Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units.
Required:
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answer:
a. Straight line method.
Depreciation per annum = ($ 256,800 - $12,000 ) / 8 = $ 30,600.
Depreciation for 2020 = $ 30,600 * ( 3 /12 ) = $ 7,650.
b. Units of output
Depreciation per unit = ( $ 256,800 - $ 12,000 ) / 48,000 = $ 5.1
Depreciation for 2020 = 1,000 * $ 5.1 = $ 5,100.
c. Working hours.
Depreciation per hours = ( $ 256,800 - $ 12,000 ) / 20,400 = $ 12
Depreciation for 2020 = 600 * $ 12 = $ 7,200.
D. Sum of digits method
Sum of years = 8 ( 8 +1 ) / 2 = 36.
Year - 1 used ( 3 / 12 = 0.25)
Year-2 used ( 12 / 12 = 1 )
Remaining ( 8 - 1 - 0.25 = 6.75)
Depreciation for 2022 = ($ 256,800 - $ 12,000 ) * ( 6.75 / 36 )
Depreciation for 2022 = $ 45,900.
e. Double declining balance
Depreciation rate = 200 / 8 = 25 %.
Depreciation for 2020 = $256,800 * 25 % * (3 /12)
Depreciation for 2020 = $16,050.
Depreciation for 2021 = ( $256,800 - $ 16,050) * 25%
Depreciation for 2021 = $60,188.
a stock will pay dividend of $4 at the end of the year. it sells today for $104 and it its dividends are expected grow at a rate of 9%. what is the implied rate of return on this stock
Answer:
the implied rate of return on the stock is 14.80%
Explanation:
The computation of the implied rate of return is shown below:
The Rate of return is
= (Dividend at year 1 ÷ share price) + growth rate
= ( $6 ÷ 104) + 0.09
= 0.058 + 0.09
= 14.80%
We simply applied the above formula
And, the same is to be considered
hence, the implied rate of return on the stock is 14.80%
Eulis Co. has identified an investment project with the following cash flows. YearCash Flow 1 $1,130 2 1,000 3 1,510 4 1,870 If the discount rate is 9 percent, what is the present value of these cash flows
Answer:
Total present value= $4,369.14
Explanation:
Giving the following information:
Year Cash Flow
1 $1,130
2 $1,000
3 $1,510
4 $1,870
Discount rate= 9%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
PV1= 1,130/1.09= 1,036.70
PV2= 1,000/1.09^2= 841.68
PV3= 1,510/1.09^3= 1,166
PV4= 1,870/1.09^4= 1,324.76
Total present value= $4,369.14
1. Accrual accounting is used by the vast majority of companies. *
O
True
O False
Answer:
True
Explanation:
The accrual accounting system is one of the two methods of reporting or recording income and expenses. The other way is the cash system.
In the accrual method, income and expenses are accounted for when they were earned or incurred regardless of whether money changed hands. Sales are reported when goods are delivered, and the invoice is issued even if the customer has not paid.
The accrual system is the standard method of operating for many businesses, big and small. The accrual method matches revenue and income with the time of their respective economic events. The general accounting principles recommend the accrual accounting system for both the private and public sectors.
On January 1, 2020, Meeks Corporation issued $5,000,000, 10-year, 4% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2020 is
a. Cash........................................................................................ 5,000,000
Bonds Payable............................................................... 5,000,000
b. Cash........................................................................................ 5,100,000
Bonds Payable............................................................... 5,100,000
c. Premium on Bonds Payable ................................................... 100,000
Cash........................................................................................ 5,000,000
Bonds Payable............................................................... 5,100,000
d. Cash........................................................................................ 5,100,000
Bonds Payable............................................................... 5,000,000
Premium on Bonds Payable .......................................... 100,000
Answer:
d. Cash........................................................................................ 5,100,000
Bonds Payable............................................................... 5,000,000
Premium on Bonds Payable .......................................... 100,000
Explanation:
The Journal entry is shown below:-
Cash Dr, $5,100,000 ($5,000,000 × 1.02)
To Bonds payable $5,000,000
To Premium on Bonds payable $100,000
(Being cash is recorded)
Here we debited the cash as it increases the assets and we credited the bonds payable and premium on bonds payable as it also increases the liabilities.
Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.
Answer:
Fixed annuities
Variable annuities
Indexed annuities
Explanation:
Annuities are defined as contract that pays out regular amounts over time at a particular interest rate.
Usually there is an initial investment of a lumps sum or a series of deposits.
Annuities are classified based on level of risk and payout potential into 3:
- Fixed annuity give out a fixed guaranteed payout amount. The risk is low but the payout is low. Slightly above certificate of deposits.
- Variable annuity is one that gives room for a higher payout but risk is also higher. A set of mutual funds are invested in and payout is dependent on how they perform.
- Indexed annuity gives higher return that is tied to the performance of an index like the S&P 500. The risk is lower than that of variable annuity
Which example is not an advantage of b entrepreneurship’s
Which factors influence changes in consumer demand? Check all that apply.
market share
elasticity
O international trade
O clearance sales
O income
Answer:
2,4, and 5
Explanation:
Answer:
elasticity
clearance
income
Explanation:
Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.
May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of equipment on credit.
5 The company paid $750 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant’s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the equipment purchased on May 3.
27 The company purchased $80 of equipment on credit.
28 The company paid $750 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $280 cash for this month’s utilities.
31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Required:
a. Determine the final total for each account and verify that the equation is in balance.
b. Prepare an Income Statement for May,
c. Prepare a statement of Owner's equity for May,
d. Prepare 31 Balance Sheet.
e. Prepare Cash flows for May.
Answer:
a) May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
Dr Cash 40,000
Cr Common stock 40,000
May 1 The company rented a furnished office and paid $2,200 cash for May’s rent.
Dr Rent expense 2,200
Cr Cash 2,200
May 3 The company purchased $1,890 of equipment on credit.
Dr Equipment 1,890
Cr Accounts payable 1,890
May 5 The company paid $750 cash for this month’s cleaning services.
Dr Cleaning expenses 750
Cr Cash 750
May 8 The company provided consulting services for a client and immediately collected $5,400 cash.
Dr Cash 5,400
Cr Service revenue 5,400
May 12 The company provided $2,500 of consulting services for a client on credit.
Dr Accounts receivable 2,500
Cr Service revenue 2,500
May 15 The company paid $750 cash for an assistant’s salary for the first half of this month.
Dr Wages expense 750
Cr Cash 750
May 20 The company received $2,500 cash payment for the services provided on May 12.
Dr Cash 2,500
Cr Accounts receivable 2,500
May 22 The company provided $3,200 of consulting services on credit.
Dr Accounts receivable 3,200
Cr Service revenue 3,200
May 25 The company received $3,200 cash payment for the services provided on May 22.
Dr Cash 3,200
Cr Accounts receivable 3,200
May 26 The company paid $1,890 cash for the equipment purchased on May 3.
Dr Accounts payable 1,890
Cr Cash 1,890
May 27 The company purchased $80 of equipment on credit.
Dr Equipment 80
Cr Accounts payable 80
May 28 The company paid $750 cash for an assistant’s salary for the second half of this month.
Dr Wages expense 750
Cr Cash 750
May 30 The company paid $300 cash for this month’s telephone bill.
Dr Telephone expense 300
Cr Cash 300
May 30 The company paid $280 cash for this month’s utilities.
