Answer:
Required a
April 5,
Merchandise $38,900 (debit)
Accounts Payable ; Culver Company $38,900 (credit)
April 6
Freight Cost $800 (debit)
Cash $800 (credit)
April 7
Equipment $39,900 (debit)
Accounts Payable $39,900 (credit)
April 8
Accounts Payable ; Culver Company $5,000 (debit)
Merchandise $5,000 (credit)
April 15
Accounts Payable ; Culver Company $33,900 (debit)
Discount Received $678 (credit)
Cash $33,222 (credit)
Required b.
Accounts Payable ; Culver Company $33,900 (debit)
Cash $33,900 (credit)
Explanation:
When Tamarisk, Inc. paid the balance due to Culver Company on April 15, the payment is made within the discount period. Thus Tamarisk, Inc is granted a discount of 2% and pays the Account at $33,222 (net of credit granted on merchandise previously returned) .
However, when Tamarisk, Inc. paid the balance due to Culver Company on May 4 instead, the payment is made outside the discount period. Thus Tamarisk, Inc is not granted a discount pays the Account in full at $33,900 (net of credit granted on merchandise previously returned) .
On January 1, ABC sold $30,000 in products to a customer on account. Then on January 10, ABC collected the cash on that account. What is the impact on ABC's accounting equation from the collection of cash on January 10?
Answer:
Collection of Cash on January 10
The Impact on ABC's accounting equation:
The Assets (Cash) will increase by $30,000 and another type of Assets (Accounts Receivable) will decrease by $30,000.
The collection of cash on January 10 does not affect the other side of the accounting equation.
Explanation:
The accounting equation shows that for every transaction, the Assets will be equal to the Liabilities + Owners' Equity. The explanation is that the financial resources which an entity owns actually belong to either creditors or equity owners in the form of financial obligations (liabilities) or contributed capital plus some parts of the net income over the years which the entity has reinvested in its business.
The accounting equation is the fulcrum of the double-entry accounting system. On a company's balance sheet, the accounting equation shows that assets equal the sum of the company's liabilities and shareholders' equity.
Day Corp. holds 10,000 shares of its $10 par value common stock as treasury stock reacquired in Year 2 for $120,000. On December 12, Year 4, Day reissued all 10,000 shares for $190,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to:___________
Answer:
Credit of Additional paid-in capital of $70,000
Explanation:
Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to: Additional paid-in capital of $70,000
Treasury stock reacquired in Year 2 $120,000
Less Year 4, reissued $190,000
Balance $70,000
Hence the $70,000 will be the additional Paid-in capital because the Treasury stock was reacquired in Year 2 $120,000 in which later in Year 4, $190,000 was reissued .
Therefore Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to: Additional paid-in capital of $70,000
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Inventory 7/1/16 $51,100Factory Insurance $4,700Raw Materials Inventory 6/30/17 46,000Factory Machinery Depreciation 19,000Finished Goods Inventory 7/1/16 98,200Factory Utilities 29,100Finished Goods Inventory 6/30/17 26,100Office Utilities Expense 9,350Work in Process Inventory 7/1/16 26,800Sales Revenue 564,000Work in Process Inventory 6/30/17 22,300Sales Discounts 4,700Direct Labor 147,750Plant Manager’s Salary 65,600Indirect Labor 26,560Factory Property Taxes 9,810Accounts Receivable 27,100Factory Repairs 1,600Raw Materials Purchases 97,500Cash 35,600A) Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials).B) Prepare an income statement through gross profitC) Prepare the current assets section of the balance sheet at June 30,2017
Answer:
A) cost of goods manufactured schedule
Factory Insurance 4,700
Factory Utilities 29,100
Factory Machinery Depreciation 19,000
Direct Labor 147,750
Plant Manager`s Salary 65,600
Indirect Labor 26,560
Factory Property Taxes 9,810
Factory Repairs 1,600
Add Beginning Work in Process Inventory 26,800
Less Closing Work in Process Inventory (22,300)
Cost of Goods Manufactured $308,620
B) income statement through gross profit
Sales Revenue 564,000
Less Sales Discounts (4,700)
Net Sales 559,300
Less Cost of Goods Sold :
Finished Goods Inventory 98,200
Add Cost of Goods Manufactured 308,620
Less Closing Finished Goods Inventory (26,100) (380,720)
Gross Profit 178,580
C) current assets section of the balance sheet at June 30,2017
Current Assets
Raw Materials Inventory 46,000
Work in Process Inventory 22,300
Finished Goods Inventory 26,100
Accounts Receivable 27,100
Cash 35,600
Total Current Assets 157,100
Explanation:
Raw Materials Consumed in Production Calculation
Open a Raw Materials T - Account as follows :
Debit :
Opening Balance $51,100
Purchases $97,500
Totals $148,600
Credit :
Closing Balance $46,000
Requisitioned for Production (Balancing figure) $102,600
Totals $148,600
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000). Information about the company's two products is as follows:
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
If machining hours are used as a base under traditional costing, how much overhead is assigned to Product A1?
