Missing information:
Debit Credit
Merchandise inventory $35,000
Prepaid selling expenses $6,600
Dividends $43,000
Sales $569,000
Sales returns and allowances $19,500
Sales discounts $6,000
Cost of goods sold $232,000
Sales salaries expense $58,000
Utilities expense $20,000
Selling expenses $41,000
Administrative expenses $115,000
Answer:
Adjusting entries
Dr Salaries expense 1,700
Cr Salaries payable 1,700
Dr Selling expenses 2,800
Cr Prepaid selling expenses 2,800
Dr Cost of goods sold 600
Cr merchandise inventory 600
Dividends $43,000
Sales $569,000
Sales returns and allowances $19,500
Sales discounts $6,000
Cost of goods sold $232,600
Sales salaries expense $59,700
Utilities expense $20,000
Selling expenses $43,800
Administrative expenses $115,000
net income = $72,400
Closing entries:
Dr Sales 543,500
Cr Income summary 543,500
Dr Income summary 471,100
Cr Cost of goods sold 232,600
Cr Sales salaries expense 59,700
Cr Utilities expense 20,000
Cr Selling expenses 43,800
Cr Administrative expenses 115,000
Dr Income summary 72,400
Cr Retained earnings 72,400
Dr Retained earnings 43,000
Cr Dividends 43,000
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $660,000; Office salaries, $132,000; Federal income taxes withheld, $198,000; State income taxes withheld, $44,000; Social security taxes withheld, $49,104; Medicare taxes withheld, $11,484; Medical insurance premiums, $16,000; Life insurance premiums, $13,000; Union dues deducted, $10,000; and Salaries subject to unemployment taxes, $68,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
Using the above information, complete the below table and Prepare the journal entries to record accrued payroll and cash payment of the net payroll for July.
Answer:
July 31, 202x, salaries expense
Dr Sales salaries expense 660,000
Dr Office salaries expense 132,000
Dr FICA taxes (OASDI) expense 49,104
Dr FICA taxes (Medicare) expense 11,484
Dr FUTA taxes expense 408
Dr SUTA taxes expense 3,672
Dr Life insurance expense 19,500
Dr Medical insurance expense 24,000
Cr Federal income taxes withheld payable 198,000
Cr State income taxes withheld payable 44,000
Cr Social security taxes withheld payable 49,104
Cr Social security taxes payable 49,104
Cr Medicare taxes withheld payable 11,484
Cr Medicare taxes payable 11,484
Cr Medical insurance premiums payable 40,000
Cr Life insurance premiums payable 32,500
Cr Union dues deducted payable 10,000
Cr FUTA taxes payable 408
Cr SUTA taxes payable 3,672
Cr Salaries payable 450,412
July 31, 2021, payment of salaries payable
Dr Salaries payable 450,412
Cr Cash 450,412
Explanation:
Sales salaries, $660,000;
Office salaries, $132,000;
Federal income taxes withheld, $198,000;
State income taxes withheld, $44,000;
Social security taxes withheld, $49,104;
Medicare taxes withheld, $11,484;
Medical insurance premiums, $16,000;
Life insurance premiums, $13,000;
Union dues deducted, $10,000; and
Salaries subject to unemployment taxes, $68,000.
FUTA = $408SUTA = $3,672An increase in ROE would imply an increase in shareholder wealth. Based on your understanding of the uses and limitations of ROE, a rational investor is likely to prefer an investment option that has: A high ROE and high risk A high ROE and low risk
Answer:
The correct answer is the second option: A high ROE and low risk.
Explanation:
To begin with, the concept of "Return of Equity" or ROE refers to a measure used in the field of business that mainly focus in the relationship between the profits and the equity of the company and therefore that it shows how profitable the company is regarding the amount of its equity. Moreover, this measure focus on the amount of dollars that the company gains regading the amount of equity that the company uses. Therefore that a rational investor is likely to prefer an investment option that has a high ROE and low risk at the time of taking the decision.
Heidi Luking has discovered that several of the sites she has visited recently downloaded small filesto her computer's hard drive even though she did not request them. The files Heidi discovered areknown as crackers. True or False
Answer:
The correct answer is: False.
Explanation:
On the one hand, the "Crackers" is the name that the people with a huge knowledge in cyber security and therefore that they are the ones that mainly focus on explore methods to breach defenses from computers in order to explote the weakness of the computer system so they will be able to have control of the system.
