Answer:
a. Journalize the adjusting entry for the estimated customer allowances.
Dr Sales returns and allowances 10,500 Cr Customer refunds payable 10,500The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500
b. Journalize the adjusting entry for the estimated customer returns.
Dr Estimated returns inventory 8,000 Cr Cost of merchandise sold 8,000This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.
Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000150,000 pounds of orange juice in 33 months time. Suppose each orange juice futures contract is for 15,00015,000 pounds of orange juice, and the current futures price is F_0 = 118.65F 0 =118.65 cents-per-pound. Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself. Please submit your answer in cents-per-pound rounded to two decimal places. So for example, if your answer is 123.456123.456, then you should submit an answer of 123.47123.47. 1 point
Answer:
121.30
Explanation:
The future price guarantees the holder of the contract to trade a commodity at a predetermined price at a later date. The farmer has orange crops ready for sale amounting $150,000. The number of contracts required is 150,000 / 15,000 = 10 contracts.
The spot price is 118.65 cents per pound. The risk free price is the value at which farmer has agreed to sell its crops. The risk free future price will be (1 + spot price)^-time * number of contracts / time
= (1 + 118.65)^-33 * 10 / 33
= 121.30
company earnings per share market value per share 1 $ 12.00 $ 176.40 2 10.00 96.00 3 7.50 93.75 4 50.00 250.00 a. compute the price-earnings ratio for each of these four separate companies. b. for which of these four companies does the market have the lowest expectation of future performance
Answer:
a) compute the price-earnings ratio for each of these four separate companies.
To find the price-earnings ratio fir each company, use the formula:
P.E ratio = Market value per share/ Earnings per share
Company 1:
Price-earnings ratio = [tex] \frac{176.40} {12.00} = 14.70 [/tex]
Company 2:
Price-earnings ratio = [tex] \frac{96.00}{10.00} = 9.6 [/tex]
Company 3:
Price-earnings ratio = [tex] \frac{93.75}{7.50} = 12.50[/tex]
Company 4:
Price-earnings ratio = [tex] \frac{250.00}{50.00} = 5.0 [/tex]
b) The market will have the lowest expectation of future performance from company 4 because
the price-earnings ratio of company 4 is the lowest.
Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: Strategy Score in Economics Score in Statistics 1 93 81 2 77 92 The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam. a. 11 b. 81 c. 15 d. 12
Answer:
b. 81
Explanation:
The opportunity cost refers to the cost in which we foregone the options among the available ones. In this we have to sacrificed to gain another thing. We called as a real cost also
Since in the question it is given that the opportunity cost of receiving 93 on the economics exam would lead to 81 points on the statistics exam
hence, the correct option is b. 81
Journalizing and posting an adjusting entry for office supplies
On November 1, Carlisle Equipment had a beginning balance in the Office Supplies account of $600. During the month, Carlisle purchased $2,300 of office supplies. At November 30, Carlisle Equipment had $500 of office supplies on hand.
Requirements
1. Open the Office Supplies T-account, and enter the beginning balance and purchase of office supplies.
2. Record the adjusting entry required at November 30.
3. Post the adjusting entry to the two accounts involved, and show their balances at November 30.
Answer:
Office Supplies T-account
Debit :
Beginning Balance $600
Purchases $2,300
Totals $2,900
Credit:
Ending Balance $500
Used (Balancing Figure) $2,400
Totals $2,900
Adjusting Entry
Supplies Expenses $2,400 (debit)
Office Supplies $2,400 (credit)
Posting Entries.
1. Supplies Expense = $2,400 (Debit Balance)
2.Office Supplies = $500 (Debit Balance)
Explanation:
As the supplies are used during the period, recognize an expense : Supplies Expense and de-recognize the Office Supplies Asset account to the extend of the amount of inventory used during the period.
In other words we are taking out an expense (Increasing it) and decreasing an asset : Office Supplies.
There are 3 blanks for this homework problem I do not know how to do. The quesetions are bolded with blanks and question marks.