Answer:
Allocated MOH= $89,600
Explanation:
Giving the following information:
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000).
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
Under the traditional costing system, the company applies overhead based on a single plantwide predetermined overhead rate.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 160,000/ 5,000
Predetermined manufacturing overhead rate= $32 per machine hour
Now, we can apply overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 32*2,800= $89,600
Assume that the cost of money is 10% per year. The initial cost of a small personal aircraft is $35,000, the annual repair and maintenance cost is $20,000 and the salvage value is $10,000. The aircraft is kept for 2 years. The present worth of the aircraft is :__________
Answer:
The present worth of aircraft = $29137.82
Explanation:
Given the cost of money (r ) = 10%
The initial cost of small aircraft = $35000
Annual repair and maintenance costs (A) = $20000
Salvage valaue = $10000
Now calculate the present value of aircraft by adding the initial cost of annual maintenance and salvage value and subtracting the initial cost.
[tex]Present worth = initial cost + \frac{A[1-(1+r)^{-n}]}{r} - \frac{Salvage \ value}{(1 + r)^{n}} \\= 35000 + \frac{20000 [1 – (1+ 0.01)^{-2}]}{0.01} - \frac{10000}{(1 + 0.01)^{2}} \\= $29137.82[/tex]
An uninterruptible power system used in a small production facility at Acme Manufacturing has a basis of $56,000 and is expected to have $5750 salvage value after 125,000 hours of use. Calculate the depreciation rate per hour of use and the book value after 77,000 hours of operation.
Answer:
The depreciation rate per hour is 0.402
The Book value is $25,046
Explanation:
In order to calculate the depreciation rate per hour of use we would have to calculate the following:
depreciation rate per hour=(basis- salvage value)/hours of use
depreciation rate per hour=($56,000-$5750)/125,000
depreciation rate per hour=0.402
To calculate the book value we would have to make the following calculation:
Book value=basis-(depreciation rate per hour*77,000 hours of operation)
Book value=$56,000-(0.402*77,000)
Book value=$25,046
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $88,200, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $77,700. What amount of loss on realization should be allocated to Alpha
Answer:
The amount of loss to Alpha is $17700.
Explanation:
Given income sharing ratio = 1:2
The capital balance of Alpha = $42600
The capital balance of Beta = $88200
Total capital balance (Alpha + Beta) [tex]= $42600 + $88200 = $130800[/tex]
The cash balance available = $77700
Loss = 130800 – 77700 = $ 53100
The share of loss allocated to Alpha:
[tex]= 53100 \times \frac{1}{3} \\= $17700[/tex]
Therefore, the amount of loss to Alpha is $17700.
The Viper retires a $49.4 million bond issue when the carrying value of the bonds is $53.1 million, but the market value of the bonds is $46.5 million. The entry to record the retirement will include: Multiple Choice A debit of $6.6 million to a loss account. No gain or loss on retirement. A credit to cash for $53.1 million. A credit of $6.6 million to a gain account.
Answer:
A debit of $6.6 million to a loss account
Explanation:
The entry to record the retirement Viper retires
Carrying value of the bonds $53.1 million
Less the market value of the bonds is $46.5 million
=$6.6 million loss
The answer is a debit of $6.6 million to a loss account because the carrying value of the bonds was $53.1 million while the market value of the bonds was $46.5 million which means we have to deduct the carrying value from the market value which gave us a loss of $6.6 million .
