Answer: B.) Nanny because that the only person that will mostly take care of the kids.
Cameron Chemicals uses the weighted-average method in its process costing system. During January, the Assembly Department completed its processing of 25,100 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $691,870 in total. The ending work in process inventory in January consisted of 3,800 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Required:
a. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month.
b. Compute the cost of ending inventory and of the units transferred to the next department for January.
c. Prepare a cost reconciliation for January.
Answer:
Cameron Chemicals
Assembly Department:
a. Equivalent units: Materials Labor Overhead
Ending Work-in-Process (3,800) 3,040 2,280 2,280
b. Costs of ending inventory and the units transferred out:
Ending WIP:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Ending Work-in-Process (3,800) 3,040 2,280 2,280
Ending WIP = (3,040*$14.40 + 2,280*$4.50 + 2,280*$7.90) = $72,048
Units transferred out:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Completed and transferred out 25,100 25,100 25,100
Cost of units transferred out = 25,100*$14.40 + 25,100*$4.50 + 25,100*$7.90) = $672,680
c. Cost Reconciliation for January:
Materials Labor Overhead Total
Ending WIP = $43,776 $10,260 $18,012 $72,048
Units transferred out 361,440 112,950 198,290 $672,680
Total costs = $405,216 $123,210 $216,302 $744,728
Explanation:
a) Data and Calculations:
Total costs of beginning WIP and Units added = $691,870
Ending WIP 3,800 units, 80% complete (materials) and 60% complete (conversion)
Cost per equivalent unit:
Materials Labor Overhead
Cost per equivalent unit $14.40 $4.50 $7.90
Equivalent units: Materials Labor Overhead
Completed and transferred out 25,100 25,100 25,100
Ending Work-in-Process (3,800) 3,040 2,280 2,280
Total equivalent units = 28,140 27,380 27,380
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10 million bottles of wine were sold every month at a price of $4 per bottle. After the tax, 3 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $2 per bottle (after paying the tax).
The amount of the tax on a bottle of wine is -----per bottle. Of this amount, the burden that falls on consumers is-------per bottle, and the burden that falls on producers is------per bottle.
True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.
a) True
b) False
Answer:
The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle.
tax per bottle = $7 - $2 = $5consumers pay an extra $7 - $4 = $3 per bottleproducers pay $7 - $5 = $2 per bottle
True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.
b) False
The negative effect is the same regardless of who pays for it. Taxes create deadweight losses that affect both producers and consumers.
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $760,400
Shop direct labor 555,000
Shop and repair equipment depreciation 57,000
Shop supervisor salaries 158,500
Shop property taxes 28,800
Shop supplies 22,100
Advertising expense 15,200
Administrative office salaries 65,400
Administrative office depreciation expense 8,400
Total costs and expenses $1,670,800
The average shop direct labor rate is $15.00 per hour.
Required:
Determine the predetermined shop overhead rate per direct labor hour.
Answer:
See bekow
Explanation:
Number of direct labor hours = 555,000 / 15 = 37,000
Overhead cost = $57,000 + $158,500 + $28,800 + $22,100
A new contract has just been ratified between the local truck drivers union and farley's national trucking. Jerry, a line manager at farleyś, wants to know how the new contract affects his role as a manager. Who would be the best person to provide him with the info?
The coordination liaison
the workers compensation coordinator
the truck drivers
the labor relations specialists
Sarah is interviewing the sales manager to learn more about the skills, responsibility, and behaviors associated with the position. based on sarah's actions, we can conclude that she is conduction a
compensation classification
job analysis
employment comparison
performance appraisal
Answer:
1. the truck drivers
2. job analysis
Explanation:
Sandra would like to organize LAB as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 9 percent annual before-tax return on a $710,000 investment. Sandraâs marginal income tax rate is 37 percent, and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes LAB as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. LABâs income is not qualified business income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that LAB will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.)
Required:
a. How much cash after taxes would Sandra receive from her investment in the first year if BAL is organized as either an LLC or a C corporation?
b. What is the overall tax rate on BALâs income in the first year if BAL is organized as an LLC or as a C corporation?
