Answer:
a requirements contract
Explanation:
Since in the question it is mentioned that the company used its cork for the protective drinks and if Cat comes into an agreement with a cork exporter in order to buy all of the cork that is required to manufacture the products. This would represent the requirement contract
As the requirement contract is the contract in which the purchased agrees to buy all the goods that are required from a seller
A young couple has $300,000 that they have used to aggressively trade growth stocks. They place their account with a Registered Investment Adviser and direct the adviser to continue the strategy. After 2 years, the value of the account is down to $100,000 and the couple complains to the adviser about the investment performance. The investment adviser should:
Answer:
the investment advisor should do nothing
Explanation:
In the scenario that is being described, the investment advisor should do nothing. This is because the investment advisor did nothing wrong or illegal, he simply followed the instructions that were strictly provided by the clients, therefore acting in accordance with the customers' wishes. Meaning that he has nothing to fear from the client's being accept because they have no standing to take legal action against the advisor.
All the following statements concerning requirements to reinstate a lapsed life insurance policy are correct EXCEPT: Group of answer choices The lapse must have resulted from other than the surrender of the policy for its cash value. There is no time limit on when the policy may be reinstated. Evidence of insurability is required. All overdue premiums must be paid along with interest from the premium due dates.
Answer:
Correct Answer:
b. There is no time limit on when the policy may be reinstated.
Explanation:
In life insurance, which is an insurance against event in the life of the individual in question, it is expected that, the person will be paying his premium fee regularly.
In a situation, there was a lapses, in-order to reinstate the life insurance policy, it must be reinstated within 1 year in-order to be valid.
Jill wants to start her own business, but knows little about how to set up an accounting system or interpret financial information. "I'm not worried about accounting," she tells her friends. "I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on what I like—finding ways to satisfy my customers." Which of the following is the best response to Jill's comments?A. Fine. Just make sure the bookkeeper you hire knows how to use a database, since this type of software is the heart of any efficient accounting system. B. Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions. C. Most entrepreneurs would agree with your opinion. The work done by accountants is mainly clerical in nature, so time spent by business owners on accounting tends to take them away from more important tasks. D. You have a good plan. Only managers of large firms require knowledge of accounting. Owners and managers of small businesses can easily get by with just a part-time bookkeeper.
Answer:
B. Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions
Explanation:
You may employ someone to manage the accounts, but you do need to know how to read, understand, and interpret simple reports of accounting to make sound business decisions, as well as understanding whether someone is committing fraud with you. A simple knowledge can help with all of this.
The smooth operation of a company is practically impossible without being able to interpret, comprehend and evaluate accounting reports and financial statements.
Therefore according to the given situation, the correct answer is b
The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the company, Neha Patel, has determined that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $82.50. The concept that as plant output expands, unit costs decrease, is known as Group of answer choices
Answer:
Economies of scale.
Explanation:
In this scenario, the cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The chief financial officer (CFO) of the company, Neha Patel, has determined that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $82.50. The concept that as plant output expands, unit costs decrease, is known as economies of scale.
Economies of scale in microeconomics can be defined as cost reductions or cost advantages that arises when a business entity increases its level of production or are large in size.
This ultimately implies that, when a company chooses a convenient scale of operation or reduce its scale of production, this would lead to a reduction in the cost of production and consequently, some benefits such as lower long-run average cost, increased sales, profits and lower cost price for the consumers of these finished products.
In the cartel model Group of answer choices firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products. each firm acts as a price taker. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions. firms coordinate their decisions to act as a multiplant monopoly.
Answer:
firms coordinate their decisions to act as a multi-plant monopoly..
Explanation:
A cartel is a group of countries or firms that have reached an agreement to work together in order to influence or decide market prices for goods and services by controlling sales and the level of production or quantity of output.
In the cartel model firms coordinate their decisions to act as a multi-plant monopoly, wherein the level of production or quantity of output is divided into many production plants.
The main purpose of having the cartels do this is to make marginal cost (MC) equal to marginal revenue (MR) in the various production plants, so as to create monopoly profits by making sure each plant has its own cost.
The XYZ Corporation's A-rated convertible debenture is currently selling for 90. If the bond's conversion price is $40, what is the parity price of the stock
Answer:
$36
Explanation:
Step 1
We find the number of shares the bond is convertible into. This means we find the conversion ratio.
Conversion ratio formula =
Par value/ Bond conversion price
Par value = $1,000
Bond conversion price = 25
Conversion ratio = $1,000/25
= 40 shares.
