Answer:
$10,899.37.
Explanation:
We can calculate the robin's saving at the end of each year if she wants to make her last savings payment at age 62 to meet her retirement goal and maintain her capital balance by calculating The Present Value of an annuity of $ 65000 with 2% inflation per annum for 25 years
The annual amount needed after age of 62 years after 25 years by Robin is $65000.
The Present Value of an annuity of $ 65000 with 2% inflation per annum for 25 years will be = 65000 * PVIFA 2, 25
PV = 65000 * 19.5235
PV = $1,269,028
For $1,269,028 with 11% return on savings for 25 years Robin will have to save amount X in the following equation:
X= 1269028/ FVIFA 11, 25
X= $10,899.37
Colter Steel has $4,750,000 in assets. Temporary current assets $ 1,500,000 Permanent current assets 1,525,000 Fixed assets 1,725,000 Total assets $ 4,750,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 14 percent and long-term rates 6 percentage points lower than short-term rates. Earnings before interest and taxes are $1,010,000. The tax rate is 30 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?
Answer:
$423,500
Explanation:
The computation of earnings after taxes is shown below:-
Interest cost = Long term rate × (Current assets + Fixed assets) + Short term rate × Temporary current assets
= 6% × ($1,525,000 + $1,725,000) + 14% × $1,500,000
= $405,000
So,
Earnings after taxes = (Earnings before interest and taxes - Interest cost) × (1 - Tax rate)
= ($1,010,000 - $405,000) × (1 - 30%)
= $423,500
Hence, for determining the earnings after tax we simply applied the above formula.
Depository Institutions are required to______and_____, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called_____Instead, they're called shares or premiums.
Non-depository Institutions include:_____.
A. Commercial banks, savings banks, savings and loan associations (thrifts), and credit unions.
B. Mutual funds, insurance companies, brokerage firms, and financial services companies.
What are the different forms and products of non-depository Institutions?
If you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?
A. An insurance company.
B. A stock brokerage firm.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?
A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.
C. Commercial banks tend to pay interest rates that are greater than those paid by savings banks and credit unions.
Answer:
Depository Institutions are required to ACCEPT DEPOSITS and HAND OUT LOANS, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called DEPOSITS. Instead, they're called shares or premiums.
Non-depository Institutions include:_____.
B. Mutual funds, insurance companies, brokerage firms, and financial services companies.
What are the different forms and products of non-depository Institutions?
Non-depository institutions include:
finance companies that generally make personal loanssecurities firms that trade securities, provide brokerage services and/or are investment banksinsurance companies that provide insurance servicesinvestment companies that sell their securities and then invest the proceedings, e.g. mutual fundsIf you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?
B. A stock brokerage firm.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?
A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.
Mackenzie borrows $300,000 from the bank on a 30 year mortgage. She is given an interest rate of 5.125% APR. How much will her monthly payment be in principal and interest?
Question 1 options:
988.18
1633.46
1699.11
1689.21
1755.29
Answer:1633.46
Explanation:
Barry's Tire Service completed 100 tire changes, six brake jobs, and 16 alignments in an eight-hour day with his standard crew of six mechanics. A brake specialist costs $16 per hour, a tire changer costs $8 per hour, and an alignment mechanic costs $14 per hour. The materials cost for a day was $2000, and overhead cost was $500. What is the shop's labor productivity if the retail price for each respective service is $60, $150, and $40
Answer:
Labor productivity is 157.083 per hours
Explanation:
Number of tires changed = 100 tire
Number of brake jobs = 6
Alignment job = 16
Number of standard crew = 6 machines
The cost of break specialist = $16 per hour
Cost to change tire = $8
Alignment costs = $14 per hour.
Given the cost of material = $2000
Overhead cost = $500
Now we have to find labor productivity hours.
