Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.

Answer: a. retained earnings was overstated and liabilities were understated.

Explanation:

Dividends are paid from the Retained Earnings so when a company announces a dividend, that dividend is to be deducted from the Retained earnings. As this was not done, the Retained earnings at year end are overstated.

As the dividends are not paid immediately, they become liabilities. With the relevant entries not made, the dividends were not recorded as liabilities which makes liabilities understated.

Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process inventory, March 1 22,000 Work in process inventory, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Selling and administrative expenses 79,000
Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers. Zoe Corporation Statement of Cost of Goods Manufactured For the Month Ended March 31

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:

a. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000; Accounts Payable, $56,000; and Fund Balance, $239,000.
b. The budget was passed. Estimated revenues amounted to $1,280,000 and appropriations totaled $1,276,400. All expenditures are classified as General Government.
c. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021.
d. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.
e. Contracts were issued for contracted services in the amount of $104,000.
f. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400.
g. Other expenditures amounted to $986,000.
h. Accounts payable were paid in the amount of $1,130,000.
i. The books were closed.

Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.

You see me now 4 kkt

For each of the procedures described in the table below, identify the audit procedure per­ formed and classification of the audit procedure using the following:

Audit Procedures: Classification of Audit Procedure
(I) Analytical procedure (9) Substantive procedures
(2) Confirmation (I0) Test of controls
(3) Inquiry
(4) Inspection of recordsordocuments
(5) Inspection of tangible assets
(6) Observation
(7) Recalculation
(8) Reperformance

Procedure Audit Procedure Classification of Audit Procedure

a. Requested responses directly from customers as to amounts due.
b. Compared total bad debts this year with the totals for the previous two years.
c. Questioned management about likely total uncollectible accounts.
d. Watched the accounting clerk record the daily deposit of cash receipts.
e. Examined invoice to obtain evidence in support of the ending recorded balance of a customer.
f. Compared a sample of sales invoices to credit files to determine whether the customers were on the approved customer list.
g. Examined a sample of sales invoices to see if they were initialized by the credit manager indicating credit approval.

asper makes a $28,000, 90-day, 8.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)

Svetlana won $1,000,000 in a contest, to be paid in twenty $50,000 payments at yearly intervals, the first payment paid at the time of the contest. (Of course, the present value of her winnings is less than $1,000,000.) Svetlana decided to keep X each year to spend and deposit the remaining $50;000 X into an account earning an annual effective interest rate of 5%. She chose the value X to be as large as possible so that, at the moment of the 20th deposit, the account would have grown to such a size that it would provide Svetlana and her heirs at least X per year in interest forever. Find X.

Consider a multifactor model with two factors. A well-diversified portfolio (Portfolio P) has a beta of 0.75 on factor 1 and a beta of 1.25 on factor 2. The risk premiums on the factor 1 and factor 2 are 1% and 7%, respectively. The risk-free rate of return is 7%. What is the expected return on portfolio P, according to a two-factor model

Consider the experiments. Experiment 1: A study is done to determine which of two fuel mixtures allows a rocket to travel farther over a period of time. Rocket A, which requires additional equipment to keep it stable, is used to test one fuel mixture, and rocket B is used to test the other. Both rockets are identical aside from their mass. The results indicate that rocket B traveled farther than rocket A over the same period of time. Experiment 2: A double-blind experiment is performed to test whether a new drug is effective in lowering blood pressure. A random sample of subjects with high blood pressure is assigned to two groups. One group receives the new drug and the other group does not. Neither group is permitted to take any other medications during the experiment or to change their lifestyles in any way. The results of the experiment show that the drug is effective in lowering blood pressure.

Identify the experiment in which confounding occurs and the reason for its occurrence.

a. Neither experiment has a confounding variable.
b. Experiment 1 has a confounding variable related to the fuel mixtures. Varying the fuel mixture could skew the results of the study and should be kept constant.
c. Experiment 2 has a confounding variable related to the type of experiment. A double-blind experiment may increase the risk of the placebo effect and possibly skew the results.
d. Experiment 1 has a confounding variable related to the mass of the rockets. Any variation in mass may cause a discrepancy in the distance traveled.
e. Experiment 2 has a confounding variable related to the subjects used. Choosing a sample of subjects with high blood pressure instead of individuals with different blood pressure levels may confuse the results.

On January 1, 2021, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King's sales revenue, with a quarterly sales minimum of $600,000. Payments at the beginning of each quarter are based on previous quarter sales. During the previous 5-year period, Taco King has generated quarterly sales of over $750,000. Fogelman's interest rate, known by Taco King, was 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2021.
2. Prepare the journal entries for Taco King at April 1, 2021. First quarter sales were $760,000. Amortization is recorded quarterly.

Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. After much thought, she's seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owner's insurance premium of $560 and property taxes of $1,000 a year (she's now paying renter's insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners' association). Julie's income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments of around 4 percent.

