Answer:
Explanation:
The main argument in favor regarding increasing minimum wage is that a higher wage will result into an increase in the standard of living of the people. Furthermore, a rise in the minimum wage can help in lifting people out I poverty. Due to higher wages and salaries, workers will have more money to cater for their families and meet their needs. Lastly, an increase in the minimum wage means that the government can reduce its expenditures on helping the low income earners and can therefore invest the money in other critical sectors of the economy.
The arguments against raising the minimum wage is that it can lead to inflation. Inflation in the rise in the price for goods and services. When there's an increase in minimum wage, sellers may increase the price of goods as there'll be more money to spend by households. Also, it can lead to losses of jobs as employersay have to cut down cost on order to be able to increase the wages of some workers and thereby may result in some workers being laid off.
Minimum wages lead to the reduction in the entry-level jobs that are available, and reduces the change of entry level graduates to get training, and lifetime income. According to Economists, minimum wages will result into decrease in the employment opportunities that are available for the youths and thereby create unemployment. Potential employees will miss out on the training that should have been done at the initial stage one is entering an organization.
[The following information applies to the questions displayed below.]
Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.
a. Purchased raw materials on credit, $200,000.
b. Materials requisitions record use of the following materials for the month.
Job 136 $48,000
Job 137 32,000
Job 138 19,200
Job 139 22,400
Job 140 6,400
Total direct materials 128,000
Indirect materials 19,500
Total materials used $147,500
c. Paid $15,000 cash to a computer consultant to reprogram factory equipment.
d. Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136 $12,000
Job 137 10,500
Job 138 37,500
Job 139 39,000
Job 140 3,000
Total direct labor 102,000
Indirect labor 24,000
Total $126,000
e. Applied overhead to Jobs 136, 138, and 139.
f. Transferred Jobs 136, 138, and 139 to Finished Goods.
g. Sold Jobs 136 and 138 on credit at a total price of $525,000.
h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).
Depreciation of factory building $68,000
Depreciation of factory equipment 36,500
Expired factory insurance 10,000
Accrued property taxes payable 35,000
i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.
REQUIRED.
Prepare journal entries to record the events and transactions a through i. REQUIRED
Answer:
Widmer Watercraft
Journal Entries
Sr No Particulars Debit Credit
a. Materials $200,000
Accounts Payable $ 200,000
Purchased raw materials on credit, $200,000.
b. Work in Process Job 136 $ 48,000
Work in Process Job 137 32,000
Work in Process Job 138 19,200
Work in Process Job 139 22,400
Work in Process Job 140 6,400
Materials $ 128,000
Total direct materials 128,000 issued.
Factory Overhead Control Account 19,500
Materials $ 19,500
Indirect materials 19,500 issued.
c. Factory Overhead- Equip 15,000
Cash 15000
Paid $15,000 cash to a computer consultant to reprogram factory equipment.
d. Work in Process Job 136 $12,000
Work in Process Job 137 10,500
Work in Process Job 138 37,500
Work in Process Job 139 39,000
Work in Process Job 140 3,000
Factory Overhead Control Account 24,000
Wages Control Account $ 126,000
Total direct labor 102,000 charged to production, Indirect labor 24,000 Charged to Factory Overhead.
e. Work In Process Job 136 $24,000
Work in Process Job 138 75,000
Work in Process Job 139 78,000
Applied Overhead 255,000
Applied overhead to Jobs 136, 138, and 139 at 200% of Direct Labor Cost.
Applied Overhead Control Account $ 255,000
Factory Overhead Control Account $ 255,000
Applied Overhead Closed To Actual Overhead Account.
f. Finished Goods Control Account $ 355,100
Work in Process Job 136 84000
Work in Process Job 138 131,700
Work in Process Job 139 139,400
Transferred Jobs 136, 138, and 139 to Finished Goods.
g. Cost of Goods Sold 215,700
Finished Goods 215,700
Sold Jobs 136 and 138 on credit at a total price of $525,000.
Accounts Receivable $525,000
Sales $525,000
h. Factory Overhead Control Account $ 149,500
Provision For Depreciation Account $68,000
Prepaid Insurance Expense $ 10,000
Accumulated Depreciation Factory Equip. 36,500
Property Taxes Payable Account 35,000
The company incurred the above overhead costs during the month.
i. Work in Process Job 136 21,000
Work in Process Job 140 6,000
Factory Overhead Control Account 27,000
Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% .
Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $93 per share. What is the bank's cost of preferred stock
Answer:
6.45%
Explanation:
Calculation for bank's cost of preferred stock
Using this formula
Cost of preferred stock = Dividend / Price of Stock * 100
Where,
Dividend $6
Price of Stock 93 per share
Let plug in the formula
Cost of preferred stock =6/93*100
Cost of preferred stock= 0.0645*100
Cost of preferred stock=6.45 %
Therefore the bank's cost of preferred stock will be 6.45%
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016: Cost Retail Beginning inventory $ 460,000 $ 590,000 Net purchases 940,000 1,370,000 Freight-in 52,700 Net markups 64,000 Net markdowns 34,000 Net sales 1,280,000 Estimate ending inventory and cost of goods sold (LIFO)
2.
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016:
Cost Retail
Beginning inventory $ 310,000 $ 455,000
Net purchases 858,000 1,220,000
Freight-in 25,500
Net markups 49,000
Net markdowns 19,000
Net sales 1,205,000
Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))
3.
On January 1, 2016, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
Cost Retail
Beginning inventory $ 56,000 $ 80,000
Net purchases 223,040 330,000
Net markups 6,000
Net markdowns 8,000
Net sales 307,000
Retail price index, end of year 1.02
Calculate the inventory value at the end of the year using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.)
Answer:
The ending inventory value using LIFO retail method is $710,000
Explanation:
Beginning inventory $590,000
Purchases $1,370,000
Net Markups ($64,000)
Net Markdowns ($34,000)
Goods Available For Sale $1,990,000
Cost to retail percentage = 70.91%
Net sales $1,280,000
Ending Inventory = $710,000
Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Complete a fish-bone chart detailing reasons why you might arrive late in the morning. Identify each possible source of error.Material ________▼
Methods _______ ▼
Machinery ______▼
Complete the fish-bone chart by matching each number in the chart with the corresponding reason.
Answer:
Part 1.
Material - The road
Reason: due to the road is a part of the material or resource that is used in the driving process)
Method - Driving
Reason: driving itself is the method)
Machinery - The car
Reason: the car is the primary equipment for the driving process)
Manpower - Family or me
reason: the family or the owner is the manpower involved in the driving process)
Part 2. the correct chart is with reason and the possible source is attached.
Part 1. Reason: thanks to the road could be a part of the fabric or resource that's utilized in the driving process)
Fish-bone chartMaterial - The road
Method - Driving
Part-2 -Reason: driving itself is that the method)
Machinery - The car
Part-3 Reason: the car is that the primary equipment for the driving process)
Manpower - Family or me
Part-4 Reason: the family or the owner is that the manpower involved within the driving process)
Find out more information about Fish-bone chart here:
https://brainly.com/question/15898050
1. As a Cost and Management Consultant in the banking industry in Ghana, one of your highly
esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to
whether target costing can be applied to the banking industry in Ghana. They further require you
to advise them on what products or services can target costing be applied.
2. 1
What forces have caused cost and management accounting systems designed decades ago to
become less relevant and less valuable for organizational employees in today’s globally
competitive environment?
Answer and Explanation:
The explanation is shown below:-
1. Goal costing is a form of administration with the main emphasis on reducing costs to a set value. Upon targeting the administration front pick the desired value of trading and benefit perimeter, then evaluate the price to achieve this desired cost of trading and benefit perimeter. This then handles all the tasks needed to meet these planned costs. The key aim of goal costing is the company match, the selling price is the consumer price always, and the profit is reduced by the way out.
Target costing for all units can be applied. And to the banking sector in Ghana as a whole, it can be applied. Target costing may be used in the banking division to reduce the expense of service delivery. The full use of bank sources such as deposits, ATMs, money tellers, etc. can be made here.
To most important services such as credit cards, savings, ATM facilities, Internet banking, etc, goal costing can be enforced. The bank must be able to sell the aforementioned services at the same price in the sector and should discover methods to reduce the value to a target price using normal costs. Internet banking gateways, for example, can be outsourced on a central level to minimize costs, ATMs can be further established via ties between previously operated banks.
2. 1 Established decades earlier, the cost and management accounting systems are known as conventional cost control.
Modern cost control has many drawbacks as a result of which companies have to switch to the new cost and accounting control system known as strategic cost management
Some of the factors that make the management of conventional costs less important and less efficient in today's globally competitive environment are as follows:
a. Concentrate on short term targets.
b. Cost management & quality containment is the primary goal.
c. A reactive approach to commodity cost analysis.
d. Although reducing costs, the results could eventually result in fewer goods being delivered.
e. The nature of today's market is too easy to manage.
f. This will not adequately distribute indirect costs which are the main costs in the scene today.
