Answers
Answer:
thats correct
Explanation:
Related Questions
I have a group of friends. One thing we have in common is that we all want a Tesla Model 3. We can all afford to buy a Tesla Model 3. However, we are all unwilling to pay the current price for a Tesla Model 3. Thus, my group of friends are not this:_______.
a. cool in any sense of the word
b. a market of potential Tesla customers
c. a positioning market group
d. a useful segmenting base
Answers
Answer:
b. a market of potential Tesla customers
Explanation:
As given all friend afford to buy a Tesla Model 3 and unwilling to pay the current price so group of friends is a market of potential Tesla customersA potential market is a group of people from the entire population who show some interest in buying a particular product or service. so correct option is b. a market of potential Tesla customersWhitch of the following is required to be considered an entrepreneur?
Answers
Answer:
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures
Explanation:
Constable Co. reported the following information at December 31, Year 1:
Accounts Payable $4,540
Accounts Receivable 9,390
Cash 23,890
Common Stock 90,400
Equipment 49,900
Inventory 31,600
Notes Payable due December 31, Year 3 2,540
Retained Earnings, December 31, Year 1 14,130
Wages Payable 3,170
What is the amount of current liabilities on the classified balance sheet?
Answers
Answer:
The amount of Current liabilities is $7,710
Explanation:
The amount of current liabilities on the classified balance sheet is seen below;
Constable Corp.
Balance sheet as at December 31, year 1.
Current liabilities
Accounts payable $4,540
Wages payable $3,170
Total $7,710
Varughese incorporated is working on its cash buget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and buegeted cash disbursements total $191,000. The desired ending cash balance is $40,000. To attain its desired ending cash balace for March, the company needs to borrow:__.
a. $40,000.
b. $0.
c. $16,000.
d. $64,000.
Answers
Answer:
C. $16,000
Explanation:
Beginning cash balance
$33,000
Add cash receipt
$182,000
Less cash disbursement
($191,000)
Ending cash balance
$24,000
Desired ending cash balance
$40,000
Borrowing ($40,000 - $24,000)
$16,000
Therefore, the company needs to borrow $16,000 to attain its desired ending cash balance for March.
Al is a medical doctor who conducts his practice as a sole proprietor. During 2017, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2016. At the end of 2017, Al had accounts receivable of $60,000, all for services rendered in 2017. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2018. Compute Al’s gross income for 2017:
a. Using the cash basis of accounting.
b. Using the accrual basis of accounting.
c. Advise Al on which method of accounting he should use.
Answers
Answer:
a. Using the cash basis of accounting:
Cash received from customer $280,000
Cash received for future service $12,000
Total gross income $292,000
b. Using the accrual basis of accounting:
Service revenue = ($280,000 - $40,000 + 60,000) = $300,000
Gross income $300,000
c) AI should use cash accural basis of accounting so that he will not have to pay income taxes on uncollected accounts receivable.
Mutual funds that invest in mortgage-backed pass-through securities are exposed to which of the following risks and costs?
a. Credit risk
b. Liquidity risk
c. Interest rate risk
d. Capital adequacy requirements
e. Prepayment risk
Answers
Answer:
e. Prepayment risk
Explanation:
Prepayment risk is the likelihood of the firm where Special Purpose Vehicle that manages the mortgage-backed pass-through securities to repay the principal sum invested or part of it earlier than expected which then denies the investor of interest payments throughout the investment period.
When principals are repaid much earlier, the interest that could be earned on the principal is lost since the principal upon which the interest is to be computed has been repaid, hence, no more basis for the interest thereafter
Starbucks opened its first store in Seoul, Korea in October 2002. The price of a tall vanilla latte is 3,000 Korean Won. In New York City, the price of a tall vanilla latte is $3.00. The exchange rate between Korean Won and U.S. dollars is Won 1,150/$. According to purchasing power parity, is the Korean Won overvalued or undervalued
Answers
Answer:
The Korean Won is undervalued
Explanation:
The Korean Won is undervalued if we determine this measure by comparing the prices of the vanilla latte at a Korean Starbucks and at an American Starbucks.
If purchasing power parity was perfectly equal, the latte at the Seoul Starbucks would be priced at $3,450, because the exchange rate is 1,150/$ and $3 x 1,1150 = 3,450, $3 being the price of the latte in New York City.
We can see that the latte in Seoul only costs 3,000 Won, so, under this comparison, the Won is undervalued by 450 Won.
