Answer: d.Accounts Receivable, Sales Tax Payable, and Sales columns
Explanation:
The Sales journal is used to record sales made on credit to the firm's customers. In posting in the sales journal, the proper format is to;
Post the amount including the sales tax in the Accounts Receivables Debit ColumnPost the Sales tax to the Sales Tax Payable Credit columnThe lastly post the Sales figure net of tax to the Sales Credit Column.d. Accounts Receivable, Sales Tax Payable, and Sales columns
The following information should be considered:
The Sales journal is applied to record sales made on credit to the customers. In posting in the sales journal, the proper format is to;Post the amount that involved the sales tax in the Accounts Receivables Debit Column
Then Post the Sales tax to the Sales Tax Payable Credit column
And, at last post the Sales figure net of tax to the Sales Credit Column.
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An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is
Complete Question:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:
Group of answer choices
A) the safety of the principal invested.
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
C) the yield is always higher than mortgage yields.
D) the yield is always higher than bond yields.
Answer:
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Explanation:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.
Occasionally, ________________ may lead to pure monopoly; in other market conditions, they may limit competition ______________________. *
Answer:
barriers to entry; to a few oligopoly firms.
Explanation:
Occasionally, barriers to entry may lead to pure monopoly; in other market conditions, they may limit competition to a few oligopoly firms.
Monopoly can be defined as a type of market in which there is a single seller of a unique product. This sellers typically do not face any competition from others.
This ultimately implies that, when there are barriers to entry it may result in monopolistic competition among the sellers of goods having no close substitutes. These barriers consist of economies of scale, network externalities, copyright law, trademark, patent, governmental policies etc.
Calculate the effective annual interest rate for the following: a. A 3-month T-bill selling at $97,645 with par value $100,000
Answer:
The effective annual rate is 10%
Explanation:
Future value = Present value * (1+r)^n
(1+r)^n = Future value / Present value
r = (Future value / Present value)^n - 1
Here r is the rate
Substitute the values as below
r = (Future value / Present value)^n - 1
r= ($100,000 / $97,654)^4 - 1
r = 1.10000 - 1
r = 0.10000
r = 10%
Delaney takes out a $500,000 loan to open a new bar. He will repay the loan in 200 monthly installments, beginning 1 month from now. If he pays equal amounts of principal every month, what will be his third payment
Answer:
the question is incomplete, since you need an APR rate. I looked for similar question and the effective interest rate was 15%:
Delaney will pay $500,000 / 200 = $2,500 in principal every month.
His first payment will be = ($500,000 x 15% x 1/12) + $2,500 = $6,250 + $2,500 = $8,750His second payment will be = ($497,500 x 15% x 1/12) + $2,500 = $6,218.75 + $2,500 = $8,718.75His third payment will be = ($495,000 x 15% x 1/12) + $2,500 = $6,187.50 + $2,500 = $8,687.50Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,940 per month plus $35 per boat. For the month of September, the company planned for activity of 73 boats, but the actual level of activity was 29 boats. The actual cleaning equipment and supplies for the month was $4,010. The activity variance for cleaning equipment and supplies in September would be closest to:
Answer:
$1,540
Explanation:
Calculation for the activity variance for cleaning equipment and supplies in September
First step is to calculate for theFlexible budget
Using this formula
Flexible budget =[Cleaning equipment and supplies +(Amount per boat ×Actual level of activity)
Let plug in the formula
Flexible budget =[$2,940 + ($35 × 29)]
Flexible budget =$2,940+$1,105
Flexible budget =$3,955
Second step is to calculate for the Planning budget using this is formula
Planning budget =[Cleaning equipment and supplies +(Amount per boat ×Planned activity ]
Let plug in the formula
Planning budget= [$2,940 + ($35 × 73)]
Planning budget=$2,940+$2,555
Planning budget=$5,495
Now let calculate for the activity variance
Using this formula
Activity variance=Flexible budget-Planning budget
Let plug in the formula
Activity variance=$3,955-$5,495
Activity variance=$1,540 Favorable
Therefore the Activity variance for cleaning equipment and supplies in September is closest to:$1,540 Favourable reason been that the flexible budget is lesser than the planning budget
At Pharoah Electronics, it costs $33 per unit ($19 variable and $14 fixed) to make an MP3 player that normally sells for $55. A foreign wholesaler offers to buy 3,750 units at $28 each. Pharoah Electronics will incur special shipping costs of $1 per unit.
Required:
Assuming that Pharoah Electronics has excess operating capacity, indicate the net income (loss) Pharoah Electronics would realize by accepting the special order.
