Answer:
journal entries to record the December transactions
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
The General Journal consists of Entries of Expenses, Capital Expenditures and Receipts and Payments in Cash.
Zappos' product selection includes performance athletic shoes, outdoor coats, contemporary shirts, couture accessories, and more. This selection best illustrates the firm's:
Answer:
Product mix breadth
Explanation:
Product mix breadth refers to varieties of products offer for sale by a store. In a product mix breadth, all products being produced by a brand or company are sold.
Although, product mix breadth comprises varieties of product line, yet it is made up of all products produced and distributed by a company. For example, a store will little space or limited finance may opt to sell fewer product lines but would also make more choices available from the product lines being sold.
Holt Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 23% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 9%.
a. How far away is the horizon date?
I. The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero.
II. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.
III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2.
IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.
V. The terminal, or horizon, date is infinity since common stocks do not have a maturity date.
b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.
c. What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.
Answer:
a. How far away is the horizon date?
IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.
b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.
to determine the horizon value we can use the Gordon growth formula:
stock price = future dividend / (required rate of return - constant growth rate)
Div₀ = $3.75
Div₁ = $4.6125
Div₂ = $5.673375
Div₃ = $6.97825125
since the terminal value is calculated for year 2, we must use Div₃ in our calculations:
stock price = $6.97825125 / (9% - 6%) = $232.61
c. What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.
we have to calculate the present value of:
P₀ = $4.6125/1.09 + $5.673375/1.09² + $232.608375/1.09² = $4.2317 + $4.7752 + $195.7818 = $204.7887 ≈ $204.79
A firm is considering a replacement project which requires the initial outlay of $300,000 which includes both an after-tax salvage from the old asset of $12,000 and an additional working capital investment of $8,000. The 12-year project is expected to generate annual incremental cash flows of $54,000 and have an expected terminal value at the end of the project of $20,000. The cost of capital is 15 percent, and the firm's marginal tax rate is 40 percent. Calculate the net present value of this project.
Answer:
-3,548.43
Explanation:
DF = Discount factor
Year Cash flow DF(15%) Present Value
0 (300,000) 1 -300,000
1 54,000 0.870 46,956.52
2 54000 0.756 40,831.76
3 54000 0.658 35,505.88
4 54,000 0.572 30,874.68
5 54000 0.497 26,847.54
6 54000 0.432 23,345.69
7 54000 0.376 20,300.06
8 54000 0.327 17,652.70
9 54000 0.284 15,350.17
10 54000 0.247 13,347.97
11 54000 0.215 11,606.93
12 74000 0. 187 13,831.13
Year 12 calculation = 54000 +20000 x 0.6 + 8000
= 74000
NPV = -300,000 + 46,956.52 + 40,831.76 + 35,505.88 + 30,874.68 + 26,847.54 + 23,345.69 + 20,300.06 + 17,652.70 + 15,350.17 + 13,347.97 + 11,606.93 + 13,831.13
NPV = -3,548.43
1. A company sells a plant asset that originally cost $375,000 for $125,000 on December 31, 2017. The accumulated depreciation account had a balance of $150,000 after the current year's depreciation of $37,500 had been recorded. The company should recognize a
Answer:
The company should recognize a loss on sale of plant asset of $100,00.
Explanation:
The cost = $375,000
Accumulated Depreciation = $150,000
Therefore, book value = $225,000
This book value is compared with the sales value of $125,000.
There is a difference of $100,000 ($225,000 - $125,000).
Since the book value is greater than the sales value, it means that the plant asset was sold at a loss.
The cost is the amount at which the plant asset was purchased. The accumulated depreciation represents the cost that has been expensed so far. The sales value is the amount at which the plant asset was sold.
Betsy Rose owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments—Women's Apparel, Men's Apparel, Cosmetics, Housewares, Shoes, and Electronics—based on the basis of employee hours worked. Betsy Rose's daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Betsy Rose and her daughter have identified the following activities.
