At December 31, 2020 Sunland Company had 200000 shares of common stock and 10600 shares of 7%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On February 10, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Sunland declared a 100% stock dividend on its common stock. Net income for 2021 was $960000. In its 2021 financial statements, Sunland’s 2021 earnings per common share should be:___________$4.47.$4.20.$2.21.$1.29.
Answer:
$2.21
Explanation:
For the computation of earnings per common share first we need to find out the preferred dividend and shares outstanding which is shown below:-
Preferred dividend = Common stock × 100 × Given percentage
= 10,600 × 100 × 7%
= 74,200
Share outstanding = Shares × 2
= 200,000 × 2
= 4,000,000
Earning per share = (Net income - Preferred dividend) ÷ Share outstanding
= ($960,000 - 74,200) ÷ 400,000
= $2.21
Hence, we applied the above formulas
During the year, the Senbet Discount Tire Company had gross sales of $1.24 million. The company’s cost of goods sold and selling expenses were $593,000 and $246,000, respectively. The company also had notes payable of $850,000. These notes carried an interest rate of 5 percent. Depreciation was $123,000. The tax rate was 23 percent. a. What was the company’s net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) b. What was the company’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
Net income= $139,755
Operating cash flow= $346,835
Explanation:
Senbet discount tire company has a gross sale of $1.24 million
The cost of goods sold is $593,000
The selling expense is $246,000
The company has a note payable of $850,000 with an interest rate of 5%
Depreciation is $123,000
Tax rate is 23%
(a) Inorder to calculate the tax expense the first step is to find the interest
Interest= debt×interest rate
= $850,000×5/100
= 850,000×0.05
= 42,500
Therefore, the net income can be calculated as follows
= (sales-cost of goods sold-selling expense-depreciation-interest)(1-tax rate)
=( $593,000-$246,000-$123,000-42,500)(1-0.23)
= 181,500×0.77
= $139,755
(b) Inorder to calculate the operating cash flow the first step is to find the tax expense
Tax expense= (gross sales-cost of goods sold-selling expense-depreciation-interest)× tax
($1,240,000-$593,000-$246,000-$123,000-42,500)×0.23
= $235,500×0.23
= $54,165
Therefore, the operating cash flow can be calculated as follows
= gross sales-cost of goods sold-selling expense-depreciation-tax expense+depreciation
=$1,240,000-$593,000-$246,000-$123,000-$54,165+$123,000
= $346,835
Hence the net income is $139,755 and the operating cash flow is $346,835
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchases $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:
Answer:
The journal entries for the whole transaction are:
August 7, 202x, merchandise purchased on account, terms 1/10, n/30
Dr Merchandise inventory 9,750
Cr Accounts payable 9,750
August 11, 202x, partial return of purchased merchandise
Dr Accounts payable 1,500
Cr Merchandise inventory 1,500
August 16, 202x, invoice is paid within discount period
Dr Accounts payable 8,250
Cr Cash 8,167.50
Cr Purchase discounts 82.50
Determine the estimate of the mean when the process is in control.Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
A local mattress manufacturer wants to know if its manufacturing process is in or out of control and has hired you, a statistics expert in the field, to analyze its process. Specifically, the business has run 20 random samples of size 5 over the past month and has determined the mean of each sample.
95.72 95.44 95.4 95.5 95.56 95.72 95.6 95.24 95.46 95.44 95.8 95.2 94.82 95.78 95.18 95.32 95.08 95.22 95.04 95.48
a. Determine the estimate of the mean when the process is in control.
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answer:
[tex]Mean = \bar{x} = 95.4[/tex]
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Explanation:
a. Determine the estimate of the mean when the process is in control.
The mean is given by
[tex]Mean = \bar{x} = \frac{\sum x}{n}[/tex]
Where n = 20 samples
Using Excel,
=AVERAGE(number1, number2,....)
