Answer:
Joy Tucker
Indication of the effect of each transaction and the balances after each transaction:
1. Opened a business bank account with a deposit of $36,000 in exchange for common stock.
Assets increased + $36,000 (Cash $36,000) = Liabilities + Equity increased + $36,000 (Common stock $36,000)
2. Purchased office supplies on account, $1,800.
Assets increased + $1,800 (Cash $36,000, Supplies $1,800) = Liabilities increased + $1,800 (Accounts payable $1,800) + Equity (Common stock $36,000)
3. Received cash from fees earned for managing rental property, $6,750.
Assets increased + $6,750 (Cash $42,750 , Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity increased + $6,750 (Common stock + $36,000 + Retained Earnings $6,750)
4. Paid rent on office and equipment for the month, $5,000.
Assets decreased - $5,000 (Cash $37,750, Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity decreased - $5,000 (Common stock + $36,000 + Retained Earnings $1,750)
5. Paid creditors on account, $1,375.
Assets decreased - $1,375 (Cash $36,375, Supplies $1,800) = Liabilities decreased - $1,375 (Accounts payable $425) + Equity (Common stock + $36,000 + Retained Earnings $1,750)
6. Billed customers for fees earned for managing rental property, $9,500.
Assets increased +$9,500 (Cash $36,375, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity increased +$9,500 (Common stock + $36,000 + Retained Earnings $11,250)
7. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.
Assets decreased -$1,800 (Cash $34,575, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,800 (Common stock + $36,000 + Retained Earnings $9,450)
8. Paid office salaries, $3,600.
Assets decreased -$3,600 (Cash $30,975, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,600 (Common stock + $36,000 + Retained Earnings $5,850)
9. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.
Assets decreased -$1,450 (Cash $30,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,450 (Common stock + $36,000 + Retained Earnings $4,400)
10. Paid dividends, $3,000.
Assets decreased -$3,000 (Cash $27,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,000 (Common stock + $36,000 + Retained Earnings $1,400)
Explanation:
The above transactions show their effects on the accounting equation, which states that assets = liabilities + equity. Each transaction has some effects on the assets with equal effects on either the liabilities or equity. This implies that the equation is always in balance. It is the basis of the double-entry system of accounting.
Problem 3. A company wants to forecast demand for June using a two period weighted moving average with weights of .6 (for May) and .4 (for April). Calculate the forecast for June. Jan 100 Feb 150 Mar 200 Apr 500 May 800 June
Answer:
June forecast = 680
Explanation:
Since we are required to use two period weighted moving average, the forecast for June can be calculated using the following formula:
June forecast = (April figure * Weight for April) + (May figure * Weight for May) ....... (1)
Where;
April figure = 500
Weight for April = 0.4
May figure = 800
Weight for May = 0.6
Substituting the values into equation (1), we have:
June forecast = (500 * 0.4) + (800 * 0.6) = 200 + 480 = 680
What is meant when economists say that the US economy has a higher safe speed limit than it had previously
Answer:
When economists say that the US economy has a higher safe speed limit than it had previously, it means that:
Overheating the US economy does not produce high inflation.
Explanation:
The US economy is being overheated through rapid economic expansions. Some of these expansions are engendered by rapid technological changes. The US government also often indulge in aggressive economic expansions by ensuring maximum employment and capacity utilization. But these measures have been found to not distort the economy with high inflation rates. As a result, an economist can conclude that "the US economy has a higher safe speed limit than it had previously."
QUESTION 4 of 10: True or False: Secondary data is usually more expensive than collecting primary data. a) True b) False
Answer:
False, the secondary data is usally to support the primary.
Explanation:
Secondary data is usually more expensive than collecting primary data. The statement is False. Thus the correct option is B.
What is Primary data?The term "primary data" refers to information created by the researcher themselves, such as results of the survey, group interviews, and experimental results created specifically to help recognize and address the current study issue.
In order to maintain organizational records, huge government institutions, healthcare facilities, etc. generate existing data known as "secondary data." After then, the data is extracted from a wider range of file systems.
Primary data is usually more expensive than collecting secondary data as it is collected firsthand which requires time and effort for performing the particular process.
Therefore, the statement is false.
