Answer:
Retained Earnings, $212,000
At the end, accounts are closed against retained earnings, so no journal entry is needed.
Service Revenue, $810,000
Dr Service revenue 810,000
Cr Income summary 810,000
Salaries Expense, $372,000
Dr Income summary 372,000
Cr Salaries expense 372,000
Rent Expense, $132,000
Dr Income summary 132,000
Cr Rent expense 132,000
Interest Expense, $67,000
Dr Income summary 67,000
Cr Interest expense 67,000
Dividends, $42,000
Dr Retained earnings 42,000
Cr Dividends 42,000
To close income accounts (income summary = $810,000 - $372,000 - $132,000 - $67,000 = $239,000 profit)
Dr Income summary 239,000
Cr Retained earnings 239,000
Bobby Jones, an accountant for ABC Corporation, has been suspected of committing fraud. Some information already gathered about the fraud points to Bobby Jones as the most likely perpetrator. In his scheme, Bobby supposedly stole more than $5 million over the past three years. Due to the magnitude of the fraud and to set an example in the company, ABC decides to prosecute Bobby both civilly and criminally.
Describe What will happen to bobby jones during the civil litigation,including the stages of civil litigation that he and ABC will go through.
Answer:
In the civil litigation process what will happen to Bobby Jones are in four stages which are Inquiry and Pleading, Discovery, Motion Practice and Negotiation and Trial and Appeal.
Explanation:
Four steps are involved in the process of civil litigation stated as follows:
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
Inquiry and Pleading: The first step or phase is the inquiry and pleading.
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
(2) Discovery: This is where the various parties gives an effort to get more information as possible
(3) Motion Practice and Negotiation: This occurs prior to trial when bobby files motion to challenge the complaint issued against him.
(4)Trial and Appeal: The last stage is the trial and appeal. this occurs when the previous steps has failed.
In this step the trial is held, both Bobby and ABC Corporations seeks judgement from the judge and the judge issues the jury to put in the final verdict. If both parties are not satisfied with judgement received, they can appeal to a higher court to review the verdict or decision.
An expansionary fiscal policy will Question 4 options: always result in a budget deficit. always result in a budget surplus. sometimes result in a budget deficit. never result in a budget surplus. More information is necessary to answer this question.
Answer:
always result in a budget deficit.
Explanation:
Expansionary fiscal policy are policies undertaken by the government to increase the supply of money in the economy.
Tools of Expansionary fiscal policy are :
tax cuts
increased government spending
transfer payments.
A budget deficit occurs when government spending exceeds income.
If taxes are cut, revenue of the government would fall and this can lead to a budget deficit.
Also if the government increases its spending, spending can exceed income and this would lead to a deficit.
I hope my answer helps you
Alpha Industries is considering a project with an initial cost of $8.6 million. The project will produce cash inflows of $2.04 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.79 percent and a cost of equity of 11.39 percent. The debt–equity ratio is .66 and the tax rate is 35 percent. What is the net present value of the project? Multiple Choice $656,266 $625,015 $758,352 $506,837 $729,185
Answer:
$729,185
Explanation:
The computation of the net present value of the project is shown below:-
After-tax cost of debt = Cost of debt × (1 - Tax rate)
= 5.79% × (1 - 0.35)
= 5.79% × 0.65
= 3.76%
Debt-equity ratio = Debt ÷ Equity
we assume Equity = x
Debt = 0.66 x
Total = 1.66 x
WACC = Respective costs × Respective weight
= (x ÷ 1.66 x × 11.39) + (0.66 ÷ 1.66x × 3.76%)
= 6.861445783 + 1.494939759
= 8.356385542 %
Net present value = Cash inflow × (Discount rate^time period - 1) ÷ (WACC × (1 + WACC)^Number of years - Initial cost
= $2,040,000 × (1.0836^6 - 1) ÷ (0.0836 × 1.0836^6) - $8,600,000
= $728,559
which is nearest to
= $729,185
Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. The Cabinet Division currently purchases 10,000 units of part Z-25 from the Lock Division for $40. The Cabinet Division has been approached by an outside supplier willing to supply the parts for $36. What is the effect on Morgantown's overall profit if the Lock Divisi
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
Outside the United States and the United Kingdom, concentrated ownership of the company is more the exception than the rule. diffused ownership of the company is more the exception than the rule. partnerships are more important than corporations. none of the options 1.25 points Save Answer
Answer:
Diffused ownership of the company is more the exception than the rule.
Explanation:
Outside the United States and the United Kingdom, diffused ownership is more the exception than the rule mostly because the forms of diffuse corporate ownership tend to have an American or British origin, and from the U.S. and the U.K., they expand to other countries with time.
