Answer and Explanation:
The journal entry is shown below;
Cash $8,820
Purchases discounts (2% of $9,000) $180
To Accounts payable $9,000
(Being cash received is recorded)
here cash is debited as it increased the assets, discount is debited and credited the account payable as it also increased the liability
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: Acquired $30,000 cash from the issue of common stock. Borrowed $40,000 cash from National Bank. Earned cash revenues of $48,000 for performing services. Paid cash expenses of $25,000. Paid a $1,000 cash dividend to the stockholders. Acquired an additional $20,000 cash from the issue of common stock. Paid $10,000 cash to reduce the principal balance of the bank note. Paid $53,000 cash to purchase land. Determined that the market value of the land is $75,000.
Answer:
The accounting equation holds as follows:
Assets = Liabilities + Shareholders' Equity = $102,000
Explanation:
Note: This question not complete as the requirement is omitted. The requirement is therefore provided to complete the question before answering the question as follows:
Required:
Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA).
The explanation of the answer is now provided as follows:
Note: See the attached excel file for the the horizontal statements in which the transactions are recorded.
From the attached excel file, we have:
Assets = Cash + Land = $49,000 + $53,000 = $102,000
Liabilities = Notes Payable = $30,000
Shareholders' Equity = Common Stock + Retained Earnings = $50,000 + $22,000 = $72,000
Liabilities + Shareholders' Equity = $30,000 + $72,000 = $102,000
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Shareholders' Equity = $102,000
Also note that no figure is recorded for "Determined that the market value of the land is $75,000" because it does affect the horizontal statement since an asset must be recorded at the historical cost.
In the U.S. we fully expense in our financial statements research and development outlays as they are incurred (not necessarily the case for international financial statements). This can be seen as an example of:
Answer:
Noise being introduced into financial statements via rigid accounting rules
Explanation:
Noise being introduced into financial statements via rigid accounting rules.
The international financial statements doesn't am expense research and development as they occur
The distinction between a current asset and other assets: Multiple Choice is based on the ability to determine the current fair value of the asset. is based on when the asset is expected to be converted to cash, or used to benefit the entity. is based on how long the asset has been owned. is based on amounts that will be paid to other entities within a year.
Answer:
is based on when the asset is expected to be converted to cash, or used to benefit the entity.
Explanation:
There are mainly three types of assets
1. The current asset is the asset that converted into cash within 12 months
2. The fixed asset is the asset that remains fixed like land, building
3 The intangible asset is the asset that cannot be seen or touched like intellectual property such as goodwill, patent
So here the distinction is to be made with respect to the convertibility to cash and the benefit provided to the entity
The Texas Constitution mandates that money spent on debt service cannot exceed more than what percentage of state revenue
Answer:
5 percent
Explanation:
The Texas Constitution mandates that money spent on debt service cannot exceed more than 5 percent. When the state of Texas was established, Texas had very little debt. So, as a result, the Constitution was created and it states that it can not exceed 5%. Therefore, the answer is 5 percent.
1. Calculate the current ratio and the acid-test ratio for Queen's Line. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)'
Answer:
0.31
0.27
Explanation:
Here is the full question used in answering this question
Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: (Enter your answers in millions, not in dollars.)
($ in ,millions)
Current assets:
Cash and cash equivalents $307
Current investments 82
Net receivables 218
Inventory 122
Other current assets 138
Total current assets $867
Current liabilities:
Accounts payable $1,165
Short-term debt 709
Other current liabilities 904
Total current liabilities $2,778
Required:
Calculate the current ratio and the acid-test ratio for Queen's Line
Current ratio is an example of a liquidity ratio. Liquidity ratios measure a firm's ability to honour its short terms obligations. the higher the current ratio, the higher the firm's liquidity and its ability to meet short term obligations
Current ratio = current asset /current liability
867 / 2778 = 0.31
Acid test ratio also known as the quick ratio measure the ability of short term assets to meet current liabilities
Acid test ratio = (current asset - inventory) / current liabilities
(867 - 122) / 2778 = 0.27
when a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far about the price of competition, the company is using the process of
Answer:
cost proximity.
