Answer:
We do not violate the law of demand based on my choices
Explanation:
We do not violate the law of demand because the preference for the product changed after i experienced the good. Law of demand is not violated as the preference / utility derived from Uber changes after one ride. Now the consumer derives more utility from Uber, so the willingness to pay also increases.
You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several 30-second radio spots for the City of Milwaukee Tourism Bureau, which wants to feature its own information center and tours, as well as city museums, art galleries, concerts, festivals, and special events. When they are ready, the best ideas will be taken to the marketing director at the City of Milwaukee for review and approval.(Scenario ) One copywriter shows you an idea that involves an announcer reading a "top ten" list of cool reasons to visit Milwaukee. What basic guidelines of radio copywriting does this technique address?a. Repeat the brand name.b. Stress the main selling points.c. Stimulate the imagination.d. Tailor copy to a time, place, and audience.
Answer:
City of Milwaukee Tourism Bureau
The basic guideline of radio copywriting that this technique addresses is:
b. Stress the main selling points.
Explanation:
Exploiting the city's selling points and communicating the benefits derivable from touring the city's museums, art galleries, concerts, festivals, and special events are the top guidelines for radio copywriting. Other guidelines will include focusing on the "you" and not "we," not providing too much information, and including a call for action.
Selected transactions for Bramble, an interior decorator corporation, in its first month of business, are as follows.
a. Issued stock to investors for $16,000 in cash.
b. Purchased used car for $10,700 cash for use in business.
c. Purchased supplies on account for $400.
d. Billed customers $4,010 for services performed.
e. Paid $160 cash for advertising at the start of the business.
f. Received $1,530 cash from customers billed in transaction (4).
g. Paid creditor $400 cash on account.
h. Paid dividends of $530 cash to stockholders.
Required:
For each transaction indicate the basic type of account debited and credited.
Answer:
transaction account debit credit
a. cash 16,000
common stock 16,000
b. vehicles 10,700
cash 10,700
c. supplies 400
accounts payable 400
d. accounts rec. 4,010
service revenue 4,010
e. adv. expense 160
cash 160
f. cash 1,530
accounts rec. 1,530
g. accounts payable 400
cash 400
h. dividends 530
cash 530
Use each of these key terms to best complete the following sentences. Use each term no more than once. Agreeableness
1. Neuroticism
2. Extraversion
3. Conscientiousness
4. Openness
5. Machiavellianism
6. Authoritarianism
a. Ted is willing to listen to new ideas and to change his beliefs and attitudes in response to new information. Ted is likely high in this personality trait.
b. Eduardo tends to be insecure and often has mood swings at work that make his coworkers uncomfortable. Eduardo is likely to be high in this personality trait.
c. Aidan is often late with projects and seems disorganized. He is likely low in this personality trait
d. Betty is sociable, talkative, and one of the first employees to welcome a new hire and offer to show him or her around. Betty is likely high in this personality trait.
Answer:
4
1
3
2
Explanation:
The big 5 personality traits include
Openness - it includes people who are open to new things and enjoy learning new things.
Ted is high on this trait
Extraversion - it includes people who enjoy meeting new people and are very sociable.
Betty is high on this trait
Conscientiousness - includes people that are organised and pay attention to details. Aiden is low on this trait
Agreeableness - includes people that trust people easily and are kind
Neuroticism - includes people that are usually moody or sad
Threats. Assessing threats is an essential part of developing a strategic plan for your professional future. If the economy goes into a recession at the same time you graduate, for example, your earnings growth could be reduced for years to come. By examining what potential threats could affect your professional development and creating contingency plans, you will be in a better position to succeed in your pursuit of a job.
Describe three to five threats that could affect your ability to achieve your objectives.
Explanation:
Some threats that can affect an individual's ability to achieve their professional goals may be: an economic recession, the saturated work sector, conflicts in the workplace.
Assessing threats is essential so that the individual can plan their professional future based on risks that may occur and seek prior solutions so that if any of these threats occur, their effects are less negative for the individual.
In the case of an economic recession and a saturated work sector, it would be ideal for the professional to look for a professional plan b, as these are external events that cannot be controlled, but developing new professional skills can mean a quicker and more positive market replacement.