QUESTION 12 For a strategic alliance, firms should seek partners that are: a. known for being opportunistic. b. radically different when it comes to strategic goals. c. willing to share costs and risks of new-product development. d. different in terms of vision and agendas. e. similar when it comes to capabilities.
Answer:
c. willing to share costs and risks of new-product development.
Explanation:
A strategic alliance is when two companies come together to carry out a project that benefits both companies while both companies still retain their independence.
If strategic alliance is carried out with a company that is opportunistic, the company might take advantage of the other company or take certain actions that would not benefit the other company.
strategic alliance has to be mutually beneficial to both companies, so, strategic goals and visions have to align.
Capabilities don't have to be the same for a strategic alliance.
I hope my answer helps you
Which of the following could be considered a cost driver? Select one: a. A service provided by an architecture firm b. A product produced by a manufacturer c. A tax return prepared by a local CPA firm d. All of the above
Answer: d. All of the above
Explanation:
A cost driver refers to the activity that causes an actual change in the cost of a transaction and by extension it's local cost.
For example, cost driver of labor would be the number of people working or cost driver of Electricity paid would be the actual number of units consumed.
In the above, the products and services mentioned are the integral activities for those firms so they are cost drivers to those firms.
Price ceilings may be imposed if: A. suppliers can make strong moral or political arguments for higher prices. B. demanders can make strong moral or political arguments for higher prices. C. demanders can make strong moral or political arguments for lower prices. D. suppliers can make strong moral or political arguments for lower prices.
Answer:
C. Demanders can make strong moral or political arguments for lower prices.
Explanation:
This explained as a legal price limit set by the government on the sellers in a way to be a protection means to the buyers. This will general control some serial hike and outrageous price on some goods and services.
Its effects are of different types; firstly, price ceiling can create huge market efficiencies in a long run and also causes hoarding of products and springing up of black markets and other hook and crook forms of marketing and this is known to cause unrest in the supply side. When these keeps pulling on, it has a negative effect on the economy of the said nation.
although appealing to more refined tastes, art as a collectible has not always performed so profitably. assume that in 2015, an auction house sold a statute at auction for a price of $10,479,500. unfortunately for the previous owner, he had purchased it in 2011 at a price of $12,929,500. what was his annual rate of return on this sculpture
Answer:
-5.12%
Explanation:
The annual rate of return can be determined using the future value formula given below:
FV=PV*(1+r)^n
FV is the value of the sculpture in 2015 which is $10,479,500.
PV is the original value of $12,929,500.
n is the number of years the sculpture was owned which is 4 years
r is the unknown
10,479,500=12,929,500*(1+r)^4
10,479,500/12,929,500=(1+r)^4
0.810510847 =(1+r)^4
divide the index on both sides by 4
(0.810510847 )^(1/4)=1+r
0.948832841 =1+r
r=0.948832841 -1
r=-5.12%
Suppose that a landlord is interested in renting out a two-bedroom apartment for $1000 a month for the next year. The landlord requires rent to be paid at the beginning of the month, at which point he will deposit the rental check into a local savings account. If the annual interest that the tenant can earn on this account is 5% and interest is compounded monthly, how much will the tenant have in his savings account at the end of the year
Answer:
WHAT
Explanation:
_____ do NOT have the authority to make decisions. a. Self-managing teams b. Semi-autonomous work groups c. Employee involvement teams d. Self-designing teams e. Autonomous work groups
Answer:
C. Employee involvement teams
Explanation:
Employee involvement teams do not have the authority to make decisions but They can offer advice and suggestions to management regarding particular issues.
Employee involvement teams has
employees directly involved in helping an organization achieve its vision and meet its objectives by offering their ideas, skills, support and efforts towards solving problems.
On January 1, 2021, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semi annually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850.
Required:
1. Fill in the blanks in the amortization schedule below: (Round your answers to the nearest dollar amount. Enter all amounts as positive values.)
