Answer:
A. Dr Investment in Skine Company common stock $98,000
Dr Accumulated depreciation $31,000
Dr Accounts payable $29,000
Cr Cash $27,000
Cr Accounts receivable $36,000
Cr Inventory $22,000
Cr Land $3,000
Cr Depreciable assets $70,000
B. Dr Cash $27,000
Dr Accounts receivable $36,000
Dr Inventory $22,000
Dr Land $3,000
Dr Depreciable assets $70,000
Cr Accumulated depreciation $31,000
Cr Accounts payable $29,000
Cr Common stock $46,200
Cr Additional paid-in capital $51,800
Explanation:
A.Preparation of the journal entry that Phoster recorded when it transferred the assets to Skine,
Dr Investment in Skine Company common stock $98,000
Dr Accumulated depreciation $31,000
($75,000-$44,000)
Dr Accounts payable $29,000
($40,000-$11,000)
Cr Cash $27,000
($50,000-$23,000)
Cr Accounts receivable $36,000
($76,000-$40,000)
Cr Inventory $22,000
($42,000-$20,000)
Cr Land $3,000
($25,000-$22,000)
Cr Depreciable assets $70,000
($180,000 $110,000)
(To record transfer of assets to Skine)
B. Preparation of the journal entry that Skine recorded for the receipt of assets and issuance of common stock to Phoster.
Dr Cash $27,000
($50,000-$23,000)
Dr Accounts receivable $36,000
($76,000-$40,000)
Dr Inventory $22,000
($42,000-$20,000)
Dr Land $3,000
($25,000-$22,000)
Dr Depreciable assets $70,000
($180,000 $110,000)
Cr Accumulated depreciation $31,000
($75,000-$44,000)
Cr Accounts payable $29,000
($40,000-$11,000)
Cr Common stock $46,200
(4,200 shares*$11 par value)
Cr Additional paid-in capital $51,800
($27,000+$36,000+$22,000+$3,000+$70,000-$31,000-$29,000-$46,200)
(To record the receipt of assets and issuance of common stock to Phoster)
Journal entries to record transfer of asset and account receivables by Phoster Corporation to Skine Company
Account titles Debit Credit
Investment in Skine company common stock $98000
Accumulated depreciation $31000
Accounts payable $29000
Cash $27000
Accounts receivable $36000
Inventory $22000
Land $3000
Depreciable assets $70000
Journal entries to record receipt of asset and account receivables by Skine Company to Phoster Corporation.
Account titles Debit Credit
Cash $27000
Accounts receivable $36000
inventory $22000
Land $3000
Depreciable assets $70000
Accumulated depreciation $31000
Accounts payable $29000
Common stock (4200*11) $46200
Additional paid in capital (98000-46200) $51800
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Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Pika Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase sales by an estimated $10,000, with annual depreciation of $10,000. If the equipment is purchased, what will happen to the return on investment for the division
Answer:
Pika Division
Betsy Union
The return on investment will reduce from 21.9% to 18.4%.
Explanation:
a) Data and Calculations:
Current controllable margin = $46,000
Current operating assets = $210,000
Current return on investment = $46,000/$210,000 * 100 = 21.9%
Increase in sales as a result of the new equipment = $10,000
Increase in depreciation = $10,000
Operating assets after the purchase of the new equipment = $250,000 ($210,000 + $40,000)
Future controllable margin = $46,000 ($46,000 + $10,000 - $10,000)
Future return on investment = $46,000/$250,000 * 100
= 18.4%
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G changed by -2 percent, what can you infer about the own price elasticity of demand for Big G cereal
Answer:
the coefficient of elasticity is 0.5. Thus, demand is inelastic.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Price elasticity = 2/4 = 0.5
Because demand is less than1, big g has an inelastic demand.
Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.
a. Sale of Common Stock.
b. Sale of Land
c. Purchase of Treasury Stock
d. Merchandise Sales
e. Issuance of a long-term note payable
f. Purchase of merchandise
g. Repayment of note payable
h. Employee salaries
i. Sale of equipment at a gain.
j. Issuance of bonds
Answer:
a. Sale of Common Stock.
