Answer:
1. Dr Supplies expense $5,820
Cr Supplies $5,820
Dr Accounts receivable $3,900
Cr Earned fees $3,900
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
Dr Wages expense $2,475
Cr Wages payable $2,475
Dr Unearned fees $14,140
Cr Fees earned $14,140
2. Revenues $305,800
Expenses $261,800
Net income $44,000
3. Revenue $323,840
Expense $261,800
Net income $50,745
4. $6,745 Increase
Explanation:
1. Preparation of the journal entries necessary on April 30. 2019
Dr Supplies expense $5,820
Cr Supplies $5,820
($7,200-$1,380)
(To record supplies used)
Dr Accounts receivable $3,900
Cr Earned fees $3,900
(To record accrued fees Earned)
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
(To record equipment Depreciation)
Dr Wages expense $2,475
Cr Wages payable $2,475
(To record accrued wages)
Dr Unearned fees $14,140
Cr Fees earned $14,140
(To record fees earned)
2. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
REVENUE
Fees earned $305,800
EXPENSE:
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Expense $261,800
NET INCOME $44,000
($305,800-$261,800)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries will be:
Revenues $305,800
Expenses $261,800
Net income $44,000
3. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
REVENUE
Fees Earned $305,800
Fees earned but unbilled $3,900
Unearned fees $14,140
Revenue $323,840
EXPENSE
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Supplies expense $5,820
Depreciation of equipment $3,000
Unpaid wages accrued $2,475
Expense $273,095
NET INCOME $50,745
($323,840-$273,095)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries will be:
Revenue $323,840
Expense $261,800
Net income $50,,745
4. Calculation to Determine the effect of the adjusting entries on Retained Earnings.
Effect of the adjusting entries=$50,745-$44,000
Effect of the adjusting entries=$6,745
Therefore the effect of the adjusting entries on Retained Earnings is Retained Earnings increases by $6,745
Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a new truck. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150. Use the above information to determine cash flows from investing activities.
Answer:
Net cash provided by investing activities $221,100
Explanation:
The computation of the cash flows from investing activities is shown below:
Sale of equipment (65300 - 14000) 51300
Less: Purchase of new truck -89000
Add: Sale of land 198000
Add: Sale of Long-term investments 60800
Net cash provided by investing activities $221,100
Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.
A. True
B. False
Answer:
A. True
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Basically, strategic controls are subjective criteria that are developed by a business firm so as to verify and ensure that the business firm has implemented the appropriate strategies for the conditions in the external environment and the competitive advantages of the business firm.
Following a decrease in price from $1.90 to $1.50, the weekly demand for a magazine increases from 100,000 to 120,000 copies. The price elasticity of demand for magazines in this range is:
Answer:
0,95
inelastic
Explanation:
0.21
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
When a shift in ________ occurs, rational expectations hold that its impact on output and employment will only be minimal.
Answer:
Aggregate demand occurs.
Explanation:
The aggregate demand curve of the AD curve will move to the right and components of the demand like consummation, government, and investment spending on the exports and imports will rise. Macroeconomics states that the curve is vertical over time and people should rationally accept this pattern.When the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations in an industry, the industry will tend to become:___________
A) global
B) consolidated
C) multidomestic
D) risky
E) indigenous
On November 1st, Neiman Marcus at the Florida Mall signed a $100,000, 2%, eight-month note payable with all of the principal and interest due at maturity eight months later on July 1. Neiman Marcus' Store at Florida Mall should report interest payable at (year-end) December 31, in the amount of:
15) A factory manager can improve EVA by A) increasing earnings and increasing capital employed. B) increasing capital employed and reducing earnings. C) reducing earnings and reducing capital employed. D) increasing earnings and reducing capital employed.
Answer: D) increasing earnings and reducing capital employed.
Explanation:
Economic Value Added (EVA) shows how much residual income that a company has after it subtracts the cost of the capital invested from the operating profit that the company got.
If a manager wants to increase EVA therefore, they need to reduce the capital used so that the cost of capital will be less. This should be done while earnings are increased for an even higher increase in EVA.
