The statement that is not true about bankruptcy is that Bankruptcy erases all of your debt. Option A is correct.
What is bankruptcy?Bankruptcy is a legal process or procedure that involves a person or business that is unable to repay its outstanding debts.
The bankruptcy methodology starts with a requisition or petition that is pointed by the debtor, which is most expected, or on behalf of creditors, and which is less common.
After filing bankruptcy, it is possible to rebuild credit after filing bankruptcy of a debtor, and there are certain waivers that allow maintaining the requirements.
Bankruptcy prevents assertive action by creditors, and it does not mean that it erases all of your debt.
Therefore, option A is correct.
Learn more about bankruptcy, refer to:
https://brainly.com/question/1142634
Answer:
A
Explanation:
Which of the following is not a true statement about filing bankruptcy?
a.
Bankruptcy erases all of your debt.
b.
It is possible to rebuild your credit after filing bankruptcy.
c.
There are exemptions that allow you to keep essentials.
d.
Bankruptcy stops aggressive action by creditors.
A
You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2022. Supplies $4,600 Prepaid Insurance 7,500 Notes Payable 21,000 You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,500.
2. There were $530 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.
4. The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.
5. Wage expense totals $270 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 8% note dated January 1, 2022.
Answer:
rent revenue 21,500 debit
unearned revenue 21,500 credit
--to amend incorrect recognition of revenue--
Supplies expense 4,070 debit
Supplies 4,070 credit
--to record use of supplies--
Insurance expense 1,875 debit
Prepaid Insurance 1,875 credit
--to record use of supplies--
advertizing expense 150 debit
repair expense 1050 debit
utilities expense 200 debit
account payable 1,400 credit
--to record accrued expenses--
wages expense 810 debit
wages payable 810 credit
--to record accrued wages--
interest expense 420 debit
interest payable 420 credit
--to record accrued interest--
Explanation:
#1 unearned revenue
The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.
#2 Supplies adjustment:
Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense
#3 expired insurance:
value per month: $7,500 / 12 months = 625
month expired between Jan 1st and March 31st: 3
total value f expired insurance: $625 per month x 3 month = 1,875
#4 accured expenses concetps were incurred and we most recognize them
#5 each day $270 times 3 days accrued = 810 total wages accrued
#6 accrued interest expense: principal x rate x time
$21,000 x 0.08 x 3/12 = $420
If national income is $5,000 billion, compensation of employees is $1,105 billion, proprietors’ income is $1,520 billion, corporate profits are $490 billion, and net interest is $128 billion, then rental income is equal to
Answer:
Rental income = $1,757 billion
Explanation:
National income is defined as the value of goods and services that a nation produces within a financial year.
Therefore it is made up of all economic actives that the nation is involved in.
The gross domestic product is a measure of the national income.
The formula for national income is given below
National income = employees compensation + proprietors' income + corporate profits + rental income +net interest
5,000 billion = 1,105 billion + 1,520 billion + 490 billion + rental income + 128 billion
Rental income = 5,000 billion - 3,243 billion
Rental income = $1,757 billion
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39000 units were completed and transferred out; and there were 19000 units in the ending work in process that were 30% complete. During July, $87000 materials costs and $89400 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were:_________
Materials Conversion Costs
$2.77 $1.55
$2.04 $1.50
$3.09 $2.27
$1.60 $1.50
Answer:
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = $2 per unit
Explanation:
Materials Conversion
Beginning WIP 0 0
Started and Completed 39,000 39,000
Ending WIP (19,000*30%) 19,000 5,700
Equivalent Units 58,000 44,700
Cost Incurred $87,000 $89,400
Unit Production Cost for Materials = Cost / Equivalent units
Unit Production Cost for Materials = $87,000 / 58,000
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = Cost / Equivalent units
Unit Production Cost for Conversion cost = $89,400 / 44,700
Unit Production Cost for Conversion cost = $2 per unit
There are two machines for sale that you are considering purchasing for your sawmill to produce hardwood flooring. You want to find the one that has a higher process capability index, or Cpk. The goal is to produce flooring that is between 46 and 50 millimeters thick. The first machine is more accurate on average, producing to a mean of 48 millimeters...but unfortunately it has more variation with a standard deviation of 7 millimeters. The second machine is not as accurate, with a mean of 47mm, but does deliver a more consistent output, with standard deviation of 3mm.
