Answer:
1. Supplies - ASSETS
Supplies are assets and are debited when they increase.
2. Notes Payable - LIABILITIES.
Current Liabilities owed to creditors.
3. Service Revenue. REVENUE
Revenue that will go to the income statement.
4. Dividends. EQUITY.
These are payments to Shareholders and so are Equity.
5. Accounts Payable. LIABILITY.
These are current liabilities and increase by credit.
6. Salaries and Wages Expense. EXPENSE.
These are expenses that will go to the Income Statement
7. Common Stock. EQUITY.
Common Stock is equity as it represents ownership in the company.
8. Accounts Receivable. ASSET.
Accounts Receivables are current assets and are debited when they increase.
9. Equipment. ASSET.
Equipment are fixed assets and are debited when they increase.
10. Notes Receivable. ASSETS.
Like Receivables these are current assets and are debited when they increase.
If a company paid $6,000 in advance for a year's worth of insurance, how
much money would need to be adjusted after one month?
O A. $500
B. $6,000
O C. $1,000
O D. $3,000
Answer:
A.
Explanation:
because 500x12 = 6,000 if you need to pay 500 every month then you need to pay 6,000 every year because they are 12 months each year and 500x12 = 6,000
Answer:
A
Explanation:
Winona and Hubert need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Winona is pretty good with a pair of shears; she can shear the llamas in 1 hour. Hubert is somewhat slow; it takes him 9 hours to shear the llamas. Winona earns $200 per hour as a psychiatrist, while Hubert earns $25 per hour as a cobbler. Keeping in mind that either Winona or Hubert must take time off from work to shear the llamas, who has the lowest opportunity cost of completing the task?
a. Jacques
b. Kyoko and Jacques face equal opportunity costs
c. Kyoko
What can you conclude about a firm in the short run from its marginal product numbers as its output approaches capacity production
Answer: Law of Diminishing returns would apply
Explanation:
The Law of Diminishing returns is used to describe the phenomenon where after a certain level of input, the output produced no longer increases at an increasing rate but instead starts increasing at a decreasing rate.
For instance;
Labor Output
2 4
4 8
6 16
8 20
10 22
Notice how at first the output increased by 4 then by 8 but then started increasing by 4 and then by 2. This is the Law of Diminishing Marginal returns and a reality that normally faces a firm in the short run as its output approaches capacity production.
A $2 million jumbo CD is paying a quoted 3.55 percent interest rate on 180-day maturity CDs. How much money will you have at maturity if you invest in the CD
Answer:
Maturity Value = $2,035,500
Explanation:
$2,000,000 are invested
Interest rate = 3.55 %
Time = 180 days
Maturity value = ?
Maturity Value = Amount invested * [1 +( interest * no of days to maturity/360)
Maturity Value = $2,000,000* [1 + (0.0355*180) /360)
Maturity Value = $2,000,000* [1 + (6.39/360)
Maturity Value = $2,000,000* [1 + 0.01775]
Maturity Value = $2,000,000 * 1.01775
Maturity Value = $2,035,500
Note: A Certificate of deposit is an interest bearing time deposit.
A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $13 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WACC is 9%.Calculate each project's NPV. Round your answers to two decimal places. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.Plan A $ millionPlan B $ millionCalculate each project's IRR. Round your answer to two decimal places.Plan A %Plan B %Graph the NPV profiles for Plan A and Plan B and approximate the crossover rate to the nearest percent.Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to the nearest hundredth.%
Answer:
Project A:
initial outlay -$40 million
cash flows $6.39 million for 20 years
PV of cash flows = $6,390,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $58,331,115
NPV = -$40,000,000 + $58,331,115 = $18,331,115 ≈ $18.33 million
IRR = 15%
Project B:
initial outlay -$13 million
cash flows $2.91 million for 20 years
PV of cash flows = $2,910,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $26,563,935
NPV = -$13,000,000 + $26,563,935 = $13,563,935 ≈ $13.56 million
IRR = 22%
Crossover rate = 11.4%
I solved the cross over rate the following way:
project A project B difference
-40 -13 -27
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
Using a financial calculator or excel spreadsheet, find the IRR of the difference and that is the crossover rate (discount rate at which both projects have the same NPV).