Stock Valuation Suppose you know that a company's stock currently sells for $64 per share and the required return on the stock is 13 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Answer:
$3.85
Explanation:
Calculation to determine the current dividend per share
First step is to calculate the Dividend yield using this formula
Dividend yield=Dividend for next period/Current price
Let plug in the formula
Dividend yield=(13%/2)
Dividend yield=6.5%
Second step is to calculate the Dividend for next period
Dividend for next period=($63*6.5%)
Dividend for next period=$4.095
Now let determine the Current dividend using this formula
Current dividend=Dividend for next period*Present value of discounting factor(rate%,time period)
Let plug in the formula
Current dividend=$4.095/1+.065
Current dividend=$4.095/1.065
Current dividend=$3.85(Approx).
Therefore the current dividend per share is $3.85
Using the GLOBE study results and other supporting data, determine what Japanese managers believe about their subordinates. How are these beliefs similar to those of U.S. and European managers? How are these beliefs different?
The inventory records of Global Company indicate that $76,800 of merchandise should be on hand at the end of the month. The physical inventory indicates that $74,900 is actually on hand. The journal entry to adjust for inventory shrinkage will include
Answer:
Debit : Inventory $1,900
Credit : Adjustment to inventory account $1,900
Explanation:
The journal entry to adjust for inventory shrinkage will include a Debit entry to Inventory Account (to raise the balance) and a Credit entry to a Contra account Adjustment to inventory account with the difference between the two balances.
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,300,000. According to independent appraisals, the fair values were $630,000 (building A) and $280,000 (building B) for the buildings and $490,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Answer:
Pinewood Company
Initial valuation of the buildings and the land are:
Building A = $585,000
Building B = $260,000
Land = $455,000
Explanation:
a) Data and Calculations:
Purchase price of buildings and land = $1,300,000
Fair values of:
Building A = $630,000
Building B = $280,000
Land = $490,000
Total fair value = $1,400,000
Initial valuation of the buildings and the land are:
Building A = $630,000/$1,400,000 * $1,300,000 = $585,000
Building B = $280,000/$1,400,000 * $1,300,000 = $260,000
Land = $490,000/$1,400,000 * $1,300,000 = $455,000
Total fair value = $1,300,000
explain consumptions of the principal of absolute advantage
Answer:
The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.
Explanation:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.
Innovation is the introduction of
New goods or Services or Improvement in offering goods or services.
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Innovation is the process and outcome of creating something new, which is also of value.
Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary of the results. Out of these findings of the SBA, what might challenge Rick in his quest to become a successful entrepreneur? a) Rick is conscientious and emotionally stable. b) Rick has some tolerance for ambiguity because he knows he is trying to do things that haven't been done before. c) Rick has an external locus of control. d) Rick is comfortable with a moderate level of risk, and he has the confidence to act decisively. e) Rick has a high nec Rick has a high need for autonomy and wants to shape his own destiny
Answer:
c) Rick has an external locus of control.
Explanation:
What can challenge Rick in his quest to become a successful entrepreneur is that he has an external locus of control, which occurs when an individual relates events related to their failures or successes to external variables that are not their responsibility, such as fate, luck or bad luck.
The external locus of control can pose a challenge for Rick in the sense that an entrepreneur's success is related to his own personal control and personal efforts to make the business viable and successful in the market. It is necessary for the entrepreneur to understand that there are risks inherent to the business and that a business can work according to their efforts, learning and planning, that is, the entrepreneur and their control and management actions will be responsible for the success or failure of the business, and not just external factors like fate or bad luck.
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value.b. The company paid $1,500 cash for rent of office space for the month.c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).d. The company completed work for a client and immediately collected the $2,500 cash earned.e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.f. The company purchased additional equipment for $6,000 cash.g. The company paid an assistant $3,000 cash as wages for the month.h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.i. The company paid $10,000 cash to settle the liability created in transaction c.j. Owner withdrew $1,000 cash from the company for personal use.RequiredCreate the following table similar to the one in Exhibit 1.9.Equity Assets Liabilities + Expenses Cash + Receivable + Equipment = Payable + M. Chen, Capital M. Chen, + Revenues AccoThen use additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. Show new balances after each transaction.
Answer:
The accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
Explanation:
Note: See the attached excel file for the analysis of the Effect of June Transactions on the Accounting Equation
From the last balances in the attached excel file, we have:
Assets = Cash + Receivable + Equipment = $41,000 + $8,000 + $31,000 = $80,000
Liabilities = Payable = $0
Equity = M. Chen, Capital - M. Chen, Withdrawals + Revenue - Expenses = $75,000 - $1,000 + $10,500 - $4,500 = $80,000
Liabilities + Equity = $0 + $80,000 = $80,000
Therefore, the accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium.
