Answer:
a. Date Account Titles and Explanation Debit Credit
June 1 Raw materials inventory - Fabric A/c $121,300
Raw materials inventory - Polyster A/c $168,600
Raw materials inventory - Lumber A/c $332,400
Raw materials inventory - Glue A/c $11,500
To account payable $633,800
(Being recorded for the purchase of materials in June)
b. Date Account Titles and Explanation Debit Credit
June 3 Work in process - Job 601 A/c $222,400
Raw materials inventory - Fabric A/c $43,700
Raw materials inventory - Polyster A/c $55,100
Raw materials inventory - Lumber A/c $147,300
Work in process - Job 602 A/c $143,300
Raw materials inventory - Fabric A/c $31,000
Raw materials inventory - Polyster A/c $40,600
Raw materials inventory - Lumber A/c $71,700
Work in process - Job 603 A/c $222,400
Raw materials inventory - Fabric A/c $33,600
Raw materials inventory - Polyster A/c $59,900
Raw materials inventory - Lumber A/c $128,900
Factory Overhead A/c $5,700
To Raw materials inventory - Glue A/c $5,700
c. Particulars Fabrics Polyster Lumber Glue
Beg. Inventory June 1 $24,900 $7,500 $55,800 $2,400
Add: Purchases $121,300 $168,600 $332,400 $11,500
$146,200 $175,100 $388,200 $13,900
Less: Issued to production $108,300 $155,600 $347,900 $5,700
End. Inventory June 30 $37,900 $20,500 $40,300 $8,200
At December 31, 2026, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 103 on January 1, 2028, what is the gain or loss on early extinguishment
Answer:
$25,800
Explanation:
The bonds would mature at the end of the year 2028, which means in 2 years, as result, annual discount amortization is computed thus:
annual discount amortization=$50,000/2=$25,000
On January 1,2028, the balance in discount amortization is $25,000
Proceeds for 60% redemption=$600,000*60%*103%=$370,800
60% of bonds payable=$600,000*60%=$360,000
60% of unamortized discount=60%*$25,000=$15,000
In effecting the journal entries, bonds payable is debited with $360,000 while cash and discount on bonds payable are credited with $370,800 and $15,000 respectively.
Total credits=$370,800+$15,000=$385,800
total debit=$360,000
loss on early extinguishment is $25,800($385,800-$360,000)
If you deposit $5,000 4 years from today, how much can you withdraw 10 years from today if interest is 6 percent per year compounded annually?
Answer:
the future value is $7,093
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $5,000 × (1 + 0.06)^6
= $5,000 × 1.06^6
= $7,093
Hence, the future value is $7,093
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $70 million.
Required:
a. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2021.
b. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).
c. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate).
d. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? Why?
e. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment?
Answer:
A. 1-Jan-21
Dr Investment in Bond Dr $80.00
Cr To Cash $66.00
Cr To Discount on bond investment $14.00
B.30-Jun-21
Dr Cash $3.20
Dr Discount on bond investment $0.10
Cr To Interest revenue $3.30
C. 31-Dec-21
Dr Cash $3.20
Dr Discount on bond investment Dr $0.11
Cr To Interest revenue $3.31
D. $70 million Due to the change in market conditions
E. CASH FLOW FROM OPERATING ACTIVITIES:
Interest received $7.40 INFLOW
CASH FLOW FROM INVESTING ACTIVITIES:
Cash paid for purchase of investment -$66.00 OUTFLOW
Explanation:
a. Preparation of the journal entry to record Fuzzy Monkey's investment on January 1, 2021.
1-Jan-21
Dr Investment in Bond Dr $80.00
Cr To Cash $66.00
Cr To Discount on bond investment $14.00
(80-66)
(Being to record investment in bond )
b. Preparation of the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).
