Answer and Explanation:
The journal entry required to close the income summary account is given below:
Income summary Dr ($202,000 - $112,200) $89,800
To retained earnings $89,800
(Being the closing of the income summary is recorded)
The above entry should be passed for closing out the income summary account
The same is to be considered
A worker wants to set aside some money for retirement, hoping to live off the interest income. If the interest rate is 8% and the worker wishes to draw interest of $2,000 per year, how much should the worker save before retirement
Answer:
$25,000
Explanation:
Assuming it is to be perpetuity. Amount to be saved = P/I
Amount to be saved = Annual interest amount / Annual interest rate
Amount to be saved = $2,000/8%
Amount to be saved = $2,000/0.08
Amount to be saved = $25,000
So, the worker should save $25,000 before retirement if he wishes to draw interest of $2,000 per year.
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, variable expenses of $153,600, and traceable fixed expenses of $70,800. The Alpha Division has sales of $615,000, variable expenses of $337,800, and traceable fixed expenses of $132,700. The total amount of common fixed expenses not traceable to the individual divisions is $134,200. What is the company's net operating income
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses
A perfectly elastic demand curve implies that the firm Select one: a. The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic. b. The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry. c. The demand curves are downsloping for both a purely competitive firm and a purely competitive industry. d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Answer: d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Explanation:
In a purely competitive market, all the firms are selling the same product so there is a lot of competition. The market sets the price in this industry at the point where quantity demanded equals quantity supplied and the demand curve for the whole industry is downward sloping.
When it comes to the demand curve for the individual firm however, it is elastic because price is not set by the firm. This perfectly elastic demand shows that if the firm tries to sell at a price that is different from the market, quantity demanded from that firm would change by infinity because people would prefer the market price.
A long position of the three-month forward contract on a commodity that was negotiated three months ago has a delivery price of $40. The current forward price for a three-month forward contract is $42. The current spot price of this commodity is also $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of this long forward contract now
Answer:
$1.96
Explanation:
The disparity between the delivery price and the actual forward price discounted at the specified discount rate will be the current value.
Thus, it can be calculated by using the following formula:
[tex]Value = \dfrac{forward price - Delivery price}{e^{(rate * \dfrac{no \ of \ months}{12})}}[/tex]
[tex]Value = \dfrac{42 - 40}{e^{(0.08 * \dfrac{3}{12})}}[/tex]
[tex]Value = \dfrac{2}{e^{0.02}}[/tex]
[tex]Value = \dfrac{2}{1.02020134}[/tex]
[tex]\mathbf{Value =\$1.96 }[/tex]
Canadian Beer reported equipment sold for $258 million cash and new equipment purchased $1,533 million cash. The equipment sold had a net book value of $186 million. Cash flow from investing activities would show:
Answer:
The answer to this question can be defined as follows:
Explanation:
Please find the table in the attached file.
An inflow of $258 million and an outflow of $1,533 million.
The cash outflow for $1,533 is reported separately for investment activities and cash outflow for $2,58 is reported. The number of revenues received is indicated as the inflow.
A voluntary market works in the concept of?
Answer: The concept of voluntary exchange: The act of buyers and sellers freely and willingly engaging in market transactions.
Explanation: The principle of voluntary exchange is based on consumers and producers acting in their self-interest. A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange.