Answer 1:
Yes. There is currently a shortage of human organs available for transplant
Explanation:
This is because in the U.S. the current legislation bans the sale of human organs. Hence the official or legal price of a human organ is $0.
Going by the principles of supply and demand, supply (all other factors held constant) follows in the direction price.
Answer 2:
Legalizing the trade for human organs will have the following impact:
it would reduce the shortage of human organs. Higher prices usually create increased levels of supply. On the other hand, it may also reduce quantity demanded. As soon as the sale of human organs become legal, those waiting to receive organs will have to pay or offer a higher price for an organ. The point of equilibrium is where the demand and supply curves intersect. Changes in the demand curve is highly unlikely however, the supply curve might move to the left because presently the bulk of kidney donors are those who do it from good conscience expecting nothing in return. Those category of people may become de-incentivised more and more from making their donations.Cheers
What are the hours of operation (local standard time) of the Cascade Approach/Departure Control when flying into Medford Airport
Answer:
The answer is "0600 - 2330".
Explanation:
Alaska Airlines, allegiant, Union, and Delta are airports that service MFR. Flights to Seattle, San Francisco, Salt Lake City, Oregon, San Francisco, & Portland are provided by those airlines. The Cascades Approach/Departure Management requires 0600 - 2330 hours of operation (local standard time) while flying to Medford Airport.
Shoe Barn Inc. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $2 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 12. What will the estimated intrinsic value of the Shoe Barn Inc.'s stock?
Answer:
$24
Explanation:
Calculation to determine What will the estimated intrinsic value of the Shoe Barn Inc.'s stock
Using this formula
Estimated intrinsic value = Earnings * P/E Ratio for the industry
Where,
EPS = $2
Industry P/E = 12
Let plug in the formula
Estimated intrinsic value= $2 * 12
Estimated intrinsic value= $24
Therefore the estimated intrinsic value of the Shoe Barn Inc.'s stock is $24
A(n)______ variance occurs when management pays an amount different from the standard price to acquire the item.
Answer:
The answer is "Spending".
Explanation:
A(n) variance in spending happens whenever management spends a quantity other than the standard cost of the products to be acquired.
The difference in expenditure is the gap between the real level as well as the expected amount (or budget) of spending. Overhead costs often include fixed costs, e.g. operating expenses.
Cheyenne Corp. had the following transactions during 2017:
1. Issued $220000 of par value common stock for cash.
2. Recorded and paid wages expense of $105600.
3. Acquired land by issuing common stock of par value $88000.
4. Declared and paid a cash dividend of $17600.
5. Sold a long-term investment (cost $5280) for cash of $5280.
6. Recorded cash sales of $704000.
7. Bought inventory for cash of $281600.
8. Acquired an investment in Zynga stock for cash of $36960.
9. Converted bonds payable to common stock in the amount of $880000.
Required:
What is the net cash provided by operating activities?
Answer:
$316,800
Explanation:
Cashflow from Operating activities = Cash sales - Paid wages - Bought Inventory for cash
Cashflow from Operating activities = $704,000 - $105,600 - $281,600
Cashflow from Operating activities = $316,800
So, the net cash provided by operating activities is $316,800
You are an executive with an internet merchandizing company. Azzamon Inc. You have been assigned the task of analyzing whether to add a new warehouse in Atlanta or in Boston. A consulting firm whom you paid $100 K to do a study has narrowed the choice down to these two cities. You currently have two other warehouses in other cities. You must decide whether the following is relevant or irrelevant to the decision of where to locate the warehouse? Consultant Fee: Relevant Irrelevant
Answer:
Azzamon Inc.
Consultant Fee:
Irrelevant.
Explanation:
The consultant fee is not relevant to the decision of where to locate the warehouse. It is like a sunk cost that has already been incurred. The two cities recommended by the consultant will be considered based on their relevant statistics and data and not based on the fee paid to the consultant. A relevant cost impacts the decision at hand. One relevant cost for making a decision of this nature is the cost of installing facilities at the locations.
Decrease in money demand shifts the (IS/LM ) curve to the _____________ and leads to a ________________ in Y and ______________ in r.
