Answer:
Transactions Appropriate Journal
a. Cash Payment Journal
b. Cash Receipt Journal
c. Cash Payment Journal
d. Cash Receipt Journal
e. General Journal
f. General Journal
g. Cash Receipt Journal
h. Cash Payment Journal
i. Adjusting Journal
j. Purchases Journal
k. Cash Receipt Journal
l. Adjusting Journal
m. Sales Journal
n. Cash Payment Journal
Explanation:
Journals are used to record transactions as they occur on a daily basis. They are the first records made of transactions. Journals indicate the accounts involved in each transaction. They indicate the accounts to be debited and the accounts to be credited in accordance with the double entry system of accounting.
Explain differences between international market and global market?
Answer:
International marketing means that marketing decisions are made in the individual countries, with staff who is the most knowledgeable about the target markets. Global marketing views the whole world as one, and creates products that will only require weeks to fit into any regional marketplace.
Explanation:
Oltman Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year:
Direct materials $25,000
Direct labor $22,000
Advertising expense $15,000
Rent on factory building $13,500
Sales salaries $28,000
Depreciation on factory equipment $6,500
Indirect materials $10,000
Insurance on factory equipment $12,000
Oltman estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be:___________
a) $1.05 per machine hour
b) $1.00 per machine hour
c) $2.10 per machine hour
d) $1.60 per machine hour
Answer:
Predetermined manufacturing overhead rate= $2.1 per machine hour
Explanation:
First, we need to calculate the estimated total overhead:
Total estimated overhead= Rent on factory building + Depreciation on factory equipment + Indirect materials + Insurance on factory equipment
Total estimated overhead= 13,500 + 6,500 + 10,000 + 12,000
Total estimated overhead= $42,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 42,000 / 20,000
Predetermined manufacturing overhead rate= $2.1 per machine hour
On October 1st, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year-end adjusting entry is required to increase:
Answer:
Interest payable $1,050
Explanation:
Based on the information given F the company's fiscal year ends on December 31st, Hillsmith should make a year-end adjusting entry to increase: INTEREST PAYABLE $1,050
Interest payable $1,050
(7%*60,000*3/12)
(October 1st December 31st=3 months)
Financial slack:
a. is associated with high leverage
b. allows firms to take advantage of good investment opportunities
c. solves any agency costs when managers want to empire-build
d. is a term that describes a lazy CFO
Answer:
B
Explanation:
Financial slack is when a firm has unused capacity as a result of debt that is yet to be utilized. It allows firms to take advantage of good investment opportunities
financial slack is usually in the form of unused cash
During its 2019 fiscal year, a city receives a grant from the state to use on a worthy city project as determined by the city council. No other eligibility requirements exist, but the state requires that the grant proceeds not be spent before the city's 2020 fiscal year. The city council decides to hire a police officer who is to educate young people about the dangers of using illegal drugs. The grant is for $75,000. The state pays the city $75,000 for the grant during its 2019 fiscal year. How should the city report the receipt of the grant proceeds from the state in its Special Revenue Fund?
Answer:
Dr Cash $75,000
Cr Deferred inflows of resources--grant $75,000
Explanation:
Based on the information given we were told that The GRANT is for the amount of $75,000 in which the The state pays the city the amount of $75,000 for the GRANT during its 2019 fiscal year. Therefore the city should report the RECEIPT OF THE GRANT PROCEEDS from the state in its Special Revenue Fund as:
Dr Cash $75,000
Cr Deferred inflows of resources--grant $75,000
(To record receipt of the grant proceeds)
Select an organization and identify and evaluate the components of its Strategic Plan (i.e., Vision, Mission, Values, Core Competencies, Goals, Objectives, Action/Implementation Plan, Metrics, etc.) by answering the following questions:
• Does the plan convey an overall purpose and the desired results of the organization, and how to achieve those results?