On the other hand, what Heidi discovered is most likely to be a cybervirus that those web pages implanted in their sites in order to breach the system of the person automatically without her knowledge or autorization with the main purpose of just destroying the computer system.
When The files Heidi discovered are known as crackers the correct answer is: False. "Crackers" is the name for the people.
What is Cyber Security?
On the one hand, the "Crackers" is the name for the people with a piece of huge knowledge of cyber security, and thus that they are the ones that primarily focus on exploring methods to breach defenses from computers to explore the weakness of the computer system so they will be able to have control of the system.
In the different writing, what Heidi discovered is considered likely to be a cyber virus that those web pages entrenched in their sites to breach the system of the person automatically without her understanding or authorization with the main objective of exclusively destroying the computer system.
Find more information about Cyber Security here:
https://brainly.com/question/26520949
Crisp Cookware's common stock is expected t opay a dividend of $1.50 a share at the end of this year; its beta is 0.6. The risk free rate is 5.6% and the market risk premium is 4%. The dividend is expected to grow at some constant rate and the stock currently sells for $50 a share. Asuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years
Answer: $57
Explanation:
The following can be deduced from the question:
The risk free rate = 5.6%
The market risk premium = 4%
The stick beta = 0.6
The required return will be:
= Risk free rate + (Beta × Market risk premium)
= 5.6% + (0.6 × 4%)
= 5.6% + 2.4%
= 8% = 0.08
Crisp Cookware's common stock is expected to pay a dividend of $1.50 a share at the end of this year, Therefore,
D1 = $1.50
The current stock price will now be:
= D1/(Required return - Growth rate)
50= 1.5/(0.08 - growth rate)
(0.08 - growth rate) = 1.5/50
(0.08 - growth rate) = 0.03
Growth rate = 0.08 - 0.03
Growth rate = 0.05 = 5%
D4 = D1 × (1+Growth rate)³
D4 = 1.5 × (1 + 0.05)³
D4 = 1.5 × (1.05)³
D4 = 1.5 × 1.1576
D4 = $1.7364
The stock price at the end of the year 3
will be:
= D4/(Required return - Growth rate)
= 1.7364/(0.08 - 0.05)
= 1.7364/0.03
= $57
The market believe that the stock price at the end of 3 years will be $57
Blossom Company purchased machinery with a list price of $80000. They were given a 5% discount by the manufacturer. They paid $400 for shipping and sales tax of $4000. Blossom estimates that the machinery will have a useful life of 10 years and a residual value of $25000. If Blossom uses straight-line depreciation, annual depreciation will be
Answer:
$5,540
Explanation:
Calculation of Blossom annual depreciation using the straight-line depreciation
Annual depreciation=[List price-discount] + shipping + sales tax - residual value) ÷ 10 years
Let plug in the above formula
Annual depreciation =[($80000-$4,000)+($400+$4,000-$25,000)÷10 years ]
Annual depreciation =$76,000+$400+$4,000-$25,000÷10 years
=$55,400÷10 years
Annual depreciation =$5,540
Calculation for list price discount
5%×80,000
=$4,000
Therefore Blossom annual depreciation using the straight-line depreciation would be $5,540
As a financial advisor, what will you tell your client, Ryan, he should be willing to pay for an investment property that he plans to buy today and hold for 5 years and then sell, given the following cash flows and the fact that he expects 9% on any investment he makes?
Inflows Outflows Net
InitialOutlay $0
Year 1 $45,000 $55,000 10,000
Year 2 55,000 20,000 35,000
Year 3 55,000 20,000 35,000
Year 4 255,000 235,00 220,000
A. $189, 910.29.
B. $194, 589.33.
C. $178, 656, 73.
D. $191, 231, 57.
Answer:
The option (A) $189, 910.29 is correct
Explanation:
Solution
Given that
Years Net Cash flow Discount Factor at 11% Present Value
1 $ (10,000.00) 0.901 $(9,009.01)
2 $ 35,000.00 0.812 $ 28,406.79
3 $ 35,000.00 0.731 $ 25,591.70
4 $ 220,000.00 0.65 $ 144,920.81
Now,
The Net Present Value $189,910.29
Thus
After carrying out the financial analysis, it has been seen that if we go ahead to buy the Investment Property, then today we have Net present Value of $ 189,910.29.
So, i will inform my client to buy the Investment Property.