30-Jun-21
Dr Cash $3.20
($80 *8% * 6/12)
Dr Discount on bond investment $0.10
($3.30-$3.20)
Cr To Interest revenue $3.30
($66*10%*6/12)
(Being to record revenue recognition for bond interest and discount amortized)
c. Preparation of the journal entries by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate)
31-Dec-21
Dr Cash $3.20
($80 *8% * 6/12)
Dr Discount on bond investment Dr $0.11
($3.31- $3.20)
Cr To Interest revenue $3.31
[ $66+.1*(10%*6/12) ]
(Being to record revenue recognition for bond interest and discount amortized)
d. Based on the information given Fuzzy monkey will report its investment on December 31, 2021 balance sheet at fair value of the amount of $70 million reason been that we were told that because of the change in the market conditions, the fair value of the bonds at December 31, 2021, was the amount of $70 million.
e. Calculation for How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment
STATEMENT OF CASH FLOW (PARTIAL)
For 2021
CASH FLOW FROM OPERATING ACTIVITIES:
Interest received $7.40 INFLOW
($3.20+$3.20)
CASH FLOW FROM INVESTING ACTIVITIES:
Cash paid for purchase of investment -$66.00 OUTFLOW
Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Teragram. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that: Group of answer choices
Answer:
C. the actual cost of materials was less than the standard cost.
Explanation:
As it can be seen from the given information that
The Favorable material purchase price is $380
And, non-favorable material quantity variance is $120
So, the total favorable price variance is
= $380 - $120
= $260
This represents that the actual material cost would be lower than the standard cost
hence, the option C is correct
Two different suppliers are competing to supply a particular part for a new Boeing airliner. The Japanese supplier charges J(n) dollars for n parts whereas the Italian supplier charges I(n) dollars for n parts. (a) Which supplier should be used to supply a large number of parts if
Answer:
Italian Supplier will be chosen to supply a Large number of parts.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. However I have found the missing part of this question and will be using that to solve for the sake of understanding and concept.
Data Missing:
Which supplier should be used to supply a large number of parts if:
Lim (n--> infinity) [tex]\frac{J(n)}{I(n)} = 0?[/tex] Now, this condition was missing in the question, now we can solve this question.
Solution:
Here, we can see that, the limit of function is approaching to infinity, which indicates (n--> infinity) we want to make larger number of parts. So, we also know that Limit value of this function = 0.
It means that, numerator must be smallest and the denominator must be largest to get the value = 0. And, here denominator = I(n) means Italian Supplier.
Otherwise, if we put larger values of numerator then, it is not possible to get the value of 0.
So, if we choose Italian supplier for a large number of parts, then the value of the Limit Function will be zero for it is approaching infinity.
Hence,
Italian Supplier will be chosen to supply a Large number of parts.
Sunland Company, has 14700 shares of 4%, $100 par value, cumulative preferred stock and 60200 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $113000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021
Answer:
2021 Common Stockholders dividends = $49,600
Explanation:
Preference Shareholders are always paid their dividends first before Common Stockholders. If dividend is not declared, Preference dividends are cumulated to the next period and are due !
2019
Preferred Stockholders Dividends = 14700 x $100 x 4% = $58,800
Common Stockholders dividends = $ 0
2020
Preferred Stockholders Dividends = $58,800 (2019) + $54,200 (2020)
Common Stockholders dividends = $0
2021
Preferred Stockholders Dividends = $4,600 (2020 arrears) + $58,800 (2021) = $63,400
Common Stockholders dividends = $113,000 - $63,400 = $49,600
Pina Colada Corp. issued 22000 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $53000 and issued long-term notes payable of $484000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows
Answer:
Net cash flows from financing activities $1,311,000.
Explanation:
The computation of the amount that would be reported on the financing activities of the cash flow statement is as follows:
Issue of common stock(22,000 shares × $40) $880,000
Less: payment of dividend ($53,000)
Add: Issue of the long term note payable $484,000
Net cash flows from financing activities $1,311,000.
A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (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. Enter your answers in whole dollars.)
n=
i=
Interest = Amount?
Interest = Present Value?
Principal = Amount?
Principal = Present Value?
Price of Bonds?
Answer:
n = 40
i = 3% (semiannual)
face value = $80 million
coupon payment = $2,000,000
market price:
PV of face value = $80 / (1 + 3%)⁴⁰ = $24.52 million
PC of coupon payments = $2 x 23.115 (PV annuity factor, 3%, 40 periods) = $46.23 million
market value = $70.75 million
The bond price shows the present discounted value of future cash that is derived from purchasing a bond.