The banking crisis of 2008 is quite interesting to analyze. The factors that led to this near banking collapse are intriguing to say the least. In this exercise you will be evaluating the factors that led up to the crisis and determining which ones could have created this scenario. There is no simple answer to what led to the banking crisis, as there were many factors that contributed over a long period of time. Understanding the factors that led to the crisis is very important, as such an understanding will help regulators prevent similar situations in the future.
Fore each item listed, select how much it contributed to the banking crisis.
1. The repeal of some provisions of the Glass-Steagall Act of 1933
a. Major contributor
b. Not a major contributor
2. Savvy individual investors
a. Major contributor
b. Not a major contributo
3. The Community Reinvestment Act (CRA)
a. Major contributor
b. Not a major contributor
4. Borrowersâ lack of financial knowledge
a. Major contributor
b. Not a major contributor
Answers
Answer:
1. The repeal of some provisions of the Glass-Steagall Act of 1933
a. Major contributor
The repeal of some of the provisions of the Glass-Steagall Act led to lesser restrictions on the banking industry which allowed for the kind of investments that banks made leading up to 2008 that led to the crisis.
2. Savvy individual investors
b. Not a major contributor
Savvy individual investors knew how to invest and what to invest in and mostly avoided the securities that caused the crisis.
3. The Community Reinvestment Act (CRA)
a. Major contributor
The CRA allowed for banks to be able to lend money to lower income households who were the major defaulters on the mortgages which was a major contributor to the crisis.
4. Borrowers lack of financial knowledge
a. Major contributor.
A lot of the borrowers did not understand what they were getting into and so when time came to pay back, they ended up being unable to. A fact which contributed in no small way to the banking crisis.
The Glass-Steagall Act, which has been adopted as part of the Banking Law of 1933 by the United States House of representatives, prohibited commercial banks from gengaing in financial services and vice versa. During in the Economic Crisis, an emergency mechanism was put in place to avoid over 5,000 banks from failing. Steagall's usefulness diminished over time, and it was substantially repealed in 1999.
2. Not a significant contributorDuring the economic meltdown of 2008–09, markets crashed, wiping out trillions of dollars of wealth around the world. Many companies' stock was on sale at deep prices, giving savvy investors a once-in-a-lifetime opportunity to buy.
3. Significant contributorThe CRA establishes an incentive structure that could entice banks to create or buy loans that otherwise would have been considered too risky. However, empirical evidence reveals that CRA-related loans constituted up a small percentage of the financial sector even during mortgage bubble.
4. Significant contributorThe company's economic knowledge is critical. The mix of financial, credit, and debt repayment information necessary to make fiscally responsible decisions in our daily lives is described as financial literacy.
Learn more:https://brainly.com/question/10565599?referrer=searchResults
Assume for a moment that Sue, the owner of Camp Bow Wow in Colorado, said that she was looking to provide constantly evolving and improving pet care services that no other organization offered. This would be an example of a-----------------------------strategy.
a. specialization by building customer intimacy
b. cost leadership by being operationally excellent
c. differentiation through product innovation
d. expansion and growth to enhance earnings per share by building out new operations
Answers
Answer:
c. differentiation through product innovation
Explanation:
This would be an example of a differentiation through product innovation strategy because She is constantly looking for an evolving project and at the same time no other organisation has provided this product, which is an example of differentiations with leadership . so correct option is c. differentiation through product innovationAs per the question the owners of the camp wow is looking to provide a continuously evolving and improving pet care service that has no organization.
This is an example of the product innovation and is a subsequent creation of the product or a good or service. Hence the option C is correct. That is differentiation by the innovationLearn more about the owner of Camp Bow Wow.
brainly.com/question/15593483.
You have just been appointed the product manager of the "Vesuvius" counter top vegetable steamers in a large consumer products company. As part of your new job, you want to develop an understanding of the financial situation for your product. Your brand assistant has provided you with the following facts:
a. Retail selling price $50 per unit
b. Retailer's margin 20%
c. Jobber's margin 15%
d. Wholesaler's margin 23.5%
e. Direct factory labor $2 per unit
f. Raw materials $1 per unit
g. All factory and administrative overheads $2 per unit (if unit volume = 100,000)
h. Salesperson's commissions 10% of manufacturer's selling price
i. Sales force travel costs $215,000
j. Advertising $900,000
k. Total market for counter top vegetable steamers 1 million units
l. Current yearly sales of "Vesuvius" 190,000 units
Questions
1. What is the contribution per unit for the "Vesuvius" brand?
2. What is the break-even-volume in units and in dollars?
3. What market share does the Vesuvius brand need to break even?
4. What is the current total contribution?
5. What is the current before-tax profit of the Vesuvius brand?
6. What market share must Vesuvius obtain to contribute a before tax profit of exactly $3.9 million?
Answers
Answer:
Vesuvius
1. The contribution per unit for the "Vesuvius" brand is:
= $25.60.
