Answer:
c. Interest on notes receivable is recognized when it is earned, which is not necessarily when the interest is received in cash.
Explanation:
Accrual principle of accounting is applied when it comes to recording of interest on notes receivable.
Accrual principle states that revenue or expense is recognized when it incurs or occurs not when it is paid or received.
Thus, Interest on notes receivable is recognized when it is earned, which is not necessarily when the interest is received in cash.
Control is the mechanism for making sure the other three managerial functions--planning, organizing, and leadership--are operating smoothly.
A. True
B. False
Answer:
True.
Explanation:
Control is the mechanism for making sure the other three managerial functions such as planning, organizing, and leadership are operating smoothly.
Control is basically one of the key functions of the management in an organization and as such it is an essential goal-oriented function of managers or supervisors or the top executives working in an organization.
Generally, it is a management strategy that is being used to set predetermined standards and checking for compliance or accuracy among employees with these standards and requirements. Also, if the standards aren't followed by the employees, control is used to detect the errors and eventually to take corrective actions so as to achieve organizational goals, objectives, mission and vision.
Hence, the purpose of control by management is to minimize deviation from standards by the employees working in an organization and to ensure that their actions or activities are in tandem with the stated goals of an organization. Also, if an organization wishes to attain greater heights, remain competitive or have a competitive advantage over industry rivals it is very important that it's managers use control effectively.
In a nutshell, control is a strategic function that regulates, guides and protects the activities of an organization.
Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.
It is critical for businesses to understand the responsibilities of each organization as well as the rationale for its creation.
Match the description with the correct organization.
1. UN
2. GTO
3. WTO
4. Bretton Woods Institutions
5. GATT
A. The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
B. As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
C. A series of treaties that reduced barriers to trade.
D. Primarily responsible for policing world trade system.
E. Finance ministers and central bank governors of major economies coordinate policy on global financial crises.
Answer:
1. UN - As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
The United Nations was founded in 1945 as a medium to coordinate human efforts on a global scale. They pursue through their subsidiary organizations, the welfare of humanity amongst other things.
2. GTO - Finance ministers and central bank governors of major economies coordinate policy on global financial crises.
Formed by 20 leading economies, the GTO was formed to combat the effects of the 2008 financial crises.
3. WTO - Primarily responsible for policing world trade system.
WTO regulates trade in the world to make it easier to transact.
4. Bretton Woods Institutions - The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
5. GATT - A series of treaties that reduced barriers to trade.
The General Agreement on Tariff and Trade (GATT) is a treaty between over 140 nations in which they agree to make trade easier by reducing barriers and adhering to Internation best practices.
When the price of butter was "low," consumers spent $5 billion annually on its consumption. When the price doubled, consumer expenditures increased to $7 billion. Recently you read that this means that the demand curve for butter is upward sloping (i.e., price and quantity demanded are directly related, as price increases, quantity demanded also increases). Do you agree? Explain.
Answer:
The correct answer is: No, this situation is impossible.
Explanation:
To begin with, in the reality the situation with the demand curve is all the opposite. The law of demand establishes that there is an indirect relationship between the price of a product and its quantity demanded in the market, therefore that when the price of a good increases then its quantity demanded decreases. And it is by logic as well, because no one will buy more of something if the products is more expensive than it was before. Therefore that the situation in the text is impossible and it could only be opposite.