The computation of value of n semiannually[tex]n=20*2\\=40[/tex]
The computation of value of i semiannually[tex]i=\frac{6 percent}{2} \\=3 percent[/tex]
The computation of the Present Value of interest when the interest amount is 2,000,000[tex]80,000,000*0.05*\frac{1}{2} \\=46,229,544[/tex]
The computation of present value of principal when the principal amount is 80 million[tex]\frac{80}{(1+0.03)^{40} } \\=24,524,547[/tex]
The computation of bond price would be[tex]46,229,544+24,524,547\\=70,754,091[/tex]
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Suppose that you are selling comic books door to door. You purchased all your comic books up front so your costs are currently all sunk. You are currently selling comic books for $3.50 apiece and you sell 25 comic books per day. You know that the elasticity of demand for comic books at your current price is -.6. Is your price too high or too low
Answer: The price can be said to be too low.
Explanation:
Since the elasticity of demand for comic books at the current price is -0.6, then we can say that the price is too low as the demand is inelastic.
An elasticity of demand that is less than one shows that a product has an inelastic demand. This simply means that the change in price would bring about a very little change to the quantity of the comic books that'll be bought.
For each of the following citations, identify the type of authority (statutory, administrative, or judicial) and explain the citation.
a. Reg. Sec. 1.111-1(b)
b. IRC Sec. 469(c)(7)(B)(i)
c. Rev. Rul. 82-204, 1982-2 C.B. 192
d. Amdahl Corp., 108 TC 507 (1997)
e. PLR 9727004
f. Hills v. Comm., 50 AFTR2d 82-6070 (11th Cir., 1982)
Answer:
Explanation:
Administrative
Statutory
Administrative
Judicial
Administrative
Judicial
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. The $250 Edison spends to purchase medical services from the Medical Clinic The mojito Hilary receives Hilary's labor The $200 per week Edison earns working for Little Havana
Answer:
1. The mojito Hilary receives
2. The $200 per week that Edison receives working for Little Havana
Explanation:
We are to pick the options that represents a flow from a firm to household.
There is a flow of labor from the household to the firm which results In a flow of goods or wages from the firm to the household.
1. The mojito that Hilary receives gives a flow of goods that is moving from the firm to the household.
2. The $200 per week that Edison is getting for working for Little Havana is a flow of money from the firm to edison for the services he renders at the firm. This here is a flow of money from the firm to the household
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022.
Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit
Depreciable costs
eTextbook and Media
Compute the depreciation for each year. 2021 2022
Depreciation expense $
Answer:
depreciation expense 2021 = $6,200
depreciation expense 2022 = $6,700
Explanation:
depreciable value = $29,000 - $200 = $28,800
depreciation expense per mile driven = $28,800 / 144,000 = $0.20
number of miles driven during 2021 = 31,000
depreciation expense 2021 = 31,000 x $0.20 = $6,200
number of miles driven during 2020 = 33,500
depreciation expense 2022 = 33,500 x $0.20 = $6,700
With gasoline prices at $3.00 per gallon, consumers are flocking to purchase hybrid vehicles (combination of gasoline and electric motors) that get 50 miles per gallon of gasoline. The monthly payment on a three-year lease of a hybrid is $499 compared to $399 per month on a conventional, equivalent traditional gasoline car that gets 25 miles per gallon. Both vehicles require a one-time $1,500 payment for taxes, license, and dealer charges. Both vehicles have identical lease terms for the residual value, maximum number of miles allowed without penalty, and so forth.
Required:
a. Calculate how many miles the consumer must drive per year to make the hybrid the economical choice over the conventional gasoline-only vehicle.
b. How does your answer to part (a) change if the price of gasoline is $4.00per gallon?
Answer and Explanation:
The computation is shown below:
a. The number of miles driven per year is
Let us assume the mileage be M
Now
$499 + M ($3 ÷ 50) = $399 + M ($3 ÷ 25)
$100 = M(0.12 - 0.06)
M = $100 ÷ 0.06
= 1,666.66 miles per month
For year, it is
= 1,666.66 × 12
= 20,000 miles per year
c. Now in the case when the gasoline price is $4 per gallon
$499 + M ($4 ÷ 50) = $399 + M ($4 ÷ 25)
$100 = M(0.16 - 0.08)
M = $100 ÷ 0.08
= 1,250 miles per month
For year, it is
= 1,250 × 12
= 15,000 miles per year
Issued 30,000 shares of common stock in exchange for $300,000 in cash. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. Paid $5,000 in rent on the warehouse building for the month of March. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $70,000 on account for the merchandise purchased in 3. Collected $55,000 from customers on account. Recorded depreciation expense of $1,000 for the month on the equipment. Post the above transactions to the below T-accounts.
