Answer: Dr Cash $3,960,000
Dr Discount on bonds payable $40,000
Cr Bonds payable $4,000,000
Explanation:
The journal entry to record the issuance of the bonds will be prepared as follows:
Dr Cash = 4,000,000 × 99% = $3,960,000
Dr Discount on bonds payable = $40,000
Cr Bonds payable = $4,000,000
(To record bond issued on discount)
Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $16,000 estimated residual value. (Do not round intermediate calculations.)What should be the book value of (a) the land and (b) the building at the end of year 2
Answer:
Missing word "Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use."
Total Cost of Land and Building (100%) = $120,000
Cost of Land (70%) = $84,000
Cost of Building (30%) = $36,000
Cost of Building Renovations = $10,000
Total Cost of Building = $36,000 + $10,000
Total Cost of Building = $46,000
1. Annual Depreciation(Year End Depreciation) = (Cost of Building - Residual Value)/ Number of Year
Annual Depreciation = $46,000 - $16,000 / 10
Annual Depreciation = $30,000 / 10
Annual Depreciation = $3,000
2. Book Value of Land at the end of two years = $84,000
Book Value of Building at the end of two years = $46,000 - ($3,000*2 year) = $46,000 - $6,000 = $40,000
Hence, Book Value of Land and Building at the end of two year is = $84,000 + $40,000 = $124,000
1: Một nhà máy khi đầu tư K (đơn vị: nghìn USD), sản phẩm cận biên theo vốn là
Q’(K) = 100K – 1/3
.
Biết rằng với mức đầu tư 8, sản lượng ở mức 4000 đơn vị. Cần đầu tư bao nhiêu để đạt mức sản lượng
8800 đơn vị?
A. 218; B. 212; C. 214; D. 216;
ne implication from the evidence on EI to date is that employers should consider it a factor in hiring employees, especially in jobs that demand ________. good mathematical skills good critical thinking skills good analytical skills the ability to work independently a high degree of social interaction
Answer:
a high degree of social interaction
Explanation:
Emotional intelligence can be regarded as "emotional quotient" It is been defined as the ability to understand as well as to use and manage one's emotions in positive ways so that individual can be relieve of stress or communicate effectively with others or express empathize with others. With Emotional intelligence individual can overcome challenges as well as defusing conflict. Emotional intelligence (EI) can be regarded as concept which is moderately correlated with job performance.
Components of Emotional intelligence are;
✓Social skills.
✓Self-awareness.
✓Motivation.
✓Empathy.
✓Self-regulation.
It should be noted that One implication from the evidence on EI to date is that employers should consider it a factor in hiring employees, especially in jobs that demand a high degree of social interaction.
You have just started a new job and plan to save $5,200 per year for 36 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.54 percent?
a. $1,331,411.17
b. $1,394,509.68
c. $1,346,423.14
d. $1,268,312.65
e. $1,333,878.83
Answer:
$1,394,509.68
Explanation:
Savings amount = $5200
Period = 36 years
Interest = 9.54 percent
We solve for the future value of the annuity
= $5200[(1+0.0954)³⁶-1/0.0954]
= 5200 x [1.0954³⁶-1/0.0954]
= 5200 x 268.1749
= 1,394,509.681 dollars
Therefore after retirement and at an interest rate of 9.54 percent, you would be earning 1,394,509.681 dollars.
Option b.
Exercise 9-15A (Static) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills
Answer:
a. 1.5 and 1.8
b. Montana
Explanation:
Below is the calculation for the current ratio:
a. Formula used, Current ratio = Current assets / Current liabilities
Current ratio of Kansas = 59000 / 40000 = 1.5
Current ratio of Montana = 78000 / 43000 = 1.8
b. The company that has a higher current ratio will have a greater likelihood to pay bills so Montana is the correct answer.
Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2019 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.
Instructions:
a. Compute the amount of the lease receivable.
b. Prepare all necessary journal entries for Crosley for 2020.
c. Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in 2020.
d. Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1,000 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.
Answer:
A.$230,410
B. 01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C)01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Dr Inventory $1,000
Cr Gain on Lease $1,000
Explanation:
A. Computation for the amount of the lease receivable.
PV of lease= PV(rate, nper, pmt, [fv]), [type])
PV of lease= -PV (6%,8,35004, , 1)
PV of lease =$230,410
Therefore the amount of the lease receivable is $230,410
B. Preparation of all necessary journal entries for Crosley for 2020.
01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C. Preparation of all necessary journal entries for the company in 2020.