Required:
Determine a cost driver for each of the activities listed below.
a. Placing orders
b. Stocking merchandise
c. Waiting on customers
d. Janitorial and Maintenance
Answer:
Activity Cost Driver
a. Placing orders Number of Orders
b. Stocking merchandise Number of Orders
c. Waiting on customers Number of Customers
d. Janitorial and Maintenance Area/ Square feet occupied
Explanation:
Betsy Rose
(ABC). Activity Based Costing
Activity Cost Driver
a. Placing orders Number of Orders
b. Stocking merchandise Number of Orders
c. Waiting on customers Number of Customers
d. Janitorial and Maintenance Area/ Square feet occupied
In selecting a cost driver for an activity it must be kept in mind that the activity must be
1) directly linked with the cost driver
2) it should not have indirect expenses
3) should be specific for that activity.
For example the number of orders would not affect Janitorial and Maintenance services but the number of orders would affect placing orders or stocking merchandise.
Rachelle transfers property with a tax basis of $800 and a fair market value of $960 to a corporation in exchange for stock with a fair market value of $765 and $42 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $153 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Answer:
$842
Explanation:
The computation of corporation's tax basis in the property received in the exchange is shown below:-
corporation's tax basis = Fair market value + Transaction
= $800 + $42
= $842
Therefore, The corporation's tax basis should be equivalent to the shareholder's tax basis as the property is transferred for $800 (a substituted basis) and add gain recognized of $42. And If the corporation sells the property for $960, the recognized gain would be $52.
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $24,500 cash and inventory with a fair value of $23,600 (inside basis of $11,800) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $39,725. What is the amount and character of Randolph's gain or loss on the distribution
Answer:
3425 LOSS
Explanation:
Randolph gain or loss can be calculated as
Gain/loss = Cash distribution + Inventory distribution - Basis in RD
Gain/loss = $24,500 + $11,800 - $39,725
Gain/loss = (3425) LOSS
As You can see RD distributing cash and inventory and they are less than his basis in RD
A stock with a beta of 2.0 has an expected rate of return of 21%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock
Answer:
The answer is 5%
Explanation:
Solution
Given that:
A stock with a beta =2.0
The expected rate of return =21%
Market return turnout = 8%
Now,
Rf = risk free return
Rp = risk premium =Rm -Rf
β = 2.0
Thus
The expected return R = Rf +β *Rp
= Rf +β * (Rm -Rf)
R = Rf +2.0 (Rm -Rf)
=Rf + 2 times risk premium
So,
The market turns by 8%
R = Rf +2.0 (Rm -8%-Rf)
=Rf + 2 Rm-16%-2Rf
Then
The expected return is reduced by 16%
Hence,
21% -16% =5%
Therefore the expected rate of return on the stock is 5%
A change in price will lead to a change in __________ and to a change in __________, while a change in government subsidies will lead to a change in __________ and a change in the number of buyers will lead to a change in __________.
Answer:
quantity demanded; quantity supplied; supply; demand
Explanation:
When there is a change in price of goods, this change will lead to quantity demanded and it will also lead to a change in the quantity supplied. According to the law of demand, an increase in price will lead to a decrease in quantity demanded and vice-versa.
When there is a change in government susidies, this change will lead to a change in supply, and a change in the number of buyers will lead to a change in demand.
Therefore, the correct statement is:
A change in price will lead to a change in quantity demanded and to a change in quantity supplied, while a change in government subsidies will lead to a change in supply and a change in the number of buyers will lead to a change in demand.
Costs that do not change in total over wide ranges of volume. 2. Technique that estimates profit or loss results when conditions change. 3. The sales level at which operating income is zero. 4. Drop in sales a company can absorb without incurring an operating loss. 5. Combination of products that make up total sales. 6. Net sales revenue minus variable costs. 7. Describes how a cost changes as volume changes. 8. Costs that change in total in direct proportion to changes in volume. 9. The band of volume where total fixed costs and variable cost per unit remain constant.
Complete Question:
Match the terms with the correct definitions.
