Answer and Explanation:
The journal entries are shown below:
On Nov 3
Merchandise Inventory $62,300 ($89,000 × (1-30%))
To Accounts Payable-Moonlight Co $62,300
(Being inventory purchased on account)
On Nov 4
Cash $38,210
To Sales $38,210
(Being cash is recorded)
Cost of goods sold $20,810
To Merchandise Inventory $20,810
(Being cost of inventory is recorded)
On Nov 5
Merchandise Inventory $52,280 ($51,550 + $730)
To Accounts Payable-Papoose Creek $52,280
(Being inventory purchased on account)
On Nov 6
Accounts Payable-Moonlight Co. $14,000
To Merchandise Inventory $14,000
(Being returned goods is recorded)
On Nov 8
Accounts Receivable-Quinn Co $ 15,010
To Sales $15,010
(Being sales is recorded)
Cost of goods sold $10,190
To Merchandise Inventory $10,190
(Being cost of inventory is recorded)
On Nov 13
Accounts Payable-Moonlight Co. 48,300 (62,300- 14,000)
To Cash 47,334
To Merchandise Inventory 966 ($48,300 × 2%)
(being cash paid is recorded)
On Nov 14
Cash $231,570
To Sales $231,570
(Being cash is recorded)
Cost of goods sold $142,060
To Merchandise Inventory $142,060
(Being cost of inventory is recorded)
On Nov 15
Accounts Payable-Papoose Creek $52,280
To Cash $51,249
To Merchandise Inventory 1,031 ($51,550 ×2%)
(Being cash paid is recorded)
On Nov 23
Cash $15,010
To Accounts Receivable-Quinn Co $15,010
(Being cash collection is recorded)
On Nov 24
Accounts Receivable-Rabel Co. $54,800
To Sales $54,800
(being sales is recorded)
Cost of goods sold $33,850
To Merchandise Inventory $33,850
(Being cost of inventory is recorded)
On Nov 28
VISA service fees $3,580
To Cash $3,580
(Being cash paid is recorded)
On Nov 30
Sales returns and allowances $6,420
To Cash 6,420
(Being sales return is recorded)
Merchandise Inventory 3,140
To Cost of goods sold $3,140
(Being returned inventory is recorded)
Which aspect of production planning might make use of a Gantt chart?
A.
routing
B.
loading
C.
scheduling
D.
dispatching
E.
inspection
On October 1, Vista View Company rented warehouse space to a tenant for $2,600 per month. The tennant paid five months rent in advance on that date, with the lease begginning immediately. The cash recipt was credited to the Unearned Rent account. The company's annual accounting period ends on December 31. The adjusting entry needed on December 31 is:
Answer:
The adjusting entry needed on December 31 is:
December 31
Debit : Unearned Rent $7,800
Credit : Rent Income $7,800
Explanation:
First, lets go through the accounting process of this journal as it started on October 1. Then afterwards we get to understand what needs to be adjusted and how.
October 1 - Vista View Company receives rent in advance.
Vista View Company, is not yet entitled to this amount since tenant has not used its services yet. That why the journal should be a simple Debit of Cash and Credit of Unearned Rent by the total of five months paid in advance $13,000 ($2,600 x 5 months).
December 31 - Now three months have expired and this period the Landlord is entitled to the amount that was previously received but only for the 3 months period.
Thus we need to recognize revenue and de-recognize the Unearned Rent liability with the amount for 3 months` rent
A trader wishes to know the cost of goods sold during the year.
Which financial statment will provide the answer? *
A Balance sheet
B Profit and loss Account
C Trading Account
D Trial Balance
there might be times your boss allows you to work from home.having the permission to work from home,you just took some office supplies anyway you are using it for work from home
Uhm is there a question or are you just stating this lol
Which methods can be used to run a query? Check all that apply.
On the Create tab, in the Queries group, click Run.
In query Design view, on the Design tab, click Run.
Switch to Datasheet view before any other commands.
Close the Show Table dialog box in the Datasheet view.
On the Create tab, in the Queries group, click Create Query.
Answer:
Option B and C
Explanation:
A query can be run by selecting query option visible through deign view option. After selecting the appropriate option, the query must be run. This shall execute the function for the selected option.
