Answer:
I can't help you sorry
Explanation:
I don't know what any of this means
g A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX).
Answer: 0.1613
Explanation:
From the question, a firm buys on terms of 3/15, net 45. This implies that a discount rate of 3% will be provided I payment is made within 15 days. If it's not made within 15 days, then full payment will be due on 85 days.
The nominal annual percentage cost is 0.1613. The calculation has been attached
In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. a. True b. False
Answer:
False
Explanation:
Bleeding edge firms provide products that are untested and carry a high risk. Products are unreliable and lead adopters stand the risk of making big losses in event that the product is not well received in the market
Leading edge firms on the other hand deal in products that are well tested and accepted by the market.
So the statement that - unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. Is not true
Products offered by bleeding edge firms are not embraced by the market as they are untested and risky
The Old World Café’s cash register receipts showed total sales of $884. The cash equaled $534, and the credit card slips equaled $237. How much of the sales are not accounted for? What might explain the difference?
Answer:the answer is $307
Explanation: some one didn't pay
Prestige Manufacturing Corporation reports the following items in its statement of cash flows presented using the direct method. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement under GAAP or use (NA) if the item does not appear on the statement.1. Payment for equipment purchase. 2. Repayments of bank loan. 3. Dividends paid 4. Proceeds from issuance of stock. 5. Interest paid. 6. Receipts from customers.
Answer:
1. Payment for equipment purchase = investing activities (I)
2. Repayments of bank loan = financing activities (F)
3. Dividends paid = financing activities (F)
4. Proceeds from issuance of stock = financing activities (F)
5. Interest paid = operating activities (O)
6. Receipts from customers = operating activities (O)
Explanation:
Operating Activities are activities that generate cash in the ordinary course of business.
Investing Activities are activities that generate cash due to movement in capital expenditure balances
Financing Activities are activities that generate cash due to sourcing of funds or changes in ownership.
T/F: Risk management, a formalized way of dealing with hazards, is the logical process of weighing the potential costs of risks against the possible benefits of allowing those risks to stand uncontrolled.
Answer:
True
Explanation:
Remember, risk can be weighted using certain parameters to see whether the potential costs of those risks is lower or higher than the possible benefits of allowing those risks to stand uncontrolled.
What makes this a "logical process of thinking" is the fact that it involves a careful mental evaluation of the risk, by asking the what ifs questions about the risk.
The May transactions of Concord Corporation were as follows. May 4 Paid $860 due for supplies previously purchased on account. 7 Performed advisory services on account for $7,490. 8 Purchased supplies for $840 on account. 9 Purchased equipment for $1,940 in cash. 17 Paid employees $500 in cash. 22 Received bill for equipment repairs of $810. 29 Paid $1,190 for 12 months of insurance policy. Coverage begins June 1. Journalize the transactions
Answer:
May 4
Debit Accounts Payable $860
Credit Bank/Cash account $860
Being entries to record payment for supplies purchased previously on Account
May 7
Debit Accounts Receivable $7,490
Credit Service revenue $7,490
Being entries to recognize service revenue made on accounts
May 8
Debit Supplies account $840
Credit Accounts Payable $840
Being entries to recognize supplies purchased on account
May 9
Debit Fixed assets account $1,940
Credit Cash account $1,940
Being entries to record equipment purchased with cash
May 17
Debit Salaries expense $500
Credit Cash account $500
Being entries to record payment of salaries
May 22
Debit Maintenance and repairs $810
Credit Accounts Payable $810
Being entries to recognize repairs expense
May 29
Debit Prepaid Insurance $1,190
Credit Cash account $1,190
Being entries to recognize advance payment for insurance
Explanation:
To purchase items on account is to purchase on credit. This creates a liability in the form of accounts payable. An increase in assets or expenses is a debit entry while a decrease is a credit entry. For liability or an income, a credit is an increase while a debit is a decrease.
