Answer:
Quantitative measures, is the right answer.
Explanation:
Recession is the period of economic contraction during which the aggregate demand falls. During this period, no new investment and employment generated. Therefore, those federal policies that increase the purchasing power of people and help to increase the aggregate demand or spending are implemented. Thus, quantitative measures can be taken, like a decrease in bank rate, open market operations ( purchase of govt. bonds and securities), etc. All policies will have the aim of providing the money supply in the economy so that new investment can be made and employment can be generated.
From the standpoint of promoting successful strategy execution, it is important that the firm's motivation and reward system:_________
a) be completely free of such elements as tension, pressure, anuiety, job insecurity, and tight deadlines-a no- pressure/no-adverse-consequences work envieonment is essential
b) emphasize only positive types of rewards positive rewards but olso carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, hough performance is subpar
c) reduce job insecurity and ve engloyewi an incentive to stay buy and work hard.
Answer: b. emphasize only positive types of rewards positive rewards but olso carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, although performance is subpar
Explanation:
From the standpoint of promoting successful strategy execution, it is important that the firm's motivation and reward system emphasize only positive types of rewards positive rewards but also carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, although performance is subpar.
This will help increase motivation at work as those that were below par will strive harder an put in more effort.
a) be completely free of such elements as tension, pressure, anxiety, job insecurity, and tight deadlines—a no-pressure/no-adverse-consequences work environment is essential.
What should it emphasize?It should emphasize positive rewards while maintaining fairness and not denying rewards to employees who put forth good effort, even if their performance is subpar.
Reducing job insecurity and providing incentives to stay and work hard will further promote successful strategy execution. Creating a supportive and motivating atmosphere encourages employees to focus on their tasks and achieve long-term success, fostering a positive organizational culture that drives effective strategy implementation.
Option A is correct.
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K-Too Everwear corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw material costs and $26.45 per pair in variable labor expense. The shoes sell for $165 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. What were total production costs?
Answer:
$10,783,500
Explanation:
For determining the total production costs first we need to find out the variable cost per unit which is shown below:-
Variable cost per pair = Variable raw material cost per pair + Variable labor expense per pair
= $35.85 + $26.45
= $62.30
Total production costs = Variable cost per pair × Number of pairs produced + Fixed costs
= $62.30 × 145,000 + $1,750,000
= $9033500 + $1,750,000
= $10,783,500
Using the data below for the Ace Guitar Company:
A Region B Region
Sales $767,000 $413,000
Cost of goods sold 291,500 156,900
Selling expenses 184,100 99,100
Service department expenses
Purchasing $198,200
Payroll accounting 132,200
Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.
A Region $
B Region $
Answer:
A Region $76,640
B Region $41,360
Explanation:
Calculation to Determine the divisional income from operations for the A and B regions.
First step is to find the Percentage of sales allocations:
Using this formula
Percentage of sales allocation= Sales amount/Total sales ×100
Let plug in the formula
A Region = $767,000 ÷($ $767,000+$413,000)×100
A Region=$767,000/$1,180,000 ×100
A Region= 0.65×100
A Region =65%
B Region =$413,000/($767,000+$413,000)×100
B Region=$413,000/$1,180,000 ×100
B Region=0.35×100
B Region=35%
Second step
Service department expenses=
Purchasing $198,200
Add Payroll accounting $132,200
=$330,400
Third step is the allocation of support department expenses for both A and B Region
A Region = 65% × $330,400 = $214,760
B Region=35%×$330,400=$115,640
Last step is to calculate for the Operating income of both region
A Region Operating Income = $767,000-$291,500-$184,100-$214,760
A Region Operating Income = $76,640
B Region Operating Income =$413,000-$156,900-$99,100-$115,640
B Region Operating Income =$41,360
Therefore tlthe divisional income from operations for the A and B regions will be :
A Region $76,640
B Region $41,360
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change–related services represent 60% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 40% of its sales and provides a 45% contribution margin ratio. The company’s fixed costs are $15,579,000 (that is, $77,895 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even.
Answer:
Dollar amount of oil changes=$31,158,000
Dollar amount of brake repairs=$20,772,000
Explanation:
Calculation for the dollar amount of each type of service that the company must provide in order to break even.
