Answer:
Bridge City Consulting
1. Journal Entries:
January 1:
Debit Land (60%) $111,000
Debit Building (40%) $74,000
Credit Cash $185,000
To record the purchase of land and building for cash.
Debit Building $15,000
Credit Cash $15,000
To record the cost of renovating the building for use.
2. Depreciation on the building at the end of one year = $8,000.
3. Book value of Land = $111,000
Book value of Building = $89,000
Explanation:
a) Data and Calculations:
Building and land = $185,000
Land (60%) $111,000 Building (40%) $74,000 Cash $185,000
Building $15,000 Cash $15,000
Straight-line Depreciation on Building:
Cost of Building $89,000
Estimated useful life = 10 years
Estimated residual value = $9,000
Depreciable amount = $80,000 ($89,000 - $9,000)
Annual Depreciation Expense = $8,000 ($80,000/10)
b) The book value is different from the net book value. The net book value of the building at the end of year 2 would be $73,000 (Book value, $89,000 less Accumulated Depreciation, $16,000). It includes the residual value and the undepreciated portion of the asset.
On December 31, 2008, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2010, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.
Instructions
(a) Prepare the journal entry to record the transaction of December 31, 2008, for the Ed Abbey Co.
(b) Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2009.
(c) Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2010.
(d) Assume that Ed Abbey Co. elects the fair value option for this note. Prepare the journal entry at December 31, 2009, if the fair value of the note is $185,000.
Sunland Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes $2760000 Add temporary difference Construction contract revenue which will reverse in 2022 246000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (974400) Taxable income $2031600 Sunland's effective income tax rate is 25% for 2021. What amount should Sunland report in its 2021 income statement as the current provision for income taxes
Answer:
the current provision for income tax is $507,900
Explanation:
The computation of the current provision for income tax is shown below:
= (Income before income tax + temporary difference - depreciation expense) × effective income tax rate
= ($2,760,000 + $246,000 - $974,400) × 0.25
= $507,900
Hence, the current provision for income tax is $507,900
The same would be considered and relevant
The Car Service Center has the design capacity to perform an average of 60 repairs per day. The effective capacity of this repair shop is an average of 40 repairs day, while the actual repairs number an average of 36 per day. Given this information, the capacity efficiency percentage is ______.
Answer:
(36 /60 ) * 100
Explanation:
Based on the information given the capacity utilization percentage will be :
Capacity utilization percentage= (36 /60 ) * 100
Capacity utilization percentage=60%
Where,
36 per day represent Actual repairs number
60 repairs per day represent Design capacity
Therefore capacity utilization percentage is (36 /60 ) * 100
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come close. Landing Service has shipped many of its products internationally. In fact, 80 percent of its profits come from international sales. However, the Italian government has imposed a tax on imported furniture items to protect local companies. The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out. However, after Landing Service contacted the organization that had the power to mediate this situation, the furniture company realized that the taxation it was subjected to was legal and that there was nothing it could do about it.
Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.
a. total
b. relative
c. comparative
d. proportional
e. absolute
Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?
a. Import duty
b. Embargo
c. Revenue tariff
d. Protective tariff
e. Nontariff barrier
Answer:
Landing Service
1. Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.
e. absolute
2. Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?
a. Import duty
Explanation:
Landing Service enjoys absolute advantage with its ability to produce furniture more efficiently than any other company in the world. It implies that Landing Service can produce furniture with lesser input resources than other furniture companies in the world.
Import duty, in this scenario, refers to the tax imposed by the Brazilian government on Landing Service's furniture. This tax increases the price of the furniture for the Brazilian importers and consumers.
An industrial park is being planned for a tract of land near the river. To prevent flood damage to the industrial buildings that will be built on this low-lying land, an earthen embankment can be constructed. The height of the embankment will be determined by an economic analysis of the costs and benefits. The following data have been gathered: Embankment Height Above Roadway (m) Initial Cost 2.0 $100,000 2.5 165,000 3.0 300,000 3.5 400,000 4.0 550,000 Flood Level Above Roadway (m) Average Frequency That Flood Level Will Exceed Height in Col. 1 2.0 Once in 3 years 2.5 Once in 8 years 3.0 Once in 25 years 3.5 Once in 50 years 4.0 Once in 100 years The embankment can be expected to last 50 years and will require no maintenance. Whenever the flood water flows over the embankment, $300,000 of damage occurs. Determine which of the five heights above the roadway should be selected. The interest rate is 12%. (50 points)
Answer:
The best height will be of 3.5 as it provides the best expected present worth.