Interest Change in Carrying Value Carrying Value
Date Cash Paid Expense
01/01/2021
06/30/2021
12/31/2021
2. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Answer:
Date Interest Interest Amortization Bond's
payment expense bond premium book value
Jan. 1, 2021 856,850
June 30, 2021 32,000 29,157.50 2,842.50 854,007.50
Dec. 31, 2021 32,000 29,157.50 2,842.50 851,165
Assuming you are using a straight line amortization of bond premium, then the amortization per coupon payment = $56,850 / 20 = $2,842.50
January 1, 2021, bonds are issued
Dr Cash 856,850
Cr Bonds payable 800,000
Cr Premium on bonds payable 56,850
June 30, 2021, first coupon payment
Dr Interest expense 29,157.50
Dr Premium on bonds payable 2,842.50
Cr Cash 32,000
December 31, 2021, second coupon payment
Dr Interest expense 29,157.50
Dr Premium on bonds payable 2,842.50
Cr Cash 32,000
If the company uses the effective interest method, the numbers vary a little:
amortization of bond premium on first coupon payment:
($856,850 x 3.5%) - ($800,000 x 4%) = $29,989.75 - $32,000 = -$2,010.25 ≈ -$2,010
Journal entry to record first coupon payment:
Dr Interest expense 29,990
Dr Premium on bonds payable 2,010
Cr Cash 32,000
amortization of bond premium on second coupon payment:
($854,840 x 3.5%) - ($800,000 x 4%) = $29,919.40 - $32,000 = -$2,080.60 ≈ -$2,081
Journal entry to record second coupon payment:
Dr Interest expense 29,919
Dr Premium on bonds payable 2,081
Cr Cash 32,000
1. Filling in the blanks of the Amortization Schedule is as follows:
Amortization Schedule (Semi-annual):
Date Interest Interest Amortization Bond's
Payment Expense Bond premium Book value
Jan. 1, 2021 $856,850
June 30, 2021 $32,000 $29,990 2,010 $854,840
Dec. 31, 2021 $32,000 $29,919 2,081 $852,759
2. Journal Entries:
January 1, 2021:
Debit Cash $856,850
Credit Bonds Payable $800,000
Credit Bonds premium $56,850
To record the issuance of bonds at a premium.June 30, 2021:
Interest Expense $29,990
Amortization of Bonds Premium $2,010
Cash $32,000
To record the first interest payment and bonds amortization.December 31, 2021:
Interest Expense $29,919
Amortization of Bonds Premium $2,081
Cash $32,000
To record the second interest payment and bonds amortization.Data and Calculations:
Face value of bonds on January 1, 2021 = $800,000
Bonds proceeds = $856,850
Bonds premium = $56,850 ($856,850 - $800,000)
Coupon interest rate = 8%
Maturity period = 10 years
Interest payment = June 30 and December 31
Market interest rate = 7%
June 30, 2021:
Cash payment = $32,000 ($800,000 x 8% x 1/2)
Interest Expense = $29,990 ($856,850 x 7% x 1/2)
Amortization of Premium = $2,010 ($32,000 - $29,990)
Carrying value of bonds = $854,840 ($856,850 - $2,010)
December 31, 2021:
Cash payment = $32,000 ($800,000 x 8% x 1/2)
Interest Expense = $29,919 ($854,840 x 7% x 1/2)
Amortization of Premium = $2,081 ($32,000 - $29,919)
Carrying value of bonds = $852,759 ($854,840 - $2,081)
June 30, 2022:
Cash payment = $32,000 ($800,000 x 8% x 1/2)
Interest Expense = $29,847 ($852,759 x 7% x 1/2)
Amortization of Premium = $2,153 ($32,000 - $29,847)
Carrying value of bonds = $850,606 ($852,759 - $2,153)
Learn more: https://brainly.com/question/13931019
A truck was purchased 3 years ago for $50,000 and can be sold today for $25,000. The operating costs are $9,000 per year, and it is expected to last 4 more years with a $5,000 salvage value. A new truck, which will perform that same service, can be purchased for $55,000, and it will have a life of 10 years with operating costs of $28,000 per year and a $10,000 salvage value. What is the value that should be used as P for the presently owned vehicle in a replacement study
Answer:
P = $25,000
Explanation:
Cost price of truck = $50,000
Present value = $25,000
Operating costs = $9,000 per year
Salvage value = $4,000
Find remaining amount for old truck:
Amount remaining = $50,000 - $25,000 = $25,000
Total amount, since it has a salvage value of $5,000:
Total = $25,00 + $5,000 = $30,000
For new truck:
Cost price = $55,000
Operating costs = $28,000 per year
Salvage value = $10,000
To find the value that should be used as P for the presently owned vehicle in a replacement study:
P = Cost of new truck - Total amount remaining from old truck
P = $55,000 - $30,000
P = $25,000
Therefore, the value that should be used as P for the presently owned vehicle in a replacement study is $25,000
Use the 2012 segment information provided by BMW and Volkswagen to an- swer the following questions: a. Which company is more multinational? b. Which company is more internationally diversified? c. In which region(s) of the world did each company experience the greatest growth from 2011–2012? the greatest decline?
