Answer:
C. some factors that are not measured or observed may affect the curve.
Explanation:
a lot of unforeseen circumstances might occur. these occurrences would not be measured in the estimated demand curve. this would lead to the estimated demand curve not matching the actual demand curve.
for example, the factors affecting the demand for bread are ; price, income, price of a substitutes. these are included in estimating the demand curve for bread. Assume that a study comes out stating that bread is harmful to the health.this reduces the demand for bread. this study wasn't anticipated and included in estimating the demand curve. as a result, the actual data would differ from the estimated data
Patton Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2011, paying $376,100. The bonds mature January 1, 2021; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 11%. Patton Company uses the effectiveinterest method and plans to hold these bonds to maturity. 5. On July 1, 2011, Patton Company should increase its Held-to-Maturity Debt Securities account for the Scott Co. bonds by
Answer:
$685.55
Explanation:
Patton company ;
Bond payments $376,100 × 0.055
= $20,685.55
Less face amount $400,000 × 0.05
= $20,000
Held-to-maturity debt securities $685.55
($20,685.55 - $20,000)
Note:
Effective yield(market rate)
= 11% ÷ 2
= 5.5%
Bonds
= 10% ÷ 2
= 5%
Bookmark question for later Cross-training workers does the following for your workers a. creates a sense of achievement and job satisfaction b. workers take pride as they help their companies compete through higher productivity c. helps reduce turnover d. all of the above e. only a and b
Answer:
d. all of the above
Explanation:
Cross-training applies to workers, who are trained for different spectrum other than their job responsibilities.
Cross-training workers are multitasking and do the following tasks:
They helps other employees to appreciate each other’s jobs.They help companies through higher efficiency & productivity and are proud of that. Cross-training forces also helps in reducing the turnover to gain more profit.So, Cross-training workers helps to train other employees to perform new tasks in addition to their usual duties and the correct option is "d".
Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 million, and the fourth largest firm has sales of $2 million. If fifth through tenth largest firms combined have annual sales of $12 million, the fourfirm concentration ratio for this industry is
Answer:
0.66
Explanation:
the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.
The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million
concentration ratio of firm 1 = $10 million / $35 million = 0.29
concentration ratio of firm 2 = $7 million / $35 million = 0.2
concentration ratio of firm 3 = $4 million / $35 million = 0.11
concentration ratio of firm 4 = $2 million / $35 million = 0.06
Adding the ratios together = 0.66
The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one of the following effects on this bond?
a. increase the coupon rate.
b. decrease the coupon rate.
c. increase the market price.
d. decrease the market price.
e. increase the time period.
Answer:
The answer is D.
Explanation:
An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.
For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 = $0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.29% 9.68% 10.08% 10.50% 10.92%
Answer:
10.50%
Explanation:
According to the given situation, the solution of cost of equity from retained earning is shown below:-
Cost of equity = (D0 × (1 + g) ÷ P0) + g
Now we will put the values into the above formula.
= (0.90 × (1 + 0.07) ÷ 27.50) + 0.07
= 10.50%
Therefore for determining the cost of equity from retained earning we simply applied the above formula.
The perceived demand for a monopolistic competitor
A company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):
Answer:
The company should recognize a $800 loss.
Explanation:
Depreciation is the loss of value of an asset over its useful life, and because of the accrual principle, this depreciation is matched, as an expense, with the revenues that the asset produces in a specific period of time.
In this case, the company has expensed $17,200 over the computer system useful life. When the computer system was finally discarded, $800, representing the difference between the accumulated depreciation and the original cost of the system, where not expensed. For this reason, this $800 have to be recognized as a loss.
A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:
The journal entry for recording the warranty expense is
Dr Warranty Expense 7,400
Cr Estimated Warranty Liability 7,400
Journal entry:Dr Warranty Expense 7,400 (185,000 x 0.04)
Cr Estimated Warranty Liability 7,400
(being warranty expense is recorded)
here expense is debited as it increased the expense and liability should be credited as it also increased the liability.
Learn more about journal entry here: https://brainly.com/question/24345471
The entry for the warranty expense would be recorded in the form of the Journal entry by debiting the Warranty Expense and crediting the Estimated Warranty Liability with the amount of $7,400.
What is the Journal entry?Journal entry is defined as the primary books of accounting, it records the financial transactions of the firm as a form of recording the transaction by applying the golden rules of accounting.