It is likely that airplane tickets will be increased by 5% each year for the next four years. The cost of the plane ticket to Destination A at the end of the first year is $200. How much money should be placed in a savings account now to have enough money to pay for one travel per year for the next four years
Answer:
The amount to save now is = $862.03 (to 2 decimal places)
Explanation:
In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:
Year 1 ending = $200
Year 2:
Year 2 beginning price = $200
Note that 5% increase = 5/100 = 0.05
increase in year 2 = 5% of 200 = 0.05 × 200 = 10
Year 2 new price = 200 + 10 = $210
Year 3:
beginning price = $210
increase in year 3 = 0.05 × 210 = $10.5
Year 3 new price = 210 + 10.5 = $220.5
Year 4
beginning price = $220.5
interest in year 4 = 0.05 × 220.5 = 11.025
new price in year 4 = 220.5 + 11.025 = $231.525
Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:
Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03
It is the employees duty to: obey his or her employer's lawful orders concerning the employment. create an environment free of competition. be careful and less competent than his or her colleagues. provide a safe and sanitary place to work.
Answer:
obey his or her employer's lawful orders concerning the employment.
Explanation:
As there are several duties owed by employers to their employees, so do we have duties that must be performed by employees to their employers. Example of such duty is employee must obey his or her employer's lawful orders concerning the employment terms.
Other duties or obligations included in the employment terms that must be carried out by an employee are; serve faithfully, account for all money or property received, cooperate with the employer, perform duties with proper care and diligence , otherwise may be sued the employer . There are also duties owed by an employee to an employer even though such are not mentioned in the contract terms, i.e duty to be honest, to do what is deemed reasonable by an employee in any situation, not to disclose employer's confidential information etc.
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $28,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $466,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 51,300. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what wou
Answer:
1. What was the balance in gross accounts receivable as of 12/31/2020?
= allowance for doubtful accounts 2020 / 10% = $28,000 / 10% = $280,000
2. What journal entry should Johnson record to recognize bad debt expense for 2021?
Dr Bad debt expense (= 46,670 + 51,300) 97,970
Cr Allowance for doubtful accounts 97,970
3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021.
= credit balance allowance for doubtful accounts January 1 + debit balance allowance for doubtful accounts December 31 = $28,000 + $51,300 = $79,300
4. If Johnson instead used the direct write-off method, what would the bad debt expense be
The bad debt expense would equal $79,300. The allowance for doubtful accounts is used as an estimate of future bad debt expense, while the direct write off method directly writes off bad debt as they occur.
Explanation:
beginning balance of allowance for doubtful accounts $28,000
gross accounts receivable $466,700 x 10% = $46,670 bad debt
before adjustments, the allowance for doubtful accounts had a debit balance of $51,300
Basic bond valuation Complex Systems has an outstanding issue of $1 comma 000-par-value bonds with a 16% coupon interest rate. The issue pays interest annually and has 11 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 9%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond. c. If the required return were at 16% instead of 9%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss.
Answer:
a. Complex Systems' bond price today = $1,476.36
Explanation:
a. If bonds of similar risk are currently earning a rate of return of 9%, how much should the Complex Systems bond sell for today?
This can be calculated by adding the Present Value of Coupons and the Present Value of Par Value as follows:
Calculation of Present Value of Coupons
The present of coupons is calculated using the formula for calculating the present value of an ordinary annuity as follows:
Present value of coupons = C × [{1 - [1 ÷ (1 + r)]^n} ÷ r] …………………………………. (1)
Where;
C = Annual coupon amount = Par value * Coupon rate = $1,000 * 16% = $160
r = required rate of return or return of similar risk = 9%, or 0.09
n = number of years = 11
Substitute the values into equation (1) to have:
Present value of coupons = $160 × [{1 - [1 ÷ (1 + 0.09)]^11} ÷ 0.09] = $1,088.83
Calculation of Present Par of Value
To calculate this, we use the present value formula as follows:
Present Value of Par Value = Par value / (1 + r)^n
Since Par Value is $1000 and r and n are as already given above, we have:
Present value of Par Value = $1,000 / (1 + 0.09)^11 = $387.53
Therefore, we have:
Complex Systems' bond price today = Present value of coupons + Present value of Par Value = $1,088.83 + $387.53 = $1,476.36
b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond.
The following are the possible two reasons:
1. Interest may vary bust the coupon is fixed. What can cause the interest rate to vary is the bond rating by rating agency. But his will not affect the coupon rate which is fixed. When the rating is high, the interest will be low. But when the rating is low, the interest will be high. This indicates a negative relationship between the rating and the interest rate.