For example, Limited Liability Companies is a type of company with diffused ownership, and has been exported with different names to other countries, becoming more popular with time.
A project consists of three activities: A, B, and C. Activities A and B can begin at time 0 (start of the project), but activity C can only start after B is completed. The project ends when all activities are completed. The durations of the activities were simulated 10 times and the following values were obtained: Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Answer:
Explanation:
Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Since B is the predecessor of C.
Project completion time for each run will be calculated as Maximum (Duration of A, Duration of B +Duration of C).
Represent
Run = R
Duration of A = DA
Duration of B = DB
Duration of C = DC
Project Completion time = PT
R DA DB DC PT
1 51 48 17 48 + 17 = 65
2 60 48 19 48 + 19 = 67
4 31 48 22 48 + 22 = 70
5 30 31 14 31 + 14 = 45
6 41 16 17 41
7 44 12 6 44
8 44 12 10 44
9 45 43 9 43 + 9 = 52
10 60 41 10 60
Total = 546
Total Project completion time in 10 Stimulations = 546
Average project Completion time = 546/10 = 54.6
Therefore, average Project completion time is between 53 and 56 days.
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
Baja Airlines is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 50,000 shares of common stock at $40 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 12%, 10-year bonds at face value for $2,000,000. It is estimated that the company will earn $800,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 90,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. $2.66.)
Answer:
Baja Airlines
Financing Alternatives:
Issued Common Stock Issued 12% Bonds
Earnings before interest & taxes $800,000 $800,000
Interest 240,000
Earnings before taxes $800,000 $560,000
Taxes: 30% 240,000 168,000
Net Income $560,000 $392,000
Number of Shares Issued 140,000 90,000
EPS $4 $4.36
Explanation:
a) With the issue of new shares, the net income was $560,000 unlike when bonds were issued, and the net income was $392,000. This shows that bond interest reduced the after-tax net income by $168,000.
b) EPS is earnings per share. It is the net income divided by the number of outstanding shares. With the issue of new shares, the EPS was $4 unlike when bonds were issued, and the EPS recorded was $4.36.
c) Implication: Stockholders benefit more with the issue of bonds than with the issue of new shares which dilute their earnings.
Consider the following alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 11 % per year. b. What is your ranking if the interest rate is 1 % per year? c. What is your ranking if the interest rate is 20 % per year?
Answer and Explanation:
The computation is shown below:
The formula is
= Amount ÷ (1 + interest rate)^number of years
a) Rate = 11%
Value of $140 in 1 year = $140 ÷ (1 + 11%) = $126.13
Value of $240 in 5 years = $240 ÷ (1 + 11%)^5 = $142.43
Value of $350 in 10 years = $350 ÷ (1 + 11%)^10 = $123.26
Now Ranking
Opotion 2 > Option 3 > Option 1
b) Rate = 1%
Value of $140 in 1 year = $140 ÷ (1 + 1%) = $138.61
Value of $240 in 5 years = $240 ÷ (1 + 1%)^5 = $228.35
Value of $350 in 10 years = $350 ÷ (1 + 1%)^10 = $316.85
Now Ranking
Option 3 > Option 2 > Option 1
c) Rate = 20%
Value of $140 in 1 year = $140 ÷ (1 + 20%) = $116.67
Value of $240 in 5 years = $240 ÷ (1 + 20%)^5 = $96.45
Value of $350 in 10 years = $350 ÷ (1 + 20%)^10 = $56.53
Now Ranking
Option 1 > Option 2 > Option 3
Claudia feels strongly against a law that was recently passed in her hometown. She proceeds to write letters to the local newspaper criticizing the effect of the law. She also marches up and down the sidewalk in front of city hall loudly publicizing her opinion. Which law or principle of law which is most relevant to this situation?
a. Procedural Due Process
b. First Amendment
c. Equal Protection Laws
d. Substantive Due Process
Answer:
Option(b) is the correct answer to the given question
Explanation:
The main objective of the first amendment says that freedom and rights regarding to the correct to the protest, religious faith, appearance as well as assembly.This law is all about the freedom to all the region of the person .
The first amendment prohibits Congress both from supporting yet another religious belief over the other and prohibiting the religious beliefs of even a person as well.As claudia writing the letters to the news paper supportive of the law's effect. She also protests upwards the sidewalk, noisily promoting her viewpoint in front of town hall it is similar to first Amendment law.All the other option are not related to the given scenario that's why these are incorrect option .Item 3Item 3 Manufacturing overhead was estimated to be $385,700 for the year along with 20,300 direct labor hours. Actual manufacturing overhead was $423,400, and actual labor hours were 21,600. The amount debited to the Manufacturing Overhead account would be:
Answer:
$423,400
Explanation:
The Overhead applied to Product Costs are Credited in the Overhead Account whilst the Overheads Actually incurred are Debited. The difference between the debit and credit will represent the amount of overheads under-applied or overheads over applied.