Answer:
Reject Order Accept order Net Income
Increase (Decrease)
Revenues = $0 $105,000 $105,000
(3750 units x $28)
Costs-Manufacturing = $0 -$71,250 -$71,250
(3750 units x $19 (VC) )
Shipping $0 -$3,750 -$3,750
(3750 units x $1)
Net Income $0 $30,000 $30,000
Pharoah Electronic would realize the net Income of $30,000 by accepting the special order. Hence, the special order should be accepted.
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes:
Daytripper: 2,000 backpacks in July, 2,200 backpacks in August
Excursion: 1,200 backpacks in July, 900 backpacks in August
Teton’s policy is to maintain ending inventories at 5% of what is expected for the next month. What is the budgeted level of production in July for both styles?
A. 2,010 Daytripper backpacks and 1,185 Excursion backpacks.
B. 2,000 Daytripper backpacks and 1,200 Excursion backpacks.
C. 2,010 Daytripper backpacks and 1,185 Excursion backpacks.
D. 1,990 Daytripper backpacks and 1,215 Excursion backpacks.
Answer:
The production level of Daytripper will be 2010 backpacks and the production level of Excursion will be 1185 backpacks. Thus, option C is the correct answer.
Explanation:
The production volume in July can be calculated by adding the production for July and the closing inventory in July and deducting the opening inventory in July from it.
Production level = Closing Inventory + Production - Opening Inventory
Daytripper = (2200 * 0.05) + 2000 - (2000 * 0.05)
Daytripper = 2010
Excursion = (900 * 0.05) + 1200 - (1200 * 0.05)
Excursion = 1185
Cabell Products is a division of a major corporation. Last year the division had total sales of $10,400,000, net operating income of $540,800, and average operating assets of $2,392,000. The company's minimum required rate of return is 16%. The division's residual income is closest to:
Answer:
$158,080
Explanation:
The division's residual income is calculated as;
= Net operating income - ( Average operating assets × Minimum required rate of return)
= $540,800 - ( $2,392,000 × 16% )
= $540,800 - $382,720
= $158,080
How many dollars must you invest now at an APR of 4.6% with monthly compounding to have $8000 in six years? Round your answer to the nearest dollar.
Answer:
$6,073.853
Explanation:
For computing the amount invested now we need to determine the present value by applying the present value formula i.e. to be shown in the attachment
Provided that
Future value = $8,000
Rate of interest = 4.6% ÷ 12 months = 0.3833%
NPER = 6 years × 12 months = 72 months
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $6,073.853
A safety capacity is a reserve created for unanticipated events. When is a safety capacity used?
A. During the holidays
B. During preventive maintenance and the holidays.
C. Whenever demand surges, there are material shortages, and equipment failure
D. None of the above.
Answer:
C. Whenever demand surges, there are material shortages, and equipment failure
Explanation:
The safety capacity is developed for the events that are not predicted. It can be used for various things like - shortage of materials, break down of machinery and equipment, the power supply is not available at the current time.
Therefore in the given case, option C is chosen as it fits the current situation
Hence, the other options are to be ignored
Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information Standard ounces per unit oz. oz. Standard price (SP) per ounce ? Actual quantity (AQ) used per unit oz. oz. Actual price (AP) paid for material Actual quantity purchased (AQP) and used oz. oz. Price variance ? U Quantity variance U ? Flexible budget variance ? F Number of units produced What is the direct material quantity variance for the bleach?
Complete Question:
Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows:
Product Names Window Cleaner Floor Cleaner
(ammonia) (bleach)
Direct materials information
Standard ounces per unit 16 oz. 24 oz.
Standard price (SP) per ounce $ 0.25 ?
Actual quantity (AQ) used per unit 20 oz. 22 oz.
Actual price (AP) paid for material $ 1.75 $ 0.72
Actual quantity purchased (AQP) / used 1,000 oz. 2,800 oz.
Price variance ? $ 56 U
Quantity variance $4,900 U ?
Flexible budget variance ? $ 504 F
Number of units produced 700 400
What is the direct materials flexible budget variance for ammonia?