Explanation:
2.0 heights Cost $100,000 now and it is expected to have losses of 300,000 every three years:
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 300,000
time 16.67
(50 years of useful life / 3 years expected flood)
rate 0.404928
(we capitalize the 12% annual into a 3-year rate)
[tex]300000 \times \displaystyle \frac{1-(1+0.404928)^{-16.67} }{0.404928} = PV\\[/tex]
PV $738,308.8983
Present Worth: 100,000 + 738,308.90 = 838,308.90
2.5 height: cost $165,000, and we expected damage every eight year:
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 300,000
time 6.25 (50 years useful life / 8 years)
rate 1.475963176 (we capitalize the 12% annual into a 8-year rate)
[tex]300000 \times \displaystyle \frac{1-(1+1.475963176)^{-6.25}}{1.475963176} = PV\\[/tex]
PV 203,257.0478
Present worth: 203,257.05 + 165,000 = 368,257.05
3.0 cost $300,000, and we expect a flood every 25 years
[tex]300000 \times \displaystyle \frac{1-(1+16)^{-2} }{16} = PV\\[/tex]
PV $18,685.0464
Present worth: 300,000 + $18,685.0464 = 318,685.05
3.5 cost $400,000, and we expect a floor every 50 years:
PRESENT VALUE OF LUMP SUM
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 300,000.00
time 50.00
rate 0.12
[tex]\frac{300000}{(1 + 0.12)^{50} } = PV[/tex]
PV 1,038.05
Cost: 400,000 + 1,038.05 = 401,038.05
On December 31, 2009, Beam, Inc., borrowed $650,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $23,761 (beginning March 31, 2010). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on March 31, 2010, and (c) the payment of the second installment on June 30, 2010. Round amounts to the nearest dollar.
Answer:
Part a
Date - December 31, 2009
Debit : Cash $650,000
Credit : Mortgage note payable $650,000
Part b
Date - March 31, 2010
Debit : Mortgage note payable $10,761.00
Debit : Interest expense $13,000.00
Credit : Cash $23,761.00
Part c
Date - June 30, 2010
Debit : Mortgage note payable $10,976.22
Debit : Interest expense $12,784.78
Credit : Cash $23,761.00
Explanation:
At inception the Mortgage is initially measured at Fair Value, that is at the amount given by the Lender.
Mortgage payments would then include interest payments and capital repayments.
Preparing an amortization schedule would give us all the details required for this Mortgage.
Using a financial calculator, first set the data as follows :
PV = $650,000
I = 8%
P/YR = 4
N = 10 x 4 = 40
PMT = - $23,761
FV = $0
Then, prepare the amortization schedule for the mortgage note payable.
Date Capital Repayment Interest Payment Balance
Dec 31 - 09 $ 0 $ 0 $650,000.00
Mar 31 - 10 $10,761.00 $13,000.00 $639,239.00
June 30 - 10 $10,976.22 $12,784.78 $628,262.78
There was an agreement that employees will get extra payment for overtime but the management fails to implement the agreement which principle is violated?
Answer:
I think it's management or implement I will choose management if I were you
Journalizing Cash Payments Transactions
Enter the following cash payments transactions in a general journal:
Sept. 5 Issued Check No. 318 to Georgetown Inc. for merchandise purchased
August 28, $5,500, terms 2/10, n/30. Payment is made within the discount
period.
12 Issued Check No. 319 to Martin Company for merchandise purchased
September 2, $7,500, terms 1/10, n/30. A credit memo had been received
on September 8 from Martin Company for merchandise returned, $500.
Payment is made within the discount period after deduction for the return
dated September 8.
19 Issued Check No. 320 to Professional Partners for merchandise purchased
August 20, $4,000, terms n/30.
27 Issued Check No. 321 to Dynamic Data for merchandise purchased
September 17, $9,000, terms 2/10, n/30. Payment is made within the
discount period.
