Answer:B
Explanation:
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $10,600. On September 9, the customer unexpectedly pays the $10,600 balance. Record the cash collection on September 9
Answer:
1. Debit Accounts recievable $10,600
Credit Allowance for uncollectable amounts $10,600.
2. Debit Cash $10,600
Credit Accounts receivable $10,600
Explanation:
Preparation of the journal entries to Record the cash collection on September 9.
Based on the information given the appropriate journal entries to Record the cash collection on September 9 will be:
September 9
1. Debit Accounts recievable $10,600
Credit Allowance for uncollectable amounts $10,600
2. Debit Cash $10,600
Credit Accounts receivable $10,600
The following Information is avallable for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials Inventory Office supplies expense $ 4100 5,600 4,600 2,600 The amount of raw materials used in production for the year is: __________ a) $5.100 b) $8,300 c) $5,700 d) $5,600. e) $9,700
Answer:
a. $5,100
Explanation:
Raw materials used in production = Beginning raw materials inventory + Raw materials purchases - Ending raw materials inventory
Raw materials used in production = $4100 + $5,600 - $4,600
Raw materials used in production = $5,100
So, the amount of raw materials used in production for the year is $5,100.
On January 1, Year 1, Jing Company purchased office equipment that cost $15,200 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,300. The equipment had a five-year useful life and a $5,700 expected salvage value. Assume that Jing Company earned $17,400 cash revenue and incurred $11,000 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $8,900. What is the company's net income (loss) for Year 3?
a. $4,752 and $12,672
b. $2,200 and $12,760
c. $2,851 and $16,151
d. $0 and $13,300
Answer:
$3,120
Explanation:
First and foremost, annual depreciation expense is determined using the below straight-line method formula:
annual depreciation=total cost of equipment-salvage value/useful life
total cost of equipment=purchase price+ transportation cost
total cost of equipment=$15,200+$1,300
total cost of equipment=$16,500
salvage value=$5,700
useful life =5 years
annual depreciation=($16,500-$5,700)/5
annual depreciation=$2,160
net income=cash revenue-cash expenses-annual depreciation+profit/(loss) on disposal
profit or(loss)=sales proceeds-book value
book value=cost-accumulated depreciation for 3 years
book value=$16,500-($2160*3)=$10,020
profit/(loss) on disposal=$8,900-$10,020=-$1,120
net income= $17,400-$11,000-$2,160-$1,120
net income=$3,120
A collateralized debt obligation (CDO) bundles house payments and creates safe, okay, and risky investment vehildes. Group of answer choices True False
Answer:
The answer is "True".
Explanation:
The CDO is a complicated support materials instrument that is funded and sold to investors with a pool of credit as well as other assets. A CDO is a special type of derivative since its value was generated from another subordinated asset, as this is mentioned in the title. This guaranteed outstanding debt combines repayments from the home and produces safe, all legal, and hazardous financial instruments.
Suppose that you buy a two-year 7.4% bond at its face value. a-1. What will be your total nominal return over the two years if inflation is 2.4% in the first year and 4.4% in the second?
Answer: 15.35%
Explanation:
The total nominal return over the two years if inflation is 2.4% in the first year and 4.4% in the second year will be calculated thus:
= (1+Interest rate)² -1
= (1 + 7.4%) - 1
= (1 + 0.074)² - 1
= 1.074² - 1
= 1.153476 - 1
= 0.153476
= 15.35% over the two years
A firm uses a continuous review (Q) inventory system. Weekly demand for a product is normally distributed with a mean of 120 units and a standard deviation of 10 units. Lead time is constant at 4 weeks. The company reordered when 506 units of the product remained. About what cycle-service level (i.e., service level over the lead time) were they trying to maintain?
Answer: 90.32%
Explanation:
Weekly demand (d) = 120
Standard deviation = 10
Lead time (l) = 4
Reorder point = 506
The reorder point is calculated as:
506 = 120 × 4 + Z × 10 × ✓4
Solving for Z will give us 1.3
Then, we check this in the z table which will give us p = 0.9032
Therefore, the service level is 90.32%.