Explanation:
Cost proximity is a strategy that some organizations can follow to conquer the market. The strategy consists of offering differentiated products with more added benefits than competitors that use a mass product strategy, but without the price of their differentiated product being much higher than those of competitors. With this, the company is able to reach more consumers who perceive greater added benefit from purchasing a differentiated product at a price not much higher than a standard product.
Companies that use this strategy use a configuration of their value chain that allows for gains of scale that allow them to pass on a better price to the consumer without loss of profitability
Which money market security is defined as short-term funds transferred between financial institutions, often for no more than one day
Answer: Federal Funds
Explanation:
The Fed requires that some financial institutions keep a certain proportion of their deposits with the Fed called a reserve requirement. Sometimes, on a daily basis, some financial institutions may not be able to meet up with this requirement whilst other exceed it.
When this happens, those with the excess can return lend those who don't have enough. This is called Federal funds and usually lasts for no more than one day.
Mr. Capadona would like to purchase a Medicare Advantage (MA) plan and a Medigap plan to pick up costs not covered by that plan. What should you tell him
Answer: It is illegal for you to sell Mr. Capadona a Medigap plan if he is enrolled in an MA plan, and besides, Medigap only works with Original Medicare.
Explanation:
Since we've the information that Mr Capadona would like to purchase a Medicare Advantage (MA) plan and a Medigap plan to pick up costs not covered by that plan.
Based on the above, he should be told that it is illegal for you to sell Mr. Capadona a Medigap plan if he is enrolled in an MA plan, and besides, Medigap only works with Original Medicare.
Intermediaries in indirect channels of distribution: a. Often perform functions that producers cannot perform efficiently by themselves. b. Do not provide additional convenience to consumers c. Increase the need for producers to make large investments in distribution facilities and personnel. d. Make it necessary for producers to carry more inventories. e. None of these alternatives is correct
Answer:
A. Often perform functions that producers cannot perform efficiently by themselves.
Explanation
indirect distribution channel of distribution can be regarded as one that depends on intermediaries in order to carry out most or all of their functions of distribution , they are regarded as wholesaler. indirect distribution can also be explained as selling of wholesale producys to the agents/retailers in order for them to distribute the product so it can get to consumers. It should be that Intermediaries in indirect channels of distribution Often perform functions that producers cannot perform efficiently by themselves.
On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800. B. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360. D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. E. Debit Insurance Expense, $1,440; credit Prepaid Insurance, $1,440.
Answer:
D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360
Explanation:
The journal entry is shown below:
Insurance expense Dr $360 ($1,800 ÷ 5 years)
To Prepaid insurance $360
(being insurance expense is recorded)
Here insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing 8,000 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $1.80 per share. Given this information, the best journal entry for E. Corp. to record for this transaction is
Answer: C.Legal Expense 14,400 Common Stock 8,000 Paid-in Capital in Excess of Par - Common 6,400
Explanation:
With the information given in the question, the journal entry for E. Corp. to record for this transaction will go thus:
Debit Legal expense $14400
Credit Common stock $8000
Credit Paid-in Capital in Excess of Par - Common $6400
Note that Paid-in Capital in Excess of Par - Common was calculated as:
= 8000(1.80 - 1.00)
= 6400
Name two things other than the 5 C’s that can affect pricing
Issuing a pre-approval letter means that borrowers have completed the loan application and provided their debt, total income, and savings information, and the _______ has verified this information.
Answer: underwriter
Explanation:
The loan underwriter is responsible for verifying the information provided by a borrower. They will then use this information to assess the risk that the lender is going to incur if they lend money to the borrower.
When this is done, a pre-approval letter is issued which shows the amount that the lender is willing to lend to the borrower.
Grace is waiting in her office to meet Joseph, the new sales representative for Powerslam shoe company. Joseph arrives promptly and Grace notices he is well-dressed, sounds intelligent, and has a firm handshake. Joseph immediately inquires about what shoe styles would sell best in Grace's store and how many pairs she is interested in ordering. He listens attentively to her reply. What key element in Joe's sales approach is lacking
Answer : Building rappport
Explanation:
Mercedes has decided that she wants to be an electrician. She discovers that her local power company has a program where she can get on-the-job experience and go to school. This will eventually get her the background she needs to be an electrician. What kind of program is this?
