Answer:
Entries during the first month would include the following:
Account Title Debit Credit
Interest Expenses $40,260
(1342000*3%)
Kwik $40,260
Cash $459,000
Discount $1,550
Account Receivable $460,550
Sales Return $5,300
Account Receivable $5,300
Allowances for Doubtful Debt $$11,880
Account Receivable $$11,880
How is the economy measured using the circular flow model in the resource market?
A. National Income Accounting
B. Consumer Price Index
C. Gross Domestic Product
D. Revenue and Taxes
tumutukoy sa tuwirang pagsupil sa diwang makabayan sat pagkat aaklas ng mga pilipinas laban sa mga amerikano
Answer:
Pilipinasyonhopefully help:)
Explanation:
#CarryOnLearningMayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:
Costs:
Wages and salaries $320,000
Depreciation 160,000
Utilities 240,000
Total $720,000
Distribution of resource consumption:
Activity Cost Pools
Assembly Setting Up Other Total
Wages and salaries 50% 40% 10% 100%
Depreciation 10% 55% 35% 100%
Utilities 15% 50% 35% 100%
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
A) $360,000.
B) $336,000.
C) $288,000.
D) $348,000.
Answer:
B) $336,000
Explanation:
Calculating cost to be allocated in the first-stage allocation to the Setting Up activity cost pool
Setting up Amount
Wages and salaries $128,000 [$320,000*40%]
Depreciation $88,000 [$160,000*55%]
Utilities $120,000 [$240,000*50%}
Total $336,000
Which of the following is not true about emergency funds?
O They help remove the worry about expenses not listed in the budget.
O They help you prepare for unexpected expenses.
O They are used for anything listed in the budget.
O They can keep you from borrowing money from friends and family members.
Emergency funds are typically set aside to cover unexpected expenses that are not included in the regular budget. The statement "They are used for anything listed in the budget" is not true about emergency funds. Hence, option C is the correct answer.
These expenses may include medical emergencies, car repairs, home repairs, job loss, or any unforeseen financial hardships. The purpose of an emergency fund is to provide a financial safety net for unexpected situations that can disrupt one's financial stability.
On the other hand, expenses listed in the budget are part of the regular planned expenses, such as rent or mortgage payments, groceries, utilities, transportation, and other recurring costs.
Hence, option C is the correct answer.
Learn more about emergency funds here:
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There are currently 499 students enrolled in Webster Elementary School, and the number of students is increasing at the rate of 15 students per year. Currently the annual expense to educate one student is $1,252, and the expense to educate one student is decreasing at the rate of $43 per year. Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Answer: Cost is decreasing at $2,677 per year.
Explanation:
The number of students in the school is increasing by 15 students a year.
The cost of that is:
= 15 * 1,252
= $18,780
The cost is also decreasing at a rate of $43 per student per year. There are currently 499 students. The total decrease is therefore:
= 43 * 499
= $21,457
The change is:
= Increase in cost - Decrease in cost
= 18,780 - 21,457
= - $2,677
Cost is decreasing at $2,677 per year.
A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands) Products F G H Total Sales (total) $ 285 $ 188.5 $ 405 $ 878.5 Total Unit-level Costs (154 ) (161.7 ) (217 ) (532.7 ) Contribution Margin 131 26.8 188 345.8 Company-wide Facility-Level Costs (26.7 ) (31.7 ) (57 ) (115.4 ) Income (Loss) $ 104.3 $ (4.9 ) $ 131 $ 230.4 Gilbert's management is considering whether to eliminate manufacturing product G at the beginning of the next year. The elimination will have no effect on the sales or unit-level costs of products F and H. The change in income that would result from eliminating product G is
Answer:
Gilbert, Inc.
The change in income that would result from eliminating product G is:
= $26,800.
Explanation:
a) Data and Calculations:
Products F G H Total
Total Sales (total) $ 285 $ 188.5 $ 405 $ 878.5
Total Unit-level Costs (154 ) (161.7 ) (217 ) (532.7 )
Contribution Margin 131 26.8 188 345.8
Company-wide Facility-Level Costs (26.7 ) (31.7 ) (57 ) (115.4 )
Income (Loss) $ 104.3 $ (4.9 ) $ 131 $ 230.4
b) The company-wide income will reduce from $230.4 to $203.6 (a difference of $26.8) as a result of the Contribution Margin of product G that will also be eliminated. Note that product G's facility-level cost of $31.7 cannot be eliminated.