Weighted Average Method, Unit Costs, Valuing Inventories
Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method:
Units completed 196,000
Add: Units in EWIP X Fraction complete (60,000 X 40%) 24,000
Equivalent units of output (weighted average) 220,000
Less: Units in BWIP X Fraction complete (50,000 X 70%) 35,000
Equivalent units of output (FIFO) 185,000
The costs that Byford had to account for during the month of November were as follows:
BWIP $107,000
Costs added 993,000
Total $1,100,000
Required:
1. Using the weighted average method, determine unit cost.
per unit ___________??
2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory?
Cost of units transferred out _____________??
Cost of ending inventory______________??
Answer and Explanation:
1. The computation of unit cots is shown below:-
Unit cost = Total cost ÷ Equivalent units of output
Cost of per unit = $1,100,000 ÷ 220,000
= $5
2. The computation of the total cost of units transferred out and cost assigned to units in ending inventory is shown below:-
Transfer Out EWIP Total
Cost accounted for:
Goods transfer Out
(196,000 x $5) $980,000 $980,000
Goods EWIP
(24,000 x $5) 0 $120,000 $120,000
Total Cost $980,000 $120,000 $1,100,000
EWIP = Ending work in process
The December 31, 2018, balance sheet of Whelan, Inc., showed $136,000 in the common stock account and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $146,000 and $2,910,000 in the same two accounts, respectively. The company paid out $141,000 in cash dividends during 2019.
Required:
What was the cash flow to stockholders for the year?
Answer:
$169,000 negative
Explanation:
Equity = Common stock + Additional paid in surplus
Total equity at beginning= Common stock + Additional paid in surplus
=136,000+2,610,000=$2,746,000
Total equity at end= Common stock + Additional paid in surplus
=146,000+2,910,00)=$3,056,000
Hence new equity = Total equity at End - Total equity at beginning
3,056,000-2,746,000=$310,000
Cash flow to stockholders = Dividends paid - New equity
= 141,000-310,000
= -169,000
=$169,000 negative
Your firm (an Australian firm) makes a sale to a Japanese customer. The sale price is 200 million Japanese Yen payable in exactly three months from today. The current exchange rate is AUD/JPY = 90 (i.e., 1 Australian Dollar (AUD) is worth 90 Japanese Yen (JPY)). The current interest rates in Australia and Japan are 3% p.a. and 0.5% p.a., respectively.Given this information, please answer the following questions. Please label your answers according to parts.(a) Given that Australian Dollar is the domestic currency, what is the direct quote of the exchange rate between Australian Dollar and Japanese Yen ? Please round the final answer to five decimal places.(b) What is the theoretical current forward exchange rate quoted directly in terms of Australian Dollar (i.e. JPY/AUD) for delivery three months from today ? Show your input to the formula to arrive at the final answer. Please round the final answer to five decimal places.(c) How can the firm take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million ? (Hint: Which derivative instrument can be used to achieve this objective?(d) Ignoring the cost of the derivative instrument to be used in part (c), what would be the outcome from hedging if the spot exchange rate in 3 month’s time is (i) AUD/JPY=150 and (ii) AUD/JPY = 50?
Answer:
An Australian Firm Selling to a Japanese Customer
a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:
A$ 1 = ¥90
Meaning 1 Australian Dollar = 90 Japanese Yen.
Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90
b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:
= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90
= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90
= ¥351.26214 =A$1
c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.
d) If the spot exchange rate in 3 month's time is:
(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:
Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =
A$ 1,333,333.33333
Hedging outcome minus Forward Exchange outcome
A$2 million - A$ 1,333,333.33333 = A$666,666.66667
(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:
Forward Exchange outcome = in Australian Dollars = ¥200 million/ ¥50 =
A$4 million
Hedging outcome minus Forward Exchange outcome
A$2 million - $4 million = -A$2million
Explanation:
a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive ¥200 million in 90 days, can enter into a forward contract to deliver the ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.
b) If A$ 1 = ¥90
Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.
In 1947, the largest brewer in the U.S., Schlitz, had a 4.57 percent share of the domestic market. (Anheuser-Busch was number four in those days). The top ten brewers, including the number one brewer, had 29.29 percent of the domestic market. Over 70 percent of the domestic market was controlled by "all other" brewers. By the year 2001 the largest brewer was Anheuser-Busch, with a 54.76 share of the domestic market. The top ten brewers held 97.04 percent share of the domestic market in 2001. Thus, the brewing industry in the U.S. became a(n) _____ market structure.
