Answer:
No
Explanation:
It is mentioned in the question that the boss who is a big supporter of the president fired Jason, who works as a waiter in the restaurant
So based on the given situation, the first amendment is applied for the government employees as it become the first priority for everyone, not for the private employees
Hence, the answer is no
Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
2,400 ounces of grape concentrate at $0.01 per ounce
54 pounds of granulated sugar at $0.50 per pound
60 lemons at $0.80 each
100 yeast tablets at $0.21 each
100 nutrient tablets at $0.14 each
3,700 ounces of water at $0.005 per ounce
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
Compute the standard cost of the ingredients for one gallon of wine.
Answer:
total $3.36
Explanation:
required for producing 50 gallons of wine:
2,400 ounces of grape concentrate at $0.01 per ounce = $24 / 50 = $0.48 x 1.04 = $0.50
54 pounds of granulated sugar at $0.50 per pound = $27 / 50 = $0.54 x 1.1 = $0.59
60 lemons at $0.80 each = $48 / 50 = $0.96 x 1.25 = $1.20
100 yeast tablets at $0.21 each = $21 / 50 = $0.42
100 nutrient tablets at $0.14 each = $14 / 50 = $0.28
3,700 ounces of water at $0.005 per ounce = $18.50 / 50 = $0.37
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
total standard cost per gallon:
grape concentrate = $0.50granulated sugar = $0.59lemons = $1.20yeast tablets = $0.42nutrient tablets = $0.28water = $0.37total $3.36Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $60,000 Sales tax 5,250 Shipment of machine 850 Insurance on the machine for the first year 550 Installation of machine 1,700The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine.
Answer:
Debit Equipment 67,800
Debit Prepaid Insurance 550
Credit Cash 3,100
Credit Accounts Payable 65,250
Explanation:
Orion Flour Mills Record of expenditure for the new machine.
Purchase price$60,000
Sales tax 5,250
Shipping 850
Installation 1,700
Total cost$ 67,800
Theb annual insurance of 550 was not included.
Therefore each of the expenditures which is been listed above are important to help bring the machine to its conditions as well as the location for use.
Since Orion will initially report the $550 of the insurance amount as the prepaid insurance and expense over the first year of coverage will have to:
Debit Equipment 67,800
Debit Prepaid Insurance 550
Credit Cash 3,100
Credit Accounts Payable 65,250
( To record Purchase of equipment)
Calculation for Cash
Shipment of machine 850
Insurance on the machine for the first year 550
Installation of machine 1,700
Total =3,100
An entrepreneur is investigating starting a company that provides tax advice to small companies. In order to position his company differently from the existing competitors, the entrepreneur must:
Answer:
b. provide tax advice either in a different manner or provide a different kind of tax service than competitors.
Explanation:
When the company's objective is to position itself in the market differently from competitors, the focus should be on offering a product or service that has different attributes than the competitor.
A differentiated product or service can be defined by presenting innovative features or functions in the market, which generates the desire for the purchase in the customer.
Investing in different attributes for a good or service generates value for the brand and helps to achieve strategic advantages that competitors are unable to achieve.
Therefore, the most suitable alternative for this issue is the letter b, because to position your company differently from existing competitors, the entrepreneur must provide tax advice differently or provide a different type of tax service than competitors.
Oriole Company had sales of $392000, variable costs of $192000, and direct fixed costs totaling $97000. The company’s operating assets total $809000, and its required return is 10%. How much is the residual income?
Answer:
Residual Income = $ 22,100
Explanation:
Residual income is the excess of the controllable profit over the opportunity cost of capital invested.
It is computed as follows:
Residual income = Controllable profit - (cost of capital× operating assets)
Controllable profit = 392,000 - 192,000- 97,000 = $103,000
Residual income = 103,000 - (10%× 809,000)= 22,100
Residual Income = $ 22,100
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:
Answer:
Estimated Over head applied = ($112500 / $125000) *100 = 90% of Direct labor cost.
