Answer:
The price elasticity of demand for a good is likely to be elastic :
A. the greater the proportion of budget share spent on the good.
B. the greater the number of close substitutes for the good.
C. the longer the available time during which consumers can adjust.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Price is more elastic in the long run than in the short run because consumers have more time to search for suitable alternatives
The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product
the greater the proportion of budget share spent on the good, the more elastic the demand for the good
W, Inc. plans to have the same inventories at year end as was in the beginning of the year. The expected total fixed costs for the year are $288000, and the estimated variable costs per unit are $14. The planned number of units to be sold during the year is 60000, and the average unit selling price is $20. The maximum sales level within the relevant range are 70000. Requirements: NOTE: (SHOW ALL WORK) 1. What is the contribution margin ratio
Answer:
i needd points
Explanation:
lol
Presented below are three revenue recognition situations.
a. Groupo sells goods to MTN for $908,000, payment due at delivery.
b. Groupo sells goods on account to Grifols for $797,000, payment due in 30 days.
c. Groupo sells goods to Magnus for $499,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $462,200.
Required:
Indicate the transaction price for each of these transactions and when revenue will be recognized.
Answer:
Groupo
Transaction Price When to recognize revenue
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
Explanation:
a) Data and Analysis:
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
b) For the goods sold on installment sales, the payments are also deferred. Therefore, the seller does not recognize any gain until installments are received. Since installment sales encompass much longer time periods compared to credit sales, there are no discounts offered for early payments. The seller in an installment sales maintains an ownership interest in the goods sold until the buyer pays the balance due in full.
At a sales volume of 34,000 units, Carne Company's sales commissions (a cost that is variable with respect to sales volume) total $741,200. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 32,300 units
Answer: $704,140
Explanation:
Find the rate of commission per sales first:
= Commission / Number of units sold
= 741,200 / 34,000
= $21.80 commission per unit
If there are 32,300 units, the commission will be:
= 32,300 * 21.80
= $704,140
What is the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied
Answer:
$1,609,000
Explanation:
Calculation to determine the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied
First step is to calculate the Unrecorded Patents Amortization
Unrecorded Patents Amortization
=$1,400,000-[($6,400,000 - $3,000,000)×30%] /10 years
Unrecorded Patents Amortization
=$1,400,000- ($3,400,000 × 30%)/10 years
Unrecorded Patents Amortization
=$1,400,000 - $1,020,000/10 years
Unrecorded Patents Amortization = $380,000 / 10 years
Unrecorded Patents Amortization= $38,000
Now let determine the Investment
Investment=$1,400,000 + $180,000 + $225,000 - $60,000 - $60,000 - $38,000 - $38,000
Investment= $1,609,000
Therefore the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied is $1,609,000
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $22,500 and the ending balance was $41,000. Raw materials purchases during the month totaled $68,000. Manufacturing overhead cost incurred during the month was $113,500, of which $2,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
Answer:
the direct material cost is $47,000
Explanation:
The computation of the direct material cost is shown below:
= Opening balance + purchase made - indirect material - closing balance
= $22,500 + $68,000 - $2,500 - $41,000
= $47,000
hence, the direct material cost is $47,000
The same should be considered and relevant too
The following data were taken from the records of Menendez Company:
Current assets $5,000
Property, plant, and equipment 10,000
Current liabilities 3,500
Long-term liabilities 5,000
Stockholders' equity 6,500
What is Menendez Company's working capital?
a. $1,500
b. $5,000
c.1.00
d. $6,500
Answer: a. $1,500
Explanation:
Working capital is calculated by deducting current liabilities from current assets. It is meant to show the operating liquidity of a company within a period.
Working capital = Current assets - Current liabilities
= 5,000 - 3,500
= $1,500
Chang Industries has 2,800 defective units of product that have already cost $14.80 each to produce. A salvage company will purchase the defective units as they are for $5.80 each. Chang's production manager reports that the defects can be corrected for $5.20 per unit, enabling them to be sold at their regular market price of $22.60. The incremental income or loss on reworking the units is:
Answer:
If the units are rework, income will increase by $32,480 (48,720 - 16,240).
Explanation:
Giving the following information:
The previous cost will not be taken into account, because it is constant for both options.
Number of units= 2,800
Sell as-is:
Selling price= $5.8
Re-work:
Unitary cost= $5.2
Selling price= $22.6
We need to calculate the effect on the income of both options:
Sell as-is:
Effect on income= 2,800*5.8= $16,240 increase
Re-work:
Effect on income= 2,800*(22.6 - 5,2)
Effect on income= $48,720 increase
If the units are rework, income will increase by $32,480 (48,720 - 16,240).
