At year-end, the following additional information is available: a. The balance of Prepaid Rent, $4,920, represents payment on October 31, 2018, for rent from November 1, 2018, to April 30, 2019. b. The balance of Deferred Revenue, $1,100, represents payment in advance from a customer. By the end of the year, $275 of the services have been provided. c. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2019. d. The balance of Supplies, $2,100, represents the amount of office supplies on hand at the beginning of the year of $750 plus an additional $1,350 purchased throughout 2018. By the end of 2018, only $610 of supplies remains.
Question Completion:
The December 31, 2018, unadjusted trial balance for Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 4,920
Supplies 2,100
Deferred Revenue $ 1,100
Common Stock 11,000
Retained Earnings 4,100
Service Revenue 37,520
Salaries Expense 25,500
Total $ 53,720 $ 53,720
Use the following additional information to prepare the adjusted Trial Balance.
Answer:
Demon Deacons Corporation
Adjusted Trial Balance
As of December 31, 2018
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 3,280
Supplies 610
Deferred Revenue $ 825
Common Stock 11,000
Retained Earnings 4,100
Salaries Payable 700
Service Revenue 37,795
Rent Expense 1,640
Salaries Expense 26,200
Supplies Expense 1,490
Total $ 54,420 $ 54,420
Explanation:
a) Data and Analysis:
a. Rent Expense $1,640 Prepaid Rent, $1,640 ($4,920 * 2/6) rent from November 1, 2018, to April 30, 2019.
b. Deferred Revenue, $275 Service Revenue $275
c. Salaries Expense $700 Salaries Payable $700
d. Supplies Expense $1,490 Supplies $1,490
Accounts Debit Credit
Cash $ 8,100
Accounts Receivable 13,100
Prepaid Rent 4,920 - 1,640 = 3,280
Supplies 2,100 - 1,490 = 610
Deferred Revenue $ 1,100 -275 = 825
Common Stock 11,000
Retained Earnings 4,100
Salaries Payable 700
Service Revenue 37,520 + 275 = 37,795
Rent Expense 1,640
Salaries Expense 25,500 + 700 = 26,200
Supplies Expense 1,490
Total $ 53,720 $ 53,720
Which firm is the oligopolist? Choose one: Firm A is in retail. It is one of the largest and most popular clothing stores in the country. It also competes with many rivals and faces intense price competition. Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals. Firm C is a restaurant in a small, isolated community. It is the only local eatery. People drive from miles away to eat there.
Answer:
Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals.
Explanation:
For the given options we considered Firm B to be treated as the oligopolist as the firm nor its competitors would have the major impact over the market also there are entry & exit barriers from the market
So the firm B should be chosen as the oligopolist
Therefore the same should be considered and relevant
g A company shows a balance in Salaries and Wages Payable of $50,000 at the end of the month. The next payroll amounting to $75,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries
Answer and Explanation:
The journal entry is
Salaries and Wages Payable $50,000
Salaries and Wages Expense $25,000
To Cash $75,000
(Being cash paid is recorded)
Here salaries & wages payable and salaries & wages expense is debited as it decreased the liabilities & increased the expense while the cash is credited as it decreased the assets
Why are multinational corporations (MNCs) getting involved in corporate social responsibility and sustainable business practice
Answer:
Some are genuinely giving back to the community:
Some MNCs are engaged in Corporate Social Responsibility (CSR) and Sustainable business practices because they genuinely care about the communities they have a presence in and the earth as well. With this is mind, they find out ways to give back to the community to ensure that people's lives are touched and improved so that the wider community benefits from the success of the MNC.
Brand Strengthening and Recognition.
Sometimes MNCs get involved in CSR to build their brand because people would associate their brand with the good works they do. This would go a long way in improving their sales figures as well because people want to support a company that supports its communities.
Tax Considerations.
Various tax credits exist for MNCs across many countries and tax regimes to reward them for their CSR activities. MNCs therefore see this as a chance to kill two birds with one stone as they get to use money that would have gone to taxes to improve their PR standing.
Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his tasks on time. He learns that some of his team members are also facing the same issue. Even though there is clarity of the target among the team members, the team struggles to efficiently carry out its task. Which of the following should the team do in order to ensure the completion of the tasks?
A. It should change the output and retain the workforce.
B. It should use informal communication to carry out its tasks.
C. It should standardize the work activities through flowcharts.
D. It should conduct an in-house training program to bring employees up to speed.
Answer: D. It should conduct an in-house training program to bring employees up to speed.
