Answer:
a. we must add up all of the amounts that firms are willing and able to supply at that price.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.
On the other hand, the law of supply states that the higher the price of goods and services, the lower the supply.
Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
In a market, to find the total amount supplied at a particular price, we must add up or sum all of the amounts (quantities) of a product that firms are willing and able to supply at that price.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
Scientific management were more concerned with the problems at the.........a. operational b.High level
Answer:
The correct option is a. operational level.
Explanation:
Scientific management is a management theory that examines and combines workflows. Its fundamental goal is to increase economic efficiency, particularly worker productivity at thee operational level.
Operational level is a level at which operational activities of a business are carried out. Operational activities are company functions that are directly tied to supply of goods and/or services to the market. Basic business activities include producing, distributing, marketing, and selling a product or service.
Therefore, the correct option is a. operational level. That is, scientific management were more concerned with the problems at the operational level.
Artis Sales has two store locations. Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A
Answer:
$312,500
Explanation:
break-even sales = Fixed Cost ÷ Contribution margin ratio
= $125,000 ÷ 40 %
= $312,500
the break-even sales volume for Store A is $312,500
Outdoor Company is located in Kirkland, Washington, where the city and the state have minimum wage laws. Outdoor pays its starting employees the legal minimum rate, which, among the governing laws, is Group of answer choices the federal minimum wage. the city minimum wage. the highest of the minimum wages. the state minimum wage.
Answer: the highest of the minimum wages.
Explanation:
The company will have the pay the minimum wage that is the highest because they are under the authority of all three governments and paying the highest minimum wage would ensure that they automatically follow the minimum wages set by the other two authorities.
For instance; the federal minimum wage is $7.25 per hour, the state minimum wage is $10 per hour and the city minimum is $12 per hour. When the company pays $12 an hour, they would be adhering to the city minimum and automatically adhering to the Federal and State minimums as well.
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.
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
During 2021, Sysco Corp. had 950,000 shares of common stock and 100,000 shares of 7% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $400,000 and $200,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Sysco issued $2,100,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%. What will Sysco report as diluted earnings per share for 2021, rounded to the nearest cent?
a. None of these answer choices are correct
b. 56.25
c. $6.03
d. $6.35
Answer:
c. $6.03
Explanation:
Earnings available to common shareholders
Net Income $6,000,000
Less: Preference dividend $200,000
Net Income available to common shareholders $5,800,000
Number of Common shares = 950,000
Equivalent common shares for convertible 5% Bonds = 10,450. [Number of bonds = 2,100,000/1,000 = 2,100 shares. Equivalent common shares = 2,100 * 5 = 10,500 shares]
Weighted average number of common shares outstanding = 950,000 + 10,500 = 960,500
Earnings per share = Earnings available to common shareholders / Weighted average number of common shares outstanding
Earnings per share = $5,800,000 / 960,500
Earnings per share = 6.038521603331598
Earnings per share = $6.04
Other than living with your parents, what is another smart way to keep living
expenses down while in college?
Answer:put money in stocks
Explanation:it might be risky but you can strike gold I made 200 in a day and other people can get more, this is a graet way to make money.
Or you can buy caned food that you can save for longer and eat less
A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price of $900. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital
Answer: 4.10%
Explanation:
Solve for the current rate being used using the RATE function on Excel.
Number of periods = 15
Payment = 1,000 * 5% = 50
Present value = Current market price - floatation costs = 900 - 25 = 875
Future value = 1,000 face value
The result will be:
= 6.31%
If tax is 35%, after-tax cost is:
= 6.31% * (1 - 35%)
= 4.10%
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and a fair value of $162,000. Bronco paid the owner of the equipment $16,000 to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment
Answer:
$178,000
Explanation:
When a transaction has commercial substance :
Fair value of Asset = Fair Value of Asset given up + Cash paid
therefore,
Fair value of the equipment = $162,000 + $16,000
= $178,000
thus,
the fair value of the equipment is $178,000
Teal Mountain Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $780,000 cash for Old Master. At the time, Old Masterâs balance sheet reported assets of $630,000 and liabilities of $190,000 (thus ownersâ equity was $440,000). The fair value of Old Masterâs assets is estimated to be $810,000. Included in the assets is the Old Master trade name with a fair value of $6,000 and a copyright on some instructional books with a fair value of $19,200. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.