Actual Overheads incurred = $423,400
Applied Overheads = $385,700/20,300 × 21,600
= $ 410,400
Answer:
Debit manufacturing overhead with actual overhead incurred-$423,400
Explanation:
Absorbed overhead = Overhead absorption rate (OAR) × actual direct labour hours
OAR = Budgeted overhead / Budgeted labour hours
= $385,700/20,300 hours=
Absorbed overhead = $19 × 21,600 =$410,400
Absorbed overhead = $410,400 .
In accounting for overhead the following entries would be observed
Debit manufacturing overhead with actual overhead incurred-$423,400
And credit manufacturing overhead with absorbed overhead- $410,400
The difference of $13000 is the over absorbed overhead
Prepare Journal Entries in a Revenue Journal Horizon Consulting Company had the following transactions during the month of October: Oct. 2 Oct. 3 Oct. 14. Oct. 24 Oct. 29 Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380 Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790 Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format revenue journal Accounts Rec. Dr DATE Invoice No. Account Debited Post. Ref Fees Earned Cr Oct. 2 Oct. 3 Oct. 14 Oct. 24 Oct. 31
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp, customer account assuming a zero balance on October 1?
Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,100 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $
Answer:
$7,840
Explanation:
The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.
As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:
$9,100-$1,100= $8,000
Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:
$8,000*2%= $160
$8,000-$160= $7,840
According to this, the answer is that the amount of cash required for the payment is $7,840.
You make the following deposits for the next five years into an investment account. All deposits are made at the end of the year and the first deposit occurs one year from now. No more deposits are made after year 5. You will leave all the money in the account until year 30. If you earn 10 percent annual return for the first five years and 8 percent annual return for all subsequent years, how much will you have in the account at the end of year 30?
Answer:
Instructions are below.
Explanation:
Giving the following information:
First investment:
5 deposits for 5 years at an interest rate of 10%.
Second investment:
Lump-sum for 25 years at an interest rate of 8%.
We weren't provided with the value of the deposits, but I can provide the formulas and an example.
First investment:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= $2,000
FV= {2,000*[(1.10^5)-1]} / 0.10
FV= $12,210.2
Second investment:
FV= PV*(1+i)^n
FV= 12,210.2*(1.08^25)
FV= $83,621.25
A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table.
Reserve Requirement Simple Money Multiplier Money Supply
(Percent) (Dollars)
25
10
A lower reserve requirement is associated with a money supply.
Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to worth of U.S. government bonds.
Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to worth of U.S. government bonds in order to increase the money supply by $100.
Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply.
The Fed cannot control the amount of money that households choose to hold as currency.
The Fed cannot prevent banks from lending out required reserves.
The Fed cannot control whether and to what extent banks hold excess reserves.
Answer: The answers are provided below
Explanation:
A. Total Reserve = $100
Money supply = Total reserve × multiplier
When the reserve requirement is 25%,
Simple money multiplier = 100/25 = 4
Money supply = 100 × 4 = $400
When the reserve requirement is 10%,
Simple money multiplier = 100/10 = 10
Money supply = 100 × 10 = $1000
B. A lower reserve requirement is associated with a (larger) money supply. This is done when the government wants more money to be in circulation. It is an expansionary policy.
C. Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to (purchase 100 × 10% = $10) worth of United States government bonds.
D. Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to (fall to 100 ÷ 20=5). Under these conditions, the Fed would need to (purchase 100 × 20% = $20) worth of U.S. government bonds in order to increase the money supply by $100.
E. The statements that help to explain in the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves
The Money Multiplier denotes how an initial deposit can result in a larger final increase in the total money supply.
What do you mean by money multiplier?The money multiplier is a term in the financial economy that is the act of generating money in the economy through credit creation, based on a fractional banking system.
Money multiplication is also known as cash multiplication.
[tex]\rm\,Total\; Reserve = \$100\\\\Money\; supply = Total \;reserve \; \times \rm\, multiplier\\\\When \;the\; reserve \;requirement \;is \;25\%\\\\Simple\; money \;multiplier\; = \dfrac{1}{25\%} = 4\\\\Money \;supply = 100 \times 4 = \$400\\\\When\; the \;reserve\; requirement\; is \;10\%,\\\\Simple\; money \;multiplier = \dfrac{1}{ 10\%} = 10\\\\Money \;supply = 100 \times 10 = \$1000[/tex]
In the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves.
