or services. She typically performs an in-depth study of a prospect's needs before developing a well-planned presentation. Levi obviously favors the
Answer: problem-solution
Explanation:
Here is the complete question:
Elisha Levi believes that a flexible, customized approach to selling is best when dealing with highly complex products or services. She typically performs an in-depth study of a prospect's needs before developing a well-planned presentation. Levi obviously favors the ___________ presentation method.
a. Memorized
b. Stimulus response
c. Problem-solution
d. Need satisfaction
e. Formula
The problem-solution presentation is a form of presentation that is flexible and also a customized approach whereby the presenter will give an in-depth analysis of the needs of the prospect. It should also be noted that the problem solution presentation requires a presentation that has been well-planned. This method is good for negotiations and complex products.
FOR BUS LAW I
Certain that Al Gore would emerge victorious from the post-election chaos, Melvin's Decorations ordered 50,000 "President Al Gore" medallions from Medallions, Inc. on December 1, 2000 for $5 per medallion. Delivery was to be on January 10, 2001. By that date, the value of the medallions had fallen to $1 per medallion. Melvin's Decorations refused to accept the medallions because it was clear that George Bush would keep the presidency, and Medallions, Inc. sued for Melvin’s breach. What can Medallions recover? (Assume that there was nothing wrong with the medallions and that Melvin's did breach the contract).
A.
Medallions' lost profit on the deal.
B.
The difference between the contract price and the market price.
C.
Either A or B.
D.
Neither A nor B.
Answer:
A. Medallions' lost profit on the deal.
Explanation:
Since Melvin's Decorations breached the contract they had with Medallions, the non breaching party is entitled to sue for compensatory monetary damages. Courts will generally assign compensatory damages that cover the losses incurred due to the contract breach, i.e. the amount of money that medallion would have made as a profit if Melvin's decoration had purchased and paid for the medallions.
Between 2015 and 2016, the country of North Grogolia experienced a growth rate of -1.4%. If nominal GDP had increased by 3.1% and the population growth was recorded at 0.7%, then calculate the annual inflation rate in North Grogolia. Give your answer to one decimal.
Answer: 3.8%
Explanation:
To calculate this you can use the Economic Growth Formula because price change is one of the components of the equation and as you may know, inflation is the change in Prices from one period to the next.
The Equation is,
Economic Growth = % Δ Nominal GDP – % Δ Prices – % Δ Population.
Making % Δ Prices the subject gives,
% Δ Prices = - Economic growth + % Δ Nominal GDP - % Δ Population
= - (- 1.4%) + 3.1% - 0.7%
= 1.4% + 3.1% - 0.7%
= 3.8%
The inflation rate is therefore 3.8%
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors, and 5% are informed traders. The portfolio consisting of all informed traders has a beta of 1.4 and an expected return of 16%. The market has an expected return of 10% and the risk-free rate is 4%. The alpha for the informed investors is closest to:
Answer:
3.6%
Explanation:
The computation of the alpha for the informed investors is shown below:
As we know that
Expected rate of k = Risk free rate of return + Beta × (Market rate of return - Risk free rate of return) + Alpha
16% = 4% + 1.4 × (10% - 4%) + Alpha
16% = 4% + 8.4% + Alpha
16% = 12.4% + Alpha
So,
Alpha = 3.6%
We simply applied the above formula to determine the alpha
The rate of return is a metric for determining whether an investment has made a profit or loss money over time.
Given Information:-
Beta=1.4Expected return=16%expected return=10%Risk-free rate=4%
The computation of the alpha for the informed investors is shown below:
Expected rate of k = Risk free rate of return + Beta × (Market rate of return - Risk free rate of return) + Alpha
16% = 4% + 1.4 × (10% - 4%) + Alpha
16% = 4% + 8.4% + Alpha
16% = 12.4% + Alpha
Alpha = 3.6%
To know more about Expected rate, refer to the link:
https://brainly.com/question/4306148
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. What do these requirements achieve? Check all that apply. They help to control the money supply. They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash. They mean that banks must have one dollar of deposits for every dollar it loans. They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.
Answer:
The correct answer to the following question will be Option B.
Explanation:
These conditions hopefully reduce banking crises as well as quantify the community against banks never running cash. The criteria for the reservation were established to be doing the ends of the next day.Amount of inter-bank payments, these funds also convince the public which banks aren't going to make many such mortgages.Other available options have no connection with the particular circumstance. So the answer to the above seems to be the right one.