In other words, the company-wide total income will be $203.6 ($319 - $115.4). This proves that product G should not be eliminated. It was actually contributing to the fixed expenses. However, the company-wide facility costs should be analyzed further to determine how much can be attributed to product G before a final decision is reached.
_________ is the systematic study of a job’s tasks, duties, and responsibilities and the knowledge, skills, and abilities needed to perform the job. It is the important starting point for many personnel functions and yields several products (which are described in the question that follows this question). in g
Answer:
Job analysis
Explanation:
Many organizations carry out what is called job analysis. It entails spelling out the job functions, skills, experience and knowledge required to perform the job. It is important to analyze the skills required to perform a job because such would afford an organization to have directions in terms of matching skills with work.
Also, organizations analyze jobs to confirm that it is line with the company's current goals and objectives instead of a job that does not go in line with a company's current structure.
Please classify each of the statements about inflation targeting as true or false. Inflation targeting usually requires that central banks do not prioritize concerns about unemployment. The use of strict inflation targets generally give central banks greater autonomy regarding what decisions to make. Most inflation targets are ranges rather than an exact level that central banks must meet. Advocates of inflation targeting argue that it will increase the need for an active monetary policy. Answer Bank
Answer:
Inflation targeting usually requires that central banks do not prioritize concerns about unemployment. - True
There is a trade-off, in the short-term, between inflation and unemployment. If a central bank prioritizes keeping inflation low, that is to say, inflation targeting, then, it cannot prioritize keeping unemployment as low as possible at the same time.
The use of strict inflation targets generally give central banks greater autonomy regarding what decisions to make. - False
Very strict inflation targets actually reduce the amount of options that a central bank can take, and the amount of decisions it can make, because all the actions of the central bank must be channeled towards a very specific objective which is keeping inflation under a strict target.
Most inflation targets are ranges rather than an exact level that central banks must meet. - True
Central banks do not control inflation directly, they do so through indirect tools like open market operations, discount window rates, and other interbank rates. This results in inflation targets that are ranges rather than exact numbers.
Advocates of inflation targeting argue that it will increase the need for an active monetary policy. - False
Inflation targeting is a policy that promotes passive action from central banks. Central banks are kept to a more or less secondary role under normal economic conditions.
On January 1, X9, Gerald received his 50 percent profits and capital interest in High Air, LLC, in exchange for $3,800 in cash and real property with a $4,800 tax basis secured by a $3,800 nonrecourse mortgage. High Air reported a $16,800 loss for its X9 calendar year. How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation
Answer:
Loss deducted : $6,700Loss suspended: $1,700Explanation:
First find his initial basis:
= Cash + Real property - Nonrecourse mortgage + (Nonrecourse mortgage * 50%)
= 3,800 + 4,800 - 3,800 + (3,800 * 50%)
= $6,700
Loss attributable to Gerald:
= 16,800 * 50%
= $8,400
Loss deductible is the initial basis if the loss is more than the basis.
Loss suspended = Loss attributable to Gerald - Initial basis
= 8,400 - 6,700
= $1,700
Susan Barnes is a self-employed consultant. She travels to Chicago on June 30th for business purposes. She attends business meeting on July 1st and 2nd. She takes personal time on the 3rd and 4th of July. On the 5th of July, she returns home. She incurs the following expenses: Flight charge: $480 Lodging: $200 per day for June 30th, July 1st, July 2nd, July 3rd, and July 4th. Meals: 6/30: $40; 7/1: $70; 7/2: $70; 7/3: $70; 7/4: $70; 7/5: $40 What is Susan total deductible business expense for travel
Answer:
Susan Barnes
Total deductible business expenses:
= $1,300.
Explanation:
a) Data and Calculations:
Dates for business meetings = July 1st and 2nd
Flight charge = $480
Lodging for 3 days = $600 ($200 *3)
Meals for 3 days:
6/30: $40;
7/1: $70;
7/2: $70
7/5: $40
Total for meals = $220
Total business expense = $1,300 ($480 + $600 + $220)
b) According to the IRS (Internal Revenue Service), business expenses have been defined as any expenses that are "helpful and appropriate" for a business. This definition excludes lodging and meal expenses incurred by Susan on July 3rd and July 4th, when she takes personal time.
