Answer:
600
Explanation:
View Point Industries has forecasted a rate of return of 20.00% if the economy booms (25.00% probability); a rate of return of 15.00% if the economy is in a growth phase (45.00% probability); a rate of return of 2.50% if the economy is in decline (20.00% probability); and a rate of return of -15.00% if the economy is in a depression (10.00% probability). What is View Point's standard deviation of returns
Answer: 10.46%
Explanation:
Based on the information given in the question, View Point's standard deviation of returns will be calculated thus:
Firstly, we have to calculate the expected rate of return which will be the respective returns multiplied by the respective probabilties and this will be:
= (0.2 × 0.25) + (0.15 × 0.45) + (0.025 × 0.2) + (-0.15 × 0.10)
=10.75%
Then, we'll calculate the total probability and this will be:
= [0.25 × (20 - 10.75)²] + [0.45 × (15 - 1.75)²] + [0.2 × (2.5 - 10.75)²] + [0.1 × (-15 - 10 75)²]
= 21.3906 + 8.1281 + 13.6125 + 66.3063
= 109.7375%
Therefore, View Point's standard deviation of returns will be:
= [Total of Probability × (Return-Mean)²/✓Total probability
=10.46%
A brewery produced regular beer and a low carb "light beer". Steady Customers of the brewery buy 10 units of regular beer and 15 units of light beer monthly. While setting up the brewery to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular is $32,000 and the cost per unit if light beer is $50,000. Every unit of regular beer brings in $120,000 in revenue, while every unit of light beer brings in $300,000 in revenue. The brewery wants at least $9,000,000 in revenue. At least 20 additional units of beer can be sold (a) How much of each type of beer should be made so as ti minimize total production cost (b) Suppose the minimum revenue is increased to $9,500,000.Calcualte the total production cost
Answer:
Regular Low Carb Total
a) Units to be produced 20 22 42
(to minimize total production cost)
b) Total production costs $704,000 $1,150,000 $1,854,000
Explanation:
a) Data and Calculations:
Regular Low Carb
Monthly customers demand 10 15
Ratio of customers demand 40% 60%
Cost per unit $32,000 $50,000
Revenue per unit 120,000 300,000
Contribution per unit $88,000 $250,000
Total required revenue = $9,000,000
With 20 additional units of beer, total units produced = 45 (25 + 20)
To minimize production costs and generate a total revenue of $9,000,000, more of the units that cost less should be produced. Units should be produced according to the following ratio:
Regular Low Carb Total
New Production and Sales units 20 22 42
Total production cost = $640,000 $1,100,000 $1,740,000
($32,000 * 20) ($50,000 * 22)
Total revenue = $2,400,000 $6,600,000 $9,000,000
($120,000 * 20) ($300,000 * 22)
To achieve a minimum revenue of $9,500,000,
New production units 22 23 45
Total production cost = $704,000 $1,150,000 $1,854,000
Total revenue = 2,640,000 6,900,000 9,540,000
Assuming that the term structure of interest rates is determined as posited by the pure expectations theory, which of the following statements is CORRECT? a. Inflation is expected to be zero. b. Consumer prices as measured by an index of inflation are expected to rise at a constant rate. c. The maturity risk premium is assumed to be zero. d. In equilibrium, long-term rates must be equal to short-term rates. e. An upward-sloping yield curve implies that future short-term rates are expected to decline.
Answer:
c. The maturity risk premium is assumed to be zero.
Explanation:
In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero
Therefore the option c is correct
And, the rest of the options seems wrong
Terp Corp.'s transactions for the year ended December 31, 2021 included the following: Purchased real estate for $1,250,000 cash which was borrowed from a bank. Sold investment securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. The net cash used in financing activities for 2021 was
Answer:
$1,600,000
Explanation:
Cashflow from financing activities
Dividends ($1,200,000)
Issue of Stocks $500,000
Bank Loan Repayment ($900,000)
Net Cash flow ($1,600,000)
thus
The net cash used in financing activities for 2021 was $1,600,000
approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?
The question is incomplete. The complete question is :
A manufacturer believes that the cost function : [tex]$C(x) =\frac{5}{2}x^2+120 x+560$[/tex] approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?