• Does the Mission Statement clearly explain why the organization exists?• Does the Vision Statement describe where the organization is headed, what it intends to be, or how it wishes to be perceived in the future? Clear, concise, and memorable?• Based on the content of the plan, do you think the plan has adequately considered the strategic environment?
• Do the goals and objectives support the vision, mission, values, core competencies, etc.?
• Is the plan understandable?
• What are your other observations and reactions to the plan? What do you like? What could be improved?
Answer:
Nestle with a tag line of "Good Food, Good Life" its vision is to enhance quality of life and contribution to a healthier future for all individuals, this vision conveys the plan and results clearly. Nestle is achieving the results by providing good quality food to its consumers.
Explanation:
Nestle with a tag line of "Good Food, Good Life" its vision is to enhance quality of life and contribution to a healthier future for all individuals, this vision conveys the plan and results clearly. Nestle is achieving the results by providing good quality food to its consumers.
Mission statement clearly explains that Nestle exist to provide healthier living for individuals. The vision describes the present and future of the betterment of the health of individuals, the vision is clear concise and memorable.
Environment is going towards better health standards people want a healthier and better quality of life which is connected to Nestle's vision and mission.
The goals of Nestle is set in line with the original mission and vision of the organization .
Nestle is helping with fighting hunger, in the situation of global pandemic Nestle fed more than 8 million people. I think this was a great initiative and this can be further more expanded by regularly feeding those in need and not just during the pandemic.
The equity section of Cyril Corporation’s balance sheet shows the following. Preferred stock—6% cumulative, $25 par value, 10,000 shares issued and outstanding $ 250,000 Common stock—$8 par value, 100,000 shares issued and outstanding 800,000 Retained earnings 535,000 Total stockholders’ equity $ 1,585,000 Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in arrears at the current date.
Answer:
1. No preferred dividends are in arrears at the current date.
Book value per share of common stock = Common Shareholder equity / Number of common stock shares
= (Total shareholders equity - Preferred stock) / Number of common stock shares
= (1,585,000 - 250,000) / 100,000
= $13.35 per share
2. Three years of preferred dividends are in arrears at the current date.
Preferred stock = (Preferred stock + Accumulated dividends)
= 250,000 + (6% * 250,000 * 3 years)
= 295,000 shares
Book value per share of common stock = (1,585,000 - 295,000) / 100,000
= $12.90 per share
Suppose that the government imposes a new $1 per-unit tax on the (2pts) production of soft drinks. The result would be a(n)_________in the equilibrium price of soft drinks and a(n) _________in the equilibrium quantity of soft drinks.
a. decrease; increase
b. increase; decrease
c. decrease; decrease
d. increase; increase
Answer:
b. increase; decrease
Explanation:
In the case when the government impose the $1 per tax unit for the soft drinks production so it should increased the equilibrium price but at the same time it decreased the equibrium quantity as the price and the demand have an inverse relationship that represent the law of demand
So as per the given situation, the option b is correct
Haier has achieved great success in becoming a global leader in the appliance industry and is doing so with these beneficial strategies.
a. True
b. False
Answer:
a. True
Explanation:
It is correct to say that a company like Haier, which has become a global leader in the household appliance industry segment, has developed a beneficial strategy for success, as entering a global market can be a great challenge for companies, as it requires business, product and services of the company to the local market that includes cultural and social differentiation in the preferences for products and services. So it is correct to say that the company has adopted a beneficial global strategy that gives it significant advantages such as market positioning, cost reduction, greater competitive capacity, greater brand value, increased profitability, etc.