Dr Utilities expense 280
Cr Cash 280
May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Dr Dividends 1,400
Cr Cash 1,400
debit credit
Cash $42,780
Equipment $1,970
Accounts payable $80
Common stock $40,000
Service revenue $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
totals $51,180 $51,180
income statementService revenue $11,100
Expenses:
Rent expense $2,200Cleaning expenses $750Wages expense $1,500Telephone expense $300Utilities expense $280 ($5,030)Net income $6,070
statement of owner's equityBeginning balance $0
Common stocks issued $40,000
Net income $6,070
Sub-total $46,070
Dividends ($1,400)
Ending balance $44,670
balance sheetAssets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Common stock $40,000
Retained earnings $4,670
Total liabilities and equity $44,750
cash flow statementCash flows from operating activities:
Net income $6,070
Increase in accounts payable $80
net cash from operating activities $6,150
Cash flows from financing activities:
Purchase of equipment ($1,970)
Cash flow from financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
net cash fro financing activities $38,600
net cash increase $42,780
beginning cash balance $0
ending cash balance $42,780
a.1. The final total for each account is determined in the general ledger as follows:
Cash Account
Date Account Titles Debit Credit
May 1 Common Stock $40,000
May 1 Rent Expense $2,200
May 5 Cleaning Services Expense $750
May 8 Consulting Fees $5,400
May 15 Salaries Expense $750
May 20 Accounts Receivable $2,500
May 25 Accounts Receivable $3,200
May 26 Accounts Payable $1,890
May 28 Salaries Expense $750
May 30 Telephone Expense $300
May 30 Utilities $280
May 31 Dividends $1,400
May 31 Balance $42,780
Totals $51,100 $51,100
Accounts ReceivableDate Account Titles Debit Credit
May 12 Consulting Fees $2,500
May 20 Cash $2,500
May 22 Consulting Fees $3,200
May 25 Cash $3,200
Totals $5,700 $5,700
EquipmentDate Account Titles Debit Credit
May 3 Accounts Payable $1,890
May 27 Accounts Payable 80
May 31 Balance $1,970
Totals $1,970 $1,970
Common StockDate Account Titles Debit Credit
May 1 Cash $40,000
Accounts PayableDate Account Titles Debit Credit
May 3 Equipment $1,890
May 26 Cash $1,890
May 27 Equipment $80
May 31 Balance $80
Totals $1,970 $1,970
Consulting FeesDate Account Titles Debit Credit
May 8 Cash $5,400
May 12 Accounts Receivable $2,500
May 22 Accounts Receivable 3,200
May 31 Balance $11,100
Totals $11,100 $11,100
Rent ExpenseDate Account Titles Debit Credit
May 1 Cash $2,200
Cleaning Services ExpensesDate Account Titles Debit Credit
May 5 Cash $750
Wages ExpenseDate Account Titles Debit Credit
May 15 Cash $750
May 28 Cash $750
May 31 Balance $1,500
Totals $1,500 $1,500
Telephone ExpensesDate Account Titles Debit Credit
May 30 Cash $300
Utilities ExpenseDate Account Titles Debit Credit
May 30 Cash $280
DividendsDate Account Titles Debit Credit
May 31 Cash $1,400
a.2. The determination that the equation is in balance is established through the Trial Balance as follows:
Date Account Titles Debit Credit
Cash $42,780
Common stock $40,000
Equipment $1,970
Accounts payable $80
Consulting fees $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
Totals $51,180 $51,180
b. The preparation of the income statement is as follows:
The Gram Co.
Income StatementFor the month ended May 31
Service revenue $11,100
Expenses:
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280 ($5,030)
Net income $6,070
c. The preparation of the statement of owner's equity is as follows:
The Gram Co.
Statement of Owner's EquityAs of May 31
Common stocks issued $40,000
Net income $6,070
Dividends ($1,400)
Ending balance $44,670
d. The preparation of the Balance Sheet is as follows:
The Gram Co.
Balance SheetAs of May 31
Assets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Equity:
Common stock $40,000
Retained earnings $4,670
Total equity $44,670
Total liabilities and
owner's equity $44,750
e. The preparation of the Statement of Cash Flows is as follows:
The Gram Co.
