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)
If a binding price floor is imposed on the video game market, then Question 8 options: the quantity of video games demanded will decrease. the quantity of video games supplied will increase. a surplus of video games will develop. All of the above are correct.
Answer:
All of the above are correct.
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Because price is set above equilibrium price, quantity supplied would exceed quantity demanded and there would be a surplus.
Because price is set above equilibrium price, quantity demanded will decrease
A cost center is a unit of a business that incurs costs without directly generating revenues. All of the following are considered cost centers except:
A. Accounting deportment at Warner Bros.
B. Juice division at Coca Cola.
C. Advertising department at Hertz.
D. Purchasing department at Best Buy.
E. Research department at Microsoft.
Explanation:
Juice division at Coca Cola is not an example of cost center.
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When the economy is in short-run equilibrium, Group of answer choices there are increases in inventory. people want to buy more than will be produced. there are decreases in inventory. total expenditures equal total production.
Answer:
total expenditures equal total production.
Explanation:
In the case when the economy is in the short-run equilibrium that means the total expenditures should be equivalent to the total production. In other words, we can say that the expenditure that can be incurred should be equal to the production
Hence, the last option is correct
Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27, what is the current yield on the stock
Answer:
the current yield on the stock is 3.42%
Explanation:
the computation of the current yield on the stock is shown below:
Current yield = Annual dividends paid ÷ Current market closing price
= ($0.27 + $0.15) ÷ $12.27
= $0.42 ÷ $12.27
= 3.42%
hence, the current yield on the stock is 3.42%
we simply applied the above formula to determine the current yield on the stock
The nominal interest rate is 6%. Expected inflation is 2%. Actual inflation is 1%. Calculate the ex-ante and ex-post real interest rates. Who benefits from lower actual inflation
Answer:
1. Ex-ante real interest rate is:
= 4%
2. Ex-post real interest rate is:
= 5%
3. The LENDER benefits from lower actual inflation. By this, the Ex-ante real interest rate is lower than the Ex-post real interest rate at which the borrower will repay the loan.
Explanation:
a) Data and Calculations:
Nominal interest = 6%
Expected inflation = 2%
Actual inflation = 1%
Ex-ante real interest rate = 4% (6% - 2%)
Ex-post real interest rate = 5% (6% - 1%)
b) The implication is that inflation is lower than expected, and this benefits the lender at the expense of the borrower. The opposite is applicable when the inflation is higher than expected, and the result benefits the borrower at the expense of the lender.
Scenario 34-1. Take the following information as given for a small, imaginary economy: When income is $10,000, consumption spending is $6,500. When income is $11,000, consumption spending is $7,250. Refer to Scenario 34-1. The marginal propensity to consume (MPC) for this economy is
Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75
During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions.
Required:
Draw the journal entry.
Answer and Explanation:
The journal entry is given below:
Factory overhead Dr $550
To Raw material inventory $550
(being the actual indirect material cost is recorded)
Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 59,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 997,100 $ 997,100 Variable costs 697,970 99,710 Contribution margin 299,130 897,390 Fixed costs 150,130 748,390 Income before taxes 149,000 149,000 Income taxes (30% rate) 44,700 44,700 Net income $ 104,300 $ 104,300 Required: 1. Compute the break-even point in dollar sales for each product
Answer:
Explanation:
Product T
Contribution Margin Ratio=Contribution Margin / Sales
Contribution margin ratio= 299,130.00/ 997,100
Contribution margin ratio=30.00%
Break-Even Dollars=
Fixed costs/Contribution margin ratio Break-even dollars=$150,130/30%
Break-even dollars=$500,433
Product O
Contribution Margin Ratio=Contribution Margin / Sales
Contribution margin ratio= 897,390/ 997,100
Contribution margin ratio= 90.00%
Break-Even Dollars=Fixed costs/ Contribution margin ratio
Break-Even Dollars=$748,390/90% Break-Even Dollars=831,544
Even though drive-in restaurants were already popular in America in the 1950’s, they were not as successful as the fast food restaurant owned by the MacDonald brothers. List three reasons for this lack of success.
Answer:
1- There was no standardization strategy for hamburgers that would maintain the same quality for all orders.