[ Select] What is the Cpk of machine 1?
[Select] What is the Cpk of machine 2?
[ Select] If your goal is to be capable', what would you do?
[ Select] If (somehow) you could combine the best of both machines (the centering or average of machine 1 coupled with the constancy or standard deviation of machine 2, what would the Cpk be?
Answer:
Machine 1 = 0.092
Machine 2 = 0.111
Combined = 0.222
Explanation:
Given the following :
Lower specification limit (LSL) = 46 mm
Upper specification limit (USL) = 50 mm
MACHINE 1:
Mean 1 (m1) = 48
Standard deviation 1 (σ1) = 0.7
MACHINE 2:
Mean 2 (m2) = 47
Standard deviation 2 (σ2) = 0.3
Cpk formula:
Min(USLcpk, LSLcpk)
USLcpk = (USL - m) / 3σ
LSLcpk = (m - LSL) / 3σ
FOR MACHINE 1:
USLcpk = (50 - 48) / 3(7) = 0.0952
LSLcpk = (48 - 46) / 3(7) = 0.0952
Cpk = Min(0.952, 0.952) = 0.952
FOR MACHINE 2:
USLcpk = (50 - 47) / 3(3) = 0.333
LSLcpk = (47 - 46) / 3(3) = 0.111
Min(USLcpk, LSLcpk)
Cpk = Min(0.333, 0.111) = 0.111
When combined :
Mean = 48
σ = 3
USLcpk = (50 - 48) / 3(3) = 0.222
LSLcpk = (48 - 46) / 3(3) = 0.222
Min(USLcpk, LSLcpk)
Cpk = Min(0.222, 0.222) = 0.222
Consider the following data on U.S. GDP:
Year Nominal GDP (Billions of dollars) GDP Deflator (Base year 2009)
2015 17,947 109.8
1995 7,664 75.3
The growth rate of nominal GDP between 1995 and 2015 was _____, and the growth rate of the GDP deflator between 1995 and 2015 was _____.
Measured in 2009 prices, real GDP was _____ billion in 1995 and _____ billion in 2015.
The growth rate of real GDP between 1995 and 2015 was _____.
The growth rate of nominal GDP between 1995 and 2015 was _____ than the growth rate of real GDP.
Answer:
The growth rate of nominal GDP between 1995 and 2015 was 4.35%
Growth rate over a period is calculated as;
= 100 * (((Current variable/initial variable)^1/n) - 1)
= 100 * (((17,947 / 7,664) ^1/20) -1)
= 4.35%
Growth rate of the GDP deflator between 1995 and 2015 was 1.90%.
= 100 * (((109.8/75.3)^1/20) -1)
= 1.90%
Measured in 2009 prices, real GDP was $ 10,177.95 billion in 1995 and $ 16,345.17 billion in 2015.
Real GDP = (Nominal GDP / GDP Deflator) * 100
1995 = (7,664/75.3) * 100
= $ 10,177.95
2015 = (17,947/109.8) * 100
= $ 16,345.17
The growth rate of real GDP between 1995 and 2015 was 2.397% .
= 100 x (((16,345.17 / 10,177.95)^1/20) -1)
= 2.397%
The growth rate of nominal GDP between 1995 and 2015 was more than the growth rate of real GDP.
Nominal GDP growth was 4.35% whilst Real GDP was 2.397%.
In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.
Answer:
1. Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
2. Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
3. Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
Explanation:
1. Preparation of the Journal entry to Record the correcting entry to expense
Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
(Being To record research and development expense )
Calculation for the Total amount of theresearch and development expense
Basic research to develop the technology $2,000,000
Engineering design work $680,000
Development of a prototype device $300,000
Testing and modification of the prototype $200,000
TOTAL research and development expense $3,180,000
2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment
Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
(Being To correct cost of equipment capitalized to patent)
3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment
Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
(Being To record research and development expens
Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Answer:
$28.57
Explanation:
Current price = D1/(Required return-Growth rate)
D1 (Next dividend) = $2
Required return = 10% = 0.1
Growth rate = 3% = 0.03
Current price = $2/(0.1-0.03)
Current price = $2 / 0.07
Current price = $28.57143
Current price = $28.57
Hence, i will be willing to pay $28.57 for a share of Merck stock.