Step 2
The parity price of the stock is calculated as:
Rate of the convertible debenture (in dollars/ Conversion ratio
In the above question, rate of convertible debenture = 90
converting to dollars = 90 × $10
= $900
Conversion ratio = 40 shares
Parity price of stock = $900/40 shares
= $36
Anastasia makes a good salary but wants to be sure she has good credit so she can buy a condominium when she has saved enough money for a down payment on a mortgage. What is the best thing she can do to improve her creditworthiness
Answer: She should pay down both her student loan and the credit card debt
Explanation:
From the question, we are informed that Anastasia makes a good salary but wants to be sure she has good credit so she can buy a condominium when she has saved enough money for a down payment on a mortgage.
The best thing she can do to improve her creditworthiness is for her pay down both her student loan and the credit card debt. This would help her to increase her creditworthiness.
Answer:
B) She should pay down her student loan and credit card debt.
Explanation:
edge 2021
To satisfy their economic wants, people ______ goods and services.
Answer:
a) Consume
Explanation:
These are options for the question;
a)consume
b) regulate
c) produce
In the concept of economics, consumption which is reffered to as sole purpose of production is the utilization of goods and services for the satisfaction of consumers. It should be noted that consumer conclude on what to consume in order to get their economic want is satisfied.
Human economic wants are numerous, and their is purchasing power by the consumer to get what they want.
Therefore, for people to satisfy their economic wants, people consume goods and services.
Transactions are posted into ledger account from ---
Answer:
The correct answer is "Journal entries passed in the journal".
Explanation:
Posting throughout ledger has always been decided to make from transactions throughout the journal passed across. This becomes important to keep in mind that almost every entrance in something like a journal would also have to be commented on among all transactions debited or otherwise given credit throughout the entry to something like the journal.wants to use the capital retention approach to determine how much life insurance to purchase. Robert would like to provide $35,000 per year to his family, forever, if he dies. The assets he owns today will provide $25,000 in annual income without the liquidation of these assets. If life insurance proceeds can be invested to earn a 5 percent annual return, how much life insurance should Robert purchase (if any) to fund the additional income needed to meet his $35,000 annual income goal
Answer: $200,000
Explanation:
Robert's wants to provide $35,000 per year to his family after he dies
Amount which will be catered for by the asset he owns today = $25,000
Life insurance earns 5% annual return
The amount of life insurance which should be purchased ;
Amount required from insurance proceed:
$35, 000 - $25000 = $10000
If insurance earns 5% per annum;
Let Amount of life insurance bought = y
y * 5% = required amount from insurance
y * 0.05 = 10,000
0.05y = 10,000
y = 10000 ÷ 0.05
y = $200,000
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that Group of answer choices
Answer:
Federal and state courts have concurrent jurisdiction.
Explanation:
The concurrent jurisdiction arises when there are more than one court that contain a distinct system but has similar jurisdiction for the same case. Now if concurrent jurisdiction arise between the federal and state courts so the rule would be seen as superior because of clause of supremacy.
Hence, the correct option is b.
: Stock in Daenerys Industries has a beta of .95. The market risk premium is 7 percent, and T-bills are currently yielding 3.6 percent. The company’s most recent dividend was $2.05 per share, and dividends are expected to grow at an annual rate of 4.1 percent indefinitely. If the stock sells for $39 per share, what is your best estimate of the company’s cost of equity?
Answer:
The best estimate of the company’s cost of equity is 9.81 %.
Explanation:
Use both the Growth Model and the Capital Asset Pricing Model (CAPM) to estimate the cost of equity and find the average.
Cost of Equity (Growth Model) = Recent Dividend Payout Ratio/ Market Price of Stock + Expected Growth
= $2.05 / $39.00 + 0.041
= 9.36 %
Cost of Equity (CAPM) = Return on Risk Free Security + Beta × Risk Premium
= 3.60 % + 0.95 × 7.00 %
= 10.25 %
Average = (9.36 % + 10.25 %) ÷ 2
= 9.81 %
The cost of equity of a company is 9.875% after taking the average of the cost of equity by the CAPM approach and the cost of equity by the Dividend growth model.
What is meant by the cost of equity?The cost of equity is the percentage of return earned by a stock investor by making an investment.
