On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: • The supplies account balance on December 31 is $5,635. The supplies on hand on December 31 are $1,495. • The unearned rent account balance on December 31 is $4,600 representing the receipt of an advance payment on December 1 of four months’ rent from tenants. • Wages accrued but not paid at December 31 are $2,035. • Fees earned but unbilled at December 31 are $15,450. • Depreciation of office equipment is $4,420. Required: 1. Journalize the adjusting entries required at December 31. Refer to the Chart of Accounts for exact wording of account titles. 2. What is the difference between adjusting entries and correcting entries?

Answers

Answer 1

Answer and Explanation:

Date       Adjusting entries Debit Credit Asset Liabilities Equity  

Dec 31 Supplies Expense $4,140                  Decrease

                          To  Supplies   $4,140 Decrease

(Being the supplies expense is recorded)

It is computed below:

= Account balance - still on hand

= $5,635 - $1,495

= $4,140    

Dec 31 Unearned Rent revenue $1,150   Decresae    

                       To Rent revenue  $1,150                             Increase

(Being the unearned rent revenue is recorded)

It is computed below:

= $4,600 ÷ 4 months

= $1,150

Dec 31 Wages Expense $2,035                                Decrease

                    To Wages payable $2,035   Increase

(Being the wages expense is recorded)  

Dec 31 Accounts Receivable $15,450 Increase  

               To  Fees earned $15,450                              Increase

(Being the fees earned is recorded)  

Dec 31 Depreciation expense   $4,420                      Decrease  

            To Accumulate depreciation                          

                    - Office Equipment $4,420 Decresae  

(Being the depreciation expense is recorded)  

2 Adjusting entries are the entries that are to be adjusted at the end of the accounting period but it is planed but the correcting entries are not planned it is required when we want to just correct the errors


Related Questions

Bob, proprietor of Bob's Burgers, would like to retire in 20 years. He plans to deposit $6500 at the end of each year for the next 20 years into an account expected to earn 7.5% compounded annually. How much will Bob have in his retirement account in 20 years immediately after making his last deposit

Answers

Answer:

$281,480

Explanation:

we need to find the future value of the annuity payments, we can use the future value of annuity formula (I couldn't find an annuity table for 7.5%):  

future value = annual payment x [(1 + r)ⁿ  - 1] / r

annual payment = $6,500r = 7.5%n = 20 years

future value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075 = $6,500 x 43.30468 = $281,480

The amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.

Future value:

Using this formula

Future value =Annual payment x [(1 + Interest rate)^Number of years  - 1] / Interest rate

Where:

Annual payment = $6,500

Interest rate = 7.5% or 0.075

Number of years= 20 years

Let plug in the formula

Future value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075

Future value=$6,500 x [(1 .075)²⁰ - 1] / 0.075

Future value=$6,500 x [(4.24785) - 1] / 0.075

Future value=$6,500 x [3.24785]/ 0.075

Future value = $6,500 x 43.30467

Future value= $281,480

Inconclusion the amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.

Learn more about future value here:https://brainly.com/question/24703884

Suppose that a small company that makes a standardized product is experiencing an increase in sales even though it has a small geographic footprint. Currently, the founder makes all of the strategic decisions but is beginning to feel overwhelmed. She has decided to pursue a cost-leadership strategy going forward. In order for the firm to achieve its goals, which of the following business-level structures should the firm adopt?

a. an ambidextrous functional structure
b. a centralized functional structurea flexible organic structure
c. a centralized multidivisional structure
d. a simple structure with the founder's imprint

Answers

Answer: b. a centralized functional structure

Explanation:

Cost Leadership refers to a situation where a company is better at cost management that other companies in the industry. If a company can produce at a lower cost, they can capture more market share and be more profitable.

When a company wants to engage in cost Leadership one of the best structures to adopt is the Centralised functional structure. This is when decisions are usually made at a top management level in a company that is divided by functions such as Information Technology, Sales, Marketing etc.

By making the structure centralised, the company can make Standardised products on a company wide basis which is very effective in cost saving as the company is able to plan better and spend less because they will be buying resources and producing in bulk. That advantage from Economies of Scale will keep their costs low.