The Murdock Corporation reported the following balance sheet data for 2021 and 2020:
2021 2020
Cash $97,355 $33,755
Available-for-sale debt securities (not cash equivalents) 24,500 103,000
Accounts receivable 98,000 84,450
Inventory 183,000 161,200
Prepaid insurance 3,120 3,800
Land, buildings, and equipment 1,286,000 1,143,000
Accumulated depreciation (628,000) (590,000)
Total assets $1,063,975 $939,205
Accounts payable $92,540 $166,670
Salaries payable 27,200 33,500
Notes payable (current) 41,200 93,000
Bonds payable 218,000 0
Common stock 300,000 300,000
Retained earnings 385,035 346,035
Total liabilities and shareholders' equity $1,063,975 $939,205
Additional information for 2021:
(1) Sold available-for-sale debt securities costing $78,500 for $84,800.
(2) Equipment costing $20,000 with a book value of $6,800 was sold for $8,700.
(3) Issued 6% bonds payable at face value, $218,000.
(4) Purchased new equipment for $163,000 cash.
(5) Paid cash dividends of $29,000.
(6) Net income was $68,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.
Answer:
The Murdock Corporation
Statement of Cash Flows
For the year ended December 31, 2016
Operating Activities:
Net income $68,000
Less:
Gain from sale of available-for-sale 6,300
Gain from sale of equipment 1,900
Operating cash $59,800
Working capital changes:
Accounts receivable -13,550
Inventory -21,800
Prepaid insurance 680
Accounts payable -$74,130
Salaries payable -6,300
Notes payable (current) -51,800
Net operating cash flows ($107,100)
Investing Activities:
Sale of Available-for-sale securities $84,800
Sale of Equipment 8,700
Purchase of new equipment -163,000
Net investing cash flows ($69,500)
Financing Activities:
Issue of 6% bonds payable $218,000
Payment of cash dividends -29,000
Net financing cash flows $189,000
Net cash flows $12,400
Explanation:
a) Data and Calculations:
2021 2020 Change
Cash $97,355 $33,755 +$63,600
Available-for-sale debt securities
(not cash equivalents) 24,500 103,000 -78,500
Accounts receivable 98,000 84,450 +13,550
Inventory 183,000 161,200 +21,800
Prepaid insurance 3,120 3,800 -680
Land, buildings, and equipment 1,286,000 1,143,000 +143,000
Accumulated depreciation (628,000) (590,000)
Total assets $1,063,975 $939,205
Accounts payable $92,540 $166,670 -$74,130
Salaries payable 27,200 33,500 -6,300
Notes payable (current) 41,200 93,000 -51,800
Bonds payable 218,000 0 +218,000
Common stock 300,000 300,000 0
Retained earnings 385,035 346,035
Total liabilities and
shareholders' equity $1,063,975 $939,205
Additional Data:
1. Sale of Available-for-sale securities $84,800
Gain from sale of available-for-sale $6,300
2. Sale of Equipment $8,700
Gain from sale of equipment $1,900
3. Issue of 6% bonds payable $218,000
4. Purchase of new equipment $163,000
5. Payment of cash dividends $29,000
6. Net income $68,000
On December 31, a $500,000 bond issue on which there is an unamortized premium of $67,000 is redeemed for $490,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Bonds Payable $500,000
Dr Premium on Bonds Payable $67,000
Cr Gain on Redemption of Bonds $77,000
Cr Cash $490,000
Explanation:
Preparation of the journal entry to Record the redemption of the bonds
Dr Bonds Payable $500,000
Dr Premium on Bonds Payable $67,000
Cr Gain on Redemption of Bonds $77,000
($500,000 + $67,000 - $490,000)
Cr Cash $490,000
(To record redemption of bonds)
you are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. you have access to an account that earns a 7% rate of return. a. how much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement
Answer:
Amount needed to have in account = 99272
Explanation:
Below are the calculations:
Annual income after retirement, annuity = $8000
The time period or the retirement life = 30 years
The Interest rate earned by account = 7%
The amount in the account at the time of retirement = Annuity (P/A, r, n)
The amount in the account at the time of retirement = 8000 (P/A, 7%, 30)
The amount in the account at the time of retirement = 8000 x 12.409
The amount in the account at the time of retirement = 99272
Based on recent statistics, which of the following individuals would have the lowest probability of being unemployed?
a. a 45-year-old white male.
b. a 50-year-old white female.
c. a 32-year-old African American female.
d. a 19-year-old African American male.
e. a 17-year-old white female.