Explanation:
Since team struggles to efficiently carry out its task, in order to ensure the completion of the tasks, the team should conduct an in-house training program to bring employees up to speed.
With an in house training done, the employees will gain the necessary skills and experience which will be needed to carry out their jobs effectively and efficiently. Therefore, the correct option is D.
Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.
Total assets on the balance sheet are: _________
Answer:
$405,000
Explanation:
Computation of total assets on balance sheet.
Fixed assets:
Building and equipment
$420,000
Less:
Accumulated depreciation
($110,000)
Net book value
$310,000
Total fixed assets $310,000
Current assets:
Cash
$13,000
Inventory
$44,000
Accounts receivable
$38,000
Total current assets $95,000
Therefore,
Total assets
= Total fixed assets + Total current assets
= $310,000 + $95,000
= $405,000
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,423 cash. 20 The company received $2,050 cash in photography fees earned. 31 The company paid $868 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Explanation:
Preparation of general journal entries for the above transactions
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
($12,750+$54,825)
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
The initial value of your 401k savings plan is $35,000. The value your 401k savings plan at a later point in time is $44,500. The percent change in the value of your 401k plan over the period is
Answer: 27.14%
Explanation:
Percent change in value of 401k = (Ending value - Initial value) / Initial value * 100%
= (44,500 - 35,000) / 35,000 * 100%
= 9,500 / 35,000 * 100%
= 27.14%
Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2.
Year 2 Year 1
Cash $37,500 36,850
Short-term investments 90,000 90,000
Accounts receivable, net 85,500 86,250
Merchandise inventory 121,000 117,000
Prepaid expenses 12,100 13,500
Plant assets 388,000 392,000
Accounts payable 113,400 111,750
Net sales 711,000 706,000
Cost of goods sold 390,000 385,500
a) 4.72.
b) 4.33.
c) 3.28.
d) 5.78.
e) 3.86.
Answer:
c) 3.28.
Explanation:
Computation for the company's inventory turnover for Year 2.
Using this formula
Inventory Turnover = Cost of Goods Sold / Average Inventory
Let plug in the formula
Inventory Turnover=$390,000/[($121,000+ $117,000)/2]
Inventory Turnover=$390,000/$238,000/2
Inventory Turnover=$390,000/119,000
Inventory Turnover=3.277
Inventory Turnover= 3.28 (Appropriately)
Therefore the company's inventory turnover for Year 2 is 3.28
In a market economy, individuals' economic lives are said to be interrelated with many other individuals and firms. almost completely controlled by government regulation. illegal and in violation of government rules on prices and sales. based more on production than on consumption.
Answer:
Interrelated with many other individuals and firms
Explanation:
market economy can be regarded as an economic system whereby decisions as regards to investment, production asvwell as distribution are been guided by the price signals which is been at up by forces of supply and demand. Inthe activities are iunplanned. It should be noted that, In a market economy, individuals' economic lives are said to be interrelated with many other individuals and firms.
Describe a master budget and the sequence in which the individual budgets within the master budget are prepared.
Answer:
The production budget is needed to figure out direct materials, direct labor and manufacturing overhead budgets. Once these are all done, then comes the finished goods inventory budget. Once all of these budgets are done, we can do a cash budget, income statement and balance sheet to finish off the process.
Explanation:
thank me later
Concentration ratios measure the Group of answer choices geographic location of the largest corporations in each industry. degree to which product price exceeds marginal cost in various industries. percentage of total industry sales accounted for by the largest firms in the industry. number of firms in an industry.
Answer:
percentage of total industry sales accounted for by the largest firms in the industry.
Explanation:
The concentration ratio calculated the market share percentage for an industry and the same is held by the larger firms inside the industry. Also it determined the total output that could be generated from the number of firms in the industry
Therefore as per the given options, the above options should be considered correct
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320
Based on your analysis, you prepared a report with several inferences. While proofreading, you come across the following inference. Consider this case: Recapitalization might increase the EPS, but the price per share remains the same. Is the statement true or false
Answer: True
Explanation:
Recapitalization refers to a process where a company alters its capital composition. For instance, it can acquire more debt whilst reducing its equity holdings.
Recapitalization can affect the number of shares that a company has and the weight of those shares in relation to debt but it does not change the price of the stock so this statement is true.
_____ is a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.
Answer:
Direct marketing
Explanation:
In direct marketing system, companies communicate directly to customers via email, social media, phones and sms. Here, the aim of the company is to generate direct response on a particular transaction from targeted customers.
