Answer:
Ehler Corporation
a) Journal Entries:
Sept. 1 Debit Inventory $12,000
Credit 6%, 3-month Notes Payable (Pippen) $12,000)
To record issuance of note to purchase inventory.
Sept. 30 Debit Interest expense $60
Credit Interest Payable $60
To accrue interest expense ($12,000 * 6% * 1/12).
Oct. 1 Debit Climbing Wall $16,500
Credit 8%, 4-month Note Payable (Prime Bank) $16,500
To record issuance of note payable to purchase climbing wall.
Oct. 31 Debit Interest expense $170
Credit Interest payable $170
To accrue interest expense ($60 + $16,500 * 8% * 1/12).
Nov. 1 Debit Vehicle $26,000
Credit Cash $8,000
Credit 6%, 12-month Note Payable $18,000
To record the purchase of a new vehicle for climbers.
Nov. 30 Debit Interest expense $260
Credit Interest payable $260
To accrue interest expense ($170 + $18,000 * 6% * 1/12).
Dec. 1 Debit 6% Notes Payable (Pippen) $12,000)
Debit Interest payable $180
Credit Cash $12,180
To record the payment of principal and interests.
Dec. 31 Debit Interest expense $200
Credit Interest payable $200
To accrue interest expense ($110 + $90)
b) T-accounts:
Notes Payable
Date Account Titles Debit Credit
Sept. 1 Inventory $12,000
Oct. 1 Climbing Wall 16,500
Nov. 1 Vehicle 18,000
Dec. 1 Cash $12,000
Dec. 31 Balance 34,500
Interest Payable
Date Account Titles Debit Credit
Sept. 30 Interest expense $60
Oct. 31 Interest expense 170
Nov. 30 Interest expense 260
Dec. 1 Cash $180
Dec. 31 Interest expense 200
Dec. 31 Balance $510
Interest Expense
Date Account Titles Debit Credit
Sept. 30 Interest payable $60
Oct. 31 Interest payable 170
Nov. 30 Interest payable 260
Dec. 31 Interest payable 200
Dec. 31 Income summary $690
c) Balance Sheet:
Current liabilities:
Interest payable $510
Notes payable $34,500
d) Total interest expense = $690
Explanation:
a) Data and Analysis:
Sept. 1 Inventory $12,000 6% Notes Payable (Pippen) $12,000) to purchase inventory. The 3-month note payable
Sept. 30 Interest expense $60 Interest payable $60 ($12,000 * 6% * 1/12)
Oct. 1 Climbing Wall $16,500 8%, 4-month Note Payable (Prime Bank) $16,500
Oct. 31 Interest expense $170 Interest payable $170 ($60 + $16,500 * 8% * 1/12)
Nov. 1 Vehicle $26,000 Cash $8,000 6%, 12-month Note Payable $18,000
Nov. 30 Interest expense $260 Interest payable $260 ($170 + $18,000 * 6% * 1/12)
Dec. 1 6% Notes Payable (Pippen) $12,000) Interest payable $180 Cash $12,180
Dec. 31 Interest expense $200 Interest payable $200
hamilton construction company uses the percentage of completion method of accounting. in 2020. hamilton began work under
Question Completion:
Hamilton construction company uses the percentage of completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 202O 2021 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 2020?
Answer options: 2,195,000 878,000 1,097,500 427,000 343,000
Answer:
Hamilton Construction Company
The portion of the total contract price would be recognized as revenue in 2020 is:
= $878,000.
Explanation:
a) Data and Calculations:
Contract price = $2,195,000.
2020 2021
Costs incurred during the year $637,600 $1,000,000
Total estimated cost 1,594,000 1,637,600
Billings during the year 427,000 2,195,000
Collections during the year 343,000 1,509,000
Percentage of completion= Cost incurred in 2020/Total estimated cost in 2020 * 100
= $637,600/$1,594,000 * 100
= 40%
Revenue to be recognized in 2020 = 40% * Contract Price
= $878,000 ($2,195,000 * 40%)
Contribution Margin Ratio a. Young Company budgets sales of $890,000, fixed costs of $26,000, and variable costs of $115,700. What is the contribution margin ratio for Young Company
Answer:
87 %
Explanation:
contribution margin ratio = Contribution ÷ Sales
therefore,
contribution margin ratio = ($890,000 - $115,700) ÷ $890,000
= 0.87 or 87 %
The contribution margin ratio for Young Company is 87 %.
Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.
Answer:
mainly because of information
Explanation:
This approach makes sense mainly because of information. Business-level goals are all about performance and profit. Corporate is made up of individuals that are invested in the company itself. They have all the information on what the company wants to accomplish, long-term strategies being used, available resources, etc. Most of this information is closed off to the rest of the company and only available to those in Corporate. This information is what leads to informed decisions which allow for the best, most efficient, and most profitable choices to be made.
The business cycle measures fluctuations in the long-run trend growth rate of GDP. fluctuations in the profit of businesses. fluctuations in consumption. short-run fluctuations in economic activity. fluctuations in the average tax rate paid by businesses.
Answer: short-run fluctuations in economic activity.
Explanation:
The business cycle helps explain fluctuations in economic activity within a period of time which makes it a short run measure. The cycle consists of expansion phases and recession phases which show that economic activity seems to expand and then go into a recession overtime.
The lowest point in the recession is called the depression and when this happens, the economy hits rock bottom and starts to expand after some time. This is what happened with the Great Depression and the Great Recession. The height of the expansion is the peak and here, the economy is at its most successful.
A competitive market analysis takes into consideration?
Answer:
A competitive analysis is the process of identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to your own business, product, and service. The goal of the competitive analysis is to gather the intelligence necessary to find a line of attack and develop your go-to-market strategy.Explanation:
#AnswerForTreesThere is an increase in the demand for aspirin at the same time as workers in the aspirin industry receive a substantial pay increase. What will most likely happen?
Answer:
There would be an increase in equilibrium quantity and there would be an indeterminate effect on equilibrium price
Explanation:
A startup jewelry company wants to research designs from its potential new jewelry line. It has little money to devote to the research. Which combination of research methods would best suit its situation
Answer:
Mail and online research.
Explanation:
Since in the given situation, it can be seen that the company does not have much amount to be incurred on the research so the best option is to do online research and mail as the person research and the telephone research becomes expensive as compared to the mail and online research
Therefore the above should be the answer
The Lime Corporation has obtained the following sales forecast data:
July August September October
Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit sales $ 240,000 $ 220,000 $ 180,000 $ 200,000
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted cash receipts for October would be:_________
a. $188.000
b. $248,000
c. $226,000
d. $278,000
e. none of above
Answer:
b. $248,000
Explanation:
The computation of the cash receipts for October would be
Particulars October
Cash sales $60000
August credit Sales $22000 (10% of $220,000)
September Credit Sales $126000 (70% of $180,000)
October credit Sales $40000 (20% of $200,000)
Budgeted cash receipt $248000
Hence, the correct option is b.
A company issues $60,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If the issuer accepts $62,000 for the bonds, the premium on bonds payable will (increase/decrease) total interest expense recognized over the life of the bond by $ .
Answer:
Decrease, $2,000
Explanation:
The premium on bonds payable will decrease total interest expense recognized over the life of the bond by $2,000. The difference between the face value & the issue value $2,000 ($62,000 - $60,000) should be amortize over a period of time and of which is reduced from interest expense.
Imagine that I start a bar in Clemson. Each year I order $200,000 worth of food, beer and drink which is turned around and sold to customers. I also hire part-time staff, where the combined annual wages add up to $100,000. I also pay rent on my building which is $100,000 a year. Assume these are my only expenses. My bar is unusually successful and I generate $1,000,000 in revenue. How much does my bar contribute to GDP? (Hint: Think about using the national spending approach or the factor income approach. One is easier to use than the other)
a) $1,000,000
b) $1,300,000
c) $1,400,000
d) $1,200,000
Answer:
The correct option is a) $1,000,000.
Explanation:
Under factor income approach contribution to gross domestic product (GDP) is calculated by adding up wages, rent, interest, and profit.