How can you enable your sales team to perform better?
A. by enforcing stringent rules
B. by providing them with training and other supporting material
C. by permitting them the freedom to do whatever they think is right
D. by increasing their pay more often than the rest of the workforce
Answer: i think its B because it makes the most sense out of them all
Explanation:
Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest. Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40% ownership interest, and Taylor is contributing legal services for a 20% ownership interest. Using the research skills you learned in Week 1, access RIA Checkpoint and research what amount of gain/income each owner is required to recognize under each of the following alternative situations?
a. MMT is formed as a C corporation.
b. MMT is formed as an S corporation.
c. MMT is formed as LLC.
Answer:
a. MMT is formed as a C corporation.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.
b. MMT is formed as an S corporation.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.
c. MMT is formed as LLC.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §721, but Taylor's doesn't.
Explanation:
Basically §351 and §721 are very similar except that one applies to corporations and the other applies to partnerships and LLCs. No gain will be recognize when assets are transferred in exchange for equity, and the people involved in the exchange can control the company.
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.
She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.
Would you do it? Why? or Why Not?
Answer:
No
Explanation:
Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company
Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Answer:
Break-even point in units= 2,600
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Fixed costs= $65,000
Contribution margin per unit= 50*0.5= $25
Break-even point in units= 65,000/25
Break-even point in units= 2,600
Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200
Answer:
d. $157,200
Explanation:
Calculation for the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries
Liability for accrued salary=$24,000 + ($444,000 ÷ 10 days × 3)
Liability for accrued salary=$24,000+$133,200
Liability for accrued salary= $157,200
Therefore the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries will be $157,200
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. In order To manage inventory, the company is using what is called Continuous review system
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
(138*358=49,404)
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
R = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the_____using______by the_____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services.
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Scenario Shows up
in the...
GDP Deflator
Index CPI
An increase in the price of a Chinese-
made phone that is popular among
U.S. consumers.
A decrease in the price of a Treewood
Equipment feller buncher, which is a
commercial forestry machine made in
the U.S. but not bought by U.S. consumers.
Answer and Explanation:
The consumer price index refers to an index in which the prescribed market cost of goods & services by the prices years from the base year prices of the prescribed market basket and then it is multiplied by 100.
But the Gross Domestic Inflator would be represented when the all types of prices of goods and services generated domestically
An increase in the price refelected the GDP deflator
And, the decrease in the price of treewood represents CPI
Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank statement indicated a balance of $15,440 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $5,560. A deposit of $5,790, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $3,010 on a note left for collection. The face of the note was $2,860. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $400 had been incorrectly charged by the bank as $40. Bank service charges for July amounted to $50.
Required:
Prepare a bank reconciliation.
Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310
Explanation:
Bank Reconciliation Statement for July 31 , 20Y5 for Stone Systems
Particulars Amount
Balance on bank statement $15,440
Additions:
Outstanding Deposits $5,790
Deductions:
Outstanding checks $5,560
Bank Error (400-40) $360
Adjusted bank balance $15,310
Balance in books $12,270.
Additions:
Note Collection plus interest $3,010
Incorrect recording of check
($880-$800) $80
Deductions
Bank Service charges $50
Adjusted book balance $15,310
Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts.
Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.
Answer:
July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.
Dr cash 68,000
Cr common stock 68,000
July 5. Paid monthly rent on medical equipment, $510.
Dr rent expense 510
Cr cash 510
July 9. Paid $16,000 cash to purchase land to be used in operations.
Dr land 16,000
Cr cash 16,000
July 10. Purchased office supplies on account, $1 ,600.
Dr office supplies 1,600
Cr accounts payable 1,600
July 19. Borrowed $26,000 from the bank for business use.
Dr cash 26,000
Cr notes payable 26,000
July 22. Paid $1,100 on account.
