Answer: C. II and III
Explanation:
As the shares were acquired by the officer on the open market, they are considered Control Stock. Sale of Control Stock falls under the purview of Rule 144 of the SEC that governs the sale of restricted, unregistered, and control securities so a Form 144 will need to be filed with the Sec making III correct.
Furthermore, control stock are not subject to a holding period requirement so option II is correct as well. Option C is therefore the best answer.
Kingbird Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,360 ounces of grape concentrate at $0.02 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.90 each 150 yeast tablets at $0.26 each 250 nutrient tablets at $0.14 each 2,400 ounces of water at $0.005 per ounce Kingbird estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)
Answer:
$5.272
Explanation:
The computation of the standard cost of the ingredients for one gallon of wine is shown below:-
But before that we need to do the following calculations
3,360 ounces of grape concentrate at $0.02 per ounce is (Considering 4%)
= 3,360 × $0.02 ÷ 96%
= $70
54 pounds of granulated sugar at $0.55 per pound is (Considering 10%)
= 54 × $0.55 ÷ 90%
= $33
60 lemons at $0.90 each is (Considering 25%)
= 60 × $0.90 ÷ 75%
= $72
150 yeast tablets at $0.26 each is
= 160 × $0.26
= $41.6
250 nutrient tablets at $0.14 each is
= 250 × $0.14
= $35
2,400 ounces of water at $0.005 per ounce is
= 2,400 × $0.005
= $12
Therefore 50 gallon cost is = $70 + $33 + $72 + $41.6 + $35 + $12
= $263.6
So, cost per gallon = $263.6 ÷ 50
= $5.272
assume that autonomous consumption is $1610 billion and disposable income is $11,200 billion. Using the consumption function, calculate consumption expenditure
Answer: $9,226
Explanation;
The consumption function is;
Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)
Marginal Propensity to Consume;
=Increase in consumption expenditure/ Increase in Disposable income
= 680/1,000
= 0.68
Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)
= 1,610 + ( 0.68 * 11,200)
= $9,226
A project has an expected risky cash flow of $500 in year 3. The risk-free rate is 4%, the expected market rate of return is 14%, and the project's beta is 1.20. Calculate the certainty equivalent cash flow for year 3, CEQ3. (Assume CAPM holds.)
The certainty equivalent cash flow for year 3, CEQ3 is $360.33
The computation of the certainty equivalent cash flow for year 3 is as follows:
But before that, the cost of equity should be determined via using the Capital Asset Pricing Model (CAPM).
Cost of equity = Risk-free rate + beta × (expected market rate of return - risk-free rate)
= 4% + 1.20 × (14% - 4%)
= 16%
Now the certainty equivalent cash flow for year 3 is
= $500 ÷ (1+ 0.16)^3
= $360.33
Therefore we can conclude that the certainty equivalent cash flow for year 3, CEQ3 is $360.33
Learn more about the CAPM here: brainly.com/question/14531617
Ideally, in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when.
Answer:
The answer is quantified and measurable.
Explanation:
Goals need to be quantified and measurable in effective marketing planning. To determine what needs to be accomplished and when, we must put figures to it. This makes performance measurement easier where variances at the end can be analysed.
For example, one of the marketing goals for bank A might be to onboard 100 new customers every month for a year after the launching of its new mobile app.
This example is quantified and can be measured every month.
Historically the stock market goes up when there is bad news on unemployment. The latest statistics show the unemployment rate is skyrocketing so this could be a good time to buy stocks.
The arguments target is:
A. Bad news on unemployment
B. The stock market in the past when there is bad news on unemployment
C. The stock market now
Answer: C. The stock market now
Explanation:
The Argument target refers to the subject of the discussion in question. The speaker in question is attempting to explain why it would be a good time to buy stocks in the present which concerns the stock market today making it the subject.
The speaker does this by calling into evidence, the correlations between variables in the past and showing that with one variable ( high unemployment) currently in effect, the other variable (increasing stock prices) which it correlates with therefore has a chance of happening in the present.