Direct marketing has been around for a while and has been used to create or know the areas requiring improvement by companies. Hence if a company or an organization aims at getting direct response on a product from targeted customer, direct marketing is often used.
The impact of taxes on different groups in society varies. Some taxes create a larger burden for poorer people while others create a larger burden for wealthier people. Arrange the tax classifications according to the level of burden placed on poorer people.
Answer:
Progressive places the least burden on poor people
Proportional places the second highest burden
regressive places the most burden
Explanation:
Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
A proportionate tax taxes everyone the same regardless of the amount earned.
A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax. A progressive tax ensures vertical equity.
A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is a normal good and good Y is an inferior good.
a. Income doubles.
b. Income quadruples and all prices double.
c. Income and all prices quadruple.
d. Income is halved and all prices double.
Answer:
a. Income doubles
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)b. Income quadruples and all prices double.
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)c. Income and all prices quadruple.
consumption of both goods will remain at the same leveld. Income is halved and all prices double.
consumption of good X will decrease (normal good) will consumption of good Y will increase (inferior good)
You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift toward much freer trade. What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
4. Which of the following situations typically would result from an appreciating U.S. dollar relative to the
Canadian dollar?
A. More Canadian tourists visit the U.S.
B. Canadians purchase more U.S. goods
C. Fewer American tourists visit Canada
D. Americans purchase more Canadian made products.
Answer:
D. Americans purchase more Canadian made products.
Explanation:
The situation that would typically result from an appreciating U.S. dollar relative to the Canadian dollar is "Americans purchase more Canadian made products."
When Americans purchase more Canadian-made products, the Canadian dollar will rise or appreciate against the U.S. dollar. This is based on the principle of trade balance, whereby the monetary value of a country's imports and exports are evaluated over a given period.
In this case, the monetary value of Canadian exports against the U.S. dollar will indicate a positive trade surplus, hence, the Canadian dollar or currency will appreciate against the U.S. dollar.
Vista Company is consideringt two new projects, each requiring an equipment investment of $97,000. Each project will last for three years and produce the following cash inflows:
Year Cool Hot
1 $38,000 $42,000
2 43,000 42,000
3 48,000 42,000
129,000 $126,000
The equipment will have no salvage value at the end of its three-year life. Vista Company uses straight-line depreciation and requires a minimum rate of return of 12%.
Present Value of 1 Present Value of an Annuity of 1
Period 12% Period 12%
1 0.893 1 0.893
2 0.797 2 1.690
3 0.712 3 2.402
Required:
a. Compute the net present value of each project.
b. Compute the profitability index of each project.
c. Which project should be selected? Why?
Answer:
a. Net Present Value of Cool:
= Present value of cash inflows - Initial investment
= ∑(Cash flows * Present value factor) - Initial investment
= (38,000 * 0.893) + (43,000 * 0.797) + (48,000 * 0.712) - 97,000
= 102,381 - 97,000
= $5,381
Net Present value of Hot.
Cashflows are constant so this is an annuity:
= Cashflow * Present value interest factor of annuity - Initial investment
= 42,000 * 2.402 - 97,000
= 100,884 - 97,000
= $3,884
b. Profitability index for Cool:
= Present value of inflows / Initial investment
= 102,381 / 97,000
= 1.06
Profitability index for Hot:
= 100,884 / 97,000
= 1.04
c. Project Cool should be selected because it has a higher Net Present Value.
A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard, and employee turnover rate is high with individuals often leaving without notice. Throughout the work week employees record their attendance on separate time cards, which the foreman approves and submits to the payroll department at the end of week. Based on the time cards, the payroll department prepares the paychecks, sends them to the foreman who then distributes the checks to his work crew. Required Identify the segregation of duties problems in the system. What sorts of fraud may result from the above control problem(s)
Solution :
In the context, it is given that foreman in a construction company is responsible for the workers who are unskilled labors.
1. The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. But here in this case, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.
2. This may result into frauds to the company. If the segregation of the duties is not implemented, then the company is at risk. This is because a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. So this can result in a fraud if the foreman wants to do fraud. But distributing the work among two employee will reduce the risk of fraud as one employee many not be willing to do fraud.
Segregation of duties is an internal control designed to prevent error and fraud by ensuring that at least two individuals are responsible for checking and authorizing transactions.
The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. In the above scenario, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.
What sorts of fraud may result from the above control problem?The above may bring about fraud in the company where segregation of the duties is not in place. This means that the company is at risk.