Dr accounts payable 1,100
Cr cash 1,100
July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
Dr advertising expense 250
Cr accounts payable 250
July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.
Dr cash 6,300
Dr accounts receivable 5,300
Cr service revenue 11,600
July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
Dr wages expense 1,900
Dr rent expense 1,400
Dr utilities expense 600
Cr cash 3,900
July 31. The business received $1 ,340 for medical screening services to be performed next month.
Dr cash 1,340
Cr unearned revenue 1,340
July 31. Paid cash dividends of $6,900.
Dr dividends 6,900
Cr cash 6,900
cash
debit credit
July 1 68,000
July 5 510
July 9 16,000
July 19 26,000
July 22 1,100
July 31 6,300
July 31 3,900
July 31 1,340
July 31 6,900
101,640
accounts receivable
debit credit
July 31 5,300
office supplies
debit credit
July 10 1,600
land
debit credit
July 9 16,000
accounts payable
debit credit
July 10 1,600
July 22 1,100
July 28 250
750
unearned revenue
debit credit
July 31 1,340
notes payable
debit credit
July 19 26,000
common stock
debit credit
July 1 68,000
service revenue
debit credit
July 31 11,600
rent expense
debit credit
July 5 510
July 31 1,400
advertising expense
debit credit
July 28 250
wages expense
debit credit
July 31 1,900
utilities expense
debit credit
July 31 600
dividends
debit credit
July 31 6,900
Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be
Answer:
$1,015.96
Explanation:
The Price of the Bond (PV) can be calculated as follows :
Fv = $1,000
Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20
n = 9 × 2 = 18
p/yr = 2
i = 7.79%
pv = ?
Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96
A government-owned company may have an unfair advantage over a privately owned company because it could:
Answer:
Government companies may have unfair advantage over private companies, as - financial support from government, public confidence & public capital raise ease
Explanation:
A government-owned company may have an unfair advantage over a private owned company because -
Have financial assistance from government in case of less or non profitability, inefficiency, non performing assets
On the other hand, having more public confidence, public companies are likely to get publically raised capital (through shares, debentures) etc more easily.
The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:
Debit Credit
Sales revenue $390,000
Sales returns and allowances $10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000
Required:
Compute income from operations.
a. $175,000
b. $65,000
c. $50,000
d. $70,000
Answer:
b. $65,000
Explanation:
Particulars Amount
Revenues
Service Revenue $390,000
Less: Sales Return and allowance $10,000
Less: Sales Discount $5,000
Net Sales Revenue $375,000
Less: Cost of Goods Sold $200,000
Gross Profit $175,000
Less: Operating Expenses $110,000
Operating Income $65,000
Thus, income from operation is $65,000
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows.
Work in Process, May 1 (54,000 units, 100% complete for direct materials, 35% complete with respect to conversion costs; includes $78,500 of direct material cost; $42,050 of conversion costs).
Units started in May 233,000
Units completed in May 208,000
Work in Process, May 31 (79,000 units, 100% complete for direct materials; 15% complete for conversion costs).
Costs incurred in May
Direct materials $391,440
Conversion costs $401,900
Required:
If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.
Answer:
cost per equivalent unit : materials = $1.37 and conversion costs = $1.78.
Explanation:
Please note that we have to use FIFO costing method
Calculation of the Equivalent Units of Production with respect to Materials and Conversion Costs
1. Raw Materials
To finish Beginning Work In Process (54,000 × 0%) 0
Started and Completed ((233,000 - 54,000) × 100%) 179,000
Ending Work In Process (79,000 × 100%) 79,000
Equivalent Units of Production with respect to Materials 258,000
1. Conversion Cost
To finish Beginning Work In Process (54,000 × 65%) 35,100
Started and Completed ((233,000 - 54,000) × 100%) 179,000
Ending Work In Process (79,000 × 15%) 11,850
Equivalent Units of Production with respect to Conversion 225,950
Calculation of the cost per equivalent unit for direct materials and conversion costs.