Answer:
a. a 45-year-old white male.
Explanation:
Middle aged white males have the lowest unemployment rate in the United States. Employment ratios for white and asian men are approximately the same, 72.8%, which is higher than any other demographic group. Besides the normal prejudices that exist in society, these two groups also have the highest average education level (i.e. more college years)
The most recent data from the annual balance sheets of Pellegrini Southern Corporation and Jing Foodstuffs Corporation are as follows:
Balance Sheet December 31st (Millions of dollars)
Jing Foodstuffs Pellegrini Southern Jing Foodstuffs Pellegrini Southern
Corporation Corporation Corporation Corporation
Assets Liabilities
Current assets Current liabilities
Cash $4,879 $3,136 Accounts payable $0 $0
Accounts receivable 1,785 1,148 Accruals 1,076 0
Inventories 5,236 3,366 Notes payable 6,096 5,737
Total current assets $11,900 $7,650 Total current liabilities $7,172 $5,737
Net fixed assets Long-term bonds 8,765 7,013
Net plant and equipment 9,350 9,350 Total debt $15,937 $12,750
Common equity
Common stock $3,453 $2,763
Retained earnings 1,860 1,487
Total common equity $5,313 $4,250
Total assets $21,250 $17,000 Total liabilities $21,250 $17,000
and equity
Pellegrini Southern Corporation’s current ratio is___, and its quick ratio is___; Jing Foodstuffs Corporation’s current ratio is___, and its quick ratio is___. Note: Round your values to four decimal places.
Which of the following statements are true?
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.
Answer:
Pellegrini Southern Corporation and Jing Foodstuffs Corporation
1. Pellegrini Southern Corporation’s current ratio is_1.3334__, and its quick ratio is_0.7467__; Jing Foodstuffs Corporation’s current ratio is_1.6592__, and its quick ratio is_0.9292__.
2. The true statements are:
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.
Explanation:
a) Data and Calculations:
Balance Sheet December 31st (Millions of dollars)
Jing Pellegrini Jing Pellegrini
Foodstuffs Southern Foodstuffs Southern
Assets Liabilities
Current assets Current liabilities
Cash $4,879 $3,136 Accounts payable $0 $0
Accounts receivable 1,785 1,148 Accruals 1,076 0
Inventories 5,236 3,366 Notes payable 6,096 5,737
Total current assets $11,900 $7,650 Total current liabilities $7,172 $5,737
Net fixed assets Long-term bonds 8,765 7,013
Net plant/equipment 9,350 9,350 Total debt $15,937 $12,750
Common equity
Common stock $3,453 $2,763
Retained earnings 1,860 1,487
Total common equity $5,313 $4,250
Total assets $21,250 $17,000 Liabilities/Equity $21,250 $17,000
Jing Pellegrini
Foodstuffs Southern
Current Ratio: 1.6592 1.3334 (Current assets/Current liabilities)
Quick Ratio 0.9292 0.7467 (Current assets-Inventory/Current Liabilities)
Redeker Company purchased equipment on January 1, 2016, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Required:
Compute the amount of depreciation expense for the year ended December 31, 2016, using the straight-line method of depreciation
Answer:
to the end of the sixth year;
b/ The number of years required before the capital stock exceeds $200 000.
If the straight-line method of depreciation were used in the given case, the amount of depreciation expense for the year ending December 31, 2016, would be $17,000.
What is the depreciation?Depreciation is the measurement for the decline in any assets because over time, wear, use, and tear, or devolution cause an asset's monetary value to drop.
Depreciation, or a decline in asset value, can be brought forward on by a variety of other variables, such as bad market conditions, etc.