The mean is found to be
[tex]Mean = \bar{x} = 95.4[/tex]
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
The Upper Control Limit (UCL) is given by
[tex]$ UCL = \bar{x} + \frac{3 \cdot s}{\sqrt{n} } $[/tex]
Where [tex]\bar{x}[/tex] is the mean, s is the standard deviation and n is the size of random samples that is 5 (not 20)
[tex]UCL = 95.4 + \frac{3 \times 0.50}{\sqrt{5} } \\\\UCL = 95.4 + 0.671 \\\\UCL = 96.07[/tex]
The Lower Control Limit (UCL) is given by
[tex]$ LCL = \bar{x} - \frac{3 \cdot s}{\sqrt{n} } $[/tex]
[tex]LCL = 95.4 - \frac{3 \times 0.50}{\sqrt{5} } \\\\LCL = 95.4 - 0.671 \\\\LCL = 94.73[/tex]
So the control limits are
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The process is in control based on the obtained results.
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
One of your customers has just made a purchase in the amount of $23,200. You have agreed to payments of $445 per month and will charge a monthly interest rate of 1.26 percent. How many months will it take for the account to be paid off?
Answer:
85.43 months
Explanation:
Purchase = $23,200
Payment per month = $445
Interest rate = 1.26%
Therefore the solution is:
$23,200 = $445[(1 − 1/1.0126^t) / .0126]
t = 85.43 months
The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:
Answer:
This is the Predetermined overhead rate
Explanation:
The predetermined overhead rate assigns a particular amount of manufacturing overhead to each direct labor or machine hour. This helps businesses allocate resources and also set pricing. This computation is usually done at the beginning of each period.
To calculate this, we divide the estimate of the manufacturing overhead cost total by the estimated number of machine hours. It is used to assign overhead cost to jobs.
On June 30, Daughtry Limited issues 8 %, 20-year bonds payable with a face value of $ 130 comma 000. The bonds are issued at 86 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.)
Requirements
1. Journalize the issuance of the bonds on June 30.
2. Journalize the semiannual interest payment and amortization of the bond discount on December 31.
Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Requirement 2. Journalize the serniannual interest payment and amortization of the bond discount on December 31. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Answer:
June 30
Dr Cash 111,800
Dr Discount on bonds payable 18,200
Cr Bonds payable 130,000
Dec 31
Dr Interest expense 5,655
Cr Discount on bonds payable 455
Cr Cash 5,200
Explanation:
1. Preparation of the Journal entry fornthe issuance of the bonds on June 30.
June 30
Dr Cash 111,800
(86%×130,000)
Dr Discount on bonds payable 18,200
(100%-86%×130,000)
Cr Bonds payable 130,000
(To record bond issue)
2. Preparation of the Journal entry for the semiannual interest payment as well as the amortization of the bond discount on December 31.
Dec 31
Dr Interest expense 5,655
Cr Discount on bonds payable 455
(18,200/40)
Cr Cash (130,000*8%*6/12) 5,200
(To record interest)
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month. What is the contribution margin per machine hour for food processors?
Answer:
The contribution margin per machine hour is $150.
Explanation:
Note: The missing part of the question is
Food Processor Espresso Machines
Sales price $125 $225
Variable costs $50 $150
Solution
Contribution Margin per Machine = Sales Price - Variable Cost
=$125 - $50
=$75
Contribution Margin = Contribution per Machine × Number of Machines Produced in 1 Machine Hour
= $75 * 2
= $150
Thus, the contribution margin per machine hour for food processors is $150.
A customer owns 400 shares of ABC stock. ABC is having a rights offering where 20 rights are needed to subscribe to 1 new share. How many new shares can the customer purchase through this rights offering
Answer:
20 new stocks
Explanation:
each stockholder should receive 1 right for every stock that he/she owns, so this particular investor owns 400 rights. Since he/she needs 20 rights to subscribe to 1 new stock, then the total number of stocks that he/she can buy = 400 / 20 = 20.
Many corporations hand out preemptive rights to their stockholders, which means that whenever new stocks are issued, they will be able to purchase them before any outside investor does.
The cash account for All American Sports Co. on April 1, 20Y5, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
- Checks outstanding totaled $14,300.