Answer:
T-accounts:
Cash
Accounts Titles Debit Credit
Common Stock $300,000
Equipment $10,000
Rent Expense 5,000
Prepaid Insurance 6,000
Accounts Payable 70,000
Accounts Receivable 55,000
Equipment
Accounts Titles Debit Credit
Cash $10,000
Notes Payable 30,000
Notes Payable
Accounts Titles Debit Credit
Equipment $30,000
Inventory
Accounts Titles Debit Credit
Accounts Payable $90,000
Cost of Goods Sold $70,000
Accounts Payable
Accounts Titles Debit Credit
Inventory $90,000
Cash $70,000
Accounts Receivable
Accounts Titles Debit Credit
Sales Revenue $120,000
Sales Revenue
Accounts Titles Debit Credit
Accounts Receivable $120,000
Cost of Goods Sold
Accounts Titles Debit Credit
Inventory $70,000
Rent Expense
Accounts Titles Debit Credit
Cash $5,000
Prepaid Insurance
Accounts Titles Debit Credit
Cash $6,000
Common Stock
Accounts Titles Debit Credit
Cash $300,000
Depreciation Expense
Accounts Titles Debit Credit
Acc Depreciation $1,000
Accumulated Depreciation - Equipment
Accounts Titles Debit Credit
Depreciation Expense $1,000
Explanation:
T-account consists of the following. An account title to record the corresponding account where the double-entry transaction is completed. A debit side on the left to enter the dollar value of the transaction, if the concerned account receives the value. A credit side on the right, also, to enter the dollar value of the transaction, if the concerned account gives out the value.
Linda Davis is a divorced parent who maintains a home for a 13 year old daughter. Linda earns $65,000 per year from her job. She has itemized deductions of $14,000. She also pays $1,500 in student loan interest from a college loan. What is Linda's Adjusted Gross Income (AGI)
Answer:
$63,500
Explanation:
Calculation for What is Linda's Adjusted Gross Income (AGI)
Wages $65,000
Less Student Loan Interest ($1,500)
Adjusted Gross Income $63,500
($65,000-$1,500)
Therefore Linda's Adjusted Gross Income (AGI) will be $63,500
8. Agreement and disagreement among economists Suppose that Tim, an economist from a business school in Georgia, and Alyssa, an economist from a university in Massachusetts, are arguing over government bailouts. The following dialogue shows an excerpt from their debate: Alyssa: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. Tim: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Alyssa: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession. The disagreement between these economists is most likely due to .
Answer:
The disagreement between these economists is most likely due to .
differences between perceptions versus reality.
Explanation:
A bailout occurs when the government provides capital resources to a distressed business or failing company, which it considers to be too big to fail. The purpose is to prevent the consequences of the downfall of such an entity, which may include bankruptcy, default on its financial obligations, economic impact on the wider society. Most bailouts are made for the benefit of the society rather than the business entity. The mindset from which two economists can perceive the reality of bailouts will always differ.
b. Which of the following combinations of fishing lures and duck decoys is unobtainable to Mountain Mack in one week's worth of carving? multiple choice 1 10 fishing lures and 40 duck decoys 20 fishing lures and 10 duck decoys 40 fishing lures and 0 duck decoys 16 fishing lures and 30 duck decoys c. Which of the following combinations of fishing lures and duck decoys is an efficient combination? multiple choice 2 16 fishing lures and 30 duck decoys 10 fishing lures and 40 duck decoys 50 fishing lures and 0 duck decoys 20 fishing lures and 10 duck decoys
Question Completion:
Production Possibilities Frontiers
Duck decoys Fishing lures
0 120
6 100
12 80
18 60
24 40
30 20
36 0
Answer:
Mountain Mach
Production Possibilities Frontiers:
1. The combinations of fishing lures and duck decoys that is unobtainable to Mountain Mach is:
10 fishing lures and 40 duck decoys
2. The combinations of fishing lures and duck decoys that is an efficient combination for Mountain Mach is:
16 fishing lures and 30 duck decoys
Explanation:
Mountain Mack's Production Possibilities Frontier (PPF) is a graphical illustration of the production possibilities of carving duck decoys and fishing lures with fixed resources. The PPF indicates the information about the tradeoff between devoting resources to carving duck decoys versus carving fishing lures. It shows that there is an opportunity cost if Mountain Mack chooses to produce more duck decoys than fishing lures and vice versa. With PPF, Mountain Mack is able to make efficient decisions by determining the best combination of goods and allocating resources accordingly.