On September 30, World Co. borrowed $1,000,000 on a 9% note payable. World paid the first of four quarterly payments of $264,200 when due on December 30. In its December 31 balance sheet, what amount should World report as note payable
Answer: $758,300
Explanation:
The total amount payable on December 30 is:
= Amount borrowed + interest
= 1,000,000 + (1,000,000 * 9%/4 quarters)
= $1,022,500
After the payment of $264,200, balance will be:
= 1,022,500 - 264,200
= $758,300
12. An invoice for hosiery is dated Aug 22 with terms 1/10, FOB store. The total billed cost of merchandise is $876.90 and shipping charges are $18.60. If the invoice is paid on September 5, how much should be remitted
Answer:
$895.5
Explanation:
Calculation to determine how much should be remitted using this formula
Remitted Amount=Total billed cost of merchandise +Shipping charges
Let plug in the formula
Remitted Amount=$876.90+ $18.60
Remitted Amount=$895.5
Therefore how much should be remitted is $895.5
Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability of make-to-stock production relative to make-to-order production
Answer:
1. It increases it, i.e., make-to-stock becomes more desirable
Explanation:
In the case when the consumer has the less requirement for the product i.e broad so the shifting with respect to the preference could change the desirability of making to stock production could increase it as the make to stock would become the more desirable
Therefore the first option is correct
n a continuous review system, the average daily demand for a part is Normally distributed with mean 20 and standard deviation of 4. The lead time to receive the part from the time it is ordered is 9 days. The appropriate re-order point for this part if we want a 95% service level is a. 200 b. 20 c. 180 d. 184
Answer: 200
Explanation:
Based on the information given in the question, the appropriate re-order point for this part if we want a 95% service level will be:
Mean demand = 20
Standard deviation of demand = 4
Lead time = 9 days
Service level = 95% = 95/100 = 0.95
Re-order Point will be:
= (demand × lead time) + (z* × std dev × ✓leadtime)
= (20 × 9) + (1.645 × 4 × ✓9)
= (180) + (1.645 × 4 × 3)
= 199.74
= 200 approximately
The re-order point is 200
You are considering the purchase of a $ par value bond with a coupon rate of % (with interest paid semiannually) that matures in years. If the bond is priced to yield %, what is the bond's current price?
Answer:
$885.65
Explanation:
Missing word "You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of 8%, what is the bond’s current price?"
Rate = 8% / 2
Nper = 12 * 2 = 24
Pmt = 1,000 * 6.5% / 2 = 32.5
FV = 1,000
Bond's current price = PV(rate, nper, pmt, fv)
Bond's current price = PV(8%/2, 24. 32.5, 1000)
Bond's current price = $885.65
So, the bond's current price is $885.65
Fargo Company's outstanding stock consists of 600 shares of noncumulative 5% preferred stock with a $10 par value and 3,200 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1$22,000 year 2$5,000 year 3$31,000 The amount of dividends paid to preferred and common shareholders in year 1 is:
Answer:
$300 and $21,700 respectively.
Explanation:
Preference Stock has preference when it comes to payment of dividends. So the dividend declared is first paid to Preference Stock holders then the remainder to Common Stock Holders.
Preference Stock Dividend :
Dividend = 600 shares x 5% x $10 = $300
Common Stock Dividend :
Dividend = $22,000 - $300 = $21,700
therefore,
The amount of dividends paid to preferred and common shareholders in year 1 is: $300 and $21,700 respectively.
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $705,000. (Leave no answer blank. Enter zero if applicable.) a. What amount of gain will Steve be required to recognize on the sale of the home
Answer: $107,500
Explanation:
There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.
The gain he received was:
= 705,000 - 347,500
= $357,500
From this gain, $250,000 can be excluded so total gain recognized:
= 357,500 - 250,000
= $107,500
Olsen Company paid or collected during 2020 the following items: Insurance premiums paid $ 30,800 Interest collected 69,800 Salaries paid 280,400 The following balances have been excerpted from Olsen's balance sheets: December 31, 2020 December 31, 2019 Prepaid insurance $ 2,400 $ 3,000 Interest receivable 7,400 5,800 Salaries and wages payable 24,600 21,200 The interest revenue recorded in the income statement for 2020 was
Answer:
See below
Explanation:
Given the above information, first we will calculate the current year expenses paid in the current year
= $280,400 - $21,200
= $259,200
Next is to compute expense of current year not paid
= $259,200 + $24,600
= $283,800
In January 2021 Vega Corporation purchased a patent at a cost of $203,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2024, Vega spent $24,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2024 related to the patent should be:
Answer:
$201,100
Explanation:
Calculation to determine The amount charged to income (expense and loss) in 2024 related to the patent should be:
Total patent cost= $203,000 + $50,000
= $253,000
Amortized cost till year 2024 is
= ($253,000 ÷ 10 years) × 3 years
= $75,900
The three years is counted from 2021 to 2024
Now
Book value on Jan 2024 is
= $253,000 - $75,900
= $177,100
So,
Amount charged to income is
= $177,100 + $24,000
= $201,100
Therefore The amount charged to income (expense and loss) in 2024 related to the patent should be:$201,100
Blue Lite manufactures decorative weather vanes that have a standard materials cost of two pounds of raw materials at $2 per pound. During November 500 pounds of raw materials costing $4 per pound were used in making 450 weather vanes. The materials price and quantity variance are: Group of answer choices
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable
In computing amortization of a leased asset where there is no bargain purchase option, the lessee should subtracta. no residual value and depreciate over the term of the lease.b. an unguaranteed residual value and depreciate over the term of the lease.c. a guaranteed residual value and depreciate over the life of the asset.d. an unguaranteed residual value and depreciate over the life of the asset.