Paul's Dogs Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.5 percent. The current yield on these bonds is 8.85 percent. How many years do these bonds have left until they mature
Answer:
4.17 years
Explanation:
For Bond,
Let's take Bond Par Value = $1,000
Coupon Rate = 9%
YTM = 8.5%
Current Yield = Annual Dividend/Current Price
0.0885 = 90/Bond Price
Bond Price = $1,016.95
Calculating Time left to Maturity,
Using TVM Calculation,
T = [FV = 1000, PV = 1016.95, PMT = 90, I = 0.085]
T = 4.17 years
So,
Time left to Maturity = 4.17 years
The Don't Tread on Me Tire Company had Retained Earnings at December 31, 2015 of $200,000. During 2016, the company had revenues of $400,000 and expenses of $350,000, and the company declared and paid dividends of $11,000. Retained earnings on the balance sheet as of December 31, 2016 will be:
Answer:
$239,000
Explanation:
The computation of the ending retained earning balance is shown below:
As we know that
Ending retained earnings = beginning retained earnings + net income - dividend paid
where,
Net income is
= Revenues - expenses
= $400,000 - $350,000
= $50,000
And, the other items values would remain the same
So, the ending balance is
= $200,000 + $50,000 - $11,000
= $239,000
V\\\To record a sales transaction, use: Multiple Choice Create Invoices > Receive Payment > Make Deposits Create Purchase Order > Receive Payment > Make Deposit Receive Payment > Create Sales Receipts > Make Deposits Create Invoices > Create Sales Receipts > Make Deposits
Answer:
Create Invoices > Receive Payment > Make Deposits
Explanation:
A sales transaction can be defined as a business transaction between two or more individuals or organizations, which generally involves the buyer purchasing either a tangible or intangible goods and services from the seller (service provider) through the use of money, credit cards or vouchers.
After successfully initiating, processing and execution of a sales transaction, the following are important to consider.
To record a sales transaction, use:
1. Create Invoices: a sales invoice is defined as an accounting document which is used for recording the essential details of the payment of goods and services made by a customer. It is the first step in the sales transaction, as it is expected that the seller or service provider makes it available and issues it for all sales transactions. Also, it is an essential accounting document which serves as an evidence of payment and delivery of goods and services to the customer.
2. Receive Payment: after filling out the sales invoice, the cashier is expected to receive cash or any other form of payment made available to the customer as a medium of payment. At this stage, the cashier or sales representative should ensure the payment is confirmed to be complete and we'll received.
3. Make Deposits: the cashier then goes ahead to record the sales transaction in balance sheet of the organization, after the customer has successfully paid for the service being provided or received.
In a nutshell, for a number of sales the above mentioned steps should be followed by sales persons or cashiers judiciously after all transactions are done.
Gates Appliances has a return-on-assets (investment) ratio of 13 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Answer:
a. Return on Equity refers to how much income the company earned per dollar of investment. One formula for the Return on Equity is;
Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]
Assuming assets are $1 this can be calculated by;
= 13% * [tex]\frac{1}{1 - 0.25}[/tex]
= 17.33%
b. If there is no debt then the Return on Investment will be the same as the return on Equity. However, proving it with the formula gives;
Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]
= 13% * [tex]\frac{1}{1 -0}[/tex]
= 13%
A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
$450
Explanation:
Calculation for the total interest due on the maturity date
Using this formula
Total interest=(Amount borrowed × Percentage of promissory note ×1/2)
Let plug in the formula
Total interest =$10,000 x 0.09x 1/2
Total interest= $450
Therefore the total interest due on the maturity date will be $450
According to question: The total interest due on the maturity date is $450
What is Interest due?
Interest due refers to the dollar amount required to pay the interest cost of the loan for the payment on period. When Most loan payments are structured so that each payment covers the interest charged on the loan for the period, Then the interest due, as well as reduces the principal balance of the loan.
Now the Calculation for the total interest due on the maturity date
We are using this formula that is:
The Total interest is=
(Amount borrowed × Percentage of promissory note ×1/2)
Then Let plug in the formula
The Total interest is =$10,000 x 0.09x 1/2
After that Total interest is = $450
Thus. the total interest due on the maturity date will be $450
Find more information about Interest due here:
https://brainly.com/question/25994247
The following information is for employee William Heedy for the week ended March 15.
Total hours worked: 48
Rate: $16 per hour, with double time for all hours in excess of 40
Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400
Tax rates:
Social security: 6% on maximum earnings of $106,800
Medicare tax: 1.5% on all earnings; on both employer and employee
State unemployment: 4.2% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer Federal unemployment: 0.8% on maximum earnings of $7,000; on employer.