Thus, Actual Over Head applied = 90% of $120000 = $108000
Moreover, Actual Over Head incurred = $107400
Therefore, Overhead Over-applied is to be applied as the Actual Overhead applied is higher than the Actual Overhead Incurred
Overhead Over-applied = $108000 - $107400
Overhead Over-applied = $600
The entry to close the over-applied overhead at year-end would include:
i. Over-head A/c will be debited for $600
ii. Cost of goods sold will to be credited for $600
If a purchase is a new buy for a manufacturer, the seller should be prepared to act as a consultant to the buyer, expect a long time for a buying decision to be reached, and:__________
a. expect to have to do some favors for the decision makers.
b. anticipate a great deal of conflict.
c. accommodate unlimited specification change before the buy is completed.
d. work with technical personnel.
e. avoid making concessions or compromises.
Answer:
d. work with technical personnel.
Explanation:
In the given scenario a manufacturer is making a new buy from a seller. This is a risky investment for the buyer because of uncertainty on how the product will perform and lack of technical know-how in operating the product.
The buyer therefore will require the seller to act as a consultant in case of issues arising from the use of the product, buying decision will take a long time because the buyer will want a good fit for their operations, and more work will be done with technical personnel to train them on how to use the product
Grayille Financial Consultants, Inc. is planning to reduce the number of days it allows its clients to pay their bills from 45 days to 30 days. Grayille believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, this new collection policy should be expected to (circle all that apply - if the correct answer is a and b and you circle any letter(s) other than a and b, you will receive no credit - that is, no partial credit will be awarded for your answer to this question):
Answer: c. Lower the firm's quick ratio.
d. Lower the firm's current ratio.
Explanation:
Reducing the amount of time that clients have to pay will reduce the amount of Account Receivables as clients will no longer have long outstanding due dates. This reduction in Accounts Receivables will be felt by the Quick and Current ratios.
Quick Ratio formula
= [tex]\frac{Current Assets - Inventory}{Current Liabilities}[/tex]
Current Ratio Formula
= [tex]\frac{Current Assets}{Current Liabilties}[/tex]
As is evident from the formulas, Current Assets are integral to both ratios and as Accounts Receivables is a current asset that will be reduced, the current assets will be reduced and by extension both the Current and Quick Ratios will be reduced as well.
Required: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $950 . 1-Dec Paid the premium on a one-year insurance policy, $600 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $7200 cash. 16-Dec Provided service to customers ABC Inc. on account, $5200 . 21-Dec Received $2400 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $4480 . 30-Dec Declared and paid dividend to stockholders $200 .
Answer:
journal entries to record the December transactions
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
The General Journal consists of Entries of Expenses, Capital Expenditures and Receipts and Payments in Cash.
Use the minimax method to find all of the pure-startegy Nash equilibria for the following zero-sum games. Then, check your answer by using the iterated elimination of strictly dominated strategies method.
a.
Left Right
1 4
2 3
b.
Left Middle Right
5 3 2
6 4 3
1 6 2
Sides are:______
a. Up Down
b. Up Middle Down
Answer:
b
Explanation:
i dont really know,can someone explain to mee
Pratt Corp. started the Year 2 accounting period with total assets of $37,000 cash, $15,500 of liabilities, and $12,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $14,550. The bookkeeper reported that Pratt paid cash expenses of $29,500 and paid a $2,700 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $10,000 cash to reduce the liability owed to a bank, and the business acquired $8,500 of additional cash from the issue of common stock. Assume all transactions are cash transactions.Requried:a. Prepare an income statement for the 2018 accounting period.b. Prepare a statement of changes in stockholders’ equity for the 2018 accounting period.c. Prepare a period-end balance sheet for the 2018 accounting period.d. Prepare a statement of cash flows for the 2018 accounting period.
