Answer:
This can be a positive challenge for Peter's career, as by taking on Thomas he will handle different tasks and job challenges, and by taking on the new responsibilities effectively, he will be able to be more recognized in the organization he works with and gain more trust from your superiors and Thomas, which is a positive point in the work environment that can lead to future promotions.
Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
Semi-annual Period-End Unamortized Discount Carrying Value
(0) 12/31/2018 $6,120 $99,880
(1) 6/38/2019 4,598 101,410
(2) 12/31/2019 3,868 102,940
(3) 6/38/2020 1,538 104,470
(4) 12/31/2020 0 106,000
Required:
Use the above straight-line bond amortization table and prepare journal entries for the following:
a. The issuance of bonds on December 31, 2018.
b. The first through fourth interest payments on each June 30 and December 31.
c. The maturity of the bonds on December 31, 2020.
Answer: See explanation
Explanation:
a. The issuance of bonds on December 31, 2018.
Dec 31, 2018.
Debit Cash $99880
Debit Discount on bonds payable $6120
Credit Bonds payable $106000
(to record bond issue)
b. The first through fourth interest payments on each June 30 and December 31.
June 30
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
Dec, 31.
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
June 30
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
Dec, 31
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
c. The maturity of the bonds on December 31, 2020.
Dec 31,2020
Debit Bonds payable = $106000
Credit Cash = $106000
(To record retirement)
A college charges a basic fee of $100 per semester plus an additional fee of $50 per credit hour. You take 10 credit hours this semester. The marginal cost to you of the 10th credit hour this semester is:
Answer:
The marginal cost of the 10th credit hour this semester is:
= $50
Explanation:
a) Data and Calculations:
Basic fee (Fixed cost) per semester = $100
Additional fee per credit hour = $50
Taking 10 credit hours will cost = $600 {$100 + ($50 * 10)}
b) Marginal cost is the differential change in the total cost that is incurred when the credit hours are increased by one credit hour by the student for this semester. It is also equal to the $50 that the college charges per credit hour.
Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer cost $2,000 and was purchased on May 4, 2020. It was the only equipment purchased by the theater for 2020. Using the MACRS system, how much is her depreciation deduction for 2020
Answer:
The depreciation for 2020 is $233.33
Explanation:
Under the MACRS, computer useful life is 5 years.
The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.
As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33
Suppose that at 500 units of output marginal revenue is equal to marginal cost. The firm is selling its output at $5 per unit and average total cost at the 500 units of output is $6. Its total fixed cost id $2000. On the basis of this information we:
A) can say that the firm should close down in the short run
B) can say that the firm is maximizing profit in the short run
C) cannot determine whether the firm should produce or shut down in the short run
D) can assume the firm is not using the most efficient technology
Answer: D) can assume the firm is not using the most efficient technology
Explanation:
The profit maximizing point of production for a company is the point where the marginal cost of production equals the marginal revenue. At this point, resources are being fully utilized efficiently to produce goods and any increase in production quantity would result in a loss.
In this case however, the company is at the profit maximizing quantity and still making a loss (selling price is less than average total cost). This can only mean that the company is not utilizing resources efficiently and this can be due to a lack of efficient technology.
The net present value of an investment to purchase a solar PV system that costs $10,000 and saves $2,000 per year for 20 years, and will increase the cost of reroofing by $5,000 in year ten, if your next best investment is 3% per year is about:
Answer:
The net present value of an investment to purchase a solar PV system that costs $10,000 and saves $2,000 per year for 20 years, and will increase the cost of reroofing by $5,000 in year ten, if your next best investment is 3% per year is about:
= $16,040.