Every organization needs some degree of flexibility and standardization. True False Being overly committed to following rules can harm an organization and keep it from growing. True False Every organization needs either a degree of ________ to adapt to new situations or some degree of ________ to make routine tasks and decisions as efficient and effective as possible. standardization; flexibility culture; vision flexibility; standardization structure; design
Answer:
1. True: Every organization needs some degree of flexibility and standardization.
2. True: Being overly committed to following rules can harm an organization and keep it from growing.
3. flexibility; standardization.
Explanation:
It is really important and necessary that all organization have some degree of flexibility and standardization. Every organization is expected to be flexible, in order to be able to effectively manage potential changes or challenges that arises in business. They should also be standardized, by having proper policies, strategies and structure for the purpose of running the business smoothly and efficiently.
However, if an organization is overly committed to following rules, this can cause harm to it's business operations and thereby hindering its growth and development.
Hence, some degree of flexibility is needed in every organization in order to adapt to new situations or some degree of standardization to make routine tasks and decisions as efficient and effective as possible.
ABC Company keeps their accounting records on the cash basis. During the year, ABC received $260,000 from clients, and ABC paid $85,000 to cover operating expenses. Account balances as of the dates given are as follow:
January 1 December 31
Accounts Receivable $24,000 $52,000
Accrued Liabilities $56,000 $40,000
Unearned Service Revenue $35,000 $65,000
Prepaid Expenses $26,000 $28,000
In addition, depreciation expense for the current year is $16,000.
Accrual basis net income is:
a. $181,000
b. $145,000
c. $201,000
d. $165,000
Answer:
a. $181,000
Explanation:
The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.
Calculation of Net Income will thus be as follows :
Revenue Received $260,000
Unearned Revenue($65,000-$35,000) $30,000
Total Revenue $290,000
Less Expenses :
Expenses ($85,000+$26,000-$28,000) $83,000
Depreciation $16,000
Net Income $181,000
Which of the following statements is true? In market equilibrium:
a. There are uncomsummated wealth destroying transactions
b. There are unconsummated value creating transactions
c. None of these
d. There are no unconsummated wealth creating transactins
Answer: d. There are no unconsummated wealth creating transactions
Explanation:
In an equilibrium, a price has been reached that everyone is satisfied with. This is why there are no unconsummated wealth creating transactions.
The market has managed to bring together people who are want a certain good more than they will pay for it and sellers who value the good less than they will receive for it. The Equilibrium therefore sets a price that is fair on both these people which will mean that they will not be able to unfairly trade with one another. The person who values the good more than they can pay will be able to pay the person who values the goods less than they will receive. Equilibrium has brought them to a middle ground.
g (Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $305,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $105,000 per year. The company requires a minimum pretax return of 7% on all investment projects. Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. The net present value of the proposed project is closest to:
Answer:
= $195,486.67
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-305,000
Cash flow each year from year 1 to 6 = $105,000
I = 7%
NPV = $195,486.67
To find the NPV 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
I hope my answer helps you
Honey Corporation, a merchandising company, reported the following results for January:
Number of units sold 5,800
Selling price per unit $892
Unit cost of goods sold $517
Variable selling expense per unit $31
Total fixed selling expense $152,600
Variable administrative expense
per unit $48
Total fixed administrative expense $390,200
Cost of goods sold is a variable cost in this company.
a. Prepare a traditional format income statement for January.
b. Prepare a contribution format income statement for January.
Answer:
Results are below.
