Answer:
($148 million)
Explanation:
Calculation to determine Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021
Cash flow from Investing activities ($ Million)
Proceeds from sale of land 12
Purchase of Investment (160)
Net cash inflows (outflows) from Investing activities ($148)
Therefore Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021 will be ($148 million)
Distributions from corporations to the shareholders in a nonliquidating distribution will usually be classified as a dividend up to the amount of the corporation's retained earnings stock basis taxable income for the year earnings and profits.
a. True
b. False
Answer: Earnings and profits.
Explanation:
This is not a true or false question as the options are given first.
It is assumed that dividends comes from earnings and profits so when a company distributes dividends, the total amount of those dividends cannot exceed the total amount of accumulated earnings and profits that the company has.
If the dividends exceed this amount, then they are to be considered as a return on capital to the shareholder and this is beholden to a different tax regime.
which of the following is not a dimensions of difference between an and owner manager?risk taking, motivation, time orientation, financial management.
Ivanhoe Co. purchases land and constructs a service station and car wash for a total of $465000. At January 2, 2021, when construction is completed, the facility and land on which it was constructed are sold to a major oil company for $500000 and immediately leased from the oil company by Ivanhoe. Fair value of the land at time of the sale was $45000. The lease is a 10-year, noncancelable lease. Ivanhoe uses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value. Title to the facility and land will pass to Ivanhoe at termination of the lease. A partial amortization schedule for this lease is as follow:
Payments Interest Amortization Balance
Jan 2 2018 510000.00
Dec. 31, 2018 $83000.15 $51000.00 $32000. 47 7999.85
Dec. 31, 2019 83000.15 47799.99 35200. 44 2799.69
Dec. 31, 2020 83000.15 44279.97 38720.18 40 4079.51
The total lease-related expenses recognized by the lessee during 2021 is:_________
Answer:
$80,833.32
Explanation:
Correct date "Jan 2 2019 510000.00
Dec. 31, 2019 $83000.15 $51000.00 $32000. 47 7999.85
Dec. 31, 2021 83000.15 47799.99 35200. 44 2799.69
Dec. 31, 2022 83000.15 44279.97 38720.18 40 4079.51"
Computation of Lease related Expense Recognized by lessee in 2019
Depreciation Expense = (Total cost - Salvage value) / Estimated life
Depreciation Expense = $500,000 - $45,000 / 15
Depreciation Expense = $33,033.33
Interest Expense = $47,799.99
Total lease-related expenses = Depreciation Expense + Interest Expense
Total lease-related expenses = $33,033.33 + $47,799.99
Total lease-related expenses = $80,833.32
he following labor standards have been established for a particular product: Standard labor-hours per unit of output 10.1 hours Standard labor rate $ 13.90 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,900 hours Actual total labor cost $ 106,650 Actual output 1,100 units
What is the labor efficiency variance for the month?
a. $47,779 F
b. $47,779 U
c. $43,335 F
d. $44,619 F
Answer:
d. $44,619 Favorable
Explanation:
Given the above information, labor efficiency variance is computed as;
= (Standard quantity - Actual quantity) × Standard rate
Standard quantity = 10.1 × 1,100 = 11110
Actual quantity = 7,900
Standard rate = $13.9
Then,
Labor efficiency variance =
(11,110 - 7,900) × $13.90
= (3,210) × $13.90
= $44,619 favorable
You are an insurance salesman. If you make 12% on all insurance sales and sold an average $35,000 / month, how much money did you make at the end of 12 months?
Answer:
$50,400
Explanation:
To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.
