Answer:
The total cost will be "$56,200". A further explanation is provided below.
Explanation:
According to the question,
The cost of issue of Aug 11 will be:
= [tex]700\times 15[/tex]
= [tex]10,500[/tex] ($)
The cost of issue of Aug 18 will be:
= [tex]400\times 15+1500\times 17[/tex]
= [tex]6000 +25500[/tex]
= [tex]31,500[/tex] ($)
The cost of issue of Aug 30 will be:
= [tex]200\times 17+600\times 18[/tex]
= [tex]3400+10800[/tex]
= [tex]14,200[/tex] ($)
Now,
The total cost will be:
= [tex]10,500+31,500+14,200[/tex]
= [tex]56,200[/tex] ($)
Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.
Answer:
A
Explanation:
Long term debt is debt that has a maturity that is longer than a year.
The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.
firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.
use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 200,000 Fixed manufacturing overhead cost $ 2,800,000 Variable manufacturing overhead cost per machine-hour $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with respect to this job: Direct materials $ 1,472 Direct labor cost $ 1,056 Machine-hours used 79 Compute the total manufacturing cost assigned to Job P90.
Answer:
the total manufacturing cost assigned to Job P90 is $3,792
Explanation:
The computation of the total manufacturing cost assigned to Job P90 is given below:
But before that the predetermined overhead rate should be calculated
So,
= ($2,800,000 ÷ 200,000) + $2
= $16
Now the total manufacturing cost is
= $1,472 + $1,056 + 79 × $16
= $3,792
hence, the total manufacturing cost assigned to Job P90 is $3,792
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year.
Complete the contractor's long-term construction contract using the information above.
Revenue Gross Profit (loss)
Year 1
Year 2
Year 3
Answer:
Contractor's Long-term Construction Contract Table:
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000
Year 2 $1,386,667 $216,667
Year 3 $853,333 ($256,667)
Total $3,200,000 $200,000
Explanation:
a) Data and Calculations:
Contract price = $3.2 million
Estimated cost of construction = $2.4 million
Actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
Revenue $
Year 1 = $720,000/$2,400,000 * $3.2 million = $960,000
Year 2 = $1,170,000/$2,700,000 * $3.2 million = $1,386,667
Year 3 = $853,333
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000 ($960,000 - $720,000)
Year 2 $1,386,667 $216,667 ($1,386,667 - $1,170,000)
Year 3 $853,333 ($256,667) ($853,333 - $1,110,000)
Total $3,200,000 $200,000 ($3,200,000 - $3,000,000)
Each of the following would be a period cost except: Group of answer choices the salary of the company president's secretary. the cost of a general accounting office. depreciation of a machine used in manufacturing. sales commissions.
Answer:
depreciation of a machine used in manufacturing.
Explanation:
A periodic system of inventory can be defined as a method of financial accounting, that typically involves updating informations about an inventory on a periodic basis (at specific intervals) as the sales or purchases are being made by the customers, through the use of either an enterprise management software applications or a digitized point-of-sale equipment.
Periodic cost are costs that occur or arise on a periodic basis such as quarterly.
Each of the above mentioned costs would be a period cost except depreciation of a machine used in manufacturing.
Jolene Kendrick borrowed $24,000 for new computers for her software production company. Her bank granted her a single-payment loan of $24,000 for 144 days. Determine the maturity value to the nearest cent of the loan if the rate is 9% exact interest. Do not use comma in your answer.
Answer:
248521.6
Explanation:
Given:
Amount borrowed, P = 240,000
Interest rate, R = 9% = 0.09
period, n = 144 days
The maturity value :
Since it is an exact interest, number of days, T in a years is 365
Using the formula :
A =
P(1 + RT)
A = 240000(1 + 0.09*(144/365))
A = 240000(1 + 0.0355068)
A = 240000(1.0355068)
A = 248521.64
A = 248521.6
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the building has a fair value of $200,000. 5) Based on the information provided, at the time of the transfer, Regan Company should record: A) Building at $180,000 and no accumulated depreciation. B) Building at $162,000 and no accumulated depreciation. C) Building at $200,000 and accumulated depreciation of $24,000. D) Building at $180,000 and accumulated depreciation of $18,000.