Avoiding conflicts in the workplace is a threat that can be avoided by acting in an ethical and professional manner, always respecting differences, taking responsibility for your role and maintaining effective communication.
You are asked to study the causal effect of hours spent on employee training (measured in hours per worker per week) in a manufacturing plant on the productivity of its workers (output per worker per hour). Describe EITHER ONE a-an ideal randomized controlled experiment to measure this causal effect.
Answer and Explanation:
An ideal randomized controlled experiment to measure the productivity of the factory would be established in the following way: owners of all sectors of the factory would be selected. This selection would be done completely randomly so that it was possible to select individuals different from each other. These employees would be divided into two groups. The first group would receive training, the second group would not receive training.
In this case, the productivity of one group would be compared to the productivity of the other, after both groups were submitted to a period of work, after the first group received training.
The ___________ ____ __________ Endorsement area includes a variety of specialization areas within the world of work such as Agriculture, Food and Natural Resources; Architecture and Construction; Arts A/V Technology and Communications; Business Management and Administration; Marketing, Sales and Service; Finance, Hospitality and Tourism; Information Technology; Manufacturing and Transportation and Distribution.
a. Science, Technology, Engineering,m & Mathematics
b. Business & Industry
c. Arts & Humanities
d. Public Services
Answer:
b. Business & Industry
Explanation:
STEM (or Science, Technology, Engineering & Mathematics) includes different types of engineering, computer science, mathematics, and other fields.
Arts and humanities include archaeology, history, literature, philosophy, etc.
Public services include journalism, education, healthcare, teaching, etc.
A production department's output for the most recent month consisted of 8,800 units completed and transferred to the next stage of production and 5,800 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Answer:
11,700 units
Explanation:
Calculation for the equivalent units of production for the month, assuming the company uses the weighted average method
Unit completed and transferred to the next stage 8,800 units
Add Unit in ending goods in process inventory 2,900 units
(5,800 units*50%)
Equivalent units of production 11,700 units
(8,800 units+2,900 units)
Therefore the equivalent units of production for the month, assuming the company uses the weighted average method will be 11,700 units
The income statement for the Timberline Golf Club Inc. for the month ended July 31 shows Service Revenue $18,530; Salaries and Wages Expense $9,100; Maintenance and Repairs Expense $4,190; and Income Tax Expense $1,110. The statement of retained earnings shows an opening balance for Retained Earnings of $20,590 and Dividends $1,830.Prepare closing journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The closing journal entries are as follows:
1. Service revenue Dr $18,530
To Income summary $18,530
(being revenue account is closed)
2. Income summary Dr $14,400
To Salaries and Wages Expense $9,100
To Maintenance and Repairs Expense $4,190
To Income Tax Expense $1,110
(being expenses account is closed)
3. Income summary Dr $4,130 ($18,530 - $14,400)
To retained earnings $4,130
(Being closing of the net income is recorded)
4. Retained earnings Dr $1,830
To Dividend $1,830
(being dividend account is closed)
Sutherland Company listed the following data for 2019:
Budgoted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:__________ (round calculations to 2 significant digits)
a) $176,358 underapplied.
b) $176,358 overapplied.
c) $187,298 underapplied
d) $187.298 overapplied.
Answer:
c) $187,298 underapplied
Explanation:
The computation of the overhead or underapplied overhead is shown below:
But before that the predetermined overhead, applied manufacturing overhead need to be computed
Predetermine overhead rate is
= Estimated factory overhead ÷ estimated machine hours
= $2,100,000 ÷ 51,000
= $41.18
Now the applied overhead is
= Actual machine hours × predetermined overhead rate
= 48,900 × $41.18
= $2,013,702
As, applied overhead is less than actual overhead
So, the Underapplied overhead is
= $2,201,000 - $2,013,702
= $187,298
You are a supplier of printed circuit boards (PCBs). Production of the circuit boards consists of several steps – Surface Mounting, Baking, and Final Assembly. Surface Mounting puts integrated circuits (ICs) and other components on a PCB. These PCBs are then Baked as a batch and kept in an oven for some time so that the ICs are soldered onto the PCBs. Finally, these PCBs are taken and manually assembled into a case, and wired with connectors. The processing rate at the Surface Mounting station is 15 PCBs/minute, the processing rate for Baking is 5 PCBs/minute, and the processing rate for Final Assembly is 3 PCBs/minute. If there are on average 24 units of (work in process) inventory and the system is working at capacity, what is the flow (throughput) time for PCBs?