Required:
a. Prepare the journal entry to record amortization expense for 2020.
b. Prepare the intangible assets section of Teal Mountain Golf Inc. at December 31, 2020.
Answer:
Teal Mountain Golf Inc.
a. Journal Entry:
December 31, 2020:
Debit Amortization Expense $17,680
Credit Accumulated Amortization $17,680
To record the amortization expense for the year.
b. Intangible Assets Section of Teal Mountain Golf Inc. as at December 31, 2020:
Goodwill $160,000
less acc. amortization 16,000 $144,000
Trade Name 6,000
less acc. amortization 1,200 4,800
Copyright 19,200
less acc. amortization 480 18,720
Total net intangible assets $167,520
Explanation:
a) Data and Calculations:
Amount paid for Old Master Golf Company = $780,000
Fair value of old master's assets = $810,000
Less liabilities = (190,000) (620,000)
Purchased Goodwill = $160,000
Intangible assets: Amortization Period Amortization Expense for 2020
Goodwill = $160,000 10 years $16,000 ($160,000/10)
Trade name $6,000 5 years 1,200 ($6,000/5)
Copyright $19,200 40 years 480 ($19,200/40)
Total amortization expense for 2020 = $17,680
Oriole Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $3100 of products (cost $1550). Assuming that based on prior experience, estimated returns are 30%. The journal entry to record the actual return of $160 of merchandise includes a
Answer: See explanation
Explanation:
The journal entry to record the actual return of $160 of merchandise includes:
Debit Sales return and allowance $160
Credit Account receivable $160
Debit Returned Inventory $80
Credit Cost of goods sold $80
Note:
Returned inventory was calculated as:
= $160 × (1550/3100)
= $160 × 0.5
= $80
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
During 2020, Lincoln Company hires 21 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $15,850 during the year. Determine the amount of Lincoln's work opportunity credit. $fill in the blank 1.
Answer: $50400
Explanation:
Based on the information given in the question, it should be noted that Lincoln Company can take full credit due to the fact that the workers work for more than 400 hours
Therefore, the work opportunity credit will be claimed as 40% of the first $6,000 and this will be:
= (40% × $6000) × 21
= $2400 × 21
= $50400
You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can be invested at your bank. The bank pays 3.6 percent annual interest on its accounts. How long will it be before you have enough to buy the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16
Answer:
It will take 337.18 years before you have enough to buy the car.
Explanation:
This can be calculated using the future value (FV) formula as follows:
FV = PV * (1 + r)^n ...................... (1)
Where:
FV = future value or the price of Ferrari = $180,000
PV = present value or thee amount you have today = $29,000
r = annual interest rate = 3.6%, or 0.036
n = number of years = ?
Substituting the values into equation (1) and solve for n, we have:
$180,000 = $29,000 * (1 + 0.036)^n
$180,000 - $29,000 = 1.036^n
151,000 = 1.036^n
Loglinearizing, we have:
log151,000 = nlog1.036
5.17897694729317 = n * 0.0153597554092142
n = 5.17897694729317 / 0.0153597554092142
n = 337.18
Therefore, it will take 337.18 years before you have enough to buy the car.
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.
Tom produces commemorative t-shirts in a competitive market. If Tom decides to decrease his output, this will Group of answer choices increase his revenue, since Tom's competitors will also decrease their output, so that price rises to offset the drop in Tom's output. decrease his revenue, since the price falls as competitors increase their output to make up for his decrease in output. decrease his revenue, since his output has decreased and the price remains the same. increase his revenue, since the output decrease leads to a higher market price.
Answer:
decrease his revenue, since his output has decreased and the price remains the same
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.
Because Tom is a price taker, his activity is would affect the price for t-shirts, if he reduces his output, price would remain unchanged and as a result, revenue would fall.