Statement of Cash FlowsOperating activities:
Net income $6,070
Increase in accounts payable $80
Net operating cash $6,150
Investing activities:
Purchase of equipment ($1,970)
Financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
Net financing cash $38,600
Net cash flows $42,780
Reconciliation:Beginning cash balance $0
Net cash flows $42,780
Ending cash balance $42,780
Data Analysis:May 1 Cash $40,000 Common Stock $40,000
May 1 Rent Expense $2,200 Cash $2,200
May 3 Equipment $1,890 Accounts Payable $1,890
May 5 Cleaning Services Expense $750 Cash $750
May 8 Cash $5,400 Consulting Fees $5,400
May 12 Accounts Receivable $2,500 Consulting Fees $2,500
May 15 Salaries Expense $750 Cash $750
May 20 Cash $2,500 Accounts Receivable $2,500
May 22 Accounts Receivable $3,200 Consulting Fees $3,200
May 25 Cash $3,200 Accounts Receivable $3,200
May 26 Accounts Payable $1,890 Cash $1,890
May 27 Equipment $80 Accounts Payable $80
May 28 Salaries Expense $750 Cash $750
May 30 Utilities (Telephone) $300 Cash $300
May 30 Utilities $280 Cash $280
May 31 Dividends $1,400 Cash $1,400
Learn more about preparing financial statements at https://brainly.in/question/33221066
a worker produced four components during an 8-hour shift in which he earned $96. What is his labor cost per unit?
Answer:
$24
Explanation:
Labor cost per unit is the ratio of total labor expense for a period of time divided by the total number of units produced during that period of time. It is given by the formula:
Labor cost per unit = Total money earned during a specified period / number of components produced.
Hence using the formula above, the labor cost per unit of the worker is gotten to be:
Labor cost per unit = $96 / 4 components = $24
What are the limitations and risks of a marketing strategy that does not contemplate the responses of your competitors
Answer:
Throughout the clarification section following, the definition of the given query is explained.
Explanation:
Right, businesses face fierce competition through competitiveness throughout today's time, because it has become extremely necessary for organizations to develop a marketing campaign that makes companies contemplate consumer response.
After all, if any business marketing plan doesn't somehow anticipate competition reaction, then all these threats can occur:
Someone's brand sales should decline as consumers should choose the brand of their rivals. Your company's market position as well as business growth would decline as well as the brand's rivals will rise. Throughout the life cycle of the product, your company will hit the decline point. Your business's share price could decline.According to the video, what are some things that Human Resources Managers do? Check all that apply.
oversee hiring and firing
purchase computers
distribute office supplies
develop training programs
develop personnel policies
develop pricing strategies
develop recruiting programs
Answer:
1 4 5 7
Explaination:
Answer:
1 4 5 7
Explanation:
Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.
Answer:
Definition of Economic Costs
Implicit and Explicit Costs:
The wholesale cost for the pianos that Darnell pays the manufacturer Explicit Cost
The salary Darnell could earn if he worked as an accountant Implicit Cost
The wages and utility bills that Darnell pays Explicit Costs
The rental income Darnell could receive if he chose to rent out his showroom Implicit Cost
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit $89,000
Economic Profit $3,000 ($89,000 - 86,000)
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $__86,000____.
This economic profit includes the rental and salary income that Darnell can earn.
Explanation:
a) Data:
Sales Revenue = $842,000
Cost of goods sold 452,000
Wages & Utilities = 301,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
Profit (Dollars)
Sales Revenue = $842,000
Cost of goods sold 452,000
Gross profit $390,000
Wages & Utilities = 301,000
Net Income $89,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of Most decision makers and analysts use five groups of ratios to examine the different aspects of a company's performance.
Indicate whether each of the following statements regarding financial ratios are true or false?
Statement True False
1. A company exhibiting a high liquidity ratio means it is likely to have enough resources to pay off its short-term obligations
2. Asset management ratios provide insights into management's efficiency in using a firm's working capital and long-term assets.
3. Debt management or financial leverage ratios help analysts determine whether a company has sufficient cash to repay its short- term debt obligations.
4. One possible explanation for an increase in a firm's profitability ratios over a certain time span is that the company's income has increased
5. Market-value ratios help analysts figure out what investors and the markets think about the firm's growth prospects or current and future operational performance
Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry However, like many tools and techniques, ratio analysis has a few limitations and weaknesses Which of the following statements represent a weakness or limitation of ratio analysis?
a. A firm may operate in multiple industries.
b. A firm's financial statements show only one period of financial data.
c. Different firms may use different accounting practices.