This process of recording involves of transactions by giving the debit as well as credit effect of the transaction in such a manner that the transactions are recorded properly.
The Journal entry of the given case is:
Warranty Expense a/c Dr. $7,400
To Estimated Warranty Liability a/c $7,400
(being warranty expense is recorded)
The amount is calculated as:
185,000 × 0.04 = $7,400
Therefore, both the accounts are recorded with the $7,400.
Learn more about the Journal entry, refer to:
https://brainly.com/question/20421012
#SPJ6
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.2 percent per month interest on the overdue balance.
If the current balance is $11,000, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
It will take approximately 25.70 months for the the account to be paid off.
Explanation:
Assuming the customer pays at the end of every month, the relevant formula to use is therefore the formula for calculating the present value of an ordinary annuity as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value or current balance = $11,000
P = Monthly repayment = $500
r = interest rate = 1.2%, or 0.012
n = number of months = ?
Substitute the values into equation (1) and solve for n, we have:
11,000 = 500 * [{1 - [1 / (1 + 0.012)]^n} / 0.012]
11,000 / 500 = {1 - [1 / (1 + 0.012)]^n} / 0.012
22 * 0.012 = 1 - 0.988142292490119^n
0.264 = 1 - 0.988142292490119^n
0.988142292490119^n = 1 - 0.264
0.988142292490119^n = 0.736
Loglinearizing both sides, we have:
n * log (0.988142292490119) = log (0.736)
n = log (0.736) / log (0.988142292490119)
n = -0.133122185662501 / -0.00518051250378013
n = 25.70
Therefore, it will take approximately 25.70 months for the the account to be paid off.
Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two transactions on March 31, assuming the labor costs are not paid until April.
No. Date Account Titles and Explanation Debit Credit
a) Mar. 31
b) 31
Answer:
A. Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. 31
Dr Factory labour $61,300
Cr Factory wages $61,300
Explanation:
Preparation of the Journal entries for Sunland Company
A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:
Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:
31
Dr Factory labour $61,300
Cr Factory wages $61,300
Buhao Construction currently is all-equity-financed. It has 17,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $270,000 with the proceeds used to buy back stock. The debt will pay an interest rate of 11%. The firm pays no taxes.
a. What will be the debt-to-equity ratio if it borrows $220,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Debt-to-equity ratio
b. If earnings before interest and tax (EBIT) are $130,000, what will be earnings per share (EPS) if Reliable borrows $220,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
EPS $
c. What will EPS be if it borrows $420,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
EPS $
Answer:
Buhao Construction
a) Debt-to-Equity Ratio if it borrows $220,000
= Debit/Equity
= $220,000/$1,700,000
= 12.94%
b. EPS = $195,800/17,000
= $11.52
c. EPS = $173,800/17,000
= $10.22
Explanation:
a) Data and Calculations:
Outstanding Equity = 17,000 shares x $100 = $1,700,000
Interest rate = 11%
It is assumed that Buhao Construction pays no taxes
EBIT = $130,000
Debit = $220,000
Interest Expense = $24,200
Net Income = $195,800 ($220,000 - 24,200)
Debit = $420,000
Interest Expense = $46,200
Net Income = $173,800 ($220,000 - 46,200)
b) Debt-to-Equity Ratio of Buhao Construction is the relationship in ratio terms between debts and equity of the company. It shows the percentage of debts over the stockholders' equity.
c) EPS or Earnings per share shows the net income of Buhao Construction that can be attributed to each share. Stockholders use this measure to learn the profits that are generated for each share by the company during the period. A high EPS indicates that the business is profitable for stockholders.
Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?
a. Change to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets
b. Enhance differentiation through activities such as cooperative advertising) at the forward end of the value chain
c. Pressure distributors/dealers and other forward-channel allies to reduce their costs and markups
d. Insisting on across-the-board cost cuts in all value chain activities—those performed by suppliers, those performed in- house, and those performed by distributors/dealers
e. Collaborate with forward channel allies to identify win-win opportunities to reduce costs
Answer: d. Insisting on across-the-board cost cuts in all value chain activities—those performed by suppliers, those performed in- house, and those performed by distributors/dealers
Explanation:
The cost disadvantage is from the forward channel allies and not an across the board problem which involves all value chain activities. As such, the solution should be garnered towards the forward channel allies.
