Answer:
there are no options, but the journal entry should be:
Dr Cash 2,500
Dr Investment in bonds 350
Cr interest revenue 2,850
Explanation:
Since the bonds' carrying value is less than the face value, it means that Gardner Company purchased them at a discount. When the bonds were purchased, the investment in bonds account's balance was not $100,000 (the par value), instead it was recorded at the lower amount at which they were purchased. As coupon payments are received, the discount on the bonds is amortized and their carrying value should increase until it reaches par value on maturity date.
Which of the following statements about moneyness is least accurate? When:____.
A. S - X is > 0,a call option is in the money.
B. S - X = 0,a call option is at the money.
C. S > X, a put option is in the money.
Answer:
The answer is C.
Explanation:
Option A is correct because a call option is in the money when the price of the underlying asset(S) is greater than the exercise price (X)
Option B is correct because a call option at the money when the price of the underlying asset(S) is equal the exercise price (X)
Option V is incorrect because a put option is in the money when the price of the exercise price(X) is greater than the underlying price (S). (X -S > 0)
Meyer Inc's total invested capital is $660,000, and its total debt outstanding is $185,000. The new CFO wants to establish a total debt to total capital ratio of 55%. The size of the firm will not change. How much debt must the company add or subtract to achieve the target debt to capital ratio
Answer:
$178,000
Explanation:
Calculation for How much debt to achieve the target debt ratio
First step is to find the Target amount of debt using this formula
Target amount of debt =Target debt percentage ×Total assets
Let plug in the formula
Target amount of debt =55%× $660,000
Target amount of debt=$363,000
Second step is to calculate for the Change in the amount of debt outstanding using this formula
Change in amount of debt outstanding = Target debt -Old debt
Let plug in the formula
Change in amount of debt outstanding =$363,00-$185,000
Change in amount of debt outstanding =$178,000
Therefore How much debt to achieve the target debt ratio will be $178,000
Metlock Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,000 Fair value 42,000 Expected credit losses 12,550 New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. What is the amount of the credit loss that Metlock should report on this available-for-sale security at December 31, 2020
Answer:
The amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 is $9,000.
Explanation:
Available-for-sale securities (AFS) can be described as equity or debt securities that are bought with the aim of reselling them before their date of maturity.
In accounting, available for sale securities are reported at fair value. As a result of this, any difference between amortized cost and fair value will transferred to other comprehensive income.
Therefore, the amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 can be determined as follows:
Credit loss = Amortized cost - Fair value = $51,000 = 42,000 = $9,000
Therefore, the amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 is $9,000.
Alliance Life Insurance promotes its term life insurance products through commissioned sales representatives, who use aggressive sales tactics to acquire new customers who make monthly premium payments. Alliance is driven to earn profits and instructs its sales representatives to sell, sell, sell, and it trains them that "Everyone needs life insurance." This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is _______.
Question options:
a. the organization's use of target marketing to sell its products to those with true needs
b. the organization's external, market-oriented focus
c. the organization's primary goal to achieve profitability through sales volume
d. the organization's mission to satisfy customers by providing products with many benefits to meet their needs
Answer:
c. the organization's primary goal to achieve profitability through sales volume
Explanation:
Sales oriented firms have selling concept disposition/philosophy as opposed to marketing concept. They are focused on maximisation of sales through promotion in order to generate profit. This is the philosophy of Alliance insurance as shown in the question, they are focused on selling using aggressive promotion through their sales representatives in order to maximise profits in this way. Marketing concept oriented firms are focused on satisfying customer needs while selling concept firms are focused on seller's needs
Sterling Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 200 boats at a total cost of $720,000. The low point in production occurred in January when it produced 100 boats at a total cost of $450,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Sterling Boat Company. Determine the total estimated cost if 150 boats are made.
Answer:
$585,000
Explanation:
Using high-low method
Variable cost = Total cost (high activity) - Total cost (low activity) / Highest activity unit - Lowest activity unit
Variable cost = 720,000 - 450,000 / 100
Variable cost = 270,000 / 100
Variable cost = 270
Variable cost = Cost - Fixed cost
Now 720,000 = (200) * 2,700 - Fixed cost
- FIxed cost = 540,000 - 720,000
- Fixed cost = -180,000
Fixed cost = 180,000
Now Cost for 150 = 2,700 (150) + 180,000
= 405,000 + 180,000
= $585,000
Which of the following can generally be found in a bond's indenture agreement?