Classification: Financing activity
b. Sale of Land
Classification: Investing activity
c. Purchase of Treasury Stock
Classification: Financing activity
d. Merchandise Sales
Classification: Operating activity
e. Issuance of a long-term note payable
Classification: Financing activity
f. Purchase of merchandise
Classification: Operating activity
g. Repayment of note payable
Classification:
Financing activity
h. Employee salaries
Classification: Operating activity
i. Sale of equipment at a gain.
Classification: Investing activity
j. Issuance of bonds
Classification: Operating activity
On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000 loss as part of the transaction. Which of the following must be true regarding this transaction?
a. The face value of the bond was $100,000
b. The market interest rate had increased since the bond was issued
c. The face value of the bond was $106,000
d. The company paid more than the current fair value of the bond to retire it.
e. The market interest rate had decreased since the bond was issued
Answer:
a. The face value of the bond was $100,000
Explanation:
Elite Trailer Parks has an operating profit of $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding.
Required:
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks.
b. What was the increase in retained earnings for the year?
Answer:
a. Earnings per share = (Operating profit - Interest expense - Tax - Preferred dividends) / Common stock outstanding
Earnings per share = ($200,000 - $10,000 - $61,250 - $18,750) / $20,000
Earnings per share = $110,000 / 20,000 Shares
Earnings per share = $5.5 per share
Common dividends per share = Dividend paid / Common stock outstanding
Common dividends per share = $30,000 / 20,000 Shares
Common dividends per share = $1.50 per share
b. What was the increase in retained earnings for the year?
Increase in retained earnings = $110,000 - Common dividend paid
Increase in retained earnings = $110,000 - $30,000
Increase in retained earnings = $80,000
So, the increase in retained earnings for the year is $80,000.
If you were an investor during the dot revolution, and you invested primarily in technology stocks, what fundamental principle of finance did you ignore and how did it affect the value of your portfolio
Answer:
If an individual has shares in a dot.com or IT firm in his or her portfolio, the essential concept of finance that might be overlooked while owning the commodity is :
1) The corporation's income/EPS has decreased.
2) A slowdown in the corporation 's growth and turnover.
3) The dividend payment ratio will be reduced.
Quarterly effects on the outcomes would rarely make a difference in the year results, given the seasonal or business pattern in IT organisations.
in the month of march, chester received orders of 179 units at a price of $15.00 for their product clack, and in april receives an order for 45 units of their product clack at $15.00. chester uses the accrual method of accounting and offers 30 day credit terms. chester delivers 0 units in march, 179 units in april and 45 units in may. they received payment for 179 units in april, and payment for 45 units in may. how much revenue is recognized on the march income statement from this order
Answer:
$0
Explanation:
The computation of the revenue recognized is shown below:
= Price per unit × number of units delivered in march month
= $15 × 0 units
= $0
Since 0 units delivered in the march month and if we multiplied the price per unit with the march units i.e. 0 so the answer should be zero only
Under the WTO agreement:_________
a. tariffs are permitted to be levied by developed countries against developing countries but not against each other
b. a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
c. there is no dispute resolution mechanism except for trade involving environmental products
d. countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism
Answer:
Under the WTO agreement:_________
b. a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures.
Explanation:
The WTO (World Trade Organization) Agreement is an international legal framework covering about 63 agreements affecting trade in goods, services, intellectual property, standards, investment, and other issues with some impacts on world trade. The legal framework is a system of rules that supports open, fair, and undistorted trade competition, allowing tariffs and some protections.
Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct?
a. The $1,500 loss will first be offset by the $4,000 short-term gain.
b. The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
c. The $1,500 loss will first be offset by the $5,000 long-term gain.
d. The taxpayer will have a net short-term capital loss.
e. None of these choices are correct.
Answer:
The answer is "Choice c".