Statement of cash flows
On January 1, 2013, Palmetto, a fast-food company, had a balance in its Cash account of $32,000. During the 2013 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of $4,500.
Required
a. Prepare a statement of cash flows.
b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities.
c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities.
d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.
Answer:
a.
Palmetto Statement of Cashflows
For the Year Ended December 31, 2013
Cashflow from Operating Activities
Net Cashflow from Operaing Activities $15,600
Cashflow from Investing Activities
Net Cashflow from Investing Activities ($23,000)
Cashflow from Financing Activities
Net Cashflow from Financing Activities ($4,500)
Net Increase (Decrease) ($11,900)
Add: Beginning of Period Cash balance $32,000
Ending Cash Balance $20,100
b. Operating Cash flow relates to the normal business operations of the business. A Net Cash Inflow from this therefore means that the business made a profit from its normal operations of selling fast food during 2013.
c. Investing Activities relate to transaction involving Fixed Assets as well as the stocks and bonds of other companies. The Net Cash flow was probably caused by Palmetto buying more Fixed Assets than they disposed of in the year 2013.
d. Financing activities relate to how the business is financed in terms of Equity and debt. The payments of Dividends therefore fall under here as they relate to Equity. A net cash outflow here therefore probably means that Palmetto paid out dividends to shareholders. They might have also repaid some loans but judging by how small the outflow is, the loans were either small or it was only dividends that were paid out.
g "Barter Corp. sold American telecommunications equipment to a British company for 710,000 pounds. On the sale date, the exchange rate was $1.65 per British pound, but when Barter received payment from its customer, the exchange rate was $1.60 per pound. When the foreign receivable was collected, Barter Enterprises:"
Answer:
Debited Cash of $1,136,000
Debited Loss on Fluctuation of Foreign Currency for $35,500
Explanation:
Calculation for when the foreign receivable was collected, Barter Enterprises
We are going to first calculate for the date when Barter received the payment.
On the date when Barter received payment, they will received :
710,000 *$1.60 = $1,136,000
Therefore On the date when Barter received payment, they had debited Cash of $1,136,000
We are going to calculate for Loss on Fluctuation of Foreign Currency
= (710,000 *$1.60) - (710,000 *$1.65)
=$1,136,000-$1,171,500
= $35,500
Therefore they as well had Debited Loss on Fluctuation of Foreign Currency for $35,500
The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy?
Answer:
The answer is 20
Explanation:
The money multiplier show us how an initial deposit can lead to a higher final increase in the total money supply or it relates to the maximum amount of bank money that can be created, given a certain amount of money from central bank money.
Money multplier = 1 / reserve requirement
Reserve requirement is 5% of the deposits
Therefore, money multiplier is
1 / 0.05
20
Information related to Harwick Co. is presented below.
1. On April 5, purchased merchandise on account from Botham Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Botham.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Botham Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Botham Company in full.
Required:
Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.
No. Date Account Titles and Explanation Debit Credit
1.
2.
3.
4.
5.
Answer:
1.
Apr 5
DR Merchandise inventory $23,000
CR Account payable $23,000
(To record Merchandise Purchased)
2.
Apr 6
DR Merchandise inventory $900
CR Cash $900
(To record payment of Freight Costs for Purchases)
3.
Apr 7
DR Equipment $26,000
CR Account payable $26,000
(To record purchase of Equipment)
4.
Apr 8
DR Account payable $3,000
CR Merchandise inventory $3,000
(To record return of damaged Merchandise)
5.
Apr 15
DR Account payable $20,000
CR Cash $19,600
CR Merchandise inventory $200
(To record payment for Merchandise bought on account)
Working
Terms of purchase 2/10 indicate that discount of 2% is warranted if goods paid for in 10 days which they were;
= 20,000 * ( 1 - 2%)
= $19,600
If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations?
a. Demand deposits and other checking accounts
b. Currency
c. Savings accounts
Answer: Savings account
Explanation:
The money supply is the total amount of money that are available in an economy at a particular point in time.
M2 is a calculation used to know the value of money supply in circulation. M2 includes all elements M1 plus certificate of deposit, savings account and money market account. It should be noted that M1 is made up of currency PL s travellers check and checking accounts.