Answer:
1. Fixed costs: Costs that do not change in total over wide ranges of volume.
2. Sensitivity analysis: Technique that estimates profit or loss results when conditions change.
3. Breakeven point: The sales level at which operating income is zero.
4. Margin of safety: Drop in sales a company can absorb without incurring an operating loss.
5. Sales mix: Combination of products that make up total sales.
6. Contribution margin: Net sales revenue minus variable costs.
7. Cost behavior: Describes how a cost changes as volume changes.
8. Variable costs: Costs that change in total in direct proportion to changes in volume.
9. Relevant range: The band of volume where total fixed costs and variable cost per unit remain constant.
Explanation:
It is required that each term are matched with their respective correct definitions. The terms are generally associated with business and sales management.
For instance, fixed costs are indirect costs that do not change in total over wide ranges of volume and irrespective of the level of output (goods and services) e.g rent, salaries, property tax, insurance, depreciation etc.
Also variable costs are costs that change in total in direct proportion to changes in volume of goods and services e.g sales commission, utility costs, raw materials costs, credit card fees, direct labour costs etc.
Nelly is creating an executive committee in a large corporation in order to decide how to open a new subsidiary. The committee has representation from the sales, information technology, general management, and warehouse departments. She feels unsure whether to include someone from the accounting department because she thinks that accountants focus only on taxes and do not have much management expertise. What would you suggest
Answer: Accountants do much more than taxes and often participate in executive committeesbecause of their financial perspective. This committee should include someone from the accounting or finance department.
Explanation:
The options to the question are:
a. Accountants usually do not work on strategy or planning, so the executive committee doesnot need a representative from the accounting department.
b. Accountants will not help the executive committee. The committee does not need arepresentative from the accounting department.
c. Accountants do much more than taxes and often participate in executive committees because of their financial perspective. This committee should include someone from the accounting or finance department.
From the question, we are informed that Nelly is creating an executive committee in a large corporation in order to decide how to open a new subsidiary and that she is unsure whether to include someone from the accounting department because she thinks that accountants focus only on taxes and do not have much management expertise.
I would suggest that she needs to include an accountant. Accountants do much more than just taxes. She needs someone from the finance or accounting department that will help in the communication, and processing of every financial details regarding the company or whatever they intend doing. For every executive committee, the role of accountants cannot be understated as they participate in executive committees due to their financial perspective on certain issues.
The aim of every organization is cost minimization and profit maximization and an accountant can help in achieving these aims.
In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario: Without free trade, Sapphira has market power as a local producer. Once free trade is implemented in the local economy, Sapphira is no longer able to raise its prices above competitive levels. The previous scenario represents which of the following benefits of free trade?A. An enhanced flow of ideas B. Increased competition C. Lower costs through economies of scale D. Increased variety of goods
Answer:
B. Increased competition
Explanation:
Free trade is an economic policy where there are no restrictions to imports or export of goods and services.
Before the free trade, Sapphira had market power. She could set the price of her products. She would probably set her prices high enough to maximise profits.
Due to free trade which introduces more products to the market, sapphira is no longer able to set her prices as high as she used to. If her price is too high, consumers would not purchase her products.
This is an example of increased competition.
I hope my answer helps you
Darlene and her friends get together for lunch after work. While at lunch, the friends discuss what they can do to solve the problem of excessive overtime at work. Which of the following is true?
A. Darlene and her friends are not engaging in concerted activity because they don’t plan to talk to management about the problem. B. Darlene and her friends are engaging in concerted activity since they are discussing how to improve working conditions. C. Darlene and her friends are engaging in concerted activity only if they are union members. D. Darlene and her friends are not engaging in concerted activity because they are not in a union meeting.
Answer: B. Darlene and her friends are engaging in concerted activity since they are discussing how to improve working conditions.
Explanation:
Concerted Activity refers to activity that employees may engage in when they are trying to improve the conditions at their workplace without fear of Employer retaliation. Federal Law by the National Labor Relations Act protects the ability of workers to be able to meet and discuss how they can improve conditions and Employees do not even have to be in a Union to engage in such.
When engaged in a Concerted action, the employer has no right to in any way threaten your employment.
Darlene and her friends' actions are therefore considered a concerted activity as they are meeting to discuss how to improve a workplace problem.
Answer:
B. Darlene and her friends are engaging in concerted activity since they are discussing how to improve working conditions.