2- There were not enough employees and properly trained to meet the demand of orders.
3- There was no well-defined business model that could expand to become a franchise.
McDonalds's restaurant revolutionized the business world by adopting the standardization of its snacks, which made the business more structured, in a model that, through innovative sandwich assembly devices, made them more standardized, and accelerated the assembly and waiting time for the order .
The division of the processes of assembling snacks and milkshakes into simple and repetitive tasks led to the creation of a production line for the fast-food restaurant in a totally innovative way, which made it possible to meet demand, more quickly and reduce costs. and waste, which made it possible to sell its business model to other locations and then create a profitable franchise that is a successful model to this day.
The three key causes or the reasons that have resulted in this deficiency in the success of drive-in restaurants would be:
1). Inefficiency.
2). Bobbling of orders.
3). Lack of employees.
The main reason for the failure or lagging behind of the drive-in restaurants was their incompetency in managing the demands effectively and efficiently. Despite the number of orders made by people were high initially but the confusion and mismanagement of the orders raised consumer dissatisfaction and they switched to MacDonalds which offered better services. Lastly, the lesser number of employees add fuel to the fire by not providing the required service in terms of management led the popularity to fall.
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Explain the reason for not reporting property and equipment at fair value except in specified circumstances. What do our OER textbook authors say is normally used as a guideline
Answer and Explanation:
Property, Plant and Equipment(PPE) are reported are reported at book value in the balance sheet statement. Over it's useful life, depreciation is allocated as expense to PPE and accumulated depreciation is calculated for total of depreciation expense to get net book value(cost less depreciation expense). PPE is only reported at fair value when it is going to be sold or it is damaged/impaired asset. Otherwise it is not useful to report PPE at fair value in the statement.
________ is the process of coordinating all messages, media and activities used by an organization to communicate with the market across different communication methods
Answer:
integrated Marketing communication
Explanation:
This method is used by firms and companies to brand their communications and also in their coordination. It makes sure that all the various forms of communications are well linked together. This would create a unified communication channel for the consumer during their interactions with the enterprise. the aspects it integrates includes, advertising, public relations, social media and promotion of sales.
The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.
A. True
B. False
Answer:
A. True
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Basically, financial statements are formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Cash flow statement: it contains financial information about operating, financial and investing activities.
2. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
3. Income statement: it contains financial information about the income and expenses of an organization.
An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.
4. Balance sheet: it contains financial information about assets, liability, and equity.
Furthermore, the amount of a cash dividend liability is expected to be recorded on the particular date of record because it is this date that identify the persons or entities who receives the dividend.
Which of the following characteristics relate to "dollarize"? a. When a country that is not the United States uses the U.S. dollar as its currency. b. The market in which people buy one currency while using another currency. c. When a currency is worth less in terms of other currencies. d. An investment in another country that is purely financial and doesn’t involve any management responsibility.
Answer:
When a country that is not the United States uses the U.S. dollar as its currency.
Explanation:
A country is said to "dollarize" when such a country allows the use of the dollar alongside or instead of its currency.
A country may dollarize in order to increase ease of doing businesses or as a means of facilitating tourism and boosting the country's tourism potential.
Dollarization may be official and have the approval of the leadership of a country. This occurs when a country ceases to use her domestic currency and begins to use only foreign currency.
Learning Task 1. Provide what is asked. Write your answer on
another sheet of paper.
A Give the common strategies in promoting linen products
Write your answer in a sheet of pad paper.
1.
2.
3.
Answer:
mark as the brainly plss
Which one of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the US recession of 2001?
A. Pessimism relating to the stock market crash
B. The collapse of numerous Internet-related start-up firms
C. Low-interest rates
D. Overcapacity in major industries
Answer:
Hence the correct option is Option C. Low interest rates.
Explanation:
Low interest rates:-
Because the real GDP is lower than the potential GDP at the full employment level (Overcapacity). Internet based start ups and stock market are collapsing (The dot com bubble).
You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 4.8 percent.What real amount must you deposit each year to achieve your goal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Deposit amount $
Answer: $25078
Explanation:
Firstly, we'll find the real interest rate which will be:
(1 + R) = (1 + r)(1 + h)
(1 + 10%) = (1 + r)(1 + 4.8%)
(1 + 0.1) = (1 + r)(1 + 0.048)
1.1 = (1 + r)(1.048)
r = 4.96%.