Like wise in data sheet view, one can see the action query before running it.
Hence, option B and C are correct
Answer:
B) In query Design view, on the Design tab, click Run.
C) Switch to Datasheet view before any other commands.
Explanation:
The typical firm in a perfectly competitive market earns zero economic profit in the long run because: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a firms in competitive markets tend to focus on revenue rather than profit. b U.S. law is designed so that taxes on earnings will eliminate profits. c there are no barriers preventing new firms from entering the market in the long run. d it is illegal for firms in a market that is comprised of many firms to continue to earn positive economic profit.
Answer:
c. there are no barriers preventing new firms from entering the market in the long run.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
In a perfectly competitive market in long-run equilibrium, a long-run equilibrium avails firms the opportunity to adjust all inputs and all fixed costs are maximized. Also, it's characterized by free entry and exit, as such there isn't a fixed number of firms. This simply means that, since the number of firms in a long-run equilibrium can change, a firm must exit the market as a result of losses i.e when the firm is unable to cover its fixed costs in the long-run while new firms are allowed entry into the market when it anticipates potential profits or gains.
However, the firms always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.
In a nutshell, in the long run equilibrium P=MR=MC and P=AC.
Therefore, a typical firm in a perfectly competitive market earns zero economic in the long run because there are no barriers preventing new firms from entering the market in the long run.
CL
ratio
Cygnus has a
dividend cover ratio
of 4.0 times and expects
zero growth in dividends. The company
has one million $1 ordinary shares
în issue and the market capitalization of
the
company
is $ 50 million
After tax profits for next year is expected to be $20 million.What is the cost of equity capital?
Answer:
The cost of equity is "10.00%".
Explanation:
The given values are:
After tax profits,
= $20 million
Number of shares,
= 1 million
Dividend cover ration,
= 4.0
Market capitalization,
= $50 million
Now,
The earning per share (EPS) will be:
= [tex]\frac{After \ tax \ profits}{Number \ of \ shares}[/tex]
On substituting the values, we get
= [tex]\frac{20}{1}[/tex]
= [tex]20[/tex] ($)
The dividend cover ratio = [tex]\frac{EPS}{Dividend \ per \ share}[/tex]
On substituting the given values, we get
⇒ [tex]4.0=\frac{20}{Dividend \ per \ share}[/tex]
⇒ [tex]Dividend \ per \ share=\frac{20}{4}[/tex]
⇒ [tex]=5[/tex] ($)
Market per share price will be:
= [tex]\frac{Market \ capitalization}{Number \ of \ shares}[/tex]
= [tex]\frac{50}{1}[/tex]
= [tex]50[/tex] ($) per share
So,
The cost of equity capital will be:
= [tex][\frac{Expected \ dividend}{Market \ price} ]+Growth \ rate[/tex]
On putting the values in the above formula, we get
= [tex][\frac{5}{50} ]+0.00[/tex]
= [tex]0.1+0.00[/tex]
= [tex]0.1[/tex] i.e., [tex]10.00[/tex]%
At the beginning of April, Owl Corporation has a balance of $11,500 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash, $10,000.
2. Provide services to customers on account, $7,000.
3. Provide services to customers in exchange for cash, $1,700.
4. Purchase equipment and pay cash, $6,100.
5. Pay rent for April, $1,200.
6. Pay employee salaries for April, $2,000.
7. Pay dividends to stockholders, $1,250.
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.)
Answer: $15,750
Explanation:
Retained earnings are profits so will be increased by sales and services provided and reduced by expenses.
They will also be reduced by dividends because that is where dividends are paid from:
Retained earnings = Opening balance + service for customers + service for customers - rent - employee salaries - dividends
= 11,500 + 7,000 + 1,700 - 1,200 - 2,000 - 1,250
= $15,750
In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at $6, (2) 470 units at $8, and (3) 570 units at $9. Assuming there are 270 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Wildhorse Co. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount
Answer:
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
Explanation:
First determine the units sold
Units Sold = Total Purchases - Units in hand
= 1,410 units - 270 units
= 1,140
Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.