Given values for CAPM Approach:
A beta factor of stock: 0.95
Market risk premium: 7%
Return on T-bills: 3.6%
Step-1 Computation of cost of equity by using the CAPM approach:
[tex]\rm\ Cost \rm\ of \rm\ Equity=\rm\ Return \rm\ on \rm\ T-Bills + (\rm\ Market \rm\ Risk \rm\ Premium \times\ \rm\ Beta \rm\ Factor) \\\rm\ Cost \rm\ of \rm\ Equity= 3.6\% + (7\% \times 0.95)\\\rm\ Cost \rm\ of \rm\ Equity=10.25\%[/tex]
Given values for dividend growth approach:
Dividend rate: $2.05
Expected growth in dividend: 4.1 %
Stock price: $39
Step-2 Computation of cost of equity by using the dividend growth approach:
[tex]\rm\ Cost \rm\ of \rm\ Equity=\frac{\rm\ Dividend \rm\ Rate \times\ (1+ \rm\ Growth\rm\ Rate)}{\rm\ Stock \rm\ price} + \rm\ Growth \rm\ rate\\\rm\ Cost \rm\ of \rm\ Equity=\frac{\$2.05 \times\ (1+ 0.041)}{ \$39} + 0.041\\\rm\ Cost \rm\ of \rm\ Equity=\frac{\$2.13 }{\$39} + 0.041\\\rm\ Cost \rm\ of \rm\ Equity=9.50\%[/tex]
Step-3 Computation of average of both methods:
[tex]\rm\ Average \rm\ Cost \rm\ of \rm\ Equity= \frac{\rm\ Cost \rm\ of \rm\ Equity \rm\ in \rm\ CAPM \rm\ Method + \rm\ Cost \rm\ of \rm\ Equity \rm\ in \rm\ Dividend \rm\ growth}{2}\\\rm\ Average \rm\ Cost \rm\ of \rm\ Equity=\frac{10.25\% + 9.50\%}{2} \\\rm\ Average \rm\ Cost \rm\ of \rm\ Equity=9.875\%[/tex]
Therefore, the cost of equity comes out to be 9.875% by using the average of the two methods.
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During the early years of the Reagan administration, some of the presidential advisors argued that tax cuts could reduce inflation because they would give people an incentive to produce more. Critics of this argument believed that tax cuts would increase inflation, not reduce it. The critics were arguing that tax cuts move the:
Answer:
The correct solution is "Aggregate demand curve to the right with little change in long-run aggregate supply".
Explanation:
Together all long-term aggregate demand curve implies that the average has some degree of environmental production this could generate, anywhere at a competitive price. When major inflation increases prices multiply simultaneously, and now in the long term, your community could still contribute to the provision. The critics argued that tax reductions shift the aggregate equilibrium to the right with really no improvement throughout the aggregate production in the long term.College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation
Answer:
behavioral segmentation
Explanation:
Based on this scenario, it can be said that MicroFridge is using behavioral segmentation. This is a form of marketing segmentation that focuses on dividing individuals into different groups based on their specific behavioral patterns that they share in common. Which in this case is the fact that the students tend to keep and prepare their own food and snacks to save money. By targeting individuals with these behaviors they are more likely to sell their product due to its unique features that become beneficial to individuals exhibiting these behaviors.
Anchor Resort and Casino requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of
Complete Question:
Anchor Resort and Casino requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of?
Group of answer choices
A) too much control.
B) overemphasis on paperwork.
C) overemphasis on means instead of ends.
D) overemphasis on one instead of multiple approaches.
E) too little participation.
Answer:
D) overemphasis on one instead of multiple approaches.
Explanation:
In this scenario, Anchor Resort and Casino requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift.
Hence, this organization has overcome the control system barrier of overemphasis on one instead of multiple approaches.
This ultimately implies that, Anchor Resort and Casino has a variety of ways to ensure that its dealers are operating in line with set rules, standards, guidelines and policy of the company, so as to achieve organizational aims, goals and objectives successfully.
The multiple approach of the control system includes;
1. The casino dealers are expected to possess a license.
2. The casino dealers are being monitored through a closed-circuit TV (CCTV).
3. The casino dealers are required to give detailed reports at the end of each shift.
The General Service Contractor Company paid $450,000 for a house and lot. The value of the land was appraised at $200,000 and the value of the house at $250,000. The house was then torn down at an additional cost of $35,000 so that a warehouse could be built on the combined lots at a cost of $1,250,000. What is the value of the property with the warehouse
Answer: $1,450,000
Explanation:
From the question, we are informed that the General Service Contractor Company paid $450,000 for a house and lot. The value of the land was appraised at $200,000 and the value of the house at $250,000.
