Answer and Explanation:
The journal entries are shown below
On 15-Apr
FICA social Security tax payable Dr. $3,020
FICA medicare tax payable Dr. $734
Federal Income tax payableDr. $4,622
To Cash account $8,376
(Being cash paid)
on 15-Apr
State Unemployment tax payable Dr.$414
to Cash account $414
(being cash paid)
On 15-Apr
Federal Unemployment tax payable Dr. $84
To Cash account $84
(being cash paid is recorded)
Adel wants to get $100 immediately to pay for concert tickets. He currently has no cash or income, but he has a nice gold watch that is worth $500. He is looking for a place to loan him the $100 by using his watch as collateral. Even though it can be risky, what type of business could best meet Adel’s needs? A. rent-to-own service B. pawnshop C. check cashing business D. payday loan business
Correct Answer: pawnshop
The type of business could best meet Adel’s needs "Pawnshop" where short-term loans individuals can use valuable items like his gold watch as collateral. The correct option is B.
He repays the loan along with interest within a specified period, he can retrieve his watch. Pawnshops are designed to offer immediate cash based on the value of the pledged item.
This solution suits Adel's situation as he can secure the funds he needs for the concert tickets using his watch as collateral even though it involves some risk due to the possibility of losing the watch if he doesn't repay the loan.
Therefore, the correct option is B.
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ABC systems ________. Multiple Choice will allocate costs based on the overall level of activity highlight the different levels of activities usually will undercost complicated or complex products will limit cost drivers to units of output
Answer: highlight the different level of activities
Explanation:
Activity Based Costing system assigns costs to the activity that are used in production and it highlight the different level of activities.
Activity based costing system is quite different from the traditional costing systems based on the way the indirect cost is being treated.
Gerry works 40 hours a week managing Gerry’s Market, without drawing a salary. He could earn $600 a week doing the same work for Jean. Gerry’s Market owes its bank $100,000, and Gerry has invested $100,000 of his own money. If Gerry’s accounting profits are $1,000 per week while the interest on his bank debt is $200 per week, his economic profits are:
Answer:
The correct response is "$395 per week".
Explanation:
Given:
Salary forgone,
= $600
Dividend forgone,
= $5
Accounting profit,
= $1,000
Now,
The implicit cost will be:
= [tex]Salary \ forgone+Dividend \ forgone[/tex]
By substituting the values, we get
= [tex]600+5[/tex]
= [tex]605[/tex] ($) per week
hence,
The economic profit will be:
= [tex]Accounting \ profit-Implicit \ cost[/tex]
= [tex]1000-605[/tex]
= [tex]395[/tex] ($) per week
Consider public policy aimed at smoking.
a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should it increase the price?
b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now?
c. Studies also find that teenagers have a higher price elasticity of demand than do adults. Why might this be true?
Answer:
1. government shoud increase price by 50%. so it would be $3
2. larger effect 5 years from now
3. this is true due to their limited finance compared to adults
Explanation:
1. prices elasticity = % change in quantity demanded ÷ % change in price
price elasticity = 0.4
% change in dmd = 20%
% change in price = ?
[tex]0.4=\frac{0.20}{?}[/tex]
we cross multiply
? = 0.20/0.4
= 0.5
= 50%
so if the government wants to reduce smoking by 20%, it has to increase the price of cigarettes by half of its price= $2 + $1 = $3
2. goods usually have more elastic demand as time goes on. So if cigarette price is permanently raised, it would have a bigger effect five years from now. This is based on the fact that the people may not feel short run effect of the increase as they would in the long run. But gradually given this increase, people may start to gradually reduce their smoking.
3. The effect of the change in price would be more felt on the teenagers. this is due to the fact that they have limited financial strength compared to adults. Also they are new to smoking compared to the adults and are more likely to be less involved in the habit.
Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.