FIFO
Means First in First Out
Cost of the ending inventory = 270 x $9.00 = $2,430
LIFO
Means Last in First Out
Cost of the ending inventory = 270 x $6.00 = $1,620
Conclusion
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
We have a graduated tax system, and the tax brackets are listed in Appendix A. If you are not familiar with the Fair Tax and Flat Tax ideas, do a little research. Share what you think would be best for our country.
Explanation:
i think the graduated tax system is fairest ,it imposes a higher rate on the rich than the poor and all this is done based on the tax payer if this is done it will help the poor to pay for needs such as shelter food and other personal needs it allows the poor to spend most of they money
Instructions: Please prepare a Balance Sheet on your scratch paper based on the following Adjusted Trial Balance and Additional Information below to answer this question and the next three (3) questions.
(Hint: you may also want to prepare a new Income Statement and Statement of Stockholders' Equity before preparing the Balance Sheet to make sure you have the necessary information for the Balance Sheet account balances.)
You will need to know the amounts for total current assets, total long-term assets, total current liabilities, total long-term liabilities, and total stockholders' equity.
Adjusted Trial
Balance As of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional Information:
Beginning Balance of Common Stock on 1/1/20xx $2.100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
No new stock was issued during the accounting period. .
Hint: Please remember the formula for retained earnings when preparing this statement
Question: What is the amount shown for Total Current Assets shown on the Classified Balance Sheet you prepared on your scratch paper?
Answer:
a) Balance Sheet as of December 31, 20xx:
Assets:
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Total current assets $35,586
Building 100,000
Acc. Depreciation (6,000) $94,000
Total assets $129,586
Current Liabilities:
Accounts Payable $1,800
Deferred Revenue 1,300
Total current liabilities $3,100
Notes Payable (due in
24 months 80,486
Total liabilities $83,586
Common Stock 2,100
Retained Earnings 43,900 46,000
Total liabilities and equity $129,586
b) Total current assets = $35,586
Explanation:
a) Data and Calculations:
Adjusted Trial
Balance as of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1,800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional data:
Beginning Balance of Common Stock on 1/1/20xx $2,100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
Income Statement for the year ended December 31, 20xx
Service Revenue $12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000 10,900
Net Income 1,500
Statement of Stockholders' Equity:
Beginning Common Stock on 1/1/20xx $2,100
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Ending Equity balance on 12/31/20xx $46,000
Retained Earnings on 12/31/20xx:
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Retained Earnings on 12/31/20xx $43,900
A company called Brightline has made a deal with Disney to create a rail station at Disney Springs on its planned route from Miami to Tampa. Read about this. Is a private rail link a good idea? Will it make Amtrak function any better? Will it create openings for private sector rail owner/operators as was the case in the USA before Amtrak and as is the case in the UK where not all rail services are BritRail?
Answer:
The answer for all three questions is yes.
A private player will increase competition and will make Amtrak provide a better service. Private companies are generally more efficient since their focus is on creating value.
Amtrak might benefit since the private rail might be used as additional help when their service is overloaded.
Increased competition and increase in private investment is always better for everyone since it creates new opportunities.
The market for bell peppers is perfectly competitive and currently has an equilibrium price of $3 and the number of bell pappers traded is 6. Suppose the government imposes a price floor of $1 on this market. What will be the size of the shortage in this market
Well, the price would increase by 1 dollar, so the shortage would be 2 less.
There should be no shortage.
What is a price floor?