During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $55,000. DZC returned $8,500 of this merchandise to the manufacturer for credit on its account. DZC then sold $43,000 of the remaining goods at a selling price of $69,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,300. These goods were in perfect condition, so they were put back into DZC’s inventory at their cost of $4,500. At year-end, DZC estimated $9,510 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,800 as its cost of this merchandise.
Required:
Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system.
Answer:
Explanation:
Journal Entries
Event Account Title and Explanation Debit Credit
1 Inventory (or merchandise) $ 55,000
Accounts Payable $ 55,000
To record the purchase on account
2 Accounts Payable $ 8,500
Inventory (or merchandise) $ 8,500
To record return the merchandise
3. Cash ( or Accounts receivable) $69,600
Sales Revenue $ 69,600
To record sales revenue
4. Cost of goods sold $43,000
Inventory (or merchandise inventory) $43,000
To record cost of goods sold
5. Sales return and allowances $7,300
Cash (or Accounts receivable) $7,300
To record the sales return
6. Inventory (or merchandise Inventory) $ 4,500
Cost of goods sold $4,500
To record the reversal of COGS (Cost of goods sold)
7. Sales return and allowances $ 9510
Allowances for sales return $9510
To record the allowances for the estimated return
8. Inventory - Estimated Return $5,800
Cost of goods $5,800
To record the allowances for the estimated -
return of the cost of goods sold
Assume you are a business consultant. The owner of a company sends you an e-mail expressing concern that the company is not taking advantage of its discounts offered by vendors. The company currently uses the gross method of recording purchases. The owner is considering a review of all invoices and payments form the previous period. Due to the volume of purchased, however, the owner recognizes that this is time-consuming and costly. The owner seeks your advice about monitoring purchase discounts in the future.
Required:
Provide a response in memorandum form.
Answer:
i have no clue
Explanation: :)
For each of the following scenarios, indicate whether we would use time series or cross-sectional data.
ITEMS
A. TO DETERMINE IF ENROLLMENT IN HIGHER EDUCATION IS INCREASING.
B. TO COMPARE THE CURRENT PRICE OF A GALLON OF GASOLINE ACROSS DIFFERENT GAS STATIONS IN LOS ANGELES, CA.
C. TO SEE IF THERE ARE DIFFERENCES IN THE AVERAGE NUMBER OF CALORIES CONTAINED IN SCHOOL LUNCHES SERVED IN EACH OF THE FIFTY STATES ON DECEMBER 1, 2015.
D. TO COMPARE THE INSECT POPULATION IN A GEOGRAPHIC REGION BEFORE AND AFTER AN INSECTICIDE WAS APPLIED.
Answer:
A. Time-Series data
B. Cross-sectional data
C. Cross-sectional data
D. Time-Series data
Explanation:
For Your Understanding:
If the time period is single then use Cross-sectional data.
If their are multiple time periods then use time-series.
A. To determine whether or not the enrollment in higher education is increasing we will use time-series data because enrollment of students is a periodical event and occurs every year. So this means periodic study would be better with time-series data.
B. For comparing the current price of a gallon of gasoline across different gas stations in Los Angeles, CA: we are considering prices in a single time period. Thus the we will use cross-sectional data.
C. For finding see any differences in the average number of calories contained in school lunches served in each of the fifty states on December 1, 2015: we are considering a single time period. Thus we will use here cross-sectional data.
D. To find out the insect population and comparing them with insect population in a geographic region before and after insecticide was used: we will consider two time periods. As the time periods are more than one, hence we will use time-series data here.
1. You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently rent your home. You have and pay many bills, and make many purchases (usually by debit card) each month. You often lose track of spending and end up paying unnecessary bank fees. You would like to buy a new car in five months and a new home in two years. To avoid overdrafts, you chose "opt-in" overdraft protection with your bank. You just received your bank statement, which states a balance of $691, while your check register says you have a balance of $800. Which of the following accounts would be best for?