Answer:
Journalizing Cash Payments Transactions
General Journal
Sept. 5 Debit Accounts payable (Georgetown Inc.) $5,500
Credit Cash $5,390
Credit Cash Discounts $110
To record the issue of Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30, including discounts.
Sept. 12 Debit Accounts payable (Martin Company) $7,000
Credit Cash $6,930
Credit Cash Discounts $70
To record the issue of Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.
Sept. 19 Debit Accounts payable (Professional Partners) $3,400
Credit Cash $3,400
To record the issue of Check No. 320 for merchandise purchased August 20 on terms n/30.
27 Debit Accounts payable (Dynamic Data) $9,000
Credit Cash $8,820
Credit Cash Discounts $180
To record the issue of Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.
Explanation:
a) Data and Analysis:
Sept. 5 Accounts payable (Georgetown Inc.) $5,500 Cash $5,390 Cash Discounts $110 Issued Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30.
Sept. 12 Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Issued Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.
Sept. 19 Accounts payable (Professional Partners) $3,400 Cash $3,400 Issued Check No. 320 for merchandise purchased August 20 on terms n/30.
27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180 Issued Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.
how to get rid of detrimental body language in the negotiation
Answer:
The answer is below
Explanation:
There are various ways to get rid of detrimental body language in the negotiation. Some of which are:
1. Speak with confidence and coherently: this will show you're not desperate
2. Maintain eye contact: keeping eye contact during negotiations shows you're sure of what you're saying and won't be smooth-talked or dominated.
3. Make a good handshake: some believe a firm handshake shows you're strong character, hence the other party will respect your opinions or negotiations point of view better.
4. Ensure you keep a nice posture or position: fidgeting around met be translated as being weak or uncomfortable, hence, the other party may think you're not sure of yourself.
Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold.
Saxon, Inc.
Absorption Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000
Ending inventory (120,000)
Total cost of goods sold (680,000)
Gross profit $680,000
Selling and administrative
expenses (303,000)
Operating income $377,000
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000
Ending inventory (84,000)
Total variable cost of goods sold (476,000)
Manufacturing margin $884,000
Variable selling and administrative expenses (238,000)
Contribution margin $646,000
Fixed costs:
Fixed manufacturing costs $240,000
Fixed selling and administrative
expenses 65,000
Total fixed costs (305,000)
Operating income $341,000
Method Comparison
Review the income statements on the Absorption Statement and Variable Statement, then complete the following table. The company’s sales price per unit is $80, and the number of units in ending inventory is 3,000. There was no beginning inventory.
Item Amount
Number of units sold
Variable sales and administrative cost per unit $
Number of units manufactured
Variable cost of goods manufactured per unit $
Fixed manufacturing cost per unit $
Feedback
Review the definitions of the items in the table, and think backwards from one of the income statements to get the desired values.
Manufacturing Decisions
Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing operating income, such increases and decreases could be misinterpreted as operating efficiencies or inefficiencies. Each decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful.
All costs are controllable in the long run by someone within a business. For a given level of management, costs may be controllable costs or noncontrollable costs.
The production manager for Saxon, Inc. is worried because the company is not showing a high enough profit. Looking at the income statements on the Absorption Statement and the Variable Statement, he notices that the operating income is higher on the absorption cost income statement. He is considering manufacturing another 10,000 units, up to the company’s capacity for manufacturing, in the coming year. He reasons that this will boost operating income and satisfy the company’s owner that the company is sufficiently profitable. Although the total units manufactured changes, assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same. Complete questions (1)-(4) that follow.
1. Use the income statements on the Absorption Statement and Variable Statement to complete the following table for the original production level. Then prepare similar income statements at a production level 10,000 units higher and add that information to the table. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels.
Operating Income
Original Production
Level-Absorption Original Production
Level-Variable Additional 10,000
Units-Absorption Additional 10,000
Units-Variable
2. What is the change in operating income from producing 10,000 additional units under absorption costing?
3. What is the change in operating income from producing 10,000 additional units under variable costing?
Answer:
Item Amount
Number of units sold 17,000 ($1,360,000/$80)
Variable sales and administrative cost per unit $14 ($238,000/17,000)
Number of units manufactured 20,000 (17,000 + 3,000)
Variable cost of goods manufactured per unit $28 ($560,000/20,000)
Fixed manufacturing cost per unit $12 ( $240,000/20,000)
2. There is a $68,000 increase in operating income from producing 10,000 additional units under absorption costing.
3. There is no change in operating income from producing 10,000 additional units under variable costing.
Explanation:
a) Data and Calculations:
Saxon, Inc.