Answer:
First Part1. True
Liquidity ratios such as the Current ratio are used to show that a company can cover its short-term obligations.
2. True
Asset management ratios juxtapose a company's performance vs its long term assets and so provide insights into management's efficiency.
3. False
Debt management ratios show how much of the company is funded by total debt not whether it has sufficient cash to repay its short- term debt obligations.
4. True
Profitability ratios take into account how much income is raised by a company so when this increases, the ratios will as well.
5. True
Market-Value ratios show the firm's value in the market which is a reflection of what investors and the markets think about the firm's growth prospects or current and future operational performance.
Second PartThe Weakness/ Limitations are;
a. A firm may operate in multiple industries.
Should this be the case, the company's performance in one sector cannot necessarily be compared to companies that operate in that single sector because it would not take into account the company's other sectors which may impact figures.
c. Different firms may use different accounting practices.
When different accounting practices are used, ratio analysis may not be a true indication of the situations in the company. For instance, a company using LIFO cannot be effectively compared to a company using FIFO when using ratio analysis.
The following ledger accounts are used by the Heartland Race Track
Accounts Receivable
Prepaid Advertising
Prepaid Rent
Unearned Sales Revenue
Sales Revenue
Advertising Expense
Rent Expense
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year.
A) On November 1, paid rent on the track facility for three months, $180,000.
B) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $1,152,000.
C) On November 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
D) On November 5, programs for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.
E) The accountant for the concessions company reported that gross receipts for November were $168,000. 10% is due to Heartland and will be remitted by December 10.
Prepare the journal entry (if one ls required) to record the Initial transaction.
Prepaid Rent 150,000
Cash 150,000
Cash 960,000
Unearned Sales
Revenue 960,000
Cash 250,000
Notes Payable 250,000
Prepaid
Advertising 3,000
Cash 3,000
Answer:
Heartland Race Track
Journal Entries:
A. November 1:
Debit Prepaid Rent $180,000
Credit Cash Account $180,000
To record the payment of rent for three months.
B. November 1:
Debit Cash Account $1,152,000
Credit Unearned Sales Revenue $1,152,000
To record the sale of year-round season tickets.
C. November 1:
Debit Cash Account $300,000
Credit Notes Payable $300,000
To record the issue of 6% note payable for 3 months.
D. November 5:
Debit Prepaid Advertising $3,600
Credit Cash Account $3,600
To record the printing of programs for three months.
E. Debit Accounts Receivable (Concession) $16,800
Credit Sales Revenue $16,800
To record concessions fees.
November 30: Adjusting Entries:
A. Debit Rent Expense $60,000
Credit Prepaid Rent $60,000
To adjust for rent expense for the month.
B. Debit Unearned Sales Revenue $96,000
Credit Sales Revenue $96,000
To record the earned revenue for season tickets for the month.
C. Debit Interest Expense $1,500
Credit Interest Payable $1,500
To accrue interest for one month on note payable.
D. Debit Advertising Expense $1,200
Credit Prepaid Advertising $1,200
To record advertising expense for the month.
Explanation:
Heartland Race Track will find the use of the general and adjusting journals helpful in its accounting records. They provide the needed guidance to ensure that the accounts involved in every business transaction are properly identified and entries are correctly recorded on the correct side of the accounts. Transactions are recorded following the ubiquitous accounting equation, the accrual concept, and matching principle of generally accepted accounting principles.
What is the best application to chart the average temperature for the year?
PowerPoint
Access
Word
Excel
On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s).
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Merry Walker, Capital
10. Merry Walker, Drawing
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense
Answer:
a. Recorded jobs completed on account and sent Invoices to customers.
Account to be Debited ⇒ 2. Accounts Receivable
Account to be Credited ⇒ 11. Fees Earned
The fees are to be credited as it is revenue. The amount will be debited to Accounts receivables because the customers owe the company.
b. Received an invoice for truck expense to be paid in February.
