Answer:
Wildhorse Warehouse
Journal Entries:
June 1: Debit Inventory $2,265
Credit Accounts payable (Catlin Publishers) $2,265
To record the purchase of goods on account, terms 4/10, n/30.
June 3: Debit Accounts receivable (Garfunkel Bookstore) $1,400
Credit Sales Revenue $1,400
To record the sale of goods on account.
June 3: Debit Cost of goods sold $800
Credit Inventory $800
To record the cost of goods sold.
June 6: Debit Accounts payable (Catlin Publishers) $65
Credit Inventory $65
To record the return of goods on account.
June 9: Debit Accounts payable (Catlin Publishers) $2,200
Credit Cash $2,112
Credit Cash Discounts $88
To record the payment on account.
June 15: Debit Cash $1,400
Credit Accounts receivable (Garfunkel Bookstore) $1,400
To record the receipt of cash on account.
June 17: Debit Accounts receivable (Bell Tower) $1,000
Credit Sales Revenue $1,000
To record the sale of goods on account.
June 17: Debit Cost of goods sold $850
Credit Inventory $850
To record the cost of goods sold.
June 20: Debit Inventory $800
Credit Accounts payable (Priceless Book Publishers) $800
To record the purchase of goods on account, terms 3/15, n/30.
June 24: Debit Cash $960
Debit Cash Discounts $40
Credit Accounts receivable (Bell Tower) $1,000
To record the receipt of cash on account.
June 26: Debit Accounts payable (Priceless Book Publishers) $800
Credit Cash $776
Credit Cash Discounts $24
To record the payment on account.
June 28: Debit Accounts receivable (General Bookstore) $2,950
Credit Sales Revenue $2,950
To receive the sale of goods on account.
June 28: Debit Cost of goods sold $830
Credit Inventory $830
To record the cost of goods sold.
June 30: Debit Sales Return $120
Credit Accounts receivable (General Bookstore) $120
To record the return of goods by a customer.
June 30: Inventory $60 Cost of Goods Sold $60
Explanation:
a) Data and Analysis:
Credit terms to all customers = 4/10, n/30. This means that 4% discount is allowed to customers who pay within 10 days. The credit period is for 30 days, after which the customer is expected to pay interest.
June 1: Inventory $2,265 Accounts payable (Catlin Publishers) $2,265; terms 4/10, n/30.
June 3: Accounts receivable (Garfunkel Bookstore) $1,400 Sales Revenue $1,400
June 3: Cost of goods sold $800 Inventory $800
June 6: Accounts payable (Catlin Publishers) $65 Inventory $65
June 9: Accounts payable (Catlin Publishers) $2,200 Cash $2,112 Cash Discounts $88.
June 15: Cash $1,400 Accounts receivable (Garfunkel Bookstore) $1,400
June 17: Accounts receivable (Bell Tower) $1,000 Sales Revenue $1,000
June 17: Cost of goods sold $850 Inventory $850
June 20: Inventory $800 Accounts payable (Priceless Book Publishers) $800; terms 3/15, n/30.
June 24: Cash $960 Cash Discounts $40 Accounts receivable (Bell Tower) $1,000
June 26: Accounts payable (Priceless Book Publishers) $800 Cash $776 Cash Discounts $24
June 28: Accounts receivable (General Bookstore) $2,950 Sales Revenue $2,950
June 28: Cost of goods sold $830 Inventory $830
June 30: Sales Return $120 Accounts receivable (General Bookstore) $120
June 30: Inventory $60 Cost of Goods Sold $60
Milliken Company paid $3.00 million to purchase stock in another company, $1.40 million to repurchase treasury shares, $1.50 million to buy short-term investments, sold used equipment for $0.84 million when its book value was $1.20 million, and purchased new equipment for $3.8 million. What was the net cash flow from investing activities
Answer:
Net cash flow from investing activities is -$7.46 million.