Unit Cost = Current Period Costs ÷ Equivalent units of production
1. Raw Materials
Unit Cost = $391,440 ÷ 258,000
= $1.37
2. Conversion Cost
Unit Cost = $401,900 ÷ 225,950
= $1.78
Use the information about Billy's Burgers to answer the following question(s):
Billy's Burgers
Figures in $ millions
Income Statement 2010 Balance Sheet 2010
Net Sales 246.0 Assets
Costs exc. Dep. 187.0 Cash 8.0
EBITDA 59.0 Accts. Rec. 21.0
Depreciation 17.2 Inventories 23.0
EBIT 41.8 Total Current Assets 52.0
Interest 12.0 Net PP&E 145.0
Pretax Income 29.8 Total Assets 197.0
Taxes 10.4
Net Income 19.4 Liabilities and Equity Accts.
Payable 18.0 LongTerm Debt 82.0
Total Liabilities 100.0 Total Stockholders' Equity 97.0
Total Liabilities and Equity 197.0
Required:
Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' Accounts Receivable for 2011.
a. $21.0 million
b. $18.0 million
c. $25.2 million
d. $21.6 million
Answer:
c. $25.2 million
Explanation:
Billy's Burgers' Accounts receivable 2011 = Accounts receivable 2010 *(1+Growth rate)
Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1+0.20)
Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1.20)
Billy's Burgers' Accounts receivable 2011 = $25,200,000.
How is a proceeding for violation of the regulations in Circular 230 instituted against a tax practitioner
Incomplete question. The options read;
A. An aggrieved taxpayer files a petition with the United States Tax Court stating a claim against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary
B. The IRS representative signs a complaint naming the tax practitioner and files the complaint with the Administrative Law Judge (ALJ)
C. The Secretary of the Treasury files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary in the United States District Court for the District of Columbia
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Answer:
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Explanation:
According to the information on the thetaxadviser website, when there is a violation of the regulations in Circular 230 instituted by a tax practitioner a complaint would be filed, and if found guilty, he or she "may be censured, suspended, or disbarred from practice before the IRS."
Usually, the Office of Professional Responsibility would take up the case against the tax practitioner.
Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.
Answer:
behavioral finance
Explanation:
Behavioral finance focuses on how psychological factors influence markets, and how important they are. E.g. expectations can sometimes be more important than actual results. Stock prices are not necessarily determined using scientific methods, that is why each analyst has his/her own expected future price. No one can know for sure which price is correct, since each analyst will factor certain variables depending on his/her expectations about the future of the company, the stock market, the country's economy and even the world's economy.
Most people would agree that Warren Buffet is generally right when pricing stocks or adjusting stock prices, but even he is not 100% right all the time. Even personal issues affect how investors value stocks. E.g. if the market has been rising and the economy is strong, most investors will be confident and might decide to take higher risks. On the other hand, if the market is not doing so well, investors might be afraid, and they will seek risk free investments. That is the reason why US securities sometimes yield negative returns. It is simply illogical to invest money knowing that you will lose, just leave the money in the bank. But sometimes desperation leads to mistakes.
free brainlyest. first answer gets it
Answer:
adasdw
Explanation:
Answer:
yeah letttttsssss goooooo
Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per share is $11. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate of 5.1%, and sells for 98% of par. The second issue has a face value of $50 million, has a coupon rate of 5.60%, and sells for 108% of par. The first issue matures in 20 years, the second in 12 years. The most recent dividend was $3.95 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?
Answer:
The answer is "8.37%".
Explanation:
[tex]\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}[/tex]
[tex]=84 \times 4100000\\\\=344400000[/tex]
[tex]\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]
[tex]=1000 \times 70000 \times 0.98 \\\\=68600000[/tex]
[tex]\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]
[tex]=1000 \times 50000 \times 1.08 \\\\=54000000[/tex]
[tex]\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}[/tex]
[tex]=344400000+68600000+54000000\\\\=467000000[/tex]
[tex]\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}[/tex]
[tex]= \frac{344400000}{467000000}\\\\=0.7375[/tex]
[tex]\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}[/tex]
[tex]= \frac{122600000}{467000000}\\\\=0.2625[/tex]
Equity charges
By DDM.