Learn more about Primary data, here:
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Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to: Group of answer choices
Answer:
6%
Explanation:
Calculation for ECE's market-to-book ratio
Using this formula
Market-to-book ratio = (MV Equity)/(BV Equity)
Let plug in the formula
Market-to-book ratio = ($24 x 25 million)/100 million
Market-to-book ratio = 6%
Therefore ECE's market-to-book ratio is closest to 6%
In 2XX7, Oz Ltd (DL) bought an abandoned lot of land on the main street in Sheffield, England for 200,000 British Pounds Sterling. On December 31. 2X10, the land was determined to be impaired and written down to 50,000 Pounds. The Great Recession ends and on December 31, 2X12, the land appreciates in value to 100,000 Pounds. The journal entry for this land on December 31, 2X12 is:
Answer:
Journal Entry
December 31, 2X12
Dr. Land Account ______50,000 pounds
Cr. Appreciation on Land 50,000 pounds
Explanation:
As Land is recorded at the value of $50,000 and it is needed to be appreciated on December 31,2X12.
The appreciation will increase the value of the land so the land account will be debited as it is a fixed asset account that has debit nature.
On the other hand, the appreciation on the land account will be credit because it is an unrecognized income/gain account that will be reported as other comprehensive income.
Adjustment = Appreciated Value - Carrying Value = 100,000 pounds - 50,000 pounds = 50,000 pounds
Note: As depreciation is not applicable on the land so, the carrying value on December 31, 2X10 will be the same on December 31,2X12 before adjustment.
In regard to employee benefits, on October 20, 2X13, the CFO of Scare Crow PLC in London is committed to terminating Aunt Emma on December 31, 2X13 and will be offering her a benefit package of 100,000 British Pounds Sterling. Aunt Emma is qualified to retired from Scare Crow on December 31, 2X16. The proper treatment of this decision is
Answer:
1 October 31, 2X13 statement: Debit termination expense for 100,000 British Pounds Sterling, Credit termination payable 100,000 British Pounds Sterling
Explanation:
The proper treatment of this decision is as follow
The benefits package cost of 100,000 British pounds will be recorded as an expense in the termination expense account. A debit entry in this account will be recorded.
On the other hand, the payment is not made to Aunt Emma, so liability will be created to record the offer of the benefits package. A credit entry in the Termination payable ( Aunt Emma ) account to record the liability equal value recorded in the expense account.
The Journal Entry will be as follow
Dr. Termination expense_100,000 British Pounds Sterling,
Cr. Termination payable _100,000 British Pounds Sterling
Suppose the local government imposes an annual lump-sum tax per plant.How will the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer be affected
Answer:
The Tax is a lump-sum which means that it does not change by output. It is therefore a fixed cost.
Average Fixed Cost ⇒ INCREASE
The new tax would increase the fixed costs which would lead to an increase in the average fixed costs.
Average Variable Cost ⇒ UNCHANGED
The tax is a fixed cost not a variable cost which means variable costs will not be affected.
Average Total cost ⇒ INCREASE
Fixed costs is a part of total cost and if that increases, the total cost will have to increase as well.
Marginal Cost ⇒ UNCHANGED
As the cost that changed is a fixed cost, the total cost will not change as a result of more production so marginal cost will not change.
Cramer Company sold five-year, 6% bonds on October 1, 2018. The face amount of the bonds was $155,000, while the issue price was $160,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2018, income statement (assume straight-line amortization)
Answer:
$2,209
Explanation:
Calculation for How much interest expense will Cramer Company report in its December 31, 2016, income statement (assume straight-line amortization)
First step is to calculate cash interest
Cash interest =$155,000 × 6% × 3/12
Cash interest=$2,325
Second step is to calculate Premium amortization
Premium amortization= $2,325 × 1/5 × 3/12
Premium amortization=116.25
Now let calculate Interest expense
Interest expense=$2,325-$116.25
Interest expense=$2,208.75
Interest expense= $2,209 (approximately)
Therefore How much interest expense will Cramer Company report in its December 31, 2016, income statement (assume straight-line amortization) is $2,209
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Dr Work in Process Inventory 540
Cr Credit - Factory Overhead 540
Explanation:
Preparation of journal entry
Dr Work in Process Inventory 540
Cr Credit - Factory Overhead 540
Calculation for the Overhead assigned to this job
First step is to calculate the Predetermined overhead rate
Predetermined overhead rate =$20,000 ÷$100,000
Predetermined overhead rate =20%
Now let calculate Overhead assigned to this job
Overhead assigned to this job = $2,700 ×0.20 Overhead assigned to this job= $540
Therefore the journal entry is :
Dr Work in Process Inventory 540
Cr Credit - Factory Overhead 540
The United States' economy is growing at a faster rate than the economy of its trading partner, the United Kingdom. As a result, the rate of American inflation is increasing.Draw correctly labeled graphs to show how the increase in inflation will affect the supply of the U.S. dollar and demand for the British pound in the foreign exchange market.Based on the scenario, what will happen to the value of the U.S. dollar
Answer:
If the U.S. economy fast paced growth causes inflation to rise, this will make the value of the U.S. dollar go down, because more U.S. dollars will be needed to buy the same amount of goods and services (including foreign currency) since what inflation causes is a loss of purchasing power of the currency.