Answer:
a) Revenue = $46,750
b) Stockholder's equity $35,050
c) Net Total Assets = Stockholder's equity = $35,050
d) Net cash generated for the year is $13,050; and Ending cash balance is $50,050
Explanation:
a. Prepare an income statement for the 2018 accounting period
To prepare this, cash revenue is first determined as follows:
Revenue = Retained earning for the year + Expenses + dividend = $46,750
The income statement can now be prepared as follows:
Pratt Corp.
Income statement
For the 2018 accounting period
Particulars $
Revenue 46,750
Expenses (29,500)
Net income 17,250
Dividend paid (2,700)
Retained Earnings for the year 14,550
b. Prepare a statement of changes in stockholder's equity for the 2018 accounting period
Pratt Corp.
Statement of changes in stockholder's equity
For the 2018 accounting period
Particulars $
Issue of common stock 8,500
Beginning retained earnings 12,000
Retained Earnings for the year 14,550
Stockholder's equity 35,050
c. Prepare a period-end balance sheet for the 2018 accounting period
Pratt Corp.
Balance Sheet
For the 2018 accounting period
Particulars $
Total Assets
Ending cash balance 50,050
Total Liability
Liability (15,500)
Net Total Assets 35,050
Financed By:
Issue of common stock 8,500
Beginning retained earnings 12,000
Retained Earnings for the year 14,550
Stockholder's equity 35,050
Note: Since both the Net Total Assets and Stockholder's equity are both equal to $35,050 as normally require, it shows the balance sheet is accrurately prepared.
d. Prepare a statement of cash flows for the 2018 accounting period
Pratt Corp.
Statement of Cash Flows
For the 2018 accounting period
Particulars $ $
Net income 17,250
Cash flow from operating activities 17,250
Changes in Financing Activities:
Decrease in liability (10,000)
Issue of common stock 8,500
Dividend paid (2,700)
Cash flow from financing activities (4,200)
Net cash generated for the year 13,050
Beginning cash balance 37,000
Ending cash balance 50,050
Assume a Cobb-Douglas production function of the form: q equals 10 Upper L Superscript 0.33 Baseline Upper K Superscript 0.75. What type of returns to scaleLOADING... does this production function exhibit?
Answer:
Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.
Explanation:
From the question, we have the following restated equation:
[tex]q=10L^{0.33} K^{0.75}[/tex]
Where q is the output, and L and K are inputs
To determine the types of returns to scale, we increase each of L and K inputs by constant amount c as follows:
[tex]q = 10(cL)^{0.33}(cK)^{0.75}[/tex]
We can now solve as follows;
[tex]q = 10c^{0.33+0.75} L^{0.33}K^{0.75}[/tex]
[tex]q=c^{1.08} L^{0.33} K^{0.75}[/tex]
Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.
If a company uses a predetermined rate for absorbing manufacturing overhead, the volume variance is the: Group of answer choices a. Underapplied or overapplied variable cost element of overhead. b. Underapplied or overapplied fixed cost element of overhead. c. Difference in budgeted costs and actual costs of fixed overhead items. d. Difference in budgeted costs and actual costs of variable overhead items.
Answer: c. Difference in budgeted costs and actual costs of fixed overhead items.
Explanation:
If a company uses a Predetermined rate for Manufacturing Overhead this means that they have budgeted a certain cost of overhead that they believe will be sufficient for production. This is usually possible for fixed overhead items.
The Variance therefore would be the difference between this budgeted figure and the actual figure for the fixed Overhead items.