I. Terms of repayment
II. Names of registered shareholders
III. Protective covenants
IV. Total amount of the bond issue
Answer:
I, III and IV
Explanation:
The bond indenture agreement is an agreement which is made between the issuer of the bond the bondholder. It involves terms and conditions that represent the maturity date, interest payment timing, their calculations,repayment terms, total amount of the bond issuance, and the protective covenants i.e. used for locating the restrictions imposed
Therefore in the given case, the I, III and IV are to be involved and the same is to be considered
A company had net income of $49,000, net sales of $390,000, and average total assets of $290,000. Its profit margin and total asset turnover were respectively:___________A) 12.56%; 1.34.B) 12.56%; 0.17.C) 1.34%; 12.56.D) 1.34%; 0.17.E) 1.96%; 1.34.
Answer:
Profit margin = 12.56% (Approx)
Total asset turnover = 1.34 (Approx)
Explanation:
Given:
Net income = $49,000
Net sales = $390,000
Average total assets = $290,000
Find:
Profit margin
Total asset turnover
Computation:
Profit margin = [Income / sales]100
Profit margin = [49,000 / 390,000]100
Profit margin = 12.56% (Approx)
Total asset turnover = Net Sales / Average total assets
Total asset turnover = $390,000 / $290,000
Total asset turnover = 1.34 (Approx)
Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $16,700 Direct labor 26,794 Factory overhead 32,844 Work in process inventory, March 1 17,028 Work in process inventory, March 31 19,382 Finished goods inventory, March 1 23,631 Finished goods inventory, March 31 25,648 a. Determine the cost of goods manufactured.
Answer:
cost of goods manufactured= $73,984
Explanation:
Giving the following information:
Cost of direct materials used in production $16,700
Direct labor 26,794
Factory overhead 32,844
Work in process inventory, March 1 17,028
Work in process inventory, March 31 19,382
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 17,028 + 16,700 + 26,794 + 32,844 - 19,382
cost of goods manufactured= $73,984
Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned. In addition to the physical damage to the restaurant, Jenna also lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example of
Answer:
Indirect loss
Explanation:
The lost profits are an example of indirect loss.
Indirect loss also known as consequential loss is a loss sustained by a business owner when it is unable to use its assets for the intended purpose. Indirect loss is as a result of damage caused by fire, flood, earthquake etc.
An insured business is able to recover part of indirect loss but if the business is not insured, then it will bear the consequences alone.
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her company's new model of automobile batteries. Life tests performed on a sample of 100 batteries indicated: (1) an average life of 75 months, (2) a standard deviation of 5 months, and (3) battery life is approximately normally distributed. Approximately 95% of the batteries will last between:______
a. 70 and 80 months
b. 60 and 90 months
c. 65 and 85 months
d. 55 and 95 months
Answer:
c. 65 and 85 months
Explanation:
Life tests performed on a sample of 100 batteries indicated:
(1) an average life of 75 months,
(2) a standard deviation of 5 months, and
(3) battery life is approximately normally distributed.
We create a 95% CI around mean.
If 95% is in the middle, then 5% is in the ends, 2.5% in each end.
Z score at .025 is -1.96, z score at .975 is +1.96
To convert z to battery life:
Z*sd + mean = battery life
-1.96*5 + 75 = 65.2, rounds to 65
+1.96*5 + 75 = 84.8, rounds to 85
The federal backing for the money in the United States comes from: Group of answer choices providing sufficient quantities of precious metals such as gold and silver to cover the amount of paper money in circulation. pledging physical assets, such as land, natural resources, and public buildings as collateral for outstanding currency. control over the money supply designed to keep the value of money relatively stable over time. protecting checkable deposits at financial institutions with deposit guarantees.
Answer:
control over the money supply designed to keep the value of money relatively stable over time.
Explanation:
The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. Regulating banking activities (it has the power to supervise and regulate banks).
II. Providing banking services to all the commercial banks in the country (the Federal Reserve is the "lender of last resort).
III. Controlling the issuance of currency in United States of America (it facilitate and enhances public goals such as low inflation, economical growth, and the smooth running of financial markets).
Hence, the federal backing for the money in the United States comes from control over the money supply designed to keep the value of money relatively stable over time through the implementation of monetary policies.
The monetary policy of the "Fed" helps to maintain the purchasing power of money by making it relatively scarce.