2. The level of demand may also influence the interest rate to change. When the demand is high, the interest will be low. But when the demand is low, the interest will be high. This also indicates a negative relationship between the demand and the interest rate.
c. If the required return were at 16% instead of 9%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss.
To do this, we simply change he required return to 16% (or 0.16) in part a and proceed as follows:
Present value of coupons at 16% = $160 × [{1 - [1 ÷ (1 + 0.16)]^11} ÷ 0.016] = $804.58
Present value of Par Value at 16% = $1,000 / (1 + 0.16)^11 = $195.42
Complex Systems' bond price today at 16% = $804.58 + $195.42 = $1,000.00
Comparing part c result with part a result shows that if the coupon rate is greater than the required rate of return, the bond is sold at a premium. That is, price of bond will be more than par. As it can be seen in part a, the price of bond is $1,476.36 when the coupon rate of 16% is greater than the required return of 9%.
Also, the bond will be sold at par when the coupon rate and require return are equal. This is shown in part c where the bond is sold at $1,000 when both coupon rate and required return rate are equal to 16%.
By implication, we can also infer without doing any calculation that the bond will be sold at a discount if the coupon rate is less than the required rate of return.
A 1000 is deposited into Fund X, which earns an annual effective rate of 6%. At the end of each year, the interest earned plus an additional 100 is withdrawn from the fund. At the end of 10th year, the fund is depleted. The annual withdrawals of interest and principal are deposited in Fund Y, which earns an annual effective rate of 9%. Determine the accumulated value of Fund Y at the end of Year 10.
Answer:
The accumulated value of Fund Y at the end of Year 10 is $2,084.67.
Explanation:
Note: Find attached the excel file for the calculation of the accumulated value of Fund Y at the end of Year 10.
The accumulated value of Fund Y at the end of Year 10 is ending balance in year 10 which is in red color.
Also note the following from the attached excel file:
a) The ending balance of Fund X is 0.00 because Fund Y is depleted after Year 10.
b) The beginning balance of Fund Y and its earned interest are equal to 0.00, because no amount of money is deposite in Fund Y until after Year 1 which is the withdrawal from Fund X.
Gilbert Company generated sales revenues of $1,800,000 in 2017. Its cost of goods sold amounted to $990,000. Calculate Gilbert's gross profit percentage. Supporting Materials Cost of goods sold / Group of answer choices 55% 45% 222% 182%
Answer:
45%
Explanation:
The computation of the gross profit percentage is shown below:
As we know that
Gross profit percentage = Gross profit ÷ Sale revenue × 100
where,
Gross profit is
= Sales revenue - the cost of goods sold
= $1,800,000 - $990,000
= $810,000
And, the sales revenue is $1,800,000
So, the gross profit percentage is
= $810,000 ÷ $1,800,000
= 45%
Hence, the gross profit percentage is 45%
onceptual Connection: For each situation, identify the possible root cause(s) of the activity cost (such as plant layout, process design, and product design). a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material. The cost per labor hour is $12, the cost per machine hour is $8, and the cost per pound of materials is $10. b. With its original design, a gear requires 8 hours of setup time. By redesigning the gear so that the number of different grooves needed is reduced by 50%, the setup time is reduced by 75%. The cost per setup hour is $50. c. A product currently requires 6 moves. By redesigning the manufacturing layout, the number of moves can be reduced from 6 to 0. The cost per move is
Answer:
Explanation:
For each situation, identify the possible root cause or causes of activity cost, among these:
1. Plant Layout
2. Process design
3. Product design
(A) PROCESS DESIGN
The design of the process of production is the root cause of activity cost here. From the rates given, it's clear that the manual method of production costs more time and money than the mechanical production method.
A minor cause of activity cost here is the PRODUCT DESIGN; the cost of which varies with the use of labour and the use of machine.
(B) PRODUCT DESIGN
Change in design of the gear (removal of some component parts) reduces set up time and cost.
(C) PLANT LAYOUT
Redesign of manufacturing plant saves the time and cost of moves.
Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $110 million and it has total assets of $42 million. What is its Return on Equity (ROE)? Round your answer to two decimal places.