2. The break-even volume in units and in dollars:
Break-even volume in units = FC/Contribution per unit
= $1,115,000/$25.60
= 43,555 units
Break-even volume in dollars = FC/Contribution margin ratio
= $1,115,000/0.753
= $1,480,745
3. Market share that the Vesuvius brand needs to break-even is:
= 4.36%
4. The current total contribution is:
= $4,864,000
5. The current before-tax profit of the Vesuvius brand is:
= $3,749,000
6. The market share that Vesuvius must obtain to contribute a before tax profit of exactly $3.9 million is:
= 19.59%
Explanation:
a) Data and Calculations:
a. Retail selling price $50 per unit
b. Retailer's margin 20%
c. Jobber's margin 15%
d. Wholesaler's margin 23.5%
e. Direct factory labor $2 per unit
f. Raw materials $1 per unit
g. All factory and administrative overheads $2 per unit (if unit volume = 100,000)
h. Salesperson's commissions 10% of manufacturer's selling price
i. Sales force travel costs $215,000
j. Advertising $900,000
k. Total market for counter top vegetable steamers 1 million units
l. Current yearly sales of "Vesuvius" 190,000 units
Total fixed costs = $1,115,000 ($215,000 + $900,000)
Variable Costs:
Direct materials per unit = $1
Direct labor cost per unit = $2
Total direct costs per unit = $3
Variable overhead costs per unit = $2
Total factory costs per unit = $5
Total factory costs for 100,000 units = $500,000
Wholesaler's selling price = $50 * (100% - 20) * (100% - 15) = $34
Sales commission = 10% of $34 = $3.4
Total variable cost per unit = $8.40 ($5 + $3.40)
Contribution margin per unit = $25.60 ($34 - $8.40)
Contribution margin ratio = $25.60/$34 = 75.3%
Market share to break-even = Break-even units/Market size * 100
= 43,555/1,000,000 * 100 = 4.36%
The current total contribution = $25.60 * 190,000
= $4,864,000
Total fixed costs = $1,115,000
Current before-tax profit = $3,749,000
Market Share to contribute a before-tax profit of exactly $3.9 million:
= (Fixed cost + Target profit)/Contribution per unit
= ($1,115,000 + $3,900,000)/ $25.60
= 195,898/1,000,000 * 100 = 19.59%
Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $12,000 and at that price, Thad estimates 400 units would be sold each year. The variable cost to produce and sell the cycles would be $9,000 per unit. The annual fixed cost would be $960,000.
Show your calculation steps.
a. What is the break-even in unit sales?
Break-even in unit sales _____
b. What is the margin of safety in dollars?
Margin of safety in dollars _____
c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Degree of operating leverage _____
Answers
Answer:
a. Break even in unit sales = $960,000 / $12,000 - $9,000 = $960,000 / $3,000 = 320
b. Margin of safety = ($12,000*400) - ($12,000*320) = $4800000 - $3840000 = $960,000
c. Degree of operating leverage = Contribution / PBIT
Contribution = ($12,000*400) - ($9,000*320) = 4800000 - 2880000 = 1920000
PBIT = 1920000/960,000 = 2
Degree of operating leverage = 1920000/2
Degree of operating leverage = 960,000
December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 profit margin is (rounded):
Answers
Answer:
17.40%
Explanation:
Profit margin = Net income / Net sales * 100
Profit margin = $20 million / $115 million * 100
Profit margin = 0.1739130 * 100
Profit margin = 17.3913%
Profit margin = 17.40%
So, Dowling's 2021 profit margin is 17.40%
Required information Skip to question [The following information applies to the questions displayed below.] Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 780,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 185,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $188,175 of direct materials and $196,313 of conversion cost. The direct material cost added in November is $1,259,325, and the conversion cost added is $3,729,937. Beginning work in process consisted of 76,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 76,000 were from beginning work in process and 704,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.