Answer:
Sandra
LAB LLC (taxed as a sole proprietorship)
Annual Income = $63,900
Additional self-employment tax (2.9%) = $1,853 (2.9% * $63,900)
Additional Medicare tax (0.9%) = $575
FICA Tax rate (7.65%) = $4,888
After-tax income $56,584
Tax expense = $7,316 ($63,900 - $56,584)
LAB (taxed as a C corporation)
After-tax income = $40,257 ($63,900 - $23,643)
Dividends and capital gains = $8,051.40 (20% excluding the 3.8%)
Income after dividends and capital gains $32,206
Tax expense = $31,694 ($63,900 - 32,206)
b. Overall tax rate on BAL's income:
1. Organized as an LLC
$7,316/$63,900 * 100
= 11.45%
2. Organized as a C Corporation:
$31,694/$63,900 * 100
= 49.6%
Explanation:
a) Data and Calculations:
Expected annual before-tax return = 9%
Investment = $710,000
The annual return = $63,900 ($710,000 * 9%)
Marginal income tax rate = 37%
Income tax expense = $23,643 ($63,900 * 37%)
After-tax income = $40,257 ($63,900 - $23,643)
Dividends and capital gains = $8,051 (20% excluding the 3.8%)
Income after dividends and capital gains $32,206
A joint survey by Parade magazine and Yahoo! found that 59% of American workers say t
Answer:
wo is to chiscake ezz
Explanation:
let's go
1 batir mase
1 introducion tu microandas an wuala
chiskae ready mmmmmmm yomui
Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Average cost per unit
Direct Materials $4.85
Direct Labor $4.70
Variable manufacturing overhead $1.65
Fixed manufacturing overhead $10.00
Fixed selling expense $3.45
Fixed administrative expense $1.50
Sales commissions $0.60
Variable administrative expense $0.55
If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:
A: $17.45
B: $0.30
C: $14.65
D: $5.80
Answer:
the contribution margin is $14.65
Explanation:
The computation of the contribution margin is shown below:
As we know that
Contribution Margin per unit = Selling price per unit - Variable costs per unit
= ($27) - ($4.85 + $4.70 + $1.65 + $0.60 + $0.55)
= $27 - $12.35
= $14.65
Hence, the contribution margin is $14.65
what is market structure
Answer:
it ishow firms are differentiated and categorised based on types of goods they sell and how the operations are affected by external forces and elements
Explanation:
it makes it easier to understand the characteristics of diverse markets
An established process for assessing quality of care or services in which an organization demonstrates that it meets a set of minimum standards is called
Answer:
Quality assessment
Explanation:
Quality assessment is a set of processes that is used to ensure progressive improvement in health care delivery by evaluating structure, process, and outcome in a health care organisation.
Quality standards are set for different criteria and the quality assurance officer follows certain steps to ascertain if minimum standard is being met.
If however the quality standard is below expectations, Tha cause is determined with a view of making improvement.
Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which type of business should Sofia consult to see if there is a plan available to cover her expenses if her husband dies?
A.
stock-held savings institution
B.
web-only financial institution
C.
mutual fund company
D.
life insurance company
Answer:
D
Explanation:
She is worried about losing everything and having life insurance is what everyone does when wanting to keep something after a love one dies.
Answer:
D.
life insurance company
Explanation:
D.
life insurance company
Exercise 12-17B Direct: Preparing statement of cash flows and supporting note LO P1, P3, P5
Cash and cash equivalents balance, December 31, 2016 $ 35,000
Cash and cash equivalents balance, December 31, 2017 98,420
Cash received as interest 3,500
Cash paid for salaries 101,500
Bonds payable retired by issuing common stock (no gain or loss on retirement) 145,000
Cash paid to retire long-term notes payable 175,000
Cash received from sale of equipment 85,750
Cash received in exchange for six-month note payable 35,000
Land purchased by issuing long-term note payable 84,100
Cash paid for store equipment 33,250
Cash dividends paid 21,000
Cash paid for other expenses 56,000
Cash received from customers 679,000
Cash paid for inventory 353,080
Use the above information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Ferron Company
Statement of Cashflow for the year ended December 31, 2017
$
Cash flow from Operating Activities
Cash received from customers 679,000
Cash paid to Suppliers and Employees (510,580)
Cash flow from Investing Activities
Cash received as interest 3,500
Cash received from sale of equipment 85,750
Cash paid for store equipment (33,250)
Cash flow from Financing Activities
Payments to Retire long-term notes payable (175,000)
Cash dividends paid (21,000)
Changes in Cash and Cash equivalents during the year 63,420
Beginning Cash and Cash equivalents balance 35,000
Ending Cash and Cash equivalents balance 98,420
Explanation:
The Cashflow statement shows changes in Cash and Cash equivalents during the reporting Period.