First step is to find the Total contribution margin for both Oil changes and Brake repairs
Sales 60% 40%
Contribution margin 20% 45
Oil changes Brake repairs
Contribution margin
12%(60%×20%) 18%(40%×45%)
Total contribution margin =30%
(12%+18%)
Second step is to calculate for the Break-even point
Using this formula
Break-even point =Fixed cost/Contribution margin
Where,
Fixed cost =$15,579,000
Contribution margin=30%
Let plug in the formula
Break-even point =$15,579,000/0.30
=$51,930,000
Third step is to calculate for the Dollar amount of oil changes and Brake repairs
Using this formula
Dollar amount of oil changes=Break-even point×Oil changes Sales percentage
Let plug in the formula
Dollar amount of oil changes =($51,930,000×60%)
Dollar amount of oil changes=$31,158,000
Dollar amount of brake repairs
Using this formula
Dollar amount of brake repairs=Break-even point× brake repair Sales percentage
Let plug in the formula
Dollar amount of brake repairs=$($51,930,000×40%)
Dollar amount of brake repairs=$20,772,000
Therefore the Dollar amount of oil changes will be $31,158,000 while the Dollar amount of brake repairs will be $20,772,000.
Which of the following professional services would be considered an attestation engagement ?
A. A consulting service engagement to provide computer-processing advice to a client
B. An engagement to report an statutory requirements.
C. An income tax engagement to prepare federal and state tax returns.
D. The compilation of financial statements from a client's financial records.
Answer: B. An engagement to report an statutory requirements.
Explanation:
An Attestation requirement refers to when the information provided by a client is reviewed and reported on based on the procedures and requirements on how the process should be conducted.
It is usually done by a third party from the Auditor and can be done on internal control functions, and financial forecasts.
Reporting on statutory requirement falls under here as the goal would be to report on the company's compliance with said requirements.
1. Del Gato Clinic's cash account shows a $13,510 debit balance and its bank statement shows $13,575 on deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,527.
The June 30 bank statement lists a $20 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $289 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $298.
The June 30 cash receipts of $2,451 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
2. Del Gato Clinic's cash account shows a $13,510 debit balance and its bank statement shows $13,575 on deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,527.
The June 30 bank statement lists a $20 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $289 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $298.
The June 30 cash receipts of $2,451 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Required:
a. Record the adjusting entry related to outstanding checks, if necessary.
b. Record the adjusting entry related to bank service charges, if necessary.
c. Record the adjusting entry related to Check No. 919, if necessary.
d. Record the adjusting entry related to the June 30 deposit, if necessary.
Answer:
a. Record the adjusting entry related to outstanding checks, if necessary.
No adjusting entry is necessary for recording outstanding checks.
b. Record the adjusting entry related to bank service charges, if necessary.
June 30, 202x, bank fees expense
Dr Bank fees expense 20
Cr cash 20
c. Record the adjusting entry related to Check No. 919, if necessary.
June 30, 202x, adjusting entry for mistake on recording Check No. 919
Dr Cash 9
Cr utilities expense 9
d. Record the adjusting entry related to the June 30 deposit, if necessary.
No adjusting entry is necessary for recording deposits on transit.
On January 1, 2021, a company issues $800,000 of 10% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $852,031.
Required:
A. Fill in the blanks in the amortization schedule below:
Date Cash Paid Interest Change in Carrying Value Carrying Value
Expense
01/01/2021
06/30/2021
12/31/2021
2. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021.
Answer:
I will start with question 2)
January 1, 2021, bonds issued at a premium
Dr Cash 852,031
Cr Bonds payable 800,000
Cr Premium on bonds payable 52,031
June 30, 2021, first coupon payment
Dr Interest expense 37,398.45
Dr Premium on bonds payable 2,601.55
Cr Cash 40,000
December 31, 2021, first coupon payment
Dr Interest expense 37,398.45
Dr Premium on bonds payable 2,601.55
Cr Cash 40,000
2)
Date Cash Interest Change in Carrying Value
paid expense carrying value
01/01 - - 52,031 852,031
06/30 40,000 37,398.45 49,429.45 849,429.45
12/21 40,000 37,398.45 46,827.90 846,827.90
Which of the following statements regarding partnerships losses suspended by the tax basis limitation is true?
a. Partnership losses must be used only in the year the losses are created.
b. Partnership losses may be carried back 2 years and carried forward 5 years.
c. Partnership losses may be carried forward indefinitely.
d. Partnership losses may be carried back 2 years and carried forward 20 years.
Answer:
c. Partnership losses may be carried forward indefinitely.