You are seeking a bank loan for $12000 and go to Prosper Bank and to Skyline Bank to see which loan has a lower rate. Your plan is to open a restaurant, which is quite risky. Prosper Bank expects that it could recover $10,000 if you defaulted while Skyline thinks it would only recoup $9000. However, Skyline puts your probability of repayment at 97% while Prosper only has it at 96%. Which loan has the lower interest rate? Assume both banks are aiming to earn 6%.

Answers

Answer:

SKYLINE = 6.96%, PROSPER = 6.94%.

Explanation:

So, in the question above we are given the following parameters or information or data as;

=> Amount of bank loan been seeked for = $12000.

=> "Prosper Bank expects that it could recover $10,000 if you defaulted while Skyline thinks it would only recoup $9000."

=> " Skyline puts the probability of repayment at 97% while Prosper only has it at 96%."

=>" both banks are aiming to earn 6%."

So, for both banks we will be making use of the formula below:

L × (1 + RER) = POR × L × (1 + IRCr) + (1 - POR) × RCD.

Where L = loan, RER = required earning rate, POR = probability of repayment, IRCr = interest rate charged and RCD = Recovery in case of default.

(A). FOR PROSPER BANK:

12000 × ( 1 + 6%) = 96% × 12000 × (1 + IRCr) + (1 - 96% ) × 10000.

SOLVING FOR IRCr, we have;

interest rate charged = 6.94%.

(B). FOR SKYLINE BANK;

12000 × (1 + 6%) = 97% × 12000 × (1 + IRcr ) + (1 - 97%) × 9000.

IRCr =6.96%.

Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.For the Federal Reserve, what are assets? What are liabilities?

Answers

Answer:

The correct answer to the following question will be "Treasury bills, Monetary Base ". The further explanation is given below.

Explanation:

(A)...

Assets: $300 (tax bills)  

If it's bought by Federal Reserve, it's going to be the asset portion.

(B)...

Reserves: $300 (Commercial Banking liabilities)  

Based mostly on reserve requirements, banks would then deposit funds to Federal Reserve. All of the lenders will carry through.

(C)...

Treasury Deposits or bills = -$300  

Certain bills would go down by $300 as either a result of Federal Reserve purchases.

(D)...

Bookings or Reserves: + $300  

This would be growing by $300 because of the sale of treasury bills. It won't bring any changes to the aspect of liability.

If researchers add financial treasury obligations with reserves as well as circulating documents, so it becomes a financial basis. Such that the answer given is indeed the appropriate one.

Caroline runs her own business selling horse related products (saddles, boots, bridles, etc.). She is considering investing $70,000 into an operating systems for security and data management for online ordering. After 8 years the equipment has a salvage value of $18,000. In the third year a major update is expected to cost $5,000. The operating costs per year are $2,000 for license and IT contracts.
a) Draw the cash flow diagram.
b) What is the present value the expected costs of the new security and data management system (including salvage value) using a 5% interest rate?

Answers

Answer:

The present value the expected costs of the new security and data management system is $-75,062.5

Explanation:

Kindly check attached picture for explanation

. Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will borrow ​$1 comma 823 from​ Wendy, who will charge him 4​% on the loan. He will also borrow ​$1 comma 533 from​ Bebe, who will charge him 6​% on the​ loan, and ​$644 from​ Shelly, who will charge him 12​% on the loan. What is the weighted average cost of capital for​ Eric? What is the weighted average cost of capital for​ Eric?

Answers

Answer:

6.04%

Explanation:

The weighted average cost of capital (WACC) can be described as the average rate that is expected that a business will pay to finance its assets to all holders of its security.

The weighted average cost of capital (WACC) can be estimated as the summation of the products of the weight of each loan in the total loan and their interest rate for this question as follows:

Total loan amount = $1,823 + $1,533 + $644 = 4,000

Weight of loan from Wendy = $1,823 / $4,000 = 0.46, or 46%

Weight of loan from Bebe = $1,533 / $4,000 = 0.38, or 38%

Weight of loan from Shelly = $644 / $4,000 = 0.16, or 16%

Weighted average cost of capital  = (46% * 4%) + (38% * 6%) + (16% * 12%) = 6.04%.

Therefore, the weighted average cost of capital for​ Eric is 6.04%.