It is the minimum price where the producer should charge also at the same time it should be binding and considered effective. In the case when the price floor should be above the equilibrium price so it should be the surplus while on the other hand if the price floor is below the equilibrium price so that means it is no surplus. Also, the shortage is not possible
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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $100 Units in beginning inventory 0 Units produced 8,800 Units sold 8,400 Units in ending inventory 400 Variable costs per unit: Direct materials $ 15 Direct labor $ 57 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $132,000 Fixed selling and administrative expense $ 8,500 What is the net operating income (loss) for the month under variable costing
Answer:
$10,700
Explanation:
The unit product cost = $15 + $57 + $3 = $75
Sale revenue = $100 × 8,400 = $840,000
Less :Variable cost
Variable cost of goods sold = 8,400 × $75 = $630,000
Variable selling and administrative = 8,400 × $7 = $58,800
Contribution margin = $151,200
Fixed manufacturing overhead = $132,000
Fixed selling and administrative expenses = $8,500
Net operating income = $10,700
Pacheco Inc. issued convertible bonds 10 years ago. Each bond had an initial term of 30 years, had a face value of $1,000, paid a coupon rate of 11%, and was convertible into 20 shares of Pacheco stock, which was selling for $30 per share at the time. Since then the price of Pacheco shares has risen to $65 and the interest rate has dropped to 8%. What is the least that each of the bonds is worth today
Answer:
$1,296.90
Explanation:
Calculation for What is the least that each of the bonds is worth today
First step is to calculate the stock each bond worth
Stock each bond worth=20 shares ×$65
Stock each bond worth= $1,300
Second step is to calculate what the bond is each worth using this formula
PV= PMT[PVFAk,n] + FV[PVFk,n]
Let plug in the formula
PV= $55[PVFA4,40] + $1,000[PVF4,40]
PV= $55(19.7928) + $1,000(.2083)
PV= $1,088.60 + $208.30
PV= $1,296.90
Therefore Based on the above calculation the least that each of the bonds is worth today is $1,296.90
Sheffield Company took a physical inventory on December 31 and determined that goods costing $218,900 were on hand. Not included in the physical count were $25,610 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,510 of goods sold to Alvarez Company for $32,160, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sheffield report as its December 31 inventory
Answer:
$267,020
Explanation:
Calculation to determine what amount should Sheffield report as its December 31 inventory
Using this formula
December 31 inventory= Goods costing on hand+Goods purchased+Goods sold
Let plug in the formula
December 31 inventory= $218,900+$25,610+$22,510
December 31 inventory=$267,020
Therefore The amount that Sheffield should report as its December 31 inventory is $267,020
economics is the study of a society's financial institutions. true or false
Answer:
False
Explanation:
Economics is the study of a society's financial institutions. This statement is False.
What is Economics?Economics is a social science that examines how products and services are produced, distributed, and consumed as well as the decisions that people, corporations, governments, and nations make when allocating resources.
While macroeconomics focuses on the behavior of the economy as a whole on an aggregate level, microeconomics focuses on the decisions made by individuals and enterprises.
Hesiod, a Greek farmer, and poet who lived in the eighth century B.C. is one of the oldest economists known to have written about the necessity for efficient allocation of labor, resources, and time to combat scarcity. The first modern Western economic ideas emerged with the publication of Adam Smith's book An Inquiry Into the Nature and Causes of the Wealth of Nations in 1776.
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what happens if a business doesn't meet target profit
Answer:
If revenues are less than total cost, a company does not reach the break even point, which results in a less. A company that fails to make enough sales to meet the break even point accumulates debt over time, which can eventually cause a company to go out of business .
Explanation:
I hope it is the right answer you were looking for.
Which of the following statements describes the cost of capital?
A. The interest rate the bank charges its best customers.
B. The internal rate of return on investments.
C. The maximum acceptable rate of return on investments.
D. The minimum rate of return on investments.
Answer: The minimum rate of return on investments.
Explanation:
The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.
The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.
The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.
A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $220,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $400 per month for utilities and the investment increases at a rate of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has invested in it
Answer:
59.5 months
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($400 x n)
$220,000 x (1 + 0.75%)ⁿ = $320,000 + $400n
1.0075ⁿ = $320,000/$220,000 + $400n/$220,000
1.0075ⁿ = 1.4545 + 0.001818n
I tried to solve it by trial and error:
50 months:
1.453 ≠ 1.5454
60 months:
1.566 ≈ 1.564 ⇒ Almost
61 months:
1.577 ≠ 1.565
59 months:
1.554 ≈ 1.562 ⇒ Almost
59.5 months:
1.56 = 1.56
Bought equipment for cash, $48,900. Paid $14,700 on the long-term note payable. Issued new shares of stock for $38,050 cash. Dividends of $650 were declared and paid. Other expenses all relate to wages. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year.