Morgan Company issues 10%, 20-year bonds with a par value of $720,000 that pay interest semiannually. The current market rate is 9%. The amount paid to the bondholders for each semiannual interest payment is:
Answer:
$36,000
Explanation:
Calculation for the amount to be paid to the bondholders for each semiannual interest payment
Using this formula
Semiannual interest payment = Face value Amount*Interest Rate*Time
Let plug in the formula
Semiannual interest payment = $720,000*0.10*0.50
Semiannual interest payment = $36,000
The amount paid to the bondholders for each semiannual interest payment is $36,000
Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7. Daily fixed costs are $1,710, and variable costs are $4 per meal. With a capacity of 950 meals per day, the restaurant serves an average of 900 meals each day.Requried:a. Determine the current average cost per meal.b. A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of $150. The owner refuses, saying he would lose $0.60 per meal if he accepted this offer. How do you think the owner arrived at the $0.60 figure? Comment on the owner's reasoning.c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of $4.50 per meal. Should the restaurant owner accept this offer? Why or why not?
Answer:
Nature's Garden
a. Determination of the current average cost per meal:
Variable cost per meal = $3,800 ($4 x 950) based on full capacity
Fixed costs per day = $1,710
Total costs = $5,510
Average cost per meal = $5,510/950 = $5.80
b. Girl Scouts' offer of $150 for 30 girls:
Offered price per person = $5 ($150/30)
Projecting a loss of $0.60 per meal, this gives a total loss of $18 ($0.60 x 30)
Projected revenue from the offer = $150 + $18 = $168
Projected revenue per meal = $168/30 = $5.60
Actual revenue to be received per meal = $5.00
Loss of $0.60
The owner arrived at the $0.60 loss because his total costs per meal was $5.60.
c. Since the variable cost per meal is $4, the restaurant owner could accept the offer if the additional 300 meals will not increase his daily fixed costs due to lack of capacity. If the fixed costs increase with this addition, then it may not be reasonable to accept the offer. Based on this offer, the contribution to defraying fixed costs, given present capacity, is only $0.50 ($4.50 - $4) per meal.
Explanation:
Selling price of chef's salad = $7
Daily fixed costs = $1,710
Variable costs per meal = $4
Meals capacity per day = 950
Average meals = 900
Nature's Garden has a fixed cost of $1,710 based on current capacity of 950 meals per day. The fixed cost may increase with increasing capacity. This fact must be borne in mind when making decisions.
The Sherman Antitrust Act of 1890 was successful enough in reducing the power of cartels and monopolies that no further legislation to curb monopoly power has ever been needed.
a. True
b. False
Answer:
False
Explanation:
After the Sherman Antitrust Act of 1890 , the Clayton Act was passed in 1914. the purpose of this act was to strengthen the anti trust law
Central to agency theory is the concern with problems that can arise between the principals who are the owners of the firm and the agents who are the people who are paid by outside consultants to perform a job on their behalf.
a. True
b. False
Answer:
Correct Answer:
a. True
Explanation:
Agency theory is a principle that is used to explain and resolve issues in the relationship between business principals and their agents in any given company's establishment. In addition, the relationship could be one that is between shareholders, as principals on one hand, and company executives, as agents.
Agency problem is that many authors have found that include separations of ownership from control, conflict of interest and risk adverseness etc.
What is the term agency theory about?
Agency theory is a principle that is used to explain and resolve issues in the relationship between business principals and their agents in any given company's establishment.
In addition, the relationship could be one that is between shareholders, as principals on one hand, and company executives, as agents.
Therefore, correct option is True.
Learn more about agency theory, refer to the link:
https://brainly.com/question/26253714
Dog Up! Franks is looking at a new sausage system with an initial cost of $445,000 that will last for five years. The fixed asset will qualify for 100 percent bonus depreciation in the first year, at the end of which the sausage system can be scrapped for $53,000. The sausage system will save the firm $139,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $25,000. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
The NPV of this project is $494,385.54.
Explanation:
Note: See the attached excel file for the calculation of the NPV.
Net present value (NPV) of project refers to the the difference between the project's present value of its cash cash inflows and the present value of of its cash outflows over a specific period of time.
Since inflow is positive and outflow is negative, NPV can also be calculated by just sum of both the inflows and outflows.
The NPV of this project $494,385.54.
o What types of human resource issues should management be aware of and sensitive to when making this change in distribution methods
Answer:
Management should be aware of and sensitive to the reaction of outstanding employees who relate directly to the former distribution methods.
Explanation:
When the company changes in distribution methods, the employees who relate and gets benefits directly to the former would react negatively. They are afraid of their own dismissal or income reduction. Some may react extremely which results in damages for the company. Hence, the company should work on internal communications to all employees before officially making the change.
Inefficient output and price, few choices for consumers, and rent seeking are all problems associated with
Answer: c. Monopolies.