Explanation:
Regarding taxes, the IRS treats partnerships as pass through entities, therefore, if the partners are not able to use the partnership's loss (or losses) to offset any tax basis in their current income statements, they can carry them forward indefinitely (at least theoretically). This can be done until their tax basis is sufficient to offset the losses generated by the partnership.
While differing in details, all of the major types of project life cycle models have a series of phases with activities that need to be completed and approvals that must be received before the project can proceed to the next phase. True or False
Answer: True
Explanation:
The project life cycle is simply the path that is taken by a project from its start to the end. A standard project normally has the initiation phase, planning phase, the implementation phase and lastly the closure phase.
All of the major types of project life cycle models have a series of phases with activities that need to be completed and approvals that must be received before the project can proceed to the next phase.
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 30,000 Annual cash inflows $ 6,000 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is:
Answer:
5 years
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
$30,000 / $6,000 = 5 years
Which of the following are NOT required for use of the rental real estate safe harbor?
a. Maintaining separate books and records for each rental activity.
b. Performing at least 250 hours of "rental service" throughout the year,
c. Maintaining contemporaneous records including reports or similar documents.
d. Owning a minimum of 10 rental properties.
Answer:
d. Owning a minimum of 10 rental properties
Explanation:
The IRS has a safe habour rule for landlords for the purpose of pass-through deductions .
If the regulations are followed the IRS will view the rental activity is for business purpose only.
There are 3 requirements to use safe habor.
- separate records and books must be kept showing expenses and income of each rental enterprise owned.
- at least 250 hours of rental service in a year.
- records of real estate services that have been performed
Owning a minimum of 10 rental properties is not a requirement.
Oriole Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 7,990 $14,170 March 8,510 $14,721 February 7,495 13,503 April 8,200 14,485 Compute the variable cost per mile using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.)
Answer:
$1.2 per mile
Explanation:
Computation of the variable cost per mile using the high-low method
Using this formula
Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
Let plug in the
Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)
Variable cost per mile= 1,218/1,015
Variable cost per mile=$1.2 per mile
Therefore the Variable cost per mile will be $1.2 per mile.
The FOMC no longer sets targets for M1 and M2 to meet its goals of price stability and high employment.TrueFalse
Answer: True
Explanation:
The Federal Open Market Committee is a part of the Federal Reserve who's job it is to effect the Fed's monetary policy by using Open Market operations which include the buying and selling of securities.
In the past, they used to effect monetary policy by also setting targets for M1 and M2 to meet its goals of price stability and high employment. This practice ended in 2002 with the expiration of the Humphrey-Hawkins legislation which had required the Fed to use the said set targets.
"In connection with a new issue offering of a sought-after tech company issue, the underwriter offers shares to the officers of a manufacturing company that hired the firm 6 months ago to advise on a potential acquisition. Under FINRA rules, this is:"
Answer:
Under FINRA rules, this is:
A conflict of interest.
Explanation:
The underwriter has advised on the potential acquisition and is now offering the shares to the officers of the manufacturing company that hired the underwriting firm. The underwriter should have allowed the officers of the manufacturing company to purchase the shares on their own since it is a public offering and not a private placement. The information is already in the public domain. By offering the shares directly to the officers, it looks as if the underwriter is trying to compensate them for the contract it received earlier.
In a lawsuit by Ex-Employee against Ex-Employer for wrongful termination of an employment is most accurate:________.
a) The Ex-Employee bares the burden of persuasion, unless the ‘employment at will’ doctrine
b) The Ex-Employer bares the burden persuasion, if the ‘employment at will’ doctrine applied
c) The Ex-Employee will lose if the contract is for a fixed term has expired.
d) The Ex-Employer will lose if the contract is ‘for cause’ and the plaintiff has some evidence that the contract was in retaliation for the Ex-Employee discussing with other employees the collective bargaining unit.
Answer:
The Ex-Employee will lose if the contract is for a fixed term has expired.
Explanation:
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In a lawsuit by an Ex-Employee against an Ex-Employer for wrongful termination of an employee is most accurate the Ex-Employee will lose if the contract is for a fixed term has expired. Thus, option C is correct.
What is employment?
When a person accepts a job offer, they also commit to certain obligations and rewards. Salary, incentives, retirement, corporate rules, terminating, including non-compete clauses are a few examples of terms that may be included in an existing contract. Employment is a contract between two parties that governs the performance of compensated labor services.
If the contract was for a definite period and has already ended, it is most likely the ex-employee should lose their claim against it ex-employer for wrongful dismissal of an individual. It necessitates filing a lawsuit against the employee for carelessness and/or violation of the contract, and now in order to win, you must be able to prove negligence.