Answer:
The answer is "Option D".
Explanation:
R Company must register a [tex]\$180,000[/tex] building, as well as, an accumulated [tex]\$18,000[/tex] depreciation.
It makes the design the right decision with [tex]\$180,000[/tex] as well as the accrued [tex]\$18,000[/tex] depreciation.
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs:
Year 1 Year 2 Year 3 Year 4
Unit sales 4,200 4,100 4,300 4,400
Sales price $29.82 $30.00 $30.31 $33.19
Variable cost per unit $12.15 $13.45 $14.02 $14.55
Fixed operating costs $41,000 $41,670 $41,890 $40,100
This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project’s net present value (NPV) would be under the new tax law.
Determine what the project’s net present value (NPV) would be under the new tax law.
a) $80,438
b) $67,032
c) $77,087
d) $60,329
Answer:
Garida Co.
The project's net present value (NPV) is:
= $57,787
Explanation:
a) Data and Calculations:
Year 1 Year 2 Year 3 Year 4
Unit sales 4,200 4,100 4,300 4,400
Sales price $29.82 $30.00 $30.31 $33.19
Variable cost per unit $12.15 $13.45 $14.02 $14.55
Fixed operating costs $41,000 $41,670 $41,890 $40,100
Year 1 Year 2 Year 3 Year 4
Sales Revenue $125,244 $123,000 $130,333 $146,036
Variable costs $51,030 $55,145 $60,286 $64,020
Fixed operating costs $41,000 $41,670 $41,890 $40,100
Total costs $92,030 $96,815 $102,176 $104,120
Income before tax $23,214 $26,185 $28,157 $41,916
Income tax (25%) 5,804 6,546 7,039 10,479
Net income/cash inflow $17,410 $19,639 $21,118 $31,437
PV factor 0.901 0.812 0.731 0.659
Present value $15,686 $15,947 $15,437 $20,717
Total present value of the cash inflows = $67,787
Less investment cost of equipment = 10,000
Project's net present value (NPV) = $57,787
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
Assign each of the following to a category of GDP. Assume products are made domestically unless indicated otherwise:
You buy a carmultiple:____.
1. Consumption
2. Investment
3. Govt. Purchases
4. Imports or Exports
A bakery buys a new:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
You get a haircut:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
Your town buys a fire truck:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
You buy shoes made in Thailand:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
The Federal Government builds a bridge:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
A private hospital buys a new MRI machine:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
You stay in a hotel in Italy:_____.
A. Consumption
B. Investment
C. Govt. Purchases
D. Imports or Exports
Answer:
*Buy Car = Consumption
*A bakery buys a new = Investment
*You get a haircut = Consumption
*Fire truck = Govt. purchase
*Buy shoes made in Thailand = Import or export
*Government build bridge = Govt. purchase
*Buy new MRI machine = Investment
*Stay in hotel in Italy = Import or Export
Explanation:
The component of GDP is Consumption, Investment, Government Expenditure, and import-export. Here, consumption is denoted by C, Investment is denoted by I, Government expenditure is denoted by G and Import-export is denoted by NX. Since the car bought for use that means the person is consuming it. While the haircut includes the consumption of service and buying a new bakery is an investment. Similarly below is the list for which the following product belongs.
*Buy Car = Consumption
*A bakery buys a new = Investment
*You get a haircut = Consumption
*Fire truck = Govt. purchase
*Buy shoes made in Thailand = Import or export
*Government build bridge = Govt. purchase
*Buy new MRI machine = Investment
*Stay in hotel in Italy = Import or Export
TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually.