How many years would it take for Jughead to save an adequate amount for retirement if he deposits $2,000 per month into an account beginning today that pays 12 percent per year if he wishes to have a total of $1,000,000 at retirement

Answers

Answer:

The number of year needed to save the amount = 36.2739

Explanation:

The annual deposit amount (A) = $2000

Annual interest rate (r ) = 12 %

The retirement amount or the expected amount at the time of retirement (FV)  = $1000000

Number of years = n

So if the Jughead want the retirement amount $1000000 that has interest rate 12 percent then we need to calculate the number  of years.

Below is the calculation of number of years.

[tex]FV = A \frac{(1 + r)^{n}}{r} \\1000000 = 2000 \frac{(1 + 12 \ percent )^{n} - 1}{12 \ percent} \\\frac {1000000}{2000} = \frac{(1 + 12 \ percent )^{n} - 1}{12 \ percent} \\500 = \frac{(1 + 0.12)^{n} - 1}{0.12} \\ n = 36.2739 \ years[/tex]

As part of an economics class project, students were asked to randomly select 500 New York Stock Exchange (NYSE) stocks from the Wall Street Journal. As part of the project, students were asked to summarize the current prices (also referred to as the closing price of the stock for a particular trading date) of the collected stocks using graphical and numerical techniques. Would this be an application of descriptive or inferential statistics

Answers

Answer:

Descriptive Statistics

Explanation:

Descriptive Statistics is a technique in which data is collected and then analysis is made on the selected data through numerical techniques or graphs. In the given question the students have selected stocks and are analyzing its performance through graphical and numerical technique. This is descriptive statistics.

Mojo Mining has a bond outstanding that sells for $1,061 and matures in 25 years. The bond pays semiannual coupons and has a coupon rate of 6.1 percent. The par value is $1,000. If the company's tax rate is 39 percent, what is the aftertax cost of debt

Answers

Answer:

3.44%

Explanation:

For computing the after tax cost of debt we need to apply the RATE formula i.e shown in the attachment below:

Provided that,  

Present value = $1,061

Future value or Face value = $1,000  

PMT = 1,000 × 6.1% ÷ 2 = $30.5

NPER = 25 years × 2 = 50 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula,

1. The pretax cost of debt is 2.82% × 2 = 5.64%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 5.64% × ( 1 - 0.39)

= 3.44%

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash DisbursementsJanuary $525,000 $475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed. based on the beginning balance of the loan for the month. The company repays loan principal with available cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year

Answers

Answer:

                                           Kayak Co.

                                         Cash Budget

                                                January        February         March

Cash inflows:                         $525,000      $400,000     $450,000                  

Cash outflows:                      ($475,000)    ($350,000)    ($525,000)

Monthly cash flow:                  $50,000        $50,000      ($75,000)          

Monthly interests:                       ($600)             ($106)                 $0

Initial cash balance:                $30,000         $30,000        $69,294

Ending cash balance:             $79,400          $79,894        ($5,706)

Required bank loan:                        $0                   $0         $35,706

Payment of bank loan:          ($49,400)        ($10,600)                $0

Total                                        $30,000         $69,294       $30,000          

Explanation:

                               Cash Receipts          Cash Disbursements

January                      $525,000               $475,000

February                    $400,000               $350,000

March                         $450,000               $525,000

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

A part of a business's message that distinguishes it from all its competitors

is referred to as what?

Answers

Answer: Brand.

Explanation:

A brand usually a logo, name,  word or sentence or the comnbination  is  a company's valuable assets that  distinguishes its  their product from its competitors. Overtime, A Brand which proves credibility will promote the company's worth and value  and endear potential buyers   to the benefit  its owners and shareholders.   A brand becomes a trademark when legal protection is conferred on it.

Answer:

unique selling proposition

Explanation:

Calvin Manufacturing purchased new equipment that reduces setup times when employees change templates between production runs. This equipment has also improved quality control measures throughout the entire manufacturing process. What type of technology is Calvin Manufacturing using

Answers

Answer:

Lean production

Explanation:

Lean production refers to the management approach in which the company reduced its cost or do cost cutting so that it can improve the quality of their product and services. It is applied to each level each department of management like - design, production, etc

In the given situation, Calvin Manufacturing reduced their setup times that results in improving their quality control measures

So this situation represent the lean production technology

You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year forever. However, you recognize that those cash flows are uncertain. a. Suppose you believe that the beta of the firm is 0.4. How much is the firm worth if the risk-free rate is 4% and the expected rate of return on the market portfolio is 11%

