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.
Manufacturing overhead for the month was underapplied by $6,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:
Work In Process Finished Goods Cost of Goods Sold Total
Direct materials $10,670 $12,000 $81,120 $103,790
Direct labor 11,630 15,000 101,400 128,030
Manufacturing
overhead applied 9,680 9,680 68,640 88,000
Total $31,980 $36,680 $251,160 $319,820
Manufacturing overhead for the month was underapplied by $6,000.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:
a. credit to Work in Process of $31,980.
b. debit to Work in Process of $660.
c. credit to Work in Process of $660.
d. debit to Work in Process of $31,980.
Answer:
b. debit to Work in Process of $660.
Explanation:
Particulars Work in Finished Cost of Goods Sold Total
Process Goods
Manufacturing
overhead
applied during
the month 9680 9680 68640 88000
Percentage of total 11.0% 11.0% 78.0% 100.0%
Allocation of under-applied
manufacturing overhead 660 660 4680 6000
After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you are asked to estimate what would happen to the sales of Ford Mustangs as a result of a change in (i) the price of a Chevrolet Camaro, (ii) the price of gasoline, and (iii) consumer incomes. You are given the following elasticities:
price elasticity Of demand for Ford Mustangs= -2.5
Cross-price elasticity between Ford Mustangs and Camaros =1.5
Cross-price elasticity between Ford Mustangs and gasoline= -0.80
Income elasticity of demand for Ford Mustangs= 3.00
a. Suppose the price Of a Camaro falls by 10%. With all else being equal, sales of Ford Mustangs would______ by_______%
b. If the price of gasoline increases by 20%, the quantity of Ford Mustangs would _________by_______%
Answer:
a. Decrease by 15%
b. decrease by 16%
Explanation:
a. As we know that
Camaro and ford mustangs would be considered as a substitute goods as the cross price elasticity of demand comes in positive so in the case when the price of camaro decrease so the quantity of Mustang would also decreased by 1.5 ×10% = 15%
b. As we know that Gasoline and mustang would be considered as complementary goods so if the price of gasoline would increase by 20% so the quantity of mustang be decreased by 0.80 × 20% = 16%
A refrigerator costs $800 on an installment plan that requires a down payment of $140 and monthly payments for 12 months. What are the monthly payments of the plan?
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
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.
Sorter Company purchased equipment for $330,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of $33,000 . Required: Compute the depreciation expense for 2019 under each of the following methods: Straight-line: $ fill in the blank 1 Sum-of-the-years'-digits: $ fill in the blank 2 Double-declining-balance: $
Answer:
1. Depreciation expense for 2019(Straight-line)= (Cost of the assets - Salvage value) / life of the assets
= ($330000 - $33000)/8
= $37,125
2. Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8 = 36
Depreciation Expense for 2019(Sum-of-the-years'-digits method)
= ($330000 - $33000)*8/36
= $66,000
3. Double-declining-balance depreciation rate = (100/8 years)*2 = 25%
Depreciation Expense for 2019 = 330000*25% = $82,500
Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 13.80%. Assuming that both investments have equal risk and Ericâs investment time horizon is flexible, which of the following investment options will exhibit the lower price?
a. An investment that matures in four years
b. An investment that matures in five years
Answer:
The second option which 5 years to maturity exhibited a lower price of
$523.95
Explanation:
In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:
a.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=4 years
PV=$1000/(1+13.80%)^4
PV=$596.25
b.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=5 years
PV=$1000/(1+13.80%)^5
PV= $523.95
By convention, a swap buyer on an interest rate swap agrees to act as the dealer in the swap agreement. hold both principal and interest to contract maturity. periodically pay a fixed rate of interest and receive a floating rate of interest. back both sides of the swap agreement. periodically pay a floating rate of interest and receive a fixed rate of interest.
Answer:
periodically pay a fixed rate of interest and receive a floating rate of interest.
Explanation:
The interest rate (rate of return) can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the interest rate which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
By convention, a swap buyer on an interest rate swap agrees to periodically pay a fixed rate of interest and receive a floating rate of interest.
Match each of the following terms A through F with the appropriate definitions 1 through 6.