Purpose Type of accountA) Satisfying your day-to-day spending needs? ___________ B) Making and holding funds for your car purchase? ___________C) Making and holding funds for your home purchase? ___________D) Making and holding funds for your retirement?
A. Stock and bond portfolio.
B. NOW account.
C. NOW account.
D. Mutual funds.
2. Which of the following accounts is typically not insured?A. Mutual Funds.B. NOW account.
C. Certificate of deposit.
D. Statement savings account.
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.C. Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account.4. You can avoid a service fee on an average-balance account if you:______.
A. Issue a stop-payment order when you find yourself overdrawn.B. Keep a certain average daily balance in the account through a specified time.C. Avoid an overdraft for a specified time.D. Have your paycheck automatically deposited into your account each pay period.
Answer:
1. A) Satisfying your day-to-day spending needs?
Statement Savings account
Bank statements will hep you keep track of the balance.
B) Making and holding funds for your car purchase?
NOW Account.
An account that earns interest yet allows the owner to write drafts against the money in the account. This would be good here as it will increase the funds you are saving for the car purchase.
C) Making and holding funds for your home purchase?
NOW Account.
NOW stands for Negotiable Order of Withdrawal account and would work here as well.
D) Making and holding funds for your retirement?
Certificate of Deposit.
These are offered by banks and earn a higher interest return. They however have to be locked up for a while without withdrawing so they are great for retirement saving.
2. Which of the following accounts is typically not insured?
A. Mutual Funds.Mutual funds are not financial deposits so will not be covered by the Federal Deposit Insurance Corporation (FDIC).
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.4. You can avoid a service fee on an average-balance account if you:
B. Keep a certain average daily balance in the account through a specified timeBuilders Corporation (Builders) is a general contractor. Builders wished to bid on a construction project and solicited bids from a variety of subcontractors. Four electrical subcontractors, Alpha, Beta, Gamma, and Delta, submitted bids to Builders. The bids were as follows: Alpha- $75,000; Beta- $85,000; Gamma- $90,000; Delta- $95,000. As Builders was preparing its bid on the construction project based upon the low bid submitted by Alpha, Builders’ president called Alpha and told him, "We won’t be able to do it with your present bid, but if you can shave off $5,000, I’m sure that the numbers will be there for us to get that project." Alpha responded, "No way! In fact, that bid we submitted was based on a $15,000 error; we can’t do it for a cent less than $90,000." Nevertheless, Builders submitted its bid for the construction project using Alpha’s original $75,000 bid. Builders was not awarded the construction job and subsequently sued Alpha. Alpha is liable for:________.
Answer:
Alpha is liable for nothing.
Explanation:
Builders requested Alpha to make a discount (which is considered a counteroffer) but Alpha rejected it. At this point there was no valid offer anymore, and luckily for Builders, they lost the bid. Since a counteroffer invalidates an original offer, Alpha didn't have any type of obligation with Builders to perform at $75,000. The new price between them was $90,000, take it or leave it. Builder's president made a mistake when he made his counteroffer and if they had won the contract, then they would have needed to look at the other offers.
Builders asked Alpha for a discount, however, Alpha declined. At this moment, there's no longer a legitimate offer, as well as fortunately for Builders, they dropped the bid.
Because a counteroffer nullifies an earlier commitment, Alpha was under no duty to Contractors to execute at $75,000. They agreed on new pricing of $90,000, accept or reject it.This same president make mistake when before he submitted his counteroffer because if they will indeed have just been awarded the contract, they would've had to examine the other proposals.Thus the statement above is correct.