Absorption Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000
Ending inventory (120,000)
Total cost of goods sold (680,000)
Gross profit $680,000
Selling and administrative expenses (303,000)
Operating income $377,000
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000
Ending inventory (84,000)
Total variable cost of goods sold (476,000)
Manufacturing margin $884,000
Variable selling and
administrative expenses (238,000)
Contribution margin $646,000
Fixed costs:
Fixed manufacturing costs $240,000
Fixed selling and administrative
expenses 65,000
Total fixed costs (305,000)
Operating income $341,000
Sales price per unit = $80
Ending inventory = 3,000 units
Beginning inventory = 0
Item Amount
Number of units sold 17,000 ($1,360,000/$80)
Variable sales and administrative cost per unit $14 ($238,000/17,000)
Number of units manufactured 20,000 (17,000 + 3,000)
Variable cost of goods manufactured per unit $28 ($560,000/20,000)
Fixed manufacturing cost per unit $12 ( $240,000/20,000)
Manufacturing Decisions:
Additional production of 10,000 units:
Absorption Costing Income Statement
For the Year Ended December 31 Normal Additional 10,000
Sales $1,360,000 $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000 $1,080,000*
Ending inventory (120,000) 468,000
Total cost of goods sold (680,000) (612,000)
Gross profit $680,000 $748,000
Selling and administrative expenses (303,000) (303,000)
Operating income $377,000 $445,000
Cost of goods manufactured:
Variable manufacturing cost = $840,000 (30,000 * $28)
Fixed manufacturing cost = $240,000
Total cost of goods manufactured = $1,080,000
Per unit cost = $36 ($1,080,000/30,000)
Ending inventory = $468,000 ($36 * 13,000)
Cost of goods sold = $612,000 ($36 * 17,000)
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31 Normal Additional 10,000
Sales $1,360,000 $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000 $840,000
Ending inventory (84,000) (364,000)
Total variable cost of goods sold (476,000) (476,000)
Manufacturing margin $884,000 $884,000
Variable selling and
administrative expenses (238,000) (238,000)
Contribution margin $646,000 $646,000
Fixed costs:
Fixed manufacturing costs $240,000 $240,000
Fixed selling and administrative
expenses 65,000 65,000
Total fixed costs (305,000) (305,000)
Operating income $341,000 $341,000
The Elmo Company purchased equipment on January 1, Year 1 at a cost of $26,000. The equipment was estimated to last for 8 years and have a salvage value of $2,000. At the end of Year 5, it was determined that the total useful life of the equipment was really 11 years, and the salvage value was expected to remain unchanged. The firm uses the straight-line method of depreciation.
a. What amount of depreciation was recorded for the equipment in year 1?
b. What was the amount of the depreciation expense recorded in year 6?
Answer:
The Elmo Company
a. The amount of the depreciation expense recorded in year 1 = $3,000
b. The amount of the depreciation expense recorded in year 6 = $1,500
Explanation:
a) Data and Calculations:
Cost of equipment on January 1, Year 1 = $26,000
Estimated useful life = 8 years
Salvage value = $2,000
Depreciable amount = $24,000 ($26,000 - 2,000)
Annual depreciation expense = $3,000 ($24,000/8)
Accumulated depreciation after 5 years = $15,000 ($3,000 * 5)
Net book value after 5 years = $11,000
Sixth year appraisals:
Remaining useful life = 6 years
Salvage value = unchanged at $2,000
Depreciable value = $9,000 ($11,000 - 2,000)
Annual depreciation expense = $1,500 ($9,000/6)
Caughlin Company needs to raise $75 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Flotation costs for issuing new common stock are 11 percent, for new preferred stock, 8 percent, and for new debt, 3 percent.