A. Maker of a note
B. Interest
C. Promissory note
D. Payee of a note
E. Principal of a note
F. Dishonoring a note _____
1. A written promise to pay a specified amount either on demand or at a definite future date. _____
2. The cost of borrowing money for a borrower, alternatively the profit from, lending money for a lender. _____
3. One who signs a note and promises to pay it at maturity. _____
4. The one to whom the promissory note is made payable. _____
5. Refers to a note maker's inability or refusal to pay the note at maturity. _____
6. The amount that the signer of a note agrees to pay back when the note matures, not including interest. Defining promissory notes.
Solution :
A. Maker of a note: 3. It is the person who signs the note and promises to pay.
The maker puts his signature and promises to pay the bearer the amount of the value of the note.
B. Interest: 2. It is the cost of borrowing money and profit for lender.
It is the extra money that the borrower pays to the lender. It is like an income to the lender.
C. Promissory note: 1. It is a promise to pay the signed sum.
It is a note that promises to pay the amount of the value.
D. Payee of a note: 5. It is the person to which the note is payable.
Payee is the individual who is the owner of the note.
E. Principal of a note: E. It is the amount signed to be paid back excluding interest.
It is the basic amount signed to be paid to the bearer.
F. Dishonoring a note: 5. It is inability to pay the signed sum.
Dishonoring is refusal to pay or the inability to pay the value for the signed amount.
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?
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
Which phrase best completes the list?
Characteristics of the U.S. Economy
Free market with some government regulation
Competition between businesses encouraged
A. No centralized banking system
B. Banks owned mostly by the government
o o
Ο Ο
C. Tax rates set by private companies
D. Individuals and businesses given economic freedom
Answer:
d
Explanation:
I took the quiz
Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140 each. Direct materials cost $22 per unit, and direct labor costs $15 per unit. Manufacturing overhead is applied at a rate of 280% of direct labor cost. Nonmanufacturing costs are $34 per unit. What is the gross profit margin for the cat condos
Answer:
43.57 %
Explanation:
The computation of the gross margin for the cat condos is given below:
Total Manufacturing Cost per unit is
= Direct materials + Direct labor + Manufacturing overhead
= $22 + $15 + ( 280% of $15)
= $79
Now
Gross Profit is
= Selling price per unit - Total Manufacturing Cost per unit
= $140 - $79
= $61
And finally
Gross Profit Margin is
= (Gross Profit ÷ Selling Price ) × 100
= ($61 ÷ $140) × 100
= 43.57 %
A researcher wants to understand how customers' social interaction with online retailers impact their loyalty to online retailers. This researcher understands that extraneous variables such as gender and age could influence the result, but these variables cannot be eliminated and their effects cannot be canceled out in this case. In order to deal with extraneous variables, which of the following techniques this researcher can choose?
a. Randomization
b. Inclusion
c. Statistical Control
d. Elimination
e. Induction
f. Manipulation
Answer:
Option A, Randomization
Explanation:
Extraneous variables can be taken care of through randomization or random sampling. In random sampling, the extraneous variables are not deleted instead their equal distribution is ensured. Random sampling increases the external validity and generalize the population.
Hence, option A is correct
If Cho's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct_____________ using the data provided. However, if Cho's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that_________ would be more appropriate.
Answer:
supply curve
supply schedule
Explanation:
From the question, we are given an instance that If Cho's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, i would advise your coworker to construct supply curve using the data provided. However, if Cho's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that supply schedule would be more appropriate.
The supply curve can be regarded as
graphic representation that gives the
correlation between quantity supplied and cost of a good for a particular period of time.the left vertical axis con rain the price, the horizontal axis contains the quantity supplied .
Supply schedule can be regarded as table that gives the relationship between quantity supplied and the
price of a good
An economic profit includes implicit costs and accounting profit does not. A distinction between them is important because an accounting profit is a relative amount of money. Some amount of accounting profit may or may not be a sufficient amount of profit to keep an entrepreneur in:________
Answer:
his/ her present line of business
Explanation:
Economic profit is accounting profit less implicit cost
Accounting cost is total revenue less explicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Explicit cost is the actual cost incurred in carrying out an activity.