Answers
Answer:
Direct materials = 965,000 units Conversion = 872,500 units
Explanation:
a. Direct materials
Direct materials are added at the beginning of the process so ending EUP is 100% in respect to EUP.
EUP Direct materials = Finished goods + Closing EUP
= 780,000 + 185,000
= 965,000 units
b. Conversion
= Finished goods + Closing EUP
= 780,000 + (0.50 * 185,000)
= 780,000 + 92,500
= 872,500 units
Oslo Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of Flavor. The grocers are reimbursed when they send the coupons to Oslo. In Oslo's experience, 55% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date Oslo receives it. During 2021 Oslo issued two separate series of coupons as follows:
Consumer Amount Disbursed
Issued On Total Value Expiration Date as of 12/31/18
1/1/18 $500,000 6/30/18 $236,000
7/1/18 840,000 12/31/18 350,000
The only journal entry recorded to date is: debit to coupon expense and credit to cash of $815,000. The December 31, 2018 balance sheet should include a liability for unredeemed coupons of:_____.
a) $0.
b) $70,000.
c) $184,000.
d) $420,000.
Answers
Answer: $112,000
Explanation:
$840,000 worth of coupons had been issued. The company expects that 55% of these coupons will be redeemed.
= 840,000 * 55%
= $462,000
Out of this, by year end only $350,000 have been disbursed, the amount left as a liability will be:
= 462,000 - 350,000
= $112,000
Options are probably for another variant of the question.
Milea Inc. experienced the following events in Year 1, its first year of operations:
1. Received $13,500 cash from the issue of common stock
2. Performed services on account for $45,000
3. Pald the utility expense of $1,150.
4. Collected $36,540 of the accounts receivable.
5. Recorded $8,100 of accrued salaries at the end of the year
6. Paid a $1,050 cash dividend to the stockholders.
Required
1. Prepare the income statement
2. Prepare the statement of changes in stockholders' equity
3. Prepare the balance sheet as of December 31.
4. Prepare the statement of cash flows for the Year 1 accounting period.
Answers
Answer:
1. Net income = $35,750
2. Stockholders' equity = $48,200
3. Total assets = Total Equity and Liabilities = $56,300
4. Net cash generated = $47,840
Explanation:
1. Prepare the income statement
Milea Inc.
Income Statement
For the Year ended 31 December Year 1
Details Amount ($)
Revenue:
Service income 45,000
Expenses:
Utility expense (1,150)
Accrued salaries (8,100)
Net income 35,750
Dividend paid (1,050)
Retained earnings 34,700
2. Prepare the statement of changes in stockholders' equity
Milea Inc.
Statement of changes in stockholders' equity
For the Year ended 31 December Year 1
Details Amount ($)
Common stock 13,500
Retained earnings 34,700
Stockholders' equity 48,200
3. Prepare the balance sheet as of December 31.
Milea Inc.
Balance Sheet
As of 31 December Year 1
Details $
Assets
Current Assets
Ending cash balance 47,840
Accounts receivable ($45,000 - $36,540) 8,460
Total assets 56,300
Equity and Liabilities
Stockholders' equity 48,200
Liabilities
Current liabilities
Accrued salaries 8,100
Total Equity and Liabilities 56,300
4. Prepare the statement of cash flows for the Year 1 accounting period.
Milea Inc.
Statement of Cash Flows
For the Year ended 31 December Year 1
Details $ $
Net income 35,750
Adjustment to reconcile net income:
(Increase) decrease in current assets:
Accounts receivable ($45,000 - $36,540) (8,460)
Increase (decrease) in current liabilities:
Accrued salaries 8,100
Net cash from operating activities 35,390
Cash flow from financing activities:
Common stock 13,500
Dividend paid (1,050)
Net cash from financing activities 12,450
Net cash generated 47,840
Beginning cash balance 0
Ending cash balance 47,840
As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item ExistingSituation AfterAdopting JIT
Manufacturing costs as percentage of sales:
Product-level support 15 % 4 %
Variable manufacturing overhead 28 10
Direct materials 30 20
Direct manufacturing labor 20 13
Other financial data:
Sales revenue $ 1,430,000 $ 1,810,000
Inventory of WIP 260,000 46,000
Other data:
Manufacturing cycle time 60 days 30 days
Inventory financing costs (per annum) 10 % 10 %
Required:
As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation?