Statz Company had sales of $1,800,000 and related cost of goods sold of $1,050,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.8% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $4,800 for a cash refund. The returned merchandise originally cost Statz Company $3,200.
Required:
a. Journalize the adjusting entries on December 31, 20Y1, to record the expected customer returns.
b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3, 20Y2.
Answer:
A. Dec 31
Dr Sales $32400
Cr Customer refunds payable $32400
Dr Estimated returns inventory $12,000
Cr Cost of goods sold $12,000
B. Feb 3
Dr Customer refunds payable $4,800
Cr Cash $4,800
Dr Merchandise Inventory $3,200
Cr Estimated returns inventory $3,200
Explanation:
a. Preparation of the the adjusting entries on December 31, 20Y1, to record the expected customer returns.
Dec 31
Dr Sales $32400
Cr Customer refunds payable $32400
($1,800,000*1.8%)
Dr Estimated returns inventory $12,000
Cr Cost of goods sold $12,000
(Being to record the expected customer returns)
b. Preparation of the entries to record the returned merchandise and cash refund to Buck Co. on February 3, 20Y2.
Feb 3
Dr Customer refunds payable $4,800
Cr Cash $4,800
Dr Merchandise Inventory $3,200
Cr Estimated returns inventory $3,200
(Being to record the returned merchandise and cash refund to Buck Co)
Question 10 of 10
Which of the following is a true statement based upon the principle of the
time value of money?
A. The value of money does not increase or decrease as time
passes.
B. Money loses value over time if not used.
C. It is always best to receive money at a later point in time rather
than an earlier point in time.
O D. Money increases in value as time passes so long as it is not
invested.
Answer:
B. Money loses value over time if not used.
Explanation:
Money loses value over time and the reason why is inflation.
Inflation is the general increase in the price of the goods and services within an economy. Inflation causes money to lose value over time if not used because it reduces the purchasing power of money. This is why money should be used if it is not to be spent, mainly as a form of investment with the goal of earning an interest rate that is higher than inflation, or at least, equal to inflation.
Answer:
B. Money loses value over time if not used.
Explanation:
Money loses value over time and the reason why is inflation. Inflation is the general increase in the price of the goods and services within an economy. Inflation causes money to lose value over time if not used because it reduces the purchasing power of money. This is why money should be used if it is not to be spent, mainly as a form of investment with the goal of earning an interest rate that is higher than inflation, or at least, equal to inflation.
one reason some manufacturing companies have moved production from overseas locations back to the united states is an increasing preference by U.S. consumers for products made in the united states. Assuming that managers at these companies used all available information, including the increased preference by U.S. consumers for domestically produced, when making the decision to move production back to the United States exemplifies which key economic idea
Answer: C. People are rational.
Explanation:
Economic theory assumes that people are rational when making economic decisions. This means that they will seek to make a decision that can satisfy them the most or give them the highest benefit.
This benefit does not always have to be monetary, it can also be emotional. The U.S. customers who prefer made in America products would therefore be emotionally satisfied by the decision of these manufacturing companies to move back to the U.S. and will patronize them more.
This decision to move back was therefore based on people being rational.
Crane uses the periodic inventory system. For the current month, the beginning inventory consisted of 7100 units that cost $12.00 each. During the month, the company made two purchases: 2800 units at $13.00 each and 12000 units at $13.50 each. Crane also sold 12700 units during the month. Using the LIFO method, what is the ending inventory? $119140. $112500. $124200. $110400.
Answer:
Ending inventor cost= $124,200
Explanation:
Giving the following information:
Beginning inventory= 7,100 units that cost $12.00 each.
Purchases:
2,800 units at $13.00 each
12,000 units at $13.50 each
Units sold= 12,700
To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:
Ending inventory in units= 9,200
Ending inventor cost= 9,200*13.5
Ending inventor cost= $124,200
Sunland Enterprises reported cost of goods sold for 2020 of $1,397,500 and retained earnings of $5,157,300 at December 31, 2020. Sunland later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $105,370 and $31,500, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings. Corrected cost of goods sold $enter a dollar amount Corrected 12/31/20 retained earnings $enter a dollar amount
Answer:
See below
Explanation:
Corrected amount for 2020 cost of goods sold
= 2020 Cost of goods sold - 2019 Ending inventory + 2020 Ending inventory
= $1,397,500 - $105,370 + $31,500
= $1,323,630
Corrected December 31, 2020, amount for retained earnings
= 2020 Retained earnings - 2020 Ending inventory
= $5,157,300 - $31,500
= $5,125,800
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $60,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $5,500 using the gang punch, but annual raw material costs would decrease $10,000. MARR is 5.25 %/year.