Account to be Debited ⇒ 15. Truck Expense
Account to be Credited ⇒ 8. Accounts Payable
This is an expense so it is debited as expenses are debited when they increase. As it is to be paid in future, it is a liability and will be credited to Payables.
c. Paid utilities expense
Account to be Debited ⇒ 14. Utilities Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
d. Received cash from customers on account
Account to be Debited ⇒ 1. Cash
Account to be Credited ⇒ 2. Accounts Receivable
Debtors are paying the company cash which will increase the cash balance so Cash is debited. The Receivables will be credited to reflect that they are decreasing from the debt settlement.
e. Paid Employees Wages
Account to be Debited ⇒ 12. Wages Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
f. Withdrew cash for personal use.
Account to be Debited ⇒ 10. Merry Walker, Drawing
Account to be Credited ⇒ 1. Cash
The owner withdrew cash for personal use and so this is sent to the Drawings account. It is debited to reflect that it is reducing capital. Cash will be credited as it is decreasing.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 10.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then this bond will trade at ________.
Answer:
$1,513.30
Explanation:
The Trading price of the Bond is it Present Value (PV) and is calculated as :
Fv = $1000
n = 5 × 2 = 10
pmt = ($1000 × 10.0%) ÷ 2 = $100
p/yr = 2
i = 7.5%
Pv = ?
Using a Financial Calculator, the Price of the Bond (PV) is $1,513.30.
Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway in making decisions. Copeland is said to have good:
Answer: strategic techniques
Explanation:
Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway in making decisions. Copeland is said to have good strategic techniques.
Strategic management techniques is necessary for organizations as it helps them plan and also implement projects in a.way that the company's mission and goals.will be achievable. Copeland is utilizing this technique well as he communicates with the workers so that company's goals can be achieved.
On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end. In its December 31, 2013, balance sheet, Rigsby would report:
a. Realized gross profit of $100,000.
b. Deferred gross profit of $100,000.
c. Installment receivables (net) of $3,200,000.
d. Installment receivables (net) of $4,
Answer:
a. Realized gross profit of $100,000.
Explanation:
In 2013, Rigsby Sales Co would realize:
Gross profit percentage = ($4,500,000 - $3,600,000) /4,500,000
Gross profit percentage = 0.20
Gross profit percentage = 20%
Gross profit to be realized is
Gross profit = Installment received * Percentage of gross profit
Gross profit = $500,000*20%
Gross profit = $100,000
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.
The company should work the extra shift if the cost of capital is between ___________ % and ___________ %
Answer:
19% to 19.7%
Explanation:
Cost of capital is the firm cost of sources of financing. It includes debt, equity and all other sources of finance with keeping the track of their required rate of return. The cost of capital is the expected return which is required by the lenders of fund.
You are given the following information concerning Parrothead Enterprises:
Debt: 13,000 6.4 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually.
Common stock: 345,000 shares of common stock selling for $76.50 per share. The stock has a beta of .90 and will pay a dividend of $3.80 next year. The dividend is expected to grow by 5 percent per year indefinitely.
Preferred stock: 10,000 shares of 4.4 percent preferred stock selling at $86 per share.
Market: 11 percent expected return, risk-free rate of 3.6 percent, and a 22 percent tax rate.
Required:
Calculate the company's WACC.
Answer and Explanation:
Please find attached
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Answer:
Darby Company
1. Determination of the total variable costs and the total fixed costs for the current year.
Total variable costs $_____22,000,000
Total fixed costs $_____10,000,000
2. Determination of (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____44 ($22,000,000/500,000)
Unit contribution margin $_____50 ($94 - $44)