Answer:
ROE is 0.1571 or 15.71%
Explanation:
The ROE or return on equity is a measure of a business's profitability in relation to its equity. The Dupont equation breaks down the ROE into three components which are used to calculate the ROE. The formula fro ROE under dupont equation analysis is,
ROE = Net Profit/Sales * Sales/Total Assets * Total Assets/Total Equity
The part of Net Profit/Sales is also known as profit margin. The part of Sales/Total Assets is also known as Assets TurnoverThe part of Total Assets/Total equity is also known as equity multiplierROE = 0.03 * 110/42 * 2
ROE = 0.1571428571 rounded off to 0.1571
The trial balance for a business at a given point in time typically has much more detailed information than what is depicted on the financial statements. What is the accounting concept that allows for the information from the trial balance to be condensed to what is displayed on the financial statements
Answer:
Going Concern Concept
Explanation:
The Information from a trial balance is usually shown at historic values and not market values. The financial statements also show the amounts in historic not Liquidation / market values.
Thus we say the entity is foreseen to be in operation in future thus it is a going concern. The concept applied therefore is the Going Concern Concept.
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time. Assume that a maximum of 40,000 units of each sweatshirt can be sold. Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt
Answer:
Comfy Fit Company
Contribution margin per hour of machine time:
Contribution margin for 1 hour of machine time will be equal to:
Swoop = $5 x 60/6 = $50 per hour
Rufus = $15 x 60/6 = $150 per hour
Explanation:
If Contribution margin:
Swoop = $5 for 6 minutes' machine time
Rufus = $15 for 6 minutes' machine time
Therefore, contribution margin per hour will be
Contribution x 60/6.
Since 60 minutes make an hour, there will be ten times more contribution for each.
This gives an hourly contribution of $50 ($5 x 10) and $150 ($15 x 10).
Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway. Which of the following statements is correct?
A. Because human life is priceless, any measure to increase traffic safety would generate benefits that outweigh the costs.
B. Estimating the value of a human life is difficult but necessary in order to evaluate the proposal.
C. The benefits are usually easier to measure than the costs.
D. Both a and b are correct.
Answer:
B. Estimating the value of a human life is difficult but necessary in order to evaluate the proposal.
Explanation:
Cost benefit analysis is a method used to guage the cost involved in an undertaking or process compared to the benefit.
If the coat is higher than the benefit the activity is discarded.
However if the benefit is greater than the cost it is a good activity to adopt.
In this scenario there is a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway.
We will weigh the cost of setting up traffick barriers and the estimated value of human life.
If cost is more than the value of human life then the project is abandoned. But if value of human life is higher than the cost the project can proceed.
Although it is hard to estimate value of human life, we need to make an estimate in order to use the cost benefit analysis
Often, the only maintenance provided by industrial property management is A) upkeep of grounds and exterior of the building. B) cleaning office space. C) cleaning common areas including restrooms and elevators. D) refurbishing the factory floor.
Answer: A) upkeep of grounds and exterior of the building.
Explanation:
An Industrial Property Manager as the title implies refer to overseeing the use and utilization of an Industrial property such as factories, Manufacturing plants and Research and Development centres.
As a manager of such a property, your job is mostly limited to ensuring that the surroundings look neat because the interior of the building falls under the purview of the tenants and they will carry out some type of maintenance in there to ensure that the building is viable for their type of machines.
Felix, Inc., which has excess capacity, received a special order for 5,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows. Sales $210,000 - Cost of goods sold 155,000 Gross margin 55,000 Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, will the company's income be increased or decreased
Answer:
$12,500 increase
Explanation:
The computation of the company income increased or decreased in the case of the special order accepted is shown below:
But before that we need to determine the variable cost of goods sold which is
The Variable cost of goods sold for 10,000 units is
= Total cost of goods sold - Fixed manufacturing cost
= $155,000 - $30,000
= $125,000
Now
Variable cost of goods sold for 5,000 units is
= $125,000 × 1 ÷ 2
= $62,500
And,
Special order size = 5,000 units
Selling price per unit in the special order = $15
So, the company income increased or decreased is
Sales (5,000 units × $15) $75,000
Less Variable cost of goods sold -$62,500
Net income $12,500
Therefore the net income is increased by $12,500 and in this, the fixed cost is not relevant so we do not considered it
Mitchell graduated with his A.A. in criminal justice, but has no job. Factors that are important to Mitchell in his job search are making as much money as possible and working in a job that is a stepping stone to a career as a lawyer or judge. Mitchell is finally offered four jobs for which he is qualified. Which job is the best fit for Mitchell?