Solution :
Given the cost function is :
[tex]$C(x) =\frac{5}{2}x^2+120 x+560$[/tex]
Now, Marginal cost = [tex]$\frac{d}{dx}C(x)$[/tex]
So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.
Therefore, we have to equate : [tex]$\frac{d}{dx}C(x)= \$ 210$[/tex]
[tex]$\frac{d}{dx}C(x)= \frac{5}{2}(2x)+120 = 210$[/tex]
[tex]$5x + 120 = 210$[/tex]
[tex]$5x=210-120$[/tex]
[tex]$5x=90$[/tex]
[tex]$x=45$[/tex]
So when x = 45, then C(x) = $ 8042.5
Therefore, the manufacturer [tex]$\text{can make up}$[/tex] to 45 units and [tex]$\text{still makes a profit.}$[/tex] This leads to a total cost of $ 8042.5
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. Assume that Sam has an upward-sloping labor supply curve. If the opportunity cost of Sam's leisure time increases, he will respond by working:__________
Answer:
more hours
Explanation:
Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives
time is a limited resource that has to be shared between work and leisure. If the opportunity cost of leisure increases, it means he is giving up more work to rest. As a result, he would increase his work hours
what are the role played by a manager? Explain. Briefly explain the various environmental factors that a manager should consider in an organization.
Explanation:
A manager has to perform functions like planning, organizing, staffing, directing and controlling. All these functions are essential for running an organization smoothly and achieving enterprise objectives. Planning is required for setting goals and establishing strategies for coordinating activities.
The external environment
Customers, competition, economy, technology, political and social conditions, and resources are common external factors that influence the organization. ... As such, it is necessary that managers continue to monitor and adapt to the external environment.
Explanation:
A manager has to perform functions like planning, organizing, staffing, directing and controlling. All these functions are essential for running an organization smoothly and achieving enterprise objectives. Planning is required for setting goals and establishing strategies for coordinating activities.
The external environment
Customers, competition, economy, technology, political and social conditions, and resources are common external factors that influence the organization. ... As such, it is necessary that managers continue to monitor and adapt to the external environment.
Payton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be:
THe answer is scjkgnsgjnDVDJ
Slinky established a petty cash fund for $400. Slinky purchased 50 units of inventory from a supplier on credit. The goods cost $40 each and the credit terms were 5/10, n/30. The shipping costs, paid in cash by Slinky, were $100 under the terms FOB Shipping. Slinky received the inventory on July 3rd. Slinky returned 5 units of inventory from the July 3rd transaction to the supplier. Slinky sold 15 of the units purchased on July 3rd for $55 each to customers for cash. Slinky accepted a return of one unit of inventory from a July 6th customer for a cash refund. Slinky paid the supplier for one-half of the inventory purchased on July 3rd. Be sure to account for any returns and/or purchase discounts. Slinky used $40 out of petty cash to pay for coffee meeting (coffee expense). Slinky purchased 10 units of inventory from a supplier on credit. The goods cost $25 each and no credit terms were granted. The shipping costs were $50 under the terms FOB destination and Slinky received the inventory on November 2nd Slinky paid the remaining balance owed to the supplier from the July 3rd transaction. Slinky replenished petty cash.
Required:
Prepare Journal Entries for July
Answer:the answer is
Explanation:
i have 400 and the 50 units
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with use. Consumers are risk-neutral and value nondefective cars at $10,000 each. New cars sell for $8,000 and used ones for $2,000. (Note that since buyers are risk-neutral, the price of a new car reflects the expected value of purchasing a car that may or may not be defective.)What is the fraction x?Instructions: Enter x as a number rounded to two decimal places. For example, if x = 1/3 enter 0.33.
Answer:
0.25
Explanation:
Given :
The [tex]$\text{consumers value}$[/tex] the non defective cars = [tex]$\$ 10,000$[/tex]
We will consider all the defective [tex]$\text{ cars are used cars}$[/tex] only. This is only because the value of the used car is $ 2000 and it is lower than the price of a good car that is $10,000. Thus only defective cars are being sold as the old cars.
For a risk neutral customer, the price that he is ready to give for the new car is the reservation price of a non defective car. It means that (the amount of $ 8000 is the value of the good car x chances of getting a good car) +( the value of the bad car x chances of getting a bad car).