Therefore, option C is the correct option.
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What is the future value of 20 periodic payments of $5,460 each made at the beginning of each period and compounded at 8%
Answer:
$269,849.14
Explanation:
FV = $5,460 * Future value of an annuity due (8%, 20)
FV = $5,460 * 49.42292
FV = $269849.1432
FV = $269,849.14
The future value of 20 periodic payments of $5,460 each, made at the beginning of each period and compounded at 8%, is $269,849.15.
What is future value?The future value of periodic payments is the compounded value for a future period at an interest rate.
The formula for computing the future value of periodic payments is:
FV=PV(1+r)^{n}
Where:
FV = future value
PV = present value
r = annual interest rate
{n} = number of periods interest held
We can use compute the future value of periodic payments using an online finance calculator as follows:
Data and Calculations:N (# of periods) = 20 years
I/Y (Interest per year) = 8 years
PV (Present Value) = $0
PMT (Periodic Payment) = $5,460
Results:
Future Value = $269,849.15 ($109,200 + $160,649.15)
Sum of all periodic payments = $109,200 ($5,460 x 20)
Total Interest = $160,649.15
Thus, the future value of 20 periodic payments of $5,460 each, made at the beginning of each period and compounded at 8%, is $269,849.15.
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Planet Music buys all of its inventory on credit. During 2005, Planet Music's inventory account increased by $10,000. Which of the following statements must be true for Planet Music during 2005?
A. It made payments of less than $10,000 to suppliers.
B. It made cash payments of $10,000 to suppliers.
C. It made more cash payments to its suppliers than it recorded as cost of goods sold.
D. It paid less cash to suppliers than it recorded as cost of goods sold.
Answer: C. It made more cash payments to its suppliers than it recorded as cost of goods sold.
Explanation:
From the question, we are informed that Planet Music buys all of its inventory on credit and that during 2005, Planet Music's inventory account increased by $10,000.
The option that is true for Planet Music during 2005 is that Planet Music made more cash payments to its suppliers than it recorded as cost of goods sold.
When a business adopts a strategy of reducing and/or discontinuing production in response to a sustained pattern of losses, it is *
Answer:
preparing to exit operations.
Explanation:
To make bond purchases, the Fed gets the money __________. Select the correct answer below: exclusively from proceeds it has received from selling bonds in the past
Answer: c. by creating it
Explanation:
Purchasing Bonds is a part of Monetary Policy by the Fed to increase the money supply in the economy. As such, when they purchase those bonds they do it with new money that they have created to be able to increase the supply in the market.
Apart from creating new money, they can also purchase the bonds by creating bank reserves for commercial banks in the country which the banks can then give out as loans to increase the money supply.
Finance balance sheet: KneeMan Markup Company has total debt obligations with book and market values equal to $30 million and $28 million, respectively. It also has total equity with book and market values equal to $20 million and $70 million, respectively. If you were going to buy all of the assets of KneeMan Markup today, how much should you be willing to pay
Answer:
$98 million
Explanation:
Kneeman markup company has a total debt obligation with a book value of $30 million
The market value is $28 million
The total equity has a book value of $20 million and a market value of $70
Therefore, the price that you should be willing today can be calculated as follows
Debt obligation market value+total equity market value
= $28 million + $70 million
= $98 million
Hence the amount that you should be willing to pay today is $98 million
The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents $8,419
Accounts receivable 70,422
Merchandise inventories 60,362
Prepaid expenses 4,100
Accounts payable $14,950
Notes payable 86,638
Other current liabilities 9,500
If net credit sales for the current year were $612,000, what is the firm's days' sales uncollected for the year?
Answer:
Firm’s sales uncollected for year is 42 days.
Explanation:
Account receivable turnover ratio = $621,000 / $70,422
Account receivable turnover ratio = 8.69
Thus, accounts receivable turnover ratio is 8.69
Average collection period = 365 / Account receivable turnover ratio
Average collection period = 365 days / 8.69
Average collection period = 42.00
Thus, firm’s sales uncollected for year is 42 days.
Answer:
42 days
Explanation:
Compute Days’ Sales Uncollected
Accounts Receivable / Net Sales x 365
70,422 / 612,000 x 365 = 42
If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise if the Fed increases total reserves by $80 billion and the reserve requirement is 0.05?
