Answer and Explanation:
The preparation of the August 31 trial balance for Pose for pics is presented below:
Particulars Debit Credit
Cash
($5,500 - $3,800 - $1050
+ $2,150 - $884) $1,921
Office Supplies $1,045
Prepaid Insurance $3,800
Photography Equipment $23,650
Common Stock
($5,500 + $23,650) $29,150
Photography Fees Earned $2,150
Utilities Expense $884
Totals $31,300 $31,300
Why do companies such as Gillette target emerging markets? Do you agree with this strategy?
Answer:
Due to more customers, high number of sales,
Explanation:
Most of the emerging markets are in developing nations and are becoming more engaged in the global market as they have the potential to grow. The emerging markets are transitional form low income less developed and often are pre-industrial towards a modern developed economy with a high standard of living. Thus I agree with this strategy as it helps the company to boost its sale and open its new markets all around the world, and increases its brand value.I agree with the strategy because new business will expands easily because of lesser competition which is a major advantage in a market.
An emerging market refers to a market in the developed nation which is becoming more engaged with global markets as it grows.
An emerging market is believed to be on a developing scales and serves a attraction to new investor because of benefit therein.
Hence, companies like Gillette target an emerging markets because new business will expands easily because of lesser competition which is a major advantage in a market.
Therefore, the answer is that i agree with the strategy.
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Blue Spruce Corp. issued 1,100 6%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
a.
January 1, 2022
Cash $1100000 Dr
Bonds Payable $1100000 Cr
b.
December 31, 2022
Interest expense $66000 Dr
Interest Payable $66000 Cr
c.
January 1, 2023
Interest Payable $66000 Dr
Cash $66000 Cr
Explanation:
a.
The bonds are issued at face value. The face value of each bond is $1000 and there are 1100 bonds issued in total. Thus, the cash received from issuance of bonds is,
Cash = 1100 * 1000 = $1100000
So, we debit the cash by this amount and credit the bonds payable account.
b.
The interest expense for the year on these bonds is,
1100000 * 0.06 = $66000
The adjusting entry made on December 31 2022 will include a debit to the interest expense and a credit to the interest payable. The interest expense will be debited because under the accrual principle, we match the expenses to the period to which they relate.
c.
The entry to record payment of interest will result in a debit to interest payable as liability is being closed through this payment and a credit to cash
Based on the information given the appropriate journal entries to record the transactions are:
Blue Spruce Corp. Journal entries
a. January 1, 2022
Debit Cash $1,100,000
(1,100 x $1000)
Credit Bonds payable $1,100,000
(To record sale of bonds)
b. December 31,2022
Debit Interest expense $66,000
Credit Interest payable $66,000
($1,100,000×6%)
(To record interest expense)
c. January 1, 2022
Debit Interest payable $66,000
Credit Cash $66,000
($1,100,000×6%)
(To record interest paid)
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Airlines have first-class or business-class seating, for which customers pay a higher price to receive more room, extra amenities, and more attentive service. Would this illustrate price discrimination
Answer:
YES
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Airlines charging different prices based on seating arrangement is an example of first degree price discrimination. the airlines aim to eliminate consumer surplus by charging each consumer at their willingness to pay.
A(n) ________ has no impediments to the free flow of goods and services, such as trade barriers.
Answer:
efficient market
Explanation:
The next four questions refer to a fictional fast food company:
The following cost information pertains to the meals made by the company:
Food $2.50/meal
Franchisor Royalties $0.70/meal
Advertising & Promotion $300,000
Rent $100,000
Price of each meal $10.00
What is the gross marketing contribution per unit?
If the company sold 100,000 meals and decided that they wanted to increase the advertising expense by $25,000 to generate more sales, how many more meals would they have to sell to maintain their current contribution to the organization
Assume I want to become more competitive from a price perspective , and I consider lowering my prices by 15%, and I want to accompany this change with a major advertising campaign, which will cost $15,000. How must my sales change for me to preserve my contribution to the organization?
What percentage of current sales does this represent?