Now the annual deposit will be gotten by using the annuity future value which will be:
3 million = C(1.0496^40-1) / 0.0496
3 million = C(5.3995) / 0.0496
3 million = 119.627C
C = 3 million/119.627
C = 25078
Therefore, the real amount that must be deposited each year to achieve the goal is $25078
when goods are sold to a customer by entity and customer promise to pay amount at certain future time period that is know as
Answer:
Promissory agreement.
Explanation:
A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.
Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.
A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.
Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following balances for April transactions. Cash $12,834 Accounts Receivable 1,809 Office Supplies 4,667 Prepaid Insurance 1,327 Accounts Payable 327 Jay Pembroke, Capital 18,155 Jay Pembroke, Drawing 145 Service Fees 3,113 Rent Expense 813 You will need to calculate the net income for April.
Answer and Explanation:
the computation of the net income for the april month is as follows;
= Service fees - rent expense
= $3,113 - $813
= $2,300
Now the preparation of the owner equity is as follows;
Jay Pembroke, Capital $18,155
Net income $2,300
Less; Jay Pembroke, Drawing $145
Jay Pembroke, Capital ending capital $20,310
We assume that the capital is given for the beginning of the month
Quickbrush Paint Company is developing a linear program to determine the optimal quantities of ingredient A and ingredient B to blend together to make oil-base and water-base paint. The oil-base paint contains 90 percent A and 10 percent B, whereas the water-base paint contains 30 percent A and 70 percent B. Quickbrush currently has 10,000 gallons of ingredient A and 5,000 gallons of ingredient B in inventory and cannot obtain more at this time. Assuming that x represents the number of gallons of oil-base paint, and y represents the gallons of water-base paint, which constraint is correctly represents the constraint on ingredient A?
A. .9x + .3y ≤ 10,000
B. .9A + .1B ≤ 10,000
C. .9x + .1y ≤ 10,000
D. .3x + .7y ≤ 10,000
Answer:
A. 0.9x + 0.3y ≤ 10,000
Explanation:
Given
[tex]x \to[/tex] oil based plant
[tex]y \to[/tex] water based plant
The data can be represented in tabular form as:
[tex]\begin{array}{ccc}{} & {A} & {B} & {x} & {90\%} & {10\%} & {y} & {30\%} & {70\%} & {} & {10000} & {5000}\ \end{array}[/tex]
Considering only A, we have the following constraints:
[tex]A \to 90\% * x + 30\% * y[/tex]
[tex]A \to 0.9x + 0.3y[/tex]
Since the company currently has 10000 of A.
The above constraint implies that, the mixture cannot exceed 10000.
So, we have:
[tex]A \to 0.9x + 0.3y \le 10000[/tex]
Hence, (A) is correct
Novak Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2020, Novak entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,900 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $8,700. In addition, Walleye agrees to pay an additional $21,800 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
Required:
a. Prepare the journal entries for Tyler in 2019 and 2020 related to this service contract.
b. Prepare the journal entries for Tyler in 2020 related to the modified service contract, assuming a prospective approach.
c. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation
Answer: See explanation
Explanation:
a. 1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
b. 1 Jan 2021
Debit Cash $30500
Credit Unearned revenue $30500
31st dec 2020
Debit Unearned revenue $7,625
Credit Service revenue $7,625 ($30500/4)
c. 1 Jan 2020
Debit Cash $30500
Credit Unearned revenue $30500
31st Dec 2020
Debit Unearned revenue $8,700
Credit Service revenue $8,700
Green Corporation's assets are valued at $1,278,000 after payment of all corporate debts, except for $191,700 of taxes payable on net gains it recognized on the liquidation. Bruno, an individual and the sole shareholder of Green, has a basis of $67,095 in his stock.
Required:
Compute the gain or loss recognized by Bruno on the liquidation of Green Corporation.