Answer:
Prise rise = 3.2%
Explanation:
Given the increase in price level = 0.2%
The increase in total reserve by the Fed = $80
Reserve requirement = 0.05
Increase in money supply ($ billion) = Increase in reserves / Reserve ratio
Increase in money supply = 80 / 0.05 = 1,600
Increase in price level = (Increase in money supply / 100) x 0.2%
Increase in price level = (1,600 / 100) x 0.2%
Increase in price level = 3.2%
Journalize the following transactions for Combs Company.
(a) Purchased 6,900 units of raw materials on account for $13,060. The standard cost was $13,800.
(b) Issued 6,780 units of raw materials for production.
The standard units were 6,890. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)
Answer:
No Account Titles and Explanation Debit Credit
A. Raw material inventory $13,800
Direct material price variance $740
($13,800 - $13,060)
Account payable $13,060
(To record purchase of materials)
B. Work in process inventory $13,780
6,890 * ($13,800/6,900)
Direct material quantity variance $220
($13,780 - $13,560)
Raw materials inventory $13,560
6,780 * ($13,800/6900)
(To record materials issued to production)
Keene Co. has 2,000,000 shares of common stock outstanding on December 31, 2018. An additional 100,000 shares are issued on April 1, 2019, and 240,000 more on September 1. On September 1, 2019, Keene issued $3,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 shares of common stock. No bonds have been converted. Assume the bonds are dilutive. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2019 is
Answer:
The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2019 is -
Basic Earnings Per Share = 2,155,000 shares AND
Diluted Earnings Per Share = 2,215,000 shares
Explanation:
Basic Earnings per Share = Earnings Attributable to holders of Common Stocks ÷ Weighted Average Number of Common Stocks Outstanding.
For Basic Earnings per Share calculations, Weighted Average Number of Common Stocks Outstanding will be,
Weighted Average Number of Common Stocks Outstanding :
Outstanding at beginning of the year 2,000,000
Issued April 1, 2019 : (100,000 × 9/12) 75,000
Issued September 1 : (240,000 × 4/12) 80,000
Weighted Average Number of Common Stocks Outstanding 2,155,000
For Diluted Earnings per Share calculations, entity takes into account potential voting right that arise from other financial instruments in issue as follows,
Weighted Average Number of Common Stocks Outstanding :
Outstanding at beginning of the year 2,000,000
Issued April 1, 2019 : (100,000 × 9/12) 75,000
Issued September 1 : (240,000 × 4/12) 80,000
Convertible Bonds : ($3,000,000/ $1,000 × 60) × 4/12 60,000
Weighted Average Number of Common Stocks Outstanding 2,215,000
Machining Machine-hours $ 247,000 13,000 MHs Machine setups Number of setups $ 60,000 150 setups Product design Number of products $ 56,000 2 products Order size Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product X08R Product P56L Machine-hours 10,000 3,000 Number of setups 110 40 Number of products 1 1 Direct labor-hours 6,000 4,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?
Answer:
Manufacturing overhead allocated to product P56L is $249,200
Explanation:
The missing beginning part of the question is as written below
"Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.
Activity Cost Pool Activity Measure Total Cost Total Activity"
Solution
Predetermined overhead rate = Estimated overhead/Estimated direct labor hours
Predetermined overhead rate = (247,000 + 60,000 + 56000 + 260,000) / 10,000
Predetermined overhead rate = 623,000 / 10,000 dhl
Predetermined overhead rate = 62.30 per direct labor hour
Manufacturing overhead allocated to product P56L
= 4,000 hours * 62.30
= $249,200
Domestic strategy reflects the choices a firm's executives make with respect to sourcing and selling its
goods in foreign markets.
A. True
B. False
Answer:
True.
Explanation:
True. The given statement is true because the domestic strategy refers to the strategy of a company to expand its business and find the new market for their products. So, the new market can be found by internationalizing the goods by the firm. Moreover, early-stage firms focus on the domestic market but as their business grows or production increases then it starts selling its goods and services in foreign markets.
A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city.a. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Government-Wide Financial Statementsb. Prepare the entries assuming infrastructure assets capitalized with government using the modified approach. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
a.Dr Infrastructure Assets - Street Lights $300,000
Cr Cash $300,000
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation - Infrastructure Assets $30,000
Dr Maintenance Expense - Infrastructure Assets $48,000
Cr Cash $48,000
Dr Infrastructure Assets - Street Lights $78,000
Cr Cash$78,000
b.