Learn more about the contract here:
https://brainly.com/question/20350854
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Labor-related $7.00 per direct labor-hour
Machine-related $3.00 per machine-hour
Machine setups $40.00 per setup
Production orders $160.00 per order
Shipments $120.00 per shipment
General factory $4.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $6.50 $31.00
Direct labor cost per unit $3.75 $6.00
Number of units produced per year 4,000 100
Total Expected Activity J78 B52 Direct labor-hours 1,000 40
Machine-hours 3,200 30
Machine setups 5 1
Production orders 5 1
Shipments 10 1
Required:
Compute the unit product cost of each product listed above.
First, The unitary production cost J78 is = $15.95
Second The unitary production costB52 is = $45.4
How to Compute the unit Product Cost?Firstly, we need to allocate overhead to each product that is:
Then Allocated MOH is = Estimated manufacturing overhead rate × Actual amount of allocation base
The cost and activity data of J78:
The Labor-related is = 7.00×1,000= 7,000
Then Machine-related is = 3.00×3,200= 9,600
After that Machine setups is = 40.00×5= 200
Then Production orders is = 160.00×5= 800
Then Shipments is = 120.00×10= 1,200
The General factory is = 4.00×1,000= 4,000
Therefore, The Total overhead is = $22,800
Then the Unitary overhead is = 22,800/4,000= $5.7
The cost and activity data of B52:
The Labor-related is = 7.00×40= 280
Then Machine-related is = 3.00×30= 90
After that Machine setups is = 40.00×1= 40
Then Production orders is = 160.00×1= 160
Then Shipments is = 120.00×1= 120
After that General factory is = 4.00×40= 160
Therefore The Total overhead is = $850
Then Unitary overhead is = 850/100= $8.5
Now, we calculate the unitary production cost is:
The unitary production cost J78= 6.5 + 3.75 + 5.7= $15.95
The unitary production cost B52= 31 + 6 + 8.5= $45.4
Find out more information about Unit Product Cost here:
https://brainly.com/question/2190896
1. What, historically, have been Apple's competitive advantages in the personal computer market (compared to other PC makers)?
The following information is available for Trinkle Company for the month of June:
1. The unadjusted balance per the bank statement on June 30 was $56,518.
2. Deposits in transit on June 30 were $2,340. A debit memo was included with the bank statement for a service charge of $26.
3. A $3,331 check written in June had not been paid by the bank.
4. The bank statement included a $1,050 credit memo for the collection of a note. The principal of the note was $1,015, and the interest collected amounted to $35.
Required:
Determine the true cash balance as of June 30.
Answer:
$55,527
Explanation:
Calculation to Determine true cash balance as of June 30
Unadjusted balance per the bank statement $56,518
Add: Deposits in transit on June 30 $2,340
Less: Outstanding check ($3,331)
True cash balance as of June 30 $55,527
Therefore true cash balance as of June 30 will be $55,527
You borrow $14,500 to buy a car. The terms of the loan call for monthly payments for 6 years at a 6.9 percent rate of interest. What is the amount of each payment
Answer:
$246.51
Explanation:
Use the Time Value of Money Techniques to find the Monthly Payments (PMT)
Pv = $14,500
N = 6 × 12 = 72
P/yr = 12
i = 6.9%
FV = $0
Pmt = ?
Using a financial calculator to input the data as above, the Monthly Payments (PMT) are $246.51
How is an excise tax different from a sales tax?
A). An excise tax is not deductible.
B). An excise tax applies to specific products.
C). An excise tax applies only to imported goods.
D). An excise tax is an indirect tax.
The answer is B.
An excise tax applies to specific products.
Hopes this helps :)
The difference between excise tax and sales tax is that an excise tax applies to specific products.
So, option B). is correct.
Excise tax and sales taxSales tax is applied to practically everything you buy, whereas excise tax is only applied to certain goods and services. Excise duty is charged on the manufacture of goods, whereas sales tax is levied on the selling of commodities.
One distinction between sales and excise taxes is that sales taxes are computed as a percentage of the purchase price, whereas excise taxes are assessed per unit. The difference between excise tax and sales tax is that an excise tax applies to specific products.
So, option B). is correct.