Answer:
Part a
Statement of Cash flows for the year ended December 31
Cash flow from Operating Activities
Net Income 26,800
Add Depreciation 11,700
Adjust for Changes in Working Capital
Increase in Accounts Receivable (6,100)
Increase in Inventory 5,450
Decrease in Accounts Payable (2,500)
Decrease in Wages Payable (700)
Cash flow from Investing Activities
Equipment Purchased (48,900)
Cash flow from Financing Activities
Retired Long term note payable (14,700)
New Stock Issues 38,050
Dividends Paid (650)
Changes in Cash and Cash Equivalent 7,550
Beginning Cash and Cash equivalent 65,700
Ending Cash and Cash equivalent 73,250
Part b
Sources of Cash : Issue of Stock
Uses of Cash : Purchase of Equipment
Explanation:
NOTE : I have attached the full question as image below.
The Indirect method has been required for this question. This means we reconcile the Net Income to Operating Cash flow by adjusting non-cash items in Income and changes in working capital.
Do It! Review 9-2a On January 1, 2017, Salt Creek Country Club purchased a new riding mower for $17,500. The mower is expected to have a 10-year life with a $600 salvage value. What journal entry would Salt Creek make on December 31, 2017, if it uses straight-line depreciation
Answer:
Salt Creek should make a journal entry to record full one year depreciation expenses relating to the mower at 31st December 2017 as followed;
Dr Depreciation expenses - Machinery $1,690
--------Cr Accumulated depreciation - Machinery $1,690
Explanation:
Depreciation refers to the fall in the value of an asset. The annual depreciation expenses relating to Mower would be calculated as;
Annual depreciation expense = (Initial cost of Mower - Estimated salvage value) / Expected useful life.
= ($17,500 - $600) / $10
= $16,900 / $10
= $1,690
Since the Mower is purchased on January 1st, 2017, at 31st December 2017, Salt creek should make a entry to record full year depreciation expense.
From the next year onwards, Colt Systems is estimated to have an EBIT of $15 million. It will also spend $6 million annually on total capital expenditures and increases in net working capital, and have $3 million in depreciation expenses. Colt is currently an all-equity firm with a corporate tax rate of 35% and a cost of capital of 10%. a) What is the market value of its equity today (assuming all cash flows are paid back to the equity holders at the end of each year)?
Answer: $67.5 million
Explanation:
Since we are given the information that all cash flows are paid back to the equity holders at the end of each year, the market value of its equity today will be:
= [EBIT × (1 - t) + Depreciation - Capital Expenditure - Change in Working capital] / (Cost of Capital - Growth rate)
= ($15 million(1 - 35%) + $3 million - $6 million) / 10%
= [$15 million (1 - 0.35) + $3 million - $6 million] / (10%
= ($15 million × 0.65) + $3 million - $6 million) / 0.1
= ($9.75 million + $3 million - $6 million)/0.1
= $6.75 million / 0.1
= $67.5 million
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $26,000, and the common fixed expenses were $56,000. The contribution margin ratio for Product Q was 40%, its sales were $141,000, and its segment margin was $48,000. If the contribution margin for Product P was $46,000, the segment margin for Product P was:
Answer:
$34,000
Explanation:
Given the above information, the computation of segment margin for product P is shown below;
Net operating profit = (Segment margin Q + Segment margin P) - Common fixed expenses
$26,000 = ($48,000 + Segment margin P) - $56,000
$26,000 = $48,000 + Segment margin P - $56,000
$26,000 = Segment margin P - $8,000
Segment margin P = $26,000 + $8,000
Segment margin P = $34,000
UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart
Answer:
7.78%
Explanation:
Calculation for the expected return on a portfolio
First step is to calculate the portfolio beta
Portfolio beta=30%*1.1+30%*0.7=1.15
Portfolio beta=0.33+0.21
Portfolio beta=0.54
Now let calculate the expected return using this formula
Expected return=rf+(Portfolio beta*mrp)
Let plug in the formula
Expected return=4%+(0.54*7%)
Expected return=7.78%
Therefore the expected return on a portfolio is 7.78%
A corporation is concerned about their exposure to criminal liability after the most recent election cycle placed a number of new legislators in Congress who campaigned against corporate corruption. Select the strategy that would be least effective in reducing the company's criminal liability.