- A deposit of $9,275, representing receipts of April 30, had been made too late to appear on the bank statement.
- A check for $720 had been incorrectly charged by the bank as $270.
- A check for $110 returned with the statement had been recorded by All American Sports Co. as $1,100. The check was for the payment of an obligation to Garber Co. on account.
- The bank had collected for All American Sports Co. $4,320 on a note left for collection. The face of the note was $4,000.
- Bank service charges for April amounted to $75.
- A check for $1,300 from Bishop Co. was returned by the bank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of April 30.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Answer:
All American Sports Co.
1. Bank Reconciliation Statement as at April 30, 20Y5:
Balance as per bank statement $40,360
add deposit 9,275
less outstanding checks -14,300
Incorrectly charged check 450
Balance as per adjusted cash book $34,885
Explanation:
a) Adjusted Cash Book
Opening balance $23,600
Cash Deposit 80,150
Checks - 72,800
Balance as per cash book $30,950
add Check reversal 1,100
Note collected 4,320
less Bank charges -75
Check Returned -110
NSF -1,300
Adjusted cash book balance$34,885
B) Bank Reconciliation Statements are prepared periodically, monthly for instance, to agree the balance of the cash maintained by the entity with the balance of the statement presented by the bank. The reconciliation process also helps in detecting errors.
Barney Corporation recognized a $100 million preferred stock balance on 12/31/2019.
On January 1, 2020, Barney issued $10 million in preferred dividends.
On the same date, Barney raised an additional $20 million via a new issuance of preferred stock.
On December 31, 2020, the market value of the original amount of preferred shares rose $5 million.
Under US GAAP, the 12/31/2020 year ending preferred stock balance is:___________.
A. $110m
B. $115m
C. $120m
D. $125m
Answer:
C. $120m
Explanation:
As per the given situation, the calculation of the ended year the preferred stock is shown below:
Ending preferred stock balance
= Beginning balance of preferred stock + new issuance of preferred stock
= $100 million + $20 million
= $120 million
Therefore, for computing the ending preferred stock balance we simply applied the above formula and ignore all other values as they are not relevant. So the correct answer is C.
Celia Inc. has two types of handbags: Standard and custom. The Controller has decided to use a plant-wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used Two activity cost pools were developed: Machining and Machine set-up. Presented below is information related to the company's operations
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
Total estimated overhead cost are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000 and $120,000 is allocated to the machine set-up activity cost pool
1. Calculate overhead allocated to each product using the traditional (Plant-wide) approach
2. Calculate overhead allocated to each product using the activity based costing approach
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
The total estimated overhead costs are $342,000.
A. First, we need to calculate the predetermined overhead rate:
Total direct labor cost= $72,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 342,000/72,000
Predetermined manufacturing overhead rate= $4.75 per direct labor dollar
Standard= 4.75*60,000= $285,000
Custom= 4.75*12,000= $57,000
B. Now, we need to calculate a predetermined overhead rate for each activity:
Machining:
Total machine-hours= 3,000
Total overhead= 222,000
predetermined overhead rate= 222,000/3,000
predetermined overhead rate= $74 per machine-hour
Setup:
Total set-up hours= 600
Total overhead= 120,000
predetermined overhead rate= 120,000/600
predetermined overhead rate= $200 per set up-hour
Standard= 74*1,500 + 200*100= $131,000
Custom= 74*1,500 + 200*500= $211,000
Which of the following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth? Check all that apply. Provisions that require firing the firm’s CEO whenever the firm’s bond price decreases by more than 15% Provisions that prohibit reducing the firm’s liquidity ratio below specified levels Provisions that prohibit the borrower from increasing debt ratios above specified levels Provisions that require issuing new debt securities whenever interest rates drop below 5%
Answer:
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
Explanation:
A bond refers to a fixed income instrument that signifies the indebtedness of the borrower to the bond issuer (investor or creditor). Basically, they are loans that are given to government or large corporations.