What is the true initial cost figure the company should use when evaluating its project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)
Initial cost $
Answer: $82,644,628
Explanation:
The true initial cost figure that the company should use when evaluating its project will be calculated as:
First we calculate the weighted average flotation which will be:
= (0.75 × 0.11) + (0.05 × 0.08) + (0.20 × 0.03)
= 9.25%
Therefore, the amount raised will be:
= 75 million / (1 - 9.25%)
= 75 million / (1 - 0.0925)
= $82,644,628
Therefore, the true initial cost is $82,644,628.
Primary data collection for a gaming software company could include the following methods except: Group of answer choices A SurveyMonkey survey sent out to the company's existing customers A gaming software report from Gartner Group, a market research firm Select 8-10 customers and get them to try a new product and ask them what they think of the product Talk to customers who comes into your store to return their purchases'
Answer:
A gaming software report from Gartner Group, a market research firm
Explanation:
Primary data collection is when data is collected through first hand research.
Primary data collection methods include
Surveys : this can take the form of questionnaires (including online questionnaires e.g. survey monkeyInterviews : this includes focus group interviews and interviewing customersAdvantages of primary data collection
Directly addresses the reason for data collection Provides unique insight that might be unavailable elsewhereDisadvantages of primary data collection
It can be expensiveit can be time consuming compared to other methodsSecondary data collection is collecting data that has already been collected in the past e.g. A gaming software report from Gartner Group, a market research firm
10. You manage a home improvement store. Your area has just been hit by a flood.
Building supplies quickly become in short supply. Would you raise prices to profit
from this shortage? Why or why not?
Explain one guideline that will help a speaker use or create an effective presentational aid. Provide examples.
You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was depreciating using straight line depreciation over a ten year schedule. When you initially placed the asset into service, you expected the asset to have a disposal / salvage value of $0. At the end of year seven the project is suddenly cancelled due to a change in technology and the asset is sold in the open market for $110,000. Prior to this transaction, the firm was forecasted to earn $1,000,000 profit after tax in year seven and the tax rate for the firm is 20%. What is the cash flow, in time period seven, as a result of this transaction
Answer: $112000
Explanation:
First, we calculate the book value in year 7 which will be:
= Depreciation × Balance life
= $400,000 × 3/10
= $120,000
Then, the cash flow as a result of the transaction will be:
= Asset sale - (Asset - Book value) × Tax rate
= 110000 - [(110000 - 120000) × 20%]
= 110000 - (-2000)
= 110000 + 2000
= 112000
Cash flow is the determination of inflow and outflow of cash due to business or non-business activities. The cash flow for a particular year is determined by preparing the cash flow statement. There are two methods for cash flow statements those are: direct and indirect methods.
The cash flow for the transaction is $112,000
Computation:
The cash flow in the time period of seven years is determined as follows:
[tex]\begin{aligned}\text{Cash Flow}&=\text{Sale Value of Asset}-[\left(\text{Asset-Book Value}\right)\times\text{Tax Rate}]\\&=\$110,000-[\left(\$110,000-\$120,000 \right )\times20\%]\\&=\$110,000-\left(-\$2,000 \right )\\&=\$112,000 \end{aligned}[/tex]
Working Note:
The calculation of the book value of the asset at the 7th year:
[tex]\begin{aligned}\text{Book Value}&=\text{Depreciation}\times\dfrac{\text{Remaining Life of Asset}}{\text{Estimate Useful Life of the Asset}}\\&=\$400,000\times\dfrac{3}{10}\\&=\$120,000\end{aligned}[/tex]
To know more about cash flow, refer to the link:
https://brainly.com/question/10714011
Assalam waliakum
How are you?
Answer:
oh wait ..... I know this language ... are you from Pakistan???...
purchased a truck at a cost of $67,200. It has an estimated useful life of five years and estimated residual value of $6,200. At the beginning of year three, Ripple decided that the total useful life would be four years, rather than five years. There was no change in the estimated residual value. What is the amount of depreciation that Ripple should record for year 3 under the straight-line depreciation method
Answer:
Ripple Corporation
The amount of depreciation that Ripple should record for year 3 under the straight-line depreciation method is:
= $18,300.