Corn Dog Corp expects net income next year to be $609,000. Inventory and accounts receivable will have to be increased by $302,000 to accommodate this sales level. Corn Dog will pay dividends of $403,000. How much external financing will Corn Dog need assuming no organically generated increase in liabilities
Answer:
$96,000
Explanation:
Increase in current assets = $302,000
Retained earnings = Net income - Dividends
Retained earnings = $609,000 - $403,000
Retained earnings = $206,000
External financing needed = Increase in current assets - Retained earnings
External financing needed = $302,000 - $206,000
External financing needed = $96,000
McoLawn Ltd manufactures a single product, an ecologically designed electronic lawn-mower, which they sell for £40. The variable costs of the lawn-mower are as follows: Fixed costs are £140,000. McoLawn Ltd. have budgeted profits for the coming year at £120,000. How many lawn-mowers must McoLawn Ltd. sell in order to reach budgeted profit levels? Group of answer choices
Answer: 20,000 lawn mowers
Explanation:
The formula for calculating the number of lawn mowers needed to reached the budgeted profit levels is:
= (Fixed costs + Budgeted profit) / Contribution margin
Contribution margin = Selling price - Variable cost
= 40 - (14 + 8 + 5)
= 40 - 27
= $13
Number of lawn-mowers required:
= (140,000 + 120,000) / 13
= 20,000 lawn mowers
Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
a. True
b. False
Answer:
A) True
Explanation:
Ethical learning can be regarded as educational proposal that has the purpose of preparing students as regards their future working life , through rendering of help to acquire skills that will give them enablement to perform their professions with responsibility as well as autonomy.
Business ethics can be regarded as study of needed business policies as well as business practices. Subject needed to learn could involves could be corporate social responsibility,corporate governance and others. It should be noted that Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
The following information is given about two fixed coupon bonds from Company A and Company B, both of which have several years left until maturity. Both bonds have a par value of $1,000. Based on this information, which of the following is most accurate?
Company A Company B
Coupon = 4% Coupon = 8%
Yield = 6% Yield = 6%
A. Company A’s bond is priced higher than Company B’s and Company B’s bond is traded at a premium
B. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a premium
C. Company A’s bond is priced higher than Company B’s and Company B’s bond is traded at a discount
D. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a discount
Answer: B. Company A’s bond is priced lower than Company B’s and Company B’s bond is traded at a premium
Explanation:
Discount bond ⇒ Bond coupon rate is less than yield which leads to bond having a lower than par price.
Premium bond ⇒ Bond coupon rate is more than yield which leads to bond having higher than par price.
Company A therefore has a discount bond that has a low price compared to Company B which has a premium bond which means that its price is relatively high.
Company B's bond is therefore priced higher than Company A's bond.
1. Offering a credit customer a discount after the sale has occurred is a way to?
Answer:
hope it helps you:)
Explanation:
god blessed
A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield
Answer:
5.52%
Explanation:
Calculation to determine the current yield
Current yield = ($26.00 × 2)/$941.35
Current yield=$52/$941.35
Current yield= .0552*100
Current yield= 5.52%
Therefore the Current yield is 5.52%
If ABC’s sales are $1,000,000, while accounts receivable is $100,000, inventory is $45,000, and fixed assets are $132,000, what is ABC’s fixed asset turnover?
Answer:
Fixed asset turnover= 7.58
Explanation:
Giving the following information:
Sales revenue= $1,000,000
Fixed assets= $132,000
To calculate the fixed asset turnover, we need to use the following formula:
Fixed asset turnover= sales revenue / fixed assests
Fixed asset turnover= 1,000,000 / 132,000
Fixed asset turnover= 7.58
Risk assessment is an evaluation of the PPS supported by a number of analysis methodologies, including :__________.
Answer:
Threat analysis Consequence analysis Event and Fault tree analyses Vulnerability analysisExplanation:
Threat Analysis
Involves the identification of areas of the system in question that are vulnerable to risk and then identifying what those risks are.
Consequence Analysis
With consequence analysis, the possible effects of the risks identified will be analyzed to see how much damage they can cause.
Event and Fault tree analyses
Here a tree is used to show all of the possible effects of a risky activity failing. It is used to find out the cause of the worst case scenario.
Vulnerability analysis
As the term implies, vulnerability analysis is done to see which parts of a system are at risk and how vulnerable they are to this risk and then ranking these vulnerabilities so that they can be prioritized.