Answer:
A Fictional Fast Food Company
a. Gross marketing contribution per unit:
= $6.80
b. If the company sold 100,000 meals and decided that they wanted to increase the advertising expense by $25,000 to generate more sales, how many more meals would they have to sell to maintain their current contribution to the organization:
= 3,677 (103,677 - 100,000) meals
c. Assume I want to become more competitive from a price perspective , and I consider lowering my prices by 15%, and I want to accompany this change with a major advertising campaign, which will cost $15,000. How must my sales change for me to preserve my contribution to the organization?
My sales must increase by 2,206 meals.
d. This represents about 2.21% increase of the current sales.
Explanation:
1) Data and Calculations:
Cost information for meals:
Food $2.50/meal
Franchisor Royalties $0.70/meal
Variable cost $3.20/meal
Price of each meal $10.00
Contribution $6.80/meal
2) Fixed costs:
Advertising & Promotion $300,000
Rent $100,000
Total fixed costs $400,000
3) Income Statement
Sales Revenue $1,000,000
Variable cost 320,000
Contribution $ 680,000
Total fixed costs 400,000
Net Income $280,000
4) Scenario 1:
= (Fixed costs + $25,000 + $280,000)/Contribution per unit
= $705,000/$6.80
= 103,677 meals
5) Scenario 2:
Reduced selling price = $8.50 ($10 x 0.85)
($400,000 + $15,000 + $280,000)/$6.80
= $695,000/$6.80
= 102,206
6) Percentage change:
= 102,206 -100,000 = 2,206
= 2,206/100,000 * 100
= 2.21%
Salah’s net income for the year ended December 31, Year 2 was $191,000. Information from Salah’s comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $ 506,000 $ 455,400 Paid-in capital in excess of par 954,000 858,400 Retained earnings 694,000 587,400
Answer:
Salah
Cash Dividends during Year 2:
= $84,400
Explanation:
a) Data and Calculations:
Dividends Paid:
Year 1 Retained earnings = $587,400
Year 2 Net Income = 191,000
Year 2 Retained earnings = (694,000)
Dividends paid = $84,400
b) Salah paid dividends worth $84,400. These represent the difference between the beginning retained earnings with the year 2's net income and the year 2's retained earnings. It is a reduction of the retained earnings after adding the net income for the year.
What recommendations would you give to Sundar Pichai, CEO of Google, to compete more effectively against Microsoft? To continue to sustain its competitive advantage
Answer: Optimize more ways in how the search engine can reach people better and solve problems with little or no challenges
Explanation:
Google has to look for ways in how the search engines can reach a wider audience and how they can easily answer people's question without much referrals. Most people get tired when they come online to search for an answer to a question and they are being referred severally to other sites and they end up not getting the desired answer at the end f their search. Google should look for ways in designing their tool to provide answers immediately with little or no bulky referrals.
A company has the following cost information: Units produced and sold 10,000 Direct materials $75,000 Direct labor hours per unit 1.0 Direct labor rate $10 per hour Variable manufacturing overhead 40% of direct labor Fixed manufacturing overhead $25,000 Variable selling and administrative expenses $6 per unit Fixed selling and administrative expenses $20,000 Calculate total period costs using full costing.
Answer:
The total period cost is $105000.
Explanation:
Total period costs (TPC) = Fixed manufacturing overhead (FMO) + (Variable selling and administrative expenses × units sold) + Fixed selling and administrative expenses.
Now insert all the values in the above formula.
Total period costs = $25,000 + ($6 × 10,000) + $20,000
Total period costs = $25,000 + $60,000 + $20,000
therefore, the Total period costs = $105,000
Lucky Lee, a video-game store in New York city, purchases a game machine directly from Taiwan for$30,000. In the U.S., the same machine will probably cost at least $36,000. Pick the most appropriateaccounting action for Lucky Lee:Record the machine at $36,000Record the machine at $30,000Record the machine for [($30,000+$36,000)/2] = $33,000Have the machine examined by an independent appraiser and record it at the appraised value
Answer:
Record the machine at $30,000
Explanation:
Since as we can see that the purchase value of the game machine is $30,000 and the other values are given
So based on the historical cost principle, the machine should be recorded at the purchased cost, acquired cost, original cost
here in the given situation, the machine is actually purchased at $30,000 so the same is to be recorded
Oriole Company Purchased A Depreciable Asset For $837900 On January 1, 2018. The Estimated Salvage Value Is $81000, And The Estimated Total Useful Life is 9 years. The straight-line method is used for depreciation. In 2021, Oriole changed its estimates to a total useful life of 5 years with a salvage value of $143000. What is 2021 depreciation expense?