Explanation:
Giving the following information:
Number of units sold 5,800
Selling price per unit $892
The unit cost of goods sold $517
Variable selling expense per unit $31
Total fixed selling expense $152,600
Variable administrative expense per unit $48
Total fixed administrative expense $390,200
1) Traditional income statement:
Sales= 5,800*892= 5,173,600
GOGS= 5,800*517= (2,998,600)
Gross profit= 2,175,000
Selling expense= (31*5,800) + 152,600= (332,400)
Administrative expense= (48*5,800) + 390,200= (668,600)
Net operating income= 1,174,000
2) Contribution margin income statement:
Sales= 5,800*892= 5,173,600
Total variable cost= 5,800*(517 + 31 + 48)= (3,456,800)
Contribution margin= 1,716,800
Total fixed selling expense= (152,600)
Total fixed administrative expense= (390,200)
Net operating income= 1,174,000
A supermarket uses a periodic review system to manage inventory of gallons of drinking water. Average demand is 152 gallons of water per day with standard deviation of 33 gallons per day. It costs $57 to order water from the supplier, and orders are delivered after 4 days. The holding cost for a gallon of water is $0.11 per year. The supermarket is open 360 days per year. If the supermarket aims for a 94.5% service level for gallons of drinking water (z = 1.6), what value should be used for T, the target inventory position at the time of ordering?
The target inventory position is T= ______ gallons.
Answer:
The target inventory position is T= 713.6 gallons.
Explanation:
Given:
Average demand =per day = D = 152 Gallons
Standard deviation of demand = σ = 33 Gallons per day
Lead time for delivery = L = 4 days
Z value for 94.5% service level = 1.6
The target inventory position = (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × [tex]\sqrt{L}[/tex])
= (152 × 4) + (1.6 × 33 × [tex]\sqrt{4}[/tex])
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
The value of the target inventory position will be 713.6 gallons.
The following can be illustrated from the information given:
Average demand per day, D = 152Standard deviation of demand, σ = 33Lead time for delivery, L = 4Z value for 94.5% service level = 1.6Therefore, the target inventory position will be:
= (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × ✓L )
= (152 × 4) + (1.6 × 33 × ✓4 )
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
Therefore, the target inventory position will be 713.6 gallons.
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Find the nominal annual rate of interest compounded monthly if $1200 accumulates to $1618.62 in five years.
Answer:
The nominal annual interest rate is 6%
Explanation:
The future value of a sum of money an be calculated as follows,
FV = PV (1+i)^n
Where,
PV is present value i is the interest raten is the number of compounding periodsAs we already know the FV, the PV and the number of compounding periods, we can calculate the value of i. The value of i here represents the nominal annual interest rate denominated in monthly terms.
Annual interest rate denominated in monthly terms = Annual i / 12
As the total period in years is 5 years, the total period in monthly terms will be 5 * 12 = 60. So n is 60.
Plugging in the available values, we get the following expression which should be solved to get the monthly i.
1618.62 = 1200 * (1+i)^60
1618.62 / 1200 = (1+i)^60
1.34885 = (1+i)^60
Taking the 60th root of both sides.
(1.34885)^1/60 = (1+i)^60/60
1.004999998 = 1 + i
1.00499998 - 1 = i
i = 0.00499998 rounded off to 0.005 or 0.5%
If the annual interest rate denominated in monthly terms is is 0.005 or 0.5%, then the annual interest rate is,
Annual interest rate = 0.005 * 12 = 0.06 or 6%
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 108,000 shares of Silva Company directly from one of the founders for a price of $48 per share. Silva has 300,000 shares outstanding including the Daniels shares. On July 2, Year 1, Silva paid $292,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $971,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva
a. Provide the Ferguson Company journal entries for the transactions Involving its Investment In Sllva Company durlng Year 1 Year 1 Jan. 4 Year 1 July 2 Year 1 Dec. 31
b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock
Answer:
a)
January 4, year 1, investment in Silva Company (36% of outstanding stocks)
Dr Investment in Silva Company 5,184,000
Cr Cash 5,184,000
July 2, year 1, distributed dividends ( $292,000 x 36%)
Dr Cash 104,400
Cr Investment in Silva Company 104,400
December 31, year 1, net income reported by Silva Company ($971,000 x 36%)
Dr Investment in Silva Company 349,560
Cr Revenue from investment in Silva Company 349,560
b)
Balance of Investment in Silva Company = $5,184,000 - $104,400 + $349,560 = $5,429,160
Explanation:
Since Ferguson exercises significant influence over Silva Company, they must record the investment using the equity method.