This simply means that, when a bondholder or creditor purchases a bond, an agreed amount of money is being borrowed to the bond issuer as a loan. As a result of the loan being borrowed, the bond issuer is required to pay an interest with a return of principal at maturity to the bondholder (investor or creditor).
A bond covenant can be defined as a standard and legally binding agreement between an investor or creditor (bondholder) and the issuer of a bond (bond issuer) in order to protect their respective interests. The bond covenant is classified into two (2) categories;
1. Positive or affirmative covenants: which states certain requirements that must be met by the bond issuer.
2. Negative or restrictive covenants: which states certain actions that are forbidden to the bond issuer.
The following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth;
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
The restrictive covenants are written directly in the trust indenture or bond deed. Also note, the more the restrictive covenants that exists in a bond, the lower its interest rate because it makes the bond appear safer.
Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $10.80 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 35% Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar.
Answer:
Oliver Company
Budgeted Income Statement For the Coming Year
Sales ($10.80 * 160,000) $1,728,000
Cost of goods sold ($6.30 * 160,000) ($1,008,000)
Gross margin(Sales - COGS) $720,000
Less: Variable selling and administrative expenses ($176,000)
($1.10 * 160,000)
Less: Fixed selling and administrative expenses ($423,000)
Operating income $121,000
Less: Income taxes (35% * 121,000) ($42,350)
Net income $78,650
The previous value of a portfolio that must be regained before a hedge fund can charge their investors performance fees is known as a
Answer:
high watermark
Explanation:
A high watermark refers to the mark at which the investment could be reached at a high peak. It to be calculated on that date when the performance fees are charged and it could be charged only on that case when there is a rise in the value of the portfolio
Moreover, in the high watermarks there is no need to pay the performance based fee when there is a poor performance
Therefore the given situation represent the high watermark
If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.
Answer:
rise, 1.0, rise
Explanation:
As we know that
Income elasticity of demand is
= Percentage change in quantity demanded ÷ Percentage change in income
So,
Percentage change income
= 2.12% ÷ 2.12
= 1%
Therefore if the income increased that also leads to increase in quantity demanded
We simply applied the Income elasticity of demand formula so that we can get to know the situation
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price
Answer:
Price of stock today = $53.29
Explanation
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV from year 1 to 3
Year Present Value ( PV)
1 1.25 × 1.275 × 1.1^(-1) = 1.4358
2 1.25 × 1.275^2 × 1.1^(-2) = 1.6492
3 1.25 × 1.275^3 × 1.1^(-3) = 1.894
Total 4.979
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
1.25 ×1.275^4/(0.11-0.06)
=66.066
Step 2
Present Value in year 0
=66.066 × 1.11^(-3) = 48.3068
Total present value = 4.979 + 48.306= 53.286
Price of stock today = $53.29
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 24,000, $15 par, common shares. The market price of the common stock is $44 on this date.
Requried:
a. Record the necessary journal entries assuming a small (10%) stock dividend
b. Record the stock dividend assuming a small (10%) stock dividend.
c. Record the stock dividend assuming a large (100%) stock dividend.
d. Record the stock dividend assuming a 2-for-1 stock split.
Answer:
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Explanation:
1. 2. & 3. Preparation to Record the journal entries assuming a small (10%) stock dividend
September 1: Stock dividends (24,000 × 10% × $44) = 105,600
September 1: Common stock (24,000 × 10% × $15) = $36,000
1. 2. & 3. Prepartion to Record the journal entries assuming a small (100%) stock dividend,
September 1: Stock dividends (24,000 shares × $15×100%) =$360,000
To Record the stock dividend assuming a 2-for-1 stock split.
No journal entry required
Hence,
Colorado Outfitters, Inc. Journal entries
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
(105,600-36,000)
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.