Computation of depreciation:
According to the given case,
Equipment Cost = $90,000
Salvage Value = $5,000
Useful Life = 5 years
Depreciation per Year = (Cost of asset – Salvage Value)/5 years
Depreciation per Year = ($90,000-$5,000/5)
Depreciation per Year = $17,000
Therefore, the depreciation as per straight line method would be $17,000.
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Identify the financial institution based on each description.
a. They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.
b. They underwrite, distribute, and design investment securities for corporations to help them raise capital.
c. They are asset pools that invest in securities that have a potential to give stable returns.
d. They collect a pool of funds from investors for the purpose of diversifying risk, earning interest or dividends, and/or generating profits from the investments' increased value.
Answer:
a. They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns. ⇒ PENSION FUNDS.
Pensions are retirement benefits paid to employees when they retire so employers set up funds called Pension funds where they pay in contributions that grow overtime so that they will pay off employees when they retire.
b. They underwrite, distribute, and design investment securities for corporations to help them raise capital. ⇒ INVESTMENT BANKS.
Investment banks play a very big role in the capital markets as they are the ones who help companies raise capital in Initial Public Offerings (IPOs). They help them underwrite, design and distribute the securities as they have an expertise in this.
c. They are asset pools that invest in securities that have a potential to give stable returns. ⇒ PENSION FUNDS
Pension funds grow by investing in securities that will bring in low risk, stable returns so that the retirement benefits of people are safe.
d. They collect a pool of funds from investors for the purpose of diversifying risk, earning interest or dividends, and/or generating profits from the investments' increased value. ⇒ MUTUAL FUNDS
Mutual funds pool money together from various investors and then invest in various companies and industries and returns made are then paid to the investors.
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $590 million. The fair value of Harman's identifiable tangible and intangible assets totaled $631 million, and the fair value of liabilities assumed by Pesky was $169 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information:
Fair value of Harman, Inc. $570 million
Fair value of Harman's net assets (excluding goodwill) 510 million
Book value of Harman's net assets (including goodwill) 594 million
Required:
a. Determine the amount of goodwill that resulted from the Harman acquisition.
b. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2021, if any.
c. If an impairment loss is required, prepare the journal entry to record the loss.
Answer:
Explanation:
Calculation of Goodwill -
$ in Million $ in Million
Consideration given $ 590
Less: F.V of Harman's net assets
Assets
631
Less: F.V of Liabilities
(169) (462)
Goodwill on acquisition $ 128
2. The impairment loss Pesky would recognize at the end of year 2021 is $ 68 million , since the book value of the net assets exceeds its fair value.
Calculation :-
$ in million $ in million
Goodwill 128
Less Implied value of goodwill
F.V of Harman's, Inc
570
F.V of Harman's net assets (excluding Goodwill)
(510) (60)
Impairment Loss $ 68
3. Journal entry to record loss:
Dr Cr
Loss on impairment of goodwill Dr $ 68 million
Goodwill
$ 68 million
(To record the impairment loss
The Assembly Department started the month with 24,800 units in its beginning work in process inventory. An additional 309,800 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,800 units completed and transferred to the next processing department during the month. How many units were in its ending work in process inventory? a. 314,800 b. 334,600 c. 304,800 d. 364,400
Answer:
c. 304,800
Explanation:
Calculation to determine How many units were in its ending work in process inventory
Using this formula
Ending work in process inventory Units= Beginning work in process inventory Units + Units started into production or transferred in - Units in ending work in process inventory
Let plug in the formula
Ending work in process inventory Units= 24,800 + 309,800 - 29,800
Ending work in process inventory Units = 304,800
Therefore How many units were in its ending work in process inventory is 304,800
The petty cash fund of the Brooks Agency is established at $250. At the end of the current period, the fund contained $172 and had the following receipts: entertainment, $41; postage, $25; and printing, $12.
Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
a. Fund amount is being reduced.b. Fund amount is being increased.c. Fund is being eliminatedd. Fund is being established.