1. What is WIlliam's total earnings?
a. $640.00
b. $896.00
c. $256.00
d. $900,00
2. What is WIlliam's total deductions?
a. $200.00
b. $50.00
c. $317.20
d. $250.00
3. What is William's net pay?
a. $578.80
b. $640.00
c. $580.00
d. $600.00
4. What is the employers FICA based on Williams pay?
a. $70.00
b. $67.20
c. $20.40
d. $0
5. What is the employers Federal Unemployment based on Williams pay?
a. $0
b. $13.44
c. $7.00
d. $4.80
Answer:
1. b. $896.00
2. c. $317.20
3. a. $578.80
4. b. $67.20
5. d. $4.80
Explanation:
1. WIlliam's total earnings
40 hours at $16 = $640
8 hours at $32 = $256
Total = $896
2. WIlliam's total deductions
Income Tax $200
United Fund deduction $50
Social security tax (6% * $896) $3.76
Medicare tax (1.5% * $896) $13.44
Total $317.20
3. William's net pay
= Total earnings - Total deductions
= $896 - $317.20
= $578.80
Cash Paid is $578.80
4. Employers FICA based on Williams pay
Social Security and Medicare taxes = 7.5% * $869 = $67.20
5. Employers Federal Unemployment based on Williams pay
Federal unemployment tax = 0.8% * $600 = $4.80
Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,430. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by:
a. the straight-line method
b. units-of-output method.
c. the double-dedining-balance method.
Answer:
purchase cost $86,670
useful life 3 years, 6,480 operating hours
residual value $2,430
a. the straight-line method
depreciation expense per year = ($86,670 - $2,430) / 3 = $28,080
depreciation year 1 = $28,080 x 9/12 = $21,060depreciation year 2 = $28,080 depreciation year 3 = $28,080 depreciation year 4 = $28,080 x 3/12 = $7,020b. units-of-output method.
depreciation per hour = ($86,670 - $2,430) / 6,480 = $13
depreciation year 1 = 1,200 x $13 = $15,600depreciation year 2 = 2,300 x $13 = $29,900depreciation year 3 = 1,900 x $13 = $24,700depreciation year 4 = 1,080 x $13 = $14,040c. the double-declining-balance method.
depreciation year 1 = 2 x 1/3 x $86,670 x 9/12 = $43,335depreciation year 2 = $14,445 + (2 x 1/3 x $28,890 x 9/12) = $28,090 depreciation year 3 = $4,815 + (2 x 1/3 x $9,630 x 9/12) = $9,630 depreciation year 4 = $1,605 + ($3,210 - $2,430) = $2,385Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30.1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, assuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)3.1 Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)3.2 Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
1)
November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30
Dr Accounts receivable 42,000
Cr Sales revenue 42,000
November 26, invoice collected from Thomas Company
Dr Cash 41,160
Dr Sales discounts 840
Cr Accounts receivable 42,000
2)
November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30
Dr Accounts receivable 42,000
Cr Sales revenue 42,000
December 15, invoice collected from Thomas Company
Dr Cash 42,000
Cr Accounts receivable 42,000
3)
November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30
Dr Accounts receivable 41,160
Cr Sales revenue 41,160
November 26, invoice collected from Thomas Company
Dr Cash 41,160
Cr Accounts receivable 41,160
4)
November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30
Dr Accounts receivable 41,160
Cr Sales revenue 41,160
December 15, 2016, invoice collected from Thomas Company
Dr Accounts receivable 840
Cr Sales discounts forfeited 840
Dr Cash 42,000
Cr Accounts receivable 42,000
Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice and the quantity of juice supplied. He hands you the following document:
Price of Juice Quantity of Juice Supplied (Dollars per can) (Billions of cans)
0.50 750
0.75 1,000
1.00 1,500
1.25 2,000
Your task is to take this______________ and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice supplied increases. This confirms the____________- .
Question
Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice and the quantity of juice supplied. He hands you the following document:
Price of Juice Quantity of Juice Supplied (Dollars per can) (Billions of cans)
0.50 750
0.75 1,000
1.00 1,500
1.25 2,000
Your task is to take this______________ and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice supplied increases. This confirms the____________- .
A.quantity of juice supplied
B.law of supply
C.supply schedule
D. supply curve
Answer:
The correct answers are
C - Supply Schedule
B - Law of Supply
Explanation:
A Supply schedule is a tabular representation of the relationship between the price of a commodity and the quantity of it that is supplied.
The law of supply states that all things being equal, price and quantity supplied will always move in the same direction.
Cheers!