A.$6,400 favorable
B.$6,400 unfavorable
C.$3,400 unfavorable
D.$3,400 favorable
Answer:
Squeaky CleanThe Direct Materials Flexible Budget Variance for ammonia is:
B. $6,400 unfavorable
Explanation:
1. Data and Calculations:
Actual quantity purchased = 1,000 oz
Actual price = $1.75
Standard price = $0.25
2. Direct Material Price Variance
= Actual Material Purchased (Actual Rate - Standard Rate)
= 1,000 * ($1.75 - $0.25)
= $1,500 (Unfavorable)
3. Direct Materials Quantity Variance is given as $4,900 Unfavorable.
4. Therefore, the Direct Material Flexible Budget Variance will be equal to the Direct Material Price Variance + the Direct Material Quantity Variance
Flexible Budget Variance for Ammonia
= $1,500 (U) + $4,900 (U)
= $6,400 (Unfavorable)
4. A flexible budget changes or flexes with the actual volume or level of activity. It is not like a static budget that remains static no matter the level of activity. With a flexible budget, the performance of managers can be judged more accurately because their performances are evaluated based on actual volumes or levels of activity.
Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada. Nicole is a sophomore and Naomi is a freshman. Nick and Katelyn's AGI is $202,000. What is their allowable American opportunity tax credit?
Answer: $0
Explanation:
From the question, we are informed that Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada and that Nicole is a sophomore and Naomi is a freshman.
We are further told that Nick and Katelyn's AGI is $202,000. Based on the above scenario, their allowable American opportunity tax credit will be $0. This is because when AGI is more than $180,000 for such taxpayers, the credit is being phased out.
Think back to the elements that result in the creation of SMART goals (Specific, Measurable, Achievable, Realistic, and Time-bound) and rewrite the goals below, making them smarter.
Origional Goal Statement
Revised Goal Statement
Our team will finish the product roll-out on schedule.____________
We intend to save the company $20,000 next month. ___________
Our new initiative will increase customer satisfaction.____________
Our team will hit its numbers.____________-
Answer:
SMART Goals
Rewriting Goal Statements:
Original Goal Statement:
Our team will finish the product roll-out on schedule.____________
Revised Goal Statement:
To finish the product roll-out on schedule, our team will finalize all activities on August 31, 2020.
Original Goal Statement:
We intend to save the company $20,000 next month. ___________
Revised Goal Statement:
To save the company $20,000 next month, we intend to reduce overall expenses.
Original Goal Statement:
Our new initiative will increase customer satisfaction._
Revised Goal Statement:
To increase customer satisfaction today, our new initiative must be customer-focused.
Original Goal Statement:
Our team will hit its numbers.____________
Revised Goal Statement:
To hit its numbers this month, our team must redouble its marketing efforts.
Explanation:
A SMART goal statement starts with an action word with an impact that is time-bound. SMART means: Specific, Measurable, Achievable, Realistic, and Time-bound. SMART goal statements can be used to improve desired outcomes when they are followed through. A SMART goal statement is fundamental to success. It is the basis for a team or an individual to plan their work and evaluate its success.
The given original goal statements can be revised as per the SMART goal guidelines would be as follows:
1). In order to complete the product roll-out on schedule, the team will ensure that all the orders are concluded by 20th January.
2). To save the cost of $20,000 next month, our aim will be to reduce miscellaneous expenses.
3). To implement our new initiative of consumer satisfaction, we will focus on consumer-oriented strategies.
4). To hit the numbers this month, the team should be more focused on the timely delivery of the goods.
SMART goals are characterized as the goals that lay emphasis on the action to be carried forward along with a specification of the time. Such goals are very crucial to ensure that the intended target is achieved effectively and efficiently. The word "SMART" itself implies the goals that are certain, evaluable, realistic, and with a time limit. These goals promote adequate planning and achievement of success.
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We are evaluating a project that costs $560,400, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 80,000 units per year. Price per unit is $38, variable cost per unit is $24, and fixed costs are $680,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a-1. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. What is the degree of operating leverage at the accounting break-even point
Answer:
a -1. 48,572 units
a -2 2.56
Explanation:
Break even point is the level of activity where a firm neither makes a profit or loss.
Break Even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Sales per unit - Variable Cost per unit
= $38 - $24
= $14
Therefore,
Break Even point (units) = $680,000 ÷ $14
= 48,572 units
Degree of operating leverage = Contribution ÷ Earnings Before Interest and Tax
= 80,000 units × $14 ÷ (80,000 units × $14 - $680,000)
= $1,120,000 ÷ $440,000
= 2.56
Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.5 percent. The bond sells for $955.25 and matures in 19 years. The par value is $1,000. What is the YTM of the bond
Answer:
5.89%
Explanation:
The computation of the yield to maturity could be find out by determining by applying the RATE formula i.e. to be shown in the attachment
Provided that,
Present value = $955.25
Future value or Face value = $1,000
PMT = 1,000 × 5.5% ÷ 2 = $27.50
NPER = 19 years × 2 = 38 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula , the YTM is
= 2.9473% × 2
= 5.89%
Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist for producing the profit-maximizing output is _____ Group of answer choices $16,500. $24,200. $16,200. $19,800. $30,800.