Job 1: Security Guard at his Synagogue
Volunteer
Near home
Friendly people
Experience in his career field
Job 2: Postal Service Mail Sorter
5 minutes from home
Work on a small team
$60,000-$74,000 per year
Some weekends required
Job 3: Loss Prevention at Large Retail Chain
Lots of independence in work
Pays minimum wage to begin
Entry-level job in law enforcement
Opportunity to become a full-time job
Job 4: Legal Assistant
$48,000 per year
Fast paced, tight deadlines
Must move across the country
Opportunities to network with lawyers
A. Job #1
B. Job #2
C. Job #3
D. Job #4
Answer:
Job #4
Explanation:
Working as a legal assistant can be a stepping stone for working as judge in the future .
The pay is also reasonably high
I hope my answer helps you
On January 1, Year 1, a company issues $320,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $349,428.
Required:
Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1.
Answer with its Explanation:
At the issuance date, the bond the double entry would be as under:
Dr Cash $349,428
Cr Bonds payable $320,000
Cr Premium on Bonds payable $29,428
At June 30,2021, semi annual interest payment date, the double entry would be:
Dr Interest expense $12,230 ($349,428 * 7% * 6/12)
Dr Premium on Bonds payable $570
Cr Cash $12,800 (320,000 * 8% * 6/12)
Now at the end of the first six months, the carrying value of the bond would decrease by $570 ($349,428*8% * 6/12 - $320,000*7% * 6/12) to $348,858.
Now at December 31,2021, the next semi annual interest payment date, the double entry on this date would be:
Dr Interest expense $12,210 ($348,858 * 7% * 6/12)
Dr Premium on Bonds payable $590
Cr Cash $12,800 ($320,000 * 8% * 6/12)
Now at the end of the first six months, the carrying value of the bond would decrease by $590 ($348,858*8% * 6/12 - $320,000*7% * 6/12) to $348,268.
Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Accumulated depreciation on this date was $24,000. Paper uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Paper and Scissor as of December 31, 20X9: (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)
Paper Company Scissor Company
Debit Credit Debit Credit
Cash $323,000 $116,000
Accounts Receivable 165,000 97,000
Inventory 193,000 115,000
Investment in Scissor Stock 515,000 0
Lad 250,000 125,000
Buildings and equipment 875,000 250,000
Cost of Goods Sold 278,000 178,000
Depreciation Expense 65,000 12,000
Selling & Administrative Expense 312,000 58,000
Dividends Declared 90,000 30,000
Accumulated Depreciation $630,000 $48,000
Accounts Payable 85,000 40,000
Bonds Payable 150,000 100,000
Common Stock 625,000 250,000
Retained Earnings 498,000 188,000
Sales 880,000 355,000
Income from Scissor 107,000 0
Total $2,975,000 $2,975,000 $981,000 $981,000
Required: a. Prepare any equity method journal entry(ies) related to the investment in Scissor Company during 20X9.
b. Prepare a consolidation worksheet for 20X9
Answer:
Paper (Holding) Company
a) Journal Entries, related to the investment in Scissor Company:
Date Description Debit Credit
Dec. 31 Investment in Scissors $107,000
Income from Scissors $107,000
To record 100% share from Scissors' income.
Dec. 31 Cash $30,000
Investment in Scissors $30,000
To record 100% share of dividend declared.
b) Consolidation Worksheet:
Paper Company Scissor Company Consolidated
Debit Credit Debit Credit Debit Credit
$'000 $'000 $'000 $'000 $'000 $'000
Cash 323 116 439
Accounts Receivable 165 97 262
Inventory 193 115 308
Investment in Scissor 515 0
Land 250 125 375
Buildings & equipment 875 250 1,125
Cost of Goods Sold 278 178 456
Depreciation Expense 65 12 77
Selling & Administrative 312 58 370
Dividends Declared 90 30 90
Accumulated Depreciation 630 48 678
Accounts Payable 85 40 125
Bonds Payable 150 100 250
Common Stock 625 250 625
Retained Earnings 498 188 498
Sales 880 355 1,235
Income from Scissor 107
Total $2,975,000 $2,975,000 $981,000 $981,000
NB: The Cash balance for Paper was overstated by $91,000. This is why the totals cannot add up, even in the question. But, I have used the figure of $323,000 as provided, hoping that you will make the necessary changes as you discover this observation.