In determining profit, it is essential to consider implicit cost to determine if the business is earning economic profit
On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $400,000 zero-interest-bearing note payable, promising 5 equal annual installments of $80,000, with the first payment due December 31, 2017. The prevailing rate of interest for a note of this type is 8%.
Required:
What is the carrying value of the notes payable at 12/31/14, after the first payment is made (assuming that the effective-interest method is used)?
Answer:
Leary Company
The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:
= $320,000
Explanation:
a) Data and Calculations:
0% Note payable = $400,000
Payment period = 5
Annual installmental payments = $80,000
Prevailing rate of interest for similar note = 8%
Schedule
Period PV PMT Interest FV
1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09
2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66
3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71
4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44
5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00
Total $400,000.00 $-208,349.93
Carrying value
Ending value = $400,000
Interest expense -47,332.01
Cash repayment -32,667.99
Carrying value = $320,000
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much other overhead is assigned to the order?
a. $9,960.
b. $8,000.
c. $11,108.
d. $45,992.
e. $19,200.
Answer:
See below
Explanation:
Given the above information
Payroll = $432,000 ÷ 4,800 = $90 per hour
Setup = $120,000 / 120 = $1,000 per setup
Material handling barrel = $104,400 / 8,700 = $11.95 per barrel
Quality control inspection = $264,000 / 1,100 = $240 per inspection
Overhead = $144,000 / 12,000 = $12 per machine hour
Details of the current product requirement
8 setup = 8 × $1,000 = $8,000
606 barrels = 606 × $11.95 = $7,242
80 inspections = 80 × $240 = $19,200
830 machine hours = 830 × $12 = $9,960
336 labor hours = 336 × $90 = $30,240
Total overhead assigned to order = $74,642
a. Performed $29,400 of services on account.
b. Collected $17,500 cash on accounts receivable.
c. Paid $4,400 cash in advance for an insurance policy.
d. Paid $570 on accounts payable.
e. Recorded the adjusting entry to recognize $3,700 of insurance expense.
f. Recorded the adjusting entry to recognize $300 accrued interest revenue.
g. Received $9,500 cash for services to be performed at a later date.
h. Purchased land for $1,560 cash.
i. Purchased supplies for $1,800 cash.
Required:
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction Account Titles Debit Credit
a Accounts receivable 29,400
Service revenue 29,400
Show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.)
Answer:
S/n Account Titles Debit$ Credit$
a. Accounts receivable 29400
Service revenue 29400
b. Cash 17500
Accounts receivable 17500
c. Prepaid insurance 4400
Cash 4400
d. Accounts payable 570
Cash 570
e. Insurance expense 3700
Prepaid insurance 3700
f. Interest receivable 300
Interest revenue 300
g. Cash 9500
Unearned service revenue 9500
h. Land 1560
Cash 1560
i. Supplies 1800
Cash 1800
Asset Liabilities Equity Revenue Expense Net income S.Cash Flow
a. 29400 29400 29400 29400 NA
b. 17500 OA
-17500
c. 4400 OA
-4400
d. -570 -570 OA
e. -3700 -3700 3700 -3700 NA
f. 300 300 300 300 NA
g. 9500 9500 OA
h. 1560 IA
-1560
i. 1800 OA
-1800
Problem 4-8 Sales and Growth [LO2] The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 42,950 Current assets $ 17,580 Long-term debt $ 37,070 Costs 35,550 Fixed assets 68,350 Equity 48,860 Taxable income $ 7,400 Total $ 85,930 Total $ 85,930 Taxes (21%) 1,554 Net income $ 5,846 Assets and costs are proportional to sales. The company maintains a constant 35 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued
Answer:
$3,621.96
Explanation:
ROE = Net income/Equity * 100
ROE = 5846/48860*100
ROE = 11.9648%
Dividend payout ratio = 35%
Retention Ratio = 1 - 35% = 65%
Sustainable growth rate = (ROE*b)/(1-ROE*b)
Sustainable growth rate = (11.9648%*0.65)/(1- (11.9648%*0.65%))
Sustainable growth rate = 8.43%
Therefore, Maximum Dollar Increase in sales = Sales * Sustainable growth rate = 42,950 * 8.43% = $3,621.96
A common error made when solving a future value of an annuity problem is: Multiple Choice Using factor tables to help solve the problem. Dividing the annual deposit by the number of years before calculating the problem. Using a financial calculator to help solve the problem. Multiplying the number of years and the interest rate before calculating the problem. Multiplying the annual deposit and the number of years before calculating the problem.