A couple with a newborn son wants to save for their child's college expenses in advance. The couple can establish a college fund that pays 7% annual interest. Assuming that the child enters college at age 18, the parents estimate that an amount of $40,000 per year will be required to support the child's college expenses for four years.
Determine the equal annual amounts that the couple must save until they send their child to college. (Assume that the first deposit will be made on the child's first birthday and the last deposit on the child's 18th birthday. The first withdraw will be made at the beginning of the freshman year, which also is the child's 18thbirthday.)
Answer:
The equal annual amounts that the couple must save until they send their child to college is $4,264.006 per year
Explanation:
Kindly check attached picture for detailed explanation
what are the 8 core subject areas that employer expect all employees to know
Answer:
Communication. More than two-thirds of recruiters across all industries say communication is the most important skill they look for. ... Decision-Making. Flexibility. Commitment. Innovation. Integrity. Leadership. Life-long Learning.Explanation:
Have a good day and stay safe!
The standard deviation from investing in the asset is: (Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))
Here is the complete question.
State of the Economy Probability of Percentage Returns
the States
Economic recession 25% 5%
Moderate economic growth 55% 10%
Strong economic growth 20% 13%
The standard deviation from investing in the asset is: (Round to the nearest hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))
Answer:
standard deviation from investing in the asset is: 2.76
Explanation:
From the information given above; the main task to do is to calculate for the standard deviation from investing in the asset ,but in order to do that; we must first determine the expected return value and the variance.
The expected return can either be the profit or loss the investor predict to get after investing on an instrument. It can be determined by multiplying the potential outcomes by the chances of them occurring and then totaling these results.
Here;
the potential outcome = Probability of the States
chances of them occurring = Percentage Returns
∴
Expected return = (0.25 × 5%) + (0.55 × 10%) + (0.20 × 13%)
Expected return = (1.25 + 5.5 + 2.6)%
Expected return = 9.35%
Variance = 0.25 × (5% - 9.35%)² + 0.55 × (10% - 9.35%)² + 0.20 × (13% - 9.35%)²
Variance = 0.25 ( -4.35%)² + 0.55 (0.3575%)² + 0.20 (3.65%)²
Variance = 0.0473 + 0.0023 + 0.0266
Variance = 0.0763
Finally; the standard deviation = [tex]\sqrt{variance}[/tex]
standard deviation = [tex]\sqrt {0.0763[/tex]
standard deviation = 0.276
To the nearest hundredth percent and by answering in the percent format without including the % sign ; we have
standard deviation = 2.76
2. The Fourth of July Company agreed to ship a quantity of fireworks to Behan. After Behan pays in full, he learns that state law prohibits this type of sale. Before the fireworks are sent, Behan calls to cancel this contract and to demand his money back. May he recover his money in court
Answer:
Behan will recover his amount.
Explanation:
The contract has not been formed as the contract is only enforceable if the contract is legally allowed which means that the selling of fireworks in this case scenario is not allowed and hence Behan and Fourth of July Company are both equally responsible for not committing to such type of agreements. So the company must payback the money as the contract is not enforceable in the jurisdiction.
Alain Mire files a single tax return and has adjusted gross income of $309,000. His net investment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year
Answer: $1,824
Explanation:
According to the IRS, Net Investment Income tax is the lesser figure of either,
i. The net investment income or,
ii. Modified adjusted gross income less the threshold of $200,000 of the person.
The lesser figure is then multiplied by 3.8% to find the tax.
Alain Mire's net Investment Income is $48,000.