DasGute, a not-for-profit (NFP) organization located in Frankfurt, Germany, directly solicited CoolSchool, an NFP university located in Westport, CT, to enter into an agreement to establish a branch campus of CoolSchool in Frankfurt called CoolNewSchool. CoolNewSchool is not a separate legal entity and will operate as adegree-granting branch campus of CoolSchool in Frankfurt with the intent to provide students the same level of undergraduate education that it provides to students enrolled at its main campus in Westport. DasGute has entered into similar agreements with other U.S. universities in fulfillment of its mission to develop human resources through highquality education and research in Frankfurt. The boards of directors for both DasGute and CoolSchool require that CoolNewSchool prepare stand-alone financial statements in accordance with U.S. GAAP to demonstrate that revenue and expenses of CoolNewSchool have been generated and incurred inaccordance with the operating budgets described below.Eddie V., the new controller of CoolNewSchool isn’t sure how to account for its formation under U.S. GAAP but has knowledge of NFP accounting principles, specifically whether an agreement should be accounted for as an exchange transaction or a contribution within the stand-alone financial statements.Case FactsResponsibilities of CoolSchoolThe agreement requires that CoolSchool be responsible for the following activities:(1) hiring and terminating of personnel (including the dean, who will function as the CEO of CoolNewSchool) (2) recruiting, admitting, and enrolling students; (3) designing and delivering the academic curriculum; (4) establishing and implementing operational policies and procedures (including compensation for employees and tuition rates for students); and (5) authorizing expenditures once a budget is approved.Responsibilities of DasGuteThe agreement requires that DasGute be responsible to (1) construct, own, furnish, and maintain the site; (2) bear the costs of the joint advisory board; and (3) fund all necessary expenditures for CoolNewSchool, as stipulated by the annual budget.Shared Responsibilities of CoolSchool and DasGuteA nine-member joint advisory board will be established, consisting of three appointed members by CoolSchool, three appointed members by DasGute, and three jointly appointed members. The joint advisory board does not have decision-making authority but will provide guidance on CoolNewSchool’s operations and final approval of the annual budget.Operating BudgetEach year, CoolNewSchool will develop an operating budget that is subject to approval by the joint advisory board. If an agreement is not reached on a proposed budget, the operating budget for the fiscal year in question will be based on the previous year’s budget. Any unresolved issue, whether related to the budget or any other matter, will be settled by arbitration.• Once the annual budget has been approved, CoolSchool has full expenditure authority for CoolNewSchool’s operating expenses. DasGute will reimburseCoolSchool for all expenditures incurred in accordance with the annual budget. In addition, DasGute will pay an annual management fee to CoolSchool.• While CoolSchool is responsible for tuition billing, DasGute is required to fundany shortfall between the tuition rates established for CoolNewSchool and theactual amounts paid by the students, to cover the annual budgeted operatingexpenses.Required:1. Determine whether CoolNewSchool represents an extension of DasGute orCoolSchool by identifying which entity exercises control of CoolNewSchool(analogous to the idea of control if consolidated financial statements wererequired) and from whose perspective (DasGute or CoolSchool) the controllingentity’s agreement should be analyzed as either an exchange transaction or acontribution.2. Does the agreement represent an exchange transaction (and therefore all tuitionamounts should be recorded as "Tuition Revenue") or a contribution (andtherefore the amounts received from DasGute in the form of tuition subsidiesshould be recorded as "Cont?
Answer:
DasGute, a not-for-profit (NFP), Frankfurt / CoolSchool, Westport, CT, and CoolNewSchool, Frankfurt
1. Determination of Control:
DasGute exercises control over CoolNewSchool. CoolSchool is just in a management consultancy position.
It is from DasGute's perspective that the controlling entity's agreement should be analyzed as a contribution transaction. It is not an exchange transaction.
2. Determination of Exchange and Consideration Transactions: In an exchange transaction, there will be consideration for the parties, especially DasGute and CoolSchool. The facts do not support an exchange transaction. The IFAC definition do not support an exchange transaction. The FASB ASC 958-605 rules and FASB ASU 2018-08 update do not support an exchange transaction.
3. Therefore, the amount received from DasGute in the form of tuition subsidies should be recorded as "Contribution Revenue."