3. Compute the break-even sales (units) for the current year:
Break-even sales (units) = Fixed Costs/Contribution per unit
= $10,000,000/$50 = 200,000 units
4. Compute the break-even sales (units) under the proposed program for the following year.
Break-even sales (units) = Fixed costs/Contribution per unit
= $11,800,000/$50 = 236,000
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year
Break-even sales (units) to achieve income target = (Fixed costs + Income target)/Contribution per unit
= ($11,800,000 + 15,000,000)/$50
= 536,000
6. Determine the maximum income from operations possible with the expanded plant.
Income Statement for the current year
Next Year's Financials:
Total
Sales $50,760,000 ($94 * 540,000)
Expenses:
Total variable 23,760,000 ($44 * 540,000)
Fixed costs 11,800,000 ($10,000,000 + $1,800,000)
Income from operations $15,200,000
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
Total
Sales $47,000,000 ($94 * 500,000)
Expenses:
Total variable 22,000,000 ($44 * 500,000)
Fixed costs 11,800,000 ($10,000,000 + $1,800,000)
Income from operations $13,200,000
8. Based on the data given, would you recommend accepting the proposal?
Unless the proposal results to an increase in the units sold, it is not acceptable as can be seen from (7) above. However, it is very acceptable if sales unit will increase by 40,000 units as illustrated in (6) above.
b. In favor of the proposal because of the possibility of increasing income from operations.
Explanation:
a) Data and Calculations:
Income Statement for the current year
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
Sales volume = 500,000 units
Selling price = $94
Division of costs between variable and fixed is as follows:
Variable Fixed Variable Fixed Total
Sales $47,000,000
Cost of goods sold 70% 30% $17,500,00 7,500,000 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses 75% 25% 3,000,000 1,000,000 4,000,000
Administrative exp. 50% 50% 1,500,000 1,500,000 3,000,000
Total expenses 4,500,000 2,500,000 7,000,000
Total variable and fixed costs 22,000,000 10,000,000 32,000,000
Income from operations $15,000,000
Next Year's Financials:
Variable Fixed Variable Fixed Total
Sales $50,760,000
Cost of goods sold 70% 30% $17,500,00 7,500,000 25,000,000
Gross profit $22,000,000
Expenses:
Total variable and fixed costs 22,000,000 11,800,000
Income from operations $15,000,000
Your firm has taken out a 521,000 loan with 8.6% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in 5 years. To do this, you will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?
Answer:
A. What will your monthly payments be?
$5,161.08B. What will your final payment be?
$419,650Explanation:
loan = $521,000
interest rate = 8.6% compounded monthly
loan schedule = 15 years
monthly payment = loan amount / PV annuity factor, 0.7167%, 180 periods* = $521,000 / 100.94786 = $5,161.08
No annuity table will give you the annuity factor for 0.7167%, so you must search for an annuity calculator on the web.
Then I prepared an amortization schedule to determine the balance after the 59th payment (attached file). The balance after the 59th payment is $416,649 + $3,001 in interests = $419,650.
The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 180,000 wheels annually are:
Direct materials $36,000
Direct labor $54,000
Variable manufacturing overhead $27,000
Fixed manufacturing overhead $66,000
An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier, $21,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $51,000 per year. Direct labor is a variable cost. If Talbot chooses to buy the wheel from the outside supplier, then annual net operating income would: __________
Answer:
If the company chooses to buy the wheels, income will increase by $69,000.
Explanation:
First, we need to calculate the total relevant cost of production:
Relevant cost of production:
Total cost= direct material + direct labor + avoidable overhead
Total cost= 36,000 + 54,000 + (27,000 + 45,000)
Total cost= $162,000
Now, the total cost of buying the wheels:
Total cost= 180,000*0.8 - 51,000= $93,000
Difference= 93,000 - 162,000= -$69,000
If the company chooses to buy the wheels, income will increase by $69,000.
Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT::_______
a. What are the key managerial positions that are available at the new hotels?
b. What percentage of employers in the service industry use succession planning?
c. What skills, education, and training have been provided to potential candidates?
d. What is the designated procedure for assessing and selecting potential candidates?
Answer:
b. What percentage of employers in the service industry use succession planning?
Explanation:
The answer choice number B would not be relevant for Maria Boyd strategy. Succession planning is related to the passing of ownership of the business. and Maria is not in charge of devising ownership schemes, but in charge of implementing a corporate policy in order to improve employee retetion, and reduce in this way, employee turnover.
