Roca Company originally issued 30,000 shares of $5 par common stock for $240,000 on January 3, 2020. Roca purchased 1,500 shares of treasury stock for $15,000 on November 2, 2020. On December 6, 2020, 600 shares of the treasury stock are sold for $7,200. Prepare journal entries to record these stock transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer:

Date   Particulars                                    Debit          Credit

Jan 3  Cash                                           $240,000

                Common stock (30000*5)                       $150,000

                Paid-in-capital in excess                          $90,000

Nov 2  Treasury stock                            $15,000

                  Cash                                                         $15,000

Dec 6  Cash                                              $7,200

                  Treasury stock[75000/1500*600)          $6,000

                   Paid in capital from treasuty cash          $1,200

For each of the situations described, determine whether the firms involved are part of a cartel or are simply colluding. a. Landscaping company owners in a county hold an annual meeting at a hotel. There, owners make contact with industry leaders, share cost-saving ideas, and set minimum prices for services in the coming year. Owners who set prices below these minimums are not invited to next year's meeting. Landscaping company owners who attend the meeting have formed a cartel. are engaged in collusion but are not part of a cartel. are acting competitively. b. Most hot dog carts in a city sell hot dogs for $3.00 each. Each stand makes comparable products, but each is independently owned and operated. The marginal cost of selling hot dogs on the street is around $1.00, but owners have maintained the $3.00 price point for several years. The cart owners are not in regular contact. Hot dog vendors in this city O are acting competitively since they cannot change the going price of hot dogs. O are colluding with one another but not as part of a cartel. have formed a cartel. c. Three friends start a bakery in the east side of a city. There is a higher demand for baked goods on the west side of the city, but the bakery's owners refrain from expanding there due the large number of well-established bakeries already there The east side bakery owners are c. Three friends start a bakery in the east side of a city. There is a higher demand for baked goods on the west side of the city, but the bakery's owners refrain from expanding there due the large number of well-established bakeries already there. The east side bakery owners are O colluding with the well-established bakeries on the west side of the city. O acting competitively by avoiding a poor business decision. responding to cartel pressure to stay in their own territory. d. A city has two major nut vending companies. L.M. Nutz operates roasted nut carts on the north side of the city, while Go Go Nuts operates carts on the south side of the city. Both companies operate at high margins and have a robust distribution infrastructure that would allow them to operate city wide, but each company operates exclusively on its end of town. L.M. Nutz and Go Go Nuts O collude with one another to maintain market power in their respective areas are acting competitively, entering the other company's market will likely start an unprofitable price war. have formed a roasted nut cartel.

Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $144 Variable Sales and Administration Expenses $5 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.

Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.

Reqired:
What is the total opportunity cost (implicit plus explicit costs) of the day that Farmer Ziva spent in the field planting lettuce?

On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-

On Saturday afternoon, just as you are finishing lunch, you and your partner are dispatched to a local park. When you arrive, you find an 11-year-old girl who was skateboarding and has fallen. She is crying, scared and in pain. Her right wrist is noticeably deformed, and she has some blood seeping from scrapes on her right arm and right leg. When you ask her about her parents, she says she does not know where they are.

What should be your first action?

a. Send your partner to locate her parents.
b. Call for help in locating her parents.
c. Treat the girl to the best of your ability.
d. Withhold your treatment until her parents have been located.

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $131 Units in beginning inventory 50 Units produced 2,110 Units sold 1,110 Units in ending inventory 1,050 Variable costs per unit: Direct materials $ 45 Direct labor $ 33 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $18,990 Fixed selling and administrative expense $22,200 What is the total period cost for the month under variable costing

Suppose that a candy maker owns a building and is renting part of the building's space to a library. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $225/month. Given this situation, can the library find a private solution with the candy maker that will make both better off

The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $56,084. Deposits in transit on June 30 were $2,655. A debit memo was included with the bank statement for a service charge of $22. A $4,418 check written in June had not been paid by the bank. The bank statement included a $800 credit memo for the collection of a note. The principal of the note was $775, and the interest collected amounted to $25. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

Congress adopted a law to provide insurance to protect wheat farmers. The agency in charge of the program adopted regulations to govern applications for this insurance. These regulations were published in the Federal Register. Mary applied for insurance but his application did not comply with the regulations. She claimed she was not bound by the regulations because she never knew they had been adopted. Is she bound by the regulations?