Reason is that a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. Hence, can result in a fraud if the foreman wants to engage in fraud.
Learn more about segregation of duty here : https://brainly.com/question/26589679
The Peach Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on January 1, 2013, which vest in four years. The fair value of the shares is $14. No forfeitures are anticipated. Ignore taxes. You must show your work for credit.
1. Determine the total compensation cost pertaining to the restricted stock
2. Prepare the appropriate journal entry (if any) to record the award of restricted stock on January 1, 20133.
3. Prepare the appropriate journal entry (if any) to record compensation expense on December 31, 2013.
Answer and Explanation:
1. The computation of the total compensation cost is
= 30 million shares × $14
= $420 million
2. No journal entry is required
3, The journal entry is
Compensation Expense ($420 ÷ 4) $105
To Paid in capital-Restricted Stock $105
(Being the compensation expense is recorded)
In this way it should be done and the same is relevant
Henry had to change the grades of four different students. He did so using his query that was calculating his grades. When he went back to the table, he should expect that
A. the new data was missing.
B. the table was also changed.
C. the new data was added to the table along with the old data.
D. the table required a new query to continue calculations.
Answer:
B. the table was also changed.
Explanation:
Took the test
Your company just sold a product with the following payment plan: $40,000 today, $35,000 next year, and $30,000 the following year. If your firm places the payments into an account earning 6% per year, how much money will be in the account after collecting the last payment?
Answer:
the money that will be in the account after collecting the last payment is $112,044
Explanation:
The computation of the money that will be in the account after collecting the last payment is shown below:
Amount is
= $40,000 × (1.06)^2 + $35,000 × (1.06) + $30,000
= $112,044
Hence, the money that will be in the account after collecting the last payment is $112,044
An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,900
Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
The payback period is the time required to cover the initial investment. We need to discount each cash flow.
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
To be more accurate:
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
On February 3, Smart Company sold merchandise in the amount of $2,700 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,865. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
Answer:
Journal entry on February 8 :
Debit : Cash $2,673
Debit : Discount received $27
Credit : Account Receivable $2,700
Explanation:
The journal entry that Smart makes on February should show the Cash payment net of cash discount, a decrease in Total Account Receivable balance and recognition of an expense discount allowed up to 1 %.
The Sit-Ins were accompanied by boycotts of businesses that insisted on segregation. This often meant that protesters would not shop at popular stores, eat at popular restaurants, or go to movies at the local theater. How did boycotting affect these businesses
Answer:
I. Disruption of business activities
II. Severe losses
III. Reduced customer patronage
IV. Reduced revenue
V. Loss of customer loyalty
Explanation:
I. Disruption of business activities: The Sit-ins affected business activities in the businesses as the protesters have to take up spaces for other paying customers preventing effective service delivery to the other customers.
II. Severe losses: The businesses involved incurred high levels of losses as they lost slot of revenue from unused or unsold foods are
III. Reduced customer patronage: Customer patronage dropped as other paying customers have to boycott the businesses affected.
IV. Reduced revenue: Reduced revenue as a result of reduced patronage from the customers.
V. Loss of customer loyalty: When a business does not offer the desired services to its customers caused either through service disruption, other other factors it will most likely lead to reduced number of loyal customers.
Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $7.50 per share, forever. If the expected rate of return is 12%, what is the stock price of LIRE
Answer: $62.50
Explanation:
The stock price of Locked-In Real Estate (LIRE) will be calculated thus:
Stock price = D /ke - g
where,
D = Dividend paid per share = $7.50
Ke = expected rate of return on equity = 12% = 0.12
g is growth rate of dividend = 0
Stock price = $7.50/0.12
Stock price = $62.5
Therefore, the stock price is $62.50
Gains from trade are the: Multiple Choice increase in welfare in both countries that results from specialization and trade. transfer of surplus by the receiving country that results from trade. deadweight loss by the losing country that results from trade. increased skills and human capital that results from specialization and trade.
Answer:
The answer is "the increase in welfare in both countries that result from specialization and trade".
Explanation:
Commercial gains imply benefits that are benefitted by specialization and division of work from various countries participating in international trade.
Its profits of trade are the positive benefits of trade instead of creating, meaning as advantage benefits via trade rather than producing advantage oneself.
The whole form of profit is usually called gain. Those gains are indeed the advantages of shifting production factors.
Static trade gains:
Production maximisationNational income increaseIncreased social securityReduced cost of scale savingsEnhanced variety of productsExcess sheddingYou are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 5 years?
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60