Explanation:
a) Data and Calculations:
Cost of truck = $67,200
Estimated useful life = 5 years
Estimated residual value = $6,200
Depreciable amount = $61,000 ($67,200 - $6,700)
Annual depreciation expense = $12,200 ($61,000/5)
Accumulated depreciation after two years = $24,400
Net book value = $42,800 ($67,200 - $24,400)
Revised Estimates:
Re-estimated Useful life = 4 years
Remaining useful life = 2 years
Salvage value = unchanged
Depreciable amount = $36,600 ($42,800 - $6,700)
Annual depreciation expense = $18,300 ($36,600/2)
Concord Inc. had beginning inventory of $11,900 at cost and $21,000 at retail. Net purchases were $140,679 at cost and $183,000 at retail. Net markups were $10,900, net markdowns were $7,500, and sales revenue was $132,700. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Answer:
See
Explanation:
Retail inventory - Conventional method
Cost Retail
Beginning inventory 11,900 21,000
Purchases 140,679 183,000
Add: Mark up --- 10,900
Current year addition 140,679 193,900
Goods available for sale 152,579 214,900
Less: Mark down ----- 7,500
Sales ----- 132,700
Ending inventory retail ----- 74,700
Ratio of goods available for sale (152,579/214,900) 71%
Ending inventory 53,037
If investors receive shares of stock in companies that they fund on crowdfunding websites like Kickstarter, would their investments be considered to be securities? Group of answer choices Yes, because it is an investment of money in a common enterprise and the investors expect profit from the efforts of others. No, they do not involve the investment of money or other consideration. No, because the profit arises solely from the efforts of the investors. Yes, because the requirements of the 1934 Securities Exchange Act are all met.
Answer:
Yes, because it is an investment of money in a common enterprise and the investors expect profit from the efforts of others.
Explanation:
In the case when the investor would received the shares of the companies and that should be funded on the website of crown funding so this would be considered as securities as this a money investment that to be made in a common enterprise also the investor expected the profit. In addition to this, the SEC permits the equity crowdfunding with effective from May 2016
Therefore the first option is correct
The current listed price per share of a certain common stock is $15. The cash dividend expected from this corporation in one year is $2 per share. All market research indicates that the expected constant growth rate in dividends will be 4 percent per year in future years. What is the rate of return on this investment that an investor can expect if shares are purchased at the current listed price
Answer:
the rate of return on the investment is 17.33%
Explanation:
The computation of the rate of return is shown below:
The Rate of return is
= (Dividend at year 1 ÷ Price year at 0) + growth rate
= ($2 ÷ 15) + 0.04
= 17.33%
Hence, the rate of return on the investment is 17.33%
We simply applied the above formula so that the rate of return could come
And, the same would be relevant
Crane Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Crane sells 9,000 subscriptions for cash, beginning with the December issue. Crane prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.
Required:
a. Prepare the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.
b. Prepare the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.
Answer:
A. Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
B. Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
Explanation:
A. Preparation of the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.
Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
[($28 per year*9,000)/12]
(Being to record subscription revenue )
B. Preparation of the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.
Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
[($28 per year*9,000)/12*3]
(Being to record subscription revenue in the first quarter)
These are selected 2022 transactions for Pronghorn Corporation:
Jan. 1 Purchased a copyright for $117,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years.
Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $60,000.
Sept. 1 Purchased a small company and recorded goodwill of $147,000. Its useful life is indefinite.
Required:
Prepare all adjusting entries at December 31 to record amortization required by the events.
Answer:
December 31, 2022, amortization expense of copyright
Dr Amortization expense 19,500
Cr Copyright 19,500
December 31, 2022, amortization expense of patent
Dr Amortization expense 10,000
Cr Patent 10,000
No journal entry required for the Goodwill since its useful life is indefinite
Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classification.
Item
1. Buildings
2. Copyright
3. Supplies
4. Unearned service revenue
5. Prepaid insurance
6. Common stock
7. Rent payable
8. Accounts receivable
9. Allowance for doubtful accounts
10 Bonds payable
Classification
A. Property, plant, and equipment
B. Intangible assets
C. Current assets
D. Current liabilities
E. Current assets
F. Contributed capital
G. Retained earnings
Answer:
Item Classification
1. Buildings - Property, plant, and equipment
2. Copyright - Intangible assets
3. Supplies - Current assets
4. Unearned service revenue - Current liabilities
5. Prepaid insurance - Current assets
6. Common stock - Contributed capital
7. Rent payable - Current liabilities
8. Accounts receivable - Current assets
9. Allowance for doubtful accounts - Retained earnings
10 Bonds payable - Current liabilities
Explanation:
A. Property, plant, and equipment
Assets of long term nature that are physical fall in this category.