Suppose you buy a home and borrow $176,000 using a 30 year mortgage with an annual interest rate of 3.20% (compounded monthly). You recall your FI 302 professor talking about how increasing your monthly payment can save you both time and money. You decided to pay 10% more each month than what the bank suggests your payment should be. Given this, in how many years will you pay off the loan
Answer:
Explanation:
Rate of interest = 3.2 / 12 = .266667
No of terms = 12 x 30 = 360
amount = 176000
PMT = $ 761.14
Now the instalment is increased by 10% so
the instalment becomes = 761.14 + 76.11
= #837.25
No of years required from table
= 25.74 years.
Can an indifference curve be downward sloping in one section, but then bend backward so that it forms a "hook" at the end of the indifference curveLOADING...? An indifference curve A. cannot form a hook because it then would be upward sloping. B. cannot form a hook because . C. can form a hook as long as it does not intersect other indifference curves. D. can only form a hook if . E. can form a hook as long as it is not thick.
Answer:
A. cannot form a hook because it then would be upward sloping.
Explanation:
As in the case when the indifference curve slopes upward so the consumer would be indifferent that lies between the two bundles that generate more of the consumption goods
Now in case when the curve is hook sloping upward so the preference of the consumer could violate the assumption i.e. the more it is , the better it is
Therefore the option A is correct
Which of the following would contribute to the high price of health care?A. There are many providers of health care in the industry.B. Demand for health care is relatively elastic.C. Demand for emergency care is relatively inelastic.D. Supply of health care is limited.E. Many people use Medicare and Medicaid.
Answer:
C. Demand for emergency care is relatively inelastic.
D. Supply of health care is limited.
E. Many people use Medicare and Medicaid.
Explanation:
The Law of Supply posits that when there is a low supply of a good relative to its demand, the price will be higher because the good will be more scarce therefore people will have to pay more to get it. This is why in a situation where the supply of Health Care is limited, the price of health care will be high.
The law of demand states that when there are a lot of people demanding a good relative to its supply, the price of the good will be high because again, the good is now more scarce. When many people are using Medicare and Medicaid, there are more people able to afford health care meaning that demand is increased. This will increase the price of health care.
When a good's demand is said to be inelastic, it means that when prices change, the change in demand is less than the change in price. Prices of such goods will not have the incentive to remain low and will generally rise because the demand will not change by much. If demand for emergency care is relatively inelastic, the price will rise because demand will not change by much.
A debit memorandum is: The source document for the purchase of merchandise inventory. The document a seller issues to inform the buyer of a debit made to the buyer's account in the seller's records. Required when a purchase discount is granted. The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records. Not necessary in a perpetual inventory system.
Answer:
The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records.
Explanation:
A debit memorandum is a notice to a client that a debit change to their accounts has been made, decreasing the amount of the available funds. Bank transactions, incremental billing, or internal offsets are the three primary reasons for issuing a debit memo.
Therefore according to the given option, the correct option is fourth and the same is to be considered
Walmart is the largest retailer with both brick-and-mortar stores and a growing internet business. Walmart continues to innovate with its service to shop online and pick up at the store. Walmart has also faced criticism due to its low wages and difficulty for part-time employees to get group health insurance. Many consumers refuse to shop at the store due to their employee policies. Based on this scenario, which criterion for an exchange to occur is missing?
Answer: Each party is willing to consider the other to be a desirable exchange partner.
Explanation:
From the question, we are informed that Walmart is a huge retailer but despite that, it has faced criticism as a result of its low wages and difficulty for part-time employees to get group health insurance and that this has led many consumers refusing to shop at the store due to their employee policies.
The criterion for an exchange to occur that is missing here is that "each party is willing to consider the other to be a desirable exchange partner". In this scenario, the customers doesn't see Walmart as a desirable excange partner due to the way they treat their workers therefore an exchange cannot take place.
Expedia and Priceline compete as online travel agencies. Historically, Expedia has focused more on flights, whereas Priceline has focused on hotel bookings. The following amounts were reported by the two companies in 2015. (in millions) Net Income Total Assets Total Liabilities Total Revenues Expedia $ 723 $ 15,504 $ 10,574 $ 6,672 Priceline 2,551 17,421 8,625 9,224 Required: Calculate each company’s net profit margin expressed as a percent. (Round your answers to 1 decimal place.)