Answer:
No
Explanation:
No, because the gross domestic product is determined by encompassing the final product. If the total sales are used to determine the GDP then the false value of GDP will come up because the problem of double counting will arise. Many firms sell their goods to other firms which is intermediate goods for the other firms.
Lighting design personnel must: A. Understand environmental, cost, and associated benefits of energy-efficient lighting B. Recognize when specialized knowledge is necessary C. Estimate energy cost savings D. All of the above
Answer: All of the above
Explanation:
The Lighting Design Personnel is in charge of the designing, the installation, and the operation of lighting and every other special electrical effects.
Such person must understand environmental, cost, and associated benefits of energy-efficient lighting. Also, he or she must be bake to recognize when specialized knowledge is necessary and also estimate energy cost savings
Therefore, the correct option is all of the above.
In a perpetual inventory system a.a count must be made in order to know the inventory amount. b.the inventory records cannot be computerized. c.the amount of inventory for sale and the amount sold are not listed in the inventory account. d.each purchase and sale of inventory is recorded in the inventory account.
Answer:
d. each purchase and sale of inventory is recorded in the inventory account.
Explanation:
The perpetual inventory system keeps record of inventory and cost of sales after each and every transaction. Its records are always updated after every purchase or sale transaction thus, In a perpetual inventory system : each purchase and sale of inventory is recorded in the inventory account.
In marketing, we use which terms? (needs, wants, or demands). Why?
Answer:
needs are things that satisfy the basic requirement. Wants are requests directed to specific types of items.
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $55,000. Variable manufacturing costs are $33,400 per year for this machine. Information on two alternative replacement machines follows.
Alternative A Alternative B
Cost $ 119,000 $ 112,000
Variable manufacturing costs per year 23,000 10,200
Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Answer and Explanation:
The computation is shown below;
For Alternative A
Cost to buy new machine -$119,000.00
Cash received $55,000.00
Reduction in variable manufacturing cost ($33400 - $23000) ×5 $52,000.00
Total change in net income -$12,000.00
For Alternative B
Cost to buy new machine -$112,000.00
Cash received $55,000.00
Reduction in variable manufacturing cost ($33400 - $10200) × 5 $116,000.00
Total change in net income $59,000.00
So here Xinhong should purchase a machine that belong from Alternative B.
Darius, Inc. has the following income statement (in millions): DARIUS, INC. Income Statement For the Year Ended December 31, 2012 Net Sales $300 Cost of Goods Sold 120 Gross Profit 180 Operating Expenses 44 Net Income $136 Using vertical analysis, what percentage is assigned to Cost of Goods Sold? Group of answer choices 30% 40% 100% None of the above
Answer:
40%
Explanation:
Calculation to determine what percentage is assigned to Cost of Goods Sold
Using this formula
Cost of Goods Sold percentage=
Cost of Goods Sold /Net Sales
Let plug in the formula
Cost of Goods Sold percentage=$120/$300*100
Cost of Goods Sold percentage=0.40*100
Cost of Goods Sold percentage=40%
Therefore the percentage assigned to Cost of Goods Sold is 40%
If the government intervenes and corrects the externality in the situation described, we would expect Group of answer choices the demand for the output from the hydroelectric power plants to decrease. the demand for the output from the hydroelectric power plants to increase the supply of the output from the hydroelectric power plants to decrease the supply of the output from the hydroelectric power plants to increase.
Answer: the supply of the output from the hydroelectric power plants to increase.
Explanation:
The hydroelectric power operators are incurring the cost of cleaning the river before they can use it. This cost is money that they could be investing in the business in order to produce more power.
If the government corrects the externality and limits the amount of waste being thrown into the river, the hydroelectric company would be able to invest the expenses it was incurring in clean up into generating more power which would lead to a higher supply of output from the power station.
Identify each of the following features as applying more to job order operations, process operations or both job order and process operations.1. Cost object is a process. 2. Measures unit costs only at period-end. 3. Uses indirect costs. 4. Transfers costs between Work in Process Inventory accounts. 5. Uses only one Work in Process account. 6. Uses materials, labor, and overhead costs.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.