Answer:
oligopoly
Explanation:
In an oligopoly market structure, a small number of companies control all or most of the market. In this case, the top 10 brewers in the US control 97.04% of the total beer market. In an oligopoly, no single company controls the market. in this case, even though Anheuser-Busch has a 54.76% share of the market, competition still exists with the other companies.
Power Company issued a $ 1,000,000, 5 %, 10-year bond payable at at face value on January 1, 2016. Requirements
1. Journalize the issuance of the bond payable on January 1, 2016.
2. Journalize the payment of semiannual interest on July 1, 2016. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $1,000,000
To Bond payable $1,000,000
(Being the issuance of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
2. Interest Expense Dr ($1,000,000 × 5% × 1 ÷ 2) $25,000
To Cash $25,000
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expense and credited the cash as it decreased the asset
True or false: The plantwide overhead rate method uses multiple rates to allocate overhead costs to products.
Answer:
Flase.
Explanation:
The plantwide overhead rate method uses multiple rates to allocate overhead costs to products.
False.
As the name indicates, the plantwide overhead rate uses a single rate to allocate overhead. When the predetermined overhead rate is calculated using the activity base method, you have as many predetermined rates as activities.
To calculate a plant-wide overhead rate, you need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
If 10,000 units that were 40% completed are in process at November 1, 80,000 units were completed during November, and 12,000 were 20% completed at November 30, the number of equivalent units of production for November was 75,600. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)
a. True
b. False
Answer:
Number of equivalents units= 78,400
Explanation:
Giving the following information:
Beginning inventory= 10,000 units that were 40%
Units completed= 80,000
Ending inventory= 12,000 were 20% completed
We will determine the number of equivalents units using the following structure:
COST PER EQUIVALENT UNITS:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Beginning work in process = 10,000*0.6= 6,000
Units started and completed = 80,000 - 10,000= 70,000
Ending work in process completed= 12,000*0.2= 2,400
= 78,400
The table below shows the values for several different components of GDP.
Component Value (billions of dollars)
Consumer durables $1,329.0
Consumer nondurables 2,679.0
Services 8,112.3
Business fixed investment 2,850.0
Residential fixed investment 578.0
Inventories 93.3
Exports 2,352.3
Imports 2,901.5
Government purchases 3,189.3
Requried:
What is the value of total gross investment?
Answer:
$3,521.30
Explanation:
The computation of value of total gross investment is shown below:-
Total gross investment = Business fixed investment + Residential fixed investment + Inventories
= $2,850.0 + $578.0 + $93.3
= $3,521.30
Therefore for computing the total gross investment we simply applied the above formula and ignore all other values as they are not relevant.
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would
Answer: shift to the left
Explanation:
The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.
In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.
Since 2003, Walmart has been a proponent of RFID technology, and the company wanted all of its suppliers to make use of RFID technology.The most likely reason that Walmart is supporting this technology is to help them:
Answer:
Explanation:
The most likely reason for Walmart to support this technology is that it will allow them to track and process items from their suppliers at a much more efficient rate. Since RFID technology uses radio waves to read and capture information stored on a tag attached to an object, providing a unique identifier for an object. These unique tags allow each individual item to be tracked throughout the whole process from supplier to warehouse to client. Thus preventing losses and reducing costs.
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. After the investment has been made, the $400,000 investment is
Answer:
a. Considered sunk costs, not relevant in further decision making
Explanation:
the missing options are:
a. Considered sunk costs, not relevant in further decision making b. Considered sunk costs, but still relevant in further decision making c. Considered a loss d. Considered a profitAfter the investment in new technology has been made, it will be considered a sunk cost, because they are no longer relevant or important when considering or evaluating future investments and projects. Sunk costs are expenses that have already been made and incurred, and cannot be recouped.
True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything else remains the same, the net cash flow in the next quarter is likely to decrease.
Answer:
True
Explanation:
by increasing the time customers can pay to 90 days, the amount of cash inflows is likely to reduce. thus, the net cash flow in the next quarter is likely to decrease.
Grossnickle Corporation issues 20-year, noncallable, 7.1% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity
Answer:
Price of bond= $1,185.72
Explanation:
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.