A multinational automobile manufacturer issues a public statement that the company's vehicle emissions tests had been falsified to meet environmental compliance standards over recent years using software specifically designed for that purpose. Following the news, the CEO is replaced, vehicle sales plummet, and the company's stock price sharply declines. Which of the following has the company incurred?
a) visible but not intangible costs
b) only visible and internal administrative costs a
c) internal administrative costs but not visible costs
d) internal administrative costs but not intangible costs
e) visible and intangible costs
Answer:
a) visible but not intangible costs
Explanation:
Based on the information provided within the question regarding the scenario it can be said that the company incurred visible and intangible costs. They have incurred intangible costs because their reputation and credibility was badly damaged due to the public statement, while they also suffered visible costs due to the sharp drop in customers and share prices.
How could reading a use-and-care booklet for a product help you decide whether to buy it?
Answer:
Yes, the use-and-care booklet helps in deciding whether to buy the product or not.
Explanation:
Following are the reasons how a use-and-care booklet may be helpful in deciding whether to buy or not:
It will be helpful in deciding whether the product meets the customer requirement or not. It also helps to understand the functioning of the product and master it. This is again helpful to decide whether the product is easy to operate or not. The features of the product are listed in the use-and-care booklet which reflects what actually we are paying for and makes it easy for a customer to compare two similar products. Furthermore, the use-and-care booklet possesses all type of information necessary to operate the product.All this ease the way in deciding which product to purchase.
Given a pay range with a minimum of $16 per hour and a maximum of $20 per hour (with a midpoint of $18 per hour), what is the compa-ratio for an employee who earns $19/hour
Answer:
106%
Explanation:
Computation compa-ratio for an employee who earns $19/hour
Using this formula
Compa-ratio= Rate/Midpoint
Where,
Rate is the employees pay rate
Midpoint is the midpoint of the target market rate
Let plug in the formula
Compa-ratio=$19/$18
Compa-ratio=106%
Therefore the compa-ratio for an employee who earns $19/hour will be $106%
Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inventory. The customer picks up the entire order the same day and pays $ 1.4 million upfront in​ cash; you also issue a bill for the customer to pay the remaining balance of $ 1.8 million in 30 days. Suppose your​ firm's tax rate is 0.0 % ​(i.e., ignore​ taxes). Determine the consequences of this transaction for each of the​ following: a. Revenues b. Earnings c. Receivables d. Inventory e. Cash
Answer and Explanation:
The consequences of given transactions are as follows
a. Revenues rise by $3.2 million as the firm received an order
b. Earnings rise by $1.5 million as the firm received an order and it filled by an orders i,e ($3.2 - $1.7)
c. Receivables rise by $1.80 million as it determines the remaining balance which ultimately increased the receivable balance
d. Inventory declined by $1.7 million as the order is filled which ultimately declines the stock
e. The cash would rise by $1.4 million
= Earnings - receivable + inventory
= $1.5 million - $1.80 million + $1.7 million
= $1.4 million
Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Answer:
Least Market Risk - Fitcom Corp. as it has the lowest beta.
Explanation:
According to the given table, as we can see that there are 4 types of stock, 4 investment, 4 beta, and 4 standard deviations. Now, as per the requirement of the question the least market risk to the portfolio of the stock is Fitcom Corp. as it has the lowest beta that is 0.50.
Therefore the right answer is Fitcom Corp.
While Jon is walking to school one morning, a helicopter flying overhead drops a $100 bill. Not knowing how to return it, Jon keeps the money and deposits it in his bank. (No one in this economy holds currency.) If the bank keeps 5 percent of its money in reserves:
Answer and Explanation:
The computation is shown below:
a. The lending amount is
= $100 - $100 × 5%
= $100 - $5
= $95
b. The money in case of the change in the economy is
= Bill amount + lending amount
= $100 + $95
= $195
c. The money mutiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 0.05
= 20
d. The money created is
= bill amount × money multiplier
= $100 × 20
= $2,000
An account credits interest at an effective rate of 4% for years 1-3, 5% for years 4-6, and 6% for years 7-9. Deposits of $1,000 are made into the account at the end of each year for 9 years. Calculate the accumulated value of the deposits at the end of 9 years.
Answer:
The accumulated value of the deposits at the end of 9 years is $11,242.18
Explanation:
Note: Find attached the excel file for the calculation.
Since the deposits are made into the account at the end of each year, interest will be earned on the opening balance for each year since it remains the account for 12 months.