A. It could prioritize ethical leadership when making hiring decisions for management-level positions.
B. It could encourage reporting by establishing internal protections for whistleblowers beyond what is provided by Congressional law.
C. It could strengthen its code of ethics to reflect the current political mood.
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Answer:
The strategy that would be least effective in reducing the company's criminal liability is:
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Explanation:
While the other three options will effectively reduce the company's criminal liability exposure, option D is the least that is likely to have a positive or effective effect. This implies that option D is most likely to aggravate the criminal liability of the company as it will be regarded as bribery to cover up a crime.
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018.
Complete the necessary journal entry to record the declaration of the stock dividend by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
list Journal entry worksheet
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018
Note Enter debit before credits
Date General Journal Debit Credit
Dec 31
Record entry Clear entry View General journal
Answer:
1. Dec 31, 2018
Dr Retained Earnings $200,000
Cr Common Stock dividend distributable $40,000
Cr Paid in Capital in Excess of par $160,000
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,00
Explanation:
Preparation of the necessary journal entry to record the declaration of the stock dividend
1. Dec 31, 2018
Dr Retained Earnings $200,000
(100,000 Shares * 20%* $ 10)
Cr Common Stock dividend distributable $40,000
(100,000 Shares * 20%* $2)
Cr Paid in Capital in Excess of par $160,000
($ 200,000 - $ 40,000 )
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,000
(100,000 Shares * 20%* $2)
Lyman Company has the opportunity to increase annual credit sales $100,000 by selling to a new, riskier group of customers. The expenses of collecting credit sales are expected to be 15 percent of credit sales. The company's manufacturing and selling expenses are projected at 70% of sales, and its effective tax rate is 40%. If Lyman accepts this opportunity, its after-tax profits would increase by an estimated:_____.
a. $10,200.
b. $10,000.
c. $9,000.
d. $14,400.
Answer:
Option c ($9,000) is the correct answer.
Explanation:
The given values are:
Annual increase in sales,
= $100,000
Now,
The collection expenses will be:
= [tex]100,000\times 15 \ percent[/tex]
= [tex]15,000[/tex]
Selling as well as manufacturing expenses will be:
= [tex]100,000\times 70 \ percent[/tex]
= [tex]70,000[/tex]
Tax expense will be:
= [tex]15,000\times 40 \ percent[/tex]
= [tex]6,000[/tex]
After-tax profits increase will be:
= [tex]15,000-6,000[/tex]
= [tex]9,000[/tex] ($)
Required information
[The following information applies to the questions displayed below.]
A + T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: A two-year insurance premium of $6,960 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.
Shipping supplies on hand, January 1 of the current year Purchases of shipping supplies during the current year Shipping supplies on hand, counted on December 31 of the current year 20
Required:
1. Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required information Journal entry worksheet Record the adjusting journal entry for insurance premium of $4,800 on December 31 of the current year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
2. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense? (Do not round intermediate calculations.) Insurance expense Shipping supplies expense
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round intermediate calculations.) Prepaid insurance Shipping supplies
Answer:
Missing word
"Shipping supplies on hand, January 1 of the current year $13
Purchases of shipping supplies during the current year $75
Shipping supplies on hand, counted on December 31 of the current year $20"
1. Adjusting entry for insurance at December 31 of the current year.
S/n General Journal Debit Credit
a. Insurance expense $870
(6,960/24)*3=$ 600
Prepaid insurance $870
(Insurance expired)
b. Shipping supplies expenses $68
($13+$75-$20)
Shipping supplies $68
(Supplies used)
2. What amount should be reported on the current year's income statement for Insurance Expense?
Insurance expense = $870
Shipping supplies expense = $68
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance?
Prepaid insurance = ($6,960-$870) = $6,090
Shipping supplies as on Dec 31. = $20
On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $10,100 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that an 12% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much sales revenue would Wooten recognize on January 1, 2021
Answer: $9,017.89
Explanation:
Wooten will recognize the present value of $10,100 as it is to be paid to them in a year and the company sees time value of money as a significant component.
= 10,100 * Present value interest factor, 12%, 1 period
= 10,100 * 0.89286
= $9,017.886
= $9,017.89