Required:
What is the IRR of this investment?
Answer:
1.51%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-60,000
Cash flow each year from year 1 to 15 = $10,000 - $5500 = $4,500
IRR = 1.51%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
An aircraft company is considering using a new lightweight fastener, called the Superlight, to rivet certain sheet metal parts together. These particular items are not safety-of-flight critical, and so the decision of whether to use them is a financial one. The weight savings realized by using Superlights instead of the asic fastener has a net present value of $10 million (M) to the aircraft manufacturer. In this dollar range, assume that the company is a risk-neutral decision maker.
The Superlight fastener has never been used before on a production aircraft, and engineers are wary of its durability. From what little they know of the design and initial lab tests, they have high uncertainty about the number of Superlight fasteners that would need replacement during routine maintenance. They translate this to costs of S300 K with probability of 0.3, $120 K with probability 0.5, and $75 K with probability 0.2. (Label these possible cases High, Moderate, and Low repair cost, for future reference.) These costs include both parts and labor.
The alternative to the Superlight is the Basic fastener, which, although heavier than the Superlight, has been used extensively on past aircraft. Stress engineers feel that the Basic has a "tried and true" performance record: They conclude from past statistics that the repair cost associated with Basic fastener failure is $125 K. In these dollar ranges, assume that the aircraft company is a risk-neutral decision maker.
Required:
What is the certain equivalent for the best alternative?
Answer:
The best alternative is to use Basic Fastener.
Explanation:
The aircraft company has 2 alternatives. The first alternative is super light which has repair cost of $165k when the probability is considered. There are three possible situations where repair cost can be high, moderate or low. The repair cost calculation with probability is as follows:
300,000 * 0.3 + 120,000 * 0.5 + 75,000 * 0.2 = $165,000
The repair cost for Basic faster is $125,000.
It is suitable for the company to use basic fastener as it has proven records of performance and also its repair cost is lower than Super fastener.
Assume the following information for a company that produced and sold 10,000 units during Year 1. It also produced 15,000 units and sold 12,000 units during Year 2, while producing 12,000 units and selling 15,000 units in year 3. Per Unit Per Year Selling price $ 240 Direct materials $ 85 Direct labor $ 60 Variable manufacturing overhead $ 10 Sales commission $ 11 Fixed manufacturing overhead $ 450,000 Fixed selling and administrative expense $ 150,000 Using absorption costing, what is the unit product cost for the units produced in Year 3
Answer:
$185
Explanation:
Unit Cost - Absorption Costing
Hint : Consider all manufacturing costs
Total unit Cost = $ 85 + $ 60 + $ 10 + $ 450,000/ 15,000 units
= $185
Using absorption costing, the unit product cost for the units produced in Year 3 is $185
Explain which of the 5 Management Functions is your strength and weakness? Planning, Organizing, Staffing, Implementing, and Organizing
Suppose there is one firm in a market with linear demand function. The firm has a constant marginal cost of $9. The firm is currently charging $15 per unit, where the elasticity of demand is 3. The new CEO of this firm suspects that the current pricing strategy of this firm might not be profit maximizing. He hires you as an economic consultant to offer advice to this firm. Base on the information given, is the firm currently maximizing profits (choosing a monopoly price and quantity)? If not, should the firm raise its price or lower its price? Explain.
Answer:
We employ the fact that Pprofit Maximizing Price = Marginal cost * (ed/ed + 1)
Price = $9 * (-3 / (-3 + 1))
Price = $9 * (-3/-2)
Price = $9 * 1.5
Price = $13.5
As we can see that the profit maximizing price is 13.5. Whereas, the current price of $15 which is not profit maximizing. So the firm should reduce the price to 13.5 per unit so as to be maximizing profit.