His Modified adjusted gross income less the threshold of $200,000 is,
= 309,000 - 200,000
= $109,000
The lesser figure is his Net Investment Income so Additional Tax is,
= 48,000 * 3.8%
= $1,824
Jamal just inherited some money from a distant cousin overseas. He would like to put some of it in a bond and is looking at two choices. Bond A has five years to maturity, a semiannual coupon of 6% and a face value of $1,000. Bond B has ten years to maturity, an annual coupon of 4% and a face value of $1,000. Jamal knows that the rate expected in the marketplace for investments similar to these is 5%.
1. What is the present value of the coupon stream on each bond?
2. What is the present value of the face value on each bond?
3. What is the total value of each bond?
4. If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, which bond should he buy?
Answer:
i. = $262.56 , = $308.87
ii. = $781.198 , = $613.91
iii. Bond A = $1,043.76 , Bond B = $922.78
Explanation:
(i) Present Value of Coupon Payment
Bond A :- Semiannual Coupon Amount = $1,000 * 6% * 6 / 12 = $30
Total Semiannual Period = 5 * 2 = 10
Semiannual Interest = 5% / 2 = 2.5%
Present Value of Coupon Payment = $30 * PVAF (2.5% , 10)
= $30 * 8.752
= $262.56
Bond B :- Annual Coupon Amount = $1,000 * 4% = $40
Annual Periods = 10
Annual Interest = 5%
Present Value of Coupon Payment = $40 * PVAF ( 5% , 10)
= $40 * 7.72
= $308.87
(ii) Present Value of Face Value of Bond
Bond A = $1,000 * PVF (2.5% , 10 periods)
= $1,000 * 0.7812
= $781.198
Bond B = $1,000 * PVF (5% , 10)
= $1,000 * 0.6139
= $613.91
(iii) Total Value of Each Bond
Bond A = $262.56 + $781.198 = $1,043.76
Bond B = $308.87 + $613.91 = $922.78
(iv)If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, he should consider:
If the Bond Current Price is lower than Bond Fair Price then he should Buy the Bond
If the Bond Current Price is higher than Bond Fair Price then he should not buy the bond
Market Price of Bond = $99
He should buy Bond A But not Bond B
Mr. Grove's argument is to provide additional incentives to U.S. firms for domestic investment in more mass production. If implemented, this would have the largest impact on firms using which of the four integration-responsiveness strategies?A) Transnational strategy because such incentives help differentiation.B) Multi-domestic strategy because incentives would increase global responsiveness.C) Global-standardization strategy because incentives would lower domestic costs.D) International strategy because these incentives would reduce pressure for responsiveness globally.E) Global-standardization strategy because incentives align with the death-of-distance.
Answer:
The correct answer is the option C: Global-standarization strategy because incentives would lower domestic costs.
Explanation:
To begin with, the term of ''global-standarization strategy'' in the field of business is known because of being part of the group of the four integration-responsiveness strategies and is the one that focus in the standarization of the product in a globally way. Therefore that this type of strategy is the one that would be used in the case of looking for an investment in the mass production locally due to the fact that the firms will be producing goods in a standard way and therefore that they would use universal supplies in every production in order to increase the amount of the production to achieve a mass number.
On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.
Cash $2,000 Cash dividends $3,360
Accounts receivable 13,000 Consulting fees earned 15,000
Office supplies 4,250 Rent expense 2,550
Land 36,000 Salaries expense 6,000
Office equipment 28,000 Telephone expense 660
Accounts payable 7,500 Miscellaneous expenses 680
Common stock 74,000
Also assume the following:
a. The owner’s initial investment consists of $37,720 cash and $45,940 in land in exchange for its common stock.
b. The company’s $17,710 equipment purchase is paid in cash.
c. The accounts payable balance of $8,230 consists of the $2,990 office supplies purchase and $5,240 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $13,800 consulting fees earned.
Required:
Using the above information to prepare an October 31 statement of cash flows for Real Solutions.
Answer:
Statement of cash flows for Real Solutions for the year ended October 31 .