No interest will be earned on the deposit of $1,000 made at the end of each year.
The opening balance, interest earned and the deposit for each year are then added together to obtain the closing balance for each year.
Since the closing balance for year 9 is $11,242.18, this is therefore the accumulated value of the deposits at the end of 9 years.
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 410 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 370 $ 3.60 Purchase on January 9 80 3.80 Purchase on January 25 110 3.90 Required: Assume the perpetual invent
Answer:
Cost of ending inventory using:
LIFO = $540
FIFO = $581
weighted average = $553.13
Explanation:
Units Unit Cost
Beginning inventory on January 1 370 $3.60
Purchase on January 9 80 $3.80
Purchase on January 25 110 $3.90
Sales on January 26, the company sells 410 units.
Ending inventory 150 units
Cost of ending inventory using:
LIFO = 150 x $3.60 = $540
FIFO = (110 x $3.90) + (40 x $3.80) = $581
weighted average = ($2,065 / 560) x 150 units = $553.13
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Calculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29
Answer:
$918.89
Explanation:
For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 8% ÷ 2 = 4%
NPER = 5 years × 2 = 10 years
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current price of the bond is $918.89
Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $624,100 $523,300 Cost of goods sold 462,100 405,800 Gross Profit 162,000 117,500 Operating expenses 72,300 44,300 Net income $ 89,700 $ 73,200 (a) Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
Answer:
2022 2021 Change % Change
Net sales 624,100 523,300 100,800 19.23%
Cost of goods sold 462,100 405,800 56,300 13.87%
Gross profit 162,000 117,500 44,500 37.87%
Operating exp. 72,300 44,300 28,000 63.21%
Net Income 89,700 73,200 16,500 22.54%
Since we are using the 2021 income statement as base year, any change will be calculated by dividing the total change by the 2021 amount, and then multiply by 100 to get the %.
What constant annual cash payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $2,500
Answer:
$162.5
Explanation:
Amount of perpetuity = Annual Payment / Return earned
We need to solve for Annual payment
Hence, Annual payment = Amount of Perpetuity * Return earned
=$2,500 * 6.5 %
=$162.5
The annual cash payment that you must receive is $162.5
Globalization is supposed to provide diversification benefits that domestic sectors in US can not. Find three examples where foreign events led to major set-backs in US stock markets and Discuss why those events affected the US markets.
Answer:
Three examples of situations in which events abroad, due to globalization, affected the stock markets in the United States were:
-The confrontation between Saudi Arabia and Russia over the price of oil, started on March 8, 2020, caused the price of said good to drop by 35% and the shares of major companies in that market such as Exxon Mobil, Chevron or Shell fell in the same proportion.
-The emergence of the coronavirus as a global pandemic in China and Europe generated the speculation of many investors, who began to invest in pharmaceuticals such as Pfizer, Glaxo or Abbott, increasing the value of their shares.
-Brexit, by which the United Kingdom has separated from the European Union, the second largest economy in the world and whose main external partner is the United States, has caused a drop in European markets that has indirectly affected the American stock markets, by involve abrupt movement of the shares of major European companies such as Shell or Volkswagen in American stock exchanges.
Texas Foods has a loan that requires one lump sum payment at the end of 12 years in the amount of $139,000. The interest rate is 5.8 percent, compounded monthly. What amount did the firm borrow
Answer:
Amount borrowed = $69,418.30
Explanation:
The amount borrowed by Texas Foods would be the present value of the $139,000 payable at the the ed of year 12 with a discount rate of 5.8% computed monthly
PV = A× (1+ r/m)^(-m×n)
P= Amount borrowed-?
A= Lump sum payment- 139,000
r- interest rate- 5,8%
m- number of times compounding is done- 12
r/m= 5.8%/12=0.483%
PV - 139,000 × (1+0.004833)^(-12× 12)=69,418.30
Amount borrowed = $69,418.30
Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk.
Complete each lettered item below, outlining how much of the capital loss may be deducted for the year and how much is carried back or forward.
a. If Goshawk is a proprietorship, only $ _________ long-term capital loss can be deducted in the current year. The remaining $ ___________net capital loss is carried ___________ and then ____________Correct 3 of Item 1.
b. If Goshawk is a C corporation, only $ __________long-term capital loss can be deducted in the current year. The remaining $ ___________ net capital loss is carried ______________ and then _____________ of Item 2.