Slaughter Industries just signed a sales contract with a new customer. What is this contract worth as of the end of year 4 if the following payments will be received and the firm earns 6 percent on its savings
Answer:
$489,512.15
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
We are supposed to determine the present value
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 84,000
Cash flow in year 2 = 113,000
Cash flow in year 3 = 125,000
Cash flow in year 4 = 130,000
I = 6%
PV = 387,739.47
387,739.47(1.06)^4 = $489,512.15
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The quantity demanded for money is higher in Japan than in the United States because: telecommunications and information technology is more advanced in the United States than in Japan. Japanese interest rates are higher than those in the United States. Japanese interest rates are lower than those in the United States. Japanese consumers use credit cards more than people in the United States.
Answer:
Japanese interest rates are lower than those in the United States.
Explanation:
The demand for money (the decision to hold money) is inversely related to interest rate. if interest rate is high, individuals would prefer to hold bonds and the demand for money would fall. if interest rate is low, individuals would prefer to hold money.
the opportunity cost of holding money is what would have been earned if money was invested. if interest rate is low, individuals would prefer to hold more money because the amount that would be earned if money was invested in bonds would be low, so the opportunity cost of holding money would be low
If the demand for money is higher in Japan than in the United States, it is because interest rates are lower in Japan
What was the result in Riley v. Iron Gate Self Storage, the case in which Larry Riley rented a self-storage unit from Iron Gate with an agreement limiting the value of stored contents to $5,000 and a corresponding liability limit of $5,000
Answer:
Larry Riley v. Iron Gate Self Storage
The result in the above-mentioned case was that judgment was entered in favor of Iron Gate.
Explanation:
The known facts are that after missing payments, Iron Gate auctioned Riley's storage unit items off, causing Riley to sue Iron Gate, in which he alleged to have suffered a $1.5 million in damages, whereas the storage unit was only allowed to hold $5,000. In its ruling, the court determined that self-storage facilities are not an essential or necessary public service. Therefore, it dismissed any procedural unconscionability. Thus, judgment was entered in favor of Iron Gate.
During 2020, Morefield Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,700,000. The company had the following debt outstanding at December 31, 2020:
1. 10%, 5-year note to finance construction of various assets, dated January 1,
2020, with interest payable annually on January 1 $6,300,000
2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable
annually on December 31 7,000,000
3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually
on January 1 3,500,000
Instructions:
Compute the amounts of each of the following (show computations).
1. Avoidable interest.
2. Total interest to be capitalized during 2020.
Answer:
1. $1,015,000
2. $1,015,000
Explanation:
1. Computation for the Avoidable interest.
First step is to Compute the weighted average interest rate:
Principal Interest
12% ten-year bonds$ 7,000,000 $840,000
9% 3-year note $3,500,000 $315,000
Total $10,500,000 $1,155,000
Weighted average interest rate = $1,155,000 ÷ $10,500,000
Weighted average interest rate= 11%
Now let compute the Avoidable Interest
Weighted Average Accumulated Expenditures *Applicable interest rate = AVOIDABLE INTEREST
$6,300,000 *.10 = $630,000
$3,500,000 *.11= $385,000
Total $9,800,000 $1,015,000
Therefore the Avoidable Interest is $1,015,000
2. Computation for Total interest to be capitalized during 2020
2020 Actual interest cost
Construction note $6,300,000 × .10 =$630,000
12% ten-year bonds, $7,000,000 × .12 =$840,000
9% three-year note, $3,500,000 × .09=$315,000
Total $1,785,000
Therefore Total interest to be capitalized during 2020 will be $1,015,000 which is the LESSER of
$1,785,000
Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current profit margin is 10% and you expect it to remain constant.
Answer: $37.5 million
Explanation:
The next year's net income for XYZ will be calculated as follows:
Current sales = $300 million
Current Profit margin = 10%
Sales Growth rate = 25%
The next year's sales will be:
= Current Year's Sales × (1 + Sales Growth rate)
= $300 million × (1 + 0.25)
= $300 million × 1.25
= $375 million
Next Year's Net Income will then be:
= $375 million × 10%
= $37.5 million
es $ 160,000 Accounts receivable increase $ 10,000 Expenses: Inventory decrease 16,000 Cost of goods sold 100,000 Salaries payable increase 1,000 Salaries expense 24,000 Depreciation expense 12,000 Net income $ 24,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Statement of Cash Flows
Cash from operating activities
Net Income $24,000
Adjustments to reconcile net income with
net cash flow from operating activities:
Depreciation 12,000
Increase in accounts receivable (10,000)
Decrease in inventory 16,000
Salaries payable increase 1,000 $19,000
Net cash flow : Operating activities $43,000
Linda believes that employees can view work as being as natural as rest or play, and therefore the average person can learn to accept, and even seek, responsibility. Linda's belief is best described by ______________.