B. Intangible assets
Assets that are of long term and do not have a physical nature fall in this category
C. Current assets
Assets of a short term nature, existing within a period of 12 months are in this category.
D. Current liabilities
Liabilities or obligations due within a period of 12 months fall in this category.
E. Current assets
Assets of a short term nature, existing within a period of 12 months are in this category.
F. Contributed capital
This involves all capital raised from owners of the company excluding reserves attributed to them.
G. Retained earnings
This is the reserve created out of profit earned during the year. Include incomes and expenses here.
A manager needs to assign her team to work on different types of programs in the community. Any team can work on any of the programs. However, the manager feels that there is a difference in the amount of time it would take each group to finish their tasks for each program. Her estimate of the time to complete in hours is given below. Programs Business Education Surveys Beautification Group 1 32 35 15 27 Group 2 38 40 18 35 Group 3 41 42 25 38 Group 4 45 45 30 42 What is the total number of hours the teams will spend on the projects
Answer:
The total number of hours the teams will spend on the projects is:
= 548 hours.
Explanation:
a) Data and Calculations:
Estimate of time to complete each program by various groups:
Programs
Business Education Surveys Beautification Total
Group 1 32 35 15 27 109
Group 2 38 40 18 35 131
Group 3 41 42 25 38 146
Group 4 45 45 30 42 162
Total 156 162 88 142 548
b) Each group's total time is added, and each program's total time is also added. The totals are then summed to get the overall total number of hours that the teams would spend on the various projects.
List three examples of fossil fuels are
Answer:
i Will help
Explanation:
dinosaur ones
Turtle ones and
fish fossils
your welcome my buddy
Answer:
Explanation:
Coal, crude oil, and natural gas are all considered fossil fuels because they were formed from the fossilized, buried remains of plants and animals that lived millions of years ago
How do I tell a guy I like him?
Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 33) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)
Answer:
Annual investment= $2,855.71
Explanation:
First, we will determine the future value of the investment of Twin 1 at the end of the firsts 10 years.
Twin 1:
Annual investment= $1,500
Number of periods= 10 years
Interest rate= 7%
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,500*[(1.07^10) - 1]} / 0.07
FV= $20,724.67
Now, the value of the account of Twin 1 after 32 years (65 - 33), if he leaves the money to gain interest:
FV= PV*(1+i)^n
FV= 20,724.67*(1.07^32)
FV= $180,621.11
Finally, the annual deposit that Twin 2 must make to equal the amount earned by Twin 1:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (180,621.11*0.07) / [(1.07^25) - 1]
A= $2,855.71
Twin 2 must make an annual deposit of $2,855.71 to match the amount earned by Twin 1, which is the annual investment.
How do you calculate the Annual investment of Twin 2?First, we'll calculate the future value of Twin 1's investment at the conclusion of the first ten years.
[tex]\text{Twin 1}:\\\text{Annual investment}= $1,500\\\text{Number of periods= 10 years}\\\text{Interest rate= 7} \text{percent}\\FV= {A\text{x}[(1+i)^n-1]}/i\\\text{A= annual deposit}FV= {1,500 \text{x} [(1.07^{10} ) - 1]} / 0.07FV= $20,724.67[/tex]
The following is the worth of Twin 1's account after 32 years (65 - 33), assuming he leaves the money to earn interest:
[tex]\text{FV= PV} \text{x}(1+i)^n\\FV= 20,724.67\text { x }(1.07^{32})\\FV= 180,621.11[/tex]
Finally, Twin 2 must make an annual deposit equivalent to the amount generated by Twin 1:
[tex]\text{FV}= {\text{A} \text{x}{[(1+i)^n-1]}/\text{i}\\\text{A= annual deposit}[/tex]
[tex]\text{Isolating A}:\\A= (FV \text{x} i)/{[(1+i)^n]-1}\\A= (180,621.11 \text{x} 0.07) / [(1.07^{25} ) - 1]\\A= 2,855.71[/tex]
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Company ABC has an existing debt of 2,000,000 on which it makes annual payments at an annual effective rate of LIBOR plus 0.5%. ABC decides to enter into a swap with a notional amount of 2,000,000, on which it makes annual payments at a fixed annual effective rate of 3% in exchange for receiving annual payments at the annual effective LIBOR rate. The annual effective LIBOR rates over the first and second years of the swap contract are 2.5% and 4.0%, respectively. ABC does not make or receive any other payments. Calculate the net interest payment that ABC makes in the second year.