Explanation:
Concerted activity is defines as meeting between employees that concerns their working conditions and wages. This type of activity is protected by National Labour Relations Act, therefore it cannot be used as a basis for dismissal of an employee.
In the given scenario Darlene and her friends get together for lunch and discuss what they can do to solve the problem of excessive overtime at work.
This is a form of concerted activity on the part of Darlene and he coworkers since they are discussing working conditions.
The Kirkland Department of Delta Company began the month of December with beginning work in process of "4,000" units that are "100%" complete as to materials and "30%" complete as to conversion costs. Units transferred out are "10,000" units. Ending work in process contains "5,000" units that are "100%" complete as to materials and "60%" complete as to conversion costs.
InstructionsCompute the equivalent units of production for materials and conversion costs for the month of December.
Answer:
Instructions are below.
Explanation:
Giving the following information:
December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are "10,000" units.
Ending work in process contains 5,000 units that are 100% complete as to materials and "60%" complete as to conversion costs.
To calculate the equivalent units, we need to use the following structure:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Direct material:
Beginning work in process = 0
Units started and completed = 10,000
Ending work in process completed= 5,000
= 15,000 units
Conversion costs:
Beginning work in process = 4,000*0.7= 2,800
Units started and completed = 10,000 - 2,800= 7,800
Ending work in process completed= 5,000*0.6= 3,000
= 13,600 units
The equivalent units of production for materials and conversion costs is 15,000 units and 13,600 units
Calculation of equivalent units:For Direct material:
Beginning work in process = 0
Units started and completed = 10,000
Ending work in process completed= 5,000
Equivalent units = 15,000 units
For Conversion costs:
Beginning work in process = 4,000*0.7= 2,800
Units started and completed = 10,000 - 2,800= 7,800
Ending work in process completed= 5,000*0.6= 3,000
Equivalent units = 13,600 units
Learn more about material here: https://brainly.com/question/18822841
To advertise or not to advertise Suppose that Creamland and Dairy King are the only two firms that sell ice cream. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:
Dairy King
Advertise Doesn't Advertise
Creamland Advertise 10,10 18, 2
Doesn't Advertise 2,18 11,11
For example, the upper right cell shows that if Creamland advertises and Dairy King doesn't advertise, Creamland will make a profit of $18 million, and Dairy King will make a profit of $2 million. Assume this is a simultaneous game and that Creamland and Dairy King are both profit-maximizing firms.
a. If Creamland decides to advertise, it will earn a profit of $ _______ million if Dairy King advertises and a profit of $_______ million if Dairy King not advertise.
b. If Creamland decides not to advertise, it will earn a profit of________ million if Dairy King advertises and a profit of______ $ million if Dairy King does not advertise.
Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing?
a. Creamland will choose not to advertise and Dairy King will choose to advertise.
b. Both firms will choose not to advertise.
c. Both firms will choose to advertise.
d. Creamland will choose to advertise and Dairy King will choose not to advertise.
Answer:
a. 10, 18
b. 2, 11
c. Both firms will choose to advertise.
Explanation:
Interpreting the payoff matrix for all possible cases:
Both Advertise:
Dairy King profit = 10
Creamland profit = 10
Neither Advertise:
Dairy King profit = 11
Creamland profit = 11
Only Dairy King advertises:
Dairy King profit = 18
Creamland profit = 2
Only Creamland advertises:
Dairy King profit = 2
Creamland profit = 18.
Filling in the blanks:
a. If Creamland decides to advertise, it will earn a profit of $10 million if Dairy King advertises and a profit of $18 million if Dairy King not advertise.
b. If Creamland decides not to advertise, it will earn a profit of $2 million if Dairy King advertises and a profit of $11 million if Dairy King does not advertise.
For both firms, if they choose not to advertise and the other firm advertises, they will have a much lower profit than their competitors. Therefore, the dominant strategy for either firm is to advertise since it will at least keep them even with their competitor (if both advertise).
The answer is c. Both firms will choose to advertise.