Explanation:
Because Monopolies have no competition, the main incentive to be efficient is missing. This leads to a situation where Monopolies are not as efficient as they are to be in production as well as price because they will charge a price that does not match the optimal quantity associated with that price.
With no or few competition in the market, consumers will not have a lot of choices on entities to source the good from and there is a problem of Rent seeking with Monopolies as well. Rent seeking for monopolies occurs when they charge people above the price they are to charge if they were in a competitive market. They are therefore making more money than they should at the expense of customers.
Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why? Describe several ways you may be able to use the techniques above as you progress in your professional career.
Answer:
The most important technique for project evaluation is the net present value (NPV) which compares the present value of discounted cash flows against the initial costs associated with the project. The other two most important techniques used are the payback period (either regular or discounted) and the internal rate of return (IRR).
Depending on the company's needs, sometimes one technique might be used instead of others. E.g. technological firms generally use the payback period because most of their projects have a very short life, 1 or 2 years. Other times, you might have to compare different projects and even if they are not mutually exclusive, no company can dispose of money freely. It only invests in certain projects that have a minimum required rate of return.
But the basic technique, the NPV, is the most relevant in a sense that no project with a negative NPV should be accepted.
A large firm in the newspaper industry employs 250 people, of which 32 are upper-level managers. As a result of this employee-to-manager ratio, the firm experiences 12.8% reduced productivity. At the same time, a small firm with 65 employees and 4 upper-level managers experiences 6.2% reduced productivity.
If everything else is constant, what can we say about the cost structure in this industry over this range of production?
A. The firms in this industry have economies of scale.
B. The firms in this industry have constant returns to scale.
C. The firms in this industry have diseconomies of scale.
Answer:
C. The firms in this industry have diseconomies of scale.
Explanation:
Diseconomies of scale arise when the business expands so its cost per unit rises at the time when the output is also increased so ultimately the cost is also increased
in this, the firm experience excessive average cost that result in lower productivity as compared before when there is an increase in output
Therefore according to the given situation, the third option is correct as it fits the given scenario
Darvelle previously worked in a traditional office building with private cubicles. He recently changed jobs to a tech start-up, and he is having trouble getting used to the open layout and free-form work spaces. What component of organizational culture does Darvelle find challenging
Answer:
Hi! The answer is “workplace artifacts”
The component of organizational culture that Darvelle finds challenging is: Workplace Artifacts.
Psychologist Edgar Schein proposed that there were three components of organizational culture that included workplace artifacts, values, and assumptions.
Artifacts are those obvious structures in an organization that can be seen by all including the visitors therein.
It can be confusing to observers especially if they do not understand the culture of the organization.
So, the open layout and free-form workspace in the new organization that Darvelle worked in is an aspect of Artifacts.
Learn more about organizational culture here:
https://brainly.com/question/16049983
A newer form of performance appraisal is called the ___________ because it encourages feedback from all around the employee including those who report to him/her.
Answer:
360-degree review
Explanation:
A 360-degree review is a process in which a company gathers information about the performance and behavior of an employee from different sources that can be coworkers, supervisors and subordinates but also from people outside the company that have to interact with the person like suppliers to evaluate the employee and help him/her to develop skills. According to this, the answer is that a newer form of performance appraisal is called the 360-degree review because it encourages feedback from all around the employee including those who report to him/her as in this form of evaluation the company obtains feedback about the employee's performance from different sources.
Selected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:
Raw materials used ..... $300,000
Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 60 percent of direct labor costs) ..... 681,000
Cost of goods available for sale ...... 826,000
Selling and general expenses ...... 30,000
Beginning Inventories
Raw materials ...... $70,000
Work-in-process...... 85,000
Finished goods ...... 90,000
Ending Inventories
Raw materials ...... $80,000
Work-in-process ...... 30,000
Finished goods ....... 110,000
Determine each of the following:
a. Cost of raw materials purchased
b. Direct labor costs charged to production
c. Cost of goods manufactured
d. Cost of goods sold
Answer:
a. Purchases $310,000
b. Direct labor $ 238,125
c. Cost of goods manufactured $ 736,000
d. Cost of goods sold $ 716,000
Explanation:
Cascade Manufacturing Company
Raw materials used ..... $300,000
Add Raw materials Ending ...... $80,000
Less Raw materials Beginning...... $70,000
a. Purchases $310,000
Add Raw materials Ending to Raw materials used and subtract Raw materials Beginning to get Raw materials Purchases.