Answer:
$70,000
Explanation:
Calculation to determine the net interest payment that ABC makes in the second year
First step is to calculate interest payments on the existing debt
Interest payments on the existing debt =$2,000,000*(4.0%+.5%)
Interest payments on the existing debt =$2,000,000*4.5%
Interest payments on the existing debt =$90,000
Second step is to calculate the Fixed Payment
Fixed Payment=$2,000,000*3%
Fixed Payment=$60,000
Third step is to calculate the amount received
from swap counterparty
Amount received =$2,000,000*4%
Amount received =$80,000
Now let calculate the net interest payment
Net Interest payment=$60,000+($90,000-$80,000)
Net Interest payment=$60,000+$10,000
Net Interest payment=$70,000
Therefore the net interest payment that ABC makes in the second year is $70,000
Journalizing Sales, Sales Returns and Allowances, and Cash Receipts:
Prepare journal entries for the following transactions.
Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%.
8 Sold merchandise on account to F. Preetee for $230 plus sales tax of 4%,
with 2/10, n/30 cash discount terms.
11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales
tax for credit.
17 F. Preetee paid the balance due on her account.
18 B. Farnsby returned merchandise purchased on October 5 for $70 plus sales
tax for credit.
20 B. Farnsby paid the balance due on his account.
Answer:
Oct. 5
Dr Accounts Receivable (B. Farnsby) $301.6
Cr Sales Tax Payable $11.60
Cr Sales Revenue $290
Oct. 8
Dr Accounts Receivable ( F. Preetee) $239.20
Cr Sales Tax Payable $9.20
Cr Sales Revenue $230
Oct 11
Dr Sales Returns $40
Dr Sales Tax Payable $1.6
Cr To Accounts Receivable (F. Preetee) $41.6
Oct 17
Dr Cash Account $192.6
Dr Cash Discount $5
Cr Accounts Receivable (Preetee) $197.6
Oct 18
Dr Sales Returns $70
Dr Sales Tax Payable $2.80
Cr Accounts Receivable (B. Farnsby) $72.80
Oct 20
Dr Cash Account ($301.6 - $72.80) $228.8
Cr Accounts Receivable (B. Farns) $228.8
Explanation:
Preparation of the journal entries
Oct. 5
Dr Accounts Receivable (B. Farnsby) $301.6
($290+$11.60)
Cr Sales Tax Payable ($290 × 4%) $11.60
Cr Sales Revenue $290
(Being the sales revenue recorded on account)
Oct. 8
Dr Accounts Receivable ( F. Preetee) $239.20
($230+$9.20)
Cr Sales Tax Payable ($230 × 4%) $9.20
Cr Sales Revenue $230
(Being the sales revenue recorded on account)
Oct 11
Dr Sales Returns $40
Dr Sales Tax Payable $1.6
(4%*$40)
Cr To Accounts Receivable (F. Preetee) $41.6
($40+$1.6)
(Being the returned inventory is recorded)
Oct 17
Dr Cash Account $192.6
($197.6-$5)
Dr Cash Discount (($290 - $40) × 2%) $5
Cr Accounts Receivable (Preetee) $197.6
($239.20 - $41.6)
(Being receipt of cash is recorded)
Oct 18
Dr Sales Returns $70
Dr Sales Tax Payable $2.80
(4%*$70)
Cr Accounts Receivable (B. Farnsby) $72.80
($70+$2.80)
(Being the return of goods is recorded)
Oct 20
Dr Cash Account ($301.6 - $72.80) $228.8
Cr Accounts Receivable (B. Farns) $228.8
(Being receipt of cash is recorded)