Answer: a. no residual value and depreciate over the term of the lease
Explanation:
A bargain purchase option allows the holder of a lease to be able to purchase the leased asset at the end of the lease period. This is for finance leases not for operating leases so if there isn't one, the lease becomes operating.
When there is no such option, the company leasing the asset will not be able to record a residual value (which is the value they would have bought it at) but instead will have to depreciate the lease over its term leading to higher depreciation amounts.
The degree of customer contact measuresthe amount of time the customer is separated from the service delivery system.the amount of time the customer is in the service delivery system.the customization abilities of the service system.The content of service-product bundle.
Answer:
the amount of time the customer is in the service delivery system.
Explanation:
In the case when there is a degree of contacting the customer determined that the value of the time that the customer would be in the system that represent the delivery of the service at the time when the service is generally produced or
So as per the given situtaion, the above statement represent the answer
Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal rate of return did she earn?
Answer:
8.4
Explanation:
nominal return - price return + dividend yield
price return = 46.45 /45 - 1 = 3.2%
dividend yield = 2.34 / 45 = 5.2%
Emily Company has 20,000 shares of cumulative preferred stock outstanding, with annual dividends paid at a rate of $2 per share. The company also has 40,000 shares of common stock outstanding. Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year. If the company declares a $400,000 dividend in the current year, each outstanding share of common stock would receive:
Answer:
$8.00
Explanation:
Preference Stock has preference when it comes to payment of dividends. The remainder is paid to common stock. When the preference stocks are cumulative, the previous dividends outstanding have to be paid up before current year dividends.
Preference Dividend :
Preference Dividend = 20,000 shares x $2 = $40,000
Thus in current year $80,000 dividend ($40,000 x 2) need to be paid up
Common Stock Dividend :
Dividend = $400,000 - $80,000 = $320,000
Dividend per stock = $320,000 ÷ 40,000 shares = $8.00
therefore,
Each outstanding share of common stock would receive: $8.00
Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2019, it had balances in Accounts Receivable and Allowance for Doubtful Accounts of $478,000 and $7,900 (credit), respectively. During 2019, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year end and determined that $6,800 of its receivables will be uncollectible.
Required:
a. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.
b. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.
c. Prepare the necessary adjusting entry for 2018.
Answer:
Ingrid Inc.
a. Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment is:
= $833,720.
b. Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment is:
= $6,800.
c. Adjusting Entry:
Debit Bad Debts Expense $3,180
Credit Allowance for Doubtful Accounts $3,180
To record the bad debts expense for the year and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $6,800
Explanation:
a) Data and Calculations:
January 1, 2019 balances:
Accounts Receivable $478,000
Allowance for Doubtful Accounts $7,900 (credit)
Accounts Receivable $3,075,000 Sales Revenue $3,075,000
Cash $2,715,000 Accounts Receivable $2,715,000
Allowance for Doubtful Accounts $4,280 Accounts Receivable $4,280
Ending balance:
Allowance for Doubtful Accounts $6,800 (Credit)
T-Accounts
Account Titles Debit Credit
Beginning balance $478,000
Sales Revenue $3,075,000
Cash $2,715,000
Allowance for Doubtful Accounts $4,280
Ending balance $833,720
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $7,900
Accounts Receivable $4,280
Bad Debts Expense 3,180
Ending balance $6,800
on january 1 ripken corporation had 80000 shares of 10 par value common stock outstanding. on may 7 the company declared a 10 stock divident to stockholders of record may 21 the market value of the stock was 13 on may 7 the entry to record the transaction of may 7 would include a
Answer:
Debit : Dividend $8,000
Credit : Shareholders for dividends $8,000
Explanation:
We recognize equity item - dividend and a liability - shareholders for dividend on declaration date.
Dividend = 80000 shares x $10 x 10% = $8,000
Consider a 5-year bond with a par value of $1,000 and an 9% annual coupon. If interest rates change from 9% to 5% the bond's price will: increase by $__.