01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Preparation to Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term
Dr Inventory $1,000
Cr Gain on Lease $1,000
Four fundamental factors affect the cost of money:
1. The return that borrowers expect to earn on their investments
2. The preference of savers to spend their income in the current period rather than delay their consumption until some future period
3. The risks associated with the investment
4. Expected inflation
Consider the following statements that address these factors, and indicate if you think each statement is true or false.
Statement
True
False
Investments providing cash flows that are more likely to equal their expected value are said to exhibit more risk.
The actual relationship between the risk-free rate of return (r*r*) and the expected future inflation rate or inflation premium (IP) is actually multiplicative—that is, [(1 + rRFrRF) x (1 + IP)] – 1—but it is often simplified to reflect an additive relationship.
All things being equal, rational savers and investors prefer to invest in an asset that provides a 12% return rather than one that provides an 8% return.
All things being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.
On average and everything else held constant, an investment that can provide a 4% return should attract more investment capital from savers/investors than an otherwise identical investment that can generate a 12% return.
Answer:
True statement is:
All thing being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.
Explanation:
Investors wish to receive less risk and more return. They prefer from more risk to lesser risk and receive risk premium on project that exhibit higher level of risk and delayed compensation. A project with 12% return will be more riskier than a project with 8% return. Rate of return increases as the level of risk increases.
1. Describe how a global project can be more complex than a project performed within just one country. How might these elements affect the successful outcome of the global project
Answer:
Globalization alters the project's characteristics. Multinational and multilingual initiatives are possible in global projects. Managers must be able to communicate with individuals from diverse nations.
A manager requires a different set of skills to manage projects on a global scale. The following are things he should be aware of:
Cultural sensitivity
Learn about the other organizations' traditions.
ability to operate in a fast-paced, unpredictably changing workplace
Create a productive team.
Develop a sense of trust
All of these elements are equally crucial for the project's worldwide success.
The initiatives that are held at a worldwide level are more difficult.
A company projects an increase in net income of $108000 each year for the next five years if it invests $900000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $300000. What is the annual rate of return on this investment?
a. 20.5%
b. 31.0%
c. 30.0%
d. 30.8%
Answer:
18 %
Explanation:
Annual rate of return on this investment = annual profit / average investment x 100
where,
annual profit = $108000
average investment = (initial cost + salvage value) ÷ 2
= ($900000 + $300000) ÷ 2
= $600,000
therefore,
annual rate of return on this investment = $108000 / $600,000 x 100
= 18 %
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $229,134 instead of the correct amount of $165,639. The effect on the balance sheet and income statement would be
Answer:
Assets will be overstated and Net Income understated
Explanation:
The effect on the balance sheet and income statement
Balance Sheet :
Inventory will be overstated
Inventory belongs to the Current Asset group
Meaning Assets will be overstated
Income Statement :
Inventory will be overstated
This reduces cost of sales with an amount greater
Meaning Profits will be overstated
Conclusion
The effect on the balance sheet and income statement would be : Assets will be overstated and Net Income understated.
East Valve Distributors distributes industrial valves and control devices. The Eastern control device has an annual demand of 9,375 units and sells for $100 per unit. The cost of ordering is $40 per order and the average carrying cost per unit per year is $0.75. Determine the economic order quantity.
Answer:
1000
Explanation:
Given:
Annual DEMAND, D = 9375
Holding cost, H = 0.75
Cost per order, S = 40
The Economic order quantity :
EOQ = √[(2 * D * S) / H]
EOQ = √[(2 * 9375 * 40) / 0.75]
EOQ = √[(750000) / 0.75]
EOQ = √1000000
EOQ = 1000
California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often all over the country. Demonstrate the effect of these events on the equilibrium price and quantity of wine.