Answers
Answer:
A. $74,100 $954,700
B. $880,600
Explanation:
A. Preparation to estimate the financial benefits associated with the adoption of JIT
Current situation After JIT
Sales 1,430,000 1,810,000
Less costs
Production level support 214,500 72,400
(15%*1,430,000=214,500)
(4%*1,810,000=72,400)
Variable manufacturing overhead 400,400 181,000
(28%*1,430,000=400,400)
(10%*1,810,000=181,000)
Direct material 429,000 362,000
(30%*1,430,000=429,000)
(20%*1,810,000=362,000)
Direct manufacturing labor 286,000 235,300
(20%*1,430,000=286,000)
(13%*1,810,000=235,300)
Inventory financing costs 26,000 4,600
(10%*260,000=26,000)
(10%*46,000=4,600)
Total costs 1,355,900 855,300
Operating profits $74,100 $954,700
(1,430,000-1,355,900)
(1,810,000-855,300)
Therefore the the financial benefits associated with the adoption of JIT will be $74,100 $954,700
B. Preparation for the estimated change in annual operating income attributable to the JIT implementation
Current situation After JIT Change
Sales 1,430,000-1,810,000=-380,000
Less costs
Production level support 214,500-72,400 =142,100
Variable manufacturing overhead 400,400 -181,000=219,400
Direct material 429,000-362,000=67,000
Direct manufacturing labor 286,000- 235,300= 50,700
Inventory financing costs 26,000-4,600 =21,400
Total costs 1,355,900-855,300=500,600
Operating profits 74,100-954,700=880,600
Therefore the estimated change in annual operating income attributable to the JIT implementation will be 880,600
School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.
a. True
b. False
Answers
Answer:
This type of arrangement suggests that School Days is an inverted organization.
a. True
Explanation:
An inverted organization gives the customer-facing employees more flexibility and power to lead the organization, with the center line managers playing a supporting role. This type of organization inverts or reverses the traditional and classical pyramid of hierarchical organizations where leadership is from the top. This implies that the counselors and tutors play more leadership roles, especially in designing suitable programs for their students instead of the organization handling the design of programs and making the front-line employees to comply.
A rational buyer will: buy a product until the marginal benefit of consuming the product is less than the price of the product. buy the product only when the marginal benefit of consuming the product is twice as much as the price of the product. not consider costs versus benefits when purchasing a product. keep buying a product until marginal benefit equals price.
Answers
Answer:
keep buying a product until marginal benefit equals price
Explanation:
A rational consumer would continue to consume a product until the marginal benefit of the last unit consumed equal marginal cost. At this point, utility is maximised.
For example, if the price of a bottle of water is $4. The utility you derive from the first bottle is 6. So you consume one more bottle, the utility you derive from the second bottle is 5. you buy a third bottle. The utility you derive from the 3rd bottle is 4. At this point utility is maximised and you should stop consuming more water
If you consume a 4th bottle, the utility you would derive from it would be 3 utils. This doesn't make sense because you are paying more for the bottle when compared to the utility you would derive from it
ABC Co. had 600,000 shares of Common Stock, 40,000 shares of Convertible Preferred Stock, and $3,000,000 of 6% Convertible Bonds outstanding during 2021. The Convertible Preferred Stock is convertible into 80,000 shares of Common Stock. During 2021, ABC Co. paid dividends of $4 per share on the Common Stock and $3 per share on the Convertible Preferred Stock. Each $1,000 Convertible Bond is convertible into 80 shares of Common Stock. The Net Income for 2021 was $1,600,000 and the income tax rate was 30%.
Calculate basic earning per year of common stock for the year ended January1 31, 2104.
If company's preferred stock were convertiable into common stock what additional calculation would be required?
Answers
Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends $120,000 (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding 600,000
Basic Earnings per share for 2021 $2.47
b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
Indigo Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Sweet Company. The following information pertains to the exchange.
Indigo Co. Sweet Co.
Equipment (cost) $36,960 $36,960
Accumulated depreciation 25,080 13,200
Fair value of equipment 16,500 20,460
Cash given up 3,960
Required:
a. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
b. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.
Answers
Answer:
A. Indigo Co
Dr Accumulated depreciation 25,080
Dr Equipment 15,840
Dr Equipment $36,960
Cr Cash 3,960
Sweet Co.
Dr Equipment 16,500
Dr Accumulated depreciation 13,200
Dr Cash 3960
Dr Loss on disposal of equipment 3,300
Cr Equipment $36,960
B. Indigo Complete
Dr Accumulated department 25,080
Dr Equiipment 20,460
Cr Equiipment $36,960
Cr Gain on disposal of equipment 78,540
Cr Cash 3,960
Sweet Co.