If $4000 is invested at 2% interest, find the value of the investment at the end of 6 years.
An investment of $4000 is deposited into an account in which interest is compounded continuously. Complete the table by filling in the amounts to which the investment grows at the indicated interest rates.
t = 5 years
Rate per year Amount
1%
2%
3%
4%
5%
6%
Answer:
a. Value of investment at the end of 6 years = $4,504
b. Table Completion:
Rate per year Future Value Factor Amount
1% 1.051 $4,204
2% 1.104 $4,416
3% 1.159 $4,636
4% 1.217 $4,868
5% 1.276 $5,104
6% 1.338 $5,352
Explanation:
Data and Calculations:
Investment = $4,000
Interest rate = 2%
Period of investment = 6 years
Future value factor at 2% for 6 years = 1.126
Value of investment at the end of 6 years = $4,504 ($4,000 * 1.126)
b) Investment = $4,000
Interest rates = from 1% to 6%
Period of investment, t = 5 years
Future value factors are as follows:
Rate per year Future Value Factor Amount
1% 1.051 $4,204 ($4,000 * 1.051)
2% 1.104 $4,416 ($4,000 * 1.104)
3% 1.159 $4,636 ($4,000 * 1.159)
4% 1.217 $4,868 ($4,000 * 1.217)
5% 1.276 $5,104 ($4,000 * 1.276)
6% 1.338 $5,352 ($4,000 * 1.338)
Black Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows
Answer:
wdym
Explanation:
Frederic Taylor applied the scientific method to management . In many cases,this meant measuring a process to determine it optimal possible output .Discuss a time you have seen measurements used to manage a process
Answer:
fg sheriff f hiding fh gay
S Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.00 Direct labor $ 9.00 Variable manufacturing overhead $ 3.70 Fixed manufacturing overhead $ 4.65 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $25.45. If S Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:
Answer:
$112,750
Explanation:
Particulars Cost of making Cost of buying
Direct material 41,000*10=410,000 0
Direct labor 41,000*9=369,000 0
Variable manuf. overhead 41,000*3.70=151,700 0
Fixed manuf. overhead 41,000*4.65=190,650 41,000*4.65=190,650
Outside supplier's price 0 41,000*25.45=1,043,450
Total cost $1,121,350 $1,234,100
Financial advantage of making the motors = $1,234,100 - $1,121,350
Financial advantage of making the motors = $112,750
Combining a protective put with a forward contract generates equivalent outcomes at expiration to those of a:
Answer:
Fiduciary call.
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.
Generally, when a protective put is combined with a forward contract it would generate equivalent outcomes at expiration to those of a fiduciary call.
This ultimately implies that, a fiduciary call combines both a call option and a bond that's risk free and matures on the expiry date of an option.
A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,000 units at $6.40 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $200. If Benjamin accepts the offer, its profits will:
Answer:
Increase by $18,500
Explanation:
Data and Calculation
Sales $19,200
Less Expenses $700
Net Income $18,500
If Benjamin accepts the offer, its profits will: increase by $18,500
Decision tree probabilities are primarily used to a.find overlooked choices to the problem. b.analyze more complex problems and to identify an optimal sequence of decisions. c.analyze less complex problems while identifying the optimal sequence of decisions. d.None of these choices are correct.
Answer:
b.analyze more complex problems and to identify an optimal sequence of decisions.
Explanation:
The probabilities of the decision tree should be applied in order to have an analyse for more problems that are complex in nature also it helps in identifying the optimal sequence for the decisions
So as per the given scenario, the option b is correct
And, the remaining of the options seems wrong
b. Analyze more complex problems and to identify an optimal sequence of decisions.
It is advisable to use the decision tree's probability to analyze more complicated problems because they aid in determining the best order for making judgments.