A.
gap year
B.
apprenticeship
C.
advanced degree
D.
certificate program
Answer:
B
Explanation:
An apprenticeship lets you work and go to school while teaching you how to correctly do the job.
Ed was working on a custom-made workbench for a customer. The job, TB0414, was begun in November. At the end of November, the job cost sheet for TB0414 showed direct materials of $215, direct labor of 14 hours at $18 per hour, and overhead of 50% of direct labor cost. During December, Ed’s time ticket showed 15 hours on Job TB0414, 25 hours on Job TB0614, 10 hours of maintenance on the lathe, and 40 hours on a new job, DR1014. What is the total amount of overhead applied to TBO414?
Answer:
Allocated MOH= $261
Explanation:
Giving the following information:
Predetermined overhead rate= 50% of direct labor cost
To allocate overhead to Job TB0414, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
First, we need to determine the total labor cost:
TB0414:
Direct labor hours= 14 + 15 = 29
Total direct labor cost= 29*18= $522
Now, the allocated overhead:
Allocated MOH= 522*0.5
Allocated MOH= $261
Nancy works in a factory that produces dolls and other toys. To improve productivity, Nancy's manager broke down each job into its component tasks, determined the best way to perform each task, and specified the output to be achieved by each worker performing the task. As a result, Nancy is expected to add arms and legs to 50 dolls per day. She is paid $2.50 per doll, but if she exceeds 50 dolls in a day, she receives an additional $1.50 per doll. This scenario relates to
Answer:
the classical theory of motivation.
Explanation:
the three classical theory of motivation are :
Maslow's hierarchy of needs theory Herzberg's Two factor theoryTheory X and Theory Y.Theory X ad Y are theories about workers motivation and management. they were developed by Douglas McGregor in the 1960s in his book the human side of enterprise.
Assumptions of theory X
1. Workers dislike their work
2. Workers would not work unless coerced
3. Workers have to be micromanaged
4. Workers need incentive to work
Theory x encourages an authoritarian management style
Assumptions of theory Y
1. Workers enjoy their work
2. workers need little or no incentive to work
3. Workers seek and take on responsibility
4. Workers are more engaged in decision making
The management style employed by Nancy's boss is more aligned to theory X
What is who in french
If $240,000 is invested today and returns $432,000 in 10 years, what formula can be used to calculate the interest rate
Answer:
r = (FV/PV)^(1/n) – 1
and
Interest is 6.05 %
Explanation:
Interest is calculated as :
r = (FV/PV)^(1/n) – 1
Thus,
The formula that can be used to calculate the interest rate is
r = ($432,000/$240,000)^(1/10) – 1
= 6.05 %
What type of loan uses real estate for security?
A point of sale
A line of credit
. A disclaimer (it’s not disclaimer)
A second mortgage
Answer:
A second mortgage loan uses real estate for security
Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of the two years. The annual real rate of interest is
Answer:
3%
Explanation:
Calculation to determine what the Annual real interest rate is
Using this formula
Annual real interest rate = Annual nominal interest rate - expected annual inflation rate
Let plug in the formula
Annual real interest rate=8%-5%
Annual real interest rate=3%
Therefore Annual real interest rate is 3%
Which of these is a consumer right recognized by the United Nations? a. right to equality b. right to openness c. right to education d. right to collaboration Please select the best answer from the choices provided A B C D
Answer:
c. right to education
Explanation:
The United Nations Convention for Contracts on International Sale of Goods (CISG) refers to an international trade agreement for the sales of goods in the international market. The Contracts for the International Sale of Goods (CISG) was adopted at the Vienna Convention in 1980.
The main purpose of the international trade agreement is to eliminate or remove any barrier arising from the various domestic laws put in place by different countries with respect to international sales of goods or products.
Also, the Contracts for the International Sale of Goods (CISG) establishes a set of rules to govern and regulate the making and performance of commercial contacts between a buyer and a seller of goods.
The right to education on a particular goods or service is a consumer right recognized by the United Nations (UN).
Additionally, the international trade agreement has helped to make the international sales of goods to be less cumbersome, unambiguous and mitigated the chances of dispute among countries.
Based on the substitution effect, which example reflects how people would likely respond to a rise in gas prices
Answer:
People will purchase more fuel efficient cars
Explanation:
People will purchase more fuel efficient cars in order to reduce the consumption of gas.