Using the factor factor income approach, contribution to GDP can be determined as follows:
Purchases = $200,000
Wages = $100,000
Rent on building = $100,000
Expenses = Wages + Rent on building = $100,000 + $100,000 = $200,000
Revenue = $1,000,000
Profit = Revenue - Purchases - Expenses = $1,000,000 - $200,000 - $200,000 = $600,000
Contribution to GDP = Wages + Rent on building + Profit = $200,000 + $200,000 + $600,000 = $1,000,000
This implies that your bar contributes $1,000,000 to GDP. Therefore, the correct option is a) $1,000,000.
Patty took a cash advance of $1,500. Her new credit card charges an Annual Percentage Rate of 21%. The transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35. This fee is added to the total cash advance, and accrues interest.
Hint: calculate 3% of 1,500. Add that 3% to the original cash advance of 1,500. This becomes your charged amount.
If Patty makes monthly payments of $65:
What is the total amount Patty will end up paying for the cash advance?
Assume the money supply is $800, the velocity of money is 8, and the price level is 2. Using the quantity theory of money: a. Determine the level of real output.
Answer:
3200
Explanation:
The computation of the level of real output is given below;
We know that
Money supply × velocity of money = Price level × Real output
And,
Nominal output = Price level × real output.
Now
a) level of real output = money supply × velocity of money ÷ price level
= 800 × 8 ÷ 2
= $6400 ÷ 2
= 3200
what is another name for advertising?
Answer:
commercial, message, pitch
Explanation:
yes
The forecasted sales pertain to Arrow Corporation: Month Sales September $400,000 October 320,000 Finished Goods Inventory (August 31): 28,000 Arrow Corporation has a selling price of $5 on all units and expects to maintain ending inventories equal to 25 percent of the next month's sales. How many units does Arrow expect to produce in September
Answer:
68,000 units
Explanation:
The computation of the number of units that produced in september is given below;
The sales units at September is
= $400,000 ÷ 5
= 80,000 units
And, the october sales units is
= $320,000 ÷ 5
= 64,000 units
So, the production should be
= Ending finished units + sales units - beginning finished units
= (25% of 64,000 units) + 80,000 units - 28,000 units
= 16,000 units + 80,000 units - 28,000 units
= 68,000 units
A stock just paid an annual dividend of $1.10. The dividend is expected to increase by 10 percent per year for the next two years and then increase by 2 percent per year thereafter. The discount rate is 14 percent. What correctly computes the current stock price?
Answer: $10.79
Explanation:
This requires the use of the Dividend Discount Model.
The price of the stock is the present value of the dividends for the two years and then the Terminal value.
Terminal value = Third year dividend / (Required return - Growth rate)
= (1.10 * 1.10² * 1.02) / (14% - 2%)
= 1.35762 / 12%
= $11.31
Price of stock is:
= Present value of first year dividend + Present value of second year dividend + Present value of Terminal value
= ((1.10 * 1.1) / 1.14) + (( 1.10 * 1.1²) / 1.14²) + (11.31 / 1.14²)
= $10.79
What is the effective annual interest rate of an investment that pays 14.75% per year with a compound frequency n= 2? (Answer percentage rounded to second decimal place).
Answer:
15.29%
Explanation:
r = Interest rate = 14.75%
m = Number of times compounding in a year = 2
Effective Annual Rate = (1 + r/m)^m - 1
Effective Annual Rate = (1 + 0.1475/2)^2 - 1
Effective Annual Rate = 1.07375^2 - 1
Effective Annual Rate = 1.1529390625 - 1
Effective Annual Rate = 0.1529391
Effective Annual Rate = 15.29%
So, the effective annual interest rate of the investment is 15.29%
A sequence aligned with creating and evaluating an information system or resource includes:________.
a. Model formulation
b. System developement
c. System deployment
d. Study of effects
Answer:
C. System development
Explanation:
The sequence that is aligned with creating and evaluating an information system or resource includes system development
What is information system?An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. From a sociotechnical perspective, information systems are composed by four components: task, people, structure (or roles), and technology.
Information systems can be defined as an integration of components for collection, storage and processing of data of which the data is used to provide information, contribute to knowledge as well as digital products that facilitate decision making.
A computer information system is a system that is composed of people and computers that processes or interprets information. The term is also sometimes used to simply refer to a computer system with software installed.