Labor productivity = Output / Labor hours
Labor productivity = (100)(60) + (6)(150)+(16)(40) / (6)(8)
Labor productivity = (6000 + 900 + 640) / 48
Labor productivity = 157.083 per hours
An investor considers investing $10,000 in the stock market. He believes that the probability is 0.30 that the economy will improve, 0.40 that it will stay the same, and 0.30 that it will deteriorate. Further, if the economy improves, he expects his investment to grow to $15,000, but it can also go down to $8,000 if the economy deteriorates. If the economy stays the same, his investment will stay at $10,000.a. What is the expected value of his investment
Answer: $10,900
Explanation:
The expected value of an investment takes into account the probable payments that an investor will get given certain events occurring.
Expected Value = ∑ (probability of event * payoff if event happens)
= (0.3 * 15,000) + (0.4 * 10,000) + ( 0.3 * 8,000)
= $10,900
Marigold Corporation had net sales of $2,400,900 and interest revenue of $37,400 during 2020. Expenses for 2020 were cost of goods sold $1,466,300, administrative expenses $221,700, selling expenses $298,700, and interest expense $45,300. Marigold’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 74,370 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answer:
Net Income $284,410
Earnings Per Share $5.46
Explanation:
Preparation of a single-step income statement for the year ended December 31, 2020.
MARIGOLD CORPORATION INCOME STATEMENT
Net Sales 2,400,900
Less: Cost of goods sold (1,466,300)
Gross Profit $934,600
(2,400,900-1,466,300)
Less: Operating Expenses
Selling Expenses (298,700)
Administrative Expenses (221,700)
Income from Operations $414,200
+/- Other Revenue and Gains, Expenses and Losses
Add : Interest Revenue 37,400
Less : Interest Expense (45,300)
Income before Income Tax $406,300
Less: Income Tax Expense 30% (121,890)
(30%*$406,300)
Net Income $284,410
Earnings Per Share $5.46
Calculation for Earnings Per Share using this formula
Earnings Per Share = Net Income ÷ Outstanding Shares
Let plug in the formula
Earnings Per Share= $406,300 ÷ 74,370 shares
Earnings Per Share= 5.463224
Earnings Per Share= $5.46 approximately
Therefore the Net Income is $284,410 while the Earnings Per Share is $5.46
On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each year. The payments are calculated by the lessor using a 6% discount rate. If Company A's revenues exceed a specified amount during the lease term, Company A will pay an additional $5,000 lease payment at the end of the lease. Company A estimates a 60% probability of meeting the target revenue amount. What amount should be recorded as the right-of-use asset and lease liability under the contingent rent agreement
Answer:
Dr Right of use asset 59,007.60
Cr Lease liability 59,007.60
Explanation:
Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).
Annual lease payments = $12,000
PV annuity factor, 6%, 6 periods = 4.9173
PV of lease payments = $12,000 x 4.9173 = $59,007.60
John borrowed P15,000 for 2 years and 6 months, with simple interest at 9%. How much does he owe at the end of the time?
Answer:
18,375
Explanation:
I'm not sure what kind of currency P is, but the calculations should be the same as if they were dollars.
future value for simple interest = principal x interest rate x time = 15,000 x 9% x 2.5 years = 3,375 (interests only)
the total amount of interests + principal = 15,000 + 3,375 = 18,375
the difference between simple and compound interest is that when interests compounds, earned interest will start earning more interest themselves. While when calculating simple interest, interests only accumulate but do not earn any further interests. E.g. the future value of this debt using compound interest = 15,000 x 1.09²°⁵ = 18,606.19
The amount that he owes at the end of the time is $18,375.
Simple interest = Principal * Interest rate * Time
Simple interest = $15,000 x 9% x 2.5 years
Simple interest = $3,375.
Amount owed = Simple interests + Principal
Amount owed = $15,000 + $3,375
Amount owed = $18,375
Therefore, the amount that he owes at the end of the time is $18,375.