Explanation:
Initially, reimbursement would be achieved inside the long-term grouping of profits and losses as well as the short-term grouping of losses and gains. When these networks' results exhibit opposing values (it only is again and one a loss), their group outcomes were netted. There is still a net STCG of 4,000 USD as well as a net LTCG of 3,500 USD.
metion form of ownership represented by the SABC OF SOUTH AFRICA
Answer:
vbnjjhkhgfx
Explanation:
Vhhjjgddeszff
After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa:
a. will beible 15 recover 80 percent of the value of their depon, $2,500 deductible.
b. should be protected because their account is fully insured by the FDIC
c. will lose their savings because the FDIC only insures business deposite
d. can recover up to $25,000, but they will probably lose the test since the deposits exceed the maximum coverage offered by the FDIC
Answer:
B
Explanation:
The Federal Deposit Insurance Corporation (FDIC) was established after the great depression. Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers. In the case a bank fails, customers are assured that they would not lose their monies deposited
The FDIC provides protection for up to $250,000 of deposits
$55,000 is less than $250,000, thus the depositors would receive full protection
Interest can be regarded as the Group of answer choices payment to entrepreneurs for incurring risk in the production of new goods. return earned by capital as an input in the production process.
Answer:
return earned by capital as an input in the production process.
Explanation:
The interest means the return that is earned by the capiatl which represent as an input for the process of the production. Also it shows the reward for the capital purpose as the factor of production like land, labor, capital, etc
So, as per the given situation, the last option should be correct and the same is to be considered
Therefore the other options seems incorrect
An important difference between tariffs and quotas is that tariffs raise the price of the good in the country imposing the tariff. always generate tax revenue for the government. reduce imports. help domestic producers. g
Answer:
The correct answer is the second option: Tarrifs always generate tax revenue.
Explanation:
On the one hand, tariffs are taxes imposed by the government exclusively to imports and exports with the primary purpose of increase the revenue of the nation. Although it also looks for the protection of certains goods being a type of regulation regarding the international trade that goes around the world.
On the other hand, a quota is basically a limit imposed by the government with the only purpose of puting a maximum quantity to the number of imports that can entry in the country and therefore to protect the local industries and the domestic producers with it.
On April 1, Griffith Publishing Company received $27,180 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year
Answer:
Debit Unearned Fees, $6,795; credit Fees Earned, $6,795.
Explanation:
Based on the information given the appropriate adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year will be :
Debit Unearned Fees $6,795
Credit Fees Earned $6,795
[$27,180/36 months*9 months]
April 1 to December 31=9 months
The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds.
1. Ayayai Corp. redeemed $158,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $142,674. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded.
2. Kingbird, Inc. redeemed $179,000 face value, 14.0% bonds on June 30, 2022, at 95. The carrying value of the bonds at the redemption date was $193,320. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.
Answer:
1. April 30
Dr Bonds payable $158,000
Dr Loss on redemption of bonds payable $18,486
Cr Discount on bonds payable $15,326
Cr Cash $161,160
2. June 30
Dr Bonds payable $179,000
Dr Premium on bonds payable $14,320
Cr Gain on redemption of bonds payable $23,270
Cr Cash $170,050
Explanation:
1. Preparation of the appropriate journal entry for the redemption of the bonds.
April 30
Dr Bonds payable $158,000
Dr Loss on redemption of bonds payable $18,486
($161,160+$15,326-$158,000)
Cr Discount on bonds payable $15,326
($158,000-$142,674)
Cr Cash $161,160
($158,000*1.02)
(To record redemption of bonds)
2. Preparation of the appropriate journal entry for the redemption of the bonds.
June 30
Dr Bonds payable $179,000
Dr Premium on bonds payable $14,320
($193,320-$179,000)
Cr Gain on redemption of bonds payable $23,270
($179,000+$14,320-$170,050) .