In 2020, Creeper Corporation had a $4,000 net long-term capital loss that it could not carry back. For 2021, it reported the following capital transactions. Long-term capital gain$2,000 Short-term capital gain3,000 As a result of these transactions, for 2021 Creeper reports a: a.Net short-term capital gain of $1,000. b.Carryover to 2022 of $2,000 long-term capital loss. c.Net short-term capital gain of $3,000. d.Net long-term capital gain of $1,000.
Answer:
d. Net long-term capital gain of $1,000
Explanation:
2020, $4,000 net long-term capital loss that it could not carry back.
2021, Long-term capital gain $2,000
2021, Short-term capital gain $3,000
In 2021, Creeper would reports a:
Net long-term capital gain = Long-term capital gain + Short-term capital gain - Net long-term capital loss
Net long-term capital gain = $2,000 + $3,000 - $4,000
Net long-term capital gain = $1,000
One way the Federal Reserve can counter unemployment and stimulate spending is by-
А
selling securities
B
decreasing the discount rate
c
tightening monetary policies
D
increasing the reserve requirement
Answer:
I think the answer is C
Explanation:
sorry if wrong
Tightening monetary policies is one of the way that the Federal Reserve can counter unemployment and stimulate spending. Option C is correct.
What is the monetary policy?A nation's entire money supply is managed by monetary policy, which also aims to promote economic growth. Interest rate changes and adjustments to bank reserve requirements are examples of monetary policy strategies.
Interest rates in the economy are affected by monetary policy, including interest rates on savings accounts, corporate loans, and mortgages. Changes in interest rates have an impact on how individuals invest their money or spend their money, which has an impact on inflation, economic growth, and employment.
One method for the Federal Reserve to combat unemployment and boost expenditure is to tighten monetary policy. Raising interest rates makes borrowing more expensive and, thus, less appealing.
Therefore, option C is correct.
Learn more about the monetary policies, refer to:
https://brainly.com/question/28199887
#SPJ2
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]
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
Societies make choices about goods and services based on the availability of A. land B. workers C. resources D. new technology Please select the best answer from the choices provided ОА OB O c OD
Answer:
c
Explanation:
Resources are means or factors used to produce goods and services that satisfy human wants.
Human wants and that of the society is unlimited but the resources available to satisfy these wants are limited. As a result, economic agents must make decisions based on the availability of resources.
Resources include :
Land are natural resources used to produce goods and services e.g. gold mine
Labor is the effort used by people in the production of goods and services.
Capital includes machinery and man made resources used in production e.g. hammer
An entrepreneur is a person who combines the other factors of production together
The data show the percentage of households that composted kitchen waste and those that composted yard waste in 26 regions of a certain country. Complete parts a and b below.
The mean percentage of households that composted kitchen waste is
........%, while the mean percentage of households that composted yard waste is
.........%. The percentage of households that composted kitchen waste is ......... the percentage of households that composted yard waste.
The standard deviation of the percentage of households that composted kitchen waste is ........%, while the standard deviation of the percentage of households that composted yard waste is .........%. The percentage of households that composted kitchen waste is ........... the percentage of households that composted yard waste.
Kitchen Yard
33 45
94 84
46 68
89 73
55 78
10 54
67 82
65 80
70 85
73 88
73 83
71 85
74 80
71 84
52 84
34 90
78 83
27 77
56 74
56 76
32 67
27 52
22 54
38 77
39 80
61 83
Answer:
that's alot of numbers but
All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $85,000, and sales at Store 2 to increase by $113,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations.
The question is incomplete. The complete question is :
Shown below is a segmented income statement for Drexel-Hall during the current month: Drexel-Hal Store 1 Store 2 Store 3 Sales Variable costs Dollars $1,800.000 100% s600,000 100% S600.000 100% S600.000 100 % 1080,000 60 372,000 62 378,000 63 330,00055 Contribution margin Traceable fixed costs: controllable $ 720,000 432,000 40% 24 $228,000 38 % $222,000 37% $270,000 45% 20,000 20 102,000 17 210,000 35 Performance margin Traceable fixed costs: committed S 288,000 16% $108,000 18% $120,000 20% $60,000 66,000 10% 80,00010 48,000 8 66,000 11 Store responsibility margin $ 108,000 6% $60,000 10% s54,000 9% $ (6,000) (1) % Common fixed costs 36,000 Income from operations $ 72,000 4% All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $85,000, and sales at Store 2 to increase by $113,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations.