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Using your accounting knowledge, find the missing amounts in the following separate income statements. (Amounts to be deducted should be indicated by a minus sign.)
a b c d e
Sales $62,000 $43,500 $46,000 fill in blank $25,600
Cost of goods sold
Merchandise inventory
(beginning) 8,000 17,050 7,500 8,000 4,560
Total cost of
merchandise purchases 38,000 fill in blank fill in blank 32,000 6,600
Merchandise inventory
(ending) (11,950) (3,000) (9,000) (6,600) (4,160)
Cost of goods sold 34,050 16,000 fill in blank fill in blank 7,000
Gross profit 27,950 fill in blank 3,750 45,600 18,600
Expenses 10,000 10,650 12,150 3,600 6,000
Net income (loss) $17,950 $16,850 $(8,400) $42,000 $12,600
Answer:
1. Sales of column d = 79,000
2. Total cost of merchandise purchases of column b = $1,950
3. Total cost of merchandise purchases of column c = $43,750
4. Cost of goods sold of column c = $42,250
5. Cost of goods sold of column d = $33,400
6. Gross profit of column b = $27,500
Explanation:
Note: See the attached excel for the calculations
The following formulas are used in the calculations in the attached excel file:
Sales = Cost of goods sold + Gross profit
Total cost of merchandise purchases = Cost goods sold - Beginning merchandise inventory + Ending merchandise inventory
Cost goods sold = Beginning merchandise inventory + Total cost of merchandise purchases - Ending merchandise inventory
Gross profit = Sales - Cost of goods sold
Journalize the following transactions for Brown Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
October 4 Sold goods costing $8,400 to Lee Company on account, $14,000, terms 4/10, n/30.
October 10 Lee Company was granted an allowance of $700 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition.
October 14 Received the amount due from Lee Company.
Answer and Explanation:
The Journal entry is shown below:-
1. Accounts receivable Dr, $14,000
To Sales $14,000
(Being sales made is recorded)
2. Cost of goods sold Dr,$8,400
To Merchandise inventory $8,400
(Being cost of goods sold is recorded)
3. Sales return and allowances Dr, $700
To Accounts receivable $700
(Being return of the merchandise is recorded)
4. Merchandise inventory Dr, $420 ($700 × $8,400 ÷ $14,000)
To Cost of goods sold $420
(Being cost of merchandise returned is recorded)
5. Cash Dr, $13,300 ($14,000 - $700)
To Accounts receivable $13,300
(Being receipt of cash is recorded)
We are examining a new project. We expect to sell 7,100 units per year at $56 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $56 × 7,100 = $397,600. The relevant discount rate is 14 percent, and the initial investment required is $1,800,000. After the first year, the project can be dismantled and sold for $1,200,000. Suppose you think it is likely that expected sales will be revised upward to 10,800 units if the first year is a success and revised downward to 3,900 units if the first year is not a success. Suppose the scale of the project can be doubled in one year in the sense that twice as many units can be produced and sold. Naturally, expansion would be desirable only if the project is a success. This implies that if the project is a success, projected sales after expansion will be 21,600. Note that abandonment is still an option if the project is a failure.
a. If success and failure are equally likely, what is the NPV of the project? Consider the possibility of abandonment in answering. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the value of the option to abandon? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. NPV
b. Option value
Answer:
a. If success and failure are equally likely, what is the NPV of the project?
$584,710.17
b. What is the value of the option to abandon?