Cr Cash $170,050
($179,000*.95)
(To record redemption of bonds)
If the wage of the fifth worker is $20 and his or her value of the marginal product of labor is $25, the firm a. benefits by stopping at this level of labor. b. is likely to fire the fifth worker. c. asks this fifth worker to work overtime. d. is likely to benefit by hiring more workers. e. is likely to lose profit by hiring more workers.
A. benefits by stopping at this level of labor. Option A is correct.
What are the benefits of division of labor?The specialisation of duties and responsibilities within a production process is known as the division of labour. It has many advantages, including improved productivity and efficiency. Workers can become more skilled and proficient in their particular role by breaking down a complex task into smaller, more focused tasks, which leads to higher-quality output and quicker production times. Because mass production can reduce costs per unit, the division of labour also makes it easier to achieve economies of scale. Additionally, it enables more latitude in task distribution and workload modification. As workers concentrate on gaining expertise in their area of specialisation, it can also result in more innovation and specialisation. In general, the division of labour has led to significant advancements in modern industrial production.
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Charles Company acquired Jackson Company for $2,000,000 cash. At that time, the fair value of recorded assets and liabilities was $1,500,000 and $250,000, respectively. If Jackson meets specified sales targets, Charles is required to pay an additional $200,000 in cash per the acquisition agreement. Charles estimates the probability of this to be 50%. The direct costs related to the acquisition were $50,000. What was the amount of the goodwill related to the acquisition?
Answer:
$950,000
Explanation:
Goodwill is defined as the excess of Purchase Price over the Net Assets taken over.
therefore
Goodwill = Purchase Price - Fair Value of Net Assets taken over
Note : Acquisition cost is an expense and not included in this calculation.
Since the probability is more likely than not (Probability > or = 50 %) , we include the $200,000 in the Purchase Price
thus,
Goodwill = $2,200,000 - ($1,500,000 - $250,000)
= $950,000
Bramble Corp. expects to purchase $110000 of materials in July and $130000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be
Answer:
$125,000
Explanation:
August's cash disbursements for materials purchases wiill be:
= July month purchase paid amount + August month purchase paid amount
= ($110,000 * 25%) + ($130,000 * 75%)
= $27,500 + $97,500
= $125,000
Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 5 DVDs when the price of a DVD is $6.00 , 4 DVDs when the price of a DVD is $8.00 , and 2 DVDs a month when the price of a DVD is $10.00 . Robert buys 18 DVDs a month when the price of a DVD is $6.00 , 9 DVDs when the price of a DVD is $8.00 , and zero DVDs when the price of a DVD is $10.00 . In the market for DVDs, what do we know about the quantity demanded?
Answer:
increases as the price falls
Explanation:
A. increases as the price rises
B .at $8.00 a DVD is 8 DVDs a month
C. at $6 a DVD is less than the quantity demanded at $8.00 a DVD
D. increases as the price falls
E .at $6.00 a DVD is 4 DVDs a month
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
As price decreases, quantity demanded increases
The National Income and Product Accounts simultaneously provide data on: (a) production and efficiency; (b) technological progress and product improvements; (c) total output and the income derived from its production; (d) slugging percentage and on-base percentage.
Carla Vista Company purchases Sandhill Company for $2470000 cash on January 1, 2021. The book value of Sandhill Company’s net assets, as reflected on its December 31, 2020 balance sheet is $1923000. An analysis by Carla Vista on December 31, 2020 indicates that the fair value of Sandhill’s tangible assets exceeded the book value by $190500, and the fair value of identifiable intangible assets exceeded book value by $142500. How much goodwill should be recognized by Carla Vista Company when recording the purchase of Sandhill Company?