Answer:
Multiplying the annual deposit and the number of years before calculating the problem.
Explanation:
An annuity can be defined as a sequence of payment that is typically made at equal intervals i.e at specific period of time.
Basically, annuity can be calculated using the compound interest formula. It is given by the mathematical expression;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Additionally, the time period between each payment is called payment period.
The term of an annuity refers to the time from the beginning of the first payment made by an individual to the end of the last payment period.
A common error made when solving a future value of an annuity problem is multiplying the annual deposit and the number of years before calculating the problem.
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
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 customerspreparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation. If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:
On January 2, 2021, Miller Properties paid $28 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2021.
The carrying amount of Marlon's net assets was $117 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $36 million above cost. The remaining amortization period for the patent is 10 years.
Marlon reported earnings of $54 million and paid dividends of $6 million during 2021. On December 31, 2021, Marlon's common stock was trading on the NYSE at $27.50 per share.
Required: 2. Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment to be reported in its 2021. (Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal places, (i.e., 5,500,000 should be entered as 5.5).):
a. Income statement million
b. Balance sheet million
c. Statement of cash flows
Operating cash flow million
Investing cash flow million
Answer:
A. Income statement $8.4 million
B. Balance sheet million $35.4 million
C. Operating cash flow million $1 million
Investing cash flow million=$28 million
Explanation:
a. Calculation for Income statement million
Using this formula
Income statement=Investment revenue -Patent amortization adjustment
Let plug in the formula
Income statement= ($54 million × 1/6)-([$36 million] × 1/6]÷10 years)
Income statement=$ 9.0-$0.6
Income statement=$8.4 million
Therefore Income statement million will be $8.4 million
b. Preparation of the Balance sheet million
Cost $28 million
Add Investment revenue $9.0 million
($54 million × 1/6)
Less Dividend ($1 million)
($6 million × 1/6)
Less Patent amortization adjustment ($0.6 million)
([$36 million] × 1/6]÷10 years)
Balance sheet million $35.4 million
($28 million+$9.0 million-$1 million-$0.6 million)
Therefore Balance sheet million will be $35.4 million
c. Preparation of the Statement of cash flows
Operating cash flow million=($6 million × 1/6)
Operating cash flow million= $1 million
Investing cash flow million=$28 million
Therefore Operating cash flow million will be $1 million while the Investing cash flow million will be $28 million.
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.
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
1. A manager uses the following equation to predict monthly receipts: Y=450+10t time in weeks and y = receipts.) What is the forecast for July 14th if t=4 is the fourth week in January and t = 6 is February 14th of the same year (assume there are 4 weeks in each month)?
a. 690
b. 710
c. 730
d. 750
2. A major reason that decision making is often not such a rational process is that there are: Suppose we have H0:µ1= µ2 versus HA: µ1 ≠ µ2, with level of significance of α =.05 and critical values of zα/2 = ± 1.96, and the computed Test Statistics value of Z = -1.07. What is our decision?
Answer:
1. 690
2. Do not reject the null hypothesis.
Explanation:
1. Month t
At the end of Feb 6
March 4
April 4
May 4
June 2
14th of July 2
Total 24
Therefore on 14th July, t = 24
Forecast: Y = 450+10t = 450 + 10*24 = 450+240 = 690
2. Options are "a. Reject the null hypothesis. b. Do not reject the null hypothesis. c. Take a larger sample. d. Reserve judgment"
In general, if test statistic is more extreme than the critical values at given level of significance then we reject the null hypothesis otherwise we do not reject the null hypothesis.
Here, test statistic for the given two tailed test is Z = -1.07 and critical value at level of significance α = 0.5 is ± 1.96 . Since -1.96<Z<1.96, we can say that we do not reject Null Hypothesis as the test statistic is not extreme than the critical value at given level of significance.
Help Me! I cant do this question and I am so confused!