Cash flow from Operating Activities
Net Profit $14,660
Adjustment for Changes in Working Capital :
Increase in Accounts receivable ($13,000)
Increase in Accounts Payable $7,500
Net Cash from Operating Activities $9,160
Cash flow from Investing Activities
Purchase of Equipment ($17,710)
Net Cash from Investing Activities ($17,710)
Cash flow from Financing Activities
Cash dividends ($3,360)
Net Cash from Financing Activities ($3,360)
Movement during the Period ($11,910)
Cash and Cash Equivalents at Beginning of the year $37,720
Cash and Cash Equivalents at End of the year $25,810
Explanation:
The Indirect Method has been used for the Preparation of Cash flow from Operating Activities. (opt for this as it is easier to deal with the information given).
Calculation of Net Income for the Year Ended October 31
Revenue :
Consulting fees earned 15,000
Consulting fees accrued 13,800
Total Revenue 28,800
Less Expenses ;
Office supplies 4,250
Rent expense 2,550
Salaries expense 6,000
Telephone expense 660
Miscellaneous expenses 680 (14,140)
Net Income 14,660
If an individual's utility function for coffee (x) and cream (y) is given by , the demand function for coffee is given by:__________.
Incomplete question. Options provided in
Answer:
c.
Explanation:
Note that after performing necessary calculation we arrived at the conclusion where X = I/(PX + 0.2PY) where PX= demand and PY= expenditures.
Heidee Corp. and Leaudy Corp. have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, Heidee uses more debt than Leaudy. Which of the following statements is CORRECT?
A) Heidee would have the higher net income as shown on the income statement.
B) Without more information, we cannot tell if Heidee or Leaudy would have a higher or lower net income.
C) Heidee would have the lower equity multiplier for use in the Du Pont equation.
D) Heidee would have to pay more in income taxes.
E) Heidee would have the lower net income as shown on the income statement.
Answer:
E) Heidee would have the lower net income as shown on the income statement.
Explanation:
Heidee and Leaudy have the same Earning Before Interest and Taxes (EBIT).
They both also have the same interest rate paid on debt.
So if Heidee uses more of their debt than Leaudy it means they will incur more interest payment on debt.
This will result in less income for the company.
On the other hand Leaudy uses less debt so their interest expense is low and income is higher.
Heidee would have the lower net income as shown on the income statement.
Granny Carney Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Granny Carney Associates completed the following transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Granny Carney Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1
Jan. 1 Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. Apr. 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $320,000 paid in cash. An independent appraisal valued the land at $252,000 and the communication equipment at $84,000. Sep. 1 Sold a building that cost $570,000 (accumulated depreciation of $265,000 through December 31 of the preceding year). Granny Carney Associates received $430,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $45,000. Dec. 31.
Recorded depreciation as follows:
Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $4,000 residual value.
Answer:
Jan 1
Dr Office equipment 119,000
Cr Cash 84,000
Cr Note payable 35,000
April 1
Dr Land 240,000
Dr Communication equipment 80,000
Cr Cash 320,000
Sept 1
Dr Cash 430,000
Dr Accumulated depreciation -Building 265,000
Cr Building 570,000
Cr Gain on sales of building 125,000
Dec 31
Depreciation expenses 12,000
Dr Accumulated Depreciation 12,000
Explanation:
Granny Carney Associates Journal entries
Jan 1
Dr Office equipment 119,000
Cr Cash 84,000
Cr Note payable 35,000
(119,000-84,000)
April 1
Dr Land 240,000
(320,000×252,000/252,000+84,000)
Dr Communication equipment 80,000
(320,000×84,000/252,000+84,000)
Cr Cash 320,000
(80,000+240,000)
Sept 1
Dr Cash 430,000
Dr Accumulated depreciation -Building 265,000
Cr Building 570,000
Cr Gain on sales of building 125,000
Dec 31
Depreciation expenses 12,000
(80,000-0)/5×9months/12months
Dr Accumulated Depreciation 12,000
Holly owns a dance studio. To improve sales of dance classes, she is reviewing how her marketing team could update the company's online presence.