NPV = -$398,596.49
option value = $1,200,000 at the end of year 1
Explanation:
option to abandon:
initial investment = -$1,800,000
net cash flow year 1 = $397,600 + $1,200,000 = $1,597,600
NPV = -$1,800,000 + $1,597,600/1.14 = -$398,596.49
if first year is a success:
initial investment = -$1,800,000
net cash flow year 1 = $397,600
net cash flow year 2 to 10 = 18,00 x $56 = $604,800
NPV = -$1,800,000 + $397,600/1.14 + [$604,800 x 4.9464 (PV annuity factor, 14%, 9 periods)] = -$1,800,000 + $348,771.93 + $2,991,582.72 = $1,540,354.65
if first year is a failure:
initial investment = -$1,800,000
net cash flow year 1 = $397,600
net cash flow year 2 to 10 = 3,900 x $56 = $218,400
NPV = -$1,800,000 + $397,600/1.14 + [$218,400 x 4.9464 (PV annuity factor, 14%, 9 periods)] = -$1,800,000 + $348,771.93 + $1,080,293.76 = -$370,934.31
since the possibility of success or failure is equally possible, then we should average net cash flows for years 2 to 10:
initial investment = -$1,800,000
net cash flow year 1 = $397,600
net cash flow year 2 to 10 = ($604,800 + $218,400) / 2 = $411,600
NPV = -$1,800,000 + $397,600/1.14 + [$411,600 x 4.9464 (PV annuity factor, 14%, 9 periods)] = -$1,800,000 + $348,771.93 + $2,035,938.24 = $584,710.17
Mr. and Mrs. Keppner file a joint income tax return. Assume the taxable year is 2020. Required: Compute their standard deduction assuming that Mr. Keppner is age 68, and Mrs. Keppner is age 60. Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68. Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68. Mrs. Keppner is legally blind.
Answer:
Compute their standard deduction assuming that Mr. Keppner is age 68, and Mrs. Keppner is age 60.
standard deduction = $24,800 + $1,300 = $26,100Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68.
standard deduction = $24,800 + $2,600 = $27,400Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68. Mrs. Keppner is legally blind.
standard deduction = $24,800 + $2,600 + $1,300 = $28,700Explanation:
The regular standard deduction for married filing jointly is $24,800 during 2020, but for every person over 65, they get an additional $1,300. This also applies if any of them is blind.
If the tax filer is single or married filing separately, then the additional amount is $1,650.
Which types of credit are most similar to each other?
A-auto loan and mortgage loan
B-auto loan and personal loan
C-credit card and mortgage loan
D-mortgage loan and personal loan
Answer:
A. Auto loan and mortgage loan
Auto loans and mortgage loans are the types of Credit that are most similar to each other. Hence, option A is appropriate.
What is the meaning of Credit?Credit is the trust that permits one party to lend money or resources to another party, with the understanding that the second party will not immediately reimburse the first party but will instead repay it or return the resources at a later time.
The capacity to access products or services or borrow money with the idea that you'll pay for them later is known as credit. A credit is an entry in personal banking or financial accounting that signifies the receipt of money.
The word "credit" has a wide variety of meanings in the financial sector. Usually, it is defined as a contract formed by two parties whereby the borrower receives anything of value now though and agrees to return to the lender at a later period, with interest.
Hence, option A is correct.
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Michelle Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 37,000 $ 35,000 Work in process $ 21,000 $ 27,000 Finished goods $ 37,000 $ 52,000 Additional information: Raw materials purchases $ 71,000 Direct labor cost $ 96,000 Manufacturing overhead cost incurred $ 64,000 Indirect materials included in manufacturing overhead cost incurred $ 10,000 Manufacturing overhead cost applied to Work in Process $ 63,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The direct materials cost for July is: rev: 02_18_2019_QC_CS-159285 Multiple Choice $63,000 $69,000 $73,000 $71,000
Answer:
$73,000
Explanation:
The computation of the direct material cost is shown below:
As we know that
Direct material cost is
= Opening balance of raw material + purchase made - ending balance of raw material
= $37,000 + $71,000 - $35,000
= $73,000
We simply applied the above formula
Hence, the correct option is third i.e. $73,000
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020: 2021 2020 Sales $ 322,000 $ 295,000 Sales returns and allowances 7,200 4,400 Net sales $ 314,800 $ 290,600 Cost of goods sold: Inventory, January 1 48,000 21,000 Net purchases 140,000 133,000 Goods available for sale 188,000 154,000 Inventory, December 31 63,000 48,000 Cost of goods sold 125,000 106,000 Gross profit $ 189,800 $ 184,600 ATC's gross profit ratio (rounded) in 2021 is: (Round your answer to one decimal place e.g., 0.123 as 12.3%.)