Answer:
$49,084.51
Explanation:
days of sales outstanding (DSO) = accounts receivable / average daily sales
71 days = $205,000 / (total sales / 365 days)
total sales / 365 days = $205,000 / 71 days
total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24
after the change, annual sales will decrease by 15%:
$1,053,873.24 x (1 - 15%) = $895,792.25
average sales per day = $895,792.25 / 365 = $2,454.23 per day
new DSO = accounts receivable / average sales per day
20 days = accounts receivable / $2,454.23 per day
accounts receivable = $2,454.23 per day x 20 days = $49,084.51
A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?
and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
Compute the amount of overhead assigned to Slime.
a) $1,350,000
b) $2,025,000
c) $1,645,234d) $1,840,000
Answer:
Total allocated overhead= $1,840,000
Explanation:
Giving the following information:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Ordering and Receiving= 800,000/2,000= $400 per order
Mixing= 1,000,000/50,000= $20 per mixing hour
Testing= 900,000/1,500 = $600 per test
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Ordering and Receiving= 400*1,600= 640,000
Mixing=20*30,000= 600,000
Testing= 600*1,000= 600,000
Total allocated overhead= $1,840,000
Create a chart containing the three forms of business organizations: proprietorships, partnerships, and corporations. Include key users of financial information, and briefly explain their roles.
Answer:
a. Owner
b. Partners
c. Stakeholders
Explanation:
The key users of financial information of a proprietorship is the owner.
The key users of financial information of a partnership are partners.
The key users of financial information of a corporation are the stakeholders.
In a proprietorship the owner invests, manages and gains profit from the organization.
In a partnership the partners invest, manage and each partner gain profits from the organization.
While in a corporation the shareholders invest, the employees manage and the profits made are gained by the shareholders in the form of dividends.
Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Answer:
$2,500
Explanation:
Opening balance $12,000
Cash receipts $30,000
Cash disbursement ($34,500)
Closing balance $7,500
Minimum cash balance $10,000
Borrowing amount(1$0,000-$7,500) $2,500
To maintain $10,000 cash balance western company need to borrow $2,500($10,000-$7500)
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $5,000 cash and $21,500 of photography equipment in the company in exchange for common stock. 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $950 cash. 20 The company received $2,250 cash in photography fees earned. 31 The company paid $882 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Pose-for-Pics
General Journal:
August 1:
Debit Cash Account $5,000
Debit Photograph Equipment $21,500
Credit Common Stock $26,500
To record the investment of cash and equipment by Madison Harris.
August 2:
Debit Insurance Prepaid $2,400
Credit Cash Account $2,400
To record the payment for insurance for 24 months.
August 5:
Debit Office Supplies $950
Credit CAsh Account $950
To record the purchase of office supplies.
August 20:
Debit Cash Account $2,250
Credit Photography Fees Earned $2,250
To record the receipt of cash for fees.
August 31:
Debit Utilities Expense $882
Credit Cash Account $882
To record the payment of cash for August utilities.
Explanation:
The general journal entries are used to initiate the recording of business transactions as they occur on a daily basis. While there other specialized journals, the general journal can be used to record any type of transaction. The journal shows the accounts that are debited and credited in the general ledger.
A dummy user at Universal Containers owns more that 10,000 lead records. The system assigned all these leads to a dummy user. This is causing performance issues whenever role hierarchy changes. Which two options should be recommended to improve performance
Answer:
The situation described in the question is referred to as:
Condition Ownership Data Skew.
When designing record access for enterprise-scale, it would be a mistake to assign a role to a dummy user.
To correct the above problem, It is advisable to distribute the ownership of records across a large number of users.
This ususally has the effect of decreasing the chance of occurrence of long-running updates.
Cheers!
Green T-Shirt Processing incurs only fixed and variable costs in its operations. When 10,000 T-shirts are produced, the company’s managerial accountant noted a fixed cost per shirt of $1.00 and a variable cost per pot of $6.00.
If production is expected to increase, which of the following statements is true?a. The fixed cost per T-shirt will not change; the variable cost per T-shirt will decrease.b. Total fixed costs will decrease; the variable cost per T-shirt will not change.c. The fixed cost per T-shirt will decrease; the variable cost per T-shirt will increase.d. Total fixed costs will remain unchanged; total variable costs will increase
Answer:
.d. Total fixed costs will remain unchanged; total variable costs will increase
Explanation:
Fixed cost is cost that does not vary with production e.g rent
Variable costs are costs that vary with production. If production increases, variable costs rises and if production is reduced, variable cost falls. Examples of variable costs are wages and cost of raw materials.