Note the Direct Method is required for preparation. This applies on the Cash flow from Operating Activity Section.
Only items involving the flow of Cash are shown on the face of the Cashflow statement. Any other transactions are disclosed in Notes to Financial Statements.
Cash paid to Suppliers and Employees calculation
Cash paid for salaries 101,500
Cash paid for other expenses 56,000
Cash paid for inventory 353,080
Cash paid to Suppliers and Employees 510,580
A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,225.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 9.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years)
The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)
Answer Format: Currency: Round to: 2 decimal places.
Answer:
It will make yearly deposits of $ 6,053.60
Explanation:
First, we have two phases:
the first which is the accumulation phase:
<---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|--->
^
which lasts until Sam's 1st year.
Then, we have the withdrawals phase
Graduation of Ellie
<---|----|----|----|----|----|---->
^Sam 1st year
^Ellie 1st year
We solve for the value of sam's first college year.
21,225 (1.03)^16 = 34,059.89
Then we solve for the present value of a growing annuity:
[tex]\displaystyle \frac{P}{r-g} \left[1 - \left(\frac{1+g}{1+r}\right)^n \right] \\P = $first payment\\r = interest\\g= growth\\n = time[/tex]
[tex]\displaystyle \frac{34059.89}{0.09-0.03} \left[1 - \left(\frac{1+0.03}{1+0.09}\right)^4 \right][/tex]
PV = 115,043.63
Then we do the same with Ellie:
P $36,134.1373 (we adjust by two years)
r 0.09
g 0.03
n 4
PV 122,049.78
and then, we adjust for the 2-years difference:
122,049.78 / 1.09^2 = 102726.8613
Value of tuiton cost in 16 years for both daughters:
115,043.63 + 102,726.86 = 217,770.49
Now we solve for the yearly payment of an annuity due ( as the professor pays at the beginning) of 16 years:
Installment of a future annuity
[tex]FV \div \displaystyle \frac{(1+r)^{time} +1}{rate}(1+rate) = C\\[/tex]
FV $217,770.49
time 16
rate 0.09
[tex]217770.49 \div \frac{(1+0.09)^{16}-1 }{0.09} = C\\[/tex]
C $ 6,053.602
f Brent, a contractor refuses to complete a room addition unless the homeowner pays him an additional $20,000, this may be construed as:
Answer:
Economic duress
Explanation:
We say there is an economic duress during a contract when one party to the contract threatens to terminate the contract if the other person does not agree to their demands. Brent is asking for more money, if he does not get this, he says he would leave the work unfinished.
When this happens, the other party may be left stuck and may have no option than to agree to the new demands of the contract.
If people begin to favor science fiction novels to a greater degree than previously, the demand for science fiction novels _____________
Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years
Answer:
$6,312
Explanation:
The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.
Note : Here I will use a financial calculator to compute the future value
PV = $5,000
r = 6 %
P/yr = 1
n = 4
Pmt = $0
Fv = ?
Thus, the investment will be worth $6,312 in 4 years.
Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following EXCEPT:_________
a) her contribution to gas money for the drive to Destin.
b) the ski lift ticket her parents have already purchased for her.
c) her parents' anger if she skips the family trip to Aspen.
d) the hotel costs she will split with her friends in Destin.
Answer:
b) the ski lift ticket her parents have already purchased for her
Explanation:
Opportunity Cost is always included in decision making. It is said to be the amount or value of the best alternative that is forgone e.g. choosing Dubia over Vegas, the opportunity cost is that which is lost or forgone from not picking Vegas. Firms and individuals do make or take decision about what economic activites or project they want to be involved in. This analysis describes how choices are selected or made and how they could be worked on.
It is the most thoughtful alternative given up as the result of a decision taken or made.
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Department
Cutting Finishing
Direct labor-hours 6,100 72,000
Machine-hours 59,000 3,200
Total fixed manufacturing overhead cost $390,000 $443,000
Variable manufacturing overhead per machine-hour $3.00 -
Variable manufacturing overhead per direct labor-hour - $4.75
a. Compute the predetermined overhead rate to be used in each department.
b. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:
Department
Cutting Finishing
Direct labor-hours 4 19
Machine-hours 80 4
Materials requisitioned $770 $360
Direct labor cost $36 $180
Compute the total manufacturing cost assigned to Jobe 203.
c. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company use a plantwide overhead rate based on direct labor-hours instead of using departmental rates?