Insisting on cuts in areas that could be already functioning efficiently could lead to a loss of that efficiency.
Insisting on across-the-board cost cuts in all value chain activities is therefore not an option for remedying a cost disadvantage associated with activities performed by forward channel allies.
Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?
a. debit Bad Debt Expense, $21,800; credit Allowance for Doubtful Accounts, $21,800
b. debit Allowance dfor Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600
c. debit Allowance for Doubtful Accounts, $21,800; credit Debt Expense, $21,800
d. debit Bad Debt Expense, $17,600; crdit Allowance for Doubful Accounts, $17,600
Other receivables includes all of the followoing EXCEPT:
a. taes receivable
b. interest receivable
c. receivables from employees
d. notes receivabe
Answer:
1. Analysis of accounts receivables Allowance Required $19,700
Less: Credit balance available in Allowance account $2,100
Additional allowance required $17,600
The journal entry will be as follows
DEBIT CREDIT
Bad debt expenses $17,600
Allowance for doubtful accounts $17,600
Hence, the correct option is D.
2. Other receivables include all except "Notes Receivables"
Hence, the correct option is D
The Pennington Corporation issued a new series of bonds on January 1, 1985. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2014. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on January 1, 1985?
Answer:
The YTM on January 1, 1985 was 6.00%.
Explanation:
The YTM is the interest rate used to determine the Present Value of Coupons and Principle and can be found as follows :
PV = $1,000
Pmt = ($1,000 × 12 %) / 2 = - $60
P/yr = 1
n = 30 × 2 = 60
Fv = - $1,000
YTM = ?
Using a Financial Calculator, the YTM is 6.00%
Therefore, the YTM on January 1, 1985 was 6.00%.
g If the Fed is concerned about a possible recession, it ________ the federal funds rate and, in response, longterm interest rates ________ by a ________ amount than the change in shortterm rates. A. lowers; increase; smaller B. lowers; decrease; smaller C. raises; decrease; larger D. raises; increase; smaller E. raises; increase; larger
Answer:
The Fed
Concern about possible recession:
E. raises; increase; larger
Explanation:
The federal funds rate is a short-term monetary policy tool that the Federal Reserve deploys to control expansionary or recessionary economic conditions. It is the interest rate that Federal Reserve allows banks with excess to charge other banks that need to borrow to shore up their deficits. This interest rate is a short-term rate when compared to the long-term interest rates that banks charge consumers of its products and services. The long-term interest rates are affected by the inflation rates.
A firm currently sells $1,750,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $380,000. The discount line is expected to reduce sales of the expensive product line to $1,575,000. What is the incremental revenue associated with the discount product line?
Answer:
$175,000
Explanation:
A firm currently makes an amount of $1,750,000 annually from an expensive product line
The firm projects a sales of $380,000
The discount line is expected to cause a reduction in the sales of the expensive product line to $1,575,000
Therefore, the incremental revenue associated with the discount product line can be calculated as follows
= $1,750,000-$1,575,000
= $175,000
Hence the incremental revenue associated with the discount product line is $175,000
Classify each of the tasks according to whether or not they are tasks of the Federal Reserve. Tasks of the Federal Reserve Not tasks of the Federal Reserve
Answer:
Tasks of the Federal Reserve
Managing the U.S. Money Supply - one of the main functions of the Federal Reserve is managing the money supply: the quantity of money that there is in the economy. The Federal Reserve can either increase or contract the money supply.
Printing paper currency - when the Federal Reserve increases the money supply, part of that supply is printed as paper currency.
Acting as a lender of last resort - when commercial banks or governments do not have any other creditor, they turn to the Federal Reserve, which has the obligation to act as a lender of last resort.
Engaging in monetary policy - this is the reason why the Federal Reserve exists in first place. The main activity of the Fed is to engage in monetary policy, mainly with the goal of controlling inflation, and easing economic cycles.
Not tasks of the Federal Reserve
Creating the federal budget - the federal budget is developed by the president, and also by the Congress.
Engaging in fiscal policy - fiscal policy is responsability of the president, and the Congress.
Managing Europe's money supply - The Federal Reserve only manages the money supply of the United States. Europe's money supply is managed by the European Central Bank in the case of the Eurozone, and by different national central banks in the case of countries that are not part of the Euro.