Answer:
$173.18
Explanation:
First and foremost, we need to determine the prices for the bond at 9% and 5% yields respectively, using a financial calculator as shown below:
The financial calculator should be set to its end mode before making the following inputs:
9% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=9(yield of 9% without the "%" sign)
FV=1000
CPT
PV=$1000.00
5% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=5(yield of 5% without the "%" sign)
FV=1000
CPT
PV=$1,173.18
change in price=$1,173.18-$1,000.00
change in price=$173.18
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $25.521 million Cash of $2.010 million Total Assets of $41.309 million Total Common Stock of $1.270 million. What were the Digby Corporation's retained earnings
Answer: $14.518 million
Explanation:
Based on he information given, we have to calculate the owner's equity first which will be:
= Assets - Liabilities
= $41.309 million - $25.521 million
= $15.788 million
Since Owners equity is the addition of the total common stock and the retained earnings. Therefore, retained earnings will be:
= Owners equity - Total common stock
= $15.788 million - $1.270 million
= $14.518 million
The retained earning is $14.518 million
what number should be included in the following data so that the median is 5.2? 4,7,11,5,3
Answer:
5.4
Explanation:
To find the median, we need to arrange the numbers in numerical order.
Hence, here we have 3, 4, 5, 7, 11.
Given that the question says we should look for numbers that would be included in the following data so that the median is 5.2. Hence, we need to add the number to the set.
Therefore the total number of the set will be 6 making it an even number. Hence we have to add the two numbers in the middle and divide them by 2.
Since the median is 5.2, hence we multiply it by 2 = 10.4
Therefore, we less 5 from 10.4, we have 5.4
To check we now have a set of numbers 3, 4, 5, 5.4, 7, 11
Where 5 + 5.4 = 10.4, then divided by 2 = 5.2 as median.
Q:
What type of policy does the Fed use to counteract a contraction?
A:
1. О fiscal policy
2. policy lags
3. expansionary monetary policy
4. contractionary monetary policy
Answer:
3. expansionary monetary policy
Explanation:
To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices. These tools include open market asset purchases, reserve regulation, discount lending, and forward guidance to manage market expectations.
If Jerry deposits $462 of cash in a checking account in the Tenth National Bank, what's the maximum change in the money supply in the economy
Answer:
$4620
Explanation:
It is assumed that the required reserve is 10%
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
462 /0,1 = $4620
quick please I need help
Answer:
Answer below
Explanation:
Income
Monthly income $60 ( the $15 per week * 4 the number of weeks in a month ).
Grandparents $30
Total income $90
Essential expenses ( fixed )
Bicycle tune up $20
Essential expenses ( variable )
New bike tire $5
Non-essential expenses
Game $50
Total expenses $75
Total savings $15
I REALLY HOPE THIS HELPED YOU
Select all the correct answers.
Ray has six hours before he goes to bed on a school night. He plans to spend an hour surfing the Internet, two hours playing his favorite
game, two hours watching TV, and one hour doing his homework. However, some of the math problems in his homework are extremely
difficult, and it will take him more than two hours to finish them. He knows his teacher won't give him any credit for the work unless it's
completely finished, and it's Important that he get good grade in the class. Which of these options for dealing with this situation are a
trade-off of Ray's time?
O He will spend only one hour on homework and leave out what he can't finish.
D He will spend one extra hour on homework and give up watching TV.
0
He will finish his homework while he is watching TV.
O He will play his favorite game for one hour and do homework for two hours.
0
He will ask his brother to help him with his homework.
Answer:
the answer is c.) he will play his favorite game for one hour and do his homework for two hours
The article discusses actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses. If we take an opportunistic view of her action, it is a good example of what? Choose one: A. copyright infringement B. consolidation C. rent-seeking behavior D. quality assurance
Answer:
Option D
Explanation:
In simple words, Quality assurance, described by ISO 9000 as element of quality control focusing on ensuring trust that performance standards will be met," is a method of preventing errors and failures in manufacturing goods and avoiding issues when supplying products or services to consumers.
Thus, from the above we can conclude that the correct answer is D.
As a result if this we can see that opportunistic view of her action, it is a good example of quality assurance.
According to the question, we are to discuss actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses.
Therefore, option D is correct because her action, it is a good example of quality assurance.
Learn more about quality assurance at:
https://brainly.com/question/17493537