Explanation:
a) Data and Calculations:
Investment cost for the purchase of a solar PV system = $10,000
Cost of reroofing in year ten = $5,000
Annual savings = $2,000
Period of investment = 20 years
Discount rate = 3%
Present value of Costs:
Investment at year 1 = $10,000
Re-Roofing cost in year ten = 3,720 ($5,000 * 0.744)
Total PV of costs = $13,720
Present value annuity factor at 3% for 20 years = 14.88
Present value of savings = $29,760 ($2,000 * 14.88)
Net present of the investment = $16,040 ($29,760 - $13,720)
If a firm buys a building so as to have office space for its workers, the monthly opportunity cost of the building is best measured as
Answer:
A. the rent the firm could earn if it rented the building to another firm
Explanation:
O A. the rent the firm could earn if it rented the building to another firm O B. the price the firm paid divided by twelve O C. the monthly mortgage payment the firm must pay O D. zero. Click to select your ans e here to search
There are two types of costs
1. Implicit cost or opportunity cost : Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. It is used in calculating economic profit
By using the office space for workers, the firm is forgoing the opportunity to rent out the space to another firm. The rent the firm could have earned is the opportunity cost
2. Explicit cost : It includes the amount expended in running the business. It is used in calculating accounting profit
They are : the monthly mortgage payment the firm
total amount expended in building
Kohl Co. provides warranties for many of its products. The January 1, 2019, balance of the Estimated Warranty Liability account was $55,726. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.84% of sales. During 2019, the actual cost of servicing products under warranty was $16,290, and sales were $5,870,500.
Required:
a. What amount of Warranty Expense will appear on Kohl Co.'s income statement for the year ended December 31, 2019? Warranty Expense Actual warranty expense Estimated warranty expense Warranty Expense
b. What amount will be reported in the Estimated Warranty Liability account on the December 31, 2019, balance sheet?
(Amounts to be deducted should be indicated by minus sign.) Estimated Warranty Liability, 1/1/19 balance Estimated Warranty Liability 12/31/19 balance
Answer:
a. Warranty Expense = Sales * Estimated Warranty Percentage
Warranty Expense = $5,870,500 * 0.84%
Warranty Expense = $49,312.20
b. Beg. Bal. of Estimated Warranty Liability Jan. 1, 2019 $55,726
Less: Actual warranty costs in 2019 ($16,290)
Add: Warranty expense accrued in 2019 $49,312.20
Ending Balance of Estimated Warranty Liability Dec. 31, 2019 $88,748.20
The Andrews Company has just purchased $43,088,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,308,800. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use?
Answer: $35,332,160
Explanation:
The boik value of the purchase will be calculated thus:
Cost of plant = $43,088,000
Useful life = 15
Savage value = $4,308,800
Depreciation per year = ($43,088,000 - $4,308,800) / 15
= $38779200/15
= $2,585,280
Accumulated depreciation after third year will be:
= $2,585,280 × 3
= $7755840
Book value = $43,088,000 - $7,755,840
= $35,332,160
a. Due to high demand and high prices, profits in the carpet-painting industry are at all-time highs. Since the carpet-painting industry is perfectly competitive, this will cause firms to (Click to select) in the long run. b. You observe high profits in the perfectly competitive pencil eraser industry. In the long run, you expect those profits to (Click to select) .
Answer:
enter into the industry
fall
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,280. What is the bond's nominal yield to maturity
Answer:
10.425%
Explanation:
Given :
Present value of bond, PV = 1280
Par value of bond = $1000
Annual coupon rate = 15%
Coupon payment frequency = twice a year (semiannual)
Years to maturity = 10 years
Using the information above by inputting into a financial calculator, the bond's nominal yield to maturity output is : 10.425%
Yield to maturity (YTM) : 10.425%
It could also be used with the PMT value :
PMT = par value * coupon rate /2
PMT = (1000 * (0.15/2)) = $75
PERIOD, n = 10 years ; semiannual = twice a year ;
n = 10 * 2 = 20
Also using this values with the financial calculator, gives 10.425%
Milton Corporation gives the preferred stockholders an annual dividend of $5 per share. Each share of stock sells for $100 and selling costs of $3. What is the company's cost of preferred stock
Answer:
Milton Corporation
The company's cost of preferred stock is:
= 5.2%.
Explanation:
a) Data and Calculations:
Annual dividend per share = $5
Selling price of preferred stock = $100
Flotation cost per share = $3
The Company's cost of preferred stock, using the flotation cost is = Dividend per share/(Selling price - Flotation cost per share)
= $5/($100 - $3)
= $5/$97
= 0.052
= 5.2%
If the flotation cost was not incurred in the current period, the cost of preferred stock will be = $5/$100 = 0.05 = 5%
On July 1, 2009, Ute Corporation paid $900,000 for 90% of Cougar Company's outstanding common stock. On that date, the costs and fair values of Cougar's recorded assets and liabilities were as follows:
Cost Fair Value
Cash and Receivables 50,000 50,000
Inventory 230,000 300,000
Buildings and equipment (net) 200,000 350,000
Liabilities 80,000 120,000
Net assets 400,000 580,000
Give the information above, what is the portion of the purchase price that will be allocated to the differential?