What is system development?In systems engineering, information systems and software engineering, the systems development life cycle (SDLC), also referred to as the application development life-cycle, is a process for planning, creating, testing, and deploying an information system.
The systems development life cycle concept applies to a range of hardware and software configurations, as a system can be composed of hardware only, software only, or a combination of both.
There are usually six stages in systems development cycle: requirement analysis, design, development and testing, implementation, documentation, and evaluation.
Hence, option C is the correct answer
To learn more about information system (IS) here,
https://brainly.com/question/11768396
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The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
a. accrued
b. capitalized
c. expensed
Answer:
b. capitalized
Explanation:
The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.
Answer:b capitalized
Explanation:
The shareholders' equity of Green Corporation includes $232,000 of $1 par common stock and $430,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $53,000 in 2021 after paying $23,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021
Answer:
$8,700
Explanation:
Dividends payable to preferred shareholders = [($430,000*7%)*2 - ($23,000*2)] + ($430,000*7%)
Dividends payable to preferred shareholders = [$60,200 - $46,000] + $30,100
Dividends payable to preferred shareholders = $14,200 + $30,100
Dividends payable to preferred shareholders = $44,300
Dividend available to common shareholders = Total dividend - Dividends payable to preferred shareholders
Dividend available to common shareholders = $53,000 - $44,300
Dividend available to common shareholders = $8,700
So, the amount of dividends common shareholders will receive in 2021 is $8,700.
As Kyle conducts his annual evaluations of his employees, he notices that Connie and Debbie have both been less productive since they were relocated in the same department. Kyle is in what stage of the managerial decision-making process?
Answer:
Identifying the problem or opportunity.
Explanation:
During this stage, Kyle is first trying to determine what aspects of the firm are troublesome or underperforming. The whole point of doing this is to identify the areas that need some actions or decisions made.
The next step would be to generate alternatives.
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?
Dong Wang wants to retire when he has saved $1,500,000. He can make 30 payments of $15,000 each, with each payment made at the beginning of the year. What would be the interest rate required to help him achieve his goal
Answer: 6.94%
Explanation:
You can use an Excel worksheet to solve for this:
Number of periods = 30
Payment = 15,000 (should be a negative number)
Present value = 0
Future value = 1,500,000
Type = 1 (this shows that it is an annuity due because payments are at the beginning of the year).
Rate = 6.94%
What is a plan implemented by a company promising value to its customers and converting customer payments into a profit called
Answer:
Business model
Explanation:
A business plan can be defined as a formally written document that comprises of the financial and operational objectives (plans) of a business firm.
Basically, a business plan is a roadmap or guide that outline the goals of a business, methods on how to achieve those goals, and the timeframe required to achieve those goals.
Similarly, a business model can be defined as a plan developed and implemented by a company while expressly promising value to its customers and converting the payments made by customers for goods or services into a profit.
An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investment, which would cause the investment curve to shift to the:________ and would cause the real interest rate to:________
A) right; increase
B) right; decrease
C) left: increase
D) left: decrease
Answer:
A) right; increase
Explanation:
In the case of the closed economy when the marginal product of capital increased so it also increased the investment due to which the shifting of the investment curve is rightward and this will result in increase in the real interest rate
So as per the given situation, the option a is correct
Coronado Industries constructed a building at a cost of $30150000. Weighted-average accumulated expenditures were $12500000, actual interest was $1230000, and avoidable interest was $604000. If the salvage value is $2390000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is
Answer:
$709,100
Explanation:
Cost of the building = $30150000
Average accumulated expenditures = $12500000
Actual interest = $1230000
Avoidable interest = $604000
Salvage value = $2390000
Useful life = 40 years
Depreciation expense for the first full year:
= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life
= [($30150000 + $604000) - $2390000] / 40
= [$30754000 - $2390000] / 40
= $28364000 / 40
= $709,100
So, the depreciation expense for the first full year using the straight-line method is $709,100.