Therefore, based on the scenario stated, option b is appropriate.
Additionally, the remaining solutions seem flawed.
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Last month a manufacturing company had the following operating results: What was the cost of goods manufactured for the month
Answer:
Cost of goods manufactured 429000
Explanation:
The computation of the cost of goods manufactured is shown below:
Particulars Amount (in $)
Sales 505000
Less: Gross Margin 63000
Cost of goods sold 442000
Add: Ending Finished Goods Inventory 71000
Less: Opening Finished Goods Inventory 84000
Cost of goods manufactured 429000
Compute the payback period for a project that requires an initial outlay of $297,771 that is expected to generate $40,000 per year for 9 years.
Answer:
7.44
Explanation:
The computation of the payback period is given below:
Time Amount Cumulative
0 (297,771) (297,771)
1 40,000 (257,771)
2 40,000 (217,771)
3 40,000 (177,771)
4 40,000 (137,771)
5 40,000 (97,771)
6 40,000 (57,771)
7 40,000 (17,771)
8 40,000 22,229
9 40,000 62,229
Now the payback period is
=7 + (17,771 ÷ 40,000)
= 7.44
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.McBride's Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It can sell each product at the split-off point or process it further in relatively similar processes, so management has decided that the most appropriate method for allocating joint costs is the market value at split-off point. One gallon of cream sells for $15, while one gallon of milk sells for $4. How much of the joint cost is allocated to cream
Answer:
$560
Explanation:
Calculation to determine How much of the joint cost is allocated to cream
Units Selling price Sales value Percentage of sales value Allocated cost
Cream (200*15=3,000) (3,000/5,400 = 56%)
(1,000 x 56% = $560)
Skimmed milk (600*4=2,400) (2,400/5,400 = 44%) (1,000 x 44% = $440)
Total $5,400 100% $1,000
($3,000+$2,400=$5,400)
(56%+44%=100%)
($560+$440=$1,00)
Therefore the joint cost allocated to CREAM is $560
You are a student with a demanding schedule of classes. You also work part time and your supervisor allows you to determine your schedule. In this situation, your scarce resource is time . In this situation, you will work: multiple choice 2 enough hours to get the money to pay for school. as much as your boss demands and hope your grades do not suffer. very little so you can enjoy school. enough to earn some money but not too much to jeopardize your grades.
Answer: enough to earn some money but not too much to jeopardize your grade
Explanation:
Based on the scenario explained in the question, the student will earn enough to earn some money but not too much to jeopardize his or her grade.
Option A is incorrect as working for enough hours to get the money to pay for school means that the grades will be jeopardized as there won't be time to study or attend classes.
Option B is incorrect because working as much as the boss demands will have a negative effect on grades. Option C is incorrect as well.
The correct option is D.
If elasticity of demand is 0.6, elasticity of supply is 0.6, and a 20% excise tax is levied on the good:________a. The fraction of the tax borne by consumers will be 0.5. b. The fraction of the tax borne by suppliers will be 0.6 c. The fraction of the tax borne by consumers will be 0.6. d. The fraction of the tax borne by suppliers will be 0.3.
Answer:
The correct option a. The fraction of the tax borne by consumers will be 0.5.
Explanation:
The tax burden is determined by the supply and demand price elasticity. Consumers bear the burden of the tax more than the suppliers when supply is more elastic than demand. When demand is more elastic than supply, the tax burden falls more on suppliers than consumers. When demand elasticity and supply elasticity are identical, the tax burden is shared equally by consumers and suppliers.
From the question, we have:
Elasticity of demand = Elasticity of supply = 0.6
Since demand elasticity and supply elasticity are identical, the burden of 20% excise tax is shared equally by consumers and suppliers. That 50% by 50%, or 0.5 by 0.5.
Therefore, the correct option a. The fraction of the tax borne by consumers will be 0.5.