Answers

Answer:

PV or value of the firm = $147058.8235

Explanation:

To calculate the worth of the firm, we first need to determine the required rate of return of this firm. Using the CAPM equation, we calculate the required rate of return to be,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free raterM is the return on market

r = 0.04 + 0.4 * (0.11 - 0.04)

r = 0.068 or 6.8%

As the firm is expected to generate a constant cash flow forever, it can be treated as a perpetuity. To calculate the value of the firm, we use the present value of perpetuity. The formula for present value of perpetuity is,

PV = Cash flow / r

Where,

r is the required rate of return

PV or value of the firm = 10000 / 0.068

PV or value of the firm = $147058.8235

Markysha needs to know the cost variance of her project to determine if it is under budget or over budget. To do this she decides to use _________ to compare her project's performance to the expected progress.

Answers

Answer:

Earned value management

Explanation:

Markysha decided to use Earned value management for this comparison.

Earned Value Management  helps project managers to measure project performance.

It is a project management process that is used to find variances in projects by comparing project's performance to the expected progress. It is useful on cost and schedule control and can be very beneficial when it comes to forecasting during projects.

Zimmerman Company's annual accounting year ends on December 31. It is December 31, 2014, and all of the 2014 entries
except the following adjusting entries have been made:

a. On September 1, 2014, Zimmerman collected six months' rent of $8,400 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,400.
b. On October 1, 2014, the company borrowed $18,000 from a local bank and signed a 12 percent note for that amount. The principal and interest are payable on the maturity date, September 30, 2015.
c. Depreciation of $2,500 must be recognized on a service truck purchased on July 1, 2014, at a cost of $15,000.
d. Cash of $3,000 was collected on November 1, 2014, for services to be rendered evenly over the next year beginning on November 1, 2014. Unearned Service Revenue was credited when the cash was received.
e. On November 1, 2014, Zimmerman paid a one-year premium for property insurance, 9,000, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
f. The company earned service revenue of $4,000 on a special job that was completed December 29, 2014. Collection will be made during January 2015. No entry has been recorded.
g. At December 31, 2014, wages earned by employees totaled $14,000. The employees will be paid on the next payroll date, January 15, 2015.
h. On December 31, 2014, the company estimated it owed $500 for 2014 property taxes on land. The tax will be paid when the bill is received in January 2015.

Required:
1`. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued
expense.
2. Give the adjusting entry required for each transaction at December 31, 2014.

Answers

Answer:

abcdefghijklmnopqrstuvwxyz

Outline the steps that you would take to ensure a successful conversion from the existing call center system to the new EHR-compatible system. Defend your response. Who should be involved in the conversion planning and implementation

Answers

Answer:

I. The steps to be taken are:  

Scoping the project: Every project must have a scope. That is a scope of what needs to be achieved. Engaging a conversion expert: One must look out for someone experienced and whose prices are affordable. It's best to seek out references before engaging a conversation specialist and if possible, background checks done as he or she will be handling very sensitive data.Execution of the Project: Usually, the first version of the project will have some bugs which will necessitate upgrades and updates. These updates and upgrades are part of the process.Collaborating with the Conversion Specialist: During projects of this nature, one will need to work with other professionals outside of ones normal workforce. This human to human interaction may look simple but is critical as the specialist cannot do his or her job if they are not guided by someone internal who knows the process very well.Testing, Validating, and Iterating

After the old records have been installed onto the new EHR system, it will be time to see if it really works. At this stage, debugging is very frequent. What works will be noted and what doesn't is fixed. Then the system is tested all over again.    

   6. Ensure that Import and Extraction work as planned.

Extraction and Importation are key features of an efficient EHR system. Data needs to be imported into the database, and reports/ information need to be extracted at one point or the other.

7.  Tidying up Work Flow

The EHR is built to ease the administration of patients. If there are any errors or inadequacies, it will be highlighted at this stage. The conversion specialist will be available to ensure that any correction in this regard is effected.

 8. Launch: This simply means going live with the new system.

II Those who will be responsible for the conversion planning and implementation are:

1. Internal Staff. Depending on the organisation, Heads of teams and key members of staff whose opinions are valued and who understand the system and the big picture (in terms of what the strategic objective of the new system) will be on the conversion, planning and implementation team.