Answer:
a.
Date Account Title Debit Credit
XX-XX-XX Petty Cash $250
Cash $250
b.
Date Account Title Debit Credit
XX-XX-XX Entertainment expense $41
Postage $25
Printing $12
Petty Cash $ 78
Date Account Title Debit Credit
XX-XX-XX Petty Cash $78
Cash $78
2. Reasons why a Petty Cash account would be credited:
a. Fund amount is being reduced.
c. Fund is being eliminated
When the fund is being reduced by expenses, it is credited as shown above.
When the fund is to be eliminated, it will be credited so as to remove all the money in it.
The real risk-free rate of interest, k*, is 4 percent, and it is expected to remain constant over time. Inflation is expected to be 2 percent per year for the next four years, after which time inflation is expected to remain at a constant rate of 5 percent per year. The maturity risk premium is 0% for securities with maturities of 1 year or less, 0.1% in year 2, and increases by 0.1% per year thereafter. What is the yield on a 10-year Treasury bond
Answer:
8.3%
Explanation:
Real risk - free rate of interest ( k* ) = 4%
Inflation for next four ( 4 ) years = 2% per year
Inflation rate after four years = 5%
maturity risk premium = 0.1 ( t - 1 )%
Determine Yield on a 10-year Treasury bond
t = bond's maturity
Yield = Real risk - free rate + maturity risk premium + inflation rate
Inflation rate for 10 years = ( 4 + 30 ) / 10 ) % = 3.4%
Yield = 4% + 0.1(10- 1)% + 3.4
= 4% + 0.9% + 3.4%
= 8.3%
Categorize each scenario as describing a movement along a demand curve or a shift of the demand curve.
a. College students rush and buy discount furniture to take advantage of a one-day sale
b. Students eat out more often as the federal government increase how much grant money it provides
c. College students reduce how detergent they for each of laundry response to higher detergent prices.
d. College students purchase many more energy drinks during finals week than during the rest of the semester.
Answer:
a, a movement along a demand curve
b. shift of the demand curve.
c. a movement along a demand curve
d. shift of the demand curve.
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.
b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward
c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents
d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve
Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000.
Based on the preceding information, what amount of consolidated net income should be reported in 20X8?
a. $3,262,000
b. $4,050,000
c. $3,254,100
d. $3,122,000
Answer: a. $3,262,000
Explanation:
Consolidated income is simply the income that both companies got from their separate operations for the year because Small Inc is a subsidiary of Big Corporation so both incomes have to be added to find the total company income:
= 2,567,000 + 695,000
= $3,262,000
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
How does the firm's marginal revenue (MR) compare to its marginal cost (MC) when it increases its output from 150 units to 151 units?
a. MR exceeds MC by $7.95.
b. MR exceeds MC by $11.05.
c. MC exceeds MR by $11.05.
d. MC exceeds MR by $13.50.
Answer:
A
Explanation:
Marginal cost is the change in total cost when output is increased by 1 unit
total cost = average cost x quantity
Marginal cost = (151 x 24.55) - (150 x 24.50) = 32.05
marginal
Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. The related adjusting entry would include a debit to: A. Accounts Receivable and a credit to Service Revenue. B. Unearned Revenue and a credit to Service Revenue. C. Cash and a credit to Service Revenue. D. Cash and a credit to Unearned Revenue.