Presented below is the adjusted trial balance of Splish Brothers, Inc. at December 31, 2017. Debit Credit Cash $ ? Supplies 1,330 Accounts Receivable 3,580 Prepaid Insurance 2,620 Equipment 80,160 Accumulated Depreciation—Equipment $20,100 Trademarks 3,760 Accounts Payable 3,220 Salaries and Wages Payable 920 Unearned Service Revenue 1,060 Bonds Payable (due 2024) 31,880 Common Stock 2,120 Additional paid-in capital 15,160 Retained Earnings 14,720 Service Revenue 30,040 Salaries and Wages Expense 14,080 Insurance Expense 2,400 Rent Expense 3,260 Interest Expense 2,320 Total $ ? $ ?
Answer:
Cash $ 5710
Total debit side $ 199200 Credit side $ 199200
Explanation:
We list the correct accounts at the right side. First we add up the credit side to find the total and then subtract the debit side from it to get the cash amount as the debit and credit side of the trial balance must be equal.
Splish Brothers, Inc.
Adjusted trial balance
December 31, 2017.
Debit Credit
Cash $ 5710
Supplies 1,330
Accounts Receivable 3,580
Prepaid Insurance 2,620
Equipment 80,160
Accumulated Depreciation—Equipment $20,100
Trademarks 3,760
Accounts Payable 3,220
Salaries and Wages Payable 920
Unearned Service Revenue 1,060
Bonds Payable (due 2024) 31,880
Common Stock 2,120
Additional paid-in capital 15,160
Retained Earnings 14,720
Service Revenue 30,040
Salaries and Wages Expense 14,080
Insurance Expense 2,400
Rent Expense 3,260
Interest Expense 2,320
Total $ 199200 $ 199200
Based on the projections, Decker will have a. a financing deficit of $36 b. a financing surplus of $36 c. zero financing surplus or deficit d. a financing surplus of $255 e. a financing deficit of $255
Answer:
B, A financing surplus of $36
Explanation:
As the question is incomplete so firstly I am going to write the question for you first and its solution
Question: Decker Enterprises Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,080 Profit before tax na 420 Taxes (25%) na 105 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 Based on the projections, Decker will have
Solution :
We need to find total assets first
Current assets = 115
Net fixed assets = 1440
Total assets = 115+1440= 1555
Secondly, we need to find sum of liabilities and stockholder equities to compare them with Total assets.
Liabilities = current liabilities + long term debt
Liabilities = 81 + 360 = 441
Equity = Common stock + retained earnings
Equity = 500 + 650 = 1150
Total equity + liabilities = 1591
Financial Deficit/Surplus = Total assets - Total liabilities and stockholder equity
Financial Deficit/Surplus = 1555 - 1591
Financial Deficit/Surplus = -36 surplus
Collins Company borrowed $1,250,000 from BankTwo on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of $325,545 and carried an annual interest rate of 9.5%. What is the amount of expense Collins must recognize on its 2017 income statement
Answer:
Collins Company must recognize $118,750 (which is annual interest paid on the capital) in its 2017 income statement as an expense item if the method of computing the interest is the flat rate method.
If it is reducing balance rate, then the amount deducted will equal $ 87,823
Explanation:
According to the principles of Financial Accounting, the interest portion of any loan must be entered as an expense item. The portion of the principal being paid back is recorded as part of the liability of the company in the period under consideration. It often goes by the term Loan Payable or Notes Payable.
Hence to arrive at the answers given above, you must note that the year in question is 2017 and that the loan took effect from January 2016.
When computing for interest payable, two methods may be used:
Flat rate method: which requires that the interest rate applicable is computed on the capital and multiplied by the number of years the loan will run.That is, $1,250,000 x 9.5% x 5 = Total Interest Rate Applicable.
= $593,750 so going by this method, the interest rate to be entered is
= $593, 750/5
= $118,750
2. Reducing balance rate method: This requires the rate of interest to be applied each year succesievely having taken into account the capital which way paid in the previous year.
That is, [Initial Capital-Annual Payments] *9.5%
For year 2016, annual payment will be Zero. Given that the loan started in that year. In 2017 however, the annual payment will apply as shown below:
= [$1,250,000-$325,545] *9.5%
= $924, 455 * 9.5%
= $87,823 (approximately)
Cheers!