Therefore, of the options given above, savings account is added when calculating M2 money supply.
An accountant has debited an asset account for $5,000 and credited a revenue account for $10,000. What can be done to complete the recording of the transaction?a) Nothing further can be doneb) Credit a shareholders equity account for $5,000c) Debit another asset account for $5,000d) Credit an asset account for $5,000
c) Debit another asset account for $5,000
The calculation is as follows:Since the asset is debited for $5,000 and the revenue account is credited for $10,000
So we have to equal both the amount
Asset Dr $5,000
Asset Dr $5,000
To Revenue $10,000
Learn more: https://brainly.com/question/994316?referrer=searchResults
South Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be
Answer:
The Break-even point in units= 1,200 units
Explanation:
The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss.
The beak-even point can be determined as follows:
The Break-even point in units = Total general fixed cost / Contribution per unit margin
Contribution per unit = Selling price - variable cost
= 20 - ( 60% × 20)= 8
The Break-even point in units= 9,600/8 =1,200 units
The Break-even point in units= 1,200 units
On January 1, 2018, Sanderson, Inc. acquired a machine for $ 1 comma 010 comma 000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $ 55 comma 000. What is the book value of the machine at the end of 2019 if the company uses the straightminusline method of depreciation?
Answer:
Book value= 764,000
Explanation:
Giving the following information:
Purchase price= $1,010,000
Salvage value= $55,000
Useful life= 5
First, we need to calculate the depreciation expense using the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,010,000 - 55,000)/5= $191,000
Now, the book value:
Book value= 955,000 - 191,000= $764,000
Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.
a) true
b) false
Answer:
b) false
Explanation:
On its website, the SBA states its objective as "We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business."
The SBA does not actually lend to small businesses but connects them with lenders. Apart from this, they offer many other services that an entrepreneur requires to start off his or her business. They offer business planning, coaching, advice, and support at every stage of the business as it continues to grow and guarantee lending to small businesses. The SBA does not turn down any entrepreneur.
A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in a.a separate schedule. b.the cash flows from operating activities section. c.the cash flows from financing activities section. d.the cash flows from investing activities section.
Answer:
A. a separate schedule.
Explanation:
This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.
In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.
Sabv Corporation's break-even-point in sales is $910,000, and its variable expenses are 80% of sales. If the company lost $41,000 last year, sales must have amounted to:
Answer:
Sales= $705,000
Explanation:
Giving the following information:
Break-even-point in sales= $910,000
Variable expenses= 80% of sales.
Loss= $41,000
First, we need to calculate the fixed costs:
Fixed costs= 910,000*0.2= $182,000
Now, we need to determine the contribution margin:
Actual CM= 182,000 - 41,000= $141,000
Finally, the sales revenue:
Sales= 141,000/0.2= $705,000
Scenario: mary ling works for xyz corporation, llc and they have just merged with abc, inc. maryâs job, supervisor, and work location have not changed, but under the merger the companies are now working under the name abcxyz, inc. what does mary need to do to update this information with university of the cumberlands?
Answer:
Updating the new business registry or company name is important to avoid fraud or future legal or legal problems.
Explanation:
There must first be a change in the name of the company because there is an income of a new partner, now the various documents or supports must record the deed, stamp and registration of the new business registration or name so that they can continue to be made new contracts or negotiations under the new legal figure that has been established.
Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after 16 years
Answer:
$1,100
Explanation:
Calculation for what will the investment be worth after 16 years
Rule of 72 is the rule or methods which help in estimating an investment's doubling time.
Therefore According to the rule of 72 what we are going to do is to double the amount of money invested in the Certificate of deposit which was $550
Hence,
Since $550 was invested at an annual interest rate of 4.5%. Thus the rule of 72 tells us that the money will double every 16 years,
Approximately:
Years Balance
Now $550
16 $1,100
( The amount of $550 doubles every 16 years)
Therefore what the investment be worth after 16 years will be $1,100
You are looking to buy a car and you have been offered a loan with an APR of 6.5 %, compounded monthly. a. What is the true monthly rate of interest? b. What is the EAR? g
Answer: The answer is given below
Explanation:
a. What is the true monthly rate of interest?
The monthly rate of interest will be the annual percentage rate of charge given in the question divided by the number of months. This will be:
= APR/12
= 6.5%/12
= 0.065/12
= 0.0054
= 0.54%
b. What is the EAR?