Dr Equiipment 16500
Dr Accumulated department 13200
Dr Cash 3960
Dr Loss on disposal of equipment 5660
Cr Equiipment 28,000
Explanation:
a. Preparation of the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
Indigo Co
Dr Accumulated depreciation 25,080
Dr Equipment 15,840
[$36,960+3,960-25,080]
Dr Equipment $36,960
Cr Cash 3,960
Sweet Co.
Dr Equipment 16,500
Dr Accumulated depreciation 13,200
Dr Cash 3960
Dr Loss on disposal of equipment 3,300
[$36,960-(16,500+13,200+3960)
Cr Equipment $36,960
b. Preparation of the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.
Indigo Complete
Dr Accumulated department 25,080
Dr Equiipment 20,460
Cr Equiipment $36,960
Cr Gain on disposal of equipment 78,540
[(25,080+20,460+$36,960)-3,960]
Cr Cash 3,960
Sweet Co.
Dr Equiipment 16500
Dr Accumulated department 13200
Dr Cash 3960
Dr Loss on disposal of equipment 5660
(16500+13200+3960-28,000)
Cr Equiipment 28,000
On April 6, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10, n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15. Required What is the amount that Home Furnishings must pay Una's Imports on April 15
Answers
Answer:
the amount that have to be paid is $28,616
Explanation:
The computation of the amount that have to be paid is shown below:
= (Merchandise value - returned goods) × (1 - discount percentage)
= ($37,000 - $7,800) × (1 - 0.02)
= $29,200 × 0.98
= $28,616
Hence, the amount that have to be paid is $28,616
You have been learning about the accounting equation, debits/credits, and account normal balances. The accounting equation is the foundation of accounting. Understanding debits/credits and the account normal balances are just as important. Sometimes, these concepts are difficult to understand and/or remember. Please research the Internet to find fun and easy ways to remember this information. It could be a song, a mnemonic, phrase, video, etc. It can even be something that you have created. Make sure that the information is college appropriate. Please post your findings and include a link that references the material. Then in a minimum of a paragraph, summarize why you choose this source, how it has helped you remember the material, and why other students would find it helpful.
Answers
Answer:
using the word DEALER
since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence
DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts while
LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts
Explanation:
The fundamentals of accounting is based on the ability to distinguish between a Debit and a credit . ability to do this efficiently will help in the process of balancing the ledger at the end of each accounting period. most times the concepts of Debits and credits are not so easy to memorize hence i will such the Fun way of Memorizing them which is;
using the word DEALER
since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence
DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts while
LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts
Spicewood Stables, Inc., was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactions for April are provided for your review.
1. Received contributions from investors and issued $230,000 of common stock on April 1.
2. Acquired a barn for $180,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.
3. Provided $18,000 in animal care services for customers on April 3, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $14,000 on April 4 for rent earned this month.
5. On April 5, received $3,350 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).
6. Purchased and received hay and feed supplies on account on April 6 for $3,800.
7. Paid $2,600 on accounts payable on April 7 for previous purchases.
8. Received $2,040 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $4,800 for coverage starting in May.
10. On April 28, paid $1,140 in cash for water and utilities used this month.
11. Paid $14,800 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $1,560 for usage in April; the bill will be paid next month.
Required:
1. Prepare the journal entry for each of the above transactions.
2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations.
3. Prepare an unadjusted trial balance as of April 30.
4-a. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin.
4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.
Answers
Answer:
Spicewood Stables, Inc.
1. Journal Entries:
April 1:
Debit Cash $230,000
Credit Common Stock $230,000
To record contributions from investors and issuance of stock.
April 2:
Debit Barn $180,000
Credit Cash $90,000
Credit Notes Payable (Long-term) $90,000
To record the acquisition of a barn.
April 3:
Debit Accounts Receivable $18,000
Credit Service Revenue $18,000
To record the provision of animal care services on credit.
April 4:
Debit Cash $14,000
Credit Rent Revenue $14,000
To record the renting of stables to customers for April.
April 5:
Debit Cash $3,350
Credit Deferred Revenue $3,350
To record the receipt of cash from customer in advance.
April 6:
Debit Supplies $3,800
Credit Accounts Payable $3,800
To record the purchase of hay and feed supplies on account.