The following lots of Commodity Z were available for sale during the year. Beginning inventory 7 units at $49 First purchase 18 units at $50 Second purchase 53 units at $59 Third purchase 18 units at $64 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method? a.$5,522 b.$1,447 c.$1,127 d.$1,143
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Beginning inventory 7 units at $49
First purchase 18 units at $50
Second purchase 53 units at $59
Third purchase 18 units at $64
The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year.
To calculate the ending inventory using the LIFO (las-in, first-out), we need to use the cost of the firsts units incorporated to inventory:
Ending inventory= 7*49 + 16*50= $1,143
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $140 par, and 67,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $75,000; second year, $159,000; third year, $190,300; fourth year, $205,130.
Requried:
Compute the dividends per share on each class of stock for each of the four years.
Answer:
Dividend per Share:
1st Year
Preferred dividend per share = $3.75
Common dividend per share = $0
2nd Year
Preferred dividend per share = $7.45
Common dividend per share = $0.149
3rd Year
Preferred dividend per share = $5.6
Common dividend per share = $1.169
4th Year
Preferred dividend per share = $5.6
Common dividend per share = $1.39
Explanation:
The cumulative preferred stock is the stock which accumulates or accrues dividends in case the dividends are not paid or partially paid in a particular year. These accumulated dividends or dividends in arrears are paid whenever the company declares dividends next time.
Preferred dividend per year = 20000 * 140 * 0.04 = $112000
1st year
Preferred dividend = 75000
Preferred dividend per share = 75000 / 20000 = $3.75 per share
Accumulated preferred dividends = 112000 - 75000 = $37000
Common dividend = 0
Common dividend per share = 0
2nd year
Preferred dividend = 37000 + 112000
Preferred dividend per share = 149000 / 20000 = $7.45 per share
Common dividend = 10000
Common dividend per share = 10000 / 67000 = $0.149 per share
3rd year
Preferred dividend = 112000
Preferred dividend per share = 112000 / 20000 = $5.6 per share
Common dividend = 78300
Common dividend per share = 78300 / 67000 = $1.169 per share
4th year
Preferred dividend = 112000
Preferred dividend per share = 112000 / 20000 = $5.6 per share
Common dividend = 93130
Common dividend per share = 93130 / 67000 = $1.39 per share
Photo Framing's cost formula for its supplies cost is $1,200 per month plus $20 per frame. For the month of November, the company planned for activity of 618 frames, but the actual level of activity was 610 frames. The actual supplies cost for the month was $13,850. The spending variance for supplies cost in November would be closest to:
Answer:
Direct material spending variance= $451.4 unfavorable
Explanation:
Giving the following information:
Photo Framing's cost formula for its supplies cost is $1,200 per month plus $20 per frame.
Actual level of activity was 610 frames. The actual supplies cost for the month was $13,850.
To calculate the spending variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= (13,850 - 1,200)/610= $20.74
Direct material price variance= (20 - 20.74)*610
Direct material price variance= $451.4 unfavorable
The traditional tasks performed by the HR department include all of the following except Group of answer choices labor relations. personnel administration. recruiting staff. participation in business decision making.
Human resources allude to the people who make up an organization's, business sector's, industry's, or economy's employment.
Human capital is a more specific term that refers to the knowledge and abilities that individuals possess. Manpower, employment, staff, companions, or simply: people are similar phrases.
The correct option is participation in business decision-making.
This is the correct option because this is the only one that is not the function or the tasks of the Hr department. The main function of Hr is to conduct the screening and the selection of the candidates for the interviews. The options are mentioned in the context of labor relations. personnel administration. recruiting staff, are the functions of the Hr except for the correct answer.
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Corrector guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 5 % of sales. Assume that the Sierra dealer in Colorado Springs made sales totaling $ 800,000 during 2016. The company received cash for 30% of the sales and notes receivable for the remainder. Warranty payments totaled $12,000 during 2016.
Required:
a. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold.
b. Post to the Estimated Warranty Payable T-account. At the end of 2014, how much in Estimated Warranty Payable does the company owe? Assume the Estimated Warranty Payable is SO on January 1, 2014.