The effective annual rate will be calculated using the formula:
EAR = (1 + (APR / m)^ m) - 1
EAR = (1 + (0.065/ 12)^12) - 1
EAR = [(1 + 0.0054)^12] - 1
EAR = (1.0054)^12 - 1
EAR = 1.06676 - 1
EAR = 0.06676
EAR = 6.68%
The journal entry to record the $500 of work in process ending inventory that consists of $300 of direct materials, $50 of manufacturing overhead, and $150 of direct labor is which of the following?
A. Work in Process Inventory 500
Accounts Payable 500
B. Accounts Payable 500
Work in Process Inventory 500
C. Work in Process Inventory 500
Materials Inventory 300
Wages Payable 150
Manufacturing Overhead 50
D. Cost of Goods Sold 500
Work in Process Inventory 500
Answer:
C. Work in Process Inventory 500; Materials Inventory 300; Wages Payable 150; Manufacturing Overhead 50
Explanation:
The journal entry will definitely be as follows
Account Title Debit Credit
Work in Process Inventory $500
Raw materials inventory $300
Wages payable $150
Manufacturing overhead $50
The Maurer Company has a long-term debt ratio of .50 and a current ratio of 1.40. Current liabilities are $970, sales are $5,190, profit margin is 9.30 percent, and ROE is 16.90 percent. What is the amount of the firm's net fixed assets
Answer:
$7,210.1065
Explanation:
The computation of net fixed assets is shown below:-
But before that we need to do the following calculations
Current Ratio = Current Assets ÷ Current Liabilities
Current Assets = 1.40 × $970
= $1,358
Profit Margin = Net Income ÷ Sales
= 9.30% = Net income ÷ $5,190
Net income = $5,190 × 9.30%
= $482.67
ROE = Net Income ÷ Shareholders Equity
16.90% = $482.67 ÷ Shareholders Equity
Shareholders Equity = $482.67 ÷ 16.90%
= $2,856.0355
Long-term debt ratio = Long term debt ÷ (Long term debt + Equity)
0.50 = Long term debt ÷ (Long term debt + $2,856.0355)
Long term debt = 0.50 × Long term debt + $2,856.0355
0.5 × Long term debt = $2,856.0355
Long term debt = $2,856.0355 ÷ 0.50
= $5,712.071
Total Assets = long term debt + Equity
= $5,712.071 + $2,856.0355
= $8,568.1065
Now
Total Assets = Current Assets + Fixed Assets
$8,568.1065 = $1,358 + fixed assets
So, the fixed asset is
= $8,568.1065 - $1,358
= $7,210.1065
Henry Co. assigned $400,000 of accounts receivable to Easy Finance Co. as security for a loan of $335,000. Easy charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Henry collected $110,000 on assigned accounts after deducting $380 of discounts. Henry accepted returns worth $1,350 and wrote off assigned accounts totaling $2,980. Reference: Ref 7-2 The amount of cash Henry received from Easy at the time of the transfer was
Answer:
$328,300
Explanation:
Amount of cash received by Henry from Easy at the time of the transfer was = Amount of Loan - Commission
= $335,000 - ($335,000*2%)
= $335,000 - $6,700
= $328,300
Thus, the amount of cash received by Henry from Easy at the time of the transfer was $328,300
Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land is appraised at $202,500; land improvements are appraised at $67,500; and a building is appraised at $180,000.Required:1. Allocate the total cost among the three assets.2. Prepare the journal entry to record the purchase.
Answer:
Rodriguez Company
Purchase price = $405,405
Land is appraised at $202,500
Land improvements $67,500
Building appraised at $180,000
Total appraised value $450,000
Land will be apportioned $202,500/$450,000 x $405,405 = $182,432.25
Land improvements will be apportioned $67,500/$450,000 x $405,405 = $60,810.75
Building will be apportioned $180,000/$450,000 x $405,405 = $162,162
Total cost of assets = $405,405.
2. Journal Entries:
Debit Land $182,432.25
Debit Land Improvements $60,810.75
Debit Building $162,162
Credit Cash Account $405,405
To record the purchase of the assets.
Explanation:
The purchase price is proportionately allocated to the items based on their appraisal values.
Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:
Answer:
Debit cash for $312,000
Credit common stock for $26,000
Credit Paid in capital in excess of par value, common stock for $286,000.
Explanation:
Selling the share at $12 per share which is higher than the par value of $1 indicates that the shares are sold at a premium of $11 (i.e. $12 - $1 = $11). Therefore, there is a paid in capital in excess of par value of $11 per share.