Since we know that x is the fraction of all the cars sold in the market are defective, it means that the fraction of the good cars is 1 - x. Thus putting the values,
[tex]$x\times 2000+(1-x)\times 10000=8000$[/tex]
[tex]$10000-8000x=80000$[/tex]
[tex]$8000x=2000$[/tex]
[tex]$x=\frac{2}{8}$[/tex]
= 0.25
Thus the value of :
[tex]$x=\frac{2}{8} = 0.25$[/tex]
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $179,850. The equipment will have an initial cost of $545,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $34,000, what is the accounting rate of return
Answer:
So, accounting rate of return = 33 %
Explanation:
given data
net income after tax = $179,850
initial cost = $545,000
time = 7 year
salvage value = $34,000
we will get here the accounting rate of return
solution
as we know that accounting rate of return is express as
accounting rate of return = Net income ÷ initial investment .................1
put here value and we get
accounting rate of return = [tex]\frac{179850}{545000}[/tex]
So, accounting rate of return = 33 %
65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $900, what is the required journal entry to accrue compensated absences
Answer: Debit Salaries and Wages Expense $117000
Credit Salaries and Wages Payable $117000
Explanation:
Based on the information given in the question, the required journal entry to accrue compensated absences will be as follows:
First, we need to know the amount of the compensated absence which will be:
= 65 employees × $900 × 2 Weeks vacation
= $117000
Therefore, the journal entry is:
Debit Salaries and Wages Expense $117000
Credit Salaries and Wages Payable $117000
Assume that interest rate parity (IRP) exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $0.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract
Answer:
US $5,784,000
Explanation:
As per interest rate parity, forward rate = Spot rate*(1+Interest rate U.S.)/(1+interest rate Australia)
= 0.60*(1.07)/(1.11)
= 0.5784 /A$
Australian Dollars required in one year = 10,000,000
U.S. Dollars required = 10,000,000 * 0.5784 /A$
U.S. Dollars required = $5,784,000
So, the number of U.S. dollars you will need in one year to fulfill the forward contract is 5,784,000.
A city government adds streetlights within its boundaries at a total cost of $300,000. These lights should burn for at least 10 years but can last significantly longer if maintained properly. The city develops a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. The city also spends another $78,000 to construct lights for several new streets. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements.
Answer: See explanation
Explanation:
a. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements.
1. Debit: Infrastructure assets—street lights $300,000
Credit: Cash $300,000
(To record cash purchase of street light
2. Debit: Depreciation expense $300,000/10 = $30,000
Credit: Accumulated depreciation—infrastructure assets $30,000
(To record depreciation expense)
3. Debit: Maintenance expense—infrastructure assets $48000
Credit: Cash $48000
(To record maintenance expense)
4. Debit: Infrastructure assets—street lights $78000
Credit: Cash $78000
(To record cash expense for new light)
b. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements.
1. Debit: Infrastructure assets—street lights $300,000
Credit: Cash $300,000
(To record purchase of street light)
2. Debit: Maintenance expense—infrastructure assets $48000
Credit: Cash $48000
(To record maintenance expense)
3. Debit: Infrastructure assets—street lights $78000
Credit: Cash $78000
(To record cash expense for new light)
Stock Issuance (Par, No-Par, and Stated Value) The following independent stock transactions occurred during January 20-- for Various Corporations: (a) Issued 5,800 shares of $10 par common stock for $58,000 cash. (b) Issued 3,800 shares of $10 par common stock for $49,000 cash. (c) Issued 4,900 shares of no-par common stock for $54,100 cash. (d) Issued 3,900 shares of no-par common stock for $41,500 cash. (e) Issued 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash. (f) Issued 2,700 shares of no-par common stock with a stated value of $8 per share for $22,800 cash. Prepare general journal entries for these stock transactions, identifying each transaction by letter. If an amount box does not require an entry, leave it blank.
Answer:
Various Corporations
Journal Entries:
(a) Debit Cash $58,000
Credit Common stock $58,000
To record the issuance of 5,800 shares of $10 par common stock for $58,000 cash.
(b) Debit Cash $49,000
Credit Common stock $38,000
Credit Additional Paid-in Capital $11,000
To record the issuance of 3,800 shares of $10 par common stock for $49,000 cash.