Answer with its Explanation:
a). The total revenue of Volkswagen and BMW in the 2012 segment given shows that the revenue is $192,676 and BMW which is $76,848. As the revenue of Volkswagen is more than the BMW hence Volkswagen is more multinational.
b). The regional sales section shows that the Volkswagen is more internationally recognized as per the regional sales which is substantially higher than the regional sales of BMW. So its crystal clear that Volkswagen is the one which more internationally diversified.
c). The 2012 segment information shows that the BMW greatest growth was in China then in USA and then greatest growth was in Rest of the Europe and the greatest decline was in Rest of the America.
For Volkswagen, the greatest growth was in North America then in Asia and then in South America. The greatest decline wasn't seen in the segment information but lowest increase was seen in Germany and then in the European countries.
The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 65,000 $ 55,000 $ 96,000 Cost of goods sold 35,000 26,000 65,000 Depreciation expense 10,000 2,000 26,000 Salaries and wages expense 5,000 13,000 8,000 Net income (loss) 15,000 14,000 (3,000) Accounts receivable increase (decrease) (1,000) 4,000 3,000 Inventory increase (decrease) 2,000 0 (3,000) Accounts payable increase (decrease) 0 2,500 (1,000) Salaries and wages payable increase (decrease) 1,500 (2,000) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities $ 0 $ 0 $ 0
Answer:
Case A Case B Case C
Cash Collected from Customers $66,000 $51,000 $93,000
Cash Payments to Suppliers ($37,000) ($23,500) ($63,000)
Cash Payments for Salaries and Wages ($3,500) ($15,000) ($7,000)
Net Cash Provided by Operating Activities $25,500 $12,500 $23,000
Explanation:
Case A Case B Case C
Sales revenue 65,000 55,000 96,000
Cost of goods sold 35,000 26,000 65,000
Depreciation expense 10,000 2,000 26,000
Salaries and wages expense 5,000 13,000 8,000
Net income (loss) 15,000 14,000 (3,000)
Accounts receivable increase (decrease) (1,000) 4,000 3,000
Inventory increase (decrease) 2,000 0 (3,000)
Accounts payable increase (decrease) 0 2,500 (1,000)
Salaries and wages payable increase
(decrease) 1,500 (2,000) 1,000
Cash Collected from Customers = Sales revenue - Accounts receivable increase (decrease)
Cash Payments to Suppliers = Cost of goods sold + Inventory increase (decrease) + Accounts payable increase (decrease)
Cash Payments for Salaries and Wages = Salaries and wages expense - Salaries and wages payable increase
(decrease)
The effect is A. more likely if inflation is unanticipated because workers would not seek higher nominal wages. B. more likely if inflation is unanticipated because workers would seek higher nominal wages. C. less likely if inflation is unanticipated because workers would not seek higher nominal wages. D. less likely if inflation is unanticipated because workers would seek higher nominal wages.
Answer:
more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
Here is the full question:
The effect of the sudden unanticipated spurt of inflation:
A. less likely if inflation is unanticipated because workers would not seek higher nominal wages.
B. less likely if inflation is unanticipated because workers would seek higher nominal wages.
C. more likely if inflation is unanticipated because workers would seek higher nominal wages.
D. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Inflation is a presistent rise in general price level.
Workers compensate for expected inflation by asking for an increase in nominal wages.
Nominal wages = real wages + inflation
If there's an unanticipated rise in inflation, workers would be at a disadvantage because their wages would most likely not reflect this unexpected rise in inflation.