Explanation:
1) Eliminated Entries:
Debit Credit
Investment in Scissor 515,000
Common Stock 250,000
Retained Earnings 188,000
Income from Scissor 107,000
Dividend Declared 30,000
Total 545,000 545,000
2. Consolidation accounting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company, used when a parent entity owns more than 50% of the shares of another entity (called a subsidiary).
"On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90,164 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $90,164 annual payment at December 31, what amount goes toward interest expense
Answer:
1.Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2.Interest expense 28,800
Principal Reduction 61,364
Explanation:
MM Co.
1 . Journal entry
Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to
Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.
Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2. Calculation of the amount goes toward interest expense and Principal reduction
Interest expense 28,800
(360,000*8%)
Principal Reduction 61,364
(90,164-28,800)
A university found that 18% of its students withdraw without completing the introductory statistics course. Assume that 20 students registered for the course. If required, round your answer to four decimal places.
(a) Compute the probability that 2 or fewer will withdraw.
(b) Compute the probability that exactly 4 will withdraw.
(c) Compute the probability that more than 3 will withdraw.
(d) Compute the expected number of withdrawals.
Answer:
(a)0.2748 (b) 0.2125 (c) 0.4974 (d) 3.6
Explanation:
Solution
Given that:
By applying binomial probability formula we have the following:
P(X = x) = (ₙ Cₓ) * p^x * (1 - p)^n - x
Thus
(a) P(X ≤ 2)
= P(X = 0) + P(X = 1) + P(X = 2)
= (20 C₀) * 0.18^0 * (0.82)^20 + (20 C₁) * 0.18\^1 * (0.82)^19 + (20 C₂) * 0.18^2 * (0.82)^18
Probability = 0.2748
(b) P(X = 4) = 0.2125
(c) P(X > 3) = 0.4974
(d)The expected number of withdrawals = n * p = 20 * 0.18
= 3.6
A company manufactures specialty pollution-sensing devices for the offshore oil industry. One particular device has reached maturity, and the company is considering whether to replace it with a newer model. Technologies have not changed dramatically, so the new device would have similar functionality to the existing one, but would be smaller and lighter in weight. The firm's three choices are: (1) keep the old model, (2) design a replacement device with internal resources, (3) and purchase a new design from a firm that is one of its suppliers. The market for these devices will be either "receptive" or "neutral" of the replacement model. The financial estimates are as follows: Keeping the old design will yield a profit of $6 million dollars. Designing the replacement internally will yield $10 million if the market is "receptive," but a $3 million loss if the market is "neutral." Acquiring the new design from the supplier will profit $4 million under "receptive," $1 million under "neutral." The company feels that the market has a 70 percent chance of being "receptive" and a 30 percent chance of being "neutral." Draw the appropriate decision tree. Calculate expected value for all courses of action. What action yields the highest expected value?
Answer:
designing a replacement with internal resources yields the highest expected value = $6,100,000
Explanation:
expected values:
keep the old model
expected profits = $6,000,000
design a replacement with internal resources
receptive market = $10,000,000 x 0.7 = $7,000,000
neutral market = -$3,000,000 x 0.3 = -$900,000
total expected value = $6,100,000
purchase new design
receptive market = $4,000,000 x 0.7 = $2,800,000
neutral market = $1,000,000 x 0.3 = $300,000
total expected value = $3,100,000
there is no room here to draw a proper decision tree, but it would be something like this:
⇒ keep old model ⇒ $6,000,000 in profits
sensing device ⇒ design a replacement ⇒ receptive market
$7,000,000
⇒ neutral market
-$900,000
continuing from above ⇒ expected value
$6,100,000
⇒ outside supplier ⇒ receptive market
$2,800,000
⇒ neutral market
$300,000
continuing from above ⇒ expected value
$3,100,000
A disgruntled employee of your major competitor mails top-secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor
Question:
A disgruntled employee of your major competitor mails top?secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor? What would you do?
a. Throw the plans or secrets away.
b. Send them to your research department for analysis.
c. Notify your competitor about what is going on.
d. Call the FBI.
Answer:
You are to Call the FBI
Explanation:
In this case, where a disgruntled employee of your major competitor mails top-secret information or new product samples to you, the right decision to make acclrding to your company's code and ethics is to contact the security agencies, which in this case is the Federal Bureau of Investigation (FBI). The Federal Bureau of Investigation would make proper investigations and take proper steps to protect your company so they(your company) won't be accused of stealing information from a competitor in time to come.