a. $252300
b. $584100
c. $139650
d. $221300
Answer:
D
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($837900 - $81000) / 9 = $84,100
Depreciation expense from 2018 to the end of 2020 would be $84,100
Accumulated depreciation as at 2020 = $252,300
Book value at the beginning of 2021 = $837, 900 - $252,300 = $585,600
remaining useful life as a result of the revision = 5 - 3 = 2
Depreciation expense under the new revisions =
($585,600 - $143000) / 2 = $221,300
Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling units Management is discussing increasing the price to to cover an increase in fixed expenses of . Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented?
Answer:
The remaining part of the question is:
Round up to the newest whole unit.
OA . 3,572 units
OB. 4,000 units
OC. 3,935 units
OD. 5.269 units
Correct Answer:
OC. 3,935 units
Explanation:
Current sales 2000000 = 4000*500
Less: Variable costs 880000 = 4000*220
Less: Fixed costs 1000000
Current operating income 120000
Fixed costs 1080000 =1000000+80000
Add: Operating income 120000
Required Contribution margin 1200000
Divide by Contribution margin per unit 305 =525-220
Units to be sold 3935
The forecasting technique that pools the opinions of a group of experts or managers is known as: market survey. management coefficients. the expert judgment model. multiple regression. jury of executive opinion.
Answer:
jury of executive opinion.
Explanation:
The forecasting technique that pools the opinions of a group of experts or managers is known as jury of executive opinion.
For example, when XYZ manufacturing company decides to conduct a series of strategic meetings for its forecasting by involving its key employees such as directors, analysts, managers etc to discuss (gathering opinions, ideas, perspectives and views) before reaching a forecasting consensus. This is simply a jury of executive opinion.
On December 1, 2019, Carrie's Day Care receives in advance for an agreement to care for Susan's children for the months of December, January, and February. Carrie's Day Care will make an adjusting entry on December 31, 2019 to:
Answer and Explanation:
Since in the question it is mentioned that the Carrie day care received an advance for an agreement made to care for Susan child for the three months i.e. December, January, and February.
So for this, the unearned revenue is debited for $500 and the same is to be considered
Working note:
Amount of Revenue earned = Advance amount × 1 ÷ (From December to February)
= $1,500 × 1 ÷ 3
= $500
Given an upward sloping aggregate supply curve, which of the following is most likely to occur if the fed pursues restrictive monetary policy?
a. The equilibrium price level and output will both increase.
b. The equilibrium price level and output will both decrease.
c. The equilibrium price level will decrease but output will stay the same.
d. The equilibrium output will decrease but the price level will stay the same.
Answer:
b. The equilibrium price level and output will both decrease.
Explanation:
If the Fed decides to use restrictive monetary policy money supply to the economy will be reduced. Instruments for reducing money supply is by using interest rate, open market operations, and reserve ratio.
When money supply is reduced, aggregate demand will reduce (shift to the left) because people will have less money to spend. The real output will also reduce because there is reduced demand for goods and services.
Attached is a diagram illustrating this. Equilibrium price moves from A to B, and output decreases from Y1 to Y2
A _______ is a document with predefined settings that can be used as a pattern to create a new file.
Answer: a template
Explanation:
Complete the following data taken from the condensed income statements for merchandising Companies A, B, and C.
Company A Company B Company C
Net income $335 $175
Sales 895 530
Gross profit 400 325
Operating expenses 50
Cost of goods sold 570 350
Answer:
Condensed income statements
Company A B C
Sales $970 $895 $530
Cost of goods sold $570 $350 $205
Gross profit $400 $565 $325
Operating expenses $65 $50 $150
Net income $335 $515 $175
Explanation:
Company A B C
Net income $335 ? $175
Sales ? $895 $530
Gross profit $400 ? $325
Operating expenses ? $50 ?
Cost of goods sold $570 $350 ?