Before posting the entries, we do the following calculation first.
Cash received = 26,000 * $12 = $312,000
Common stock = 26,000 * $12 = $26,000
Paid in capital in excess of par value = 26,000 * 11 = $286,000
The entry to record this transaction would therefore appear as follows:
Pariculars Dr ($) Cr ($)
Cash 312,000
Common stock 26,000
Paid in capital in ex. of par v. - Common stock 286,000
To record issue of common stock at a premium.
Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old.a. What is the maximum amount Amber can elect for salary deferral treatment for2019?
Answer:
For 2019, the maximum amount that any individual can elect for salary deferral treatment on a 401k distribution is the lesser between: 100% of their salary or $19,000.
in this case, Amber earns much more than $19,000, so the lesser amount would be $19,000.
If Amber contributes more than $19,000 to her 401k account, then she would have to pay taxes for the extra amount contributed.
[The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) $ 3,862,500 Variable costs (10,300 units at $300 each) 3,090,000 Contribution margin $ 772,500 Fixed costs 600,000 Pretax income $ 172,500 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars.
Answer:
1.
Break even in units = 8000 units
2.
Break even in sales dollar = $3000000
Explanation:
Break even point in units is the number of units that must be sold in order for the total revenue to be equal to the total cost and reach a point where the business is able to cover all its cost and reach a point where no profit or no loss is earned.
The break even in units is calculated as follows,
Break even in units = Fixed Costs / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
1.
Break even in units = 600000 / (375 - 300)
Break even in units = 8000 units
2.
To calculate the break even point in sales dollar, we simply multiply the break even in units by the selling price per unit. This is the amount of total revenue that must be earned in order to break even.
Break even in sales dollar = 8000 * 375 = $3000000
Alpha Company has assets of $610,000, liabilities of $255,000, and equity of $355,000. It buys office equipment on credit for $80,000. What would be the effects of this transaction on the accounting equation
Answer:
Both assets and liabilities increase by $80,000
Explanation:
To start with, it is imperative to show the equation before and after the purchase of equipment on credit
Assets =Equity + liabilities
$610,000 =$255,0000 +$355,000
The equipment's purchase would increase the value of assets and liabilities by $80,000
Assets =Equity + liabilities
$610,000+$80,000=$255,000 +($355,000+$80,000)
$690,000 =$255,000 +$435,000
The comparative balance sheets of Sloan Company reveal that accounts receivable (before deducting allowances) increased by $15,000 in 2016. During the same time period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016 and bad debts expense was 3% of sales, how much cash was collected from customers during the year
Answer:
$103,500
Explanation:
The computation of the cash collected from customers is shown below:
= Sales revenue - Increase in accounts receivable - written off amount
where,
Increase in account receivable = $15,000
Sales revenue = $120,000
Since
Bad debt expense = 3% of sales
So, Bad debt expense
= $120,000 × 3%
= $3,600
Now the written off amount is
= $3,600 - $2,100
= $1,500
So, the cash collection from customers is
= $120,000 - $15,000 - $1,500
= $103,500
"According to the law of demand, with everything else being equal, the quantity demanded for a good or service will _____________ as the price increases."
Answer: Decrease
Explanation:
According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.
That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.
We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream
Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.
In response to the economic crisis in 2008, President Merkel "highlighted in her speech what the German government has already done: a financial sector rescue package worth up to €500 billion, and a proposed stimulus package of tax breaks [on income] and spending measures aimed at triggering investments of up to €50 billion over the next two years." Which parts of the stimulus plan will increase labor supply?
Answer:
Chancellor Merkel's proposed stimulus consisted of two parts:
a financial rescue package worth €500 billion (which I personally believe only helped bankers but didn't increase labor supply)tax breaks and investment measures worth €50 billionThe only part of the stimulus package that would actually help to increase labor supply is the last part, which also is the smallest part, since it should have increased investments. When investment increases, the interest rates decrease and aggregate demand increases. As aggregator demand increases, the demand for labor also increases. An increase in the demand for labor results in higher wages, which in turn increases labor supply until an equilibrium is reached.
Governments generally rescue financial institutions arguing that they are really important to the economy, but what is really amazing and repeats itself all over the world is that the same governments favor free markets. When small businesses fail, governments do not care, and small businesses represent 99% of America's companies. Governments only start caring when rich people lose money, since free market rules only apply to them when they favor them. If free market rules do not favor the rich, they are bad and governments intervene.