During 2020 the Pharoah Company had a net income of $85100. In addition, selected accounts showed the following changes: Accounts Receivable $2700 increase Accounts Payable 900 increase Buildings 3900 decrease Depreciation Expense 1400 increase Bonds Payable 7900 increase What was the amount of cash provided by operating activities
Answer:
Cash provided by operating activities $84,700
Explanation:
The computation of the amount of cash provided by operating activities is shown below:
Net income $85,100
Add: depreciation expense $1,400
Less: increase in account receivable -$2,700
Add: Increase in account payable $900
Cash provided by operating activities $84,700
A large brewing company has its public relations staff create an interactive website aimed at men and women in their 20s and early 30s. It offers interesting facts about the history of beer, the making of beer, the definition of various brewing terms, the difference between hops and malt, etc. It also includes games like crossword puzzles, word jumbles, and trivia contests related to beer. The objective of such PR initiatives is to:
Answer: c. promote goodwill toward beer drinkers.
Explanation:
The purpose of this campaign is to increase the the appreciation of beer and its industry in the minds of people.
This will therefore promote goodwill towards beer drinkers as they will be less ostracised if people appreciate beer more.
This is good for the beer industry because it would increase sales when people who were worried about their pubic image become less worried and drink more.
The Widget Co. purchased new machinery three years ago for $4 million. The machinerycan be sold to the Roman Co. today for $2 million. The Widget Co.'s current balance sheetshows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capitalof $725,000. If all the current assets were liquidated today, the company would receive $1.9million in cash. The book value of the Widget Co.'s assets today is _____ and the marketvalue of those assets is _____.
A. $4,600,000; $3,900,000
B. $4,600,000; $3,125,000
C. $5,000,000; $3,125,000
D. $5,000,000; $3,900,000
E. $6,500,000; $3,900,000
Answer: A. $4,600,000; $3,900,000
Explanation:
Based on the information that have been provided in the question, the book value will be calculated as:
= Net working capital + Current liabilities + Net fixed assets
= $725,000 + $1,375,000 + $2,500,000
= $4,600,000
Market value will be:
= $1,900,000 + $2,000,000
= $3,900,000
Therefore, the answer is option A.
These are selected account balances on December 31, 2017.
Land $150,000
Land (held for future use) 225,000
Buildings 1,200,000
Inventory 300,000
Equipment 675,000
Furniture 150,000
Accumulated Depreciation 450,000
What is the total amount of property, plant, and equipment that will appear on the balance sheet?
a. $2,250,000
b. $1,950,000
c. $2,700,000
d. $1,725,000
Answer:
D. $1,725,000
Explanation:
Given the above information,
Total amount of property, plant and equipment = land (location of the office building) + office building + equipment + office furniture - Accumulated depreciation
= $150,000 + $1,200,000 + $675,000 + $150,000 - $450,000
= $1,725,000
Bryant leased equipment that had a retail cash selling price of $750,000 and a useful life of six years with no residual value. The lessor spent $605,000 to manufacture the equipment and used an implicit rate of 8% when calculating annual lease payments of $150,219 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $22,500. What is the effect of the lease on the lessor’s earnings during the first year, not including any effect of depreciation no longer required on the asset under lease (ignore taxes)? (Input decreases to income as negative amounts. Round Interest revenue to the nearest whole dollar.)
Answer: $170,482.48
Explanation:
Effect of lease:
= Sales - Cost of goods sold (cost to manufacture) + Interest revenue - Selling expense
Interest revenue = (Selling price - Interest paid) * Interest rate
= (750,000 - 150,219) * 8%
= $47,982.48
Effect of lease = 750,000 - 605,000 + 47,982.48 - 22,500
= $170,482.48
In the trading of a security, the dealer's spread refers to _____. a. the sum of the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction b. the difference between the bid and asked prices of a security, which represents the dealer's expenses from a security transaction c. the sum of the bid and asked prices of a security, which represents the dealer's revenue from a security transaction d. the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction e. the ratio of the bid price of a security to its asked price, which represents the dealer's markup, or profit from a security transaction
Answer:
d. the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.
Explanation:
CAPM is an acronym for capital asset pricing model. The capital asset pricing model (CAPM) can be defined as a model or formula that can be used to calculate an investment risk and the expected return on an investment (assets).
Simply stated, the capital asset pricing model gives an investor the relationship between the risk of investing in securities and its expected returns. Thus, it assists investors in making well-informed decisions about whether or not to add to a portfolio.