Dr Infrastructure Assets - Street Lights $300,000
Cr Cash $300,000
Dr Maintenance Expense - Infrastructure Assets $48,000
Cash $48,000
Dr Infrastructure Assets - Street Lights $78,000
Cr Cash $78,000
Explanation:
1.Preparation of the Journal entries assuming infrastructure assets are capitalized with depreciation recorded.
Based on the information given we were told that the city government adds street lights total cost of the amount of $300,000 which means that the transaction will be recorded as:
Dr Infrastructure Assets - Street Lights $300,000
Cr Cash $300,000
(To record the original cost of the asset)
Based on the information given we were told that the city government adds street lights total cost of the amount of $300,000 in which the lights should burn for at least 10 years
which means that the transaction will be recorded as:
Dr Depreciation Expense $30,000
($300,000/10)
Cr Accumulated Depreciation - Infrastructure Assets $30,000
(To record the amount of depreciation expense)
Based on the information given we were told that city spends the amount of $48,000 in order to clean and repair the lights, this means that the Journal entry will be:
Maintenance Expense - Infrastructure Assets $48,000
Cr Cash $48,000
(To record maintenance expenses)
Based on the information given we were told that they spends another amount of $78,000 to construct lights for new streets in the city which means that the Journal entry will be :
Dr Infrastructure Assets - Street Lights $78,000
Cr Cash $78,000
(To record the additional cost of assets)
b.Preparation of t the Journal entries assuming infrastructure assets capitalized with government using the modified approach.
Based on the information given we were told that the city government adds street lights total cost of the amount of $300,000 which means that the transaction will be recorded as:
Dr Infrastructure Assets - Street Lights $300,000
Cr Cash $300,000
(To record the original cost of the assets)
Based on the information given we were told that city spends the amount of $48,000 in order to clean and repair the lights, this means that the Journal entry will be:
Dr Maintenance Expense - Infrastructure Assets $48,000
Cash $48,000
(To record t maintenance expense)
Based on the information given we were told that they spends another amount of $78,000 to construct lights for new streets in the city which means that the Journal entry will be :
Dr Infrastructure Assets - Street Lights $78,000
Cr Cash $78,000
(To record the additional cost of assets)
Suppose you purchase twelve call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.30. If, at expiration, the stock is selling for $71 per share, what are your call options worth? What is your net profit? (Omit the "$" sign in your response.)
Answer:
Call option worth = 6
Net profit = 3.7
Explanation:
Call option worth and net profit can be calculated as follows
DATA
Strike price = 65
Premium = 2.30
Selling price = 71
Call option worth =?
Net profit =?
Requirement A: Call option worth
Solution
Call option worth = Selling price - strike price
Call option worth = 71 - 65
Caall option worth = 6
Requirement B Net profit
Solution
Net profit = Selling price - (Strike price + Premium)
Net profit = 71 - (65 + 2.3)
Net profit = 71 -67.3
Net profit = 3.7
Answer:
Call option worth = $6
Net Profit = $3.70
Explanation:
The strike price of the option is $65
The amount of premium = $2.30
The selling price = $71
Call option worth = Current Price - Strike price
Call option worth = $71 - $65
Call option worth = $6
Net Profit = Selling Price - (Strike price + Premium)
Net Profit = $71 - ($65 + $2.30)
Net Profit = $71 - $67.30
Net Profit = $3.70
Which of the following statements regarding a partner's basis adjustments is false?
A. A partner's basis may never be reduced below zero
B. Relief of partnership debt decreases a partner's tax basis
C. Partnership fines and penalties do not affect a partner's basis.
D. A partner must adjust his basis for ordinary income (loss) and for separately stated items
Answer: Partnership fines and penalties do not affect a partner's basis
Explanation:
Partnership is a formal arrangement that involves two or more individuals coming together in order to manage a business.
The option that Partnership fines and penalties do not affect a partner's basis is false. It should be noted that fines and penalties affect the basis of the partners.
Determining whether to raise or lower the Federal Funds Rate is a responsibility of __________.
A. the central bank
B. the credit unions
C. the government
D. the commercial banks
Answer:
Option A
A. the central bank
Explanation:
The Federal Funds Rate refers to the maximum interest rate at which commercial banks can borrow money, and lend their surplus to other commercial banks. These interest charges are usually done on an overnight basis.
The central bank of a nation is responsible for the raising or lowering of the Federal Funds rate. The Central bank can lower the Federal Funds Rate to ensure that low-interest rates are given to businesses to enable them to expand and enrich the economy of the nation.