Ordinary simple interest brings increased revenue to the lender. The general practice
in the United States and in international business transactions is to use ordinary simple
interest; it is employed throughout this Outline, unless specified otherwise.
SOLVED PROBLEMS
3.1 Find (a) the ordinary and (b) the exact simple interest, on a 60-day loan of $1500
at 14%
We have P = 1500 and r = .0145.​

Alliance Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $90,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $13,500 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $27,000 and $45,000, respectively.

Data on standard service hours and number of employees are as follows:

Maint. Person. Dept. Dept.
Dept. Dept. X Y
Standard service hours used 200 150 1,200 600
Number of employees 25 50    75 75
Direct labor hours 250 250 1,000 500

Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours. What is the overhead rate for Department X assuming the direct method is used?

a. $27.00
b. $81.00
c. $46.88
d. $93.75

Select the statement that best describes the recommended approach for developing team goals. The highest performing team member develops goals for the team, which the team leader then approves. Individual team members should contribute to and have input over the common team goals. The team leader should determine all goals independently for efficiency, and then share the goals with the team for approval. Long term team goals should be developed by members of the highest level of organizational leadership, while short term goals are usually developed by lower level leaders.

A civil engineer who owns his own design/build/operate company purchased a small crane 3 years ago at a cost of $65,000. At that time, it was expected to be used for 10 years and then traded in for its salvage value of $10,000. Due to increased construction activities, the company would prefer to trade for a new, larger crane now, which will cost $80,000. The company estimates that the old crane can be used, if necessary, for another 3 years, at which time it would have a $18,000 estimated market value. Its current market value is estimated to be $31,000, and if it is used for another 3 years, it will have M&O costs (exclusive of operator costs) of $21,000 per year. Determine the values of P, n, S and AOC that should be used for the existing crane in a replacement analysis.

a. The value of P is $_________
b. The value of n is_________
c. The value of S is $__________
d. The AOC value is $ __________per year.

For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.
Scenario
Number of Firms
Type of Product
Market Model
There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.
There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services; parents view the quality of the tutoring at the different companies to be largely the same.
In a small town, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever.
The government has granted the U.S. Postal Service the exclusive right to deliver mail.

7200 shares of treasury stock of Coronado, Inc., previously acquired at $13 per share, are sold at $19 per share. The entry to record this transaction will include a debit to Treasury Stock for $93600. credit to Paid-In Capital from Treasury Stock for $43200. credit to Treasury Stock for $136800. debit to Paid-In Capital from Treasury Stock for $43200.

Behavioral economists have discovered that people view a 2% decrease in their income without inflation as unfair but a 3% increase in their income in the presence of 5% inflation as fair. a. What are the nominal and real rates of change in their incomes? Nominal change in income = % Real change in income = % b. What tendency is leading people to feel like the pay decrease is unfair? The cost-benefit principle The opportunity cost principle Shoe-leather costs Money illusion

For a $150,000 mortgage, with interest rate 5,5%, paid over 15 years, the monthly payment is $1,225,63. After 2 monthly
payments, what is the balance of the loan?
Round to the nearest cent. Do not include the dollar sign or commas in the answer box.

Ontario has provided the following year-end balances: Cash, $24,000 Patents, $7,900 Accounts receivable, $9,100 Property, plant, and equipment, $98,900 Prepaid insurance, $4,600 Accumulated depreciation, $20,000 Inventory, $44,000 Retained earnings, 15,500 Trademarks, $13,600 Accounts payable, $8,000 Goodwill, $10,000 How much are Ontario's net noncurrent assets

Carefully examine the example problem statement and select which criteria listed below have been met.

