Answer and Explanation:
The adjusting entries are as follows:
a. Interest Expense $286
To Interest Payable $286
(Being the interest expense is recorded)
b. Accounts Receivable $1,314
To Service Revenue $1,314
(Being the service performed but unbilled is recorded)
c. Wages and Salary Expense $767
To Salary and Wages Payable $767
(Being wages and salary expense is recorded)
d Bad Debt Expense $876
To Allowance for Doubtful Accounts $876
(Being the bad debt expense is recorded)
If opening capital is ks 70000 and closing capital is ks 90000, what is the amount of profit or loss
Answer:
20,000
Explanation:
The computation of the amount of profit or loss is given below:
As we know that
Closing capital = opening capital + profit or loss - drawings
90,000 = 70,000 + profit or loss - 0
Profit = 90,000 - 70,000
= 20,000
Hence, the amount of profit is 20,000
At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations:
1. Estimated warranty expense, $16 million temporary difference: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).
2. Depreciation expense, $120 million temporary difference: straight-line in the income statement; MACRS on the tax return.
3. Income from installment sales of properties, $20 million temporary difference: income recorded in the year of the sale; taxable when received equally over the next five years.
4. Rent revenue collected in advance, $24 million temporary difference; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year.
Required:
Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 25%.
Answer:
$25 million net differed tax liability
Explanation:
The computation is shown below;
Net deferred tax liability is computed as;
= (Taxable temporary difference - Deductible temporary difference) × Tax rate
= ($120 million + $20 million - $16million - $24million ) × 25%
= $100 million × 25%
= $25 million
The above shows the net deferred tax liability of $25million hence same is to be considered.
Because Delta Development Services is the only company that supplies a critical product for clients, customers of Delta are likely to
Answer: put up with poor-quality products
Explanation:
Based on the information given, Delta Development Service is a monopoly that is , the sole provider of a ceetain good.
Because the company is the only provider, such company will charge a high price for its good and also won't try to improve the quality of its product
Because Delta Development Services is the only company that supplies a critical product for clients, customers of Delta are likely to put up with poor-quality products.
g True or False and then Explain: Firm profits are always higher if the firm can engage in third degree price discrimination than if it has to charge different groups the same price.
Answer:
true
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
If a company charges different prices to different groups, they would be charging at prices customers would be willing to pay
Orange Corporation has budgeted sales of 18,000 units, targeted ending finished goods inventory of 4,000 units, and beginning finished goods inventory of 3,000 units. How many units should be produced next year?
Answer:
19,000 units
Explanation:
The applicable formula is the formula for calculating the cost of goods sold.
COGS = beginning inventory+ purchases(production) - ending inventory
COGS will be Budgeted sales = `18,000
Beginning inventory =3,000
Ending inventory =4,000
18,000 = 3,000 + P - 4,000
18,000 = 3,000- 4,000 + P
18,000 = -1000 + P
P= 18,000+1000
P= 19,000
The balanced scorecard can be made more effective by developing it at a detail level so that employees:
Answer: can see how their actions contribute to the success of the firm.
Explanation:
The balanced scorecard shows the results of the actions that a particular company has already taken. It is used by the managers to track of activities that are to be executed and to also monitor the consequences of the actions that were taken.
The balanced scorecard can be made more effective by developing it at a detail level so that employees can see how their actions contribute to the success of the firm.
Bob invests X in an account that pays interest at an annual effective rate of 8%. Ten years later, he withdraws X. Ten years after that, he withdraws 1,000, which exhausts the account. Calculate X.
Answer:
$399.68
Explanation:
The computation of X is shown below:
X = X ÷ (1 + 0.08)^10 + $1,000 ÷ (1 + 0.08)^20
= X ÷ 2.158925 + 214.548207
X - X ÷ 2.158925 = 214.548207
2.158925X - X ÷ 2.158925 = 214.548207
1.158925X = 214.548207 × 2.158925
X = 2.14548207 × 2.158925 ÷ 1.158925
= $399.68
Jorge and Anita, married taxpayers, earn $142,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $104,500 of taxable income, what is their marginal tax rate on this income
Answer:
Jorge and Anita
Their marginal tax rate on their income is 24%.
Explanation:
a) Data and Calculations:
Taxable income = $142,000
Interest from municipal bonds = $49,000
Additional taxable income = $104,500
Total taxable income:
Taxable income = $142,000
Additional taxable income = $104,500
Total = $246,500
Their joint income is within the $165,601 - $315,000 band, which attracts 24% marginal tax rate.
b) Note that income from investing in municipal bonds is generally exempt from Federal and state taxes, especially for residents of the issuing state, except capital gains attributed to the investment.