Answer: 60.29%
Explanation:
Gross profit ratio is calculated as:
= (Gross profit/Sales) × 100
where
Gross profit = $189,800
Sales = $314,800
Gross profit ratio:
= (Gross profit/Sales) × 100
= (189,800/314800) × 100
= 0.6029 × 100
= 60.29%
People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices within their departments comply with the letter of the laws governing discrimination in employment find ways to develop strong relationships with and engage the entire workforce find ways to keep various groups within the workforce from creating conflict find commonalities among various groups displaying surface-level diversity
Answer:
find ways to develop strong relationships with and engage the entire workforce.
Explanation:
People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
Which statement correctly describes the current state of instant messaging in the workplace? Multiple Choice It is an established form of communicating in the workplace, and everyone agrees it should be formal. It is a new, undeveloped form of communication in the workplace, and attitudes toward it are consistent. It is an established form of communicating in the workplace, and attitudes toward it vary significantly. It is a relatively new, undeveloped form of communication in the workplace, and attitudes toward it vary. It is an established form of communicating in the workplace, and everyone agrees it should be informal.
Answer:
It is a relatively new, undeveloped form of communication in the workplace, and attitudes toward it vary.
Explanation:
For each of the following transactions of Spotlighter, Inc., for the month of January, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided. (Sample) Borrowed $5,440 from a local bank on a note due in six months.
Received $6,130 cash from investors and issued common stock to them.
Purchased $2,500 in equipment, paying $950 cash and promising the rest on a note due in one year. Paid $1,050 cash for supplies.
Bought and received $1,450 of supplies on account.
Answer:
Spotlighter, Inc.
Indication of the accounts, amounts, and direction of the effects on the accounting equation:
1. Cash and Notes Payable, $5,440: Assets +$5,440 = Liabilities +$5,440
2. Cash and Common Stock, $6,130: Assets +$6,130 = Liabilities + Equity $6,130
3. Equipment, Cash, and Notes Payable, $2,500: Assets +$2,500 -$950 = Liabilities + $1,550 + Equity
4. Cash and Supplies: Assets -$1,050 - $1,050 = Liabilities + Equity
5. Supplies + Accounts Payable: Assets + $1,450 = Liabilities + $1,450 + Equity
Explanation:
Spotlighter's accounting equation of assets equal to liabilities plus equity will always be in balance with each business transaction that occurs. This is because each transaction involves two accounts on either side or both sides of the equation with a plus or minus action.
Prat Corp. started the Year 2 accounting period with $33,000 of assets (all cash), $13,500 of liabilities, and $8,000 of common stock. During the year, the Retained Earnings account increased by $10,550. The bookkeeper reported that Prat paid cash expenses of $27,500 and paid a $2,300 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $6,000 cash to reduce the liability owed to the bank, and the business acquired $7,400 of additional cash from the issue of common stock.
a-1. Prepare an income statement for the 2018 accounting period.
a-2. Prepare a statement of changes in stockholders’ equity for the 2018 accounting period.
a-3. Prepare a period-end balance sheet for the 2018 accounting period.
a-4. Prepare a statement of cash flows for the 2018 accounting period.
b) Determine the percentage of total assets that were provided by creditors, investors, and earnings.
Answer:
1.Net Profit $12,850
Profit transfered to retained earnings $10,550
2. $37,450
3.$44,950
4a.$44,950
4b.CREDITORS=16.69%
INVESTORS=34.26%
EARNINGS=49.05%
Explanation:
1. Preparation of Income statement
Prat Corp. Income Statement
For the year ending 2018
Sales Revenue (Balancing figure) 40,350
(27,500+10,550+2,300)
Less: Expenses (27,500)
Net Profit 12,850
Less: Dividend (2,300)