Answer:
b. What percentage of employers in the service industry use succession planning
Explanation:
GOT IT RIGHT ON TEST 2020
The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.
Accounts Payable $39,000
Accounts Receivable 66,400
Accumulated Depreciation 21,400
Cash 80,200
Common Stock 94,700
Equipment 90,600
Income Tax Expense 10,490
Notes Payable (long-term) 1,490
Office Expenses 6,290
Rent Expense 164,100
Retained Earnings 99,790
Salaries and Wages Expense 128,600
Sales Revenue 325,400
Supplies 35,100
Required:
Prepare an adjusted trial balance at September 30, 2018.
Answer:
DEBIT SIDE $581,780
CREDIT SIDE $581,780
Explanation:
Preparation of adjusted Trial balance
Trial balance at September 30, 2018
DEBIT SIDE
Cash 80,200
Account receivable 66,400
Supplies 35,100
Equipment 90,600
Salaries and wages expense 128,600
Rent expense 164,100
Office expense 6,290
Income tax expense 10,490
TOTAL $581,780
CREDIT SIDE
Accumulated depreciation 21,400
Account payable 39,000
Notes payable 1,490
Common Stock 94,700
Retained earnings 99,790
Sales revenue 325,400
TOTAL $581,780
On September 1, 2019, Fast Track, Inc., was started with $25,000 invested by the owners as contributed capital. On September 30, 2019, the accounting records contained the following amounts:
Unearned revenue $ 500
Accounts payable 2,200
Prepaid expenses $ 1,000
Dividends declared 2,300
Accounts receivable 2,200
Office equipment 20,000
Accumulated depreciation 500
Office supplies 1,750
Cash 9,500
Office supplies expense 600
Consulting fees revenue 19,200
Rent expense 2,400
Contributed capital 25,000
Salary expense 6,900
Depreciation expense 500
Telephone expense 250
Required:
Prepare a classified income statement, a statement of retained earnings and a classified balance sheet for the first month of Fast Track’s operation.
Answer:
Fast Track, Inc.
Income Statement
For the year ended December 31, 2019
Revenues:
Consulting fees revenue $19,200
Expenses:
Office supplies expense $600 Rent expense $2,400 Salary expense $6,900 Depreciation expense $500 Telephone expense $250 ($10,650)Net income $8,550
Fast Track, Inc.
Statement of Retained Earnings
For the year ended December 31, 2019
Beginning balance September 1, 2019 $0
Net income $8,550
Subtotal $8,550
Dividends ($2,300)
Ending balance December 31, 2019 $6,250
Fast Track, Inc.
Balance Sheet
For the year ended December 31, 2019
ASSETSCurrent assets
Cash $9,500
Accounts receivable $2,200
Office supplies $1,750
Prepaid expenses $1,000
Total current assets $14,450
Property, plant and equipment
Office equipment $20,000
Accumulated depreciation ($500)
Total P, P & E $19,500
Total assets $33,950
LIABILITIES AND EQUITYCurrent liabilities
Unearned revenue $500
Accounts payable $2,200
Total liabilities $2,700
Equity
Common stock $25,000
Retained earnings $6,250
Total equity $31,250
Total liabilities + equity $33,950
You are invested in two hedge funds. The probability that hedge fund Alpha generates positive returns in any given year is 60%. The probability that hedge fund Omega generates positive returns in any given year is 70%. Assume the returns are independent. What is the probability that both funds generate positive returns in a given year? What is the probability that both funds lose money?
Answer:
42% and 12%
Explanation:
The computation is shown below:
For Alpha Fund
Positive return = 60%
Lose money is
= 1 - 0.60
= 40%
For Omega Fund
Positive return = 70%
Lose money is
= 1 - 0.70
= 0.30
Also the returns are non-dependent
Now the positive return is
= 60% × 70
= 42%
And, the probability of lose money is
= 40% × 30%
= 12%