Explanation:
Cash Flow from Investing Activities refers to the section of the cash flow statement of an organisation that shows the amount that been utilized in or made from making investments durin a particular accounting period. Examples of investing activities are purchases and sales of investments, long-term assets like property, plant, and equipment, etc.
Net cash flow from investing activities for Milliken Company can be calculated as follows:
Milliken Company
Calculation of net cash flow from investing activities
Details Amount ($'million)
Purchase stock in another company (3.00)
Buy short-term investments (1.50)
Sold used equipment 0.84
Purchased new equipment (3.80)
Net cash flow from investing activities (7.46)
Therefore, net cash flow from investing activities is -$7.46 million.
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
Suppose that Perry and Taimur both produce poems and novels. Perry’s productive capabilities are as follows. He can produce 12 poems if he spends all of his time writing poems or he can write 2 novels if he spends all of his time writing novels. He can also produce any linear combination in between. Taimur’s productive capabilities are as follows. He can produce 12 poems if he spends all of his time writing poems or he can write 4 novels if he spends all of his time writing novels. He can also produce any linear combination in between.
A. Which person can produce poems at lower opportunity cost? Explain. Which person can produce novels at a lower opportunity cost? Explain.
B. Suppose that Perry and Taimur make the following deal. Perry will spend all of his time making poems and Taimur will spend all of his time making novels. Taimur will then send 1 novel to Perry and in return Perry will send Taimur 4 poems. How many poems and novels will Perry have after this trade? How may poems and novels will Taimur have after this trade?
C. I claim that after trading with Taimur, Perry can now consume a combination of poems and novels that he never could have produced for himself. Likewise, Taimur can now consume a combination of poems and novels that he never could have produced for himself after trading with Perry. Use equations and a couple of simple calculations to demonstrate that I am correct.
D. What do you think is going on here? Why can both Perry and Taimur now consume a quantity of goods that they never could have produced for themselves?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
Perry poems = 12
Taimur Poems = 12
Perry Novels = 2
Taimur Novels = 4
Opportunity cost of Poems for Perry = 2/12 = 1/6
Opportunity cost of Poems for Taimur = 4/12 = 1/3
Opportunity cost of Novels for Perry = 12/2 = 6
Opportunity cost of Novels for Taimur = 12/4 = 3
As opportunity cost of poems for Perry < Opportunity Cost of Poems for Taimur
So,
Perry can produce poems at lower opportunity cost.
And,
Opportunity cost of Novels for Taimur < Opportunity cost of Novels for Perry
SO,
Taimur can produce novels at lower opportunity cost.
b.
Perry spend all time in making poems = 12 poems
Taimur Spend all time in novel making = 4 novels
Trade ---> Taimur send 1 novel, So, he will left with 3 novels, in exchange he will get 4 poems.
So, after trade, we have:
Perry = 8 novels and 1 Poem
Taimur = 4 poems and 3 novels.
c.
The claim is correct.
This is because, Perry makes 8 poems, he is left with with only 4 novels of productivity and as his opportunity cost of novel is 6, he won't be able to produce even 1 novel, if he doesn't trade.
Let's assume Perry and Taimur both have 12 hours of time each.
Productivity of Perry ---> Poems: 12 hours/12 units = 1 Novels: 12/2 = 6
i.e. Perry need 1 hour to produce 1 poem
and 6 hours to produce 1 novel .
So, when Perry produce 8 poems, he exhaust his 8 hours. Now, he is left with 4 hours. So he cannot produce 1 novel, which require 6 hours to complete. So, after trade, he is better off.
d.
As both Perry and Taimur, produce the good, in which they have comparative advantage it lead to specialization. And when they trade the good, in which they have specialization which will lead them expand this consumption possibilities.
Barbur, Inc. reported net income of $20.35 million. During the year the average number of common shares outstanding was 3.7 million. The price of a share of common stock at the end of the year was $5. There were 680,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is non-cumulative.