Assets Amount($millions) Annual Rate Liabilities Amount ($ millions) Annual Rate
2-years loans $40 8% 3-years GIC $60 7%
3-years loans $60 8% 5-years term deposit $30 6%
Equity $10
Total $100 Total $100
Required:
a. What is the change in the value of its assets if all interest rates decrease by 1 percent?
b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent?
c. What is the effect on the value of the Fi's equity if interest rates decrease by 1 percent?
Answer:
a) Change of $2.6 million
b) Change of $3.3 million.
c) Decrease in equity by $0.7 million
Explanation:
a) Determine change in value of assets when interest rates decrease by 1%
i) 2-year loans
Principal Amount = $40 , Annual rate = 8%
Value of asset = P + interest = $40 + 6.4 = $46.4
Interest earned = PRT = (40 * 8 * 2) / 100 = $6.4
Given that Annual rate = 8 - 1 = 7%
value of asset = P + interest = $45.6
interest = ( 40 * 7 * 2 ) / 100 = $5.6
change in 2-year loan assets = 46.4 - 45.6 = $0.8 million
ii) 3-year loan assets
Principal amount = $60 , annual rate = 8%
Value of asset = P + interest = 60 + 14.4 = $74.4
interest earned = PRT = ( 60 * 8 * 3 ) / 100 = $14.4
When Annual rate = 8 - 1 = 7%
value of asset = P + interest = 60 + 12.6 = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
Change in 3-years loan assets = 74.4 - 72.6 = $1.8
∴Total change in value of assets = 1.8 + 0.8 = $2.6 million
B) Change in value of liabilities when interest rates fall by 1%
i) 3-years GIC liability
Principal amount = $60 , interest rate = 7%
Value of liability = P + interest = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
When interest rate = 7 - 1 = 6%
Interest = ( 60 * 6 *3 ) / 100 = $10.8
value = 60 + 10.8 = $70.8
change in 3 years GIC liability = 72.6 - 70.8 = $1.8
ii) 5 - years term deposit liability
principal amount = $30 , interest rate = 6%
value of liability = P + interest accrued = 30 + 9 = $39
Interest accrued = ( 30 * 6 * 5 ) / 100 = $9
when Interest rate = 6 - 1 = 5%
value of liability = P + interest accrued = 30 + 7.5 = $37.5
interest accrued = ( 30 * 5 * 5 ) / 100 = $7.5
change in 5-years term deposit liability = 39 - 37.5 = $1.5
∴ Total change in value of liabilities = 1.8 + 1.5 = $3.3 million
c) Effect on the value of FI's equity is that there will be an DECRESE in equity because of the Increase in Liability value more than increase in asset value
Equity = asset - liability
= 2.6 - 3.3 = -$0.7 million
A company uses the weighted average method for inventory costing . At the beginning of a period the production department had units in beginning Work in Process inventory which were 33 % complete the department completed and transferred 168,000 units . At the end of the period units were in the ending Work in Process inventory and are 68 % complete . Compute the number of equivalent units produced by the department .
Answer
a. 178,200 units
Explanation:
Comple question "A company uses the weighted average method for inventory costing. During a period, a production department had 54,000 units in beginning goods in process inventory which were 33% complete; the department completed and transferred 168,000 units. At the end of the period, 15,000 units were in the ending goods in process inventory and are 68% complete. Compute the number of equivalent units produced by the department. 178,200. 186,320. 183,000. 168,000. 114,000."
Calculation of Equivalent Unit (as per Weighted Method)
Unit % of Completion Equ. Unit
Unit Completed & Transferred Out 168,000 100% 168,000
Closing WIP 15,000 68% 10,200
Total Equivalent Unit 178,200
Compare two loans:Loan 1: $175,000; 8% annual (monthly payments); 30 years.Loan 2: $175,000; 7% annual (monthly payments); 15 years.If you pay an additional $250 per month in additional principle on Loan 1 ONLY, which loan pays off sooner
Answer:
Following are the responses to the given question:
Explanation:
For the First loan payment period is value:
[tex]\to NPER(\frac{8\%}{12},-250-PMT(\frac{8\%}{12},12\times 30,-175000),175000)=215\ months[/tex]
For the second loan payment period is value:
[tex]\to 15\times 12=180 \ months[/tex]
that's why the loan will be paid off soon.