These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
annual coupon rate = 7.1%
Annual Interest payment =( 7.1%×$1000)= $71
Annual yield = = 5.5%
PV of interest payment
= A ×(1- (1+r)^(-n))/r
A- interest payment, r- yield - 5.5%, n- no of periods -19 periods
= 71× (1-(1.055)^(-19))/0.055)
= 71× 11.60765352
= 824.143
Step 2
PV of redemption value (RV)
PV = RV × (1+r)^(-n)
RV - redemption value- $1000, n- 19, r- 5.5%
= 1,000 × (1+0.055)^(-19)
= 361.579
Step 3
Price of bond = PV of interest payment + PV of RV
$824.143 + $361.579
Price of bond= $1,185.72
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $25 put into her health savings account (nonqualified) each week. Her employer matches this $25 each week.
Required:
Determine Whiteweiler's take-home pay if she is single and claims 4 allowances (use the wage-bracket method).
Answer:
Step 1: Calculate FICA (OASDI & HI):
Total wage subjected to FICA is $930. Why? Contributions to 401K is only exempted from Fed. Income Tax Withholding (FIT) not FICA. As for HSA contrib., it is exempted for both FICA and FIT. However, the plan is non-qualified, which means that $25 contributed by employee is taxable for both. The $25 matching from employer for HSA is excluded from income and income taxes.
OASDI RATE 2012: 4.2% of $930; therefore, $39.06
HI RATE 2012: 1.45% of $930; therefore, $13.49
TOTAL FICA TAX: $52.55
STEP 2: Calculate FIT:
Total earnings subjected to FIT is ($930-100)= $830. Why? $100 contributions to 401k is exempted from FIT. HSA contrib. is unqualified.; therefore, contributions from employee is taxable. Using Wage Bracket Method 2012, the FIT is $89.
STEP 3: Getting the Take-Home Pay answer:
($930-100(401k))-25(HSA:Employee)-$52.55(FICA)-89(FIT)=$663.45
Explanation:
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.Record on page 10 of the journalMar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 18 Issued credit memo for $4,400 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,910. 19 Sold merchandise on account to Vista Co., $7,400, terms FOB shipping point, 2/10, n/30. The cost of merchandise sold was $4,630. In addition, Amsterdam Supply Co. immediately paid $55 in freight charges and added this to the invoice sent. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $5,100 for merchandise delivered during March to customers under shipping terms of FOB destination.Apr. 3 Paid City Bank $850 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,212 to state sales tax division for taxes owed on sales.Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
Answer: Please see answer in the expalantion column
Explanation:
To record merchandise sold on account
Date Account Titles and Explanation Debit Credit
Mar 2 Accounts Receivable-Equinox Co $20,000
Sales $20,000.
To record cost of merchandise sold on account
Date Account Titles and Explanation Debit Credit
Mar 2 Cost of Merchandise Sold $13 150.00
Merchandise Inventory $13,150.00
To record merchandise sold for cash
Date Account Titles and Explanation Debit Credit
Mar 3 Cash(10,950 + 657) $11,607.00
Sales $10,669.00
Sales Tax Payable(10,950 x 6%) $657.00
To record cost of merchandise sold on account
Cost of Merchandise Sold $7,100.00
Merchandise Inventory $7,100.00
To record cost of merchandise sold on account
Date Account Titles and Explanation Debit Credit
Mar 4 Accounts Receivable-Empire Co $51,450.00
Sales $51,450.00
To record cost of merchandise sold on account
Cost of Merchandise Sold $35,420.00
Merchandise Inventory $35,420.00
To record merchandise sold using Master card
Mar 5 Cash(27900 +1,674) $29,574
Sales $27,900
Sales Tax Payable(27,900 x6%) $1,674
To record cost of merchandise sold using Mastercard
Cost of Merchandise Sold $18, 470.00
Merchandise Inventory $18,470.00
To record receipt of check from Equinox Co
Date Account Titles and Explanation Debit Credit
Mar 12 Cash(20,000-200) $18,000