Required:
a. Evaluate and compare Julie’s alternatives of remaining in the apartment or purchasing the condo.
b. Working with a friend who is a realtor, Julie has learned that condos like the one that she’s thinking of buying are appreciating in value at the rate of 3.5 percent a year and are expected to continue doing so. Would such information affect the rent-or-buy decision made in a?
c. Discuss any other factors that should be considered when making a rent-or-buy decision.
d. Which alternative would you recommend for Julie in light of your analysis?

The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.

The company should work the extra shift if the cost of capital is between ___________ % and ___________ %

g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get

what will you use for banca/boat to move​

Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city's unions and retirees, who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash.
True or False

Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.

connecting u dropped its price from $20 to $16 per gigabyte of data. Joe according to the midpoint formula, Connecting U reduced its price by what percentage?

Question # 5

Multiple Select

Aside from distributing investments and savings, the primary tasks of the financial service system

are (Select all that apply.)

U providing avenues to borrow money

growing the country's economy

aiding in the creation of capital formation

U managing and mitigating the risks

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f Europe has a real GDP growth rate of 5%, and the United States has a real GDP growth rate of 6%, while money growth in Europe is 7%, and money growth in the United States is 5%, what would the monetary exchange rate model predict for exchange rates in the long run

• What are the advantages and disadvantages of owning versus outsourcing for each of these components (staff, computer servers, software licensing, and data storage)?

You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board

Calloway Company recorded a right-of-use asset of $790,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be:

Below are cash transactions for a company, which provides consulting services related to mining of precious metals.

a. Cash used for purchase of office supplies, $1,600.
b. Cash provided from consulting to customers, $42,600.
c. Cash used for purchase of mining equipment, $67,000.
d. Cash provided from long-term borrowing, $54,000.
e. Cash used for payment of employee salaries, $23,400.
f. Cash used for payment of office rent, $11,400.
g. Cash provided from sale of equipment purchased in c. above, $21,900.
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,000.
i. Cash used to pay office utilities, $3,700.
j. Purchase of company vehicle, paying $9,400 cash.

Required:
Calculate cash flows from operating activities.

What are the 2 main sources of data

Which section of a CAR Residential Purchase Agreement is a provision divided into three sections: mediation, arbitration of disputes, and additional terms?

The following summary transactions occurred during 2021 for Bluebonnet Bakers:
Cash Received from:
Collections from customers $490,000
Interest on notes receivable 11,500
Collection of notes receivable 54,000
Sale of investments 34,000
Issuance of notes payable 175,000
Cash Paid for:
Purchase of inventory 235,000
Interest on notes payable 7,500
Purchase of equipment 90,000
Salaries to employees 95,000
Payment of notes payable 40,000
Dividends to shareholders 35,000
The balance of cash and cash equivalents at the beginning of 2021 was $26,000.
Required:
Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities

Managers must be able to determine whether their workers are doing an effective and efficient job, with a minimum of errors and disruptions. They do so by using a performance appraisal, an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. Managing effectively means getting results through top performance. That's what performance appraisals at all levels of the organization are for—including at the top, where managers benefit from review by their subordinates. In the 360-degree review, management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities.

a. True
b. False

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.

January February
Sales $428,400 $476,000
Direct materials purchases 142,800 148,750
Direct labor 107,100 119,000
Manufacturing overhead 83,300 89,250
Selling and administrative expenses 94,010 101,150

All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,190 of depreciation per month.

Other data:
1. Credit sales: November 2019, $297,500; December 2019, $380,800.
2. Purchases of direct materials: December 2019, $119,000.
3. Other receipts: January—Collection of December 31, 2019, notes receivable $17,850; February—Proceeds from sale of securities $7,140.
4. Other disbursements: February—Payment of $7,140 cash dividend.

The company’s cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500.

Required:
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.

Marketing by the Numbers: Pricey Sheets
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more consumers pay almost $3,000 for Frett'e "Tangeri Pizzo king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long staple organic cotton from India. Given the cost information below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.
Cost/King-size Set
Raw Cotton $28.00
Spinning/Weaving/Dyeing $12,00
Cut/Sew/Finishing $10,00
Material Transportation $3,00
Factory Fee $16,00
Inspection and Import Fees $14,00
Ocean Freight/Insurance $5,00
Warehousing $8,00
Packaging $15,00
Promotion $30,00
Customer Shipping $15,00
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.

The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by

Use the information from the balance sheet and income statement below to calculate the following ratios:

a. Current Ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Fixed asset turnover
k. Return on equity

Balance Sheet ASSETS

Cash $100,000
Accounts receivable 30,000
Inventory 50,000
Prepaid expenses 10,000
Total current assets $190,000
Gross plant and equipment 401,000
Accumulated depreciation (66,000)
Total assets $525,000

LIABILITIES AND OWNERS' EQUITY

Accounts payable $90,000
Accrued liabilities 63,000
Total current liabilities $153,000
Long-term debt 120,000
Common stock 205,000
Retained earnings 47,000
Total liabilities and equity $525,000
Income Statement Sales* $210,000
Cost of goods sold (90,000)
Gross profit $120,000
Selling, general, and
administrative expenses (29,000)
Depreciation expenses (26,000)
Operating profits $65,000
Interest expense (8,000)
Earnings before taxes $57,000
Taxes (11,970)
Net income $45,030