(c) Debit Cash $54,100
credit Common stock $54,100
To record the issuance of 4,900 shares of no-par common stock for $54,100 cash.
(d) Debit Cash $41,500
Credit Common stock $41,500
To record the issuance of 3,900 shares of no-par common stock for $41,500 cash.
(e) Debit Cash $50,400
Credit Common stock $50,400
To record the issuance of 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash.
(f) Debit Cash $22,800
Credit Common stock $21,600
Credit Additional Paid-in Capital $1,200
To record the issuance of 2,700 shares of no-par common stock with a stated value of $8.
Explanation:
a) Data and Analysis:
(a) Cash $58,000 Common stock $58,000
Issued 5,800 shares of $10 par common stock for $58,000 cash.
(b) Cash $49,000 Common stock $38,000 Additional Paid-in Capital $11,000
Issued 3,800 shares of $10 par common stock for $49,000 cash.
(c) Cash $54,100 Common stock $54,100
Issued 4,900 shares of no-par common stock for $54,100 cash.
(d) Cash $41,500 Common stock $41,500
Issued 3,900 shares of no-par common stock for $41,500 cash.
(e) Cash $50,400 Common stock $50,400
Issued 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash.
(f) Cash $22,800 Common stock $21,600 Additional Paid-in Capital $1,200
Issued 2,700 shares of no-par common stock with a stated value of $8 per share for $22,800 cash.
Bethany’s regular hourly wage rate is $12, and she receives an hourly rate of $18 for work in excess of 40 hours. During a January pay period, Bethany works 50 hours. Bethany’s federal income tax withholding is $99, and she has no voluntary deductions. Compute Bethany’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%.
Answer and Explanation:
The computation of the gross earnings and the net pay is shown below;
Gross pay = Regular pay + Overtime pay
= (40 × $12) + (50 - 40) × $18
= $480 + $180
= $660
Net pay = Gross pay - FICA taxes - Federal income taxes withholding
= $660 - ($660 × 7.65%) - $99
= $510.51
Hence, the same is to be considered and relevant
Dean Company has sales of $163,000, and the break-even point in sales dollars is $102,690. Determine the company's margin of safety percentage. Round answer to the nearest whole number. fill in the blank 1 %
Answer:
37%
Explanation:
The Dean company has sales of $163,000
The break even point in sales dollars is $102,690
Therefore, the company's margin of safety can be calculated as follow;
Margin of safety = (Sales - Break even sales ) / Sales
Margin of safety = ($163,000 - $102,690) / $163,000
Margin of safety = $60,310 / $163,000
Margin of safety = 0.37 × 100
Margin of safety = 37%
he party that has the right to exercise a call option on callable bonds is: Multiple Choice The bond trustee. The bondholder. The bond issuer. The bond underwriter. The bond indenture.
Answer: Bond issuer
Explanation:
A callable bond is the type of bond which gives privilege to the issuer of the bond to redeem the bond before the bond will reach its date of maturity.
Therefore, the party that has the right to exercise a call option on callable bonds is the bond issuer.
Central Park Inc. is a company that sells women's clothing. It recently shut down its physical store and is operating as an app-based store now. The app allows users to access the store's products anytime and anywhere using their cell phones, and it also has features that allow users to compare the prices of similar products across different online stores. This scenario exemplifies _______.
Answer:
M-commerce
Explanation:
Since in the given situation it is mentioned that Central Park Inc sells the women clothing and currently they shut down the physical store and they are operated now through app based. With this feature, anyone could access anywhere via using the mobile phones also at the same time the customer compared the prices
So this situation represent the mobile commerce or M -commerce as the people can access this from anywhere at any time, it is easy to use also it save the cost and time
Mentionlytics provides listening tools to help clients discover and react to different sentiments about anything connected to their business. Mentionlytics uses powerful social analytics and mention analytics insights to gather information about what customers are saying about the companies that they use for goods and services. This is an example of _______. a. social media monitoring b. advertising campaign c. crowdsourcing d. sales promotion
Answer:
a. social media monitoring
Explanation:
Social media monitoring is the way in which information can be obtained about the response of the general public to a product by using social media measurement and analytics to extract insights from online media such as blogs, news sites, and so on.