Answer:
Expedia : 10.84%
Priceline :27.66%
Explanation:
Net profit margin is an example of a profitability ratio. It measures he ability of a firm to earn a profit from its assets
Net profit margin = Net income / Revenue
Expedia : $723 / $6,672 = 0.1084 = 10.84%
Priceline : 2,551 / 9,224 = 0.2766 = 27.66%
Exercise 14-6 (Algo) Bonds; issuance; effective interest [LO14-2] The Gorman Group issued $900,000 of 11% bonds on June 30, 2021, for $977,220. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate).
Answer:
1) June 30, 2021, bonds are issued at a premium.
Dr Cash 977,220
Cr Bonds payable 900,000
Cr Premium on bonds payable 77,220
2) December 31, 2021, first coupon payment
Dr Interest expense 48,861
Dr Premium on bonds payable 639
Cr Cash 49,500
amortization of premium on bonds payable = (977,220 x 5%) - 49,500 = -639
3) June 30, 2022, second coupon payment
Dr Interest expense 48,829
Dr Premium on bonds payable 671
Cr Cash 49,500
amortization of premium on bonds payable = (976,581 x 5%) - 49,500 = -670.95 ≈ -671
A company brand offers a methodology for disctrubiting products.
A. True
B. False
Answer:
B. False
Explanation:
The role of the brand becomes significant for sponsoring the brand i.e. manufacturer, distributor, retailer. It also provides the legal safeguard with a help of trademark
Also, it offered an efficient and effective methods for products categorization
Therefore the given statement is false
hence, the correct option is B. False
A new graduate has taken a job with an annual salary of $60,000. She expects her salary to go up by 2.5% each year for the first five years. Her starting salary is stored in cell A4 of an Excel worksheet, and the salary increase rate is stored in cell B4. Construct a table with years 1 through 5 in cells A6:A10 and her salary in cells B6:B10. Write the formula for her salary in year 2 (in cell B7) that can be copied and pasted correctly in cells B8 through B10.
Enter the formula you used in cell B7 ______.
Answer:
=B6*(1+$B$4)
Explanation:
Note: See the attached excel file for the table constructed as directed by the question.
The cell B6 for the salary in Year 1 is obtained by simply typing =A4*(1+B4) in cell B6; where,
A4 = Annual salary = $60,000
1 = 100%
B4 = Annual percentage salary increase = 2.5%
The cell B7 for the salary in Year 2 is obtained by simply typing =B6*(1+$B$4) in cell B7; where,
B6 = Salary in Year 2
$B$4 = Annual percentage salary increase in which the two dollar signs is obtained by placing the mouse cursor on B4 and then press F4 in order to lock the B4 for the rest of the years = 2.5%
Note that $B$4 allows 2.5% to be multiplied by salary in the previous years for each successive years 2 to 5.
By copying and pasting =B6*(1+$B$4), it will automatically changed to =B7*(1+$B$4), =B8*(1+$B$4), and =B9*(1+$B$4) to obtain salaries in years 3 to 5 respectively.
Therefore, the formula used in cell B7 is =B6*(1+$B$4).
In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices at which goods are sold is determined by the government. C) collectivist goals are given priority over individual goals. D) all productive activities are owned by the state.
Answer:
A) production is determined by the interaction of supply and demand.
Explanation:
A pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions
Characteristics of a pure market economy
Private ownership of means of productionfreedom of choice. Producers are free to produce what they desirecompetition among producers no government intervention.The taxes imposed under the Social Security Act consist of ______.
a. two taxes on employers
b. two taxes on employees
c. OASDI and HI taxes
d. all the above
Answer:
if I'm correct it should be D
Sales returns related to sales on account were $400. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Net sales to be reported on the income statement is $18,098
Explanation
Computation of Net sales
Particulars Amount
Sales revenue $18,900
($8,400 + $10,500)
Less: Credit card discount (a contra revenue) $252
($8,400 * 3%)
Sales Discount (a contra revenue) $50
($10,500 - $500) * 1/2 * 0.01
Sales returns and allowances (a contra revenue) $500
Net sales $18,098
Note: Kindly find attach the complete question while $400 sales return is changed to $500.
Peace Company began the accounting period with a $14,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $44,000. The accounts receivable account at the end of the accounting period contained a $8,000 debit balance. Based on this information, the cash collected from accounts receivable during the period is
Answer:
$50,000
Explanation:
Based on this information, the cash collected from accounts receivable during the period is $50,000. This can be calculated in the following way. Since the Company started the period with a $14,000 debit balance and ended that period with only $8,000 it means that $6,000 was used. Since it was used, it means that it was deducted from the actual collected total. Therefore to find this total we add these $6,000 to the revenue for that period which was $44,000. This totals up to $50,000.