In recent decades there have been fewer trade blocs established to promote regional economic integration. True False
Answer: False
Explanation:
Trade bloc refers to an intergovernmental agreement, whereby the barriers to trade are eliminated among the countries that are involved.
The statement that "in recent decades there have been fewer trade blocs established to promote regional economic integration" is false.
There has been an increase in trade blocs in recent decades such as Brazil, Russia, India, China, and South Africa(BRICS), North American Free Trade Agreement(NAFTA), Association of Southeast Asian Nations( ASEAN).
They all promote economic development.
Assume that consumers' incomes and the number of sellers in the market for good A (a normal good) both decrease. Based upon this information we can conclude, with certainty, that equilibrium:
Answer:
Quantity will Increase
Explanation:
As we know that when market is in equilibrium so the demand curve should be intersected the supply curve. At the time when there is an increase in suppliers so supply curve shift rightward due to which the consumer income would increase and this result in more demand. So the demand could be shift in rightward
So here the price should be the same but the quantity is increased
g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
Delta River Company sold manufacturing equipment with a cost of $44,000 and accumulated depreciation of $32,000 for $9,000. The journal entry to record this transaction will include:_________
a) a credit to Accumulated Depreciation â Equipment for $32,000.
b) a debit to a loss account for $3,000.
c) a credit to a gain account for $8,000.
d) a credit to the Equipment account for $12,000.
Answer:
b) a debit to a loss account for $3,000.
Explanation:
Based on the information given the journal entry to record this transaction will include: a DEBIT TO A LOSS ACCOUNT FOR $3,000.
Debits Cash $9,000
Debit Accumulated Depreciation - Equipment $32,000
Debit loss account ($3,000)
($44,000-$32,000+$9,000)
Credit Equipment $44,000
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $ 135,000 $ 0 Working capital investment required $ 0 $ 135,000 Annual cash inflows $ 25,000 $ 63,000 Salvage value of equipment in six years $ 9,800 $ 0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Answer:
1. Net present value of Project A = -41,449.96
2. Net present value of Project B = $143,746.85
3. I would recommend that company accept Project B.
Explanation:
Note: This question is not complete as the requirement are omitted. The requirements are therefore provided to complete the question before answering it as follows:
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
Project A Project B
Cost of equipment required $ 135,000 $ 0
Working capital investment required $ 0 $ 135,000
Annual cash inflows $ 25,000 $ 63,000
Salvage value of equipment in six years $ 9,800 $ 0
Life of the project 6 years 6 years
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%.
Required:
1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
3. Which investment alternative (if either) would you recommend that the company accept?
The explanation of the answers is now provided as follows:
1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
Cost of equipment required = $135,000
Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:
PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $25,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $89,729.62
The present value (PV) of the salvage value can be calculated as follows:
PV of salvage value = Salvage value / (1 + + discount rate)^Project life = $9,800 / (1 + 0.17)^6 = $3,820.42
Net present value of Project A = PV of annual cash inflow + PV of salvage value - Cost of equipment required = $89,729.62 + $3,820.42 - $135,000 = -41,449.96
2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
Working capital investment required = $135,000
Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:
PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $63,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $226,118.64
The present value (PV) of the Working capital investment required can be calculated as follows:
PV of Working capital investment required = Working capital investment required / (1 + + discount rate)^Project life = $135,000 / (1 + 0.17)^6 = $52,628.21
Net present value of Project B = PV of annual cash inflow + PV of Working capital investment required - Working capital investment required = = $226,118.64 + $52,628.21 - $135,000 = $143,746.85
3. Which investment alternative (if either) would you recommend that the company accept?
From parts 1 and 2 above, we have:
Net present value of Project A = -41,449.96
Net present value of Project B = $143,746.85
Since the Net present value of Project A is negative, it should be rejected.
Since the Net present value of Project B is positive, it should be accepted.
Therefore, I would recommend that company accept Project B.