a. $220,000
b. $400,000
c. $420,000
d. $240,000
Answer:
c. $420,000
Explanation:
The computation of the portion of the purchase price that will be allocated to the differential is shown below:
= Fair value of consideration - fair value of net asset required
= ($900,000 ÷ 0.90) - $580,000
= $1,000,000 - $580,000
= $420,000
hence, the portion of the purchase price that will be allocated to the differential is $420,000
Therefore the option c is correct
True or false:
SOX compliance law now holds CEOs and CFOs of publicly traded companies accountable for their actions as officers in a publicly traded company.
Suppose you are stranded on an island. Luckily, this island is rich in clams and mangos. If you devote all of your time to harvesting clams, you can get 100 clams in a week. If you us all of your time to collect mangos, you can find 200 mangos in a week.
Assume it is possible to collect fractional amounts of both goods and draw a sketch of your production possibility frontier for a week. (Place mangos on the x-axis and clams on the y-axis.)
Calculate the opportunity cost of each good. (Use a straight-line PPF for this question because the opportunity cost is constant - it doesn't change)
Answer:
a. See the attached photo for the sketched PPF.
b. We have:
Opportunity cost of a clam = 2 mangos
Opportunity cost of a mango = 0.5 clam
Explanation:
a. Assume it is possible to collect fractional amounts of both goods and draw a sketch of your production possibility frontier for a week. (Place mangos on the x-axis and clams on the y-axis.)
Note: See the attached photo for the sketched PPF.
In the attached PPF, Point A indicates when you use all of your time to collect mangos and find 200 mangos in a week; while Point B shows when you devote all of your time to harvesting clams and can get 100 clams in a week. Since it assumed that it is possible to collect fractional amounts of both goods, Point C indicates when you use half of your time to find 100 mangos and harvest 50 clams in a week.
b. Calculate the opportunity cost of each good.
If you devote all of your time to harvesting clams or to collect mangos, we have:
100 clams = 200 mangos ................. (1)
Dividing both sided of equation (1) by 100, we have:
Opportunity cost of a clam = 2 mangos
Dividing both sided of equation (1) by 200, we have:
Opportunity cost of a mango = 1/2 clam, or 0.5 clam
6. Describe the role of human resource management in managing a workplace
Answer:
This is my answer
Explanation:
Hope it helps
Suppose the owners of the bank contribute an additional $175 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account a
Answer: increase; capital account
Explanation:
This would increase the securities account and increase the capital account.
When owners of a company put in their own money, it increase the capital of the company and this is reflected in the capital account. This is why the sale of shares to equity holders increases the capital account.
The owners of the bank in this instance, put forward additional cash. from their own funds This will therefore increase the capital of the bank and be reflected as an increase in the capital account.
This would increase the securities account and increase the capital account.
What is capital?Capital can be defined as the amount used in commencing a business. Firms, businesses require opening capital to begin or start off their operations.
At any point owners of a company put in their own money, it will increase the capital of the company hence reflect in the capital account. This is why the sale securities to holders increases the capital account.
Hence, additional input would increase the securities account and increase the capital account.
Learn more about capital here : https://brainly.com/question/1957305
If a security of $10,000 will be worth $15,036.30 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security
Answer:
6%
Explanation:
Implied interest rate = (Future value / present value)^(1/n) - 1
n = number of years
($15,036.30 / $10,000) ^(1/7) - 1
1.503630^(1/7) - 1
= 1.06 - 1 = 0.06 = 6%
Hypercompetitive environments are most common among global competitors, and Lululemon would fall into this category. Which of the following is a characteristic of hypercompetition that is an essential part of Lululemon's strategic management process?
a. High barriers to entry
b. A low-cost environment
c. A monopoly on resources
d. Successful innovation
Answer:
d. Successful innovation
Explanation:
The company should focused on the innovation of the product and the technology in order to develop the innovative yoga pants along with the fabrics. So for successful innovation it represent the key to received the competitor head for the hypercompetitive environment
So as per the given situation, the option d is correct
And, the same should be considered
Carlsberg beer has an elasticity of -0.5 and the company decided cut prices to increase the total revenues on New Year’s Eve.
itack on Titan sasageyo
g Mark quit his job as a salesman where he made $43,000 per year to start his own t-shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part- time help. As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. What is Mark's opportunity cost of running the business
Answer:
$43,000
Explanation:
Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
by starting his business, he forgoes the opportunity to earn 43k
Does an organization/job exist if there are no people present?