Cost of merchandise sold (20,000 x 1%) $ 200
Account Receivable-Equinox Co $20,000
To record cost of merchandise sold using American Express
Date Account Titles and Explanation Debit Credit
Mar 14 Cash $12,380
Sales $12,380
To record cost of merchandise sold on account
Cost of Merchandise Sold $9,120
Merchandise Inventory $9,120
To record merchandise sold on Account
Date Account Titles and Explanation Debit Credit
Mar 16 Accounts Receivable-Targhee Co $28,500
Sales $28,500
To record cost of merchandise sold on account
Cost of Merchandise Sold $14,690
Merchandise Inventory $14,690
To record credit memo for returned merchandise
Date Account Titles and Explanation Debit Credit
Mar 18 Sales $4,400.00
Accounts Receivable-Targhee Co $4,400.00
To record cost of merchandise sold on account
Cost of Merchandise Sold $2,910.00
Merchandise Inventory $2,910.00
To record merchandise sold on Account
Date Account Titles and Explanation Debit Credit
Mar 19 Accounts Receivable- Vista Co $7,400
Sales $7,400
To record cost of merchandise sold on account
Cost of Merchandise Sold $4,630
Merchandise Inventory $4,630
To record freight charges on behalf of Vista Co
Accounts Receivable- Vista Co $55.00
Cash $55.00
To record transaction of receipt of check from Targhee Co(
Date Account Titles and Explanation Debit Credit
Mar 26 Cash (24,100 - 241) $23,859
Cost of merchandise sold(24,100 x1%) $241
Account Receivable-Targhee Co(28,500 -4,400) $24,100
To record transaction of receipt of check from Vista co
Date Account Titles and Explanation Debit Credit
Mar 28 Cash(7455-149.1) $7,305.00
Sales Discount (2% x $7455) $149.10
Account Receivable-Vista Co $7,400 +55) $7,455
To record transaction of receipt of check from Empire Co
Date Account Titles and Explanation Debit Credit
Mar 31 Cash $51,450.00
Account Receivable- Empire Co $51,450.00
To record payment of delivery for mechandise
Date Account Titles and Explanation Debit Credit
Mar 31 Delivery Expenses $5,100.00
Cash $5,100.00
To record p[payment of service charges to BANK
Apr 3 Credit card Expenses $850
Cash $850
To record payment of Sales Tax Division
Apr 15 Sales Tax Payable $6,212
Cash $6,212
Gross profit is equal to a. sales plus cost of goods sold b. sales less selling expenses c. sales less cost of goods sold d. sales plus selling expenses
Answer:
sales less cost of goods sold
Explanation:
Gross profit is the profit earned after after deducting the costs of goods sold from revenue
I hope my answer helps you
Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes.
$40,000 for Ken.
$30,000 for Jayne.
$20,000 for Jill.
$10,000 for Justin.
How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?
(Leave no answer blank. Enter zero if applicable.)
Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.
Answer:
May deduct 100,000 in year 2 because the amount weren’t fixed at end of year 1 reason been that the employees are tend to be eligible to receive the bonuses only in a situation where they are employed on date that bonuses were been paid.
Explanation:
Calculation of How much of the accrued bonuses can Jorgensen deduct in year 1
March 1 of Year 2
Ken 40,000
Jayne30,000
Jill20,000
Justin 10,000
Total 100,000
In March 1 of year 2 the amount of $ 100,000 may
likely be deducted reason been that it was paid within 2 and a half months of year end.
Since we were told that Jorgensen paid the bonuses to employees on March 1 of year 2 and was as well told that the employee remain employed with Jorgensen on the date of the payment in order to receive the bonus this means that May deduct 100,000 in year 2 because the amount weren’t fixed at end of year 1 reason been that the employees are tend to be eligible to receive the bonuses only in a situation where they are employed on date that bonuses were been paid.
Answer the question on the basis of the given consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20 percent. All figures are in billions.