Ashley Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
a. Materials, 100%; labor, 100%; overhead cost, 40%.
b. Materials, 100%; labor, 100%; overhead cost, 100%.
c. Materials, 100%; labor 40%; overhead cost, 40%.
d. Materials, 40%; labor, 40%; overhead cost, 60%.
e. Materials, 40%; labor, 40%; overhead cost, 100%.
Answer:
a. Materials, 100%; labor, 100%; overhead cost, 40%
Explanation:
Since Materials and Labor are added at the start of its production process, they will always be 100 % complete at the the end of the period as this mark is already passed. Overheads will be complete up to the extent of the work done in work in process that is 40%.
A medium sized consulting engineering firm is trying to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10% per year. a) What would the cost have to be one year from now to render the decision indifferent
Answer:
next year total cost = $41,800 is the cost to render the decision indifferent.
Explanation:
given data
cost = $38,000
interest rate = 10% per year
time period = 1 year
solution
we get here total cost of remodelling next year that is here
total cost = P + (PNR) ÷ 100 ............1
here P is present cost and N term and R interest rate.
and we take here interest for 1 year first that is
interest = PNR ÷ 100 = 38,000 x 1 x 10 ÷ 100 = $3,800
so as that next year cost will be
next year total cost = 38,000 + 3,800
next year total cost = $41,800 is the cost to render the decision indifferent.
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.
Year 1 Year 2
Amounts billed to clients for services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees for services rendered during the year 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
In addition, you learn that the firm incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Required:
1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.
2. Prepare an income statement for each year according to the accrual accounting model.
Revenues not attempted not attempted
Expenses:
Salaries 90,000selected answer correct 100,000selected answer correct
Utilities 30,000selected answer incorrect 40,000selected answer incorrect
Insurance 60,000selected answer incorrect 0selected answer incorrect
Net income (loss)
Answer:
Pete, Pete, and Roy
1. Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
3. Amount of receivables in year 1 and 2:
Year 1 Year 2
Beginning balance $10,000
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Balance $10,000 $40,000
2. Pete, Pete, and Roy
Income Statements for years 1 and 2:
Year 1 Year 2
Service Revenue $ 170,000 $ 220,000
Expenses:
Salaries expense 90,000 100,000
Utilities expense 35,000 35,000
Insurance expense 20,000 20,000
Total expenses $145,000 $155,000
Net income $25,000 $65,000
Explanation:
a) Data and Calculations:
Year 1 Year 2
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Utility costs incurred in year 1 = $35,000
Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
Insurance expense per year = $60,000/3 = $20,000
Utilities for year 1 = $35,000
Utilities for year 2 = $35,000
10. In which scenario do most homeowners use equity in their home? A). To pay off student loan B). When they have children C). When they sell it to buy a new One D). When they’re threatened with foreclosure.
Answer:
D. When they're threatened with foreclosure
Explanation:
Most homeowners make use of their equity when they sell their house and purchase a new one. So, option (C) is the best choice.
The difference between a property's current market value and any outstanding liens or mortgages is referred to as equity in a home. Through their recurring mortgage payments and any value growth of the home, homeowners gradually increase the equity in their properties.
Homeowners can utilize the equity they have accumulated to buy a new house if they decide to sell their current one. They can utilize the equity to pay for the down payment on a new house or to lower the size of the mortgage they need to take out. The most typical situation in which homeowners spend their equity in their homes is this one.Therefore, Most homeowners make use of their equity when they sell their house and purchase a new one. So, option (C) is the best choice.
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If a perfectly competitive firm achieves productive efficiency then Group of answer choices the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold. it will raise its price in order to earn an economic profit. it is producing at minimum efficient scale. it is producing the good it sells at the lowest possible cost.
Answer:
it is producing at minimum efficient scale
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Due to the ease of entry and exit in a perfectly competitive market, in the long run, price is equal to the minimum point of the long run average cost curve.
A company issues $25300000, 7.8%, 20-year bonds to yield 8.0% on January 1, Year 17. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24799240. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, Year 17 balance sheet?" "$24,804,508.00 " "$24,809,990.00 " "$24,825,593.00 " "$25,300,000.00 "
Answer:
$1,960,623
($24,505,180 × .04) + ($24,510,387 × .04) = $1,960,623.