We are further told that the house was then torn down at an additional cost of $35,000 so that a warehouse could be built on the combined lots at a cost of $1,250,000.
The value of the property with the warehouse will be:
= $200,000 + $1,250,000
= $1,450,000
A company sells square carpets for $55 per square foot. It has a simplified manufacturing process for which all the carpets each week must be the same size, and the length must be a multiple of a half foot. It has found that it can sell 100100 carpets in a week when the carpets are 33 ft by 33 ft, the minimum size. Beyond this, for each additional foot of length and width, the number sold goes down by 55. What size carpets should the company sell to maximize its revenue? What is the maximum weekly revenue?
Complete Question:
A company sells square carpets for $5 per square foot. It has a simplified manufacturing process for which all the carpets each week must be the same size, and the length must be a multiple of a half foot. It has found that it can sell 100 carpets in a week when the carpets are 3 ft by 3 ft, the minimum size. Beyond this, for each additional foot of length and width, the number sold goes down by 5. What size carpets should the company sell to maximize its revenue? What is the maximum weekly revenue?
Answer:
1. The size carpets of 3 ft by 3 ft will maximize the company's revenue. This is also the minimum size. This is more so given that "for each additional foot of length and width, the number of sales goes down by 5."
2. The maximum weekly revenue:
The maximum weekly sales revenue
= $45 x 100
= $4,500
Explanation:
a) Data and Calculations:
3" x 3" = 9 squared feet
1 squared foot sells for $5
Therefore, 9 squared feet will sell for $45 ($5 x 9)
Maximum number of sales = 100 carpets per week
Therefore, the maximum sales revenue = $45 x 100 = $4,500
b) To maximize company revenue, this company must sell the highest number of carpets possible and not less. If this company increases the size of the carpet beyond the minimum, sales will reduce by 5, according to the information provided. However, there was no indication that the reduced sales will result to increased price per carpet.
self-employed cash basis taxpayer, took out a loan to use in her business. The loan principal is to be repaid on November 30 of Year 3. Jones prepaid the entire interest of $12,000 on December 1 of Year 1. What amount of interest was deductible on Jones' Year 2 income tax return?
Answer: $6,000
Explanation:
Interest is deductible from Income tax but when interest to be paid is more than 12 months, the interest would need to be evenly spread over the period that they apply to. The total interest is $12,000 but the repayment period is 2 years. This means that the interest would need to be spread out over the 24 months involved at a rate of;
= 12,000/24
= $500
In Year 2 therefore, the relevant amount that can be deducted will be for 12 months;
= 500 * 12
= $6,000
Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should
Answer: include a credit to equipment accumulated depreciation account.
Explanation:
Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to equipment accumulated depreciation account.
It should be noted that permanent Impairment is an injury suffered buy an individual which has a permanent impact on the way the individual functions.
Maddie is the CEO of Stevenson, Ross, and Warner (SRW), a regional accounting firm. SRW offers services in most areas of accounting, including auditing and consulting services. The firm must follow the GAAP rules, just like any other accounting firm. If there are information gaps that are not addressed and resolved by the firm, SRW could be considered a violator of the Sarbanes-Oxley Act. Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations. Like any other industry, accounting is a competitive industry and employees of accounting firms must be productive, progressive, and well trained. Refer to Stevenson, Ross, and Warner. If you applied for a job at SRW and were asked to state the accounting equation, which of these would you state?
Answer:
Assets = Liabilities + Owners' Equity
Explanation:
The reason is that it is the basic accounting equation that forms the basics of the double entry. It is main equation from which all the Gernally Accepted Accounting Principles and International Accounting Standards had originated. This helps us to understand a big picture of an entity either it is by record keeping, financial statement analysis, uncovering frauds, provision of system of check and balance and many more. This is the reason why the basic accounting equation has immense importance in Sarbanes Oxley Act, Companies Act, etc.
Nefchio is a popular website among online gamers. It uses interactive and collaborative features to create a richer, more interesting, and more useful experience for its users to beat the competition in the industry. In this scenario, Nefchio uses a new approach called _____.
Answer: Web 2.0
Explanation:
Web 2.0 are the websites that are easy to use, have participatory culture, utilize user-generated content for its end users.
This is the method used by Nefchio as we are informed that it uses interactive and collaborative features to create a richer, more interesting, and more useful experience for its users to beat the competition in the industry.