True/False: ABC Corporation is concerned that its employees are spending too much work time talking on the telephone, sending e-mails, and using the internet for personal use. ABC Corporation begins to monitor its employees’ work email. ABC Corp is most likely protected under the law.
Answer: True
Explanation:
ABC Corp. employees’ work email is a service provided by the company for the employees to perform work-related communication and as such is considered the property of ABC Corp. which means that they are well within their rights to monitor these emails with the full protection of the law.
They would be in violation of laws should they begin to monitor personal communication such as private emails.
The given statement is true since the law provides the right to the companies to monitor the activities of their employees within the workplace.
What is law?A law can be defined as a system of rules that are made to govern the activities of the persons on whom it is imposed.
In the given case, the employees can get the privilege of the law that gives them the right to privacy. Under this law, the employer cannot monitor the personal emails and information of the employee even if they are sent from the workplace.
But on the other hand, the law benefits the employer by monitoring the work emails of the employees and taking corrective actions if necessary.
Therefore the statement is true.
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Melanie owns a bakery and has just purchased new powerful mixing machines that will increase her daily output of baked goods. This is an example of an investment in:
Answer:
A
Explanation:
Here are the options :
A.physical capital.B.technology.C.human capital.D.financial capital.
Physical capital can be described as tangible, man-made objects used to produce goods. They include machinery, cars
Swifty Corporation had 296000 shares of common stock issued and outstanding at December 31, 2020. During 2021, no additional common stock was issued. On January 1, 2021, Swifty issued 408000 shares of nonconvertible preferred stock. During 2021, Swifty declared and paid $170000 cash dividends on the common stock and $158000 on the nonconvertible preferred stock. Net income for the year ended December 31, 2021, was $957000. What should be Swifty's 2021 earnings per common share, rounded to the nearest penny
Answer:
2.70
Explanation:
Calculation for What should be Swifty's 2021 earnings per common share, rounded to the nearest penny
Earnings per common share=($957,000 - $158,000)/296,000
Earnings per common share=$799,000/296,000
Earnings per common share= 2.70
Therefore What should be Swifty's 2021 earnings per common share, rounded to the nearest penny is 2.70
To succeed in today's competitive marketplace, companies need to be customer centered. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves:
Answer:
market segmentation,
Market targeting, differentiation
Explanation:
It should be noted that To succeed in today's competitive marketplace, companies need to be customer centered. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments in a process involving market segmentation,Market targeting, differentiation.
Differentiation in marketing can be regarded as the creation of specialized products which is able to have competitive advantage along with a section of the market.
Market segmentation can be regarded as process involving division of heterogeneous market to relatively more homogenous segments according to particular parameters such as geographic, psychographic as well as demographic.
Market targeting can be regarded as
process involving selection of target market from the whole market. It
encompass groups of buyers that the company is striving to satisfy and set price for.
A legal and binding form of business ownership whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory is known as a(n)
Answer:
The right approach is "Franchise Agreement".
Explanation:
A franchise agreement would be a legally binding system of management out the structure of the contract between the franchise system as well as its owner. Throughout compensation again for the acquisition of a franchise, this same franchisor generally gets an actual opening service charge as well as a yearly processing fee.Perrine Industrial Inc. just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is 16%
Answer:
$59.44
Explanation:
Calculation for What is the value of the stock if the required return is 16%
Value of the stock= (5.00* 1.07) / 16% - 7%
Value of the stock= = 5.35 / .09
Value of the stock= $59.44
Therefore the value of the stock if the required return is 16% is $59.44
Wealth effect. - Multiplier effect. - Crowding out effect. - Autonomous consumption. - Laffer curve. - Automatic stabilizer. - Permanent income. - Closed economy. - Capital deepening. - Rule of 70. A. Explanation of the slope of AD curve. B. Years to double output. C. 1/MPS. D. Long run average level of income. E. Transfer payments. F. Fall in investment due to increase in G. G. Economy without foreign sector. H. Spending without income. I. Increase capital per worker. J. Lower tax rates lead to higher tax revenues.
Answer and Explanation:
The matching is as follows:
Wealth effect = This would give the AD curve slope explanation
Multiplier effect = 1 ÷ MPS
Crowding out effect = Decline in investment because of rise in G.
Autonoumous consumption= Spending without considering income.
Laffer curve = Lesser tax rates that lead to higher tax revenues.
Automatic stabilizer = Transfer payments.
Permanent income= Long run average income level
Closed economy= Economy without considering foreign sector.