Solution :
1. Decrease in the Sale from the stores 3 600,000
Less : increase in sale from stores 1 and 2 180,000
Net decrease 420,000
2. Expected increase in the monthly count
Stores 1 = 60000 x 38% 22,800
Stores 2 = 120000 x 37% 44,400
Less : fixed cost
Monthly responsibility margin 22,800 44,400
3. Increase in the income by eliminating 6,000
store 3
Responsibility margin 67,200
Expected increase in the monthly income 73,200
The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 4; the risk-free rate is 3 percent; the beta of the firm's common stock is 1.5; the market risk premium is 9 percent. What is the firm's cost of equity capital
Answer:
16.5%
Explanation:
Cost of equity = risk free + beta x (market rate of return - risk free rate of return)
3 + (1.5 x 9) = 16.5%
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
You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,392.00, salaries to $6,594.00 and insurance to $2,062.00 per month. Variable cost per student will increase up to $160.00 per month. However you can charge $1,045.00 per student. At what point will you be indifferent between your current mode of operation and the new option
Answer:
20
Explanation:
Missing word "You run a school in Florida. Fixed monthly cost is $5,290.00 for rent and utilities, $6,345.00 is spent in salaries and $1,249.00 in insurance. Also every student adds up to $95.00 per month in stationary, food etc. You charge $666.00 per month from every student now."
Let the number of student be x
Total profit from first operation = 666x - 5290 - 6345 - 1249 - 95x
Total profit from first operation = 571x - 12884
Total profit from second operation = 1045x - 10392 - 6594 - 2062 - 160x
Total profit from second operation = 885x - 19048
At point of indifference, Profit from first operation=Profit from second operation
571x - 12884 = 885x - 19048
885x - 571x = 19048 - 12884
314x = 6164
x = 6164/314
x = 19.6306
x = 20
Hence, one will be indifferent when the total number of student is 20
A company must decide the number of machines it should buy to satisfy its demand. The machine will operate 60 minutes per hour, 8 hours per day, 250 days per year. The company currently has 2 machine type 1, and 1 machine type 2.
Product demand and processing times for the equipment are:
Product Annual Demand PROCESSING TIME
PER UNIT (minutes)
Machine 1 Machine 2
001 12,000 4 6
002 10,000 9 9
003 18,000 5 3
a) The total processing time required by producing Product 1, 2, and 3 using machine type 1?
b) The total processing time required by producing Product 1, 2, and 3 using machine type 2?
c) What is the capacity cushion for machine type 1 and machine type 2?
d) How many machines of each type would be required to handle the demand?
Answer:
A
Explanation:
it's a because the processing time required by product 1,2 and 3 using machine type 1
Each of the following are areas of accounting opportunities except Multiple choice question. financial managerial regulators taxation g
Answer:
s
Explanation:
The Town of Drexel has the following financial transactions. Prepare the journal entries necessary for the preparation of fund financial statements.
1. The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.
2. The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year. Of the levied amount, $40,000 will be collected next year but after more than 60 days.
3. The town orders two new police cars at an approximate cost of $110,000.
4. A transfer of $50,000 is made from the general fund to the debt service fund.
5. The town pays a bond payable of $40,000 along with $10,000 of interest using the money previously set aside.
6. The Town of Drexel issues a $2 million bond at face value in hopes of acquiring a building to convert into a high school.
7. The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.
8. The town purchases the building for the high school for $2 million in cash and immediately begins renovating it.
9. Depreciation on the new police cars is computed as $30,000 for the period.
10. The town borrows $100,000 on a 30-day tax anticipation note.
Answer:
1. A. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance 80,000
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Revenues - Property taxes $1,261,000
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
Explanation:
Preparation of the journal entries necessary for the preparation of fund financial statements
1. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance $80,000
($1,700,000-$1,500,000-$120,000)
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
($1,300,000-$39,000-$40,000)
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Revenues - Property taxes $1,261,000
($1,300,000-$39,000)
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
($40,000+$10,000)
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
($40,000+$10,000)
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
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