Condensed income statements
Company A B C
Sales $970 $895 $530
Less: Cost of goods sold $570 $350 $205
Gross profit $400 $565 $325
Less: Operating expenses $65 $50 $150
Net income $335 $515 $175
To maximize profit, a perfectly competitive firm:_____.
a) should sell the quantity of output that results in a value for total revenue that is equal to total cost.
b) Should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost.
c) should produce the quantity of output that results in the greatest difference between total revenue and total cost.
d) shouls sell thw quantity of output determined by the interaction between the indusrey demand and supply.
Answer:
D
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Profit is maximised where marginal cost equals marginal revenue.
Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level
Answer:
.07
Explanation:
Calculation for the increase in service level
Based on the information given we were told that the newspaper stand cost the amount of $0.40 and sell for the amount of $0.80 which means that in a situation where the stand owner find an outlet that provide a salvage value amount of $0.10 the increase in service level will be .07 calculated as ($0.80-$0.10)
Therefore what would be the increase in service level will be .07
The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents $10,019
Accounts receivable 78,422
Merchandise inventories 68,362
Prepaid expenses 5700
Accounts payable $16,550
Notes payable 94,638
Other current liabilities 11,100
If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is:________. (Use 365 days a year.)
A. 159.4 days
B. 79.7 days
C. 41.3 days
D. 47.4 days
E. 69.5 days
Answer:the firm's days' sales uncollected for the year= 47.4 days---d
Explanation:
The Days’ Sales Uncollected, a liquidity ratio that gives an idea of average collection period which is an estimation for the number of days the amount receivables is expected to be collected.
it depends on the 1) Account receivables and 2) Net sales .
the formulae is given below as
Days sales uncollectible = Account receivables / Net Sales x 365
=( $78,422/$603,500) x 365 =0.12994 x 365= 47.4 days
A registered investment company whose share price fluctuates independently of its net asset value is most likely
Answer:
Closed-End Fund
Explanation:
Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $27,000, would be replaced by a new machine. The new machine would be purchased for $432,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $149,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):
Answer: 19.01%
Explanation:
The simple rate of return is the Income that came from an investment divided by the cost of the investment.
It is therefore expressed by;
Simple rate of return = Net Income / Initial investment
Initial investment
= Price of new machine - salvage value of old machine
= 432,000 - 27,000
= $405,000
Net Income
= Income - depreciation of new machine
= 149,000 - (432,000/6)
= $77,000
Simple rate of return
= 77,000/405,000
= 19.01%
Answer:
17.82%
Explanation:
As we know that:
Simple Rate Of Return = Net Operating Income / Initial Investment
Here
Initial Investment is $432,000
Net Operating Income = Annual Cost Savings - Annual Depreciation
Here
Annual Cost Savings are $149,000
Annual Depreciation = $432,000/6 = $72,000
By putting values, we have:
Net Operating Income = $149,000 - $72,000 = $77,000
Now by putting values in the above bold equation:
Net Operating Income = $77,000 / 432,000 = 17.82%
Morgan Company issues 8%, 20-year bonds with a par value of $740,000 that pay interest semi-annually. The current market rate is 7%. The amount of interest owed to the bondholders for each semiannual interest payment is:_________.
Answer:
The interest amount is $29600.
Explanation:
Below are the following given values:
The par value of bonds that Morgan company issues = $740000
Interest paid = semi annually
Current interest rate = 7%
Now we have to find the total amount of interest at 8% that is compounded semiannually.
Below is the calculation of the interest amount.
Amount of interest for each semi-annual period: = face value × Coupon rate × 0.5
Here we multiply with 0.5 because interest is semi-annually.
Total interest = $740,000 × 8% × 0.5
Total interest = $29,600
Suppose a corporation issued a 20-year annual, 7 percent bond, 10 years ago. The bond is currently selling for 92 percent of its face value, or $920. What is the corporation’s cost of debt?
Answer:
Cost of debt = 8.13 %
Explanation:
The cost of the debt would be equal to the yield on the bond.