Capital deepening = rise in capital per worker.
Rule of 70 = Number of Years to double output.
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,120 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage
Answer and Explanation:
The computation of the amount of the product and period cost is shown below:
Given that
Total Payment made for Three Years = $3,120
Per Year Payment is
= $3,040 ÷ 3 years
=$1,040
Now
90% of the per year payment is allocated to manufacturing operations
= $1,040 × 90%
= $936
And, 10% is Applied to Selling and Administrative Activities
= $1,040 × 10%
= $104
So, the product and period costs for the first year of coverage are $936 and $104 respectively.
Paige Company estimates that unit sales will be 10,200 in quarter 1, 13,000 in quarter 2, 14,900 in quarter 3, and 18,400 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter’s expected unit sales.
Required:
Prepare a production budget by quarters for the first 6 months of 2017.
Answer:
the answer will be 15%
Explanation:
How big does the return have to be to put a domestic stock fund in the top for the three-year period (to 2 decimals)
Answer:
20.944%
Explanation:
Complete question is: "The average return for large-cap domestic stock funds over the three years (2009-2011) was 14.8%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.8%. How big does the return have to be to put a domestic stock fund in the top 10% for the three-year period (to 2 decimals)?"
Top 10% would be 90th percentile.
Z at 0.9 from standard normal table = 1.28
==>> 1.28*4.8% + 14.8%
==>> 6.144% + 14.8%
==>> 20.944%
According to the equation, the return would be 20.944% that have to be to put a domestic stock fund in the top for the three-year period.
How big does the return have?
Given Information:
standard deviation=4.8%average return=14.8%Top 10% would be 90th percentile.
Z at 0.9 from standard normal table = 1.28
Return= 1.28*4.8% + 14.8%
Return=6.144% + 14.8%
Return=20.944%
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When might you use the Bank Deposit Transaction in Quickbooks Online?
• Your client wants to apply a customer payment to an open invoice
• Your client wants to record an SBA loan amount received
• Your client wants to record sales from her upcoming trade show and provide sales receipts
• Your clients wants to refund a customer
Answer:
• Your client wants to apply a customer payment to an open invoice
Explanation:
• Your client wants to apply a customer payment to an open invoice
A recent comparison between two surgeons revealed a difference in their average cost per case. Describe three possible reasons for the observed difference and how you would determine whether or not the difference was statistically significant.
Answer and Explanation:
The three possible reasons are as follows:
Variables done under survey:
1. The surgical equipment cost may be change in the case when there is various vendor
2. The type or the method might be different in the case when there is a gap of generation between these two doctors
3, The management may given the various targets via revenue as one could work less in order to compensate
Here the mean variable difference would be tested by two means for each and every case or conduct the ANOVA for 3 variables that delievers the study that should be main and descriptive
Suppose that short-term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%. Which gives you the higher after-tax yield if your tax bracket is 30%
Answer:
30%
Explanation:
The computation of the after tax yield of the taxable bond in the case when the tax bracket is 30%
= rate × (1 - tax rate)
= 5% × (1 - 0.30)
= 5% × 0.70
= 3.50%
As we can see that the short term municipal bond is 4%
So this tax bracket should be chosen as the short term municipal bond gives higher after tax yield
Personal-care workers with emotional and social intelligence benefit their clients because _____.
Answer:
Don't know, need points
Explanation:
Answer:
It is because they will be sensitive to clients' needs, wishes, and comfort, even when they are not directly stated
Explanation:
Fill in the blanks with the category of the expanded accounting equation (assets, liabilities, stockholders' equity, dividends, revenues, expenses).
a. Inventory _________
b. Dividends _________
c. Utilities Payable _________
d. Accounts Payable _________
e. Retained Earnings _________
f. Cost of Goods Sold _________
g. Service Revenue _________
h. Rent Expense _________
Answer:
a. Inventory ⇒ Assets
Inventory are considered assets because they are owned by the business for the purpose of generating cash. They are to be sold within a period which makes them current assets.
b. Dividends ⇒ Dividends
Dividends are a share of the profits distributed to the shareholders of a company.
c. Utilities Payable ⇒ Liabilities
Utilities payable are liabilities because they reflect utilities for which the company has not paid. They are current because they must be paid within a period.
d. Accounts Payable ⇒ Liabilities
Accounts payable are companies that the company bought goods from on credit. These are current liabilities as well.
e. Retained Earnings ⇒ Stockholders' equity
Retained earnings are part of the profits that were not distributed to shareholders. They still belong to the shareholders however so they fall under Equity.
f. Cost of Goods Sold ⇒ Expenses
Cost of goods sold refer to the cost of making sales to earn revenue and so are expenses.
g. Service Revenue ⇒ Revenue
h. Rent Expense ⇒ Expenses
Rent expenses as implied, are expenses resulting from occupying a building that does not belong to the company. It is an income statement item.