Answer:
Tasks of the Federal Reserve:
Managing the US money supply
Acting as a lender of last resort
Engaging in monetary policy
Not tasks of the Federal Reserve:
Creating the federal budget
Printing paper currency
Engaging in fiscal policy
Managing India’s money supply
Childress compnay produces three products, K1, S5, and G9. Each product uses the same type of material. K1 uses 4.5 pounds of the material, S5 uses 3 pounds , and G9 uses 5.5 pounds. Demand for all products is strong but only 59900 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $158.38 $114.80 $204.52
Variable costs 86.00 91.00 139.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
Product K1 S5 G9
$ $ $
Contribution per pound 16.08 7.93 11.91
Explanation:
Contribution per pound is equate to contribution per unit divided quantity of material required per unit of product.
Contribution per pound = Contribution per unit/quantity of material
Contribution per unit =selling price - variable cost per unit
Product K1 S5 G9
$ $ $
Selling price 158.38 114.80 204.52
Variable cost (86.00) (91.00) (139.00)
Contribution per unit 72.38 23.8 65.52
Material per unit (pounds) 4.5 3 5.5
Contribution per pound 16.08 7.93 11.91
DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to partner Percy of $20,000. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its character?
Answer:
$24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
Explanation:
Calculation for what how much income will Percy report for the year and what is its character
Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000
= 60,000 x 40%
= 24,000.
Calculation for Percy Interest income:
4,000 x 40%
= 1,600
Guaranteed Payment: 20,000
Therefore what Percy will report will be: $24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
Consider the circular flow model to answer the questions that follow.
a. In the circular flow model, households provide inputs to firms through the _____________ and in exchange receive _____________ from firms.
b. In the circular flow model, firms receive ___________ from households when households purchase goods and services in the
Answer:
The answer is :
A. Resource market - income
B. Expenditure - product market.
Explanation:
A. Resource market - income
B. Expenditure - product market
The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.
A.
In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).
B.
Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)
An electric power plant uses solid waste for fuel in the production of electricity. the cost Y in dollars per hour to produce electricity is Y=11+0.4X+0.29X2, where X is in megawatts. Revenue in dollars per hour from the sale of electricity is 16X−0.2X2. Find the value of X that gives maximum profit. (Round to two decimal places.)
Answer:
The value of X that gives maximum profit is 15.92.
Explanation:
Before answering the question, Y and Revenue (R) given in the question are first correctly restated as follows:
Cost = Y = 11 + 0.4X + 0.29X^2 .......................................... (1)
Revenue = R = 16X − 0.2X^2 .............................................. (2)
Differentiating each of equations (1) and (2) with respect to X to obtain marginal cost (MC) and marginal revenue (MR), we have:
dY/dX = MC = 0.4 + 0.58X .................................................. (4)
dR/dX = MR = 16 - 0.4X ....................................................... (5)
In production theory, profit is maximized when MR = MC. Therefore, we equate equations (4) and (5) and solve for X as follows:
0.4 + 0.58X = 16 - 0.4X
0.58X + 0.4X = 16 - 0.4
0.98X = 15.6
X = 15.6 / 0.98
X = 15.92
Therefore, the value of X that gives maximum profit is 15.92.
Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 19,000 Accounts payable 1,600 Salaries expense 26,000 Common stock 12,000 Land 11,000 Notes payable 13,000 Service revenue 32,000 Cash 4,600 Retained earnings ?
Answer:
$6,000
Explanation:
Net income for the year = Service revenue - Salaries
= $32,000 - $26,000
= $6,000
Since Net income = retained earnings,
Therefore, retained earnings = $6,000
a. Galaxy Sales has sales of $746,700, cost of goods sold of $603,200, and inventory of $94,300. How long on average does it take the firm to sell its inventory
Answer:
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Explanation:
We are to determine the days of inventory on hand
days of inventory on hand = number of days in a period / inventory turnover
inventory turnover = cost of goods sold / inventory - $603,200 / $94,300 = 6.396607
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.
a) True
b) False
Answer:
The answer is true.
Explanation:
Both of payback period and Accounting Rate of Return do not consider the time value of money. And this is one of the big disadvantages in using these methods as a means of valuating capital project.
While payback period is the length of time it takes a firm to recover the cost of an investment, accounting rate of return is annual return(profit) on investment.
Payback period is only interested in when it will get its Investment back. It ignores the value or time after this investment has been realized.
Swing Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Swing Co. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Swing Co.’s bonds?