Gundy Company expects to produce 1,213,200 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 114,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1. In March 2020, the company incurs the following costs in producing 97,000 units: direct materials $515,000, direct labor $670,000, and variable overhead $1,073,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Answer:
Gundy Company
Flexible Budget Report for March 2020:
Actual Budget Flexible Budget Variance
Direct materials $515,000 $485,000 $30,000 U
Direct labor 670,000 679,000 9,000 F
Variable overhead 1,073,000 1,067,000 6,000 U
Actual fixed costs 679,000 679,000 0 None
Total costs incurred $2,937,000 $2,910,000 $27,000 U
Explanation:
a) Data and Calculations:
Expected production of Product XX in 2020 = 1,213,200 units
Monthly production range = 80,000 to 114,000 units
Budgeted variable manufacturing costs per unit are:
Direct materials $5
Direct labor $7
Overhead $11
Total variable $23
Fixed manufacturing costs per unit:
Depreciation are $6
Supervision are $1
Total fixed costs $7
Total costs = $30
March 2020 costs incurred for 97,000 units:
Direct materials $515,000
Direct labor $670,000
Variable overhead $1,073,000
Actual fixed costs 679,000
Total costs incurred $2,937,000
Flexible Budget Report for March 2020:
Actual Budget Flexible Budget Variance
Direct materials $515,000 $485,000 $30,000 U
Direct labor 670,000 679,000 9,000 F
Variable overhead 1,073,000 1,067,000 6,000 U
Actual fixed costs 679,000 679,000 0 None
Total costs incurred $2,937,000 $2,910,000 $27,000 U
A customer of a bank is skiing at her favorite ski resort. As she is riding the ski lift, her cell phone dings with a text reminding her to pay her credit card in the next few days before the deadline. She really enjoys how her bank sends her reminders and timely messages, and this builds her loyalty to the bank. This example illustrates which unique attribute associated specifically with digital marketing?
A. It is providing general information.
B. It is mobile and portable.
C. It is raising the bank's brand awareness.
Answer:
The correct answer is the option B: It is mobile and portable.
Explanation:
To begin with, nowadays the digital marketing is considered to be part of the marketing itself as an integrated point of it whose main purpose is to aim for the target audience through digital channels such as the social medias and the web pages. Therefore that this strategy comes with the attribute of being mobile and portable due to the fact that most of the new technologies are now sharing that characteristic and so the new generations are so used to it that it will turn out impossible for them to live without tecnology. So that is why that the best attribute that is ilustrated in the example shown is the mobile and portable characteristics of the digital marketing that strikes the customer at every place or hour.
A company's unit costs based on 100,000 units are:
Variable costs $75
Fixed costs 30
The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
The opportunity cost associated with this order is:_________.
a. $495,000
b. $270,000
c. $405,000
d. $225,000
Answer: b. $270,000
Explanation:
The opportunity cost is the contribution margin of sales that would be foregone if the special order was fulfilled.
Contribution margin = Selling price - Variable cost
= 165 - 75
= $90
Total contribution cost for the 3,000 units that will be foregone:
= 90 * 3,000
= $270,000
The accountant for Christiane Company forgot to make an adjusting entry for Depreciation expense for the current year. Which of the following is one of the effects of this error in the current year?
A. Revenues are overstated.
B. Net income is understated.
C. Total assets are overstated.
D. Total assets are understated.
Answer:
B. Net income is understated.
Explanation:
While computing the bills for an organization, if one makes an error while valuation of the of the goods or an inventory or a depreciation expenses, on the balance sheet, then it causes a corresponding error in the balance sheet for the company, which is represented on the income statement.
Thus in the context, when the accountant of Christiane company did not make an entry of the depreciation cost in the balance sheet for the current year, it produces an error for the current year in the form of the net income that is being understated.
why is it important to examine demand relationship
Answer:
The demand relationship, is I am correct in my assumption that this is a reference to a marketing course, is of utmost importance. A company will not implement a new product if there is no customers.
Explanation:
Demand refers to the amount fo demand seen from possible custoemrs. The higher the demand, the more the people with to purchse a product.
The Pampered Pet Shop operates in a perfectly competitive industry and hires you as an economic consultant. The firm is currently producing at a point where market price equals its marginal cost. Its market price is less than its average variable cost. You advise the firm to:_____.
a. raise its price until it breaks even.
b. lower it's price so it can sell more units of output.
c. cease production immediately, because it is incurring a loss.
d. produce in the short run to minimize its loss, but exit the industry in the long run.
Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
Answer: cease production immediately, because it is incurring a loss
Explanation:
A perfectly competitive industry is an industry whereby firms make similar products, and there are many firms and customers.
Since from the scenario, the market price is less than its average variable cost, it is advisable for the firm to stop producing. This is because the firm isn't covering its variable cost, therefore it's running at a loss.
Dollarizing means __________.
a. depreciating the dollar.
b. using the U.S. dollar as the currency of a country outside the United States.
c. exchanging other currencies for dollars.
d. none of the above.
Answer:
b. using the U.S. dollar as the currency of a country outside the United States.