Suppose that Jeremiah was unfairly terminated before his employment contract expired, and he had to spend $500 to find another job. His job search expenditures would be considered _____ damages.
Answer:
Incidental damages
Explanation:
In a situation where an employer doesn't fulfill a contract agreement with an employee, just like in the question above, where Jeremiah was unfairly terminated before his employment contract expired, he has the right to collect "damages" which is legal compensation for financial losses caused by the termination of his employment contract before it expired. Incidental damage is the answer because Jeremiah incurred expenses where he had to spend $500 to find another job as a result of the employer's breach of the contract.
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs$79,000 $79,000 Power costs$36,600 $35,600 Inspection costs$32,000 $35,600 Assembly costs$48,000 $48,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives
Answer:
Albiston Corporation
Relevant and Irrelevant Costs:
Relevant Costs:
Alternative Q Alternative R
Power costs $36,600 $35,600
Inspection costs $32,000 $35,600
Irrelevant Costs:
Alternative Q Alternative R
Supplies costs $79,000 $79,000
Assembly costs $48,000 $48,000
Explanation:
a) Data and Comparisons:
Alternative Q Alternative R
Supplies costs $79,000 $79,000
Power costs $36,600 $35,600
Inspection costs $32,000 $35,600
Assembly costs $48,000 $48,000
b) Relevant costs make a difference in the choice between alternative Q or R. The costs that are the same in amount are not relevant. Supplies costs and Assembly costs are two irrelevant costs, while Power costs and Inspection costs are relevant because they are not the same under the two alternatives. They make a difference in the choice of each alternative.
Purple Lemon Fruit Company has two divisions: one is very risky, and the other exhibits significantly less risk. The company uses its investors’ overall required rate of return to evaluate its investment projects. It is most likely that the firm will become:
Answer: b. Riskier over time, and its value will decrease
Explanation:
Because the company is using the investor's required rate of return instead of one that takes into account the riskiness of the two division, you find that risk is not being adequately accounted for.
This would lead to a situation where the company becomes riskier because it is not accounting for its risk properly. With higher risk, the company will be unable to seek funding easily which would lead to lower investments being undertaken and an overall decrease in company value.
If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring:
Answer: late in the supply chain
Explanation:
Assemble to order refers to a strategy whereby the products ordered by customers are manufactured quickly while they are customizable to an extent
Even though the basic parts of the product are manufactured already, they're not yet assembled until an order comes in.
If a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring late in the supply chain.
In a situation where a process with limited flexibility, shorter lead times, and cheaper products, customization of the product or service will most likely occur D. Late in the Supply Chain
Given the process's limited flexibility and shorter lead times, customization, which is a process that tailors a product or service to meet specific customer's or market's demands, cannot occur early, at every step of the Supply Chain, or before procurement of raw materials.
Thus, customization occurs later in the Supply Chain when the goods are about to be delivered to the customer because delivery and satisfying customers or the market are the ultimate goals of any Supply Chain management.
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Agreement and disagreement among economists
Suppose that Raphael, an economist from an AM talk radio program, and Susan, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. The following dialogue shows an excerpt from their debate:
Yvette: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain the improvement of living standards.
Sean: I think a switch from the income tax to a consumption tax would bring growth in living standards.
Yvette: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
1. The disagreement between these economists is most likely due to (differences in values, differences in perception versus reality, differences in scientific judgments) .
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A. Lawyers make up an excessive percentage of elected officials.
B. Minimum wage laws do more to harm low-skilled workers than help them.
C. Tariffs and import quotas generally reduce economic welfare.
Answer:
Differences in values C. Tariffs and import quotas generally reduce economic welfare.Explanation:
Yvette and Sean most likely have a difference in values because they believe that one thing is better for the economy than the other. This means that when it comes down to the economy, they value a certain approach over other approaches.
Economist don't usually find common ground on many things but there are some things where they have a general consensus and one of them is that tariffs and import quotas are bad for the economy. They believe that people stand more to gain from free trade than restricted trade.
The adjusted trial balance of Pronghorn Corp at December 31, 2022, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300, Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900.
Required:
Prepare an income statement for the year.