Explanation:
a) International Federation of Accountants (IFAC) define exchange transactions, thus: "Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange."
b) The FASB ASC 958-605 provides guidance for contribution and exchange transactions. "The indicators to use to determine whether a contribution should be recorded as a contribution transaction or an exchange transaction are:
1. What is the recipient nonprofit’s intent in soliciting the asset?
a) Soliciting the asset as a contribution – contribution transaction
b) Seeking resources in exchange for specified benefits – exchange transaction
2. What is the resource provider’s expressed intent about the purpose of the asset to be provided by the recipient nonprofit?
a) Provider is making a donation to support the nonprofit’s programs – contribution
b) Provider is transferring resources in exchange for specific benefits – exchange
3. What is the method of delivery by recipient nonprofit to third-party recipients?
a) At the discretion of the recipient nonprofit – contribution
b) Specified by the resource provider – exchange
4. What is the method of determining the amount of the contribution?
a) Resource provider determines amount – contribution
b) Amount contributed equals the value of the assets to be provided by the recipient nonprofit, or the assets’ cost plus markup – exchange
5. Are there penalties assessed if the nonprofit fails to make timely delivery of assets?
a) Recipient nonprofit not penalized for nonperformance – contribution
b) Recipient nonprofit penalized for nonperformance – exchange
6. To whom will the recipient nonprofit deliver the assets?
a) Delivered to individuals or organizations other than the resource provider – contribution
b) Delivered to the resource provider or to individuals or organizations closely connected to the resource provider – exchange"
c) FASB ASU 2018-08 update, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, explains clearly when revenue is exchange versus contribution:
"The first step in determining the accounting is determining who is paying the money and who, if anyone, is getting goods or services from the transaction.
If the nonprofit gets funds from a payor and provides that payor direct, commensurate value in return, that is an exchange transaction. An example would be when you purchase a training class from your membership organization; you are paying the value of what you are receiving.
If the nonprofit gets funds from a payor and no value is paid out to anyone at that time, that is clearly a contribution.
If the nonprofit gets funds from a payor, such as the federal government, with the purpose of the nonprofit providing the goods and services to a third party, the general public or a subsegment thereof, that is also a contribution. When the general public, or someone other than the payor, receives the goods or services, it is a contribution."
Company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, ________ units will need to be produced in the second quarter.
Answer:
509 units
Explanation:
The expected sales in the present quarter is 500 units (for second quarter) and we have 46 units on hand.
We want a reserve of 10% during the next quarter.
The expected sales in next quarter is 550 units so reserve of 10% is
Reserve = 0.10 * 550= 55 units
Balance to produce this quarter= 500 - 46= 454 units
Total to produce= Balance produced + Reserve
Total to produce= 454 + 55= 509 units
ABC Corporation has E & P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. The land is subject to a liability of $55,000 that Paul assumes. Paul has: A
a. Taxable dividend of $15,000.
b. A taxable dividend of $25,000.
c. A taxable dividend of $45,000.
d. A taxable dividend of $70,000.
e. A basis in the machinery of $55,000
Answer: Paul has a taxable dividend of $15,000.
Explanation:
From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.
The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:
= $70,000 - $55,000
= $15,000
Therefore, Paul has a taxable dividend of $15,000.
On November 1. Bahama Cruise Lines borrows $2.6 million and issues a six-month. 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.
Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $2,600,000
To Note payable $2,600,000
(Being the issuance of the note is recorded)
For recording this we debited the cash as it increased the assets and credited the note payable as it also increased the liabilities
2. Interest expense $26,000
To interest payable $26,000
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the note payable as it also increased the liabilities
The computation is shown below:
= $2,600,000 × 6% × 2 months ÷ 12 months
= $26,000
Choose the correct answers :
1. If the demand for product A displays high and postitive cross-price elasticity with respect to the price of product B, then:
a. the demand for product A is likely to have a low price elasticity
b. product A and B are subtitutes
c. products A and B are complements
d. the demand for product B is likely to have a low price elasticity
2. Fast food is believed to be an inferior good. This means that:
a. the quantity of fast food consumed decreases as income increases
b. the income elasticity of demand for fast food is positive
c. The quantity of fast food consumed will always be high
d. fast food is really not quality food
Answer:
b. product A and B are subtitutes
a. the quantity of fast food consumed decreases as income increases
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Cross price elasticity = percentage change in quantity demanded of good A / percentage change in price of good B.