Profit transfered to retained earnings $10,550
2. Preparation for Statement of changes in stakeholder's equity.
Common stock($) Retained Earnings($) Total($)
Opening Balance 8,000 11,500 19,500
(33,000-13,500-8,000)
Issue of common stock 7,400 - 7,400
Profit during the year - 12,850 12,850
(40,350-27,500)
Dividend paid - (2,300) (2,300)
Closing Balance $15,400 $22,050 $37,450
3. Preparation of Balance sheet
Prat Corp. Balance Sheet
As of December 31, 2018
ASSETS
Current Assets
Cash CFS 44,950
Total Assets 44,950
EQUITY AND LIABILITIES
Stockholder's Equity
Common Stock 15,400
Retained Earnings 22,050
Total Stockholder's Equity 37,450
Liabilities (13,500-6000) 7,500
Total Liability and stockholder's equity $44,950
(37,450+7,500)
4a. Preparation for Statement of Cash flows
Prat Corp. Cash Flow Statement
For the year ended 2018
Cash Flow from operating activites
Increase in Retained earnings 10,550
Net cash provided by operating activity 10,550
Cash flow from financing activity
Increase in common stock 7,400
Reduction in debt 6,000
Net cash provided by financing activity 1,400
(7,400-6,000)
Increase in cash 11,950
(10,550+7,400-6,000)
Cash at beginning of the year 33,000
Cash at end of the year 44,950
(33,000+11,950)
4b) Calculation to Determine the percentage of total assets that were provided by creditors, investors, and earnings.
CREDITORS=7,500/44,950
CREDITORS=0.1669*100
CREDITORS=16.69%
INVESTORS=15,400/44,950
INVESTORS=0.3426*100
INVESTORS=34.26%
EARNINGS =22,050/44,950
EARNINGS=0.4905*100
EARNINGS=49.05%
The balance in the Prepaid Rent account before adjustment at the end of the fiscal year is $10,000, which represents five months of rent which was paid on December 1. The year-end adjusting entry required on December 31 is Group of answer choices debit Prepaid Rent, $2,000; credit Rent Expense, $2,000 debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 debit Rent Expense, $10,000; credit Prepaid Rent, $10,000 debit Rent Expense, $2,000; credit Prepaid Rent, $2,000
Answer: debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
Explanation:
Balance in Prepaid rent account = $10,000
Rent expense = $10,000/5 months = $2,000
Adjusting journal entry To record the expiration of rent for December month
Date Accounts Titles and Explanations Debit Credit
Dec. 31 Rent Expense ($10,000/5 months) $2,000
Prepaid Rent $2,000
debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
Suppose that, three years ago, the small town of Middling experienced a sudden doubling of the birth rate. Today, the birth rate returned to normal. Relative to before the doubling of the birth rate, choose the statement that best describes the effect of these events on the market for an hour of babysitting services in Middling today.
a. The demand curve has shifted left, resulting in a fall in the equilibrium price and quantity.
b. The demand curve has shifted right, resulting in a rise in the equilibrium price and quantity.
c. The demand curve has shifted left, resulting in a rise in the equilibrium price and quantity.
d. The demand curve has shifted right, resulting in a fall in the equilibrium price and quantity.
Answer: The demand curve has shifted right, resulting in a rise in the equilibrium price and quantity.
Explanation:
Based on the scenario the.has been discussed in the question, there'll be a rightward shift in demand curve, this simply means that the demand for babysitting service will increase and when this happens, the babysitters will increase their prices and also the equilibrium quantity will also increase as there is increase in birth rate.
Therefore, the correct option is option B i.e. The demand curve has shifted right, resulting in a rise in the equilibrium price and quantity.
Production Costs 1. Transferred out 14,100 units. Beginning work in process $0 2. Started 4,400 units that are 60% Materials 63,825 complete as to conversion Labor 17,328 costs and 100% complete as Manufacturing overhead 19,500 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Incorrect answer. Your answer is incorrect. Try again. Determine the equivalent units of production for (1) materials and (2) conversion costs.
Answer and Explanation:
The computation of the equivalent units of productions for material and conversion is shown below:
Particulars Materials Conversion costs
Units transferred out 14100 14100
Add:
Ending work in process 4400 2640
(4,400 × 60%)
Total equivalent
units of production 18500 16740
During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000. Journalize the entry to record the flow of labor costs into production during May.