Answer:
the flow (throughput) time for PCBs is 40 units per minute
Explanation:
Given that;
Work in progress WIP = 24
we calculate the time spent to make the PCBs, lead time
Processing rate at the Surface Mounting station is 15 PCBs/minute
so time taken by a single PCB at the SM operation = 1/15 min
Processing rate for Baking is 5 PCBs/minute
so time taken by a single PCB at the baking operation = 1/5 min
the processing rate for Final Assembly is 3 PCBs/minute
so time taken by a single PCB at the assembly = 1/3 min
∴ total time taken will be;
(1/15) + (1/5) + (1/3)
= 0.6 min
Now, using Little's Law;
Working in progress WIP = throughput × lead time
Throughput = WIP / Lead time
so we substitute
Throughput = 24 / 0.6 min
Throughput = 40 units per minute
Therefore the flow (throughput) time for PCBs is 40 units per minute
Consider the following process that makes customized suits. When an order is placed, measurement is taken, which takes 30 minutes to complete. After taking the measurement, materials are prepared and cut, and this takes one hour. Once the materials are prepared and cut, the materials are sewed. Sewing takes 2.5 hours on average per order. The process operates for 10 hours a day. The following picture summarizes the process.
1. What is the capacity of the process in [suits/day]?
2. Assume that the demand for the customized suit is 0.2[suits/hour]. What should the flow rate of the process be in [suits/day]?
3. Assume that the demand for the customized suit is 0.5[suits/hour]. What is the implied utilization (in %) of the Sewing stage?
4. Assume that the demand for the customized suit is 0.5[suits/hour]. What is the utilization (in %) of the Measuring stage?
Answer:
1. The capacity of the process
= 2.5 suits /day
2. The flow rate of the process = 2.5 suits/10 hours
= 0.25 suits per hour
3. The implied utilization of the Sewing stage = (0.5 * 150 minutes * 4) 300 minutes = 5/10
= 50%
4. The utilization of the Measuring stage = (0.5 * 30 minutes * 4) 60 minutes = 1/10
= 10%
Explanation:
a) Data and Calculations:
Time taken for the measurement of a suit = 30 minutes
Time for preparation and cutting of materials = 60 minutes (1 hour)
Time for sewing = 150 minutes (2.5 hours or 2 hours, 30 minutes)
Total time taken to make a suit = 4 hours
Available production time per day = 600 minutes (6 hours)
Therefore, 6/4 suits can be produced per day, this equals 2.5 suits.
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $222,000 cash. On that date, Short's book value and fair value were both $740,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $70,000. During 2021, Short also paid cash dividends in the amount of $19,000.
Required:
Compute the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2021. what is investment amount?
Answer:
the amount that should be reported for the investment is $237,300
Explanation:
The computation of the amount that should be reported for the investment is as follows:
= Original investment + net income share - cash dividend
= $222,000 + ($70,000 × 30%) - ($19,000 × 0.30)
= $222,000 + $21,000 - $5,700
= $237,300
hence, the amount that should be reported for the investment is $237,300
The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 14%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to:
Answer:
4%
Explanation:
The Gordon constant growth dividend model =
Value = dividend / cost of capital - growth rate
Subsisting with the values given in the question gives :
25 = 2.5/0.14 - g
To solve for g,
1. multiply both sides by 0.14 - g
25(0.14 -g) = 2.5
2. divide both sides by 25
0.14 - g = 0.10
g = 0.04 = 4%
What level of government is most closely associated with zoning?
a.local
b.interstate
c.federal
d.state
Suppose that Texas Trucking (TT) has earnings per share of $3.45 and EBITDA of $45 million. TT also has 5 million shares outstanding and debt o $150 million (net of cash). You believe that Oklahoma Logistics and Transport (OLT) is comparable to TT in terms of its underlying business, but OLT has no debt. OLT has a P/E of 12.5 and an enterprise value to EBITDA multiple of 7. Based upon the enterprise value to EBITDA ratio, the value of a share of Texas Trucking is closest to:
Answer:
$33.00 per share
Explanation:
Calculation to the value of a share of Texas Trucking
Using this formula
Enterprise value = EBITDA × multiple
Let plug in the formula
Enterprise value = $45 × 7 = $315
Enterprise value=$315- $150
Enterprise value=$165
Enterprise value=$165/5 million share
Enterprise value = $33.00 per share
Therefore the value of a share of Texas Trucking is closest to:$33.00 per share
The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest
The Fisher equation does not imply that the increase in inflation will result in a fall in the real rate of interest.