2. Conversion Specialist will also be required. This person most likely will be a third party and is very crucial to the project.

Cheers!

On July 1, Perry Company signed a note with principal of $80,000 and a stated interest rate of 4%. The principal and interest are due on April 1 of the following year. Perry will accrue interest on December 31st.

$80,000 * 4% * 6/12 = $1,600 Interest is always stated as an annual rate regardless of loan term. The 4% interest is annual and must be multiplied by 6/12 to account for the six months july-december when recording the accrued interest on 12/31.

Required:
What is an example of accrued receivable?

Answers

Answer:

$1,600

An example of accrued receivable is recording interest revenue before it is been received.

Explanation:

Principal =$80,000

Interest rate =4%.

July to December =6 months

Hence:

$80,000 * 4% * 6/12

=$80,000×0.04×0.5

= $1,600

Perry accrued interest on December 31st is $1,600

An example of accrued receivable is recording interest revenue before it is been received.

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. Harry Starbucks Dunkin Donuts Sally Starbucks H:1,S:1 H:0,S:0 Dunkin Donuts H:0,S:0 H:1,S:1 What is Harry's best strategy?

Answers

Answer:

Harry has no best strategy

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for a player where no player has an incentive to change their decisions.

If Harry and Sally goes to Dunkin Donuts, they both have a payoff of 1. If they go to different restaurants they have a payoff of zero. If they both go to Starbucks, they have a payoff of 1. Harry doesn't have a clear best strategy. So , he doesn't have a best strategy.

I hope my answer helps you

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $350 to establish the petty cash fund.
15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $109.20 for janitorial services.
b. Paid $89.15 for miscellaneous expenses.
c. Paid postage expenses of $60.90.
d. Paid $80.01 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $26.84 remaining in the petty cashbox.
16 Prepared a company check for $200 to increase the fund to $550.
31 The petty cashier reports that $370.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $59.10.
g. Reimbursed the office manager for business mileage, $47.05.
h. Paid $48.58 to deliver merchandise to a customer, terms FOB destination.
31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500.
Required:
1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)

Answers

Answer:

1-May

Dr Petty cash 350

Cr Cash 350

15-May

Dr Janitorial services 109.20

Dr Miscellaneous 89.15

Dr Postage expense 60.90

Dr Advertisement expense 80.01

Cr Cash over and short 16.1

Cr Cash 323.16

16-May

Dr Petty cash 200

Cr Cash 200

31-May

Dr Postage expense 47.05

Dr Mileage expense 38.5

Dr Delivery expense 48.58

Cr Cash 134.13

31-May

Dr Cash 50

Cr Petty cash 50

Explanation:

Kiona Co Journal entries

1-May

Dr Petty cash 350

Cr Cash 350

15-May

Dr Janitorial services 109.20

Dr Miscellaneous 89.15

Dr Postage expense 60.90

Dr Advertisment expense 80.01

Cr Cash over and short 16.1

Cr Cash 323.16

(350-26.84)

16-May

Dr Petty cash 200

Cr Cash 200

31-May

Dr Postage expense 47.05

Dr Mileage expense 38.5

Dr Delivery expense 48.58

Cr Cash 134.13

31-May

Dr Cash 50

Cr Petty cash 50

Cash flows of two mutually exclusive projects are as follows. Project A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Project B has initial cost of $120,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. Assume the interest rate is 10% per year. Which of the following statements is true?A. Two projects have different life cycleB. Project A should be selected.C. The present worth of project A is -$143,252.17.D. The present worth of project B is -$109,842.22.

Answers

Answer:

C. The present worth of project A is -$143,252.17

Explanation:

Present worth can be calculated using a financial calculator

For method A ,

Cash flow in year 0 = $80,000

Cash flow in year 1 and 2 = $30,000

Cash flow in year 3 = $30,000 - $15,000 = $15,000

I = 10%

Present worth= $ 143,335.84

For method B,

Cash flow in year 0 = $120,000

Cash flow in year 1 and 2 = $8, 000

Cash flow in year 3 = $8,000 - $40,000 = $-32,000

I = 10%

Present worth = $130,157.78

Method b would is chosen because it worth less.