Find out more information about sales tax here:
https://brainly.com/question/372989?referrer=searchResults
Four Types of Organizational Culture Organizational culture is a system of shared beliefs and values that develops within an organization and guides its members' behavior. Culture can vary considerably across organizations, with each placing different emphases on risk-taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. This activity is important because different types of cultures are better suited to achieving different strategic goals, and managers can use this knowledge to their benefit.
The goal of this activity is to challenge your knowledge of the four types of organizational culture.
Read the description of an organization's culture and write each name to the type of organizational culture it best depicts.
Daveed Miranda Olivia
Caprice Joseph Aaron
Wallace Leslie
Clan Adhocracy Hierarchy Market
1. Daveed- Works for a real estate company with a culture that values employees'ability to focus on the customer, react quickly, an deliver quality work on time.
2. Miranda- works for a new entrepreneurial company that is characterized as being creative, making innovative products, and being adaptable in the marketplace.
3. Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.
4. Caprice- works for a regional airline whose corporate culture encourages employees to collaborate and become involved to increase their job satisfaction.
5. Joseph- works for a telecommunications company whose culture devotes considerable resources to hiring and developing employees.
6. Aaron- works for a computer company whose corporate culture is characterized by a formalized, structured work environment aimed at achieving effectiveness.
7. Wallace- works for an advertising agency whose corporate culture encourages employees to take risks and experiment with new ways of getting things done.
8. Leslie- works for a pharmaceutical company with a corporate culture that institutes a variety of control mechanisms to measure efficiency, timeliness, and reliability in the creation and delivery of products.
Answer:
1. Daveed = Market
2. Miranda = Adhocracy
3. Olivia = Market
4. Caprice = Clan
5. Joseph = Clan
6. Aaron = Hierarchy
7. Wallace = Adhocracy
8. Leslie = Hierarchy
Explanation:
Adhocracy: The characteristics of this corporate culture include experimentation, innovation, creativity, entrepreneurship, individual ingenuity and freedom, with high energy and risk-taking.
Hierarchy: This organizational culture is characterized by structure, control, formal workplace, institutional procedures, organized leadership, and consistency.
Market: The market culture is competitive, results-oriented, and tough and demanding leaders, who care only for profits.
Clan: A clan culture prevails where individuals are treated like parts of a big family with high collaboration, teamwork, communication, and consensus.
If annualized interest in the U.S. and France are 9% and 13%, respectively, and the spot value of the French franc is $0.1109, then at what 180-day forward rate will interest rate parity hold
Answer:
0.1130 FF/$
Explanation:
Spot value = 0.1109 FF/$
Interest rate in US for 180 days = 9%*180/365 = 0.044384
Interest rate in France for 180 days = 13%*180/365 = 0.06411
Forward rate = Spot value*(1+Interest rate in US)/(1+Interest rate in France)
Forward rate = 0.1109*(1+0.06411)/(1+0.044384)
Forward rate = 0.1109*(1.06411/1.044384)
Forward rate = 0.1109* 1.018888
Forward rate = 0.1130 FF/$
when is y'all birthday i'm trying to see if i have the same birthday as somebody
Answer:
6th October, when is yours..?
In general, research and development costs for projects other than software development should be: A. None of the answer choices are correct. B. Expensed if unsuccessful; capitalized if successful. C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful. E. Deferred pending determination of success.
Answer:
Research and development costs must be expended during the period that they occur, they are not capitalized. Whether the project is successful or not does not affect the expensing of the R&D costs.
Both options C and D are correct:
C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful.Explanation:
On the other hand, software companies are allowed to capitalize some (not all) R&D costs.
Orange Inc., an orange juice producer with a current debt-to-equity ratio of 2, is considering expanding its operations to produce toothpaste. Unsurprisingly, the toothpaste industry faces a different set of risks than the orange juice industry. However, the executives at Orange Inc. observe that Paste Inc., a toothpaste company, has a cost of equity of 12%, a cost of debt of 6%, and a debt-to-value ratio of 40%. Orange Inc. plans to finance its expansion into toothpaste production with 50% debt and 50% equity. The cost of debt for Orange Inc. is also 6%, and the corporate tax rate is 25%. Solve for the discount rate that Orange Inc. should use when evaluating whether to go forward with the expansion Note: Orange Inc. does not want to use the Adjusted Present Value method.