Answer:
$1,019,205 gain
Explanation:
Computation of gain or loss recognized by Bruno on the liquidation of Green Corporation:
Amount ($)
Market value of assets $1,278,000
Less: Tax liability ($191,700)
Amount realized $1,086,300
($1,278,000-$191,700)
Less: Stock Basis ($67,095)
Gain Recognized $1,019,205
($1,086,300-$67,095)
Therefore, gain of $1,019,205 is recognized by Bruno on the liquidation of Green Corporation.
Jeremy loans $2,500 to his son on the condition that he repays with 5 annual payments consisting of interest on the outstanding balance and equal amounts of principal repayments. Payments are made at the end of the year. Jeremy deposits the total payment he receives into a fund that accumulates at the same interest rate. Given that his son repaid $517.50 at the end of the 5th year, how much has the fund accumulated to by the end of the 5 years?
Answer:
$2,969.22
Explanation:
Equal principal repayment=$2,500/5
Equal principal repayment=$500
The fact that Jeremy's son repaid $517.50 at the end of the 5th year, means that the interest paid in year 5 is the difference between the amount repaid($517.50) and the equal principal repayment($500)
interest paid in year 5=$517.50-$500=$17.50
That also means that the balance outstanding at the beginning of year 5( at the end of year 4) is $500, which effectively means that the interest rate on the loan is the determined thus:
interest paid in year 5=balance at the end of year 4*interest rate
$17.50=$500*interest rate
interest rate=$17.50/$500
interest rate=3.50%
The schedule of repayment is attached
The first repayment would be invested for 4 years, since it is occurring at the end of year 1( in years 2-5), the year 2 repayment would be invested for only 3 years and so on.
FV value of reinvestment of repayment=$587.50*(1+3.50%)^4+$570.00*(1+3.5%)^3+$552.50*(1+3.5%)^2+$535.00*(1+3.5%)^1+$517.50
FV value of reinvestment of repayment=$2,969.22
Answer:
The amount the fund accumulated to by the end of the 5 years is $2,648.23.
Explanation:
Step 1: Calculation of interest rate
The interest rate can be calculated using the following RATE function in Excel:
Interest rate = RATE(nper,pmt,-pv,fv,type) .............(1)
Where;
nper = number of periods = number of years = 5
pmt = Fixed annual payments = Amount repaid by his son at the end of the 5th year = $517.50 = 517.50
pv = present value = Loan amount = $2,500 = 2500
fv = future value = desired cash balance after last payment = 0
type = when payments are due (0 = end of period. 1 = beginning of period) = 0
Substituting the values into equation (1), we have:
Interest rate RATE(5,517.50,-2500,0,0) .................. (2)
Inputting =RATE(5,517.50,-2500,0,0) into a cell in an excel sheet (Note: as done in the attached excel file), we have:
Interest rate = 1.16%
Step 2: Calculation of the amount the fund accumulated to by the end of the 5 years
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (3)
Where,
FV = Future value = The amount the fund accumulated to by the end of the 5 years =
M = Fixed annual payments = $517.50
r = Interest rate = 1.16%, or 0.0116
n = number of years = 5
Substituting the values into equation (3), we have:
FV = $517.50 * (((1 + 0.0116)^5 - 1) / 0.0116)
FV = $517.50 * 5.11735342258641
FV = $2,648.23
Therefore, the amount the fund accumulated to by the end of the 5 years is $2,648.23.
Mary has a few specific items she would like to leave to her sister, Ann. She would like to leave the balance of her estate to her brother, Tom. Which type of provision should be used in her will to provide for the disposition to Tom
Answer:
The residuary clause
Explanation: As Mary would like to leave the balance of her estate to her brother tom this will fall under the residuary clause.
For the same monopolist firm as in the previous question, what is the price that the monopoly chooses to set to go along with its quantity choice
Hi, you've asked an incomplete question. However, I provided some explanation about what monopoly entails.
Explanation:
Note that the term monopoly basically refers to a market environment in which an entity or enterprise is the only producer of a particular commodity.
In such a situation, the monopolist firm has a market advantage of being able to choose what price to sell its products without been concerned about the price of the competitor's products.