Hence, the Fed cannot control the amount of money that households choose to hold as currency and the Fed cannot control whether and to what extent banks hold excess reserves are the correct statements.
To learn more about money multiplier, refer:
https://brainly.com/question/14182201
Exercise 15-7 Adjusting available-for-sale securities to fair value LO P3 On December 31, 2017, Reggit Company held the following short-term investments in its portfolio of available-for-sale securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31, 2017, adjusting entry to report these investments at fair value.
Answer:
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale $15,000
Explanation:
Cost :
Verizano corporation bonds payable - 61,400
Preble corporation notes payable - 53,100
Lucerne company common stock - 88500
Fair value :
Verizano corporation bonds payable - 56,200
Preble corporation notes payable - 44,600
Lucerne company common stock - 85, 200
Total:
Cost = $(61,400 + 53100 + 88500) = $203,000
Fair value = $(56,200 + 44600 + 85200) = $188,000
Unrealized amount = cost - fair value
$203,000 - $188000 = ($15000) loss
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale (ST) $15,000
Bell expects to produce 1 comma 800 units in January and 2 comma 155 units in February. The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4 comma 950 pounds. Bell desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 860 pounds. Prepare Bell's direct materials budget for January and February.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production:
January= 1,800 units
February= 2,155 units
The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound.
Beginning inventory= 4,950 pounds.
Desired ending inventory= 20% of the next month's direct materials needed for production.
Desired ending balance for February is 4,860 pounds.
To calculate purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
January (in pounds):
Production= 1,800*3= 5,400
Desired ending inventory= (2,155*3)*0.2= 1,293
Beginning inventory= (4,950)
Total= 1,743
Total cost= 1,743*10= $17,430
February (in pounds):
Production= 2,155*3= 6,465
Desired ending inventory= 4,860
Beginning inventory= (1,293)
Total= 10,032
Total cost= 10,032*10= $100,320
Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon) 1 $ 943.40 2 873.52 3 816.37 a. An 8.5% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be
Answer:
6.997%
Explanation:
To find the answer, we use the Yield to Maturity (YTM) for a Zero Coupon Bond:
YTM = [(F/PV)^1/n] - 1
Where:
F: Face/Par value (the question is telling us that the par value of a 3-year bond is $816.367)
PV: Present Value (which is the same as the price: $1,000)
n: number of periods (in this case 3 years because the coupon is annual)
Now, we plug the amounts into the formula:
YTM = [($1,000/$816.37)^1/3]-1
YTM = 6.997%
The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In thecurrent year, the trust earns $3,200 in taxable interest and $8,000 in tax-exempt interest. In addition, the trust recognizes a $2,500 long-term capital gain.The trustee assesses a fee of $1,800 for the year.
a. Compute trust accounting income, where the trust agreement allocates fees andcapital gains to corpus.
b. Same as (a), except that fees are allocated to income.
Answer:
A. Trust agreement allocates fees and capital gains to corpus.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Trust accounting income $11,200
B. When fees are allocated to income.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Less: Fees ($-1,800)
Trust accounting income $9,400
The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A. Debit to Factory Overhead unanswered
B. Credit to Factory Overhead unanswered
C. Debit to Factory Utilities Payable unanswered
D. Credit to Factory Utilities Payable unanswered
E. Credit to Raw Materials unanswered
F. Credit to Factory Wages Payable unanswered
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has five years to maturity, whereas the Hardy Corp. bond has 18 years to maturity.
A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?
Answer:
A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
Laurel, Inc. = -8.11%
Hardy Corp. = -18.91%
B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?
Laurel, Inc. = +8.98%
Hardy Corp. = +25.49%
Explanation:
bonds with 6% semiannual coupons, sold at par $1,000
Laurel, Inc. bond maturity in 5 years
Hardy Corp. bond maturity in 18 years
the current price of a bond is the sum of the present value of its face value and coupons. I will use an annuity table to calculate PV of face value and an ordinary annuity table for the coupons:
Laurel, Inc.
market rate 4% = ($1,000 x 0.8203) + ($30 x 8.9826) = $820.30 + $269.48 = $1,089.78, % change = 89.78/1,000 = 8.98%
market rate 8% = ($1,000 x 0.6756) + ($30 x 8.1109) = $675.60 + $243.33 = $918.93, % change = -81.07/1,000 = -8.11%
Hardy Corp.
market rate 4% = ($1,000 x 0.4902) + ($30 x 25.489) = $490.20 + $764.67 = $1,254.87, % change = 254.87/1,000 = 25.49%
market rate 8% = ($1,000 x 0.2437) + ($30 x 18.908) = $243.70 + $567.24 = $810.94, % change = -189.06/1,000 = -18.91%
During its first year of operations, Mack’s Plumbing Supply Co. had sales of $420,000, wrote off $6,700 of accounts as uncollectible using the direct write-off method, and reported net income of $46,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.