Total manufacturing costs $ 681,000
Less Raw materials used ..... $300,000
Conversion Costs $ 381,000
Conversion Costs = Direct Labor + Factory Overhead
$ 381,000= x + 0.6 x
$ 381,000= 1.6x
b. x= Direct labor = $ 381,000/1.6= $ 238,125
Factory Overhead= 0.6 *$ 238,125= $ 142875
Find Conversion Costs and then apply the ratio to get the direct labor costs.
c.
Cascade Manufacturing Company
Cost of goods manufactured
Raw materials Beginning...... $70,000
Add Purchases $310,000
Less Raw materials Ending ...... $80,000
Raw materials used ..... $300,000
Add Direct labor $ 238,125
Factory Overhead $ 142875
Total manufacturing costs $ 681,000
Add Work-in-process Beginning...... 85,000
Cost of goods available for manufacture $ 766,000
Less Work-in-process Ending...... 30,000
Cost of goods manufactured $ 736,000
Add and subtract as above to get the Cost of goods manufactured.
d. Cascade Manufacturing Company
Cost of goods sold
Raw materials Beginning...... $70,000
Add Purchases $310,000
Less Raw materials Ending ...... $80,000
Raw materials used ..... $300,000
Add Direct labor $ 238,125
Factory Overhead $ 142875
Total manufacturing costs $ 681,000
Add Work-in-process Beginning...... 85,000
Cost of goods available for manufacture $ 766,000
Less Work-in-process Ending...... 30,000
Cost of goods manufactured $ 736,000
Add Finished goods Beginning...... 90,000
Cost of goods available for sale $ 826,000
Less Finished goods Ending....... 110,000
Cost of goods sold $ 716,000
Add and subtract as above to get the Cost of goods sold.
Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in dividends and inflation averaged 3.2 percent. Today, you sold your shares for $82.20 a share. What is your approximate real rate of return on this investment?
Answer:
5.65%
Explanation:
Last year a stock of $78.00 was bought
During the period of one year $2.70 was received in dividend and inflation averaged 3.2%
Today the shares was sold for $82.20
The first step is to calculate the nominal return
= ($82.20-$78.00+$2.70)/$78.00
= 6.9/78
= 0.0885×100
= 8.85%
Therefore, the approximate real rate can be calculated as follows
= 8.85%-3.2%
= 5.65%
Hence the approximate real rate of return on this investment is 5.65%
A 20-year-old woman wants to purchase a $100,000 one-year life insurance policy. What should the insurance company charge the woman for the policy if it wants an expected profit of $50?
Answer:
Hello some parts of the question is missing here is the missing part
Age probability of female death
20 0.00060
30 0.00070
40 0.00095
50 0.00300
Answer : $110
Explanation:
Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age
expected profit for insurance company = $50
cost of insurance = $100000
For the company to make a profit of $50 we make use of this relation
x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20 = 50
= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50
= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50
= 0.9994 x - 60 + 0.00060 x = 50
hence x = 50 + 60 = $110
Which of the following acts requires that a trustee be appointed for sales of bonds, debentures, and other debt securities of public corporations?
a. Securities Investor Protection Act
b.Trust Indenture Act
c. Investment Company Act
d. Investment Advisors Act
Answer:
The correct answer is the option B: Trust Indenture Act.
Explanation:
To begin with, the name of "Trust Indenture Act of 1939" or TIA refers to the an american law that specifically supplements the Securities Act of 1933 and whose purpose is basically put more safety in the cases where debt securities are distributed in the United States. It does it by requiring the appointment of a suitably and totally independent trustee who is qualified and has the only job to act for the benefit of the holders of those securities, that could be bonds, debentures or others. In addition, this act is managed obviously by the same agent as the other one, the Securities and Exchange Commission
What is another name for progress monitoring? a. Curriculum-based measurement c. Curriculum-based learning b. Assessment d. None of these
Answer:
Curriculum based measurement
Answer:
a. Curriculum-based measurement
It's correct
A company has 500 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $60 per share. It also has 20,000 shares of common stock outstanding, and the total value of its stockholders' equity is $680,000. The company's book value per common share equals:
Answer:
$32.50
Explanation:
Calculation for the company's book value per common share
Using this formula
Book value per common share =[Stockholders' equity -Preferred shares*Preferred stock Stock price per share/ Shares of common stock outstanding,
Let plug in the formula
Book value per common share= [$680,000 - (500 x $60)]/20,000
Book value per common share=$680,000-$30,000/20,0000
Book value per common share= $650,000/20,000
Book value per common share=$32.50
Therefore the company's book value per common share will be $32.50
An investment adviser places large block trades for securities positions that are being purchased for its customers' accounts in order to lower its commission costs. The trades are often executed piecemeal, at different prices. The adviser, after being confirmed that the entire block has been filled, allocates the shares to its accounts. As a favor to its most valuable employees, the adviser allocates the shares purchased at the lowest prices to its employees' accounts; and then allocates the remaining shares to its customer accounts pro-rata. The adviser has disclosed its allocation method only to its employees. Which statement is TRUE
Answer: The investment adviser has breached its fiduciary duty because it has not disclosed its method of allocating shares to its customers
Explanation:
The options to the question are:
a. The investment adviser has breached its fiduciary duty to its customers because the block order must be executed at one price, not in pieces at differing prices
b. The investment adviser has breached its fiduciary duty because it has not disclosed its method of allocating shares to its customers
c. The investment adviser has not breached its fiduciary duty because it has disclosed its method of allocating shares to its employees
d. The investment adviser has not breached its fiduciary duty to customers because it has obtained trade executions for customers at lower commission costs.