1A. Use the information above, the EPS is approximately:_____.
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
1B. Use the information above, the Price/Earnings ratio is approximately:_____.a. 2.00.b. 2.50.c. 2.84.d. 12.50.
Answer and Explanation:
The computation is shown below:
a. EPS = Net income ÷ Outstanding shares
= $20,350,000 ÷ 3,700,000 shares
= $5.50 per share
b. Price/Earnings ratio = Price of common stock ÷ EPS
= $5 ÷ $5.50
= 0.9091
Hence, the above represent the answer and the options that are given are incorrect
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
is it possible for a company to be too liquid
Answer:
yes it is possible ......
Answer:
A company can have too much liquidity, which may be a sign that it's holding onto cash that could be invested. In a sense, even borrowing money is another typical source of liquidity for businesses. To meet its obligations, the ability to take out loans will be a factor in its liquidity.
Explanation:
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 590 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,910 in cash for a total at the end of the year of 810 shares). These effects are included below
Cash Catena's Marketing Company Adjusted Trial Balance End of the Current Year
Debit Credit
Cash $ 1,370
Accounts receivable 2,230
Interest receivable 170
Prepaid insurance 1,620
Long-term notes
receivable 2,890
Equipment 15,700
Accumulated depreciation $ 3.060
Accounts payable 2,400
Dividends payable 630
Accrued expenses payable 3,740
Income taxes payable 2,640
Unearned rent revenue 430
Common Stock (810 shares) 81
Additional paid in capital 3.589
Retained earnings 1,870
Sales revenue 38,780
Interest revenue 150
Rent revenue 760
Wages expense 20,700
Depreciation expense 1,700
Utilities expense
Insurance expense 760
Rent expense 7,880
Income tax expense 2,780
Total $58,130 $58,130
Prepare the closing entry at the end of the current year, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 15,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Answer:
The decision should be to make the part
Explanation:
Variable cost of manufacturing = 15000x4 = 60000
Fixed cost of manufacturing = 15000 x 2 = 30000
Purchase cost = 15000x5 = 75000
Total annual cost of making = 60000 + 30000 = $90000
Total annual cost of buying is 30000 + 75000 = $105000
90000 - 105,000 = -15000
This shows that manson's cost savings would decrease by -15000
So instead of buying, it is better to make.
watch the video " the best stats youve ever seen " then answer the questions.
Answer:
thats a long video I'll pass
Gilligan Co.'s bonds currently sell for $1,230. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds, the YTC or the YTM? Select the correct answer. a. 3.20% b. 3.47% c. 4.01% d. 2.93% e. 3.74%
I uploaded the answer to a file hosting. Here's link:
cutt.us/tWGpn
Stock Options
On December 30, 2014, Yang Corporation granted compensatory stock options for 5,000 shares of its $1 par value common stock to certain of its key employees. The options may be exercised after 2 years of employment. Market price of the common stock on that date was $30 per share and the option price was $30 per share. Using a fair value option pricing model, total compensation expense is determined to be $80,000. The options are exercisable beginning January 1, 2017, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on January 1, 2018.
Instructions:
Prepare the following selected journal entries for the company on the answer sheet (if no entry required, state "no entry").
(1) December 30, 2014.
(2) December 31, 2015.
(3) January 1, 2017, assuming 90% of the options were exercised at that date.
(4) January 1, 2018, for the 10% of the options that expired.
Answer:
Date Account Titles Debit Credit
Dec 30, 14 No entry on Grant Date
Dec 30, 15 Compensation expense $40000
Paid in capital- stock options $40000
Dec 30, 16 Compensation expenses $40000
Paid in capital- stock options $40000
Jan 1, 17 Cash (30*5000*90%) $135000
Paid in capital- stock options $72000
(80000*90%)
Common stock (5000*90%*1) $4500
Paid in capital $202500
Jan 1, 18 Paid in capital- stock options $8000
Paid in capital- expired stock options $8000