Organizations uses different kinds of approach. Nefchio uses a new approach called Web 2.0.
Web 2.0 is commonly referred to as participative/participatory web and social web. It is simply a type of websites that is based on user-generated content, ease of use, participatory culture etc., for its users.It was created by Darcy DiNucci in 1999 and was said to be made popular by Tim O'Reilly and Dale Dougherty in 2004.
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Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue center?
A. The number of units sold differs from planned sales levels
B. The cost of sales
C. The selling price per unit
D. Both the selling price and the number of units sold
Answer: The number of units sold differs from planned sales levels
Explanation:
Out of the options that were given in the question, the option that will cause the master budget variance between the amounts in the master budget and the flexible budget of a revenue center is when the thee number of units sold differs from planned sales levels.
Since there is a difference between the amounts, it simply means that there will be a variance in the master budget as well.
This client has just been informed that he has been promoted and will be earning $190,000 per year instead of $140,000 per year. The customer intends to use this extra income to fund his 13-year old child's college education. Based on the customer's existing asset mix, the best recommendation would be for the customer to invest the extra $50,000 per year into a(n):
Complete question:
Customer Name: John Doe
Age: 41
Marital Status: Married
Dependents: 1 Child, Age 13
Occupation: Engineer
Household Income: $140,000
Net Worth: $240,000 (excluding residence)
Own Home: Yes
Investment Objectives: Total Return / Tax Advantaged
Investment Experience: 12 years
Current Portfolio Composition: 8% Common Stocks
62% Corporate Bonds
30% Money Market Fund
This client has just been informed that he has been promoted and will be earning $190,000 per year instead of $140,000 per year. The customer intends to use this extra income to fund his 13-year old child's college education. Based on the customer's existing asset mix, the best recommendation would be for the customer to invest the extra $50,000 per year into a(n):
A. money market fund
B. income fund
C. growth fund
D. inflation protected fund
Answer:
C.) Growth fund
Explanation: With the help of a growth fund which the client may be able to achieve his aim, the growth fund is mainly fo used on multiplication and expansion of investment which aid the rapid increase in invested capital. With a growth fund, rather than being paid dividends on investment, they are added to the capital and reinvested which will aid the capital outlay of the investor within the specified period.
Also, previous investment in equities is significantly low at 8%, so investing the pay rise in a growth fund is a very good idea.
The country of Maroji is a major exporter of dairy products. The country of Hipon is a major exporter of heavy machinery but also has a sizeable domestic dairy industry. Since it imports a sizeable amount of heavy machinery from Hipon, Maroji, at the request of Hipon, limited the amount of dairy products it exports to Hipon each year. This is an example of
Answer:
voluntary export restraint (VER).
Explanation:
In this scenario, the country of Maroji is a major exporter of dairy products. Also, the country of Hipon is a major exporter of heavy machinery but has a sizeable domestic dairy industry. Since it imports a sizeable amount of heavy machinery from Hipon, Maroji, at the request of Hipon, limited the amount of dairy products it exports to Hipon each year. This is an example of voluntary export restraint (VER).
A voluntary export restraint (VER) can be defined as a self-imposed trade restriction on the amount of goods that an exporting country exports to another country such as an importing country. It involves restrictive trade barriers between an exporting and an importing country, such as embargoes and quotas.
A company purchased a computer system at a cost of $34,000. The estimated useful life is 8 years, and the estimated residual value is $9,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year
Answer:
Year 2= $4,687.5
Explanation:
Giving the following information:
Purchase price= $34,000
Useful life= 8 years
Salvage value= $9,000
To calculate the depreciation expense under the double-declining-balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= [(34,000 - 9,000)/8]*2= $6,250
Year 2= [(25,000 - 6,250)/8]*2= $4,687.5
Entries for Stock Dividends
Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (3,000,000 shares authorized; 2,200,000 shares issued), $15 par, $33,000,000; Paid-in capital in excess of par—common stock, $9,000,000; and Retained earnings, $89,550,000. The board of directors declared a 5% stock dividend when the market price of the stock was $18 a share. Healthy Life reported no income or loss for the current year.
For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown.
a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.
Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock
Feedback
Recall that a stock dividend affects only stockholders' equity.
Learning Objective 3.
a2. Journalize the entry to record the issuance of the stock certificates.
Stock Dividends Distributable
Common Stock
Feedback
What is the company giving to the stockholders?
Learning Objective 3.
b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.