As part of the rebrand, the team listened to customer feedback and mapped customer journeys. They identified two things online customers generally struggled with: navigating the website and finding the business's contact information.
Which of the brand's touchpoints should Holly modify to help address her customer's feedback?
Answer:
b. website layout
c. email marketing
Explanation:
The website layout is the layout i.e created for a website. It should be attractive to the owners and users. Moreover it should be easy to navigate it so that if anyone could access to the website he or she could easily access it without any hurdle.
The email marketing is a technique in which we can send one message to large audience in the same time. It helps in saving cost and time
According to the given situation, the online customers struggled with website navigate and to find out the contact information related to the business
So to modify and help address her customer feedback the website layout and the email marketing plays a vital role and the same is to be considered
The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $22.2 million, but the market value of the bonds is $28.3 million. The entry to record the retirement will include: Multiple Choice A credit to cash for $22.2 million. A credit of $6.1 million to a gain account. A debit of $6.1 million to a loss account. No gain or loss on retirement.
Answer:
A debit of $6.1 million to a loss account
Explanation:
The answer is A debit of $6.1 million to a loss account.
To calculate this:
the carrying value of the bonds $22.2 million is subtracted from the market value of the bonds $28.3 million.
Carrying value, $22.2 million, less cash paid to retire the bonds of $28.3 million
= $28.3 - $22.2
= $6.1 million to a loss account.
Sally makes deposits into a retirement account every year from the age of 30 until she retires at age 65. a) If Sally deposits $ 1100$1100 per year and the account earns interest at a rate of 9 %9% per year, compounded annually, how much does she have in the account when she retires? b) How much of that total amount is from Sally's deposits? How much is interest?
Answer:
a)
Balance of account at retirement = $237,281.83
b)
Total Deposited amount = $38,500
Interest Amount = $198,781.83
Explanation:
A fix periodic payments for the specific period of time is the annuity payment. Deposit of $1,100 per year in retirement account is annuity payment.
a)
We can calculate the balance of account on retirement by using following formula
Future Value of Annuity = P x ( 1 + r )^n - 1 / r
Where
P = Periodic payments = $1,100
r = 9%
n = 65 years - 30 years = 35 years
Placing values in the formula
Balance of account at retirement = $1,100 X ( 1 + 9% )^35 - 1 / 9%
Balance of account at retirement = $237,281.83
b)
Total Deposited amount = $1,100 x 35 = $38,500
Interest Amount = Balance of account at retirement - Total Deposited amount = $237,281.83 - $38,500 = $198,781.83
The Prospect Company estimates that its overhead costs will amount to $602,000 and the company's manufacturing employees will work 86,000 direct labor hours during the current year. Overhead costs are allocated based on direct labor hours. If actual overhead costs for the year amounted to $619,000 and actual labor hours amounted to 87,000, then overhead cost would be:___________.
A- underapplied by $10,000.
B- overapplied by $4,000.
C- underapplied by $17,000.
D- overapplied by $10,000.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Estimated:
Overhead= $602,000
Direct labor hours= 86,000
Actual:
Overhead= $619,000
Direct labor hours= 87,000
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 602,000/86,000= $7 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH=7*87,000= $609,000
Finally, we determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 619,000 - 609,000
Under/over applied overhead= 10,000 underallocated
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25. In the long run, the firm should a. Shut-down because it is cost effective to pay off the remaining fixed costs b. Continue operating as the firm is covering all the variable costs and some of the fixed costs c. Shut-down as the firm is making a loss of $10,000 per week d. Shut-down as price is lower than average cost
Answer:
b. Continue operating as the firm is covering all the variable costs and some of the fixed costs
Explanation:
A firm should shutdown operations if its price is less than average variable cost.
The price the firm sells is $15
Average variable cost is $10.
Price is greater than average variable cost in excess of $5.
The $5 covers some of the average fixed cost.
I hope my answer helps you