Cryptocurrency is one of the most profitable possible investments in the marketplace today, but most investors have no idea how to take advantage of this opportunity. By creating an investment opportunity based on cryptocurrency investments, we intend to bring investors a simple, new option with extremely high potential returns. As part of proposing a solution to our problem, we need to determine why the time is now to offer this investment and why investors should make this investment with us.

Criteria 1: The problem is well defined (short and precise, no more than 200 words)
Criteria 2: The magnitude or impact of the problem is clear
Criteria 3: The following question has been answered - Who is it affecting (key stakeholders)?
Criteria 4: The following question has been answered - How is it affecting the stakeholder(s)?
Criteria 5: The following question has been answered – What kind of solution is the client looking for?
Criteria 6: This can be solved by a team of 5 MBA students in 14 weeks

On May 9, 2018, Calvin acquired 800 shares of stock in Hobbes Corporation, a new startup company, for $81,100. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $8,110. Assume that Calvin is single, determine his tax consequences as a result of this sale. If an amount is zero, enter "0". As a result of the sale, Calvin has: Ordinary loss: Short-term capital loss: Long-term capital loss:

Noncash investing and financing activities may be disclosed in: Multiple Choice A note in the financial statements or a schedule attached to the statement of cash flows. The operating activities section of the statement of cash flows. The investing activities section of the statement of cash flows. The financing activities section of the statement of cash flows. The reconciliation of cash balance section.

On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,820,000. The division's book value and fair value less cost to sell on December 31 were $3,050,000 and $2,410,000, respectively. What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement

Flexibility of practice when applied to managerial accounting means that: Multiple Choice The information must be presented in electronic format so that it is easily changed. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. Managerial accountants must be on call twenty-four hours a day. Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations. Managers must be flexible with information provided in varying forms and using inconsistent measures

Optimization is defined as Group of answer choices a trade-off between equity and efficiency. an interchange of giving and receiving in social relationships. a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth. how wealth or income is distributed between employees within a company. the quality of being just, equitable, and impartial.

Philadelphia Company has the following information for March: Sales $468,926 Variable cost of goods sold 221,229 Fixed manufacturing costs 78,814 Variable selling and administrative expenses 53,981 Fixed selling and administrating expenses 33,064 Determine the March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income for Philadelphia Company $fill in the blank 3

On January 31, 2020, Astrid Corp. purchased 5,000 shares of Sienna Co. common stock for $15 a share. Astrid accounts for the investment at fair value with adjustments to fair value recorded in net income. On March 15, 2020, Astrid Corp. declared a property dividend of 3,000 shares of Sienna Co. common stock, to be distributed on March 31, 2020. The shares of Sienna Co. were selling at $18 per share on March 15, 2020. The investment has not been adjusted to fair value since its purchase date. On the date of declaration of the property dividend, the Astrid Corp. would:

a. Recognize a liability account of $45,000.
b. Recognize a decrease in assets of $45,000.
c. Recognize an increase in net income of $9,000.
d. Recognize a liability account of $9,000.

On September 1, 2020, Coronado Industries issued a note payable to Fidelity Bank in the amount of $2730000, bearing interest at 12%, and payable in three equal annual principal payments of $910000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Coronado should record accrued interest payable of

Clothing retail stores are an example of this market structure.


a monopoly

monopolistic competition

perfect competition

an oligopoly

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $360,000 to $445,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $900,000 and current break-even units are 9,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Suppose the economy of the large country of Hendrix is currently experiencing economic growth and has a trade deficit. Consider the possible effects of this economic growth on the trade balance and place them in the appropriate category. Match the followings.

a. Likely to occur during economic growth and increase the trade deficit.
b. Likely to occur during economic growth and decrease the trade deficit.
c. Not likely to occur during economic growth

1. [imports decrease]
2. [domestic private investment increases]
3. [government borrowing decreases]
4. [government borrowing increases]
5. [private savings decrease]
6. [domestic private investment decreases]
7. [private savings increase]
8. [imports increase]