Answer: Theory Y
Explanation:
Douglas McGregor came up with this theory of labor motivation that proposes that people are motivated internally to work hard and so need little push to actually work.
They are like this because they have come to view work as being a natural occurrence just like rest or play. Because it is now natural to them, they are able to learn to accept and even seek responsibility. Managers prefer such workers.
Journ Co. purchased short-term investments in available-for-sale securities at a cost of $52,000 on November 25, 2017. At December 31, 2017, these securities had a fair value of $48,800. This is the first and only time the company has purchased such securities.
Required:
a. Prepare the November 25, 2017, entry to record the purchase of securities.
b. Prepare the December 31, 2017, year-end adjusting entry for the securities’ portfolio.
c. For each account in the entry for part 2, explain how it is reported in financial statements.
d. Prepare the April 6, 2018, entry when Journ sells one-half of these securities for $26,000.
Answer:
Journ Co.
Journal Entries:
a. November 25, 2017:
Debit Investments in available for sale securities $52,000
Credit Cash $52,000
To record the purchase of available for sale securities.
b.
December 31, 2017:
Debit Unrealized loss on available for sale securities $3,200
Credit Investments in available for sale securities $3,200
To record the adjusting entry for the securities.
c. The unrealized loss on available for sale securities of $3,200 ($52,000 - $48,800) will be reported in the income statement as unrealized loss in the OCI section. In the balance sheet, the investment will be reported at $48,800. This adjustment does not affect the cash flows statement.
d.
April 6, 2018:
Debit Cash $26,000
Credit Investments in available for sale securities $26,000
To record the sale of one-half of the securities.
Explanation:
a) Data and Analysis:
November 25, 2017: Investments in available for sale securities $52,000 Cash $52,000
December 31, 2017: Unrealized loss on available for sale $3,200 Investments in available for sale securities $3,200
April 6, 2018: Cash $26,000 Investments in available for sale securities $26,000
DEFINITION TERM 1. Investments in debt securities that are not held-to-maturity or trading. 2. Investments in debt securities that are actively traded. 3. Investments in debt securities intended to be held until maturity. 4. Investments in equity securities with significant influence.
Answer:
1. Available-for-sale securities.
2. Trading.
3. Held-to-maturity.
4. Significant influence.
Explanation:
An investment can be defined as the acquisition of fixed capital assets, items or goods for the sole purpose of generating income in the future. The goal of all investors is to purchase assets or properties that would appreciate over time i.e an increase the value of the assets compared to when it was acquired.
The various types of an investment include the following;
1. Available-for-sale securities: investments in debt securities that are not held-to-maturity or trading.
2. Trading: investments in debt securities that are actively traded. This type of debt securities are usually reported as current assets.
3. Held-to-maturity: investments in debt securities intended to be held until maturity. Depending on the maturity of the debt securities, held-to-maturity securities are reported in long-term or current assets.
4. Significant influence: investments in equity securities with significant influence.
Which of the following methods of accounting for investments is appropriate when the investor has significant influence over the investee?
a. cost method.
b. mark to market method.
c. equity method.
d. lower of cost or market method.
Answer:
The answer is "Option c".
Explanation:
The equity method is indeed the conventional technique used whenever an investor, a firm, has a massive effect on some other asset manager.
It is the method used by a company to document its money generated through investment in another company.
The investor should record its profits or losses following its ownership percentage. It regularly changes the value of the property to a balance sheet of even an investor.
Assume that beer is an inferior good. If the price of beer falls, then the substitution effect results in the person buying ________ of the good and the income effect results in the person buying ________ of the good.
Answer:
more
less
Explanation:
Inferior goods are goods whose demand falls when income rises and increases when income falls.
When the price of beer changes, there are two effects that determine the quantity demanded. They are :
1. the substitution effect
2. the income effect
The substitution effect looks at the change in price of a good relative to other goods. When the price of beer decreases, it becomes cheaper relative to other goods. Thus, the demand for it increases.