The cross price elasticity of substitute goods are always positive because if the price of good B increases, the Quanitity demanded of good A rises.
Substitute goods are goods that can be used in place of another good.
Complement goods are goods that are used together. E.g. car and gas
Inferior goods are goods whose demand increases when income falls and whose demand falls when income rises.
I hope my answer helps you
2. (20 points) A couple plans to purchase a home for $320,000. Property taxes are expected to be $1,200 per year while insurance premiums are estimated to be $1400 per year. Annual repair and maintenance are estimated at $1,950. An alternative is to rent a house of about the same size for $2,150 per month [approximate using $25,800 per year]. If an 8.0% return before-taxes is the couple's minimum rate of return, what must the resale value be 10 years from today for the cost of ownership to equal the cost of renting
Answer:
$371,200
Explanation:
For the computation of annual price escalation first we need to follow some steps which are shown below:-
Future value of payment if the property purchased is
= Property taxes + Insurance premium + Annual repair and maintenance
= $1,200 + $1,400 + $1,950
= $4,550
Future value = (1 + K)^n
= (1 + 0.08)^10
= 2.158924997
or
= 2.16
Future value of annuity factor = (1 + K)^n -1 ÷ K
= ((1 + 0.08)^10 - 1) ÷ 0.08
= 1.158924997
÷ 0.08
= 14.487
Future value of the cost of property = Purchase amount of a home × Future value
= $320,000 × 2.16
= $691,200
Future value of recurring cost = Future value of payment if property purchased × Future value of annuity factor
= $4,550 × 14.487
= $65,915.85
Total value of payment = Future value of the cost of property + Future value of recurring cost
= $691,200
+ $65,915.85
= $75,7115.85
Future value of the payment in property taken on rent
The Total value of the payment in 10 year when the property taken on rent = Amount using per year × Future value of annuity factor
= $25,800 × 14.487
= $373,764.6
The amount incurred in both the methods will be the same if the property can be sold = Total value of payment - Total value of the payment in 10 year when the property was taken on rent
= $75,7115.85 - $373,764.6 0
= 383351.25
finally,
The annual price escalation = Future value of the cost of the property - Purchase amount of home
= $691,200 - $320,000
= $371,200
Roman Mfg.'s July production involved actual direct labor costs of $41,514 for 3,400 direct labor hours. The budget for the July level of production called for 3,500 direct labor hours at $12.20 per hour, using a standard cost system.
1. Roman's labor rate variance for July is ____________
2. Roman's labor efficiency variance for July is _______________
Answer:
Instructions are below.
Explanation:
Giving the following information:
Roman Mfg.'s July production involved actual direct labor costs of $41,514 for 3,400 direct labor hours. The budget for the July level of production called for 3,500 direct labor hours at $12.20 per hour.
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (3,500 - 3,400)*12.2
Direct labor time (efficiency) variance= $1,220 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 41,514/3,400= $12.21
Direct labor rate variance= (12.20 - 12.21)*3,400
Direct labor rate variance= $34 unfavorable
Nick contracts for the sale of this year's strawberry crop to Phoenix, with payment to go to Rural Cooperative Association. The contract reserves to Nick and Phoenix the right to modify its terms. Rural Cooperative's right to payment is
Answer:
Subject to any change That Phoneix and Nick make
Explanation:
Since in the question, it is given that the contracts reserve the right to change or modify the term of the contract between the Nick and Phoenix and the payment is go to Rural Cooperative Association
Therefore the right to payment reflects the changes that made by Phoneix and Nick as the contract allows to make any modification or changes to the contract terms
1. At year-end, Harris Co. had shipped $12,500 of merchandise FOB destination to Harlow Co. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory?
2. Harris Company has shipped $20,000 of goods to Harlow Co., and Harlow Co. has arranged to sell the goods for Harris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory?