Answer:
yes an organization/ job will always exist even if no one wanted the job or no one presented because its part of a buissness requirement
hope this helps!
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Repurchase of common stock b. Cash received from customers c. Payment of accounts payable d. Retirement of bonds payable e. Purchase of equipment f. Purchase of inventory for cash
Answer:
Identification of Transactions as Operating, Investing, or Financing Activity
Transaction Activity
a. Repurchase of common stock Financing (Outflow)
b. Cash received from customers Operating (Inflow)
c. Payment of accounts payable Operating (Outflow)
d. Retirement of bonds payable Financing (Outflow)
e. Purchase of equipment Investing (Outflow)
f. Purchase of inventory for cash Operating (Outflow)
Explanation:
Operating activities show the cash activities that produce revenue and net income for the entity.
Investing activities are cash activities involved in the purchase and sale of noncurrent assets and other non-cash equivalent investments.
Financing activities are cash activities related to noncurrent liabilities and owners' equity.
1. Discuss the consumer decision making process for a product such as canned/packaged tuna and the response hierarchy model this is most likely to be applicable in the purchase of this product.
Answer
Because of the shift away from media promoting, the dynamic interaction has changed incredibly. When media promoting was weighty with COSI and StarKist, customers had gotten used to seeing the advertisements and their separate symbols. Buyers were extremely faithful to a particular brand and the reliability outgrew the recognizable symbols "Charlie the Fish" and the mermaid for COSI. Since the center has moved to principally print advertisements, advancements coming up, and coupons, there is something else entirely to keep the customer dynamic cycle occupied. An item, for example, canned fish isn't a need, and in this way can without much of a stretch be supplanted by substitutes. There is more seriousness since a buyer could simply pick a brand since it is the least expensive at a specific store or in light of the fact that they discovered a coupon in a notice. Brand devotion is done being squeezed into shoppers' psyches through business spots with an agreeable mermaid. Presently, organizations are battling to offer more advancements or more limits to build deals, yet the outcome is that for certain buyers each excursion to the store could end with an alternate brand on fish being bought. Purchasers are presently being reached at home through paper advertisements, intelligent item sites, and different advancements. Clients might have settled on their choice before going on an outing to the store. Clients would have followed the Progressive system of Impacts Model before the promoting endeavors moved from media publicizing. Shoppers knew about the brands since they were faithful and fabricated inclinations after some time that prompted buying one brand over the other. Presently, the last buy isn't driven by dedication, however rather each buy has the customer taking a gander at a few components. The activities of retail deals, print advertisements, or different advancements influence their purchasing conduct.
Networks are proven to be relevant in the context of innovation and entrepreneurship. Explain
the main features of an entrepreneurial network including the role of personal contact networks
and how they are developed over time by explaining at least three approaches that can be used to
manage network relationships. Support your answer with examples
Answer:
Accommodation
Engagement Refinement
Explanation:
In the entrepreneurial ecosystem, networks still remain a popular and important aspect which is often thought and seen as a stepping stone to achieving entrepreneurial greatness. This network simply entails the creation of a circle or set of skilled individuals usually in different strategic areas of specialization relevant to a certain business line or sector. This way embarking on projects tends to be much easier as these networks of people can offer help, tips or together engage in to proffer solution on time. Networks are created usually through meetups and good interpersonal relationships. Having professionals around can speed up processes and. However, networks has to be properly managed usy be being accommodating and warm when approcached; frequent engagement topics and trending issues, including the desire to learn more and measure up to new trends.
The two general approaches to forecasting discussed in the notes are:________
A. judgmental and qualitative
B. historical and associative
C. qualitative and quantitative
D. judgmental and associative
E. mathematical and statistical
Answer:
C. qualitative and quantitative
Explanation:
Qualitative forecasting should be used when the data is insufficient or less. Here the managers applied the subjective that depend upon the opinion and the consumer judgement to forecast the future. The methods like sales force, excuetive opinion represent the qualitative one
On the other hand the quantitative one should be used when the mathematical model to the past and the present are available. Like time series analysis, regression models, etc
hence, the option c is correct
Pikes Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December transactions are typical of those that occur at the resort.