Answer:
YTM = 7.77%
YTC = 7.62%
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {90 + [(1,000 - 1,130.35)/18]} / [(1,000 + 1,130.35)/2]
YTM = 82.758333 / 1,065.175 = 0.07769 = 7.77%
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
YTC = {90 + [(1,060 - 1,130.35)/8]} / [(1,000 + 1,130.35)/2]
YTC = 81.20625 / 1,065.175 = 0.07623 = 7.62%
The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then formed a corporation and invested $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million.
a. What are the book value and market value of the firm?
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
Answer:
Book Value is $0.2 million
Market Value is $50 million
Book Value per share is $0.2 per share
Market Value per share is $50 per share
Explanation:
Part A. The book value of Alchemy Products Inc., is $0.2 million and its market value is $50 million.
Part B.
The Book value per share of Alchemy Products Inc., is calculated as under:
Book Value per share = $0.2 million / 1 Million shares = $0.2 per share
The Market value per share of Alchemy Products Inc., is calculated as under:
Market Value per share = $50 million / 1 Million shares = $50 per share
If the rate of inflation is 4.8 %4.8%, what nominal interest rate is necessary for you to earn a 2.2 %2.2% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.
Answer:
Nominal rate of return= 7.11%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.
Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
real rate - 2.2%, inflation - 4.8%
Nominal rate of return =(1.022)× (1.048) - 1 = 0.071056
Nominal rate of return = 0.071056 × 100 = 7.1056 %
Nominal rate of return= 7.11%
Marco was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing
n the video, Marco says he was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing ............... when they send Marco to seminars instead of, for example, increasing his salary in exchange for his continued high performance at MBSC. They could maintain Marco’s high level of motivation by:........................
A. Sending him on an all-expense-paid Caribbean cruise for two weeks
B. Reimbursing his tuition as he seeks a master’s degree in fitness management
C. Reassuring him that he has a job with MBSC as long as he performs well
D. Setting up an employee discount program at a nearby coffee shop, laundromat, and tasalon
Answer:
Valence
C. Reassuring him that he has a job with MBSC as long as he performs well
Explanation:
By sending Marco to seminars, Mike and Bob are addressing VALENCE; a psychological value an individual put on another person, in relation to the attractiveness of individual whose a psychological value has been placed. In this case, a psychological value placed on Macro by his managers is the valuable rewards they would get from his professional development, rather than increasing his salary in exchange for high performance.
Therefore, they could maintain Marco’s high level of motivation by reassuring him that he has a job with MBSC as long as he performs well.
Levine Company uses the perpetual Inventory system.
Apr. 8 Sold merchandise for $5,700 (that had cost $4,212) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
12 Sold merchandise for $5,600 (that had cost $3,629) and accepted the customer's Continental Card. Continental charges a 2.5% fee.
Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Journal entries are given below
Explanation:
April 8
Sales
DEBIT CREDIT
Cash $5,472
Credit Expense (5700x4%) $228
Sales Revenue $5,700
Cost of Sales
DEBIT CREDIT
Cost of goods sold $4,212
Inventory $4,212
April 12
Sales
DEBIT CREDIT
Cash $5,460
Credit card expense (5600x2.5%) $140
Sales Revenue $5,600
Cost of sales
DEBIT CREDIT
Cost of goods sold $3,629
Inventory $3,629
On February 12, Travis Company purchased merchandise on account from a supplier for $10,300. terms 2/10, net 30.
On February 14. Travis returned $1,550 of the merchandise purchased.
On February 17, Travis Company paid for the merchandise.
Assume Travis Company is using the periodic inventory system, record the journal entries required for the above transactions.
Answer:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
February 17
Dr Accounts Payable 8,750
Cr Cash 8,575
Cr Merchandise Inventory 175
Explanation:
Preparation of the Journal entries for Travis Company using periodic inventory system
A. Based on the information given we were told that the company purchased merchandise on account from a supplier for the amount of $10,300 this means that the transaction will be recorded as:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
B. Since the company returned the amount of $1,550 of the merchandise purchased this means that the transaction will be recorded as:
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
C. Based on the information given we were told that the company paid for the merchandise, this means that the transaction will be recorded as:
February 17
Dr Accounts Payable 8,750
(10,300-1,550)
Cr Cash 8,575
(98%*8,750)
Cr Merchandise Inventory 175
(2%*8,750)