Appropriate Rate = 12.08%
Appropriate Rate = 9.60%
Appropriate Rate = 13.20%
Appropriate Rate = 8.85%
Assume Last Inc. has no cash on hand, but wants to take on a project that adds $30 million in market value to the firm's assets, and has an NPV of $20 million. The project requires an initial investment of $10 million. LastQ Inc. wants to maintain its 50% Debt to Value Ratio.
How much debt should LastQ issue, and how much should they pay stockholders in dividends?
Issue $30 million in debt, pay $5 million to shareholders
Issue $15 million in debt, pay $5 million to shareholders Issue $10 million in debt, pay $20 million to shareholders
Issue $20 million in debt, pay $8 million to shareholders
Answer:
Appropriate Rate = 8.85%
Explanation:
Given the following :
Paste Inc,
cost of debt (Kd) = 6% = 0.06
Cost of Equity Ke = 12% = 0.12
Weight of debt ; Wd = 40%
Weight of equity; We = 1 - 40% = 0.6
Pretax discount :
We * Ke + Wd * Kd
0.6 * 0.12 + 0.4 * 0.06 = 0.096
For orange :
Weight of debt (Wd) = 50% = 0.5
Weight of Equity (We) = 50% = 0.5
Cost of debt (Kd) = 6% = 0.06
Tax rate (r) = 25% = 0.25
Cost of Equity (Ke) :
Pretax discount + 1(pretax discount - cost of debt)
0.096 + 1(0.096 - 0.06)
0.096 + 0.096 - 0.06 = 0.132
WACC: for orange Inc.
We * Ke + Wd * Kd * ( 1 - tax rate)
0.5 * 0.132 + 0.5 * 0.06 * (1 - 0.25)
0.5 * 0.132 + 0.5 * 0.06 * 0.75
0.066 + 0.0225
= 0.0885
= 0.0885 * 100%
= 8.85%
In the long run, a decrease in the money supply will
decrease real Gross Domestic Product (GDP).
decrease the price level.
increase real Gross Domestic Product (GDP).
increase the price level.
Answer:
decrease real Gross Domestic Product (GDP).
Explanation:
GDP represents the total value of a country output. The calculation of GDP using the expensive method is identical to that of the aggregate demand. Aggregate demand is the total of government spending, consumer spending, investment, and net exports. Therefore, GDP and aggregate demand are the same.
A decrease in the money supply leads to firms and households having less money to spend. Reduction in disposable income results in reduced consumer spending, which has adverse effects on aggregate demand. Therefore, reduced money supply results in a decline in consumer spending and reduced aggregate demand, leading to a reduction in a country's output.
Lane Stevens is to retire from the partnership of Stevens and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Lane Stevens, $150,000; Cherrie Ford, $70,000; and LaMarcus Rollins, $60,000. They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $22,300 and the allowance for doubtful accounts should be increased by $1,300. Stevens agrees to accept a note for $100,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equally in the net income or net loss of the new partnership.
a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.
b. Journalize the entry to record the withdrawal of Stevens from the partnership.
Answer: See attachment
Explanation:
a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.
The journal entry has been prepared and attached.
b. Journalize the entry to record the withdrawal of Stevens from the partnership.
The journal entry has been prepared and attached.
Prior to safely smoking meat for food preservation, what must an operation have?
An operation must have a variance from regulatory authorities prior to smoking meat safely for food preservation.
A variance is simply an official permit that allows entities to do something that is ordinarily forbidden by regulation. Food safety methods that often require a variance include the smoking of food as a method of preservation but not as a flavor enhancer; and more often than not, follows a strict HACCP (hazard analysis critical control point).