Answer: $19,800
Explanation:
The Monopolist will produce at a quantity where Marginal Revenue equals Marginal cost.
From the exhibit, that quantity is shown to be 1,100.
At that quantity, the average total cost incurred is $18.
Total Cost
= Average total cost * quantity
= 18 * 1,100
= $19,800
You want to buy a new sports car 3 years from now and you want to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5% annual compounding interest rate. How much will you have at the end of three years
Answer:
FV= $12,810
Explanation:
Giving the following information:
Annual deposit= $4,200
n= 3
i= 5% annual compounding
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {4,200*[(1.05^2) - 1]}/0.05
FV= 8,610 + 4,200
FV= $12,810
If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise if the Fed increases total reserves by $80 billion and the reserve requirement is 0.05?
Answer:
Increase in price level = 3.2%
Explanation:
Given:
Price level increases = 0.2
Reserves = $80 billion
Reserve requirement =0.05?
Computation:
Increase in money = Increase in reserves / Reserve ratio
Increase in money = $80 billion / 0.05
Increase in money = 1,600
And
Increase in price level = (Increase in money / 100) x 0.2%
Increase in price level = (1,600 / 100) x 0.2%
Increase in price level = 3.2%
Suppose instead that an emissions tax is placed directly on consumers. Under what conditions will producers also bear some of the burden of this tax
Answer:
Emissions Tax on consumers:
Assuming that the demand for the product under which the emissions tax is placed directly on consumers is elastic, then producers will also bear some of the burden of this tax in lost sales. Warehouse costs will skyrocket as consumers literally boycott the products and producers are forced to stop further production. These have far-reaching implications.
Explanation:
By placing the burden on consumers directly, consumers will spend more for the same quantity of goods, if there are no substitutes. Such tax is usually levied to discourage consumption of certain goods.
Aidan was just hired to work for a federal agency in the procurement department. Aidan shops for the best buys possible and finds a great deal. Aidan returns to the office and informs the supervisor about this discovery. Aidan’s boss tells him to be sure that the Buy American Act is satisfied. What does Aidan find when researching this law?
Answer:
he found out that unless the price is a certain percentage that is higher than the price of the equivalent foreign product, federal agencies must buy products with at least 50% of the components made in the U.S.A.
Explanation:
Sparks Corporation has a cash balance of $9,300 on April 1. The company must maintain a minimum cash balance of $7,500. During April, expected cash receipts are $51,000. Cash disbursements during the month are expected to total $56,500. Ignoring interest payments, during April the company will need to borrow:________
a) $3,800
b) $5,500
c) $3,700
d) $7,500
Answer:
c) $3,700
Explanation:
Excess balance after minimum cash balance = $9,300 - $7,500 = $1,800
Excess cash disbursement=$56,500 - $51,000 = $5,500
In April the company will need to borrow =$5,500- $1,800 = $3,700
In the maturity stage, competitors compete on price and product features. They also attempt to differentiate their product to satisfy different segments of the market. An example of a product in the maturity stage is
Answer: Coca-cola
Explanation:
Coca-cola as a soft drink has dominated the world since the 20th century but faces competition against drinks from other companies such as Pepsi and RC Cola.
In other to keep up their competitive edge and sell to more customers, the embark on extensive marketing campaigns that are catchy and memorable.
Coca-cola has also been differentiated over the years by introducing various flavors that are meant to appeal to different segments in the market such as Diet Coke, Coca-Cola Zero Sugar, Coca-Cola Cherry and Coca-Cola Vanilla.
Slumber is considering eliminating the pillows product line. If this line is eliminated, Slumber will be able to eliminate of total fixed costs. How would this business decision impact operating income?
Complete Question:
The income statement for Slumber Company is divided by its two product lines, blankets and pillows, as follows:
Narrative Blanket Pillow Total
Revenue $620,000 $300,000 $920,000
Variable cost ($455,000) ($241,000) ($696,000)
Contribution $165,000 $59,000 $224,000
Fixed cost ($74,000) ($74,000) ($148,000)
Operating Income $91,000 ($15,000) $76,000
Slumber is considering eliminating the pillows product line. If this line is eliminated, Slumber will be able to eliminate $74,000 of total fixed costs. How would this business decision impact operating income?