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:
Answer: $136,375
Explanation:
Going by the collections pattern of the company, there will be collections for 3 months in December being October, November and December.
December collections will be:
= (50% * December credit sales) + (30% * November Credit sales) + (15% * October credit sales) + December cash sales
December credit sales = 75% * 130,000 = $97,500
November credit sales = 75% * 170,000 = $127,500
October credit sales = 75% * 150,000 = $112,500
December collections are:
= (50% * 97,500) + (30% * 127,500) + (15% * 112,500) + (25% * 130,000)
= $136,375
Operating Cash Flows (Direct Method)
Refer to the information in Exercise EB-31. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.
Answer:
The method to calculate Cash Flow from Direct Method is explained as follows:
Explanation:
The method to calculate Cash Flow from Direct Method is explained as follows:
Cash Flows
Direct Method
+ Cash received from Customer
- Cash paid to suppliers
- Cash payments for operating expenses
- Cash payments for interest
- Cash payments for taxes
= Net Cash flow from Operating Activities.
Sales $7,270,000 Gross profit $ 1,450,000 Indirect labor $330,000 Indirect materials $195,000 Other factory overhead $90,000 Materials purchased $5,100,000 Total manufacturing costs for the period $6,170,000 Materials inventory end of the period $ 480,000 how much direct material cost
Answer:
$5,775,000
Explanation:
Direct materials cost = Materials purchased + Indirect materials + Materials inventory, end of the period
Direct materials cost = $5,100,000 + $195,000 + $480,000
Direct materials cost = $5,775,000
So, the amount of the direct material cost is $5,775,000.
Last year Burch Corporation's cash account decreased by $29,000. Net cash provided by (used in) investing activities was $8,400. Net cash provided by (used in) financing activities was $(26,500). On the statement of cash flows, the net cash provided by (used in) operating activities was:
Answer:
The answer is "-10,900"
Explanation:[tex]\text{Cash from operating activities} + \text{cash from investing activities + cash from financing activities} = -29,000[/tex]
[tex]\text{cash from operating activities}[/tex] [tex]+ 8,400 - 26,500 = -29,000[/tex]
[tex]= -29,000 + 26,500 - 8,400\\\\= -10,900[/tex]
Travis Company purchased merchandise on account from a supplier for $11,100, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period.
Required:
Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.
Record the journal entries on each transaction. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3
4
Answer and Explanation:
The journal entries are shown below:
On Dec 26
Inventory $11,100
To Accounts payable $11,100
(Being the purchase merchandise on account is recorded)
On Dec 31
Account payable $11,100
To Discount on account payable (2% of $11,100) $222
To Cash $10,878
(being the cash paid is recorded)
These two entries should be recorded
identify the leadership style that Jack should apply in each statement below.
Answer:
1.3.1 Charismatic leadership style
1.3.2 Transactional leadership style
1.3.3 Democratic leadership style
1.3.4 Laissez-faire leadership style
1.3.5 Autocratic leadership style
Sunland Company reported a net profit of $8.15 per share and a dividend of $3.50 per share. If you buy shares of the stock at $94.85 per share, what is your dividend yield
Answer:
The answer is "[tex]3.69\%[/tex]"
Explanation:
Dividend Share [tex]= \$3.50[/tex]
stock purchasing Price[tex]= 94.85[/tex]
[tex]\text{Dividend yield} = \frac{Dividend}{Purchase price}\\\\[/tex]
[tex]=\frac{3.50}{94.85}\\\\=0.036900369 \approx 3.69\%[/tex]
XYZ plans to sell 28,000 units in April. If it has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be purchased from the supplier during the month
Answer:
Purchases= 31,000
Explanation:
Giving the following information:
Sales= 28,000 units
Beginning inventory= 6,000 units
Desired ending inventory= 9,000 units
To calculate the purchases, we need to use the following formula:
Purchases= sales + desired ending inventory - beginning inventory
Purchases= 28,000 + 9,000 - 6,000
Purchases= 31,000
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
What is the customer's goal?