This is the best way, both ethically and legally to handle this situation.
If the government removes a binding price floor from a market, then the price received by sellers will Group of answer choices decrease, and the quantity sold in the market will decrease decrease, and the quantity sold in the market will increase increase, and the quantity sold in the market will decrease. increase, and the quantity sold in the market will increase.
Answer:
decrease, and the quantity sold in the market will decrease decrease,
Explanation:
Price floor is set by the government or an agency of the government and it is the minimum price that a good or service must be sold.
A price floor is binding if it is set above equilibrium price.
If a binding price floor is removed, price would fall back towards equilibrium and the quantity sold would decrease.
The fall in quantity supplied is in line with the law of supply which says the higher the price, the higher the quantity supplied and the lower the price , the lower the quantity supplied.
I hope my answer helps you
Purple Hedgehog Forestry Group has generated earnings of $140,000,000. Its target capital structure consists of 60% equity and 40% debt. It plans to spend $85,000,000 on capital projects over the next year and expects to finance this investment in the same proportion as its capital structure. The company makes distributions in the form of dividends.
What will Purple Hedgehog Forestry's dividend ratio be if it follows a residual distribution policy?
a. 63.40%
b. 47.55%
c. 79.25%
d. 71.33%
Purple Hedgehog Forestry is considering using more equity and less debt in its capital Structure. Which Of these statements best describes how this will affect the firm's annual dividend, assuming that all other factors are held
constant?
a. Purple Hedgehog Forestry will pay a smaller annual dividend if it goes forward with this decision.
b. Purple Hedgehog Forestry's annual dividend will be greater if it goes forward with this decision.
Answer:
1.63.57%
2.a. Purple Hedgehog Forestry will pay a smaller annual dividend if it goes forward with this decision.
Explanation:
1. Calculation of what will Purple Hedgehog Forestry's dividend ratio be if it follows a residual distribution policy
Total the amount of Dividend paid using the residual dividend policy will be:
Total Dividend = Net Income – [Total Capital Budget x Equity Ratio]
Let plug in the formula
= $140,000,000 – [$85,000,000 x 60%]
= $140,000,000 - $51,000,000
= $89,000,000
The Expected Dividend pay-out Ratio for this year will be:
Expected Dividend Pay-out Ratio = [Total Dividend Paid / Net Income] x 100
Let plug in the formula
= [$89,000,000 / $140,000,000] x 100
= 63.57%
Therefore Purple Hedgehog Forestry Group’s dividend payout ratio will be 63.57%”
2.The statements that best describes how this will affect the firm’s annual dividend, assuming that all other factors are held constant will be
Statement-A which state that "Purple Hedgehog Forestry Group will pay a smaller annual dividend if it goes forward with this decision."
Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes is inelastic, and the supply of cigarettes is elastic. If a tax were levied on the sellers of both of these commodities, we would expect that the burden of
Answer:
both taxes would fall more heavily on the buyers than on the sellers
Explanation:
Here are the options:
a. both taxes would fall more heavily on the buyers than on the sellers. b. the macaroni tax would fall more heavily on the sellers than on the buyers, and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers c. the macaroni tax would fall more heavily on the buyers than on the sellers, and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers O d. both taxes would fall more heavily on the sellers than on the buyers.
Tax is a compulsory sum levied on goods and services. Taxes increases the price of goods and services
Supply is elastic if a small change in price leads to a greater change in the quantity supplied.
Demand is inelastic if there's little or no change in demand when price is increased.
More burden of tax should fall on the consumers because their demand is inelastic. So, if prices rise as a result of the tax, there would be little or no change in quantity demanded.
But in the case of suppliers, they are sensitive to price and a rise in price would cause quantity supplied to fall and revenue would fall.
I hope my answer helps you
Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?
Answer:
If the company follows the residual dividend policy, the income he must earn is $898,750
The dividend payout ratio will be 55.63%
Explanation:
In order to calculate the income must it earn we would have to make the following calculation:
income must it earn=55% equity+dividends
55% equity=$725,000*0.55
55% equity=$398,750
Therefore, income must it earn=$398,750+$500,000
income must it earn=$898,750
If the company follows the residual dividend policy, the income he must earn is $898,750.
To calculate the dividend payout ratio we would have to calculate the following formula:
dividend payout ratio=dividends paid/income must it earn
dividend payout ratio=$500,000/ $898,750
dividend payout ratio=55.63%
The dividend payout ratio will be 55.63%