Total paid-in capital $
Total retained earnings $
Total stockholders' equity $
c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.
Total paid-in capital $
Total retained earnings $
Total stockholders' equity $
Answer and Explanation:
a.1 The Journal entry is shown below:-
Stock dividend Dr, $1,980,000 (2,200,000 × $18 × 5%)
To Stock dividend distributable $1,650,000 (2,200,000 × $15 × 5%)
To paid in capital in excess of par-common stock
$330,000 (2,200,000 × ($18 - $15) × 5%)
(Being stock dividend is recorded)
2. Stock dividend distributable Dr, $1,650,000
To common stock $1,650,000
(Being stock dividend is recorded)
b. The computation of amounts before the stock total paid in capital, total retained earnings, and total stockholders' equity is shown below:-
Total paid in capital is
= $33,000,000 + $9,000,000
= $42,000,000
Total retained earning = $89,550,000
Total stockholder equity is
= $42,000,000 + $89,550,000
= $1,31,550,000
c. The computation of amount after the stock dividend total paid-in capital, total retained earnings, and total stockholders' equity is shown below:-
Total paid in capital is
= $42,000,000 + $1,980,000
= $43,980,000
Total retained earning is
= $89,550,000 - $1,980,000
= $87,570,000
Total stockholder equity is
= $43,980,000 + $87,570,000
= $131,550,000
Andrea hired Jack to be the sales agent for her paintings. However, in a month's time, she terminated the agency with Jack. Harold, a customer who had dealt with Jack earlier, was not aware of the termination. Harold approached Jack to buy a painting and wrote him a check of $5,000, the advance payment for the painting which Jack promised would be delivered in two weeks. When Jack did not contact Harold later, Harold demanded that Andrea honor the contract, since Jack sold the picture as her agent. Which of the following is true of this situation?
A. Since Jack had apparent authority, Andrea is liable to honor his contract with Harold.
B. Harold's duty was to contact Andrea. His failure to do this removes her liability to honor the contract.
C. Jack had express authority as Andrea's agent, which is not terminated with the termination of their agency.
D. As Andrea terminated the agency with Jack in violation of his rights, Jack has the direct authority to sell her paintings.
Answer:
A. Since Jack had apparent authority, Andrea is liable to honor his contract with Harold.
Explanation:
The Contract defines that when two or more persons bound for a purpose legally.
Contract = Agreement + enforceble
Here as per the given situation Andrea hired Jack as the sales representative for her portraits. She suspended the organisation with Jack though, in a month's time.
Harold, a client who had previously worked with Jack, was not informed of the closure. Harold contacted Jack to purchase a painting, and gave him a $5,000 check, the painting advance payment that Jack agreed would be shipped in two weeks.
As Jack later failed to reach Harold, Harold requested that Andrea uphold the deal, as Jack sold the picture as her agent
Andrea is liable to uphold his deal with Harold, as Jack had obvious authority.
Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal annual year-end payments of $5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note
Answer:
$5,560
Explanation:
Given the following:
Present value of note recorded by Leaf on purchase date = $19,485
Annual year end payments = $5,009
Number of payments required = 5
Therefore, total amount received by Leaf :
Annual year-end payment * number of payments
$5,009 * 5 = $25,045
Present value of note recorded at purchase =$19,485
Therefore, total interest revenue earned by Leaf over the life of this note:
Total amount received - present value of note recorded
$25,045 - $19,485
= $5,560
Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed expenses per month $ 60,000 The breakeven point in terms of volume of units per month i
Answer:
1,000 units
Explanation:
According to the given situation, the computation of break even point is shown below:-
Break even point in units is
= Fixed cost ÷ (Selling price per unit - contribution margin per unit)
= $60,000 ÷ ($100 - $40)
= $60,000 ÷ $60
= 1,000 units
Therefore for computing the break even point in units we simply solved the above equation
Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $198,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. The cash payments for manufacturing in the month of June are:___________.a. $212,750b. $183,200c. $183,950d. $217,600
Answer:
c. $183,950
Explanation:
The calculation of cash payments for manufacturing in the month of June is shown below:-
Cash payment = 3 ÷ 4 × June Manufacturing Costs + 1 ÷ 4th × May Manufacturing Costs
= ($217,600 - $28,800) × 3 ÷ 4 + ($198,200 - $28,800) × 1 ÷ 4
= $188,800 × 0.75 + $169,400 × 0.25
= $141,600 + $42,350
= $183,950
So, we have applied the above formula.