Additionally, the expected return could be either a profit or loss depending on the risks associated with the securities.
Mathematically, the CAPM is given by this formula;
R_{a} = R_{rf} + \beta_{a} * (R_{m} - R_{rf})
Where;
R_{a} = Expected return on a security
R_{rf} = Risk-free rate
\beta_{a} = beta of the security
R_{m} = Expected return of the market
(R_{m} - R_{rf}) = Equity market premium
In the trading of a security, the dealer's spread refers to the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.
Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.
The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.
Generally, a dealer who is willing to sell an asset or securities would receive a bid price while the price at which the dealer is willing to sell his asset to another dealer (buyer) is the ask price.
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $6 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at year-end. a. What is the net asset value at the start and end of the year
Answer:
Missing word "What is the Rate of return"
a. Asset at the end of the year = (Asset at the start of the year + Increase in value) * 12b-1 charges
Asset at the end of the year = ($219 million+ ($219 million * 7%)) * (1-0.50%)
Asset at the end of the year = ($219 million + $15.33 million) * 0.9950
Asset at the end of the year = $234.33 million * 0.9950
Asset at the end of the year = $233.16 million
Net asset value at the end of the year = Asset at the end of the year / Number of shares
Net asset value at the end of the year = $233.15835 million / 12 million
Net asset value at the end of the year = $19.430
b. Rate of return = (Net asset value at the end of the year + dividend per share - Net asset value at the start of the year) / Net asset value at the start of the year
Rate of return = ($19.430 + ($6 / 12) - $18.250) / $18.250
Rate of return = ($19.430 + $0.50 - $18.250) / $18.250
Rate of return = $1.68 / $18.250
Rate of return = 9.20%
A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 160 units $ 350 June 10 220 units 580 June 15 220 units 700 June 28 130 units 560 $2190 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
Answer:
cap
Explanation:
On June 10, Wildhorse Company purchased $7,000 of merchandise from Sandhill Company, terms 3/10, n/30. Wildhorse Company pays the freight costs of $430 on June 11. Goods totaling $300 are returned to Sandhill Company for credit on June 12. On June 19, Wildhorse Company pays Sandhill Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Required:
a. Prepare separate entries for each transaction on the books of Wildhorse Company.
b. Prepare separate entries for each transaction for Sandhill Company. The merchandise purchased by Wildhorse Company on June 10 cost Sandhill Company $2,180, and the goods returned cost Sandhill Company $200.
Answer:
In the books of Wildhorse Company
a. Journal Entries:
June 10:
Debit Inventory $7,000
Credit Accounts Payable (Sandhill Company) $7,000
To record the purchase of merchandise, terms 3/10, n/30.
June 11:
Debit Freight-in $430
Credit Cash $430
To record the payment of freight costs.
June 12:
Debit Accounts payable (Sandhill Company) $300
Credit Inventory $300
To record the return of goods for credit.
June 19:
Debit Accounts payable (Sandhill Company) $6,300
Credit Cash $6,099
Credit Cash Discount $201
To record the payment on account.
b. In the books of Sandhill Company
June 10:
Debit Accounts Receivable (Sandhill Company) $7,000
Credit Sales Revenue $7,000
To record the sale of merchandise, terms 3/10, n/30.
Debit Cost of Goods Sold $2,180
Credit Inventory $2,180
To record the cost of goods sold.
June 12:
Debit Sales Returns $300
Credit Accounts receivable (Sandhill Company) $300
To record the return of goods for credit.
Debit Inventory $200
Credit Cost of goods sold $200
To record the cost of goods returned.
June 19:
Debit Cash $6,099
Debit Cash Discount $201
Credit Accounts receivable (Sandhill Company) $6,300
To record the receipt of cash on account.
Explanation:
The entries in the books of Sandhill Company and Wildhorse Company are opposite in some respects. However, not every transaction affects the two companies equally.
ire Corporation distributes property (basis of $225,000, fair market value of $300,000) to a shareholder in a distribution that is a qualifying stock redemption. The property is subject to a liability of $160,000 that the shareholder assumes. Determine the basis of the property to the shareholder.
Answer:
$300,000
Explanation:
The fair market value of the property is the basis in property received in a qualifying stock redemption to shareholder which is $300,000.
So, $300,000 is the amount that will serve as the basis of the property to the shareholder.