Chelsea’s manager sent her an email asking to meet, for an unspecified reason, the following Friday. Upon reading this email, Chelsea remembered a situation six months prior when her manager sent such as email to another team member. During that meeting, the team member was laid off from the organization. Based on this recollection, Chelsea is extremely worried about the upcoming meeting with her boss. Which type of bias is being represented? Multiple Choice representative bias recency bias overconfidence Bias framing bias confirmation bias
Answer: Representative bias
Explanation:
Representative bias occurs when two decisions are wrongly compared by a decision maker due to the fact that there's a perceived similarity between the cases.
Regarding the question, since a similar situation led to the laying off of an employee, Chelsea is already worried that she'll be laid off as well even though this may not be the case. In such cases, due to the similarity, this confuses people's thinking.
When the similarity of objects or events confuses people’s thinking about the possibility of an outcome, it is called representative bias. Thus, Option A. is the correct answer.
What is representative bias?Representative bias occurs when two decisions are incorrectly compared to the decision-maker because there are obvious similarities between the cases.
In terms of the question, as the same situation has led to the dismissal of the employee, Chelsea is already worried that he too will be retrenched even though this does not happen.
In such cases, because of similarities in the two events, this confuses people's thinking and lets them assume a particular situation.
Thus, Option A. Representative Bias is the correct answer.
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Suppose the United States and Japan have the following production possibility tables:
Japan United States
Bolts of Cloth Tons of Wheat Bolts of Cloth Tons of Wheat
1,000 0 500 0
800 100 400 200
600 200 300 400
400 300 200 600
200 400 100 800
0 500 0 1,000
a. Draw each country’s production possibility curve.
b. In whatgooddoesthe United States have a comparative advantage?
c. Is there a possible trade that benefits both countries?
d. Draw their combinedproduction possibility curve. L04
Answer:
a) attached below
b) Wheat production
c) Yes there is a possible trade that benefits both countries
d) attached below
Explanation:
Opportunity cost can be expressed as
= Value/cost of alternative / value/cost of chosen alternative
a) Draw each country's production possibility curve
attached below
b) United state have a comparative advantage in Wheat production because of lower opportunity cost
c) The possible trade that would benefit both countries is when both countries trade on goods that they have lower comparative opportunity cost
i.e. Japan producing just Bolt cloths while United states produce Wheat alone
d) combined production possibility curve
attached below
What factors affect NPV ?
Answer: Factors Affecting Net Present Value. The major factors affecting present value are the timing of the expenditure (receipt) and the discount (interest) rate. The higher the discount rate, the lower the present value of an expenditure at a specified time in the future.
Explanation:
Defined as a loss in value to improvements from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on a property is called
In (Noon) Company, direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout the production process. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are 60% converted. Spoiled units generally constitute 6% of the good units. Data for December 2019 are as follows: WIP, beginning inventory 12/1/2019 Direct materials 22,500 units (100% complete) Conversion costs (55% complete) Started during December 76,700 units Completed and transferred out 12/31/2019 72,500 units WIP, ending inventory 12/31/2019 18,400 units Direct materials (100% complete) Conversion costs (65% complete) What is the number of normal spoilage units?
Answer:
Following are the responses to the given question:
Explanation:
Statement In December the computation of typical spoiling units shall be shown:
Particulars Units
WIP Inventory Start on 12 January 2019 22,500
Departments began in December 76,700
Total stock available for both the month 99,200
Less: transferred units on 31 December 2019 72,500
Inventory of Less: WIP on 31 December 2019 18,400
Inventory of Balance (Normal Spoilage units) 8,300
The following information was available for Swifty Corporation at December 31, 2017: beginning inventory $89000; ending inventory $128000; cost of goods sold $604000; and sales $992000. Swifty inventory turnover ratio (rounded) in 2017 was
Answer:
5.57
Explanation:
Calculation to determine what Swifty inventory turnover ratio (rounded) in 2017 was
Using this formula
Inventory turnover ratio =Cost of goods sold/Average Inventory
Let plug in the
Inventory turnover ratio=$604000/[($89000+$128000)/2]
Inventory turnover ratio=$604000/($217,000/2)
Inventory turnover ratio=$604000/108,500
Inventory turnover ratio=5.57
Therefore Swifty inventory turnover ratio (rounded) in 2017 was 5.57