The Fisher equation states the nominal interest rate in the sum of inflation rate and the real interest rate
(1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
Based on the above equation, an increase in inflation rate would lead to a rise in the nominal interest rate. The real interest rate is taken as given in the equation and it is not affected by changes in inflation rate. If inflation rate increases from 3% to 5%, the nominal rate of interest would increase by about 2%.
To learn more, please check: https://brainly.com/question/22682672
A taxi driver who opens the door for his customer is an example of ________. Fill in the blank.
Answer:
courtesy
Explanation:
It basically is having manners and being respectful of the customer. When a taxi driver opens the door for someone, he or she is being respectful
The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual requirement is 15,000 units. A supplier is able to supply the parts for $17.25 per piece. Green Machine estimates that it will cost $2,100 to prepare the contract with the supplier. To make the parts in-house, Green Machine must invest $100,000 in capital equipment. They estimate it will cost $11.00 per piece to produce the part in-house.
1) What is the breakeven quantity?
A) Less than or equal to 30,000
B) Greater than 30,000 but less than or equal to 35,000
C) Greater than 35000 but less than or equal to 40,000
D) Greater than 40,000 but less than or equal to 45,000
E) Greater than 45,000
2) What is the total cost at the breakeven point?
A) Less than or equal to $365,000
B) Greater than $365,000 but less than or equal to $370,000
C) Greater than $370,000 but less than or equal to $375,000
D) Greater than $375,000
3) If the demand is 25,000 units, should Green Machine make or buy the part?
A) Buy the part
B) Make the part
C) Both
D) Neither
E) Not enough information
4) What is the cost savings from making the correct decision?
A) Less than or equal to $20,000
B) Greater than $20,000 but less than or equal to $25,000
C) Greater than $25,000 but less than or equal to $30,000
D) Greater than $30,000 but less than or equal to $35,000
E) Greater than $35,000
Answer:
A) Less than or equal to 30,000
A) Less than or equal to $365,000
B) Make the part
E) Greater than $35,000
Explanation:
Capital equipment cost = $100000
Annual requirement = 15000
Supply cost per piece = $17.25
In-house production cost per piece = $11
Contract preparation cost = $2100
If quantity at beatk even = x
In-house production = purchase cost
100000 + 11x = 2100 + 17.25x
100000 - 2100 = 17.25x - 11x
97900 = 6.25x
x = break-even quantity = 15664
Cost at breakeven:
100000 + 11(15664)
= 272,304
If demand = 25000 units:
In-house production :
100000 + 11(25000) = 375000
Purchase cost:
2100 + 17.25(25000)
2100 + 431250 = $433,350
The correct decision is to make the part, it is cheaper
Amount saved:
$433,350 - $375,000 = $58,350
Thomlin Company forecasts that total overhead for the current year will be $10,282,000 with 194,000 total machine hours. Year to date, the actual overhead is $5,689,800, and the actual machine hours are 98,100 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answer:
$490,500 underapplied
Explanation:
The computation of the overhead is shown below:
But before that the predetermined overhead rate and the applied overhead is
Predetermined overhead rate is
= Estimated overhead ÷ estimated activity
= $10,282,000 ÷ 194,000
= $53 per MH
Now
Applied overhead = actual activity × overhead rate
= 98,100 hours ×$53 per MH
= $5,199,300
Now the underapplied overhead is
= $5,689,800 - $5,199,300
= $490,500 underapplied
2. Marginal analysis is sometimes called "thinking on the
Answer:
fly.
Explanation:
Thinking on the fly is the act of analyzing something quickly and sometimes without all the facts.
Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
2014 2013 Increase/decrease
Accounts payable $ 4,000 $ 6,000 $(2,000)
Accrued liabilities 2,000 1,000 1,000
Long-term notes payable 84,000 90,000 (6,000)
Total liabilities $90,000 $97,000 $(7,000)
Additional information provided:
During 2014, the company repaid $40,000 of long-term notes payable.