April 7:
Debit Accounts Payable $2,600
Credit Cash $2,600
To record the payment on account
April 8:
Debit Cash $2,040
Credit Accounts Receivable $2,040
To record the receipt of cash from customers.
April 9:
Debit Prepaid Insurance $4,800
Credit Cash $4,800
To record the prepayment of insurance for 2 years.
April 10:
Debit Utilities Expense $1,140
Credit Cash $1,140
To record the payment for water and utilities.
April 11:
Debit Wages Expense $14,800
Credit Cash $14,800
To record the payment of wages for the month.
April 12:
Debit Utilities Expense $1,560
Credit Utilities Payable $1,560
To record the accrued electric utility bill.
2. T-Accounts:
Cash
Date Account Title Debit Credit
April 1 Common stock $230,000
April 2 Barn $90,000
April 4 Rent Revenue 14,000
April 5 Deferred Revenue 3,350
April 7 Accounts payable 2,600
April 8 Accounts receivable 2,040
April 9 Prepaid Insurance 4,800
April 10 Utilities Expenses 1,140
April 11 Wages Expense 14,800
April 12 Balance $136,050
Totals $249,390 $249.390
Common Stock
Date Account Title Debit Credit
April 1 Cash $230,000
Barn
Date Account Title Debit Credit
April 2 Cash $90,000
April 2 Notes payable 90,000
April 12 Balance $180,000
Notes Payable
Date Account Title Debit Credit
April 2 Barn $90,000
Accounts Receivable
Date Account Title Debit Credit
April 3 Service Revenue $18,000
April 8 Cash $2,040
April 12 Balance $15,960
Service Revenue
Date Account Title Debit Credit
April 3 Accounts receivable $18,000
Rent Revenue
Date Account Title Debit Credit
April 4 Cash $14,000
Deferred Revenue
Date Account Title Debit Credit
April 5 Cash $3,350
Supplies
Date Account Title Debit Credit
April 6 Accounts Payable $3,800
Accounts Payable
Date Account Title Debit Credit
April 6 Supplies $3,800
April 7 Cash $2,600
April 12 Balance $1,200
Prepaid Insurance
Date Account Title Debit Credit
April 9 Cash $4,800
Utilities Expenses
Date Account Title Debit Credit
April 10 Cash $1,140
Wages Expense
Date Account Title Debit Credit
April 11 Cash $14,800
3. Unadjusted Trial Balance as of April 30:
Account Title Debit Credit
Cash $136,050
Common stock $230,000
Barn 180,000
Notes payable 90,000
Accounts receivable 15,960
Service Revenue 18,000
Rent Revenue 14,000
Deferred Revenue 3,350
Supplies 3,800
Accounts payable 1,200
Prepaid Insurance 4,800
Utilities Expenses 1,140
Wages Expense 14,800
Totals $356,550 $356,550
4a.
Service Revenue 18,000
Rent Revenue 14,000
Total revenues $32,000
Utilities Expenses 1,140
Wages Expense 14,800
Total expenses $15,940
Net Income $16,060
Net profit margin = $16,060/$32,000 * 100 = 50.19%
4b. The net profit margin is better than the 30.0% earned by a close competitor.
Explanation:
The adjustment for Electric Utility does not form part of the adjusted trial balance. If we assume that the payment was eventually made on April 30, the Cash Balance will reduce by $1,560 and the total expenses will increase by the same amount with an equal reduction in the net income to $14,500. This will also reduce the net profit margin to 45.31%.
The advantage of having many potential suppliers is their willingness to A. provide technical expertise. B. participate in JIT. C. provide innovations. D. offer lower prices in the short term.
Answers
Answer:
d
Explanation:
the more the suppliers the more the competition would be among suppliers to gain customers. As a result, they would offer lower prices in the short run to customers to gain them.
In the long run, suppliers would leave the oversaturated industry and equilibrium would be restored.
Which part/phrase in the passage hints at a disadvantage that Gary suffers as a franchisee?
Gary entered a franchise contract with a manufacturing company a year back.
He has to sell the company's products under its trademark. He
has been learning the company's management techniques as per the contract.
He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence.
He has to pay royalties and a small percentage of his sales revenue to the franchisor every month.
Answers
Answer:
I believe it is "He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence." because he can't help his business grow when he can't make new ideas.