To find the present worth using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders’ equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders’ equity of $200,000. Included in Sedan’s liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable.
Based on the preceding information, what amount of total assets did Pickup report in its balance sheet immediately after the acquisition?
a. 1,100,000
b. 1,000,000
c. 800,000
d. 1,600,000

Answers

Answer:

c. $800,000

Explanation:

Relevant data provided

Beta reported total assets = $600,000

Fair value of investment = $200,000

The computation of total assets is shown below:-

Total assets did beta report = Beta reported total assets + Fair value of investment

= $600,000 + $200,000

= $800,000

Therefore for computing the total assets did beta report we simply added the beta reported total assets with fair value of investment.

Which of the following is an expense of this period? Multiple Choice Costs of items paid for in this period but used up next period Repayment of debt from a loan in a prior period Cost of land purchased and paid for this period Costs of items used up this period but paid for next period

Answers

Answer: Costs of items used up this period but paid for next period

Explanation:

Period Expenses for the period are transactions that should be expensed because they were used in the current period.

Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.

From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.

The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.

Allyson Gomez invests $8,000 today in an investment that earns 6 percent per year (compounded annually) for 25 years. The average inflation rate is expected to be 1.8 percent per year. She will have much more than $8,000 in 25 years BUT what would this future amount be if expressed in today’s dollars? a. $34,335 b. $21,981 c. $52,306 d. $12,496 e. $21,839

Answers

Answer:

B

Explanation:

The first thing to do here is to calculate what the amount of money invested would be in 25 years given the interest rate.

Mathematically, that can be written as;

V = P(1 + r)^n

Where V is the future value

P is the present value which is $8,000

r is interest rate which is 6% (6/100 = 0.06)

n is the number of years which is 25 years

Now plugging these values into the equation, we have

V = 8,000(1 + 0.06)^25

V = 8,000(1.06)^25

V = $34,334.97 which is approximately $34,335

We can now proceed to get what this future value would be today if we take the inflation rate into consideration

Mathematically, this can work as follows

P = V(1 + i)^n

Where P is the present value of the money when the inflation is taken into consideration

V is the future value of the money which was calculated from above as $34,335

i is the inflation rate which is 1.8% per annum = (1.8/100 = 0.018)

n is the number of years which is 25

Substituting these values, we have;

P = 34,335/(1 + 0.018)^25

P = 34,335/(1.018)^25

P = 21,980.75

Which is approximately P = $21,981

If the Apple corporation sells a bond it is a. selling shares of ownership directly to the public. b. borrowing indirectly from the public. c. borrowing directly from the public. d. selling shares of ownership indirectly to the public.

Answers

Answer:

c. borrowing directly from the public.

Explanation:

If the Apple corporation sells a bond it is borrowing directly from the public.  That is because corporate bonds are exactly that, they are bonds issued by a corporation in which the individual buying them is basically loaning money to the corporation which they will receive back the full amount that they loaned out as soon as the bond matures. Therefore by buying a corporate bond you are directly loaning that corporation money to finance their operations.

If Apple Corporation sells a bond, it is borrowing indirectly from the public. Therefore, the correct option is b.

A bond is a debt instrument issued by a corporation or government entity to raise funds. When Apple sells a bond, it is essentially borrowing money from investors or the public. In return, Apple promises to repay the principal amount of the bond along with periodic interest payments. Bonds do not involve selling shares of ownership in the company, as in the case of issuing stocks. Instead, bonds represent a form of debt financing for the issuer.

Thus, the ideal selection is option b.

Learn more about bond here:

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Swifty Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.
Instructions:
Set up a schedule of interest expense and discount amortization under the straight-line method.
Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective-interest rate must be computed.)

Answers

Answer:

Find attached amortization schedule for the interest expense and discount amortization under both methods.

Explanation:

Under straight line the discount amortization per year is total discount on bonds payable divided by 5 years.

Under effective method, I first of all computed the yield to maturity on the bind using rate formula in excel, the discount amortization each is the interest expense minus the coupon payment.

Problem 11-1A Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $2,500 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $54,000. __

Answers

Missing information:

__?__ Paid the amount due on the note to Locust at the maturity date.

__?__     Paid the amount due on the note to NBR Bank at the maturity date.

Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.

Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

2017

__?__  Paid the amount due on the note to Fargo Bank at the maturity date.

Required: prepare journal entries

Answer:

2016 Apr. 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30.

April 20, 2016, merchandise purchased on account

Dr Merchandise inventory 37,500

    Cr Accounts payable 37,500

May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $2,500 in cash.

May 19, 2016, replaced account payable with note payable

Dr Accounts payable 37,500

    Cr Cash 2,500

    Cr Notes payable 35,000

July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $54,000.

July 8, 2016, borrowed $54,000 from bank

Dr Cash 54,000

    Cr Notes payable 54,000

__?__ Paid the amount due on the note to Locust at the maturity date.

August 17, 2016, paid note payable to Locust

Dr Note payable 35,000

Dr Interest expense 690.41 ($35,000 x 8% x 90/365)

    Cr Cash 35,690.41

__?__     Paid the amount due on the note to NBR Bank at the maturity date.

November 5, 2016, paid bank's debt.

Dr Notes payable 54,000

Dr Interest expense 1,775.34 ($54,000 x 10% x 1220/365)

    Cr Cash 55,775.34

Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.

November 28, 2016, borrowed $24,000 from bank

Dr Cash 24,000

    Cr Notes payable 24,000

Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

December 31, 2016, accrued interests on bank debt

Dr interest expense 130.19 (= $24,000 x 6% x 33/365)

    Cr Interest payable 130.19

2017

__?__  Paid the amount due on the note to Fargo Bank at the maturity date.

January 27, 2017,  paid bank's debt.

Dr Note payable 24,000

Dr Interest payable 130.19

Dr Interest expense 106.52 (= $24,000 x 6% x 27/365)

    Cr Cash 24,236.71

Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager estimates that he can increase monthly sales volume by $45,000 by spending an additional $7,000 per month for direct mail advertising. Compute the monthly increase in operating income if the manager's estimate about the increased sales volume is accurate.

Answers

Answer:

$11,000

Explanation:

The computation of the monthly increase in operating income is shown below:

= Sales volume × contribution margin ratio - additional spending done on the direct mail advertising

= $45,000 × 40% - $7,000

= $18,000 - $7,000

= $11,000

We simply applied the above formula so that the monthly increase in operating income could be determined.

Select the best closing paragraph of a bad-news letter. a. Once again, we want to express how sorry we are that we are not able to offer you the position. b. We wish you the best in your job search. c. If you have further questions about this decision, please feel free to call me immediately. d. We regret that we are unable to consider your application

Answers

Answer:b

Explanation:

Ecco Company sold $147,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $120 part replacement, plus $84 labor under the warranty.
a. Provide the journal entry for the estimated expense on September 30.
b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank.

Answers

Answer:

a. Provide the journal entry for the estimated expense on September 30.

September 30, warranty liability

Dr Warranty expense 8,820

    Cr Warranty liability 8,820

b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank.

October 15, warranty work

Dr Warranty liability 204

    Cr Inventory - parts 120

    Cr wages payable 84

Warranty expense must be recognized during the period that the associated sales are made, and as the expenses are accrued, you should debit the warranty liability account.

One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The bondholder is owed a coupon payment of $50, and the stockholder is promised a dividend of $50.

Which of the following is the likeliest outcome of this situation?

a) The bondholder is paid $50

b) The stockholder is paid $50

c) Each investor is paid $25

d) The company keeps the $50 as retained earnings

e) None of these outcomes are likely to happen

2) Assume you bought a share of stock a year ago at a certain price, and today you need the money, so are forced to sell it even though the price has decreased.

Which of the following statements is true?

a) The stock's dividend yield is negative.

b) The stock's dividend yield is positive.

c) The stock's capital gains yield is negative.

d) The stock's capital gains yield is positive.

e) The stock's current yield is negative.

Answers

Answer:

The correct option for the first question is A,the bondholder is paid $50

The correct option for the second question is C,the stock's capital gains yield is negative

Explanation:

The company has to pay the $50 owed to bondholder as payment of coupon payment takes precedence over payment of dividends.

It would be inappropriate to keep the $50 in retained earnings since there is a covenant in the agreement signed with bondholders that their coupon payment annually is mandatory.

The correct answer to the second question is that the stock's capital gains yield is negative.

Capital gains yield =the price now(which is lower)-original price/original price

Since the numerator would give a negative figure,overall yield is negative

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