Explanation:
Dollarizing is a term used when a country starts to recognize United States Dollar as legal tender or a medium of exchange as a currency along with the existing currency of the country.
Therefore the option B is correct answer.
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.
Required:
a. What journal entry will PHN Foods prepare to record executive compensation regarding these shares at December 31, 2019 and December 31, 2020?
b. When calculating diluted EPS at December 31, 2020, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2020?
Answer:
A. 2019
Dr Compensation expense $30 million
Cr Paid-in capital—restricted stock $30 million
2020
Dr Compensation expense $30 million
Cr Paid in capital-restricted stock $30 million
B. $12 million
Explanation:
a. Calculation to determine What journal entry will PHN Foods prepare to record executive compensation regarding these shares at December 31, 2019 and December 31, 2020
First step is to calculate the fair value of award using this formula
Fair value of award=Fair value per option×Options granted
Let plug in the formula
Fair value of award=$5*18 million
Fair value of award=$90 million
Based on the above calculation the amount of $90 million total compensation will be expensed equally over the vesting period of 3 years thereby reducing Earnings by the amount of $30 million calculated as ($90 million/3 years) each year
Now let Prepare the journal entry
2019
Dr Compensation expense $30 million
Cr Paid-in capital—restricted stock $30 million
($90 million/3 years)
2020
Dr Compensation expense $30 million
Cr Paid in capital-restricted stock $30 million
($90 million/3 years)
b. Calculation to determine what will be the net increase in the denominator of the EPS fraction
Using this formula
EPS fraction net increase= 2020 shares - Restricted shares
Let plug in the formula
EPS fraction net increase= $30 million - $18 million
EPS fraction net increase= $12 million
Theretore what will be the net increase in the denominator of the EPS fraction iis $12 million
Howell Company has the following selected accounts after posting adjusting entries:
Accounts Payable $45,000
Notes Payable, 3 - month 80,000
Accumulated Depreciation - Equipment 14,000
Payroll and Benefits Payable 27,000
Notes Payable, 5-year, 8% 30,000
Estimated Warranty Liability 34,000
Payroll Tax Expense 6,000
Interest Payable 3,000
Mortgage Payable 200,000
Sales Tax Payable 16,000
Instructions:
(a) Prepare the current liability section of Howell Company's balance sheet, assuming $25,000 of the mortgage is payable next year.
(b) Comment on Howell's liquidity, assuming total current assets are $450,000.
Answer and Explanation:
a. The preparation of the current liability section is presented below;
Notes payable - 3 months $80,000
Accounts payable $45,000
Estimated warranty liabilities $34,000
Payroll and benefit payable $27,000
Current portion of the Mortgage $25,000
Sales Tax payable $16,000
Interest payable $3,000
Total $230,000
b. We know that
Current ratio = current asset ÷ current liabilty
= $450,000 ÷ $230,000
= 1.95 times
This represent the company is in the good liquidity position to pay off the short term liability
Zooey Inc. issued 8% bonds with a face of $760,000,000 for $696,000,000 cash on January 1, 2021, when the market effective rate was 10%. Zooey pays interest semiannually on June 30 and December 31, records interest at the effective rate, and elected the option to report these bonds at their fair value at year-end, 12/31. There was no change in rates during the first 6 months of 2021. On December 31, 2021, the fair value of the bonds was $712,000,000, and $1,000,000 of the increase in fair value was due to a change in the general (risk-free) rate of interest.
Required:
1. Record the first interest payment on June 30, 2021.
2. Record the second interest payment on on December 31, 2021.
3. Record the fair value adjustment on December 31, 2021.
Answer:
1.June 30, 2021
Dr Interest expense $34,800,000
Cr Discount on bonds payable $4,400,000
Cr Cash $30,400,000
2. Dec.31,2021
Dr Interest expense $35,020,000
Cr Discount on bonds payable $4,620,000
Cr Cash $30,400,000
3. Dec.31,2021
Dr Unrealized holding loss- NI $1,000,000
Dr Unrealized holding loss- OCI $24,020,000
Cr Fair value adjustment $25,020,000
Explanation:
1. Preparation of the journal entry to Record the first interest payment on June 30, 2021.
June 30, 2021
Dr Interest expense $34,800,000
($696,000,000 * 10%/2)
Cr Discount on bonds payable $4,400,000
($34,800,000-$30,400,000)
Cr Cash $30,400,000
($760,000,000 * 8%2)
(To record the first interest payment)
2. Preparation of the journal entry to Record the second interest payment on on December 31, 2021.
Dec.31,2021
Dr Interest expense $35,020,000
[($696,000,000+$4,400,000)* 10%/2]
Cr Discount on bonds payable $4,620,000
($35,020,000-$30,400,000)
Cr Cash $30,400,000
($760,000,000 * 8%2)
(To record the second interest payment)
3. Preparation of the journal entry to Record the fair value adjustment on December 31, 2021.
Dec.31,2021
Dr Unrealized holding loss- NI $1,000,000
Dr Unrealized holding loss- OCI $24,020,000
($25,020,000-$1,000,000)
Cr Fair value adjustment $25,020,000
($712,000,000-$696,000,000+$4,400,000+$4,620,000)
(To adjust the bonds to their fair value)
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:
Total Activity
Activity Cost Pools Total Cost Product A Product B Total
Activity 1 $23,205 900 150 1,050
Activity 2 $38,850 1,950 1,550 3,500
Activity 3 $10,598 145 245 390
The activity rate for Activity 2 is closest to:______.
a. 43.17.
b. 25.06.
c. 19.92.
d. 11.10.
Answer:
Predetermined manufacturing overhead rate (A2)= $11.1
Explanation:
Giving the following information:
Total Activity
Activity Cost Pools Total Cost Total
Activity 2 $38,850 3,500
To calculate the activity rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate (A2)= 38,850 / 3,500
Predetermined manufacturing overhead rate (A2)= $11.1
On March 1, 2021, McHugh Enterprises issued 1000 of its 8%, $1,000 bonds dated January 1, 2021 at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. McHugh paid $50,000 in bond issue costs. McHugh uses straight-line amortization. The interest expense recognized on July 1, 2021 will be:__________
Answer: $82000
Explanation:
Interest will be calculated as:
= No of shares x Face value per Share x Interest rate
= 1000 × $1000 × 8%
= 1000 × $1000 × 0.08
= $80000
Total face value of shares issued = 1000 × $1000 = $1,000,000
Issue Amount will be:
= No of shares x Face value per Share x Issue rate
= 1,000 x 1,000 x 98 %
= $980,000
Discount on issue will be:
= $1,000,000 - $980,000
= $20,000
Amortization of Discount on issue per annum will be:
= $20,000/10
= $2000
Therefore, interest expense will be:
= $80000 + $2000
= $82000
Sabrina Company borrowed $225,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal payments of $24,704, including principal and interest at the end of every year for 15 years. Rounded to the nearest dollar, determine the balance in the Instalment Note Payable account on January 1, 2021, after making the first two annual payments.
a. $189,613.
b. $206,466.
c. $199.194.
d. $216,046.
Answer:
The correct option is b. $206,466.
Explanation:
Interest expense on December 31, 2019 = Note payable on January 1, 2019 * Interest rate = $225,000 * 7% = $15,750
Principal paid on December 31, 2019 = Annual fixed installment - Interest expense on December 31, 2019 = $24,704 - $15,750 = $8,954
Note Payable balance on January 1, 2020 = Note payable on January 1, 2019 - Principal paid on December 31, 2019 = $225,000 - $8,954 = $216,046
Interest expense on December 31, 2020 = Note payable on January 1, 2020 * Interest rate =$216,046 * 7% = $15,123
Principal paid on December 31, 2020 = Annual fixed installment - Interest expense on December 31, 2020 = $24,704 - $15,123 = $9,581
Note Payable balance on January 1, 2021 = Note payable balance on January 1, 2020 - Principal paid on December 31, 2020 = $216,046 - $9,581 = 206,465
From the options in the question, the closest one to the Note Payable balance on January 1, 2021 calculated above is b. $206,466. Therefore, the correct option is b. $206,466.
Benchmarking refers to
a. comparing a firm's ratios to a meaningful standard
b. claiming a geographic area (state, region, etc) for doing business
c. influencing the prices charged by suppliers, or setting prices charged to customers
d. reducing price until dollar volume increases
Answer:
A
Explanation:
Benchmarking is the process of comparing a firm's ratio to a meaningful standard. the standard could be industry average, comparable firms ratios or the standardized ratio
Benchmarking can be used to know the performance of a company when compared to other firms
it can also be used to determine if a stock's value is overvalued or undervalued.