Better still, this will also leads to increase in the quantity demanded for electric cars; as they did not require gas to operate.
goods taken by the proprietor for domestic purpose of Rs.15000
Journal entries
plz help me
Explanation:
Given:
Amount of goods taken by proprietor = Rs. 15,000
Find:
Journal entry
Computation:
Books of (.... ltd)
Journal entry
Particular Debit Credit
Drawing A/c Dr 15,000
To Purchase A/c Cr 15,000
(Being goods taken by proprietor for personal use)
In 2020, Courtney, 16 and a dependent of her mother, had earned income of $4,000 and interest income (unearned) of $9,500. What is Courtney's federal income tax liability (before credits)? Courtney's mother is in the 35% marginal tax bracket.
Answer:
The Tax Liability is $1,400
Explanation:
Income is only taxable when it is earned. Any unearned income is not taxable
As unearned income is not taxable then there will be no tax on the unearned interest income of $9,500.
The only taxable income is earned income of $4,000
Use the following formula to calculate the tax liability
Tax liability = Taxable income x Tax rate
Where
Taxable income = $4,000
Tax rate = 35%
Placing values in the formula
Tax liability = $4,000 x 35%
Tax liability = $1,400
On August 1 of Year 1, an accountant collected cash in exchange for an agreement to provide consulting services for one year beginning immediately. Based on this information, the year-end adjustment required to recognize earned revenue will affect the ______.
Answer: See explanation
Explanation:
Since we are informed that on
August 1 of Year 1, an accountant collected cash in exchange for an agreement to provide consulting services for one year beginning immediately. From this information, the year-end adjustment required to recognize earned revenue will affect the revenue account as there'll be:
• decrease the balance in the unearned revenue account.
• increase the balance in the revenue account.
An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 units. Each unit of capital costs $10, each unit of raw materials, $4, and each unit of labour, $3.
92) Refer to the above information. The per unit cost of production in this economy is:
A) $1.00.
B) $.10.
C) $.05.
D) $.50.
93) Refer to the above information. If the per unit price of raw materials rises from $4 to $8 and all else remains constant, the per unit cost of production will rise by about:
A) 50 percent.
B) 30 percent.
C) 40 percent.
D) 100 percent.
94) Refer to the above information. As a result of the change indicated in the previous question, the aggregate:
A) supply curve would shift to the right.
B) demand curve would shift to the right.
C) demand curve would shift to the left.
D) supply curve would shift to the left.
Answer:
A) The correct answer is B. The per unit cost of production in this economy is $0.10.
B) The correct answer is B. The per unit cost of production will rise by about 30 percent.
C) The correct answer is B. The demand curve would shift to the right.
Explanation:
Since an economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units, and each unit of capital costs $ 10, each unit of raw materials, $ 4, and each unit of labor, $ 3, to determine the per unit cost of production in this economy, the per unit cost of production if the per unit price of raw materials rises from $ 4 to $ 8 and all else remains constant, and to determine how the demand or aggregate supply curve will respond, the following calculations must be made:
A) 2 x 10 + 5 x 4 + 8 x 3 = 20 + 20 + 24 = 64
64 / 640 = 0.10
B) 2 x 10 + 5 x 8 + 8 x 3 = 20 + 40 + 24 = 84
64 = 100
84 = X
84 x 100 / 64 = X
8400 / 64 = X
131.25 = X
The location-specific advantages argument associated with John Dunning helps explain why firms prefer FDI to licensing or to exporting. True False
Answer:
false
Explanation:
False. The location-specific advantages argument associated with John Dunning does help explain the direction of FDI. However, the location-specific advantages argument does not explain why firms prefer FDI to licensing or to exporting.
quizlet
A market situation where all participants have an incentive to exploit a resource yet no one can limit anyone else's access to that resource, resulting in over-exploitation, can be described as a(n)
Answer:
Tragedy of the Commons
Explanation:
The tragedy of the commons refers to a situation where the individual could access to the resources that are shared for their own interest.
So it is the market situation where the participant expolited the resources also there is no limited for accessing the resources
So the above term should be considered for the given situation
________ policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.
Answer:
Primary-export-led development
Explanation:
Primary-export-led development policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.