Therefore, if an operation (business or organization) intends to smoke food as a preservative method during food processing, they need to seek and gain variance from the local regulatory authority.
For more on food preservation methods see: https://brainly.com/question/4486827?referrer=searchResults
Under corporate law, corporations are given the same rights as
A. the Federal Reserve
B. intellectual property
C. individuals
D. foreign countries
Answer:
C. individuals
Explanation:
The law treats corporates organizations as legal citizens. It gives them commercial right to own property, enter into contracts, and incur debts. Corporates have tax obligations, just like individuals. They can sue and be sued.
The law considers a corporate as a separate entity from its owners. It distinguishes the assets and liabilities of the institutions as different from those of its founders. A corporate has an infinite life. The death of its shareholders does not automatically mean its termination.
Answer:
C. Individuals is the correct option
Explanation:
A pie graph uses _________to represent information. a. Lines c. Odd numbers b. Dots d. Percentages
Answer:
the answer is D.
Explanation:
The contract drawings prepared by the architect are generally not specific enough to facilitate accurate fabrication of the materials involved. Therefore, to produce the necessary materials for a project, subcontractors and suppliers must provide ________________________ to amplify/clarify the contract drawings.
Answer:
construction specifications
Explanation:
Construction contracts must always include construction specifications. These specifications refer to what materials, installations and specialized labor is required to perform correctly the building process.
Architects are paid for their blueprints, i.e. their designs. Sometimes an architect can recommend certain materials that fit his/her design, but the contractor is responsible for carrying on the actual construction.
The contractor has to specify which materials will be used and how the construction process will be carried out. E.g. it is not the same to build a house with luxurious materials like expensive floors and ceilings than a normal house.
Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $430,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $48,000 at the end of the project in 5 years. Sales would be $279,000 per year, with annual fixed costs of $48,000 and variable costs equal to 35 percent of sales. The project would require an investment of $27,000 in NWC that would be returned at the end of the project. The tax rate is 21 percent and the required return is 8 percent. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
Answer:
NPV = $91,412.60
Explanation:
initial outlay = $430,000 (equipment cost) + $27,000 (increase in net working capital) = $457,000
revenue per year (without considering depreciation) = {[$279,000 x (1 - 35%)] - $48,000} x (1 - 21%) = $105,346.50
additional revenue generated by bonus depreciation = $430,000 x 21% = $90,300
after tax salvage value = $48,000 x (1 . 21%) = $37,920
Cash flow year 0 = -$457,000
Cash flow year 1 = $105,346.50 + $90,300 = $195,646.50
Cash flow year 2 = $105,346.50
Cash flow year 3 = $105,346.50
Cash flow year 4 = $105,346.50
Cash flow year 5 = $105,346.50 + $37,920 + $27,000 = $170,266.50
discount rate = 8%
using a financial calculator, NPV = $91,412.60
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180. 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.
The cost of the returned merchandise was $3,630. 31.
Paid MasterCard service fee of $3,510.
Instructions Journalize the transactions.
Answer:
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
Dr Merchandise inventory 63,435
Cr Accounts payable 63,435
July 5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
Dr Merchandise inventory 46,599
Cr Accounts payable 46,599
July 6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
Dr Accounts receivable 16,680
Cr Sales revenue 16,680
Dr Cost of goods sold 9,440
Cr Merchandise inventory 9,440
July 7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co.
Dr Accounts payable 13,230
Cr Merchandise inventory 13,230
July 13. Paid Hamling Co. on account for purchase of July 3.
Dr Accounts payable 63,435
Cr Cash 63,435
July 15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
Dr Accounts payable 33,369
Cr Cash 33,369
July 21. Received cash on account from sale of July 6 to Parsley Co.
Dr Cash 16,680
Cr Accounts receivable 16,680
July 21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
Dr Cash (assuming MasterCard pays immediately) 212,670
Cr Sales revenue 212,670
Dr MasterCard fee expense 3,510
Cr MasterCard fee payable 3,510
Dr Cost of goods sold 144,350
Cr Merchandise inventory 144,350
I recorded the transaction this way because on July 31, a payment to MasterCard is recorded. Generally the transaction should have been recorded differently since MasterCard withholds its fee automatically, you do not pay it.