During 2014, the company borrowed $34,000 on a new note payable.
Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?
A) $6,000 negative
B) $6,000 positive
C) $5,000 positive
D) $7,000 negative
Answer:
D) $7,000 negative
Explanation:
What amount of net cash flow would be shown in the financing section of the statement of cash flows?
Amount of net cash flow to be shown in the financing section of the statement of cash flows = Decrease in Account payable - Increase in accrued liabilities + Borrow of new long term notes payable - Repayment of long term notes payable
= -$2,000 + $1,000 + $34,000 - $40,000
= -$7,000
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
Explanation:
Preparation of the journal entries
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $166,000; salaries and wages expense, $97,000; interest expense, $6,300; advertising expenses, $9,025; and income tax expense, $18,500. Also during the year, the company declared and paid the owners dividends amounting to $12,000.
Required:
Prepare the company’s income statement.
Answer:
Net Income for the year is $23,175
Explanation:
The Company's income Statement is prepared below. In relation to the following please note that:
Total Revenue is considered Section A while Total Expense is Section B and the Net Income is the difference of the same (A - B).Income Statement on December 31st:
HOME REALTY, CORPORATION
Income statement
For period ended December 31st
Revenue $
Sales Revenue 166,000
Other Revenue -
Total Revenue (A) 166,000
Expenses: $
Salaries and Wages Expense 97,000
Interest Expense 6,300
Advertising Expenses 9,025
Income Tax Expense 18,500
Dividends 12,000
Total Expenses (B) 142,825
Net Income (A-B) $23,175
11) Which of the following sections of the statement of cash flows includes activities that increase and decrease long-term liabilities and stockholders' equity? A) the investing activities section B) the financing activities section C) the operating activities section D) the non-cash investing and financing section
Answer:
A) the investing activities section
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
Hence, the investing activities section of the statement of cash flows includes activities that increase and decrease long-term liabilities and stockholders' equity in the business they have invested their money in.
Identifying various components that are at higher risks and standardizing it.
a. In Toyota's case it was certain parts across Japanese automakers which was considered as a risk for revenue and disruption of production.
b. Toyota is now sourcing of engines and transmissions in the locally.
c. Toyota brought out fix solutions to the affected vehicles which took mass media and online tools for its advantage and also teams to monitor quality issues.
Answer:
a. Certain parts acquired from Japanese automakers are at lesser risk because the components are standardized.
b. Sourcing engines and transmissions locally is at higher risk as the company has gone toward customization which involves risks and the product will not be standardized.
c. This involves less risk and standardized.
Explanation:
The standardized components will create lesser risk to the company. When the company goes towards customization then there will be risk involved in the components as the customers might not accept the customized components and standardized feature might be more appreciated by the customers.
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash 9,000
Aug. 10 Cash 1,400
Service Revenue 1,400
Aug. 12 Equipment 5,600
Cash 1,540
Notes Payable 4,060
Aug. 25 Accounts Receivable 2,570
Service Revenue 2,570
Aug. 31 Cash 750
Accounts Receivable 750
Required:
Post the transactions to T-accounts.
(Post in same order as question)
Answer:
Metlock, Inc.
T-accounts:
Common Stock
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Aug. 10 Service Revenue 1,400
Aug. 12 Equipment 1,540
Aug. 31 Accounts receivable 750
Service Revenue
Date Account Titles Debit Credit
Aug. 10 Cash 1,400
Aug. 25 Accounts receivable 2,570
Equipment
Date Account Titles Debit Credit
Aug. 12 Cash 1,540
Notes Payable 4,060
Accounts Receivable
Date Account Titles Debit Credit
Aug. 25 Service Revenue 2,570
Aug. 31 Cash 750
Explanation:
Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.
Drussden Inc., a multinational corporation, has decided to hire military veterans. This, the company feels, would not only set a good example of a diverse workplace among its peers and customers, but also let it derive great benefits from this unique talent pool. In implementing this recruiting strategy, Drussden Inc. should expect:
a. an increase in expenses as the company will need to pay a much higher compensation to these employees.
b. to have a more rigid and harsh workplace environment than before.
c. to require sufficient time for training their HR personnel on how to appropriately interview these potential employees.
d. a significant decrease in its hiring-related costs
Answer:
c. to require sufficient time for training their HR personnel on how to appropriately interview these potential employees.