Answer:
1. Harris company
2. The Consignor should be Harris Company
The Consignee should be Harlow Company
Explanation:
1.Harris company should include the amount of $12,500 as part of their year end inventory because based on the information given we were told that Harris Company was the company which at year-end shipped $12,500 of merchandise FOB destination to Harlow Co.
2.
The Consignor should be Harris Company
The Consignee should be Harlow Company
Because Harris Company was the company which shipped the goods worth $20,000 to Harlow Co Which means HARRIS COMPANY is the CONSIGNOR in which Harlow Co. has as well arranged to sell the goods for Harris which means HARLOW COMPANY is the CONSIGNEE because they are the buyer of the goods
Therefore Harris company should tend to include any goods which are unsold as part of the inventory.
Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here is their willingness to pay for each film:
Willingness to Pay (Dollars)
Musashi Sean Bob Eric
First film 10 9 8 3
Second film 8 7 6 2
Third film 6 5 4 1
Fourth film 4 3 2 0
Fifth film 2 1 0 0
Within the dorm room, the showing of a movie ( IS OR IS NOT ) a public good.
If it costs $8 to rent a movie, the roommates should rent__________movies in order to maximize the total surplus.
Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally.
This means that each roommate will pay $__________.
Answer:
1. Inside the dorm room, the movies are Non-Rival which means that one person can watch the movie and it will not diminish the ability of others to watch as well.
Also as they are all in the same dorm, the showing of the movie is Non-Excludable as well because no one can stop the other from watching.
Public good is both Non-Rival and Non-Excludable so the showing of a movie IS a public good.
2.
Musashi Sean Bob Eric Total Willingness to pay
10 9 8 3 30
8 7 6 2 23
6 5 4 1 16
4 3 2 0 9
2 1 0 0 3
The optimal number of movies that can be rented is dependent on their total willingness to pay. If their Total willingness to pay for the movie is above $8 which is the cost of a movie, then they will get it. From the table, the fifth movie is below the price of $8 so they should rent 4 movies.
3. If they rent 4 movies and there are 4 of them then the cost per person is;
= (8 *4)/4 people
= 24/4
= $8
This means that each roommate will pay $8.
If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
Answer:
$1,103,000
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
For assets disposed, the amount received from the disposal is the amount recorded as an investing activity.
Amount received - Book value of asset = Gain on disposal
Amount received = $221000 + $882000
= $1,103,000
Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the sales journal.
May:
2 Sold merchandise costing $280 to B. Facer for $420 cash, invoice no. 5703.
5 Purchased $2,750 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $756 to J. Dryer for $1,096, terms 2/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $189 to R. Lamb for $302, terms n/30, invoice no. 5705.
16 Received $1,074 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment (noninventory) for $900 cash to Golf, Inc.
25 Sold merchandise costing $330 to T. Taylor for $518, terms n/30, invoice no. 5706.
Required:
Journalize the May transactions that should be recorded in the sales journal assuming the perpetual inventory system is used.
Answer and Explanation:
The Preparation of the sales journal is prepared below:-
Finer Company
Sales Journal
Date Account Invoice Accounts Cost of goods
Debited Number Receivable Dr. Sold Dr.
Credit sales Credit inventory
May 7 J. Dryer 5704 $1,096 $756
May 12 R. Lamb 5705 $302 $189
May 25 T. Taylor 5706 $518 $330
A government has the following liabilities at the end of the year: General obligation bonds Compensated absences Salaries payable $1,500,00 120,000 40,000 What amount of liabilities should be reported in the governmental activities column of the government-wide statement of net position
Answer:
What should be reported is $1660000
Explanation:
Solution
Given that:
Thus
General obligation bonds=$1,500000
Compensated absences=$120,000
Total liabilities in the governmental activities column=$1660000
Therefore, the amount $1660000 should be reported in the governmental activities column of the government-wide statement of net position.
Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60. If the market value for the preferred stock is $70, what is the required return on this preferred stock?
Answer:
10.71%
Explanation:
The computation of the required rate of return on this preferred stock is shown below :
The Required return on preferred stock is
= Dividend ÷ market value of preferred stock
= 7.50 ÷ $70
= 10.71%
By dividing the dividend from the market value of preferred stock we can get the Required return on preferred stock and the same is to be considered
therefore we ignored the par value i.e $60 as this is not relevant
Answer:
$61.54
Hope this helps! good luck :)
The food and beverage manager should always expect that the fresh produce delivered to his or her establishment will be the same quality and degree of ripeness that they were when first harvested in the field. True or False
Answer:
False.
Explanation:
The food and beverage manager shouldn't always expect that the fresh produce delivered to his or her establishment will be the same quality and degree of ripeness that they were when first harvested in the field.
The produce delivered wouldn't be as fresh, same quality and degree of ripeness that they were when first harvested because of changes in environmental conditions such as temperature and relative humidity. Also, a change in its biochemical composition would go a long way to affect the quality of fresh produce.
Hence, this would result in a change in taste, texture, degree of ripeness, nutritional value, smell etc.
However, the farmer or supplier of this food products could mitigate the change in quality by transporting them as soon as possible after harvesting, transporting at a required cold temperature, humidity and ensuring they're well packaged in a safe container during shipment.
Ajax common stock is expected to return 17 percent in a boom economy, 11 percent in a normal economy, and 2 percent in a recession. The probability of a boom is 25 percent, of a normal economy is 70 percent, and of a recession is 5 percent. What is the expected return on this stock?
Answer:
Expected Value of the return = 12.1%
Explanation:
The expected rate of return is the weighted average of all the possible returns associated with an investment decision. The returns are weighted using the probability associated with their outcomes.
Expected return = WaRa + Wb+Rb + Wn+Rn
W- weight of the outcome, R - return of the outcome
W- Probability of the expected outcome, R- expected return under a circumstance
Expected Value of the return
(0.25× 17%) + (0.7× 11%) + (0.05 × 2%) = 0.1205
=0.1205 × 100
= 12.1%
Expected Value of the return = 12.1%
You are the project manager for a cable service provider. Your project team is researching a new service offering. They have been working together for quite sometime and are in the performing stage of Team Development. A new member has been introduced to the team. Which of the following is true?
A. The team will start all over again at the storming stage but quickly progress to the performing stage.
B. The team will continue in the performing stage.
C. The team will start all over again with the storming stage.
D. The team will start all over again with the forming stage.
Answer:
D. The team will start all over again with the forming stage.
Explanation:
Stages of team development are the various stages through which a group passes from formation to dissolution. These stages are important because it helps a manager identify the unique challenges his team is facing per time and various solutions to them.
The stages of team development are:
- Forming
- Storming
- Norming
- Performing
- Adjourning
If a team member joins a team, the team will start over from the forming phase because he will have to get used to his new team mates. He will undergo storming when there will be conflict between coworkers.
Next he will undergo norming when team members accept one another.
Performing when team works optimally to achieve set goals.
Finally the adjourning phase where team is disbanded
Larned Corporation recorded the following transactions for the just completed month.
$72,000 in raw materials were purchased on account. $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor. Depreciation of $193,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:
Larned Corporation
Journal Entries
Sr. No Account Debit Credit
1 Materials $72,000
Accounts Payable $72,000
$72,000 in raw materials were purchased on account.
2 Work in Process $62,000
Materials Inventory $62,000
$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials
3 Manufacturing Overheads $8000
Materials Inventory $ 8000
$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
4 Work In Process $ 102,000
Payroll ( Direct Labor ) $102,000
$102,200 was for direct labor
5 Manufacturing Overheads $3800
Payroll (Indirect Labor) $3800
Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor.
6 Depreciation $193,000
Factory Overhead Control Account $193,000
Depreciation of $193,000 was incurred on factory equipment.