Answer:
As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve. the quantity supplied of wine would reduce and price would increase
as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase
taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase
Explanation:
Any help 75 points
Quantity supplied varies positively (directly) with price, other things constant, as price rises, the quantity supplied rises; as price falls, the quantity supplied decreases
Answer:
law of supply
Explanation:
this is the law of supply
The Johnson Robot Company’s marketing managers estimate that the demand curve for the company’s robots in 2012 is P = 6,000 - 40Q where P is the price of a robot and Q is the number sold per month. If the firm wants to maximize its dollar sales volume, what price should it charge?
urrent Attempt in Progress Wildhorse Chemicals management identified the following cash flows as significant in its year-end meeting with analysts: During the year Wildhorse had repaid existing debt of $317,900 and raised additional debt capital of $645,200. It also repurchased stock in the open market for a total of $44,750. What is the net cash provided by financing activities
Answer:
$282,550
Explanation:
Calculation to determine the net cash provided by financing activities
Using this formula
Net cash provided by financing activities= Additional debt capital -Repaid existing debt- Repurchased stock
Let plug in the formula
Net cash provided by financing activities=$645,200-$317,900-$44,750
Net cash provided by financing activities=$282,550
Therefore the net cash provided by financing activities is $282,550
Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're making those decisions, and the goods or services being exchanged. For example, think about doing your laundry. Which of the following laundry-related items are nondurable goods?
a. A washing machine
b. Having a pair of pants dry-cleaned
c. A T-shirt
d. A clothes dryer
Kite Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $ 180,000
Variable expenses 108,000
Contribution margin 72,000
Fixed expenses 62,400
Net operating income $ 9,600
The contribution margin ratio is closest to:______.
a. 33%
b. 40%
c. 60%
d. 67%
Answer:
b. 40%
Explanation:
Contribution margin ratio = Contribution / Sales x 100
where,
Contribution = Sales - Variable Costs
= $180,000 - 108,000
= $72,000
therefore,
Contribution margin ratio = $72,000/ $180,000 x 100
= 40 %
thus,
The contribution margin ratio is closest to 40 %.
You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)
Answer and Explanation:
The computation of the expected return and the standard deviation is given below:
the expected return is
= $90,000 × 13% + $60,000 × 6.6%
= $15,660.00
And,
standard deviation of return is
= $90,000 × 13% × 44% + $60,000 × 6.6%
= $5,148 + $3,960
= $9,108.00
In this way it should be calculated
Indicate how the following transactions affect the accounting equation.
a. The purchase of supplies on account.
b. The purchase of supplies for cash.
c. Payment of cash dividends to stockholders.
d. Revenues received in cash.
e. Sale made on account.
Answer:
Hopefully I understood the question correctly. Below is the affect on
assets-liabilities= owners equity
Explanation:
A. Increases assets, increases liabilty
b. Increases assets, decreases assets (a wash for assets)
c. Decreases owners equity, decreases assets
d. Increases owners equity, increases assets
e. Increases owners equity, increases assets
On January 1, 2019, Sunland Company granted Sam Wine, an employee, an option to buy 1,000 shares of Sunland Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $5520. Wine exercised his option on October 1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Sunland Co. stock in 2021 were:
Using the fair value method, Sunland Company should recognize compensation expenses for 2019on its books in the amount of 2019 is $5,520.
What is a compensation expense?Compensation expenses are compensation-associated expenses used as a reward for exceptional job performance.
Examples of such compensation expense plans include bonuses, commissions, stock options, and profit-sharing.
Data and Calculations:Number of option shares granted = 1,000 shares
Grant price = $30
Exercise period = 5 years
Total compensation expense based on the fair value option pricing model = $5,520
The 2019 compensation expense = $6,000 ($30 x 1,000)/5
Question Completion:Quoted market prices of Sunland Co. stock in 2021 were:
July 1 = $30 per share
Oct 1 = $36 per share
Dec 1 = $40 per share
Required:
As a result of the option granted to Wine, using the fair value method, Sunland Company should recognize compensation expenses for 2019 on its books in the amount of 2019.
Thus, the 2019 compensation expense is $5,520.
Learn more about stock options at https://brainly.com/question/25693765
An important strength of the trait approach to leadership is that it: a. can help with leadership selection and development. b. helps in analyzing the situational demands. c. specifies which traits are needed for leadership in a given situation. d. specifies how much of a given trait is important for leadership.
Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.
Sept. 15 Purchased merchandise with an invoice price of $77,500 and credit terms of 3/5, n/15.
Sept. 29 Paid supplier the amount owed on the September 15 purchase.