I hope my answer helps you
Answer: A. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
An Unanticipated Spurt in Inflation could lead to rapid Economic growth and this effect is more likely if it was unanticipated because workers would not seek higher nominal wages.
This is because if the workers do not expect prices to rise and hence do not negotiate better wages, the cost of Production for producers will remain the same even though profitability has increased due to the higher prices.
The producers will therefore produce more goods to take advantage of the situation which will further aid Economic growth.
Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis team is busy comparing the benefits of increased wood production to the costs of deforestation and resulting environmental conditions. The company is using the _____ approach to make this ethical decision.
Answer:
Jaxon Furnishings Company Vs Logging Opportunities in Alaska
Comparison of the benefits of increased wood production to the costs of deforestation:
The company is using the __environmental sustainability___ approach to make this ethical decision.
Explanation:
According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."
An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done. Short-termism selfishly considers the immediate gains from a transaction. It lacks a futuristic appetite for the good of future generations.
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $115 million, a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $100 million, a coupon rate of 6 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 8 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
Answer:
Book value weight of equity is 0.2007
Book value weight of debt is 0.7993
Market value weight of equity is 0.6883
Market value weight of debt is 0.3117
Explanation:
The book value of the two bonds=$115 million+$100 million=$215 million
The book value of equity =6 million *$9=$54 million
weight of debt=$215/($215+$54)= 0.7993
weight of equity=$54/($215+$54)= 0.2007
Market value approach:
market value of equity=6 million*$78=$468 million
market of the first bond=$115 million*93%=$106.95 million
market value of the second bond=$100 million*105%=$105 million
total market value of bonds=$106.95 million+$105 million=$ 211.95 million
weight of debt=$211.95/($211.95+$468 )= 0.3117
weight of equity=$468/($211.95+$468 )= 0.6883
The systematic process of selecting, supporting, and managing a firm's collection of projects is called: Profile management. Heavyweight project management. Project portfolio management. Matrix project organization.
Answer:
Project portfolio management
Explanation:
Project portfolio management refers to managing the portfolios of the project i,e used by the project managers and the management who manages the project.
This is useful to analyze the risk and return in each project
Moreover, it is a process of choosing, supporting and managing the collection of firm projects in a systematic way
Hence, the third option is correct
Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals? Group of answer choices functional planning system annual HR benchmarks high performance work system HR Scorecard
Answer:
HR scorecard
Explanation:
This is all done within a company using an HR scorecard. HR scorecards are used by the human resources department in order to manage individual employee performance as well as making sure all the employees are aligned with the firm's current objective and strategic goals. These scorecards give managers the ability to assign financial and non-financial goals, monitor and assess performances, and even make necessary changes both quickly and effectively.
The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is Group of answer choices
Answer:
Supplies expense to be recorded = $2,850
Explanation:
Beginning account balance = $1,200
debit during the year = $2,300. This means that a transaction of $2,300 was used for supply purchase during the year
balance on hand = $650
difference between beginning and ending inventory = 1200 - 650 = $550
This means that an expense of $550 was carried out during the year.
Therefore, total expense during year = 550 + purchase expense
= 550 + 2300 = $2,580
Alternatively, the supply expense reported can be calculated with the formula:
Supplies expense = beginning inventory + supplies purchased - ending inventory
Supplies expense = 1200 + 2300 - 650 = $2,850
Based on the supplies opening balance, the supplies purchased and other details, the supplies expense must be $2,850
The supplies expense can be calculated as:
= Beginning balance + Supplies purchased - Closing balance
Solving would give:
= 1,200 + 2,300 - 650
= $2,850
In conclusion, the supplies expense in the income statement will be $2,850
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Your friend, Jonathon Fain, is an engineering major with an entrepreneurial spirit. He wants to start his own corporation and needs your accounting expertise. He has no idea what the following definitions mean:
1. Authorized stock.
2. Issued stock.
3. Outstanding stock.
4. Preferred stock.
5. Treasury stock.
Required:
Write a note to Jonathon carefully explaining what each term means and how they are different from each other.
Answer:
Please find the detailed explanation below.