Answer:
A.CORRECTOR JOURNAL ENTRIES
1.2016
Dr Cash 240,000
Dr Note receivable 560,000
Cr Sales Revenue 800,000
2. Record of the warranty expense.
2016
Dr Warranty Expense 40,000
Cr Estimated Warranty Payable 40,000
3.To Record the warranty payments for the company.
2016
Dr Estimated Warranty Payable 12,000
Cr Cash12,000
B . T-ACCOUNT
DEBIT SIDE
The Estimated Warranty Payable will be:
Dr Payments12,000
CREDIT SIDE
Beginning balance 0
Accrual 40,000
Ending balance 28,000
Explanation:
A. Preparation of the Record of the sales, warranty expense, and warranty payments for the company while Ignore cost of goods sold.
CORRECTOR JOURNAL ENTRIES
2016
Dr Cash 240,000
(30%× Sales amount $800,000)
Dr Notes Receivable 560,000
(800,000-240,000)
Cr Sales Revenue 800,000
(560,000+240,000)
To record sales for 2016
Record of the warranty expense.
2016
Dr Warranty Expense 40,000
(5%×800,000)
Cr Estimated Warranty Payable 40,000
To record the accrue warranty payable.
To Record the warranty payments for the company.
2016
Dr Estimated Warranty Payable12,000
Cr Cash12,000
To record Warranty payments.
B . T-ACCOUNT
DEBIT SIDE
The Estimated Warranty Payable will be:
Dr Payments12,000
CREDIT SIDE
Beginning balance 0
Accrual 40,000
Ending balance 28,000
(40,000-12,000)
7. Identifying costs of inflation Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.
Answer:
Shoe-leather Costs.
Explanation:
In this scenario, Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value.
What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the Shoes-leather costs of inflation.
A Shoe-leather costs refers to the costs of time, energy and effort people expend to mitigate the effect of high inflation on the depreciative purchasing power of money by frequently visiting depository financial institutions in order to minimize inflation tax they pay on holding cash.
Metaphorically, it ultimately implies that in order to protect the value of money or assets, some people wear out the sole of their shoes by going to financial institutions more frequently to make deposits.
Hence, Bob is practicing a shoe-leather cost of inflation so as to reduce the nominal interest rates.
8. Problems and Applications Q8 The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average fixed cost will increase. Average variable cost will remain unchanged. Average total cost will increase. Marginal cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average fixed cost will remain unchanged. Average total cost will increase. Average variable cost will increase. Marginal cost will remain unchanged.
Answer:
Which of the following statements is true as a result of the lump-sum tax?
Average fixed cost will increase.
Average total cost will increase.
The lump-sum tax of $300 is a one time payment that does not depend on the amount of output, for this reason, it is a fixed cost that is spread over the total quantity of burgers that are produced, and that also affect average total cost.
Which of the following statements is true as a result of the per-burger tax?
Average fixed cost will remain unchanged.
Average total cost will increase.
Average variable cost will increase.
The per-burger tax depends on the quanityt of burgers produced, therefore, it is another variable cost. It affects average total cost, and average variable cost, while average fixed cost remains unchaged precisely because it is not a fixed cost.
The average cost of production is computed by dividing the number cost (TC) by the output produced (TO) (Q). When we say "per unit cost of production," we mean that all fixed and variable costs are taken into account when calculating the average cost.
As a result, it's also known as Per Unit Total Cost.
The answers to the above questions are:
1) The $300 lump-sum tax is a one-time contribution that is not based on the amount of output; as a result, it is a fixed cost that is distributed across the total quantity of burgers produced, affecting the average total cost.
So, Option A and C are correct.
2) The per-burger tax is a variable expense that is determined by the number of burgers consumed. It has an effect on average total cost and average variable cost, but it has no effect on average fixed cost because it is not a fixed cost.
So, Option A, B, and C are correct.
Thus these Options are correct for the following question.
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A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour. The alleged sexual harassment included kissing, touching her breasts and leg, persistent requests to have a drink outside work hours despite an ongoing refusal, asking for cuddles, telephoning her at home and making repeated unsolicited sexual remarks. Based on any four ethical theories, explain how these acts constitute unethical behaviours at the workplace
Answer:
The ethical theory of rights is being violated in this case.Explanation:
As we know sexual harassment is a violation against an individual's civil rights, the ethical theory of rights is being violated in this case. The part-time worker who is being harassed by another employee is being violated of her right to a safe workplace under the civil rights.
