Assume that IBM leased equipment that was carried at a cost of $67,000 to Crane Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $22,879 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $97,001. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 9%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $97,001.

Required:
Prepare IBM's December 31, 2019, journal entries at commencement of the lease.

Answer:

Date                    Account Title                                 Debit                 Credit

Dec. 31, 2019     Lease Receivable                       $97,001

                           Cost of Goods sold                    $67,000

                           Sales Revenue                                                      $97,001

                           Inventory                                                                $67,000

Date                    Account Title                                 Debit                 Credit

Dec. 31, 2019      Cash                                          $22,879

                            Lease Receivable                                                 $22,879          

Basically, nations trade: Question 7 options: in order to stockpile goods in case of national disaster or emergency. because most nations tend to have yearly surpluses of goods. because no nation's economy can produce all of the goods and services that it needs. in order to maintain peaceful relationships with neighboring countries.

Tambe Electric entered into a written agreement with Home Depot to provide copper wire to Tambe at a price set forth in the writing, and allowed the contractor the option of paying for the wire over a period of time. Tambe later tried to purchase such wire on a payment plan but Home Depot refused. As Home Depot did not fulfill this written agreement, Tambe sued for $68,000, the additional cost it had to subsequently pay to obtain copper wire for its work. Home Depot defended that it had made an oral condition precedent requiring payment in full by Tambe at the time it accepted the price quote in the written agreement. The result is that:_________

In the welding operations of a bicycle manufacturer, a bike frame has a flow time of about 13.6 hours. The time in the welding operation is spent as follows: 3 hours waiting in front of the cutting machine for the batch to start, 3 hours waiting for the setup of the machine, 1 hour waiting for the other pieces of the batch to go through cutting, 2 minute at the cutting machine, and 3 hours waiting for the transfer to the welding machine. Then, at the welding machine, the unit spends 1 hour waiting in front of the welding machine for the batch to start, 1 hour waiting for the setup of the welding machine, 0.6 hour waiting for the other pieces of the batch to go through welding, 0.65 minute at the welding machine, and 1 hour waiting for the transfer to the next department.
1. Determine the exact flow time.2. What is the value-added percentage of the flow time?

Consider a firm that had been priced using a 10.00 percent growth rate and a 14.00 percent required rate. The firm recently paid a $1.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 12.00 percent rate. How much should the stock price change (in dollars and percentage)

If the MPC were about 0.75 on average, this would imply a government spending multiplier of about 4, according to the simple formula used in introductory courses. However, real world estimates of the spending multiplier in the US are often in the (wide) range of 0.5 to 2.25. What is a frequently cited reason why the measured spending multiplier is lower than what the simple formula would predict

Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments:

Molding Polishing Total
Estimated overhead $400,000 $80,000 $480,000
Direct labor hours (expected and actual):
Form A 1,000 5,000 6,000
Form B 4,000 15,000 19,000
Total 5,000 20,000 25,000

Machine hours:
Form A 3,500 3,000 6,500
Form B 1,500 2,000 3,500
Total 5,000 5,000 10,000

Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 25,000 units of Form A produced and sold and 50,000 of Form B.

Required:
a. Calculate the overhead rates for each department.
b. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit.

Some students want to start a business that cleans and polishes cars. It takes 1.5 hours of labor and costs $2.25 in supplies to clean a car. It takes 2 hours of labor and costs $1.50 in supplies to polish a car. The students can work a total of 120 hours in one week. They also decide that they want to spend no more than $135 per week on supplies. The students expect to make a profit of $7.75 for each car that they clean and a profit of $8.50 for each car that they polish. What is the maximum profits the students can make

5
Given a population A which has an average of 30% and a standard deviation of 6% and a
population B which has an average of 24% and a standard deviation of 12%. Then the population
B has data values that are more variable relative to the size of the population mean.
tof
estion
Select one:
O True
False

A firm with two factories one in Michigan and one in Texas has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plans the last units of output produced in Michigan added $5 to total cost while the last units of output products in Texas added $3 to total the firm
a. is maximizing profit should keep producing 200 units in Michigan and 300 units in Texas
b. should produce 250 units in each factory
c. should produce more in the Michigan factory and less in the Texas factory
d. should produce more in the Texas factory and less in the Michigan factory

Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.13 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $43.52 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $61.44 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 60 162 Number of tiers on the cake 4 3 Cost of purchased decorations for cake $ 16.89 $ 38.61 Assuming that the company charges $500.54 for the Haupt wedding cake, what would be the overall margin on the order

Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years
Complete the table by calculating physical capital per worker as well as labor productivity
Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour.
In this problem, measure productivity as the quantity of goods per hour of labor
Year Physical l Labor Force Physical Capital Labor Output Labor
Capital (Workers) per Worker Hours (Garments) Productivity
(Looms) (Looms) (Garments per
hour of labor)
2026 120 60 3300 23100
2027 400 100 3500 49000
Based on your calculations__________in physical capital per worker from 2026 to 2027 is associated with ____________ in labor productivity from 2026 to 2027
Suppose you're in charge of establishing economic policy for this small island country
Which of the following policies would lead to greater productivity in the weaving industry?
a. Offering free public education to every worker in the country
b. Subsidizing research and development into new weaving technologies
c. Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving
d. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as: Group of answer choices B items. A items plus B items. B items plus C items. C items. A items.

Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year, indefinitely. The required return on this stock is 12 percent and the stock currently sells for $94 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The foreign exchange market is a market for converting the currency of one country into that of another country.

a. True
b. False

Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $164 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $74. Selected information follows.

Billable hours to clients for the year totaled 8,400, consisting of information systems services, 5,040; e-commerce consulting, 3,360. Administrative cost of $417,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $222,840; in-house computing, $157,000; and miscellaneous office charges, $37,920. A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

Information Systems Services E-Commerce Consulting Total
Number of clients 255 75 330
Number of computer hours 3,740 2,340 6,080
Number of client transactions 720 840 1,560

Required:
Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm’s information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.

On April 1, 2020, Novak Company assigns $505,300 of its accounts receivable to the Third National Bank as collateral for a $327,200 loan due July 1, 2020. The assignment agreement calls for Novak to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).

Required:
a. Prepare the April 1, 2020, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed’s collection of $364,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2020.
c. On July 1, 2014, Rasheed paid Third National all that was due from the loan it secured on April 1, 2020. Prepare the journal entry to record this payment

Lipscomb Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm could sell, at par, 100 USD preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. Libscomb is a constant-growth firm which just paid a dividend of $2.00, sells for 27.00 USD per share, and has a growth rate of 8 percent. The firm's marginal tax rate is 40 percent.

Required:
Calculate the WACC.

Countries like China and other developed economies are in the Neo classical zone. What is the best option for these countries to sustain their economies?

a.
Decrease aggregate demand

b.
Increase aggregate supply

c.
Move back to Keynesian Zone

d.
Move back to intermediate zone​

Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,040 (including freight) from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $720. 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730. 20 Purchased books on account for $720 from Priceless Book Publishers, terms 1/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780. 30 Granted General Bookstore $130 credit for books returned costing $80.
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places e.g. 15,222.)

Jackson and Max are the only inhabitants of a small tropical island. Each drives an old, smoke-belching Oldsmobile. Suppose that installing a pollution-control device costs $940. Suppose also that for each pollution-control device installed, both Jackson and Max will see their health care costs decrease by $660.

Required:
Write down the payoff matrix.

Creating your own flyer assignment

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $320,000 and lists a cash selling price of $437,424. Appropriate adjusting entries are made quarterly.

Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $24,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset 5 years
Interest rate charged by the lessor 4%

Required:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

what is a tax bracket?​

Match to correct letter option
1. LRAS
2. Market value
3. Disposable income
4. Real
5. Final
6. Excess reserves
A. Money leftover after taxes are paid
B. Quantity theory of money helps explain the shape of this.
C. Part of GDP s definition that captures the quality of the goods and services.
D. Caused by a fall in the money supply
E. Part of GDPâs definition that means you exclude used goods and services.
F. Sticky prices/wages justifies its shape
G. Part of GDP s definition that means you exclude intermediary goods and services.
H. Used to make loans.
I. Used to cover withdraws.
J. Interest rates are at their lower bound
K. Represents the economy s fundamentals, such as population, capital, and technology.
L. Adjusted for inflation.
M. Caused by a collapse of the stock market.