Answer:
3,000
Explanation:
Divide 24,000 by 8
Answer:
It is B
Explanation:
3,000
Diaz Company owns a milling machine that cost $126,500 and has accumulated depreciation of $92,700. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $15,900 cash. Diaz sold the machine for $33,800 cash. Diaz sold the machine for $41,200 cash.
Answer:
A. Jan 03
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on disposal of milling machine $33,800
Cr Milling machine $126,500
B .Jan 03
Dr Cash $15,900
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on sale of milling machine $17,900
Cr Milling machine $126,500
C. Jan 03
Dr Cash $33,800
Dr Accumulated depreciation—Milling machine $92,700
Cr Milling machine $126,500
Explanation:
Preparation of journal entries
A. Jan 03
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on disposal of milling machine $33,800
($126,500-$92,700)
Cr Milling machine $126,500
B .Jan 03
Dr Cash $15,900
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on sale of milling machine $17,900
[126,500-($15,900+$92,700)
Cr Milling machine $126,500
C. Jan 03
Dr Cash $33,800
Dr Accumulated depreciation—Milling machine $92,700
Cr Milling machine $126,500
On November 1, Arvelo Corporation had $34,500 of raw materials on hand. During the month, the company purchased an additional $75,500 of raw materials. During November, $90,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,500. Prepare journal entries to record these events. Use those journal entries to answer the following questions:
Answer:
The credits to Raw material account for the month of November total is $90,000
Explanation:
Missing word "The credits to the Raw Materials account for the month of November total:"
Journal entry
Date Accounts title and Explanation Debit Credit
Work in process inventory $86,500
(90,000 - 3,500)
Manufacturing overheads $3,500
Raw material inventory $90,000
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Costs incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year. Complete the contractor's long-term construction contract using the information above. Write the appropriate amounts in the associated cells. Indicate losses by using a leading minus (-) sign. Round all amounts to the nearest dollar. If no entry is necessary, enter a zero (0).
Revenue Gross profit (loss)
Year 1
Year 2
Answer:
Revenue Costs Incurred Gross profit (loss)
Year 1 $768,000 $720,000 $48,000
Year 2 $1,248,000 $1,170,000 78,000
Year 3 $1,184,000 $1,110,000 74,000
Total $3,200,000 $3,000,000 $200,000
Explanation:
a) Data and Calculations:
Construction contract = $3.2 million
Completion period = 3 years
Estimated cost of construction = $2.4 million
Construction costs:
Year 1 Year 2 Year 3 Total Costs
Costs incurred $720,000 $1,170,000 $1,110,000 $3 million
% of annual costs to total 24% 39% 37% 100%
Expected future costs $1,680,000 $810,000 $0
Annual Revenue $768,000 $1,248,000 $1,184,000 $3.2 million
Revenue Calculation:
Costs incurred/Total costs * $3,200,000
Revenue Costs Incurred Gross profit (loss)
Year 1 $768,000 $720,000 $48,000
Year 2 $1,248,000 $1,170,000 78,000
Year 3 $1,184,000 $1,110,000 74,000
Total $3,200,000 $3,000,000 $200,000
b) The revenue for each year is based on the costs incurred, as determined by the contractor.
Tammy, a resident of Virginia, is considering purchasing a $100,000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. She is aware that State of Virginia bonds of comparable risk are yielding 4.5%. However, the Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct any state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.
The question is incomplete. The complete question is :
Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. Tammy is aware that State of Virginia bonds of comparable risk are yielding 4.5%. Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct all state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.If required, round your computations and answers to the nearest dollar. Determine the after tax income from each bond. Virginia Bond: $ 4, 600 North Carolina Bond: $ 4, 451 Which of the two options will provide the greater after-tax return to Tammy? Virginia bond
Solution :
Assuming that the bond amount is $100,000.
After the tax income from the Virginia bond is given by:
= 100,000 x 4.5%
= $ 4500
After the income tax from the North Carolina bond :
= (100,000 x 4.6%) x (1-5%) + (100,000 x 4.6% x 5% x 0.35)
= $ 4451
Therefore the Virginia bond will give an after tax higher return.
The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive customer loyalty, revenue growth, and higher profits.
a. True
b. False