Answer:
White Company
a. Predetermined overhead rates:
Departments Cutting Finishing
Total fixed manufacturing overhead cost $390,000 $443,000
Usage 6,100 3,200
Fixed overhead cost per unit $6.61 $6.15
Variable overhead cost per unit $3.00 $4.75
Predetermined overhead rates $9.61 $10.90
b. Job 203:
Department
Cutting Finishing
Direct labor-hours 4 19
Machine-hours 80 4
Materials requisitioned $770 $360
Direct labor cost $36 $180
Total manufacturing cost assigned to Job 203:
Cutting Finishing
Materials requisitioned $770 $360
Direct labor cost $36 $180
Manufacturing overhead $769 $207
Total manufacturing costs $1,575 $747
c. Yes. The amounts of overhead cost assigned to some jobs would be substantially different.
Explanation:
a) Data and Calculations:
Departments Cutting Finishing
Direct labor-hours 6,100 72,000
Machine-hours 59,000 3,200
Total fixed manufacturing overhead cost $390,000 $443,000
Variable manufacturing overhead per m/h $3.00 -
Variable manufacturing overhead per dlh - $4.75
You expect to receive $9,300 three years from today. You also expect to receive $13,100 five years from today. When you receive each of the amounts, you will immediately deposit them into an investment account that pays interest rate of 7.3 percent per year. How much do you expect to be in your investment account nine (9) years from today
Answer:
around 70k-80k
Explanation:
What are the 4 types of customer
segmentations?
Answer:
Demographic Segmentation.
Psychographic Segmentation.
Geographic Segmentation.
Behavioral Segmentation.
Explanation:
Answer:
I believe the 4 basic types of market segmentation are:
Demographic Segmentation.
Psychographic Segmentation.
Geographic Segmentation.
Behavioral Segmentation.
Explanation:
I hope I am not wrong.
Jackson bought a commercial vehicle for his business, Cleaners Inc., and paid by check. How will he journal this financial transaction?
A.
Cleaners Inc. Account (debit) Bank Account (credit)
B.
Jackson Account (debit) Bank Account (credit)
C.
Vehicle Account (debit) Bank Account (credit)
D.
Vehicle Account (debit) Cleaners Inc. Account (credit)
Answer:
C
Explanation:
Edge
Mark produced 9 cans of sauce with 3 pounds of tomatoes. When he increased to 5 pounds, he produced 13 cans. What is the marginal product?
Answer:
Marginal Product is 2
Explanation:
Marginal Product (MP) is defined as the ration of change in quantity of output produced to the change in quantity of input raw material
Change in quantity of input raw material [tex]= 5 -3 = 2[/tex]
Change in quantity of output of products = 13 - 9 = 4
Marginal Product (MP) [tex]= \frac{4}{2} = 2[/tex]
Marginal Product is 2
I knew their support was conditional even though they seemed friendly (use unconditional)
Answer:
I know their support was not unconditional though they seem friends.
Explanation:
If you are the Bhutanese student then I am sure this question came in 2017 BHSEC. Best of luck.
Partners Cantor and Dickens have capital balances in a partnership of $160,000 and $240,000, respectively. They agree to share profits and losses as follows:
Cantor Dickens
As salaries $40,000 $48,000
As interest on capital at the beginning of the year 10% 10%
Remaining profits or losses 50% 50%
If income for the year was $120,000, what will be the distribution of income to Cantor?
A. $40,000
B. $52,000
C. $64,000
D. $56,000
Answer:
B. $52,000
Explanation:
Income fot the year $120,000
Less: C salaries $40,000
Less: D salaries $48,000
Less: Interest on Capital to C $16,000 (10% * $160,000)
Less: Interest on Capital to C $24,000 (10% * $240,000)
Loss $8,000
Distribution of income
Salaries $40,000
Add: Interest on Capital $16,000 (10% * $160,000)
Less: Remaining loss he share ($4,000) (50% * 80,00)0
Distribution of income to C $52,000
John and Mary Johnson were divorced in January 2018. By terms of their divorce decree John had to pay alimony to Mary at the rate of $50,000 in 2018, $25,000 in 2019, and zero in 2020. For the first three years of the agreement, determine what portions of the payments are deductible by John and includible in Mary's gross income.
Answer:
$0 for both of them
Explanation:
The Tax Cuts and Jobs Act of 2017 excluded the deduction of alimony payment. This means that any alimony payment made to a spouse (if the divorce was settled after January 1, 2018) is not deductible anymore. nor it will be included in the gross income of the spouse that receives it. Basically, the IRS doesn't consider them anymore.
To avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. However, the bad news about the mortgages is featured in the local newspaper, causing a bank run. As a result, $30 million in deposits is withdrawn. Show the effects of the capital injection and the bank run on the balance sheet. Was the capital injection enough to stabilize the bank
Answer:
1. With the bank run and capital injection, more cash was made available for the bank. There was increased demand on the bank to refund the deposits of customers.
2. The capital injection was not enough to stabilize the bank. At least additional $5 million was required to meet the demand of the customers.
Explanation:
A bank run occurs when a greater number of a bank's customers demand the withdrawal of their deposits. This event causes a spiral reaction that eventually leads to more customers withdrawing their deposits, resulting in the bank's collapse if no outside capital injection is made within the shortest period of time.
c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,281 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2019 net income
Answer:
Tabor
The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.
Explanation:
The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281. The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for. This gives a more accurate picture of Tabor's financial performance during the current financial period.
"Easton Company uses 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 130 $11 5/5 Purchase 280 $13 5/15 Purchase 140 $15 5/25 Purchase 160 $17 Sales were 430 units at $25. Using the FIFO method, determine the dollar value of Ending Inventory for the month of May.”
Answer:
$4,520
Explanation:
The computation of the dollar value of the ending inventory using the FIFO method is as follows:
But before that the ending inventory is
= Beginning inventory + purchased units + purchased units + purchased units - sales units
= 130 units + 280 units + 140 units + 160 units - 430 units
= 280 units
Now the ending inventory is
= 160 units × $17 + (280 units - 160 units) × $15
= $2,720 + $1,800
= $4,520
In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises
Select the best answer from the choices provided.
А.
real returns
B.
nominal returns
C. high returns
D. low, constant returns
Answer: C. high returns
Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during August between Summit Company and Beartooth Co.:
Aug.
1. Summit Company sold merchandise on account to Beartooth Co., $45,550, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,960.
2. Summit Company paid freight of $1,125 for delivery of merchandise sold to Beartooth Co. on August 1.
5. Summit Company sold merchandise on account to Beartooth Co., $59,600, terms FOB shipping point, n/eom. The cost of the goods sold was $43,900.
9. Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company.
15. Summit Company sold merchandise on account to Beartooth Co., $63,100, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,625, which was added to the invoice. The cost of the goods sold was $38,480.
16. Beartooth Co. paid Summit Company for purchase of August 1.
25. Beartooth Co. paid Summit Company on account for purchase of August 15.
31. Beartooth Co. paid Summit Company on account for purchase of August 5.
Required:
Journalize the August transactions for Beartooth Co.
Answer:
1. Summit Company sold merchandise on account to Beartooth Co., $45,550, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,960.
Dr Merchandise inventory 45,550
Cr Accounts payable 45,550
2. Summit Company paid freight of $1,125 for delivery of merchandise sold to Beartooth Co. on August 1.
no journal entry
5. Summit Company sold merchandise on account to Beartooth Co., $59,600, terms FOB shipping point, n/eom. The cost of the goods sold was $43,900.
Dr Merchandise inventory 59,600
Cr Accounts payable 59,600
9. Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company.
Dr Merchandise inventory 2,440
Cr Cash 2,440
15. Summit Company sold merchandise on account to Beartooth Co., $63,100, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,625, which was added to the invoice. The cost of the goods sold was $38,480.
Dr Merchandise inventory 64,725
Cr Accounts payable 64,725
16. Beartooth Co. paid Summit Company for purchase of August 1.
Dr Accounts payable 45,550
Cr Cash 44,639
Cr Purchase discounts 911
25. Beartooth Co. paid Summit Company on account for purchase of August 15.
Dr Accounts payable 64,725
Cr Cash 64,0949
Cr Purchase discounts 631
31. Beartooth Co. paid Summit Company on account for purchase of August 5.
Dr Accounts payable 59,600
Cr Cash 59,600
An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 8.75% yields, what yield must municipals offer for the investor to prefer them to corporate bonds
Answer:
6.125%
Explanation:
Calculation for what yield must municipals offer for the investor to prefer them to corporate bonds
The after-tax yield on the corporate bonds is: 8.75% x (1 - 0.30)
The after-tax yield on the corporate bonds is= 0.0875x 0.7
The after-tax yield on the corporate bonds is= 0.06125*100
The after-tax yield on the corporate bonds is= 6.125%
Therefore what yield must municipals offer for the investor to prefer them to corporate bonds is
6.125%