A. increase of $15,000 in operating income
B. increase of $133,000 in operating income
C. increase of $74,000 in operating income
D. decrease of $59,000 in operating income
Answer:
A. increase of $15,000 in operating income
Explanation:
We can see that if the we continue both product line then the profit is $76k which is lower than the profit of $91k generated from continuing Blankets product line only. If we abandon the pillow production then the loss that pillow manufacturing is producing will be totally eliminated which is $15k. The reason is that fixed cost is specific fixed cost which means it can be eliminated if the company abandons the production of pillow product line. Hence the operating income will increase by $15,000 ($91k - $76k). Option A is correct here.
Bill Padley expects to invest $25,000 for 3 years, after which he wants to receive $32,375.00. What rate of interest must Padley earn?
Answer:
8.99%
Explanation:
The formula to calculate the rate of interest is:
r=(FV/PV)^1/n - 1
r= rate of interest
FV= future value= $32,375
PV= present value= $25,000
n= number of period of time= 3
Now, you can replace the values in the formula:
r=(32,375/25,000)^1/3-1
r=1.295^1/3-1
r=0.0899→8.99%
According to this, the rate of interest that Padley must earn is 8.99%.
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $33 per pound and costs $28 per pound to produce. Product C would sell for $58 per pound and would require an additional cost of $25 per pound to produce. What is the differential cost of producing Product C?
Answer:
Differential cost of producing Product C = $0
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .
$
Sales revenue after the split off point (Product C) 58
Sales revenue at the split-off point (Product B 33
Additional sales revenue per unit 25
Further processing cost (25)
Differential cost of Product C 0
Differential cost of producing Product C = $0
Note that the cost incurred up until the split off point was not included because it is Irrelevant to the decision to process further. It has already been incurred , hence it is a sunk cost
Shoppers on Amazon have differing needs that must be satisfied during the exchange, which often include the need for information, convenience, variety, and/or pre- or postsale services. These needs are collectively referred to as
Answer: buyer requirements
Explanation: Differing needs such as the need for information, convenience, variety, and/or pre- or postsale services that must be satisfied during an exchange are collectively known as buyer requirements which aid both buyers and sellers in the ordering process as they allow the seller to ask for any information needed to complete an order while allowing the buyer to communicate his/her needs to ensure that every order specification is met.
Which of the following would not be classified as a material particiapant in an activity?
A. Short-term capital gains.
B. Charitable contributions.
C. MACRS depreciation expense.
D. Guaranteed payments.
Answer:
C. MACRS depreciation expense.
Explanation:
Material participation in an income-producing activity. That is, an activity that is regular, continuous, and substantial leading to income-producing actions, in which the taxpayer materially participates is an active income or loss.
On September 1, 2003, Time Magazine sold 600 one-year subscriptions for $81 each. The total amount received was credited to Unearned subscriptions revenue. What would be the required adjusting entry at December 31, 2003
Answer:
Total subscriptions revenue for the period= 4 months (September 1 - December 31)
= (600 * $81) * 4/12
= $48,600 * 4/12
= $16,200
Hence adjusting entry would be:
Deferred subscriptions revenue a/c Dr $16,200
To Subscriptions revenue Cr $16,200
Tom, Kirk, and Steve are triplets. They all decide to borrow $1,000 today to go on vacation. They will repay their loans, plus all the accrued interest, in one lump sum exactly 1 year from today. Tom borrows his money at 6 percent simple interest. Kirk’s loan is based on 6 percent interest compounded monthly. Steve is charged 6 percent compounded annually. Who pays the most interest? How much more interest does he pay more than his brothers?
During January, Ajax Co. incurs 1,850 hours of direct labor at an hourly cost of S11 output is t 100 units of its finished product. Ajax standard labor cost per unitor (2 hours x $11.00). Instructions
Compute the total, price, and quantity labor variances for Ajax Co. for January.
Answer and Explanation:
The computation is shown below:
For the labor price variance
= Actual Hours × (Actual rate - standard rate)
= 1,850 × ($11.80 per hour - $11 per hour) ,
= 1.850 × $0.80 per hour
= $1,480 unfavorable
For labor quantity variance
= Standard Rate × (Actual hours - Standard hours)
= $11 × (1,850 hours - 2,000 hours)
= $11 per hour × - 150hours
= $1,650 favorable
Now total would be
= Labor price variance + labor quantity variance
= $1,480 unfavorable + 1,650 favorable
= $170 favorable