For example, if the price of a stock when calculated with CAPM is $14 and the stock is selling for $20. We can determine that the stock is overvalued. this can help the firm or investors determine the appropriate action
for example, an investor can decide to sell the overvalued stock
On January 1, year 1, Boston Group issued $100,000 par value, 5% five-year bonds when the market rate of interest was 8%. Interest is payable annually on December 31. The following present value information is available:
5% 8%
Present value of $1 (n=5) 0.78353 0.68058
Present value of an ordinary annuity (n =5) 4.32948 3.99271
Required:
What amount is the value of net bonds payable at the end of year 1?
Answer:
$90,064
Explanation:
Calculation to determine what amount is the value of net bonds payable at the end of year 1
First step is to calculate the amortization Amount
Amortization=(100,000 x .68058 )+[(100,000 x .05)*3.99271]
Amortization= 68,058+(5,000 x 3.99271)
Amortization= 68,058 + 19,964
Amortization= 88,022
Now let calculate the value of net bonds payable
Value of net bonds payable=88,022+[(88,022 x .08)-5,000]
Value of net bonds payable=88,022+(7042-5000)
Value of net bonds payable=88,022 + 2,042
Value of net bonds payable = $90,064
Therefore what amount is the value of net bonds payable at the end of year 1 is $90,064
TO: All Employees SUBJECT: New Accounting Supervisor at KBL Toys, Starting August 4
(1) I am writing to inform you that KBL has hired a new accounting supervisor, Carly Jamison.
(2) Carly will begin work here on Monday, August 4.
(3) Carly received her master’s degree from Sacramento State earlier this year.
(4) She is excited to be with our company.
(5) We are happy to have someone in her position who believes strongly in our company’s mission.
(6) A welcome luncheon has been scheduled so you can learn more about Carly.
(7) We invite each and every employee to the luncheon on Thursday, August 14, at noon.
(8) Reservations can be made by contacting Sandy at extension 3410. Regards, Which of the following would be an effective goodwill close for the message above?
a. Sentence 3
b. Sentence 6
c. Sentence 8
d. (both b and c above)
The effective goodwill close for the message above is Sentence 8. The appropriate response is option C.
What is a goodwill message ?In the workplace, goodwill messages are intended to convey warmth and generosity. Positive feedback, compliments, and expressions of appreciation are a few examples of goodwill messages.
These remarks are only focused on the recipient. You may remark, for example, I truly like how you carried yourself with such grace and poise in the field today given the challenging conditions. It demand a level of sincerity and verbal care that few other situations do.
In the context of professional work, "goodwill" refers to a receptive, cordial, helpful, and trustworthy attitude or sentiment.
Hence, the appropriate response is option C.
To learn more about goodwill message
https://brainly.com/question/4045850
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A posting reference in a ___ includes the page number of the account debited or credited in the ___ and serves as a link to cross-reference the transaction from one record to another.
Answer:
Ledger; journal.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Thus, it is a field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
A general journal is used for initially recording a transaction before it's then subsequently transferred or posted to the general ledger. In Financial accounting, this process of transferring information about a transaction from the general journal to the general ledger is known as posting.
Furthermore, the main purpose of a general ledger is to list all accounts used in recording an organization's transactions and as such it contains a list of transactions affecting each account and the account's balance.
The page number of the account debited or credited in the journal is written in a posting reference of a ledger and it usually serves as a link to cross-reference or juxtapose the transaction from one record to another in a business firm.
Kemper Company's balance sheet and income statement are shown below (in millions of dollars). The company and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $5 preferred will be exchanged for one share of $1.00 preferred with a par value of $25 plus one 9% subordinated income debenture with a par value of $75. The $9 preferred issue will be retired with cash. The company's tax rate is 30 percent.
Balance Sheet prior to Reorganization (in millions
Current Assets 400 Current liabilities 350
Net fixed assets 450 Advance payments 20
$5 preferred stock, $100 par value (1,000,000) shares 100
$9 preferred stock, no par, callable at 100 (160,000 shares) 30
Common stock, $0.10 par value (10,000,000) shares 50
Retained earnings 300
Total assets 850 Total claims 850
a. Construct the pro forma balance sheet after reorganization takes place. Show the new preferred at its par value.
b. Construct the pro forma income statement after reorganization takes place. How does the recapitalization affect net income available to common stockholders?