If production increases, more workers and raw materials would be needed, so variable cost would increase.
I hope my answer helps you
Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. Which of the following is true regarding the offer of the reward?A. The bank is likely to prevail because Ursula only provided past consideration.
B. The bank is likely to prevail because Ursula was tainted by being Victor's girlfriend.
C. The bank is likely to prevail because no valid bilateral contract existed.
D. Ursula is likely to prevail because a valid bilateral contract existed.
E. Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.
Answer:
E. Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.
Explanation:
A unilateral contract is in existence because safe bank has made an offer to pay $10,000. And in a unilateral contract when an offerer like safe bank makes an offer, the offer is accepted through actual performance which Ted has done through information Ursula provided. Therefore Ursula would prevail because unilateral contracts are enforceable by the law.
Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
The question is incomplete. Here is the complete question.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:______
Answer:
$11.5
Explanation:
The data that was gotten from Keller company stockholders equity account include:
Amount shares in common stock is 20,000 shares
The number of issued shares is 10,000
Number of outstanding shares is 9,000
The excess paid-in capital is $100,000
The common stock is 50,000
The retained earnings is 25,000
Treasury stock is 11,500
The first step is to calculate the amount of shares that was acquired in the treasury stock
= Number of issued shares-number of outstanding shares
= 10,000-9,000
= 1,000
Therefore, the cost per share of the stock in the treasury can be calculated as follows
= Treasury stock value/amount of shares acquired
= 11,500/1,000
= 11.5
Hence the cost per share of the treasury stock is $11.5
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5.93 % 6.09 % What is the price per $ 100 face value of a four-year, zero-coupon, risk-free bond?
Answer:
The answer is $79.42
Explanation:
Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.
N(Number of periods) = 4 years
I/Y(Yield to maturity) = 5.93 percent
PV(present value or market price) = ?
PMT( coupon payment) = 0
FV( Future value or par value) = $100
We are using a Financial calculator for this.
N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42
Therefore, the market price of the bond is $79.42
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method
Nov. 5 Purchased 600 units of product at a cost ot s10 per unit. Terms of the sale are 2/10, n/60 the invoice is dated
Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit.
Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7.
Answer:
A Merchandising Company
Journal Entries:
Nov. 5:
Debit Inventory $6,000
Credit Accounts Payable $6,000
To record the purchase of 600 units of a product at a cost of $10 per unit, terms, 2/10, n/60.
Nov. 7:
Debit Accounts Payable $250
Credit Inventory $250
To record the return of 25 defective units.
Nov. 15:
Debit Accounts Payable $5,750
Credit Cash Discount $115
Credit Cash Account $5,635
To record payment on account.
Explanation:
The journal entries show the accounts affected by each transaction. Two or more accounts are usually affected. One account receives value and is debited and the other gives value, and it is credited.
The trade terms 2/10, n/60 implies that a cash discount of 2% on the outstanding balance exists for early settlement on account within 10 days and the credit period should not exceed 60 days or two months.
Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.
Wooden no. 2 pencils
Copper (hint: there are many sellers)
Local public utilities (ex. water, electricity)
Peanut butter
Lipstick
Answer:
Wooden no. 2 pencils
Perfectly competitive market because there are many buyers and suppliers of pencils. Also, wooden no. 2 pencils are basically identical no matter which brand you purchase.Copper (hint: there are many sellers)
Copper is considered a commodity which has many suppliers and consumers around the world, therefore, it is classified as a perfectly competitive market. No individual supplier, nor any individual consumer has enough market power to affect the price and supply of copper.Local public utilities (ex. water, electricity)
Monopolistic market because there are generally only one supplier of each type of public utilities, e.g. one water company per city.Peanut butter
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several peanut butter brands, no two brands offer the same peanut butter.Lipstick
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several lipstick brands, no two brands offer the same lipstick.In this way, it should be classified.
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