Answer:
B. Unearned Revenue and a credit to Service Revenue.
Explanation:
The adjusting entry is given below:
Unearned revenue $1,000
To Service revenue $1,000
(Being service revenue is recorded)
Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue
Therefore the option b is correct
The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow.GENERAL JOURNALACCOUNTING EQUATIONDATE ACCOUNT POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY TITLE REF.Oct. 15 Salaries Expense 647,800.00 ? Wages Expense 172,200.0 ? Social Security Tax Payable 49,200.00 ? Medicare Tax Payable 12,300.00 ? Employees Federal Income Tax Payable 147,600.00 ? Medical Insurance Payable 90,200.00 ? Retirement Contributions Payable 123,000.00 ? Salaries Payable 397,700.00 ? 15 Payroll Tax Expense 62,864.00 ? Social Security Tax Payable 49,200.00 ? Medicare Tax Payable 12,300.00 ?Federal Unemployment Tax Payable 176.00 ?State Unemployment Tax Payable 1,188.00 ?In order to confirm the previous clerk’s payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary.1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll.2. What is the total payroll for Copperfield and Company shown in these journal entries?3. What is Copperfield and Company’s share of FICA taxes in this payroll?
Answer:
1. We have:
Payroll subject to the federal unemployment taxes = $22,000
Payroll subject to the state unemployment taxes = $22,000
2. Total payroll = $820,000
3. FICA taxes in payroll = $61,500
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now provided as follows:
1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll.
Payroll subject to the federal unemployment taxes = Federal unemployment tax payable / Federal unemployment tax rates = 176 / 0.8% = $22,000
Payroll subject to the state unemployment taxes = State unemployment tax payable / State unemployment tax rates = 1,188 / 5.4% = $22,000
2. What is the total payroll for Copperfield and Company shown in these journal entries?
Total payroll = Salaries Expense + Wages Expense = 647,800 + $172,200 = $820,000
3. What is Copperfield and Company’s share of FICA taxes in this payroll?
FICA taxes in payroll = Social security tax payable + Medical tax payable = $49,200 + 12,300 = $61,500
Explain the four basic costs curves
Answer:
The output is represented along OX and cost along OY; AFC curve represents average fixed cost. AVC curve represents average variable cost, ATC curve represents average total cost (i.e., total of AFC and AVC and is called AC, i.e., average cost). MC curve represents marginal cost
Explanation:
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The price of Microsoft is $30 per share and that of Apple is $58 per share. The price of Microsoft increases to $39 per share after one year and to $42 after two years. Also, shares of Apple increase to $66 after one year and to $71 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return over year 1 and year 2? Assume no dividends are paid.
A) 19.32%, 7.62%
B) 28.01%, 8.38%
C) 23.18%, 11.43%
D) 22.22%, 13.71%
Answer: See explanation
Explanation:
The total portoflio value at the time of purchase will be:
= (100 × $30) + (100 × $58)
= $3000 + $5800
= $8800
Total Portoflio Value after 1 Year will be:
= (100 × $39) + (100 × $66)
= $3900 + $6600
= $10500
Total Portoflio Value after Year 2 will be:
= (100 × $42) + (100 × $71)
= $4200 + $7100
= $11300
Portfolio Return (Year 1) will now be:
= (10500 - 8800)/8800 × 100
= 1700/8800 × 100
= 19.32%
Portfolio Return (Year 2) will be:
= (11300 - 10500)/10500 × 100
= 800/10500 × 100
= 7.62%
Reliance is an example of a
1 Product Line
2 Product
3 Product Mix
4 Product Variety
profession in medical are not practiced for money but for public welfare
Answer:
That's true but some people do it for money
if a Doctor decrease his price than poor people can get a better health care for them it.
Explanation:
It has been said that a profession is not a trade and not an industry .
yeah
The most recent financial statements for Summer Tyme, Inc., are shown here:
Income Statement Balance Sheet
Sales $3,700 Current assets $4,500 Current liabilities $960 Costs 2,400 Fixed assets 5,200 Long-term debt 3,620 Taxable income $1,300 Equity 5,120 Taxes (21%) 273 Total $9,700 Total $9,700 Net income $1,027
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
EFN = needed new long-term debt and/or external equity
Answer:
External finance needed = $2,088
Explanation:
Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.
From the Proforma Balance Sheet in the attached excel file, we have:
Total Assets = $12,610
Total Liabilities = $10,448
Therefore, we have:
External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088