Answer:
Kemper Company
a. Pro forma Balance Sheet after Reorganization (in millions)
Current Assets 400
Net fixed assets 450
Total assets 850
Current liabilities 350
Advance payments 20
9% subordinated Debenture,
$75 par value (1,000,000) 75
$1 preferred stock, $25 par value
(1,000,000) shares 25
Common stock, $0.10 par value
(10,000,000) shares 50
Retained earnings 300
b. Pro forma Income Statement after Reorganization (in millions)
Retained earnings 300
Income tax 128.6 ($300/(1 - 0.3) - $300)
add $5 preferred dividend 5
$9 preferred dividend 1.44
Less: 9% debenture interest (6.75)
Income before taxes $428.29
Income tax 128.49
Income after taxes $299.80
Preferred dividend 1.00
Retained earnings $298.80
The recapitalization reduces the net income available to common stockholders by $0.2 million.
Explanation:
a) Data and Calculations:
Kemper Company
Balance Sheet prior to Reorganization (in millions
Current Assets 400
Net fixed assets 450
Total assets 850
Current liabilities 350
Advance payments 20
$5 preferred stock, $100 par value
(1,000,000) shares 100
$9 preferred stock, no par,
callable at 100 (160,000 shares) 30
Common stock, $0.10 par value
(10,000,000) shares 50
Retained earnings 300
Total assets 850 Total claims 850
Transaction Analysis:
$5 preferred stock, $100 par value (1,000,000) shares $100 $1 Preferred stock, $25 par value (1,000,000) shares $25 9% subordinated Debenture, $75 par value (1,000,000) $75
$9 preferred stock, no par, callable at 100 (160,000 shares) 30 Cash $30
Total assets 850 Total claims 850
For what reason might keeping an accounts payable subsidiary ledger be unnecessary for a business? A. if the business is very small B. if the business processes invoices for payment. C. if the business pays only on account D. if the business has more customers then vendors
Answer:
A. if the business is very small
Explanation:
Subsidiary ledgers are maintained to support the entries in the main ledger. They give more details of the individual items in the main ledger.
They are usually used when a company has large sales volumes to make sure transactions are accurate.
However in small businesses there no need for subsidiary ledger in a small company.
Accounts payable subsidiary ledger shows details of amounts owed to suppliers by a business.
When the business is very small there will be no need for this.
Foreign Sub, for which the functional currency is the local currency, recognizes a receivable on 11/12/20X1. On December 31, 20X1, Foreign Sub's parent company determines that the exchange rate has changed since the receivable was recognized. In its consolidated financial statements, the parent company should report Foreign Sub's receivable using the exchange rate:_______
a. in effect on 12/31/20X1.
b. that results in the highest reported receivable.
c. in effect on 11/12/20X1.
d. that results in the lowest reported receivable.
Answer:
c. in effect on 11/12/20X1.
Explanation:
According to IAS 21 the exchange rate used to record financial transactions in consolidated statement is the exchange rate at which the transaction took place. There is allowance to used an average rate if the historic rate is not accurate. The receivable should be recorded at the exchange rate which was in effect on 11/12/20X1.
You are registering for a technology conference which includes the following:
a. Registering for the conference
b. Registering for specific sessions
c. Booking airline travel
d. Booking a car rental
e. Making reservations at a restaurant
Hi, you've asked an incomplete question. The remaining part of the question reads;
Think about some of the pieces are they just data? or are they put into a meaningful context? are they something that is known? Listed, are some of the things that you may do when you register/ travel for a conference. Think about the different things and select either data, information or knowledge.