Answer and Explanation:
The preparation of the income statement is presented below:
Service Revenue $36,300
Less:
Salaries and Wages Expense $14,000
Insurance Expense $1,880
Rent Expense $4,080
Supplies Expense $1,440
Depreciation Expense $900
Net income $14,000
Basically we subtracted the expenses from the revenues in order to get the net income
Cray Company started year 2 with $60,000 in its cash and common stock accounts. During year 2 Cray paid $45,000 cash for employee compensation. Assume this is the only transaction that occurred in year 2. Required Determine the total amount of assets at the end of year 2, assuming Cray is a manufacturing company and the employees were paid to make products. Determine the amount of expense recognized on the year 2 income statement, assuming Cray is a manufacturing company and the employees were paid to make products. Determine the total amount of assets at the end of year 2, assuming Cray is a service company. Determine the amount of expense recognized on the year 2 income statement, assuming Cray is a service company.
Answer:
Hi BubbleTeaLover!
Here you go:
Manufacturing:
Total Assets: $60,000
Total Expenses: $0
Service:
Total Assets: $15,000
Total Expenses: $45,000
When moving up along an existing supply curve, all variables other than price are
O increasing
decreasing
O held constant
O fluctuating
When moving up along an existing supply curve, all variables other than price are held constant. Hence, Option (C) is correct.
When analyzing a supply curve, economists typically assume that all other variables except price remain constant.
This assumption allows for a simplified analysis of the relationship between price and quantity supplied, isolating the impact of price changes on supply.
In reality, numerous factors influence supply, such as input costs, technology, government regulations, and producer expectations.
However, when studying the impact of price on supply, economists use the concept of ceteris paribus (all other things being equal) to hold these other factors constant and focus solely on the relationship between price and quantity supplied.
Thus, by assuming that all other variables are constant, economists can create a simplified model that helps understand the basic behavior of supply and the upward-sloping nature of the supply curve.
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When moving up along an existing supply curve, all variables other than price are
A) increasing
B) decreasing
C) held constant
D) fluctuating
Pharmaceutical companies are sometimes perceived as profiting unfairly from drugs they sell. Suppose that a new law shortens the time during which the manufacturer has exclusive use of the drug formula. Place the events in sequence to illustrate how restricting profits by pharmaceutical companies will affect innovation.
a. Pharmaceutical companies reduce their estimate of the profitability of new drug research.
b. Fewer new drugs are brought to market.
c. Pharmaceutical companies are less willing, to invest in drug development.
Answer:
1. Pharmaceutical companies reduce their estimate of the profitability of new drug research.
2. Pharmaceutical companies are less willing to invest in drug development.
3. Fewer new drugs are brought to market.
Explanation:
Given that the pharmaceutical companies are recognized as making profits in an unfair way by selling drugs. Now there is a new law which shortens the duration of time of the use of the drug formula by the manufacturer.
Thus the events in a sequence order which shows how the restricting profits by the pharmaceutical companies affects the innovation are :
The companies tries to reduce their estimate of profitability of the new drug research.The pharmaceutical research does not want to invest their money in the research and development of the drugs.Only few drugs are put in the market.An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Faceplant Corporation. All three stocks have the same expected return and risk. The correlation between Giggle & Macrosoft is 0.25. The correlation between Giggle and Faceplant is -0.10. Portfolio risk is expected to:
a. Increase regardless of whether she buys Macrosoft or Faceplant since they are equally risky
b. Decline more when the investor buys Faceplant
c. Cannot tell from information provided – need to know risk, return and proportion of each stock in the portfolio
d. Stay the same regardless of whether Macrosoft or Faceplant is added since all three have the same risk
e. Decrease more when the investor buys Macrosoft
Answer:
b
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Correlation is a statistical measure used to measure the relationship that exists between two variables.
1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases. It increases the risk of the portfolio
For example, there should be a positive correlation between quantity supplied and price
When there is a positive correlation, the graph of the variables is upward sloping
2. Negative correlation : it mean that the two variables move in different direction. If one variable increases, the other variable decreases. It decreases the risk of the portfolio
For example, there should be a negative correlation between quantity demanded and price
When there is a negative correlation, the graph of the variables is downward sloping
3. Zero correlation : there is no relationship between the variables. It decreases the risk of the portfolio
Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded
Answer:
Debit : Work in Process - Direct Labor $24,600
Debit : Work in Process - Indirect Labor $4,300
Credit : Salaries and Wages Payable $28,900
Explanation:
The Journal entry accumulated costs in work in process as shown above.
Identify each of the following features as applying more to job order operations, process operations or both job order and process operations.1. Cost object is a process. 2. Measures unit costs only at period-end. 3. Uses indirect costs. 4. Transfers costs between Work in Process Inventory accounts. 5. Uses only one Work in Process account. 6. Uses materials, labor, and overhead costs.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.