Answer:
2nd sentence
Explanation:
Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 25%. The firm will not be issuing any new common stock. What is Avery's WACC
Answers
Answer:
8.15%
Explanation:
The computation of the weighted average cost of capital as follows;
= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity
= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100
= 1.37% + 0.60% + 6.19%
= 8.15%
what is a down payment of 20 percent on a purchase price of $215,000
Answers
Answer:
$43,000
Explanation:
) It can be supposed that an increase in the importance of fitness and wellness in people's lives prompted Apple to include features like the built-in compass and always-on workout apps. That increased importance in fitness is part of the __________________ societal force. a not selected option a economic b not selected option b natural c selected option c cultural d not selected option d demographic e not selected option e political
Answers
Answer:
C. Cultural.
Explanation:
Culture can be defined as the general way of life of a group of people living together in a particular location or society.
Basically, culture comprises of beliefs, values, behaviors, language, dressing, cuisine, music, symbols, arts, social habits, knowledge, customs, laws pertaining to a particular group of people living together in a society.
This ultimately implies that, culture are acquired and passed from one generation to another.
A cultural trait can be defined as the smallest characteristics of human activity (actions) that is mainly acquired socially and transmitted from one generation to another through various modes of communication. Thus, these unique behavioral informations or characteristics and beliefs acquired by people socially are transmitted from one individual or group of people to another.
Basically, cultural traits play a significant role in the way of life of a group of people in that it is a unique collection of various cultural elements that are closely related such as behaviors and beliefs.
Hence, it can be supposed that an increase in the importance of fitness and wellness in people's lives prompted Apple to include features like the built-in compass and always-on workout apps. Thus, that increased importance in fitness is part of the cultural societal force because it is a unique assortment of behaviors that distinguish the people.
When the company is hosting an event, managers should assign event preparations to a ________. Preparations include trucking in different kinds of equipment and setting it up over several acres; installing sufficient security, first aid, and portable restrooms throughout the course; and having food and drink delivered, as well as marketing the event and enrolling participants. Hiring team members who are diverse in terms of gender and race is likely to_____________ the team's productivity.
Answers
Answer:
Cross functional team / will increase
Explanation:
A cross functional team can be defined as a team formed by people with different areas of expertise, as is the case of a team specialized in the organization of business events.
Cross functional teams have the advantages of making work more effective and more productive by the possibility that each person is responsible for a different area and therefore the work takes place in a much more flexible, dynamic and creative way, since there is greater autonomy, greater capacity to communication and lower hierarchy in these teams, and the greater the diversity of professionals, the more the teams will be innovative and productive.
Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of these investments for $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7,000, whereas the securities sold on December 18 had cost the company $6,000.
a) Record the purchase of marketable securities on December 4.
b) Record the sale of marketable securities on December 9.
c) Record the sale of marketable securities on December 18.
d) Record the necessary fair value adjustment on December 31, assuming that the market value of the company's remaining unsold securities was $20,000.
Answers
Answer:
Mumford Corporation
Journal Entries:
a) December 4:
Debit Investment in Marketable Securities $30,000
Credit Cash $30,000
To record the purchase of marketable securities.
b) December 9:
Debit Cash $10,000
Credit Investment in Marketable Securities $7,000
Credit Gain from sale of marketable securities $3,000
To record the sale of investment and the gain arising from the sale.
c) December 18:
Debit Cash $5,000
Debit Loss from sale of securities $1,000
Credit Investment in marketable securities $6,000
To record the sale of marketable securities and the arising loss.
d) December 31:
Debit Investment in Marketable Securities $3,000
Credit Unrealized Gain $3,000
To record the unrealized gain on marketable securities.
Explanation:
a) Investment in marketable securities = $30,000 on December 4
Cost of units sold on December 9 = $7,000; selling price =$10,000
Cost of units sold on December 18 = $6,000; selling price = $5,000
b) Mumford will record an unrealized gain to the value of $3,000 because the value of the marketable securities has increased but the asset is yet to be sold for cash. When the asset is eventually sold, it becomes a realized gain.
By debiting the trade receivables account and crediting the sales account, the journal entry to document such credit value of products and services is passed.
Journal entry based problem:S.no Particular Debit Credit
A. Marketable securities DR 30,000
Cash CR 30,000
B. Cash DR 10,000
Marketable securities CR 7,000
Gain on sale CR 3,000
C. Cash DR 5,000
Loss on sale of Investments DR 1,000
Marketable Securities CR 6,000
D. Marketable Securities DR 3,000
Unrealized holding gain CR 3,000
($30,000 − $7,000 − $6,000 - 20,000)
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