1. Data of the conference -- select either data, information, or knowledge
2. Confirmation of conference registration-- select either data, information, or knowledge.
3. List of specific sessions-- select either data, information, or knowledge.
4. Upcoming technology conferences--select either data, information, or knowledge.
5. Confirmation of registered sessions -- select either data, information, or knowledge.
6. Limit of airline schedules -- select either data, information, or knowledge.
7. Upcoming airline specials -- select either data, information, or knowledge
8. Completed airline reservation -- select either data, information, or knowledge.
9. Completed car rental reservations -- select either data, information, or knowledge.
10. List of deals at special restaurants-- select either data, information, or knowledge
11. List of restaurants in the area -- select either data, information, or knowledge.
12. List of different rental cars -- select either data, information, or knowledge.
13. Confirmation of rental cars -- select either data, information, or knowledge.
Explanation:
Key terms definition:
data: can basically refer to a collection of raw facts that are not arranged in any meaningful context.information: this refers to data that has been processed/arranged into meaningful context.knowledge: can be defined as the awareness or understanding of a particular subject or thing based on experience.Answer:
Hence, based on the definition of key terms above we could make a classification of the different things below:
Data of the conference: data of the conference as data.Confirmation of conference registration= informationList of specific sessions= information.Upcoming technology conferences= information.Confirmation of registered sessions= knowledge.Limit of airline schedules= data.Upcoming airline specials= information.Completed airline reservation= information.Completed car rental reservations= knowledge.List of deals at special restaurants= data.List of restaurants in the area= data.List of different rental cars= data.Confirmation of rental cars= knowledge.
Explain how introducing an agile method will improve the outcomes of software development?
Answer:
In simple words, Agile architecture, in fact, speeds up the distribution of original market value and ensures that quality is maximized during the implementation system by a process of constant preparation and feedback.
Projects are finished in shorter iterations, rendering them more achievable, thanks to the incremental design of the agile process. It also makes it possible to roll out goods efficiently and make adjustments at any time throughout the phase
Selected data for Miller Company, which operates three departments, follow:
Department A Department B Department C
Inventory $120,000 $432,000 $168,000
Equipment (average cost) $1,080,000 $648,000 $432,000
Payroll $810,000 $720,000 $270,000
Square feet of floor space 18,000 9,000 3,000
During the year, the company's fixed expenses included the following:
Depreciation on equipment $120,000
Real estate taxes 36,000
Personal property taxes (on inventory and equipment) 57,600
Personnel department expenses 40,000
Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.
Do not round until your final answer. Round final answer to the nearest whole number.
Department A Department B Department C
Depreciation
Real estate taxes
Personal property taxes
Personnel dept. expenses
Answer:
From the attached excel file, total cost allocated are as follows:
Deparment A = $99,600
Department B = $73,600
Department C = $51,600
Common cost = $57,600
Explanation:
Note: See the attached excel for the schedule assigning the fixed expenses to the three departments.
In the attached excel file, the following formulae are used to allocate costs to each department:
Depreciation on equipment (based on average cost of equipment) = Depreciation on equipment * (Average cost of equipment of a department / Total average cost of equipment of the three departments)
Real estate taxes (based on Square feet of floor space) = Real estate taxes * (Square feet of floor space of a department / Total square feet of floor space of the three departments)
Personal property taxes: This is a common cost. It cannot therefore be allocated.
Personnel department expenses (based on payroll) = Personnel department expenses * (Payroll of a department / Payroll of the three departments)
Ryan's Express has total credit sales for the year of $189,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:
a. Allowance for Doubtful Accounts has a credit balance of $925.
b. Allowance for Doubtful Accounts has a debit balance of $385.
Answer:
a. Date Account title Debit Credit
Bad debt expenses $4,745
(3%*189,000 - $925)
Allowance for doubtful account $4,745
(To record the adjusting entry)
a. Date Account title Debit Credit
Bad debt expenses $1,505
(3%*189,000 - $385)
Allowance for doubtful account $1,505
(To record the adjusting entry)
The financial statements for Highland Corporation included the following selected information:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
The common stock was sold at a price of $31 per share.
1. What is the amount o f additional paid-in capital?
2. What was the amount of retained earnings at the beginning of the year?
3. How many shares are in treasury stock?
Answer:
Highland Corporation
1. The amount of additional paid-in capital is:
= $210,000.
2. The amount of the retained earnings at the beginning of the year is:
= $440,000.
3. The number of shares in treasury stock is:
= 23,000 shares.
Explanation:
a) Data and Calculations:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
Price of common stock = $31 per share
1. The amount of additional paid-in capital is:
Issued stock = 100,000 * ($31 - $10) = $210,000
2. The amount of the retained earnings at the beginning of the year:
Retained earnings at the ending $ 770,000
Add dividend 690,000
Total available for distribution $1,460,000
Less Net income 1,020,000
Retained earnings at the beginning $440,000
3. Treasury stock = 23,000 (100,000 - 77,000)