Suppose that you own 1,300 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $100 per share.
a. What will be the number of shares that you hold after the stock dividend is paid?
b. What will be the total value of your equity position after the stock dividend is paid?
c. What will be the number of shares that you hold if the firm splits five for four instead of paying the stock dividend?
Answer:
a. Number of shares held after stock dividend:
= Current number of shares + (Current number of shares * Stock dividend percentage)
= 1,300 + ( 1,300 * 25%)
= 1,300 + 325
= 1,625 shares
b. Total value of equity position after stock dividend:
Stock dividend does not change the market value of equity as it reduces the price of each stock so the total value will be the same as before the stock dividend:
= 1,300 * 100
= $130,000
c. Number of shares if shares are split:
= Number of shares * split percentage
= 1,300 * 5/4
= 1,625 shares
Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $20 par, and 25,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $6,000; second year, $10,000; third year, $50,250; fourth year, $78,000.Calculate the dividends per share on each class of stock for each of the four years.
Answer:
For first year, we have:
Cumulative preferred dividend per share = $0.30 per share
Common dividend per share = $0
For second year, we have:
Cumulative preferred dividend per share = $0.50 per share
Common dividend per share = $0
For third year, we have:
Cumulative preferred dividend per share = $1.60 per share
Common dividend per share = $0.73 per share
For fourth year, we have:
Cumulative preferred dividend per share = $0.80 per share
Common dividend per share = $2.48 per share
Explanation:
Cumulative preferred stock has a clause that mandates the corporation to pay all dividends, including those that were previously missed, before common shareholders can get their dividend payments.
Annual cumulative preferred dividend = 20,000 * $20 * 4% = $16,000
Therefore, we have:
For First Year
Distributed dividends = $6,000
Cumulative preferred dividend paid = Distributed dividends = $6,000
Common dividend paid = $0
Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $6,000 / 20,000 = $0.30 per share
Common dividend per share = $0
Cumulative preferred dividend carried forward = Annual cumulative preferred dividend - Cumulative preferred dividend paid = $16,000 - $6,000 = $10,000
For Second Year
Distributed dividends = $10,000
Cumulative preferred dividend payable = Annual cumulative preferred dividend + Cumulative preferred dividend brought forward = $16,000 + $10,000 = $26,000
Cumulative preferred dividend paid = Distributed dividends = $10,000
Common dividend paid = $0
Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $10,000 / 20,000 = $0.50 per share
Common dividend per share = $0
Cumulative preferred dividend carried forward = Cumulative preferred dividend payable - Cumulative preferred dividend paid = $26,000 - $10,000 = $16,000
For Third Year
Distributed dividends = $50,250
Cumulative preferred dividend paid = Annual cumulative preferred dividend + Cumulative preferred dividend brought forward = $16,000 + $16,000 = $32,000
Common dividend paid = Distributed dividends - Cumulative preferred dividend paid = $50,250 - $32,000 = $18,250
Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $32,000 / 20,000 = $1.60 per share
Common dividend per share = Common dividend paid / Number of common shares outstanding = $18,250 / 25,000 = $0.73 per share
For Fourth Year
Distributed dividends = $78,000
Cumulative preferred dividend paid = Annual cumulative preferred dividend = $16,000
Common dividend paid = Distributed dividends - Cumulative preferred dividend paid = $78,000 - $16,000 = $62,000
Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $16,000 / 20,000 = $0.80 per share
Common dividend per share = Common dividend paid / Number of common shares outstanding = $62,000 / 25,000 = $2.48 per share
2. In what ways does the division between value creation and value delivery help clarify the process of refining the business model
Answer:
Value creation refers to the process of creating a company value based on the demands of the consumer and their willingness to use the value. The action of drifting wealth in a value networks is essential to the idea of shared value.
In other words, The way you create your goods such that they provide the most value to the customers who use them is called value delivery. Customers can receive worth in the shape of goods, perks, and characteristics, among other things. Anything that adds worth to the consumer 's experience should be included in the value ordering process.
Preparation of a statement of cash flows involves five steps:
(1) Compute the net increase or decrease in cash;
(2) compute net cash provided or used by operating activities (using either the direct or indirect method);
(3) compute net cash provided or used by investing activities;
(4) compute net cash provided or used by financing activities; and
(5) report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows. Noncash investing and financing activities are also disclosed.
Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year. 9.36% 9.27% 9.30% 9.33%
Answer:
Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year. 9.36% 9.27% 9.30% 9.33%
Explanation:
Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year. 9.36% 9.27% 9.30% 9.33%
9.33% is the geometric average return earned by an investor over three years if she earned 6% in the first year of investment, 12% in the second year, and 10% in the third year. The correct option is D.
What is the geometric average return in finance?The formula for the geometric average return, also known as the geometric mean return, can be used to figure out the average rate of return on an investment that is compounded over a number of time periods. The geometric average return, to put it simply, accounts for compound interest over a number of periods.
Given
Return rate = 6%, 12%, and 10% respectively in years 1, 2, and 3.
The average rate of return = Sum of All year's return / Number of Years
= 6 + 12 + 10 / 3 = 9.33%
The geometric average return is 9.33%
Thus, the ideal selection is option D.
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In June 2007 General Motors (GM) posted a price-earnings ratio of 9.84. If
the price of the stock at that time was $36 per share, which of the following
must have been true?
a. GMâs earnings per share was 3.66.
b. GMâs coupon payment was $35 per year.
c. GMâs dividend yield for the year was 26%.
d. GMâs revenues that month were $366 million.
Answer:
General Motors (GM)
If the price of the stock at that time was $36 per share, the true statement is:
a. GM's earnings per share was 3.66.
Explanation:
a) Data and Calculations:
Price-earnings ratio = 9.84
Market price of stock at that time = $36 per share
Earnings per share = Market price per share/Price-earnings ratio
= $36/9.84 = 3.659
= $3.66
Check:
Price-earnings ratio = Market price per share/Earnings per share
= 9.84 ($36/$3.66)
A company purchased a weaving machine for $198,250. The machine has a useful life of 8 years and a residual value of $10,500. It is estimated that the machine could produce 751,000 bolts of woven fabric over its useful life. In the first year, 105,500 bolts were produced. In the second year, production increased to 109,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Answer:
the depreciation expense that should be recorded for the second year is $27,375
Explanation:
The computation of the amount of depreciation expense that should be recorded for the second year is shown below
Depreciation rate is
= ($198,250 - $10,500) ÷ 751000
= 0.25 per bolt
Now Depreciation expense for the second year
= $109,500 × .25
= $27,375
hence, the depreciation expense that should be recorded for the second year is $27,375
In its first year of operations, Roger Company purchased trading securities at a total cost of $53,000. On December 31, the end of Roger's fiscal year, the fair market value of those investments totaled $57,000. As a result of these investments, Roger Company will report
Answer:
Investment in Trading Securities of $57,000
Explanation:
Based On the information given we were told that the FAIR MARKET VALUE of those investments totaled the amount of $57,000 which therefore means that As a result of these investments, Roger Company will report INVESTMENT IN TRADING SECURITIES of the amount of $57,000.
QS 4-19B Recording estimates of future discounts LO P6 ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,200. Of the $10,200 of receivables, $2,100 are within a 3% discount period, meaning that it expects buyers to take $63 in future discounts arising from this period’s sales. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts.
Answer:
Dr Sales Discount $63
Cr Allowance for Sales Discount $63
Explanation:
Preparation of the June 30 fiscal-year-end adjusting journal entry for future sales discounts.
Based on the information given the June 30 fiscal-year-end adjusting journal entry for future sales discounts will be:
30-June
Dr Sales Discount $63
Cr Allowance for Sales Discount $63
(3%*$2,100)
(To record future sales discounts)
All sales are made on credit. Based on past experience, the company estimates 0.3% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Missing word "A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $350,000 debit, Allowance for uncollectible accounts 650 debit, Net Sales 795,000 credit"
Net credit sales = $795,000
Bad debt expense = 0.3% * Net credit sales
Bad debt expense = $795,000 * 0.3%
Bad debt expense = $2,385
Adjusting entry
Date General Journal Debit Credit
Bad debt expense $2,385
Allowance for uncollectible accounts $2,385
(To record bad debt expense)
Imagine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ________ will generally pay more for life insurance than ________.
Answer:
magine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ____older people____ will generally pay more for life insurance than ___younger people_____.
Explanation:
Setting life insurance premiums take into consideration the age of the insured (insurance policyholder). Other factors considered in setting premiums are gender, medical history, hobby, and career. Insurance premiums are periodic payments which the insured is expected to make to the insurance company (insurer) to cover the cost of the financial service being rendered and contribute to the defined benefits that will be paid upon expiration or in the event of the risk occurring.