Dr Cash (assuming MasterCard pays immediately) 209,160
Dr MasterCard fee expense 3,510
Cr Sales revenue 212,670
July 22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
Dr Accounts receivable 58,996
Cr Sales revenue 58,996
Dr Cost of goods sold 33,820
Cr Merchandise inventory 33,820
July 23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180.
Dr Cash 38,610
Cr Sales revenue 38,610
Dr Cost of goods sold 22,180
Cr Merchandise inventory 22,180
July 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,630.
Dr Sales revenue 6,070
Cr Cash 6,070
Dr Merchandise inventory 3,630
Cr Cost of goods sold 3,630
July 31. Paid MasterCard service fee of $3,510.
Dr MasterCard fee payable 3,510
Cr Cash 3,510
a. Insurance expense 2,807
Prepaid insurance 2,807
b. Teaching supplies expense 2,433
Teaching supplies 2,433
c. Depreciation expense—Equipment 11,227
Accumulated depreciation—Equipment 11,277
d. Depreciation expense—Professional library 5,614
Accumulated depreciation—Professional library 5,614
e. Unearned training fees 2,700
Training fees earned 2,700
f. Accounts receivable 2,819
Tuition fees earned 2,819
g. Salaries expense 100
Salaries payable 100
h. Rent expense 2,097
Prepaid rent 2,097
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.
Additional Information:
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.
Answer:
The question is incomplete, it is a really long question actually. I believe that you want to check if the adjusting entries were properly done.
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
Dr Insurance expense 2,807
Cr Prepaid insurance 2,807
CORRECT
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
Dr Teaching supplies expense (amount on trial balance - $2,433)
Cr Teaching supplies (amount on trial balance - $2,433)
You do not need to record $2,433, you need to record the difference between the balance of teaching supplies and the ending inventory.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
Dr Depreciation expense 16,841
Cr Accumulated depreciation, equipment 11,227
Cr Accumulated depreciation, professional library 5,614
CORRECT
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
Dr Unearned training Fees 5,800
Cr Training fees earned 5,800 (2 months of accrued revenue)
On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly.
Dr Accounts receivable 3,928.50
Cr Tuition fees earned 3,928.50 (1.5 months)
As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
Dr Wages expense 400
Cr Wages payable 400 (2 days x $100 x 2 employees)
The balance in the Prepaid Rent account represents rent for December.
Dr Rent expense 2,097
Cr Prepaid rent 2,097 (assuming that this was the account balance)
I ASSUME ITS CORRECT
A client heard through its hotline that John, the purchases journal clerk, periodically enters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier’s address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier’s name.
Required
a. Define fraud, fraud deterrence, fraud detection, and fraud investigation.
b. List four personal (as opposed to organizational) fraud symptoms, or red flags, that indicate the possibility of fraud. Do not confine your answer to this example.
c. List two procedures you could follow to uncover John’s fraudulent behavior. (CIA Examination, adapted)
Answer: See explanation
Explanation:
a. Fraud is a criminal deception by someone which is done for either personal or financial gain.
Fraud deterrence is when the likely causes of fraud are identified and removed so as to prevent fraud from occuring.
Fraud detection are the activities that are done so as to prevent money or any other thing from being gotten by false pretenses.
Fraud investigation has to do with using investigative skills and accountability in order to know if fraud has taken place.
b. Fraud symptoms that indicate the possibility of fraud include:
1. Accounting and analytical anomalies
2. Tips and complaint
3. Extravagant lifestyle
4. Unusual behavior
c. The procedures that could be done to uncover John’s fraudulent behavior are:
• Stock reconciliation: This will help show the fictitious acquisitions. Since no receipt are given for the goods, this will help in the detection of the fraud.
• Alice should verify the details such as the address, phone number and name attached to the purchase and find a way of tracking it.