For this reason, international investors will demand less U.S. dollars in the foreign exchange market, including British investors.
While the supply of U.S. dollars will continue to grow (because inflation is primarily caused by a rise in the money supply) demand will continue to fall, both against the British pound, and other currency. This will further lower the value of the U.S. dollar in the foreign exchange market, while appreciating the British Pound at the same time.
Why should you get a growing perpetuity?
Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. The clothing and food pairs in Jane's choice set include ________ units of clothing and ________ units of food.
Answer:
12
20
Explanation:
Here are the options to this question :
A. 10, 10
B) 25, 5
C) 12; 20
D) 16, 8
If Jane buys 10 units of clothing and 10 units of food : (10 x $25) + (10 x $10) = $350. This doesn't maximise his income
If Jane buys 25 units of clothing and 5 units of food : (25 x $25) + (5 x $10) = $675. This is greater than income
If Jane buys 12 units of clothing and 20 units of food : (12 x $25) + (20 x $10) = $500. This maximises income
If Jane buys 16 units of clothing and 8 units of food : (16 x $25) + (8 x $10) = $480. This doesn't maximise his income
if the government wishes to regular a natural monopoly so that it produces an efficient level of output it would be
Answer: Price capping, Regulation of mergers, breaking up existing monopoly
Explanation:
Price capping us setting regulations on the price that utility provider can charge. The cap is set according to several economic factors such as price cap index, inflation. Also the government would regulate mergers and break existing monopolies
Why would the government allow companies to buy and sell permits that allow companies to emit specified amounts of pollutants
Answer:
To removes bias in the allocation of emissions rights.
Explanation:
The government allow companies to buy and sell permits in order to removes bias in the allocation of emissions rights. These permits are given to the companies that allow other companies to emit a specific amount of pollutants from their industries. If there is no permits given to companies so these companies emits huge amount of pollutants which pollute the whole environment.
Identify the microeconomic topic(s) among the following: Average cost of electricity per household. Average cost of electricity per household. The unemployment rate. The unemployment rate. Fiscal policy. Fiscal policy. The price that a farmer asks for her watermelons.
Answer:
Average cost of electricity per household
The price that a farmer asks for her watermelons.
Explanation:
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
The other options are examples of macroeconomics.
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
When trade barriers began to fall, what was the motivation for much of the foreign direct investment by non-U.S. firms
Answer:
The motivations were all the advantages that the U.S. market offers.
These advantages are many, because the U.S. is a developed country, with a very large population, and a robust legal system that protects private property, including the property of non U.S. firms that invest in the country.
For these reasons, once trade barriers began to fall, many non U.S. firms took advantage of the new opportunities, and started to invest in the U.S. market.
Julio sold his stock in ABC Company for a higher price per share than he bought it for. He realized a:
Answer: Capital gain
Explanation:
Capital gain is the return that a person gets when they sell their shares for a higher price than what they bought it for. It is a capital gain because the money they invested (capital) increased and brought back more than they spent.
The reverse is called a Capital loss.
Example of Capital gain:
You buy stock in 2019 for $40 and sell it in 2020 for $100. Your capital gain is:
= 100 - 40
= $60
goods that can be bought in any quantity desired are called ?
Answer:
I think the answer is demand
Explanation:
Demand can be the quantity of any good at the desired amount.
What is the impact of a strong dollar relative to the peso for a U.S. consumer buying a car produced in Mexico
Answer: a. The car should be less expensive for the U.S. consumer.
Explanation:
If the dollar is strong relative to the peso, it means that the US dollar can buy more pesos.
If a U.S. consumers should therefore buy a car that was produced in Mexico, the car would be cheaper for them because the car would have originally be priced in pesos and with the U.S. dollar stronger, the American consumer would spend less dollars to match the price in pesos.
Mark accidentally overheard a confidential phone conversation between his boss and the district manager during which they discussed the possibility of layoffs in the sales division. Mark works in accounting, so his job is not in danger; however, a few of his friends are sales representatives for the company. What should Mark do
Answer:
-Say nothing to his co-workers since this was a private conversation and he could lose his job if his boss found out he was spreading sensitive company information
Explanation:
Since in the situation it is mentioned that Mark accidentally heard a confidential phone conversation in which the possibility of layoff in the sales division would be discussed he is not in danger but some of his friends are the sales representatives so mark would not tell anyone as it is a private conversation and he could lose the job if the boss knows that the information is spread by mark
Therefore the second option is correct
George deposited $2,000 in his bank account, which offers 5 percent compound interest calculated annually. what would be the principal amount available in george’s account at the end of two years?