Answer: Please see answers in explanation column
Explanation:
a)Total Labor Cost for Job 200 = Labor Hours x Direct labor rate
= 2,500 x $ 28
= $ 70,000
b)Total Labor Cost for Job 305 = Labor Hours x Direct labor rate
= 3,000 x $ 24
= $ 72,000
Labor Cost for Job 200 and Job 305 during May = $ 70,000 + $ 72,000
= $ 142,000
Date Account Titles and Explanation Debit Credit
May 31st Work In Progress $142,000
Wages Payable $ 142,000
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $5,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $290 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $10,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $10,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Answer:
1. Dr Merchandise inventory 5,600
Cr Account payable 5,600
2. Dr Merchandise inventory 290
Cr Cash 290
3. Dr Account payable 650
Cr Merchandise inventory 650
4. Dr Account payable 4,950
Cr Bank 4,851
Cr Merchandise inventory 99
5. Dr Merchandise inventory 10,500
Cr Account payable 10,500
6. Dr Account payable 650
Cr Merchandise inventory 650
7. Dr Account payable 10,500
Cr Cash 10,395
Cr Merchandise inventory 105
Explanation:
Preparation of Journal entries
1. Journal entry to record purchase
Dr Merchandise inventory 5,600
Cr Account payable 5,600
(To record purchase)
2. Journal entry to record shipping charges
Dr Merchandise inventory 290
Cr Cash 290
(To record shipping charges)
3. Journal entry to record purchase return
Dr Account payable 650
Cr Merchandise inventory 650
(To record purchase return)
4. Journal entry to record amount paid
Dr Account payable 4,950
(5,900-650)
Cr Bank 4,851
(4,950*98%)
Cr Merchandise inventory 99
(4,950-4,851)
(To record amount paid)
5. Journal entry to record purchase
Dr Merchandise inventory 10,500
Cr Account payable 10,500
(To record purchase)
6. Journal entry to To record allowance
Dr Account payable 650
Cr Merchandise inventory 650
(5,600-4,950)
(To record allowance)
7. Journal entry to record amount paid
Dr Account payable 10,500
Cr Cash 10,395
(10,500*99%)
Cr Merchandise inventory 105
(10,500-10,395)
(To record amount paid)
10. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $20,000 $480,000 $450,000 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar
Answer:
$1,155,478
Explanation:
Present value is the sum of discounted cash flows
Present value can be found using a financial calculator
Cash flow in year 1 = $100,000
Cash flow in year 2 = $20,000
Cash flow in year 3 = $480,000
Cash flow in year 4 = $450,000
Cash flow in year 5 = $550,000
I = 9%
Present value = $1,155,478
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
During the first year of operations, a company sold $118,000 of goods to customers and received $99,000 in cash from customers. The remainder is owed to the company at the end of the year. The company incurred $71,800 in expenses for the year and paid $66,800 in cash for these expenses. The remainder is owed by the company at the end of the year. Based on this information, what is the amount of net income for the year?
Answer:
Net income = $46,200
Explanation:
In this scenario the company is using accrual method of accounting where some revenue is recieved in cash and the others are accounts receivable. Expenses are also paid paid partly in cash and the remaining is accounts payable.
Revenues and expenses however are recorded when they are earned or incurred.
The company earned revenue of $118,000, $99,000 is in cash and the rest is accounts receivable.
They also had expenses of $71,800 incurred with $66,800 paid in cash and the rest is accounts payable.
The net income will be revenue earned less expenses incurred.
Net income = 118,000 - 71,800
Net income = $46,200
There are some who say that California Community Colleges should go ahead and raise student fees from $46 per unit to $500 per unit? Today a typical economics class costs $138 ($46 x 3 units) and under this new proposal a typical economics class would cost $1,500 ($500 x 3 units). Why would this proposal probably backfire and become a disaster for full-time community college students who normally take three or four classes per semester?