Answer:
The key aspect of any business, company, or employer is customer service goals.
Explanation:
A customer service department and the staff represent the company and contribute to building the company's public perception. Customer service objectives are specific objectives and guidelines put in place by an enterprise to ensure that every client is 100% satisfied with the services provided by the enterprise. Excellent customer service means that every customer's needs and desires can be met promptly. A customer should never get away with a company or leave a place unhappy.
Improve customer service measurement
Customers goals :
Easy to get in touch with customersResponse times acceleratedImprove customer service measurementFind ways to create an all-round experience for our customersDevelop a loyalty program for clientsCreate a culture that focuses on customersDevelop a strategy for customer surveysTake the customer success account into accountGet customer renovation and up-sell creativeEquipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,600 cash dividend was debited to Common Stock for $1,600 and credited to Cash for $1,600. 5. A $450 purchase of supplies on account was debited to Equipment for $450 and credited to Cash for $450. 6. A cash payment of $530 for advertising was debited to Advertising Expense for $53 and credited to Cash for $53. 7. A collection from a customer for $540 was debited to Cash for $540 and credited to Accounts Payable for $540. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)
Answer:
Debit side $29,660
Credit side $29,660
Explanation:
Preparation of a correct trial balance
DOMINIC COMPANY
Corrected Trial Balance May 31, 2015
DEBIT SIDE
Cash $5,023
($5,050 +$450 - $477)
($530-$53=$477)
Accounts Receivable $2,030
($2,570 - $540)
Prepaid Insurance $930
($830 + $100)
Supplies $450
Equipment $12,750
($13,200 - $450)
Salaries and Wages Expense $4,530
($4,330 + $200)
Advertising Expense $1,447
($970 + $477)
($530-$53=$477)
Utilities Expense $900
($800 + $100)
Dividends $1,600
TOTAL $29,660
CREDIT SIDE
Accounts Payable $5,510
($5,700 - $100 + $450 - $540)
Unearned Service Revenue $690
Common Stock $14,500
($12,900 + $1,600)
Service Revenue $8,960
TOTAL $29,660
Therefore the CORRECTED TRIAL BALANCE will be:
Debit side $29,660
Credit side $29,660
Supernormal Growth Rizzi Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 13 percent and the company just paid a $3.10 dividend, what is the current share price?
Answer:
$86.13
Explanation:
The computation of the current share price is shown below:
Given that
Dividend just Paid (D0) is $3.10
and Required Return (R ) 13%
Now
Dividend Paid in 1st year = $3.10 (1.25) = $3.875
Dividend Paid in 2ndyear = $3.875 (1.25) = $4.844
Dividend Paid in3rd year = $4.844 (1.25) = $6.055
Dividend Paid in 4th year = $6.055 (1.07) = $6.47
Now
Stock Price in 3rd year (P3) = D4 ÷ (R - g)
= $6.47 ÷ (0.13- 0.07)
= $107.83
Now the Current Share Price(P0) is
Current Share Price (P0) = $3.875 ÷ (1.13) + $4.844 ÷ (1.13)^2 + $6.055 ÷ (1.13)^3 + $107.83 ÷ (1.13)^3
= $3.42 +$3.79 + $4.19 + $74.73
= $86.13
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend. The 2019 earnings per share to be reported in the annual report for 2020 are:
Answer:
$1.75
Explanation:
Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)
Earnings per share to be reported = $1.82 * 96%
Earnings per share to be reported = $1.7472
Earnings per share to be reported = $1.75
So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.
Who is Kavin Mitnick?
Explanation:
kevin mitnick*
he is an american computer security consultant , author, and hacker .....