Assets Liabilities & Net Worth
Reserves $200 Checkable Deposits $1,000
Securities 300 Stock Shares 400
Loans 500
Property 400
If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of _____ would occur and the monetary multiplier would fall to ____.
a. $50 billion; 5
b. $10 billion; 4
c. $50 billion; 4
d. $10 billion; 8
Answer:
If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of $50 billion would occur and the monetary multiplier would fall to 4. The right answer is c
Explanation:
In order to calculate the deficiency of reserves in the commercial banking system we would have to make the following calculation:
deficiency of reserves in the commercial banking system=New Reserves- Reserves
Reserves=Checkable Deposits*reserve requirement
Reserves=$1,000*20%
Reserves=$200 billion
New Reserves=Checkable Deposits*reserve requirement increase
New Reserves=$1,000*25%
New Reserves=$250 billion
Therefore, deficiency of reserves in the commercial banking system=$250 billion-$200 billion
deficiency of reserves in the commercial banking system= $50 billion
To calculate the monetary multiplier we would have to make the following calculation:
monetary multiplier=1/new reserve ratio
monetary multiplier=1/0.25
monetary multiplier=4
Therefore, If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of $50 billion would occur and the monetary multiplier would fall to 4
The term market economy is often used interchangeably with what other term?
A. Socialism
B. Capitalism
C. Communism
D. Democracy
Answer:
B. Capitalism
Explanation:
Capitalism is a type of economic system where individuals or corporations own capital goods and make financial decisions based on market prices, cost of production, and distribution of goods which are determined by competition in the free market.
The term "market economy" is often used interchangeably with Capitalism because they are similar.
On October 1, Vaughn's Carpet Service borrows $349000 from First National Bank on a 4-month, $349000, 9% note. What entry must Vaughn's Carpet Service make on December 31 before financial statements are prepared
Answer:
Dr Notes Payable 349,000
Dr Interest Payable 10,470
Cr Cash 359,470
Explanation:
Preparation of Vaughn's Carpet Service Journal entry
Since we were told that Vaughn's Carpet Service borrows the amount of $349,000 on 1st October from First National Bank based on a 4-month, $349,000, 9% note the transaction will be recorded as :
Dr Notes Payable 349,000
Dr Interest Payable 10,470
Cr Cash 359,470
$349,000 +($349,000 *.09* 4/12)
=$349,000+10,470
=$359,,470
Donald invests the $10,000 today. Donald’s interest rate is 10% and interest is compounded and paid at the end of each year. At the end of two years, Donald’s investment is worth $12,100. What is the present value of Donald’s investment?
Answer:
The present value of Donald's investment is $10,000.
When the investment's worth of $12,100 is discounted by the discount factor of 10% in two years, the resulting figure is $10,000 ($12,100)/1.21.
Explanation:
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. To calculate the present value of an investment, the future cash flows are discounted at the discount rate. The calculation of the present value is a consideration of the time value of money. This means that money received today is worth more than the same amount received in the future. So, to compensate for inflation, which alters the value of money due to time, it is expected that some interest be paid. Any interest received above the inflation rate can be regarded as profit.
The Present Value Formula is given as C/(1 + i)ⁿ, where
C = Future sum
i = Interest rate (with '1' equal to 100%)
n = number of periods.
What is the 5 stage plan for productive meetings? - Why is this important and how will it improve the success of developing a charter? - What is an example of a meeting where you've had the same experience as the video?
Answer:
Answer:
The 5 stage plans for productive meeting :
1. Agenda of meeting : This is very important in every meeting , what we need to discuss , why this meeting is so important for everyone ,etc .
2. Attendees :We have to clear about the level of meeting and we need to be specific. The number of people in the meeting should not be too large if it is not necessary .
3. Short meeting :The time period of meeting should not be too large , because in the large meeting people are getting bored and did not show full concentration during the meeting.
4. Agenda orientation:Meeting should be under and proper agenda , meeting should be deviate from the goal.
5. Outcome from meeting:After completing the meeting , there should be a list of outcome from that meeting and need to apply .
Team Charter:
Team charter is very important tool for proper functioning of a team.It help the team to achieve a specific target within the given time limit.Following are the reasons why team charter is so important.
1. Charter support
2. Define team target
3. Proper communications between team
4. Effective planning
5. Authority level
Video meeting:
Generally Skype is used for video meeting. When all the people are at different location , Skype used for online meeting.The cost of that meeting is not too high , so we can say that this is also a cost effective meeting.
Accounting software for small businesses has become so sophisticated that most small business owners will never need to consult with an actual accountant or understand accounting information themselves.
a. True
b. False
The following are selected 2017 transactions of Sean Astin Corporation.