Answer and Explanation:
The journal entries are shown below;
On Sept 15
Merchandise inventory $77,500
To Accounts payable $77,500
(Being purchase of inventory is recorded)
On Sep 29
Accounts payable $77,500
To Cash $75,175
To Merchandise inventory (3% of $77,500 ) $2,325
(Being payment to suppliers after discount is recorded)
Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
There is not a word length requirement for this question; however, you must show your work.
Answer:
Bell Corporation
The total variable cost is = $660,616
The total fixed cost is = $658,416
The total cost is = $1,319,032
The average variable cost per unit is = $75.07
The average total cost per unit is = $149.89
Explanation:
a) Data and Calculations:
Current activity level = 8,700 units
Variable cost based on the current activity level = $653,109
Unit variable cost = $75.07 ($653,109/8,700)
Fixed cost = $658,416
At activity level of 8,800 units, since 8,800 units are within the relevant range:
The total variable cost = $660,616 (8,800 * $75.07)
The total fixed cost = $658,416 (same as at 8,700 units)
The total cost = $1,319,032 ($660,616 + $658,416)
The average variable cost per unit = $75.07 ($653,109/8,700)
The average total cost per unit = $149.89 ($1,319,032/8,800)
Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
b. Give families cash payments on the condition that their children show up for school and medical exams.
c. Increase taxes on income from savings.
d. Protect property rights and enforce contracts.
Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,114,000 in invested assets, sales of $1,281,000, income from operations amounting to $209,000, and a desired minimum return of 15%. Round your answer to two decimal places. The investment turnover for Mason Corporation is a.1.38 b.1.15 c.1.72 d.0.92
Answer:
b.1.15
Explanation:
The computation of the investment turnover is shown below:
= Sales ÷ average operating assets
= $1,281,000 ÷ $1,114,000
= 1.1499
= 1.15
hence, the investment turnover is 1.15
Therefore the option b is correct
The same should be considered and relevant
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Assets increase $4,500 and liabilities decrease $4,500. Liabilities decrease $4,500 and assets increase $4,500. Equity decreases $4,500 and liabilities increase $4,500. Assets increase $4,500 and liabilities increase $4,500.
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
Based on the information given in the question, since the company buys an equipment which is an asset to the company, then there will be an increase in the assets by $4500.
Also, in thus case, the equipment was gotten on credit which is a liability. Therefore, the liabilities will increase by $4500 as well.
What are derivatives? Different types of derivatives ? What are Forward contracts ?
What are Futures contracts ? Features and benefits of derivatives ?
Explanation:
The most common types of derivatives are forwards, futures, options, and swaps. The most common underlying assets include commodities, stocks, bonds, interest rates, and currencies. Derivatives allow investors to earn large returns from small movements in the underlying asset's price.
Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
Project A Project B
Cost of equipment required $110,000 $0
Working capital investment required $0 $110,000
Annual cash inflows $20,000 $68,000
Salvage value of
equipment in six years $8,600 $0
Life of the project 6 years 6 years
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 16%.
Required:
1. Compute the net present value of Project A.
2. Compute the net present value of Project B.
3. Which investment alternative (if either) would you recommend that the company accept?
Answer:
$-32,775.48
$185,710.69
Project B
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Project A
Cash flow in year 0 = -$110,000
Cash flow in year 1 - 5 = $20,000
Cash flow in year 6 = $20,000 + $8,600 = 28,600
I = 16%
NPV = $-32775.48
Project B
Cash flow in year 0 = -$110,000
Cash flow in year 1 - 5 = $68,000
Cash flow in year 6 = $68,000 + $110,000 = $178,000
I = 16%
NPV = $185,710.69
Project B should be chosen because its NPV is positive
To find the NPV 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
The first step in the control process is ________. A) setting the desired morals
B) measuring actual performance
C) comparing performance against expectations D) applying managerial control
Answer:
comparing performance against expectations
If you have a derivative position where you might be obligated to sell Japanese yen, you are a: Group of answer choices Call option buyer/holder. Put option writer/seller. Put option buyer/holder. Call option writer/seller.
Answer:
The answer is B
Explanation:
The answer is B. Put option writer/seller. Put option writer has a right but not the obligation to sell an asset at a specified price while put option buyer is the reverse
Option A is wrong. Call option buyer/holder has the right but not the obligation to buy an asset at a specified price while call option writer/seller is the reverse.