Based on the scenario in the question, it should be noted that the investment adviser has breached its fiduciary duty because it has not disclosed its method of allocating shares to its customers.
Fiduciary duty is a legal obligation whereby a party has to work in the best interest of the other party and should also be trustworthy but in this situation, this isn't thw case.
"The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours
Answer:
$86,000 and $99,380
Explanation:
The flexible budget formular is fixed at $50,000 plus variable costs
The direct labor hour is $4 per hour
The total budgeted cost at 9,000 hours can be calculated as follows
= $50,000 + ($4×9,000 hours)
= $50,000 + $36,000
= $86,000
The total budgeted cost at 12,345 hours can be calculated as follows
= $50,000 + ( $4×12,345 hours)
= $50,000 + $49,380
= $99,380
Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively
Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
A. True
B. False
Answer: True
Explanation:
Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.
It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.
A project with an initial cost of $27,250 is expected to generate cash flows of $6,600, $8,700, $9,100, $8,000, and $7,400 over each of the next five years, respectively. What is the project's payback period?
Answer:
It will take 4 years and 130 days to recover for the initial investment.
Explanation:
Giving the following information:
A project with an initial cost of $27,250 is expected to generate cash flows of $6,600, $8,700, $9,100, $8,000, and $7,400
The payback period is the time required to recover for the initial investment:
Year 1= 6,600 - 27,250= -20,650
Year 2= 8,700 - 20,650= -11,950
Year 3= 9,100 - 11,950= -2,850
Year 4= 8,000 - 2,850= 5,150
To be more accurate:
(2,850/8,000)*365= 130
It will take 4 years and 130 days to recover for the initial investment.
On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $5,400 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of:_______.
a. $900
b. $2,700
c. $0
d. $5,400
Suppose Rocky Brands has earnings per share of $2.33 and EBITDA of $29.3 million. The firm also has 5.3 million shares outstanding and debt of $125 million (net of cash). You believe Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 12.9 and an enterprise value to EBITDA multiple of 7.1, estimate the Enterprise Value of Rocky Brands by using both multiples. Which estimate is likely to be more accurate?
Answer:
enterprise value to EBITDA.
Explanation:
The computation of the value of the stock using P/E ratio is shown below:-
Stock value = (P/E ratio × EPS) × Number of shares outstanding
= (12.9 × $2.33) × 5.3 million
= 159.3021 million
Now, the computation of the value of the stock using EBITDA multiple is shown below:-
Stock value = (EBITDA multiple × EBITDA) - Net debt
= (7.1 × $29.3 million) - $125 million
= 208.03 - $125 million
= 83.03
There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.
Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below.
On October 1, 2021, Grasshopper lent $110,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022.
On November 1, 2021, the company paid its landlord $22,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount.
On August 1, 2021, Grasshopper collected $27,000 in advance rent from another company that is renting a portion of Grasshopper’s building. The $27,000 represents one year’s rent, and the entire amount was credited to Deferred Revenue.
Depreciation for the year is $23,000.
Vacation pay for the year that had been earned by employees but not paid to them or recorded is $13,000. The company records vacation pay as Salaries Expense.
Grasshopper began the year with $27,000 in its Supplies account. During the year $67,000 in supplies were purchased and debited to the Supplies account. At year-end,supplies costing $27,000 remain on hand.