Sept. 1 Purchased inventory from Encrino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $50,000 12-month, 8% note to Encino in payment of account
Oct. 1 Borrowed $50,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $54,000 note.
Instructions:
(A) Prepare journal entries for the selected transactions above
(B) Prepare adjusting entries at December 31
(C) Compute the total net liability to be reported on the December 31 balance sheet for: The interest-bearing note & the zero-interest-bearing note.
Answer and Explanation:
The Journal entries are shown below:-
A. a. Purchase Dr, $50,000
To Accounts payable $50,000
(Being purchase of inventory is recorded)
b.Accounts payable Dr, $50,000
To Notes payable $50,000
(Being issuance of notes is recorded)
c.Cash Dr, $50,000
Discount on notes payable Dr, $4,000
To Notes payable $54,000
(Being amount borrowed from bank and issued notes is recorded)
B. a. Interest expenses Dr, $1,000 ($50,000 × 8% × 3 ÷ 12)
To Interest payable $1,000
(Being interest expenses is recorded)
b. Interest expenses Dr, $1,000 ($4,000 × 3 ÷ 12)
To Discount on notes payable $1,000
(Being interest expenses is recorded)
C. The Computation of interest-bearing note and the zero-interest-bearing note is shown below:-
Interest-bearing note = Note payable + Interest payable
= $50,000 + $1,000
= $51,000
Zero-interest-bearing note = Note payable - Discount
= $54,000 - ($4,000 - $1,000)
= $54,000 - $3,000
= $51,000
A. The journal entries is the 1st stage of the accounting process, it records the business transactions of monetary nature in a the order of its occurrence.
B. The adjusting entries are the type of journal entries prepared at the end of the financial period to record the amount of expenses and incomes not incurred in the current period.
C. Total net liabilities is $102,000.
Computation:
The journal entries of A and B are shown in the image attached below.
C.
[tex]\begin{aligned}\text{Interest Bearing Note}&=\text{Notes Payable+Interest Payable}\\&=\$50,000+\$1,000\\&=\$51,000\end{aligned}[/tex]
[tex]\begin{aligned}\text{Zero-Interest Bearing Note}&=\text{Notes Payable-Discount}\\&=\$54,000-(\$4,000-\$1,000)\\&=\$51,000\end{aligned}[/tex]
The sum of interest bearing note and zero interest bearing note will be the total amount of net liabilities.
To know more about journal entries, refer to the link:
https://brainly.com/question/17439126
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Complete Question:
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $19,427.
b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $26,500 on a $25,000 note, including interest of $1,500.
d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $195 had been erroneously charged by the bank as $915.
f. Bank service charges for June amounted to $55.
Answer:
Pala Medical Co.
Cash amount in the balance sheet = $189,281
Explanation:
a) Calculations:
Adjusted Cash balance at June 30, 20Y1
Cash balance $166,436
c) Note received by bank 25,000
c) Interest on the note 1,500
d) Returned check (3,600)
e) Bank charges (55)
Adjusted cash balance $189,281
b) Balance as per bank statement = $195,688
a. Checks outstanding totaled ($19,427)
b. A deposit of $12,300
e. Overstated cheque 720
Adjusted bank statement balance $189,281
c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance. After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.
The movie E.T. the Extraterrestrial grossed $435,110,554 in box office receipts in 1982. The movie Titanic grossed $659,363,944 in 1997. The Consumer Price Index was 96.5 in 1982, 160.5 in 1997 and 255.657 in 2019. What is the value of the E.T. box office receipts adjusted for inflation in 1997
Answer:
E.T. the Extraterrestrial
Adjustment for inflation in 1997
Value of E.T. box office receipts = $723,681,284.11 ($435,110,554/96.5 x 160.5)
Explanation:
To adjust a 1982 receipts for inflation in 1997, the 1982 receipts is divided by the 1982 price index and multiplied by the 1997 price index. This results to an inflation-reflected receipts in 1997.
The adjustment helps to put a value that is equivalent to the current price (assessed period's current price) having factored in inflation.
A Consumer Price Index is a statistical estimate that measures the changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is measured periodically to reflect inflation.
Inflation is the general rise in the prices where a unit of currency yesterperiod buys less today than it did. It is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.