Answer:
The net income would have been $45,550
Explanation:
In order to calculate the amount the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible, we would have make the following calculation:
Net income would have been if the allowance method had been used = $46,200 + $6,700 – ($420,000 × 1 3/4%)
Net income would have been if the allowance method had been used= $45,550
The net income would have been $45,550
Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock 5 years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought 3 years ago for $9,500. What is Pekoe's recognized gain or loss?
Answer:
The answer is $3000
Explanation:
Solution
Given that:
Pekoe sold stock to his sister rose for the amount = $12,000
The stock cost 5 years ago for Pekoe = $16,000
Pekoe sold earl stock for =$6,500
Previous stock for earl 3 years ago = $9,500
Now we have to find the recognized loss of Pekoe
THus,
The sale of stock to rose will be a loss of $ 4000
which is
($12,000 -$16,000) =$4000 loss
Thus,
The sale of stock to Earl will result to the following loss which is state below:
$6,500 - $9,500 = a loss of $3000
Therefore the recognized loss of pekoe is $3000 or -$3000
Note: A loss was recognized here, no gain earned
Answer:
Pekoe would recognize the loss of $3,000.
Explanation:
The sale of stock to Rose would result in a loss of $3,000 ($12,000 (FMV) - $16,000 (cost) = $4,000 loss).
Under the tax law, "losses from sale or exchange of property ... directly or indirectly" are disallowed between related parties. When the property is later sold to an unrelated party, any disallowed loss may be used to offset gain on that transaction.
The sale of stock to Earl (an unrelated party) also results in a loss ($6,500 (FMV) - $9,500 (cost) = $3,000 loss). This is considered an arms-length transaction.
Pekoe would recognize the loss of $3,000.
Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Incomplete question, however I made interferences from an employer perspective.
Answer:
Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.
The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.
Answer:
C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
Took The TestBased on this information, you can say that the overall "price level" ___________. A. remained unchanged during the year since the average price for the three goods stayed the same at $ 7.33. B. increased since cashews are now more expensive than almonds and pecans. C. stayed the same since the price of cashews increased but the price of almonds fell. D. there is not enough information to determine the change in the overall price level.
Answer:
D. there is not enough information to determine the change in the overall price level.
Explanation:
A price level is the average of current prices across the entire spectrum of goods and services produced in the economy. To determine the price level, information about current and past period's prices of a basket of goods and services is needed to be compared.
It is only the availability of two or more sets of such information that will enable a comparison to be made and for conclusions to be drawn.
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
The reporting statement of fixed asset account is shown. The transactions are listed as follows:
Date Item Debit Credit Debit Credit
Jan. 1 Balance 885,000
Mar. 12 Purchased for cash 274,000 1,159,000
Oct. 4 Sold fo $151,000 129,000 1,030,000
Item Section of Statement of Cash Flows Added or Deducted Amount
Mar. 12: Purchase of fixed asset $
Oct. 4: Sale of fixed asset $
Gain on sale of fixed asset (assume the indirect method) $
Answer and Explanation:
The computation of the purchase of fixed assets is shown below:-
March 12 Purchase of fixed assets = $274,000. This same is shown in the investing activities section of the cash flow statement in the negative sign
October 4 Sale of fixed assets = $151,000. This same is shown in the investing activities section of the cash flow statement in the positive sign
Gain on sale of the fixed asset is
= Sales Value - Cost of asset
= $151,000 - $129,000
= $22,000
This amount is shown in the operating activities section of the cash flow statement in the negative sign
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
Hope this helps!!! PLZ MARK BRAINLIEST!!!
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.
Describe a problem you face in your everyday life or at work. How might you use hypothesis testing to find a solution or improvement to that problem? Would you conduct a one-sample or two-sample test? What would be your null and alternative hypotheses?
Answer:
The common problem i encounter mostly is the statistical modelling problem.
In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.
My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.
Explanation:
Solution
The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.
In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.
Since there are always two variables or two categories. hence it has a two sample test.
The Hypothesis can be shown below:
Null hypothesis:
H0:There is no significant effect of independent variable on dependent variable.
Alternative hypothesis:
Ha: There is significant effect of independent variable on dependent variable.