The ethical theory of rights provides that rights designed and formulated by the society and the government should be upheld with commitment and priority. They are the basic human rights that guarantees equal and dignified life for all.
If any unethical behaviors at the workplace such as sexual harassment, abuse, threat, etc, occurs, it is a direct violation to the basic human rights of an individual.
Presented below is information related to Taylor Co. for the month of January 2014. Ending inventory per Insurance expense $ 12,680 perpetual records $ 23,490 Rent expense 20,260 Ending inventory actually Salaries and wages expense 57,100 on hand 22,930 Sales discounts 10,950 Cost of goods sold 227,250 Sales returns and allowances 15,390 Freight-out 7,640 Sales revenue 411,410(a) Prepare the necessary adjusting entry for inventory.(b) Prepare the necessary closing entries
Answer: The answer is given below
Explanation:
a. The necessary adjusting entry for inventory has been prepared and attached.It should be noted that the inventory was calculated as:
= $23,490 - $22,930
= $560
(b) The necessary closing entries has also been prepared and attached. During the calculation, it should be noted that the cost of goods sold was given as:
= 227250 + 560
= 227810
Check the attachment for the table.
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)
Answer:
Ending Inventory $ 3540
Explanation:
FIFO means first in first out. This rule applies to counting of the inventory in such a way that the units first purchased are sold out first. The following schedule has been prepared to arrive at the ending inventory at each date of sale .
Purchases Sales Ending Inventory
January: 10 units at $120 6 units 4 units at $120
February: 20 units at $125 5 units 19 units at $125
May: 15 units at $130 9 units 10 units at $125
15 units at $130
September: 12 units at $135 8 units 2 units at $125
15 units at $130
12 units at $135
November: 10 units at $140 13 units 4 units at $130
12 units at $135
10 units at $140
On December 31, there were 26 units remaining in ending inventory
Ending Inventory = $ 3540= $ 520 + $1620 + $1400
4 units at $130 = $ 520
12 units at $135 = $ 1620
10 units at $140= $ 1400
A company had beginning inventory... A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold
Answer:
COGS= $470
Explanation:
Giving the following information:
Beginning inventory= 10 units for $20 each
On March 2, it purchased 10 units at $22 each.
On March 6 it purchased 6 units at $25 each.
On March 8, it sold 22 units for $54 each.
We need to determine the cost of goods sold for the 22 units under the FIFO (first-in, first-out) method. Using this method, we need to use the cost of the firsts units incorporated into inventory.
COGS= 10*20 + 10*22 + 2*25= $470
George’s Car Repair Shop buys parts from a local parts distributor. The distributor delivers the parts promptly under terms stated on the invoice: 3/15 net 30. George has always paid the bill within 30 days and has never really worried about these invoice terms. Which of the following statements is true of this scenario?
a. George should not react to these payment terms because they area tactic used by many distributors to get customers to pay early, with little or no benefitto George.
b. These terms mean that the payment is due in 30 days, but that as long as he is not more than 15 days late, he can avoid the 3% late penalty. Thus, George could actually delay payment until the 45th day without incurring a penalty.
c. He is smart to wait until the 30th day before making payment because this gives him the use of cash for the maximum possible amount of time.
d. If possible, it is smart to pay the bill within 15 days after receipt because then he will receive a 3% discount. If he does a lot of business with this firm, this will result in a sizeable savings for George by year’s end.
Answer:
d. If possible, it is smart to pay the bill within 15 days after receipt because then he will receive a 3% discount. If he does a lot of business with this firm, this will result in a sizeable savings for George by year’s end.
Explanation:
In the given instance the supplier of parts to George uses invoice 3%/15 net 30. This means if payment for parts is made within 15 days George will get a discount of 3%, if not the total amount of the parts is to be repayed within 30 days.
The best option for George will be to reduce his repayment period from 30 days to 15 days or less.
This way he will get 3% discount on sales and if he does a lot of business with the spare parts dealer, he will save a large sum of money