Answer:
LM curve will shift left and lead to decrease in Y and increase in r.
Explanation:
When money demand decreases, it will cause LM curve to shift up to the left. There will be decrease in Fed which causes decrease in money supply. The upward shift of LM curve will lower the income and raise interest rates.
Later, the teaching assistant in Yvette’s economics course gives her some advice. "Based on past experience," the teaching assistant says, "working on 30 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during each hour they spend reading. Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems, and how many should she have spent reading?
Answer:
Yvette
To get the best exam score possible, Yvette should spend 2 hours working on problems and 2 hours reading.
Explanation:
a) Data and Calculations:
Total study time = 4 hours
Number of problems solved = 30
Hours reading textbook = 1 hour
Score obtained from problem solving = 50%
Score obtained from reading textbook = 50%
Therefore, number of hours to spend working on problems = 2 (4 * 50%)
Number of hours to spend reading - 2 (4 * 50%)
Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in
Answer: the termination of the firm's legal existence
Explanation:
The options to the question are:
a. the termination of the firm's legal existence.
b. the temporary suspension of the firm's business.
c. the continuation of the firm's business.
d. nothing with respect to the firm's existence
From the information given in the question, the partners decide to dissolve the firm and Olin collects and distributes the assets. Based on these reasons, this will results in the termination of the legal existence of the firm.
A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice question. opportunity sunk historical out-of-pocket
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?
A. Decreased receivables and increased bank loans
B. Increased receivables and increased bank loans
C. Increased payables and decreased bank loans
D. Increased payables and increased bank loan
Answer: Increased payables and decreased bank loans
Explanation:
It should be noted that 3/10, net 30 simply means when customer pays in 10 days, such person will get a 3% discount, if not the person will have to pay in full within the 30 days.
On the other hand, 2/20, net 90 means that when customer pays in 20 days, such person will get a 2% discount, if not the person will have to pay in full within the 90 days.
Therefore, the change that this will lead to on the balance sheets of its customers will be an increased payables as there'll be more time to make payment for the goods and decreased bank loans.
A 30-year $185,000 amortized mortgage loan has a fixed interest rate of 4.375% and fixed monthly payments. The monthly payment is $923.68. The beginning balance of the loan in the 30th month is $177,391.93. Calculate the ending balance of the loan at the end of the 30th month after this month's payment.
Answer:
$177,114.99
Explanation:
The ending balance of the loan at the end of the 30th month after the monthly payment is the beginning balance at the beginning of the month plus the interest for the month minus the monthly payment.
Note that the interest expense for the month increases the loan balance while the monthly payment reduces the balance.
interest expense for 30th month=beginning balance*fixed interest rate/2
interest expense for 30th month=$177,391.93*4.375%/12
interest expense for 30th month=$646.74
monthly payment =$923.68
The ending balance of the loan=$177,391.93+$646.74-$923.68
The ending balance of the loan=$177,114.99
Emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Answer:
Calculability
Explanation:
A transaction can be defined as a business process which typically involves the interchange of goods (products), financial assets, services and money between a seller and a buyer.
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A service can be defined as an intangible (immaterial), non-physical activities, satisfactions or benefits that are offered for sale by a business service or provided to accompany the sales of a product. Thus, it's an action that involves offering something to a service taker or customer in return for an amount of money as payment.
In Business management, calculability is the emphasis of a business firm on the quantitative aspects (portions, price, size) of products sold and services offered (the time it takes the consumer to get the product). Thus, calculability avails a business firm the opportunity to emphasize on the quantity of product sold rather than a qualitative factor.
The name which is given to the emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Calculability
Calculability has to do with the ability to make calculations on the goods which are transacted by a company at any given time and how the services which were offered such as time taken to get the product.
With this in mind, we know that in a capitalist state, the main aim of any business is to make profit and calculability is used to show the quantitative aspects of the products which are sold and the services offered to determine profit.
Read more about calculability here:
https://brainly.com/question/759158
What is the fundamental accounting equation?
Answer:
Explanation:
Asset=Liabilities + Equities
Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:
Answer:
Equilibrium quantity will decrease and Price will increase.
Explanation:
The decrease in the number of firms will result in a decrease in supply or quantity in the market. As the quantity decreases, the prices tend to increase. Therefore, the drop of firms in the market will decrease the supply and increase the price.