A company issued 10-year,7%bonds with a par value of $100,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: (round to the nearest dollar)
Answer:
$3,673.70
Explanation:
Discount on issue = $100,000 - $96,526 = $3474
Divide by Total semiannual periods = 10*2 = 20
Semiannual Discount amortization = $3474 /20 = $173.70
Semiannual Cash interest = $100,000*7%/2 = $3,500
Add: Discount amortization = $173.70
Interest expense for the first semiannual interest period = $3,673.70
A portfolio manager at an investment firm is responsible for handling the account of a particular corporate client. The client want to pay the manager a $100K bonus over and above his regular compensation from the investment firm if the manager achieves an 18% annual return on the account. To comply with the Code and Standards, the manager:A. can accept this offer as long as he discloses the arrangement to his employer and receives permission to accept.B. cannot accept this offer because it will interfere with his independence and ability to be objective regarding investment decisions and recommendations.C. can accept this offer and must disclose the bonus to his employer only if he actually receives it.
Answer:
A portfolio manager at an investment firm is responsible for handling the account of a particular corporate client. The client want to pay the manager a $100K bonus over and above his regular compensation from the investment firm if the manager achieves an 18% annual return on the account. To comply with the Code and Standards, the manager:
B. cannot accept this offer because it will interfere with his independence and ability to be objective regarding investment decisions and recommendations.
Explanation:
According to the Standard I(B) guidance of the CFA Institute, it is the responsibility of members "to maintain independence and objectivity." These include avoiding potential conflicts of interest and other adverse circumstances that can prejudice one's judgment. The standard specifically forbids members from offering, soliciting, or accepting any form of gift, benefit, compensation, or consideration that can compromise their independence and objectivity.
True or false: The FASB considers written comments from interested parties before issuing an Accounting Standards Update.
Answer:
True.
Explanation:
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
The FASB considers written comments from interested parties before issuing an Accounting Standards Update based on due process such as open hearing
In ideal situations, the goal of communication is to: a. provide valuable feedback. b. reach mutual understanding. c. commend others. d. better prospects of self-advancement.
Answer:
a. provide valuable feedback.
Explanation:
Communication has often been defined as a two-way process of sending and then receiving information. So what comes first or the goal based on this definition is getting valuable feedback.
Hence, in ideal situations reaching mutual understanding isn't the goal, neither is commending others or self-advancement, but a conscious satisfaction that comes from having received valuable feedback.
For example, if there's no feedback, then the question about mutual understanding isn't relevant.
3. Assume you can earn 9% per year on your investments. a. If you invest $100,000 for retirement at age 30, how much will you have 35 years later for retirement? (Answer: $2,041,397) b. If you wait until age 40 to invest the $100,000, how much will you have 25 years later for retirement? (Answer: $862,308) c. Why is the difference so large?
Answer:
Results are below.
Explanation:
Giving the following information:
Interest rate= 9%
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
a)
PV= $100,000
n= 35
i= 0.09
FV= 100,000*(1.09^35)
FV= $2,041,396.79
b)
PV= $100,000
n= 25
i= 0.09
FV= 100,000*(1.09^25)
FV= $862,308.07
There is a big difference between investing at 30 than at 40. It is due to the compounding interest of the first 10 years.
What do you think makes a corporation successful globally?
Answer:
The corporation has to have an appeal to all cultures, every type of person. They also need very, very strong marketing.
Simon decided to invest $8,000 in the stock market one day early in 2008. Six months after he invested, on July 17, the stocks he had purchased were down 50%. Fortunately for Simon, from July 17 to October 17, the stocks he had purchased went up 75%. At this point, Simon has:
Answer:
At this point, Simon has lost $1,000 of his money.
Explanation:
This can be determined by calculating the current value of Simon's investment as follows:
Initial amount invested = $8,000
Value of the investment on July 17 = Initial amount invested * (100% - Percentage of loss) = $8,000 * (100% - 50%) = $4,000
Value of the investment on October 17 = Value of the investment on July 17 * (100% + Percentage of increase) = $4,000 * (100% + 75%) = $7,000
Amount of loss on October 17 = Initial amount invested - Value of the investment on October 17 = $8,000 - $7,000 = $1,000
Therefore, at this point, Simon has lost $1,000 of his money.