The income effect looks at how a change in price affects real disposable income. When price of beer reduces, disposable income increases. Because beer is an inferior good, it would lead to a decrease in the demand for beer
Suppose we have the following information concerning the printed magazine and digital magazine subscription markets:
Printed Magazine Subscription Price0=$20 Digital Magazine Subscription Quantity0=216 Printed Magazine Subscription
Price1=$13.40 Digital Magazine Subscription Quantity1=208 Question:
What is the cross-price elasticity of demand between printed and digital magazine subscriptions?
Answer:
Cross-price elasticity of demand between printed and digital magazine subscriptions is 8.91.
Explanation:
Percentage change in price of Printed Magazine Subscription = ((Printed Magazine Subscription Price1 - Printed Magazine Subscription Price0) / Printed Magazine Subscription Price0) * 100 = (($13.40 - $20) / $20) * 100 = -33%
Percentage change in quantity of Digital Magazine Subscription Quantity = ((Digital Magazine Subscription Quantity1 - Digital Magazine Subscription Quantity0) / Digital Magazine Subscription Quantity0) * 100 = ((208 - 216) / 216) * 100 = -3.7037037037037%
Cross-price elasticity of demand between printed and digital magazine subscriptions = Percentage change in price of Printed Magazine Subscription / Percentage change in quantity of Digital Magazine Subscription Quantity = -33% / -3.7037037037037% = 8.91
Note: The relationship between printed and digital magazine subscriptions is that they are substitutes because the cross-price elasticity between them is positive. That is, an increase in the price of printed digital magazine makes consumer to switch to and buy more of digital magazine which is a substitute.
LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividend and incurs 6.19% flotation costs. What is the cost of new preferred stock financing
Answer:
$10.66
Explanation:
Calculation to determine the cost of new preferred stock financing
Cost of new preferred stock financing=(100*10%)/(100*(1-0.0619))
Cost of new preferred stock financing=10/(100*(1-0.0619))
Cost of new preferred stock financing=10/(100*0.9381)
Cost of new preferred stock financing=10/93.81
Cost of new preferred stock financing=$10.66
Therefore the cost of new preferred stock financing is $10.66
A cash register tape shows cash sales of $3180 and sales taxes of $210. The journal entry to record this information is
Answer:
Debit cash $3,390
Credit sales revenue $210
Cales tax payable $3,180
Explanation:
Preparation of the journal entry to record the information given.
Journal entry
Debit cash $3,390
($3,180+$210)
Credit sales revenue $210
Cales tax payable $3,180
Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 100,000 shares of preferred 2% stock, $50 par and 650,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations:
Feb. 5. Issued 700,000 shares of common stock at par for cash.
Feb. 5. Issued 1,200 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Apr. 9. Issued 40,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $120,000, $280,000, and $80.000, respectively.
June 14. Issued 25,000 shares of preferred stock at $82 for cash.
Journalize the transactions.
Answer:Please find answers below
Explanation:
Being the issue of 700,000 shares of common stock at par for cash
Date Accounts and explanation Debit Credit
5th Feb Cash (700,000 shares × $25) $17,500,000
To Common Stock $17,500,000
Being the issue of 1200 shares of common stock at par for legal fees
Date Accounts and explanation Debit Credit
5th Feb Legal Fees (1200 shares × $25) $30,000
To Common Stock $30,000
Being the issue of the common stock in exchange of assets
Date Accounts and explanation Debit Credit
9th Apr Land $120,000
Building $280,000
Equipment $80,000
To Common Stock (40,000 shares × $25) $1,000,000
To Paid in capital excess of par value
(error noticed as the debit and credit balance do not tall after computation the amount of land, building and equipment $120,000, $280,000, and $80.000,with respect to the common stock of 40,000 shares × $25)
Being the issuance of the preferred stock.
Date Accounts and explanation Debit Credit
14th Jun Cash (25,000 shares × $82) $2,050,000
To preferred Stock (25,000 shares × $50) $1,250,000
To Paid in capital excess of par value $800,000
A company receives a 10%, 90-day note for $2,700. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
Interest amount = $67.5
Explanation:
Use the below formula to find the interest amount:
Interest amount = The value of note x Interest rate x (90 / 360)
Given value of note = $2700
Interest rate = 10%
Time = 90/360
Now plug the value in the above formula and solve for the interest due:
Interest amount = The value of note x Interest rate x (90 / 360)
Interest amount = 2700 x 10% x (90 / 360)
Interest amount = $67.5