Answer: $214000
Explanation:
The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:
Book value of net assets = $1923000
Add: Excess fair value of tangible asset = $190500
Add: Excess fair value of intangible assets = $142500
Fair value of net assets = $1923000 + $190500 + $142500 = $2256000
Therefore, Goodwill will be:
=Cash paid for purchase - Fair value of net assets
= $2470000 - $2256000
= $214000
As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of $300,000. Sales of the company are expected to increase by 10 percent for each of the next two years. If all current assets and current liability accounts increase proportionately with sales, what would be the projected current ratio of the company on Dec. 31, 2015
Answer:
2.00
Explanation:
Calculation to determine what would be the projected current ratio of the company on Dec. 31, 2015
Using this formula
Current ratio =Current assets/ Current liabilities
Let plug in the formula
Current ratio =$600,000 /$300,000
Current ratio =2.00
Therefore the projected current ratio of the company on Dec. 31, 2015 is 2.00
stock a has an expected return of 20 and stock b has an expected return of 5. what is the expected return on a portfolio this comprised of 67^ of stock a and 33% stoc k b
Answer:
15.05%
Explanation:
Calculation to determine the expected return on a portfolio
Using this formula
Expected return = (Return on stock A * Percentage invested in stock A) + ( Return on Stock B * Percentage invested in Stock B)
Let plug in the formula
Expected return= (20% * 67%) + (5% * 33%)
Expected return= 13.4% + 1.65%
Expected return= 15.05%
Therefore the expected return on a portfolio is 15.05%
True or False: Both countries would be better off if they produced the good in which they have a comparative advantage and then traded 400 million tons of grain for 200 million cars.
Answer:
true
Explanation:
"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Actual overhead $32 OH allocated at 150% of DL$. Show all computations. a) Prepare a schedule of COGM & Sold using OH allocated. b) Prepare the journal entry to close OH."
Answer:
Schedule of cost of goods manufactured & Sold
Particulars Amount
Direct materials used $15
Direct labor $20
Factory overhead Applied $30
(150% of DL Cost)
Total manufacturing costs $65
Add: Beginning WIP $25
Total cost of work in process $90
Less: Ending WIP $10
Cost of goods manufactured $80
Particulars Amount
Cost of goods manufactured $80
Add: Beginning finished goods inventory $5
Cost of goods available for sale $85
Less: Ending finished goods inventory $15
Cost of goods sold $70
2. State the accounting equation.
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☆☆●◉✿ Answer:✿◉●☆☆
The accounting equation formula is Assets = Liabilities + Equity.
☆☆●◉✿Step-by-step explanation:✿◉●☆☆
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The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is
Answer:
The answer is "The corporation".
Explanation:
In terms of dollar sales, profits, or personnel, the main form of the corporate organization throughout the USA was its company. The company's main form of business organization is indeed the company, a legal entity constituted by the selling of share capital to the owners, who have become stakeholders and the shares elect a board member who manages the company.
Normative and positive statements
The following table contains statements that provide some analysis of policies that address taxes. Categorize each of these statements as either positive or normative.
Statement Positive Normative
Taxes are too high.
In some circumstances, if taxes are lowered,
government revenues actually increase.
It is immoral for a government to redistribute money
from one person to another.
When the government increases taxes, rates of
tax evasion increase.
Answer:
Normative
Positive
Normative
Positive
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the statement , In some circumstances, if taxes are lowered,
government revenues actually increase, can be tested and it has it basis in economic theory
Normative economics is based value judgements, opinions and perspectives. For example, the statement - taxes are too high - is based on opinion. To some it is too high while to others it would be too low
Approximately 395 years ago, the Dutch settler, Peter Schaghen, purchased Manhattan Island from the Lenape Indians for 60 guilders (about $35 USD) worth of various commodities. Assume the Lenape Indians sold the commodities and invested the $35 earning a 7.5% annualized compounded return. What would their investment be worth today (395 years later)
Answer:
the investment be worth today is $90 trillion
Explanation:
The computation of the investment be worth today is shown below:
Amount = $35 × (1 + 0.075 ÷ 1)^1.395
= $35 × 1075^1.395
= $90 trillion
Hence, the investment be worth today is $90 trillion
Basically we applied the above method to compute the same so that the correct amount could come
I’m tired of being broke! Help
Answer:
ok its A
Explanation:
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