Explanation:
1. Authorized stock:
This is the total(maximum) number of shares a corporation can issue. This can be found in its articles of incorporation or memorandum of association.
2. Issued stock:. This is the summation of all company's shares that have been sold and are held by shareholders.
3. Outstanding stock:
Outstanding stock or shares are all shares of a corporation that have been authorized, issued and purchased by shareholders and are held by them.
4. Preferred stock:
This share is an hybrid stock i.e it has a feature of both the equity and debt in it. Holders of this shares are entitled to fixed dividend payment and are usually paid before common shareholders if the company liquidates.
5. Treasury stock.:
Treasury shares are the shares that are repurchased by the corporation issuing them and thereby, reducing the total number of outstanding shares.
On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 1 Sales $9,600,000.00 2 Variable cost of goods sold: 3 Variable cost of goods manufactured $5,376,000.00 4 Inventory, December 31 (336,000.00) 5 Total variable cost of goods sold 5,040,000.00 6 Manufacturing margin $4,560,000.00 7 Total variable selling and administrative expenses 1,150,000.00 8 Contribution margin $3,410,000.00 9 Fixed costs: 10 Fixed manufacturing costs $1,664,000.00 11 Fixed selling and administrative expenses 890,000.00 12 Total fixed costs 2,554,000.00 13 Income from operations $856,000.00 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Answer:
Results are below.
Explanation:
Giving the following information:
Production= 25,600 units
Units sold= 24,000
Variable cost of goods sold= $5,376,000
Fixed manufacturing costs= $1,664,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Variable costing method:
Unitary product cost= 5,376,000/25,600= $210
Absorption costing:
Unitary product cost= 210 + (1,664,000/25,600)= $275
Bertrand Inc. performed services for clients in the amount of $1,600 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? Multiple Choice Debit Accounts Receivable $1,600; credit Cash $1,600 Debit Cash $1,600; credit Accounts Receivable $1,600 Debit Accounts Receivable $1,600; credit Fees Income $1,600 Debit Fees Income $1,600; credit Cash $1,600
Answer:
Accounts Receivable $1,600; credit Cash $1,600
Explanation:
According to the given situation, the Journal entry is shown below:-
Accounts Receivable Dr, $1,600
To Cash $1,600
(Being accounts receivable is recorded)
To record the accounts receivable we debited the accounts receivable and we credited the cash to correct the error.
The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Kate purchases stock in Pherk, a pharmaceutical company.
Hubert purchases a new condominium in Houston.
Clancy purchases a certificate of deposit at his bank.
Eileen borrows money to build a new lab for her engineering firm."
Answer:
Kate purchases stock in Pherk, a pharmaceutical company.
SAVINGSHubert purchases a new condominium in Houston.
INVESTMENTClancy purchases a certificate of deposit at his bank.
SAVINGSEileen borrows money to build a new lab for her engineering firm.
INVESTMENTIn macroeconomics, investment refers to the goods that we purchase not to be consumed right away, but instead will be used to produce more goods or create wealth in the future. E.g. purchase of equipment, new homes by private consumers, additional inventories, etc.
Savings refers to the money that households have left after paying all their taxes, debts, obligations and consumption expenses. E.g. savings in banks
The money supply represents the amount of money the Federal Reserve Bank makes available for people to buy goods a
True or false
Answer:
True
Explanation:
The federal reserve ensures that the bank has enough money by the end of the night in case anyone needs money so that the market crash problem in the 1920s won’t happen again
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $18,000 of cash and land with an FMV of $63,000. Her basis in the land is $28,000. Andrew contributes equipment with an FMV of $20,000 and a building with an FMV of $41,000. His basis in the equipment is $16,000, and his basis in the building is $28,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer:
$0
Explanation:
Given that
Sue contributed amount = $18,000
FMV of land = $63,000
Basis in land = $28,000
Andrew contributed amount = $20,000
FMV of Building = $41,000
Basis in equipment = $16,000
Basis in building = $28,000
Based on the above information, the gain that would be recognized is $0 as Partnerships recognize no gain on receiving contributed valued property. At the disposal of the asset, the constructed-in benefit or constructed-in loss will be revealed. For this, the partnership basis property i.e being acquired should be based on a carryover basis.