Answer:
$2,205
Explanation:
The amount available after two years can be calculated using the formula
A= P x ( 1 + r) ^n
where A = amount
P= principal: $2000
r = interest rate : 5%, or 0.05
n = number of compound periods: 2
A= $2000 x ( 1 + 0.05)^2
A= $2000 x1.1025
A= $2,205
Principal amount after two years = $2,205
Answer:
2,205
Explanation:
I got it right on the test
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
Answer:
Imports.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world.
In this scenario, the Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of imports.
An import can be defined as a type of trade which typically involves the purchase of goods and services from a foreign country for domestic use.
Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true? Higher inflation expectations increase the nominal interest rate demanded by investors. The yield on U.S. Treasury securities always remains static.
Answer:
Higher inflation expectations increase the nominal interest rate demanded by investors
Explanation:
In the case when the rate of interest measures when everything remains the same so if there is high inflation so it would be expected that it also rise the nominal rate of interest that demanded by investors as the inflation would be the value that ascend over a time frame
Hence, the same is to be considered
Therefore the first option is correct
10 points Print Item 3 As of December 31, Year 2, Moss Company had total cash of $147,000, notes payable of $84,700, and common stock of $51,500. During Year 3, Moss earned $27,000 of cash revenue, paid $15,500 for cash expenses, and paid a $2,100 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 2. b.
Answer:
the retained earning for the year 2 is $10,800
Explanation:
The computation of the retained earning as on year 2 is shown below:
= Cash - note payable - common stock
= $147,000 - $84,700 - $51,500
= $10,800
We simply deduct the note payable and the common stock from the cash so that the retained earning for the year 2 could come
hence, the retained earning for the year 2 is $10,800
Nickel Inc. bought $500,000 of 3-year, 6% bonds as an investment on December 31, 2017 for $530,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2018, the issuer retired $100,000 of the bonds at 116. As a result of the retirement, Nickel will report a:
Answer:
the gain would be reported i.e. $10,778
Explanation:
The computation is shown below:
The Value of 100000 bonds is
= $530,000 ÷ $500,000 × 100,000
= $106,000
Now
Premium amortization in 4 month is
= $7,000 ÷ 36 months × 4 months
= $778
Now
Carrying value on may 1, 2018 is
= $106,000 - $778
= $105,222
Now
Retirement value is
= 100,000 × 1.16
= 116,000
So,
Gain on retirement is
= 116,000 - 105,222
= $10,778
Hence, the gain would be reported i.e. $10,778
An annuity immediate pays 15 at the end of years 1 and 2, 14 at the end of years 3 and 4 and so on. The payments decrease by 1 every second year until nothing is paid. The effective annual interest rate is 6%. Calculate the present value of this annuity
Answer:
$138.63
Explanation:
I used an excel spreadsheet and the NPV function to determine the present value of this annuity. The present value of this annuity is $138.63
ear, Inc. generates a $100,000 net operating loss in the current year. Plum, Inc. generates $500,000 of taxable income. Compute the current year tax if Pear and Plum do/do not file a consolidated return.
Answer:
Consolidated=$84,000
Not consolidated= $105,000
Explanation:
Computation for the current year tax if Pear and Plum do/do not file a consolidated return.
Computation for Consolidated
Taxable income = ($500,000 - $100,000) x 21%
Taxable income =$400,000×21%
Taxable income = $84,000
Computation for Not consolidated
Not consolidated= $500,000 x 21%
Not consolidated= $105,000
Therefore the current year tax if Pear and Plum do/do not file a consolidated return will be :
Consolidated=$84,000
Not consolidated= $105,000
Which is NOT a step in a career plan?
A.
Join a CTSO
B.
Finish high school
C.
Complete a vocational certification
D.
Go on vacation to the beach
Answer:
D. Go on vacation to the beach
Explanation:
A vacation is not a career... it is relaxing
According to O*NET, what are common skills needed
by Tour Guides? Select three options.
active listening
science
speaking
social perceptiveness
troubleshooting
equipment maintenance
repairing
Answer:
1 3 4
Explanation:
Answer:
1 3 and 4
Explanation:
...
Which best describes what injector factors bring to an economic system?
factors of production
imports
consumers
money
Answer: Money
Explanation:
Money is one of the injector factor that is necessary for bringing the economic system. The injection of money helps in boosting economy of any country or region. This also helps in investment, strengthening the government to take necessary measures for development, and export. Money can be used to purchase raw materials to produce more number of goods and it enables the customers to purchase those goods and services. This exerts a positive impact on the circulation of economy.
Answer:
The answer to the question is D. Money