This is the complete question
A.) Since student incomes and other financial resources are limited, the demand curve for a community college education is elastic. Raising tuition will force students to drop out.B)The community college would lose so many students that their total revenue would most likely drop dramatically. C)Students living in low-income and economically challenged areas might not be will-ing to take out student loans or use credit cards to finance their education. D)All of the statements listed above are correct
Answer:
All of the options are correct
Explanation:
All of the answers in the multiple choice question are correct. The reason is because, when tuition fees are raised for students, there would be quite a number who would drop out due to their inability to pay. The demand is elastic. A rise in tuition fees causes a drop in number of college students. This would hereby cause enrollment rates to fall and further bringing about a decline in revenue. Taking loans would not be a good idea since we have students with low income who would have problems with with paying back. With all of these the the proposal to increase fees would backfire.
The May transactions of Bramble Corp. were as followsMay 4 Paid $610 due for supplies previously purchased on account.7 Performed advisory services on account for $6,840.8 Purchased supplies for $870 on the account.9 Purchased equipment for $1,930 in cash17 Paid employees $700 in cash22 Received bill for equipment repairs of $80029 Paid $1,280 for 12 months of the insurance policy. Coverage begins JuneJournalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer: Please see answers in explanation column
Explanation:
a)Journal To record payment due for supplies
Date Account titles Debit Credit
May 4 Accounts Payable $610
Cash $610
(b)Journal To record services on account
May 7 Accounts Receivable $6,840
Service Revenue $6,840
c)Journal To record supplies on account
May 8 Supplies $870
Accounts Payable $870
d)Journal To record equipment purchased for cash
May 9 Equipment $1,930
Cash $1,930
May 17 Journal To record cash paid to employees
Salaries and Wages $700
Cash $700
May 22 Journal To record bill received for for Equipment repairs
Repair and Maintenance $800
To Accounts Payable $800
May 29 Journal to record Prepaid insurance
Prepaid Insurance $1,280
To Cash $1,280
One way consumers can evaluate alternatives is to identify important attributes and assess how purchase alternatives perform on those attributes. Consider the purchase of a tablet. Each attribute is given a weight to reflect its level of importance to that consumer. Then the consumer evaluates each alternative on each attribute (higher ratings indicate higher performance). A score can be calculated for each brand by multiplying the importance weight for each attribute by the brand's score on that attribute. These weighted scores are then summed to determine the score for that brand. Calculate the weighted scores for all brands. Which brand would this consumer likely choose? Which brand is this consumer least likely to purchase?
Answer:
1. Calculate the weighted scores for all brands.
Brand A score = (0.3 * 5) + (0.2 * 2) + (0.2 * 4) + (0.3 * 7)
= 4.8
Brand B score = (0.3 * 3) + (0.2 * 4) + (0.2 * 2) + (0.3 * 7)
= 4.2
Brand C score = (0.3 * 6) + (0.2 * 2) + (0.2 * 7) + (0.3 * 3)
= 4.5
2. Which brand would this consumer likely choose? Brand A
With the highest rating of 4.8, Brand A has the highest score and so will most likely be chosen.
3. Which brand is this consumer least likely to purchase? Brand B
With the lowest rating of 4.2, Brand B will be the least likely to be purchased.
A firm has 5 million shares outstanding with a market price of $30 per share. The firm has $30 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million How many shares will remain after the repurchase? Round your answer to the nearest whole number. shares
Answer and Explanation:
The computation is shown below:
For the firm value of operations
Value of the firm's operations = {market price per share × number of outstanding shares ] - Additional cash needed
= [$30 × 5,000,000] - $30,000,000
= $150,000,000 - $30,000,000
= $120,000,000
Now shares after repurchase is
= Number of shares - (Additional cash needed ÷ per share value)
= 5,000,000 - ($30,000,000 ÷ $30)
= 5,000,000 - 1,000,000
= 4,000,000 shares