Borrowed $745,000 from the bank on December 1, signing a note payable, due in six months.
1. Purchased a new snowplow for $27,500 cash on December 31.
2. Purchased ski supplies for $14,300 on account.
3. Incurred $31,800 in routine maintenance expenses for the chairlifts; paid cash.
4. Received $74,500 for season passes (beginning in the new year).
5. Daily lift passes were sold this month for a total of $84,200 cash.
6. Received a $520 deposit on a townhouse to be rented for five days in January.
7. Paid half the charges incurred on account in (c).
8. Incurred and paid $22,300 in wages to employees for the month of December.
Required:
1. Prepare accrual basis journal entries for each transaction.
2. Calculate the company’s preliminary net income.
Answer:
1. a. Dr Cash $745,000
Cr Note payable $745,000
b. Dr Equipment $27,500
Cr Cash $27,500
c Dr Supplies $14,300
Cr Accounts payable $14,300
d. Dr Repairs and maintenance expense $31,800
Cr Cash $31,800
e. Dr Cash $74,500
Cr Unearned revenue $74,500
f. Dr Cash $84,200
Cr Service revenue $84,200
g. Dr Cash $520
Cr Unearned revenue $520
h. Dr Accounts payable (14300*1/2] $7,150
Cr Cash $7,150
i. Dr Salaries and wage expense $22,300
Cr Cash $22,300
2. Net income $30,100
Explanation:
1. Preparation of the accrual basis journal entries for each transaction
a. Dr Cash $745,000
Cr Note payable $745,000
b. Dr Equipment $27,500
Cr Cash $27,500
c Dr Supplies $14,300
Cr Accounts payable $14,300
d. Dr Repairs and maintenance expense $31,800
Cr Cash $31,800
e. Dr Cash $74,500
Cr Unearned revenue $74,500
f. Dr Cash $84,200
Cr Service revenue $84,200
g. Dr Cash $520
Cr Unearned revenue $520
h. Dr Accounts payable (14300*1/2] $7,150
Cr Cash $7,150
i. Dr Salaries and wage expense $22,300
Cr Cash $22,300
2. Calculation to determine the company’s preliminary net income.
Service revenue $84,200
Less Expense :
Repairs and maintenance expense
($31,800)
Salaries and wage expense ($22,300)
Total expense (54100)
Net income $30,100
Therefore the company’s preliminary net income is $30,100
A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, and a tax rate of 21 percent. What is the cost of debt
Answer:
10.45%
Explanation:
Calculation to determine the cost of debt
B/S = 1.57 − 1
B/S = .57
.156 = .14 + .57(1 −.21)(.14 − RB)
.156 = .14 + .57(.79)(.14 − RB)
RB = .1045*100
RB= 10.45%
Therefore the cost of debt is 10.45%
The initial investment needed is $500,000 and the expected cash flows from this project will be 70,000 for the next 10 years. Will your project be approved, (generates a return higher than 12%). What cash flow would be required to get your project approved
Answer:
first part
Initial outlay = -$500,000
10 future cash flows = $70,000
PV of 10 future cash flows = $70,000 x 5.6502 (PVIFA, 12%, 10 periods) = $395,514
NPV = -$500,000 + $395,514 = -$104,486
the project will be rejected
second part
in order to have an NPV ≥ 0
annual cash flow = $500,000 / 5.6502 = $88,492.45 or higher
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,000 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions.
Answer and Explanation:
The journal entries are as follows:
a. Bad debt $9,000
To account receivable $9,000
(Being the bad debt expense is recorded)
b. Account receivable Dr $9,000
To bad debt $9,000
(being the reversal is recorded)
c. Cash Dr $9,000
To account receivable $9,000
(Being the recovery of the bad debt is recorded)
A company has $104,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $940 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Answer:
$4,260
Explanation:
The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense is given below:
Estimated Uncollectible Accounts is
= $104,000 × 5%
= $5,200
Now
Bad debt expense is
= Estimated Uncollectible accounts - credit balance in Allowance account
= $5,200 - $940
= $4,260