[tex]\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}[/tex]
[tex]84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\[/tex]
Debt expenses
Bond1
[tex]K = N \times 2 \\\\[/tex]
[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]
[tex]k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\[/tex]
[tex]K = N \times 2[/tex]
[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]
[tex]k=1\\\\K =12 \times 2\\\\[/tex]
[tex]1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\[/tex]
[tex]\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\[/tex]
The cost of the debt for the company:
[tex]= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\[/tex]
Business debt cost=[tex]5.02 \% \\\\[/tex]
after taxation cost of debt:
[tex]= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\[/tex]
[tex]WACC= \text{after debt charges} \times W(D)+equity cost \times W(E) \\\\[/tex]
[tex]=3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\[/tex]
You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are considering whether to launch a new product. The product, the Killer X3000, will cost $900,000 to develop up front (year 0), and you expect revenues the first year of $800,000, growing to $1.5 million the second year, and then declining by 40% per year for the next 3 years before the product is fully obsolete. In years 1 through 5, you will have fixed costs associated with the product of $100,000 per year, and variable costs equal to 50% of revenues.
A. What are the cash flows for the project in years 0 through 51
B. Plot the NPV profile for this nvestment using discount rates from 0% to 50% in 5% increments.
C. What is the project's NPV if the project's cost of capital is 10%?
D. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR or calculate it using the data.
Initial investment $900,000
Revenues vear 1 $800,000
Revenues vear 2 $1,500,000
Revenues decline years 4000
Fixed costs vears 1-5 $100,000
Variable costs 50%
Answer:
F= (900,000)
F1= 300,000
F2 = 650,000
F3 = 350,000
F4 = 170,000
F5 = 62,000
NPV at 10% $327487
IRR 20.587%
Explanation:
F0 -900,000
revenues variable cost fixed cost net flow
F1 800,000 -400000 -100,000 = 300,000
F2 1,500,000 -750000 -100,000 = 650,000
F3 900000 -450000 -100,000 = 350,000
F4 540000 -270000 -100,000 = 170,000
F5 324000 -162000 -100,000 = 62,000
NPV at 10%:
For each cashflow, we apply the discount of a lump sum formula
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
And add them together for the net present value
[tex]\left[\begin{array}{ccc}Year&$cashflow&PV\\0&-900,000&-900,000\\1&300,000&272,727\\2&650,000&537,190\\3&350,000&262,960\\4&170,000&116,112\\5&62,000&38,497\\Total&&327487\\\end{array}\right][/tex]
We solve for the IRR using the excel IRR formula
we list the cashflow and use IRR to select them.
Brief Exercise 14-08 Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.
Answer:
$1.9
Explanation:
The computation of the earning per share is shown below:
Earning per share is
= Net income ÷ Weighted number of oustanding shares
= $380,000 ÷ 200,000 shares
= $1.9
By simply divide the net income from the Weighted number of oustanding shares, the earning per share could be determined
Hence, the earning per share is $1.9
Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the children. Tommy is a hard worker and strives to provide for his family, although his skills are limited. Tommy has been a butcher for his entire career. He has been with his present company, a large retail grocer, for the past six years performing the same job. There are twelve people in the meat department, and each one specializes in cutting certain types of meat. Tommy's job is to cut ribeye steaks. Cutting ribeye steaks is very precise and requires holding and using a knife in the same way every day. This requirement has started to cause Tommy pain in his right hand. Although Tommy still likes his work, he is getting a little bored of the repetition and is bothered by the pain.
The quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored. What could they do to keep him better engaged?
a. Purchase special ergonomic mats to help with the pain associated with standing on the hard floor every day.
b. Motivate Tommy by giving him feedback about how skilled he is in cutting ribeye and explain that customers visit the store for his custom steaks.
c. Offer Tommy more money because he is so good at cutting meat.
d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
e. Administer a work personality quiz to Tommy to see if there is another area in the store where he could move to, such as the produce department.
Answer: d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
Explanation:
Since the quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored, the thing that could be done to keep him better engaged is to cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa. Cross training helps the workers in the company appreciate the workers of others in other department and shows workers flexibility.