In the given scenario Mentionlytics are using social media monitoring when they use powerful social analytics and mention analytics insights to gather information about what customers are saying about the companies that they use for goods and services.
Four thousand bonds with a face value of $1,000 each, are sold at 104. The entry to record the issuance is:____.
A. Cash 4,080,000
Bonds Payable 4,080,000
B. Cash 4,080,000
Premium on Bonds Payable 80,000
C. Bonds Payable 4,000,000
Cash 4,080,000
D. Discount on Bonds Payable 80,000
Bonds Payable 4,000,000
E. Cash 4,000,000
Premium on Bonds Payable 80,000
Bonds Payable 4,080,000
Answer and Explanation:
The journal entry to record the issuance is given below:
Cash (4000 × 1000 × 104%) Dr. $4,160,000
To Premium on Bonds Payable $160,000
To Bonds Payable (4000 × 1000) $4,000,000
(being the issuance of the bond is recorded)
Here the cash is debited as it increased the assets, and the rest of the two accounts are credited as it increased the liabilities
The country of Farland has a real GDP of $100,000 and a population of 1,000. The country of Nearville has a real GDP of $10,000 and a population of 100. Which country has the higher real GDP per capita
Answer:
Neither countries have a higher GDP per capita. It is 100 for both countries
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
GDP per capita is used to measure the standard of living. The higher the GDP per capita, the higher the standard of living
GDP per capita = Real GDP / population
Farland = $100,000 / 1000 = $100
Nearville = $10,000 / 100 = $100
Both countries have the same GDP per capita
Answer:
Flowerton has a higher GDP per capita than Treeton.
Explanation:
mixed economy is characterized by a co existence of?
Answer:
See explanation below
Explanation:
A mixed economy is a mixture of capitalism (private enterprise) and socialism (public enterprise).
If real GDP in a year was $3,900 billion and the price index was 130, then nominal GDP in that year was approximately
Answer:
$5,070 billion
Explanation:
Given the following:
The real GDP in a year => $3,900 billion
The price index => 130,
The nominal GDP is measured as
=> 100 -130 = 30%
=> 30% × 3,900 = 1,170
=> 1,179 + 3,900 = 5,070
Therefore, in this case, the correct answer is $5,070 billion as the nominal GDP for the year.
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $14.5 million, and the company paid $775,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.5 percent of the amount raised, whereas the debt issued had a flotation cost of 3.5 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Answer: 1.54
Explanation:
Based on the information given in the question, the company’s target debt-equity ratio will be:
The total costs will be:
= $14.5 million + $775000
= $15.275 million
Since amount needed = amount raised × (1-fT)
Therefore, 15.275 × (1-f) = 14.5
15.275 - 15.275f = 14.5
f = floatation costs = 5.074%
Therefore, 5.074% × (1 + D/E) = 7.5% + (D/E) × 3.5%
Solving for debt-equity ratio, the value will be = 1.54
In the initial introduction of the Prius, Toyota put much effort into building awareness of the emerging need for hybrid cars and also educating potential customers about what a hybrid car actually is. This is an example of the ________ stage in the AIDA model.
Answer:
Attention stage in the AIDA model
Explanation:
Have your eyes peeled. Having the buyer knowledgeable of the commodity is the first step in the purchasing process. The role of a sales representative is to get the prospect's curiosity and hold it long enough to pique their curiosity. One can state it as the stage to build the customer base for future.
Thus, from the above we can conclude that the correct answer is attention stage.
g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)
Answer:
$10
Explanation:
As the bond is priced at $1035, the par value is $1000.
Calculation of the amount of the next interest payment
= Par value * Coupon rate/12
= $1000 * 12%/12
= $1000 * 1%
= $10
So, the amount of the next interest payment is $10.
GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equity is 22 percent, the cost of preferred stock is 8.5 percent, and the pre-tax cost of debt is 8 percent. What is the firm's WACC given a tax rate of 35 percent
Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
Reineke Company's chart of accounts includes the following selected accounts.
101 Cash 201 Account payable
120 Inventory 306 Owner's drawings
130 Prepaid insurance 505 Cost of Goods sold
157 Equipment
On October 1, the accounts payable ledger of Sheridan Company showed the following balances: Uggla Company $2,500, Orr Co. $2,510, Rosenthal Co. $1,770, and Clevenger Company $3,750. The October transactions involving the payment of cash were as follows.