Explanation:
Cotton Hotel Corporation recently purchased Emporia Hotel and the land on which it is located with the plan to tear down the Emporia Hotel and build a new luxury hotel on the site. The cost of the Emporia Hotel should be
Answer:
c. capitalized as part of the cost of the land.
Explanation:
These are the options for the question
a. depreciated over the period from acquisition to the date the hotel is scheduled to be torn down.
b. written off as an extraordinary loss in the year the hotel is torn down.
c. capitalized as part of the cost of the land.
d. capitalized as part of the cost of the new hotel.
From the question, we are informed about Cotton Hotel Corporation
which recentlyy purchased Emporia Hotel and the land on which it is located with the plan to tear down the Emporia Hotel and build a new luxury hotel on the site. The cost of the Emporia Hotel should be capitalized as part of the cost of the land. In financial accounting, cost of land can be regarded as asset valuation method which can be used to land that shows on the balance sheet of a company. This cost would encompass all amount spent when acquiring the property and other expenses.
,
The income statement of Sheridan Company for the month of July shows net income of $3,480 based on Service Revenue $7,890, Salaries and Wages Expense $2,860, Supplies Expense $940, and Utilities Expense $610. In reviewing the statement, you discover the following:
1. Insurance expired during July of $470 was omitted.
2. Supplies expense includes $410 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $150 was omitted.
4. Accrued but unpaid wages at July 31 of $320 were not included.
5. Service performed but unrecorded totaled $640.
Prepare a correct income statement for July 2014.
Answer:
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A company uses a perpetual inventory system. The company began its fiscal year with inventory of $998,000. Purchases of merchandise on account during the year totaled $3,124,089. Merchandise costing $3,456,980 was sold on account for $6,909,879. Prepare the journal entries to record these transactions.
Answer:
Date Account Titles and Explanation Debit Credit
Inventory $3,124,089
Account payable $3,124,089
(To record purchase of merchandise inventory)
Account receivables $6,909,879
Sales revenues $6,909,879
(To record sales on account)
Cost of goods sold $3,456,980
Inventory $3,456,980
(To record the cost of sales)
Echo Company uses a normalized job costing system and applies factory overhead on the basis of machine hours. Echo's yearly profit plan disclosed anticipated factory overhead of $4,800,000 if 200,000 machine hours are worked. By year-end, actual factory overhead charges and machine hours worked amounted to $4,730,000 and 215,000, respectively. What amount correctly states the factory overhead applied to Echo's actual year-end overhead
Answer:
$22
Explanation:
Given the above information, the amount that correctly states the factory overhead applied is ;
= Actual factory overhead charges / Machine hours worked
= $4,730,000 / 215,000
= $22
in one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it falls on the intersection of quality and price.
Please dont copy paste from the internet, will be flagged.
Answer:
The main advantage resulting from a premium pricing strategy is the higher profits. Another advantage is that customers that purchase premium products seek higher quality and tend to show higher brand loyalty associated with the status of using premium products. The disadvantages of premium pricing are that it cannot be applied to all products, the marketing efforts tend to be more specific, and therefore, represent a higher percentage of sales, and finally, not everyone is willing to pay premium prices.
dams Industries holds 54,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2021, and December 31, 2022, the market value of the stock is $99 and $110 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet
Answer :
Category - Investments in other companies (Non - Current Assets)
Amount - $5,940,000
Explanation:
This Investment represents an Asset (Financial Asset to be specific). Assets are economic resources that are controlled by the entity as a result of past events, which result in the flow of future economic benefit.
Measurement is at the Fair Value Amount that is 54,000 shares x $110 per share = $5,940,000
A market is in equilibrium when A. the government sets the price high enough so that all producers can make profits. B. the government sets the price low enough so that all consumers can afford to purchase as much of the product as they want. C. there is a surplus of the product. D. the price is such that the amount consumers want to buy equals the amount producers want to sell. g
Answer:
D. the price is such that the amount consumers want to buy equals the amount producers want to sell.
Explanation:
A market is in equilibrium when the price is such that the amount consumers want to buy equals the amount producers want to sell.
Generally, a market is considered to be at equilibrium when the quantity of goods and services supplied by the producer is equal to the quantity of goods and services demanded by the consumers.
A direct opposite of this phenomenon is market failure. Market failure is when the market fails to produce the efficient level of output.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.