The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond
The yield on the bond can be determined as follows using the formula below:
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- annual coupon
F- Face Value
P- Current Price
n- years to maturity
YTM-?, C- 7%× 1000 =70, Face Value - 1,000, P-920, n- 10
YTM = (70 + (1000-920)/10) ÷ ( 1/2× (1000 + 920) )
YTM = 0.08125 × 100 = 8.13 %
Yield to Maturity =8.13 %
Cost of debt = 8.13 %
You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the
overall price level. Before taxes were paid, you experienced:_______.
a. both a nominal gain and a real gain, and you paid taxes on the nominal gain.
b. both a nominal gain and a real gain, and you paid taxes only on the real gain.
c. a nominal gain, but no real gain, and you paid no taxes on the transaction.
d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.
Answer:
d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.
Explanation:
Nominal gain: In business, the term "nominal gain" is described as the increase or hike in the price or cost of an asset as per the "federal tax code" and is also denoted as "nominal amount" and is considered as non-adjustable for inflation. However, when a specific product or asset or stock is being sold more than its "actual price" or above its "purchase price" then a gain or profit is noted and hence is taxed.
In the question above, the correct answer is option D.
"An NMS stock is current quoted at $16.10 Bid - $16.30 Ask. A customer wishes to place an order to buy 1,000 shares of the stock at $16.111. The registered representative should:"
Answer:
"An NMS stock is current quoted at $16.10 Bid - $16.30 Ask. A customer wishes to place an order to buy 1,000 shares of the stock at $16.111. The registered representative should:"
buy the 1,000 shares of NMS stock when the price is $16.111 or below.
Explanation:
This order by the customer is a limit order. It indicates the price at which the registered representative should buy the stock of NMS. A limit order means that the order can only be filled at the specific price or better (below the limit). It is not like a stop order which triggers at the specified price and will then be filled at the prevailing market price, whether it is below or above the stated price.
Preferred stockholders have priority over common stockholders with respect to dividends, because dividends must be paid on preferred stock before they can be paid on common stock. However, preferred and common stockholders normally have equal priority with respect to liquidating proceeds in the event of bankruptcy.A. TrueB. False
Answer:
B. False
Explanation:
Preference Shareholders are entitled to receive their return on capital before the ordinary shareholders when when a company is wound - up or liquidated.
Which of the following is a true statement about an auditor’s responsibility regarding consideration of fraud in a financial statement audit?
A. The auditor should consider the client’s internal control and plan and perform the audit to provide absolute assurance of detecting all material mis-statements.
B.The auditor should assess the risk that errors may cause the financial statements to contain any mis-statements and determine whether the necessary controls are prescribed and are being followed satisfactorily.
C.The auditor should consider the types of mis-statements that could occur and perform tests on 100% of the information subject to misstatement.
D.The auditor should assess the risks of material mis-statement due to fraud.
Answer:
D. The auditor should assess the risks of material mis-statement due to fraud.
Explanation:
At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud
Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement
Communication is essential for success in today's world for young professional who wants to appear literate, skillful, and effective A. Spoken B. Expert-Driven C. Written D. Charismatic
Answer:
Communication is essential for success in today's world for young professional is discussed below in full details.
Explanation:
Communication is an indispensable element of every individual and organization. Powerful communication is an indispensable element of organizational and Individual progress whether it is at the personal, intra-group, organizational, or external levels.
Bonding between people and their consists of the exchange of information and understanding between portion and people in an organization.
Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contribution in the form of a loan to the company. Which of the following is true?
A) Brian can withdraw capital advances from the partnership
B) Jim and Brian can prevent Kirk from withdrawing advances from the partnership.
C) Kirk and Brian can prevent Jim from withdrawing advances from the partnership.
D) Jim can withdraw capital advances from the partnership.
Answer:
B)
Explanation:
In this specific scenario, the term that is true is that Jim and Brian can legally prevent Kirk from withdrawing advances from the partnership. This is because all three of them entered into a partnership with equal contributions meaning that they all own the same percentage of the company and must all agree on things before they are done. Even though Kirk provided an additional contribution, this was a loan which will be paid back eventually but does not give kirk any extra power in the company and must discuss decisions with Brian and Jim before it can be done.
you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering
Answer: D. I, II, and III
Explanation:
If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.
You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.
Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.