The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are:

a. At the beginning of 2019, the company purchased a machine for $510,000 (salvage value of $51,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation but failed to deduct the salvage value in computing the depreciation base for the 3 years.
b. At the end of 2020, the company failed to accrue sales salaries of $45,000.
c. A tax lawsuit that involved the year 2019 was settled late in 2021. It was determined that the company owed an additional $81,000 in taxes related to 2019. The company did not record a liability in 2019 or 2020 because the possibility of loss was considered remote, and charged the $81,000 to a loss account in 2021.
d. Swifty Company purchased a copyright from another company early in 2019 for $50,000. Swifty had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of 20 years.
e. In 2021, the company wrote off $87,000 of inventory considered to be obsolete; this loss was charged directly to Retained Earnings.

Required:
Prepare the journal entries necessary in 2018 to correct the books, assuming that the books have not been closed. Disregard effects of corrections on income tax.

Posting to T-Accounts Post the amounts for the following transactions (a) through (f) to the appropriate T-accounts.
a. Receive merchandise inventory costing $9,000, purchased with cash.
b. Sell half of inventory in (a) for $7,500 on credit.
c. Place order for $5,000 of additional merchandise inventory to be delivered next month.
d. Pay employee $4,000 for compensation earned during the month.
e. Pay $7,000 rent for use of premises during the month.
f. Receive full payment from customer in part (b).

The following facts relate to Duncan Corporation.

1. Deferred tax liability, January 1, 2019, $80,000.
2. Deferred tax asset, January 1, 2019, $30,000.
3. Taxable income for 2019, $115,000.
4. Cumulative temporary difference at December 31, 2019, giving rise to future taxable amounts, $250,000.
5. Cumulative temporary difference at December 31, 2019, giving rise to future deductible amounts, $95,000.
6. Tax rate for all years, 40%. No permanent differences exist.
7. The company is expected to operate profitably in the future.

Required:
a. Compute the amount of accounting income for 2019.
b. Prepare the journal entry to record income tax expense, deferred income taxes, and income payable for 2019

The following is from the 2021 annual report of Kaufman Chemicals, Inc.:

Statements of Comprehensive Income Years Ended December 31

2021 2020 2019
Net income $856 $686 $541
Other comprehensive income:
Change in net unrealized gains on AFS investments, net of
tax of $18, ($16), and $16 in 2021, 2020, and 2019, respectively 30 (24) 26
Other (3) (2) 2
Total comprehensive income $883 $660 $569

Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:

($ in millions )
2021 2020
Shareholders' equity:
Common stock 375 375
Additional paid-in capital 8979 8979
Retained earnings 8059 7503
Accumulated other comprehensive income 125 88
Total shareholders' equity $17,538 $16,945

Required:
From the information provided, determine how Kaufman calculated the $125 million accumulated other comprehensive income in 2021.

Bank Reconciliation and Related Journal entries.
The book balance in the checking account of Lyle's Salon as of November 30 is $3,292.08. The bank statement shows an ending balance of $2,118.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
A) An ATM withdrawal of $150 on November 18 by Lyle for personal use was not recorded on the books.
B) A bank debit memo issued for an NSF check from a customer of $19.50.
C) A bank credit memo issued for interest of $19 earned during the month.
D) On November 30, a deposit of $1,177 was made, which is not shown on the bank statement.
E) A bank debit memo issued for $17.50 for bank service charges.
F) Checks No. 549, 561, and 562 for the amounts of $185, $21, and $9.40, respectively, were written during November but have not yet been received by the bank.
G) The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.65, has not yet been received by the bank.
H) Check No. 523 written to a creditor in the amount of $372.90 was recorded in the books as $327.90.
Required:
1. Prepare a bank reconciliation as of November 30.
2. Prepare the required journals entries.

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:

Units
Production 50,000
Sales ($18 per unit) (42,000)
Inventory, January 31 8,000
Manufacturing costs: Variable $575,000
Fixed 80,000
Total $655,000
Selling and administrative expenses:
Variable $35,000
Fixed 10,500
Total $45,500

Required:
a. Prepare an income statement using absorption costing.
b. Prepare an income statement using variable costing.