Required:
Prepare the necessary adjusting entries on December 31, 2021.
Answer and Explanation:
The Journal entry is shown below:-
1. Interest receivable $2,200 ($110,000 × 8% × 3 ÷ 12)
To Interest income $2,200
(Being interest income accrued is recorded)
2. Rent expense Dr, $15,000 ($22,500 × 2 ÷ 3)
To Prepaid rent $15,000
(Being expiry of prepaid rent is recorded)
3. Deferred revenue Dr, $11,250 (27000 × 5 ÷ 12)
To Rent income $11,250
(Being rental income earned is recorded)
4. Depreciation expense Dr, $23,000
To Accumulated depreciation $23,000
(Being depreciation expense is recorded)
5. Salaries expense Dr, $13,000
To Salaries payable $13,000
(Being accrued vacation pay is recorded)
6. Supplies expense Dr, $67,000 ($27,000 + $67,000 - $27,000)
To Supplies $67,000
(Being supplies used is recorded)
The preparation of the year-end adjusting entries for Grashopper Lawn Services is as follows:
Adjusting Journal Entries:Debit Interest Receivable $2,200
Credit Interest Revenue $2,200
Debit Rent Expense $15,000
Credit Prepaid Rent $15,000
Debit Deferred Revenue $11,250
Credit Rent Revenue $11,250
Debit Depreciation Expense $23,000
Credit Accumulated Depreciation $23,000
Debit Salaries Expense $13,000
Credit Vacation Payable $13,000
Debit Supplies Expenses $67,000
Credit Supplies $67,000
Data Analysis:Interest Receivable $2,200 Interest Revenue $2,200
($110,000 x 8% x 3/12)
Rent Expense $15,000 Prepaid Rent $15,000
($22,500 x 2/3)
Deferred Revenue $11,250 Rent Revenue $11,250
($27,000 x 5/12)
Depreciation Expense $23,000 Accumulated Depreciation $23,000
Salaries Expense $13,000 Vacation Payable $13,000
Supplies Expenses $67,000 Supplies $67,000
Learn more about preparing adjusting entries at https://brainly.com/question/13933471
Simon Company's year-end balance sheets follow.
At December 31 2015 2014 2013
Assets
Cash $25,267 $30,131 $31,387
Accounts receivable, net 75,450 50,642 41,435
Merchandise inventory 92,074 68,299 44,128
Prepaid expenses 8,301 8,066 3,418
193,532
Plant assets, net 231,487 215,775
Total assets $432,579 372,913 313,900
Liabilities and Equity
Accounts payable $106,635 $62,392 $41,849
Long-term notes payable secured by
mortgages on plant assets 79,698 84,912 71,453
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 82,746 62,109 37,098
Total liabilities and equity $432,579 $372,313 313,900
Express the balance sheets in common-size percents.
Answer:
Simon Company
Common-size percents Balance Sheet as of the years ended December 31 2015 2014 2013:
2015 % 2014 % 2013 %
Assets
Cash $25,267 5.8% $30,131 8.1% $31,387 10%
Accounts receivable, net 75,450 17.4% 50,642 13.6% 41,435 13.2%
Merchandise inventory 92,074 21.3% 68,299 18.3% 44,128 14.1%
Prepaid expenses 8,301 1.9% 8,066 2.2% 3,418 1.1%
201,092 46.5% 157,138 42.1% 120,368 38.3%
Plant assets, net 231,487 53.5% 215,775 57.9% 193,532 61.7%
Total assets $432,579 100% 372,913 100% 313,900 100%
Liabilities and Equity
Accounts payable $106,635 24.7% $62,392 16.7% $41,849 13.3%
Long-term notes payable secured by mortgages
on plant assets 79,698 18.4% 84,912 22.8% 71,453 22.8%
Total Liabilities $186,333 43.1% $147,304 39.5 $113,302 36.1%
Common stock, $10
par value 163,500 37.8% 163,500 43.8% 163,500 52.1%
Retained earnings 82,746 19.1% 62,109 16.7% 37,098 11.8%
Total liabilities and
equity $432,579 100% $372,913 100% 313,900 100%
Explanation:
Simon Company's balance sheets in common-size percents shows the relative values of assets and liabilities and equity in numeric and percentage terms to enable comparison. The company's balance sheet line items are expressed as percentages of the total, usually the total assets in each period. From the analysis, the management, investors, and other parties of Simon Company can understand the changes in the line items from year to year, thus making it possible for Simon Company to undertake a trend analysis.