Explanation:
Most organizations lack a veteran recruiting program. There are several misconceptions about veterans working in private companies especially regarding their mental state. It is true that a percentage, about 10-20%, experience some type of PTSD, but it generally is not something permanent. Also, former military personnel are normal people that served their country. They have some skill sand some preparation that even though might be unrelated to a specific, might be very useful. For example, many companies hire veterans because they are adaptable, flexible, react well under pressure and tend to find solutions to problems. They didn't learn this in any school, instead they learned this on the battle field. Many veterans also have a lot of experience with solving problems and presenting clear information.
This doesn't mean that they will earn a higher salary, or that they will turn the office into a military headquarter. Many companies higher them for their flexibility and how well they adapt and react to change. The problem is that not enough companies actually have veteran recruiting programs that will help both the companies and the veterans.
Record the December 31 adjusting entries for the following transactions and events in general journal form. Assume that December 31 is the end of the annual accounting period. (5 p.)
a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to-date.
b. The Store Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand.
c. On November 1 of the current year, Unearned Rent was credited for $1,500 for a three-month rent period beginning Nov. 1.
d. Estimated depreciation on store equipment is $600.
e. Accrued salaries amount to $1,400.
Answer:
a.
Insurance expense $292.5 Dr
Prepaid Insurance $292.5 Cr
b.
Supplied expense $320 Dr
Supplies $320 Cr
c.
Unearned rent $1000 Dr
Rent Revenue $1000 Cr
d.
Depreciation expense $600 Dr
Accumulated depreciation - Equipment $600 Cr
e.
Salaries expense $1400 Dr
Salaries Payable $1400 Cr
Explanation:
a.
Insurance expense has been debited for three month period of current year from October to December. The insurance expense for 3 month period was
Insurance expense = 2340 * 3/24 = $292.5
b.
The supplies worth 400 - 80 = 320 have been used and should be recorded as a debit to supplies expense and a credit to supplies
c.
Rent for two months period worth 1500 * 2/3 = $1000 has been earned by the end of December and should be recorded as rent revenue and debit to unearned rent.
d.
The depreciation expense should be recorded.
e.
The salaries are payable and recorded as an expense and a liability to show that they are still payable
LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant:Direct materials inventory ..... $62,400Work-in-process inventory ..... 33,900Finished goods inventory ..... 55,600During June, direct labor cost was $143,000, direct materials purchases were $346,000, and the total overhead cost was $375,800. The inventories at the end of June were:Direct materials inventory ..... $63,000Work-in-process inventory ..... 37,500Finished goods inventory ..... 50,800Required:1. Prepare a cost of goods manufactured statement for June.2. Prepare a cost of goods sold schedule for June.
Answer and Explanation:
1. The preparation of the cost of goods manufactured statement as follows:
Statement of Cost of Goods Manufactured
Direct Material:
Beginning Raw material Inventory $62,400
Add: Cost of raw material purchased $346,000
Material available $408,400
Less: Ending Raw material inventory -$63,000
Direct Materials used in Production $345,400
Direct Labor Cost $143,000
Total overhead cost $375,800
Total Manufacturing cost added $864,200
Add: Opening Work in Progress $33,900
Less: Closing Work in Progress -$37,500
Cost of Goods manufactured $860,600
2. The preparation of a Cost of Goods Sold is presented below:
Statement of Cost of Goods Sold
Opening Finished goods inventory $55,600
Add: Cost of Goods manufactured $860,600
Total goods available for Sale $916,200
Less: Closing finished goods inventory -$50,800
Cost of Goods Sold $865,400
5.17. When a known future cash outflow in a foreign currency is hedged by a company using aforward contract, there is no foreign exchange risk. When it is hedged using futures contracts, the daily settlement process does leave the company exposed to some risk. Explain the nature of this risk. In particular, consider whether the company is better off using a futures contract or a forward contract when:a)The value of the foreign currency falls rapidly during the life of the contract.b)The value of the foreign currency rises rapidly during the life of the contract.c)The value of the foreign currency first rises and then falls back to its initial value.d)The value of the foreign currency first falls and then rises back to its initial value. Assume that the forward price equals the futures price