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is: Product Unit Sales Price Variable Cost Per Unit Regular $ 20 $ 8 Ultra 24 4 Multiple Choice
Answer:
$12
$20
Explanation:
contribution margin = price - variable cost
20 - 8= 12
24 - 4 = 20
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to win $5, 1 in 100,000 to win $1000, and 1 in 10 million to win $1 million. What is the expected value of a lottery ticket to the consumer
Answer:
$0.36
Explanation:
Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)
p1 = probability of winning $1 = 1/5 = 0.2
a1 = $1
p2 = probability of winning $5 = 1/100 = 0.01
a2 = $5
p3 = probability of winning $1000 = 1/100,000 = 0.00001
a3 = $1000
p4 = probability of winning $1 million = 1/10,000,000 = 0.0000001
a4 = $1 million
(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36
On June 5, Staley Electronics purchases 100 units of inventory on account for $10 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $15 each.Required:Record transactions for the purchase, return, and sale of inventory.
Answer:
See the journal entries below.
Explanation:
First, we have:
Units of inventory purchased = 100
Units of inventory returned = 20
Units of inventory sold = Units of inventory purchased - Units of inventory returned = 100 - 20 = 80
Therefore, the journal entries will be as follows:
Date Details Debit ($) Credit ($)
June 5 Inventory (100 * $10) 1,000
Accounts payable 1,000
(To inventory purchased on account.)
June 9 Accounts payable (20 * $10 ) 200
Inventory 200
(To record inventory return.)
June 16 Account receivable (80 * $15) 1,200
Sales 1200
(To record sales on account.)
Cost of goods sold (80 * $10) 800
Inventory 800
(To record cost of goods sold on account)
If the demand for a product was 16, 28, 20 and 24 units in four consecutive months, and the corresponding forecasts in those four months were 20, 16, 20 and 30 units respectively, what is the MAD at the end of four months
Answer:
5.5 units
Explanation:
Period Actual Forecast Absolute deviation
1 16 20 4
2 28 16 12
3 20 20 0
4 24 30 6
Total 22
Mean absolute deviation(MAD) = Sum of absolute deviation / Number of periods
Mean absolute deviation(MAD) = 22 / 4
Mean absolute deviation(MAD) = 5.5 units
May 1 Prepared a company check for $450 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $160 for janitorial services.
b. Paid $120 for miscellaneous expenses.
c. Paid postage expenses of $80.
d. Paid $41 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $63 remaining in the petty cash box.
May 16 Prepared a company check for $150 to increase the fund to $600.
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $205.
g. Reimbursed the office manager for business mileage, $103.
h. Paid $34 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $120, leaving a total of $480.
Required:
Journalize the entries.
Answer:
Journal Entries:
May 1 Debit Petty Cash $450
Credit Cash $450
To establish the petty cash fund.
May 15 Debit Petty Cash $387
Credit Cash $387
To replenish the fund for expenses.
a. Debit Janitorial Expenses $160
Credit Petty Cash $160
b. Debit Miscellaneous expenses $120
Credit Petty Cash $120
c. Debit Postage expenses $80
Credit Petty Cash $80
d. Debit Advertisement $41
Credit Petty Cash $41
e. Debit Petty Cash $14
Credit Cash overage $14
To recognize the cash overage.
May 16 Debit Petty Cash $150
Credit Cash $150
To increase the petty cash fund to $600.
May 31 Debit Petty Cash $360
Credit Cash $360
To replenish the fund for expenses.
f. Debit Postage expenses $205
Credit Petty Cash $205
g. Debit Transport expense $103
Credit Petty Cash $103
h. Debit Freight-out $34
Credit Petty Cash $34
Debit Shortage $18
Credit Petty Cash $18
May 31 Debit Cash $120
Credit Petty Cash $120
To reduce the petty cash fund to $480.
Explanation:
a) Data and Analysis:
May 1 Petty Cash $450 Cash $450
May 15 Petty Cash $387 Cash $387
a. Janitorial Expenses $160 Petty Cash $160
b. Miscellaneous expenses $120 Petty Cash $120
c. Postage expenses $80 Petty Cash $80
d. Advertisement $41 Petty Cash $41
e. Petty Cash $14 Cash overage $14
May 16 Petty Cash $150 Cash $150
May 31 Petty Cash $360 Cash $360
f. Postage expenses $205 Petty Cash $205
g. Transport expense $103 Petty Cash $103
h. Freight-out $34 Petty Cash $34
Shortage $18 Petty Cash $18
May 31 Cash $120 Petty Cash $120