During November, the production department of a process operations system completed and transferred to finished goods 31,000 units that were in process at the beginning of November and 150,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to conversion. Compute the number of equivalent units with respect to conversion for November using the weighted-average method.
Answer:
200,800 units
Explanation:
Calculation of Equivalent units of Production of Conversion Costs
Method : weighted-average method.
Completed and Transferred (181,000 × 100%) = 181,000
Ending Work In Process (33,000 × 60%) = 19,800
Equivalent units of Production of Conversion Costs = 200,800
Another bank is also offering favorable terms, so Rahul decides to take a loan of $14,000 from this bank. He signs the loan contract at 9% compounded daily for four months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan’s term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
Answer: $14,426.43
Explanation:
At the end of 4 months and assuming a 12 months and 365 days in a year, the formula to be used to calculate how much Rahul owes is;
We use the formula:
Amount owed = Present Value ( 1 + rate/365 ) ^ 365 * time period
Amount owed = 14,000 * ( 1 + 0.09/365 ) ^ (365 *4/12 )
Amount owed = $14,426.43
What is the most frequent internal motive for a strategic alliance
The most common internal driver for strategic alliance is Part of a resource need.
What is a strategic alliance?A strategic alliance refers to the corporation between the two companies in order to carry down the project. It is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom.
Compared to a joint venture, which involves two companies pooling resources to form a new business organization, the arrangement is less intricate and legally enforceable.
For instance, the partnership between the companies is the strategic alliance to fulfill the needs of resources for each other.
Therefore, it can be concluded that Part of a resource need is the most common internal driver of a strategic alliance.
Learn more about strategic alliance here:
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Bourne Inc., a calendar-year end company, had the following select account balances from its unadjusted trial balance at 11/30/19: Credit Cash Supplies Deferred Revenue Debit $4,000 700 $0 The following select transactions occurred during the month of December:
Dec. 1 ---- Purchased $2,000 worth of supplies on account. The "Supplies" account was increased at that time.
Dec. 1 ---- Received $6.000 from a customer for services to be performed evenly over the next six months (beginning in December). The "Deferred Revenue account was increased when the cash receipt was recorded.
Dec. 1 ---- Financed the purchase of land by signing a nine-month, 12%, note payable. The amount financed was $40.000.
Dec 15 - Paid for the Dec 1 purchase of supplies in full.
At the end of December, the following information is also available:
• A physical count of supplies reveals supplies costing $800 are still on hand (unused). Required: In the General Journal which starts on the next page:
• Journalize the four December transactions, and
• Journalize any necessary December 31 adjusting journal entries related to the above transactions in order to properly reflect revenues and expenses for the accounting period. Note: If necessary, round adjusting entry calculations to the nearest whole month and to the nearest whole dollar. Note: Journal entries must be in proper form (ex. debits before credits, indent credits) to receive full credit. Explanations should not be included. Skip a line between each journal entry. Date Account Name Debit Credit
Answer:
Bourne Inc.
Journal entries
Date Account Name Debit Credit
1-Dec Supplies $2,000
Accounts Payable $2,000
1-Dec Cash $6,000
Deferred Revenue $6,000
1-Dec Land $40,000
Notes Payable $40,000
15-Dec Accounts Payable $2,000
Cash $2,000
Adjusting entries
Date Account Name Debit Credit
31-Dec Supplies expense $1,900
($700 + $2,000 - $800)
Supplies $1,900
31-Dec Deferred Revenue $1,000
($6,000/6)
Service Revenue $1,000
31-Dec Interest expense $400
($40,000*12%* 1/12)
Interest Payable $400
While in India you purchased a hat for $15 U.S. How many rupees would you have to pay if each rupee was .032 U.S. dollars? 48 rupees 213.33 rupees 450.48 rupees 468.75 rupees
Answer:
468.75 rupees
A regulatory agency that protects workers is
A. OSHA
B. EPA
C. FDA
D. SEC
Answer- A. OSHA
Answer:Its A
Explanation:
Just took the quiz
Answer: A. OSHA
Explanation: This is the correct answer on Edge 2020 (just took the quiz and made a 100% ^-^).