Answer:
a) If Goshawk is a proprietorship, only $21000 long-term capital loss can be deducted in the current year. The remaining $19000 net capital loss is carried forward and then carried back
b) If Goshawk is a C corporation, only $ 18000 long-term capital loss can be deducted in the current year. The remaining $22000 net capital loss is carried back and then forward of Item 2.
Explanation:
The gain or loss on the sale of a property is said to be the difference between between the realized value of goods and its adjusted basis. When there is a gain the realized value would be greater than the adjusted basis, while when there's loss the realized value would be less than the adjusted basis.
A) In this case, if Goshawk is a proprietorship, only $21,000 of the $40,000 long-term capital loss can be deducted in the current year. The loss will offset the short-term capital gain of $18,000 first; then, an additional $3,000 of the loss may be utilized as a deduction against ordinary income. The remaining $19,000 net capital loss is carried forward to next year and years thereafter until completely deducted. The capital loss carryover retains its character as long term.
B) If Goshawk is a C corporation, $18,000 short term capital gain can be set off for long term capital loss. Then the remaining $22,000($40,000 - $18,000) will be carried backwards
Beginning inventory $ 32,000 Inventory purchases (on account) 162,000 Freight charges on purchases (paid in cash) 17,000 Inventory returned to suppliers (for credit) 19,000 Ending inventory 37,000 Sales (on account) 257,000 Cost of inventory sold 155,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
Answer:
When Inventory is purchased on account
Merchandise Inventory $162,000 (debit)
Accounts Payable $162,000 (credit)
When freight charges are paid in cash
Freight Charges $17,000 (debit)
Cash $17,000 (credit)
When Inventory is returned to suppliers
Accounts Payable $19,000 (debit)
Merchandise Inventory $19,000 (credit)
When inventory is sold on account
Account Receivables $257,000 (debit)
Cost of Sales $155,000 (debit)
Sales Revenue $257,000 (credit)
Merchandise Inventory $155,000 (credit)
Explanation:
When Inventory is purchased on account
Recognize the assets of Inventory as well as the liability for Suppliers owed
When freight charges are paid in cash
Recognize the freight expenses and de-recognize assets of cash
When Inventory is returned to suppliers
De-recognize the liability of suppliers owed as well as inventory returned
When inventory is sold on account
Recognize the revenue and cost resulting from sale.
Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per share
Answer:
57.14%
Explanation:
Calculation for the rate of return if you repurchase the stock at $25 per share
First step is to calculate for the profit on stock
Using this formula
Profit on stock =( Sales amount of Common stock per share- Repurchased stock per share)*(Share of common stock)
Let plug in the formula
Profit on stock = ($35 - $25)(1,000)
Profit on stock=$10*10,000
Profit on stock = $10,000
Second step is to calculate for the initial investment
Using this formula
Initial investment= (Sales amount of Common stock per share*Share of common stock×Percentage of the initial margin
Let plug in the formula
Initial investment = ($35)(1,000)(.5)
Initial investment= $17,500
The rate of return will be :
Profit on stock / Initial investment
Rate of return=$10,000/$17,500
Rate of return= 57.14%
Therefore what would be your rate of return if you repurchase the stock at $25 per share will be 57.14%
QUCIK!! How do you merge an excel sheet with a word document??
Explanation:
Instead of a mail merge from Excel to Word, you can simply copy and paste the excel sheet from excel to word directly, the worse case is to do some small editing and formatting, or you can decide to keep source formatting all this are prompt you will get to encounter when performing the operation
According to Ryan Grey Smith—the owner of Modern Shed—for the first five years, the big goal for his company is to: a.diversify operations. b.have more employees. c.start a subsidiary company. d.be more accessible to people.
Answer: d.be more accessible to people.
Explanation:
Ryan Grey Smith and his wife, Ahna Holder founded Modern Shed in 2005 after recognising business potential when a client decided that getting a prefabricated shed instead of a house extension was cheaper.
According to Mr. Smith, the big goal the company came up with was to be as accessible to people as possible by being flexible enough to adapt to whatever requirements that people had of them so that they could build on that and maximise their output.