Oct. 1 Purchased merchandise, check no. 63, $310.
3 Purchased equipment, check no. 64, $840.
5 Paid Uggla Company balance due of $2,500, less 2% discount, check no. 65, $2,450.00.
10 Purchased merchandise, check no. 66, $2,270.
15 Paid Rosenthal Co. balance due of $1,770, check no. 67.
16 C. Sheridan, the owner, pays his personal insurance premium of $450, check no. 68.
19 Paid Orr Co. in full for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.
29 Paid Clevenger Company in full for invoice no. 264, $2,580, check no. 70.
Required:
Journalize the transactions above.
Answer:
Reineke Company
Journal Entries:
Oct. 1 Debit 120 Inventory $310
Credit 101 Cash $310
To record the purchase of merchandise via check no. 63
Oct. 3 Debit 157 Equipment, $840
Credit 101 Cash $840
To record the purchase of equipment via check no. 64
Oct. 5 Debit 201 Accounts payable (Uggla Company) $2,500
Credit Cash $2,450
Credit Cash Discounts $50
To record payment on account, less 2% discount, check no. 65
Oct. 10 Debit 120 Inventory $2,270
Credit 101 Cash $2,270
To record the purchase of inventory via check no. 66.
Oct. 15 Debit 201 Accounts payable (Rosenthal Co.) $1,770
Credit 101 Cash $1,770
To record the payment on account by check no. 67.
Oct. 16 Debit 306 Owner's Drawings $450
Credit 101 Cash $450
To record C. Sheridan's payment for his personal insurance premium of $450, check no. 68.
Oct. 19 Debit 201 Accounts payable (Orr Co.) $2,200
Credit 101 Cash $2,156
Credit Cash Discounts $44
To record full payment for invoice no. 610, less 2% cash discount, using check no. 69.
Oct. 29 Debit 201 Accounts payable (Clevenger Company) $2,580
Credit 101 Cash $2,580
To record full payment for invoice no. 264, by check no. 70.
Explanation:
a) Data and Calculations:
Chart of Accounts:
101 Cash
120 Inventory
130 Prepaid insurance
157 Equipment
201 Account payable
306 Owner's drawings
505 Cost of Goods sold
Accounts Payable balances:
Uggla Company $2,500
Orr Co. $2,510
Rosenthal Co. $1,770
Clevenger Company $3,750
Transactions Analysis:
Oct. 1 120 Inventory $310 101 Cash $310 check no. 63
Oct. 3 157 Equipment, $840 101 Cash $840 check no. 64
Oct. 5 201 Accounts payable (Uggla Company) $2,500 101 Cash $2,450 Cash Discounts $50, less 2% discount, check no. 65
Oct. 10 120 Inventory $2,270 101 Cash $2,270 check no. 66, $2,270.
Oct. 15 201 Accounts payable (Rosenthal Co.) $1,770 101 Cash $1,770, check no. 67.
Oct. 16 306 Owner's Drawings $450 101 Cash $450 for his personal insurance premium of $450, check no. 68.
Oct. 19 201 Accounts payable (Orr Co.) $2,200 101 Cash $2,156 Cash Discounts $44 for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.
Oct. 29 201 Accounts payable (Clevenger Company) $2,580 101 Cash $2,580 for invoice no. 264, $2,580, check no. 70.
. It is good field practice to double-check and possibly triple-check the ____ decision, since the cost of repairing an improperly cut roof can be very high
Answer:
It is good field practice to double-check and possibly triple-check the location decision, since the cost of repairing an improperly cut roof can be very high
Explanation:
Location decision can be described as the process of selecting a business location. Its major goal is to select the best options from a variety of options.
How easy or difficult it is for customers to reach a business is the most crucial factor that influences the success of a business. Customers frequently abandon businesses that are difficult to reach. Again, it is important to think about the target clients of the business and choose a location that will make it easier for them to locate the business.
Therefore, it is good field practice to double-check and possibly triple-check the location decision, since the cost of repairing an improperly cut roof can be very high. This implies the negative effect of a bad location decision may be too high for the business to bear.