Answer:
That a memorandum of understanding was created by the receipt sent by Mr. Blue and an
enforceable agreement exists
Explanation:
A memorandum of understanding is an agreement between two or more parties stating a lone of action that is binding on the participants.
This is used in place of a legally enforceable agreement. Like a formal gentlemen's agreement.
In this instance they agree orally to transfer 500 widgets for $1,000. Mr. Blue sends Mr. Green a receipt one week after the agreement.
The act of sending a reciept establishes the fact that there is an agreement. Therefore it is enforceable in a court of law.
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Accounts Payable $507 Fees Earned $3,138 Accounts Receivable 720 Insurance Expense 675 Prepaid Insurance 1,506 Land 2,220 Cash 1,948 Wages Expense 570 Dividends 508 Common Stock 4,502 Prepare a trial balance. The total of the debits is
Answer:
The debit balance of the trial balance is $8,147
Explanation:
Monroe Entertainment Co
DEBIT CREDIT
Particulars Amount$ Particulars Amount$
Account Receivables 720 Accounts Payable 507
Prepaid Insurance 1,506 Fee earned 3,138
Cash 1,948 Common stock 4,502
Dividends 508
Insurance Expenses 675
Land 2,220
Wage Expenses 570
Total $8,147 Total $8,147
At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.
Prepare the journal entries for these transactions.
View transaction list
Journal entry worksheet
1 2 3 4
Record the estimated bad debts expense.
Note: Enter debits before credits
Date General Journal Debit Credit
Dec 31
Record entry
Clear entry
View general journal
Answer:
Journal entries below
Explanation:
Dec 31, Bad debts expense a/c Dr $4,875
To Allowance for doubtful a/c Cr $4,875
(To record bad debt expense)
Feb 1, Allowance for doubtful a/c Dr $580
To Accounts receivable - P. Park a/c Cr $580
(To record allowance for doubtful a/c)
June 5, Accounts receivable -P. Park Dr $580
To Allowance for doubtful a/c Cr $580
(To record bad debt written off)
June 5, Cash a/c Dr $580
To Accounts receivable - P. Park a/c Cr $580
(To record cash paid).
• Chen write off the receivable from balance sheet using the percentage of sales method of receivable of ($975,000 × 0.5%) = $4,875.
• Also on February 1, Chen writes off P.Park from receivable of $580 since he knew he will not pay but did pay on June 5 for $580; meaning that Chen reinstate the receivable afterwards collected cash from receivable.
Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam's statement of cash flows?In operating activities as a source of funds.In investing activities as a source of funds.In financing activities as a source of funds.In investing activities as a use of funds.In financing activities as a use of funds.
Answer:
The answer is E. In financing activities as a use of funds.
Explanation:
In cash flow, to be a source of fund means there is cash inflow i.e cash is coming in to the business and to be a use of fund means there is cash outflow i.e cash is going out of the business the business.
Also in cash flow, we have three sections - operation, investing and financing sections.
For cash flow from operating activities, use of fund or source of fund about how a business carries its normal activities are important here.
Cash flow from investing activities is about long term Investment the company is engaging on e.g sale or Purchase of machinery.
Cash flow from financing activities is about how the company is funding the business or how the firm is repaying its shareholders for using their fund e.g payment of dividends(use of fund i.e cash outflow)
Which of the following statements regarding convertible term insurance is true?
A) Evidence of insurability must be provided to convert the policy.
B) More term policies are converted using the original-age method than using the attained-age method.
C) The converted coverage has a lower face amount than the term coverage.
D) The annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.
Answer: The annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.
Explanation:
A convertible insurance policy is a term that is related to life insurance as it can be changed to a permanent life insurance policy.
Of the options given, the option that is true is that the annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.
On January 1, 2018, Martinez Inc. granted stock options to officers and key employees for the purchase of 22,000 shares of the company’s $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $340,800.On April 1, 2019, 2,200 options were terminated when the employees resigned from the company. The market price of the common stock was $33 per share on this date.On March 31, 2020, 13,200 options were exercised when the market price of the common stock was $41 per share.Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2018, 2019, and 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Mar. 31, 2020
Answer:
Date Account titles and explanation Debit Credit
Jan 1, 2018 No entry
Dec 31, 2018 Compensation expense $170,400
Paid in capital - stock option $170,400
($340800 * 1/2)
April 1,2019 Paid in capital - stock option $17,040
Compensation expenses $17,040
($170400 * 2200 / 22000)
Dec 31 ,2019 Compensation expenses $153,360
Paid in capital - stock option $153,360
{($340800 * 1/2) * 19800 / 22000}
Mar 31, 2020 Cash $303,600
(13,200 * $23)
Paid in capital - stock option $204,480
($340800 * 13200 / 22000)
Common stock $132,000
(13200 * $10)
Paid in capital in excess of par $376,080
Compared to bondholders, stockholders are generally… Group of answer choices Face lower risk and have the potential for higher returns. Face higher risk but receive a fixed payment. Face higher risk and have the potential for higher returns. Face lower risk but receive a fixed payment.
Answer:
Face higher risk and have the potential for higher returns.
Explanation:
Compared to bondholders, stockholders generally face higher risk and have the potential for higher returns.
Which of the following statements is most correct? Group of answer choices The percentage flotation cost associated with issuing new common equity is typically smaller than the flotation cost for new debt. The WACC is an estimate of the cost of all the capital a company had raised in the past. The WACC is an estimate of a company’s before-tax cost of capital. There is an "opportunity cost" associated with using retained earnings.
Answer:
There is an "opportunity cost" associated with using retained earnings hence, they are not free
Explanation:
The opportunity cost is the cost that are incurred to gain a better thing by sacrificing the other thing among the other alternatives.
And, the retained earning is the amount which is left after pay off to the shareholders
Therefore the last statement is correct both of them are associated with each other
And the other options are incorrect
Under the retail method, in determining the cost-to-retail percentage for the current year: Multiple Choice Net markups are included. Net markdowns are excluded. Beginning inventory is excluded. All of these answer choices are correct.
Answer: Net markups are included.
Explanation:
The retail inventory method is used to know a store's merchandise value.
Under the retail method, in determining the cost-to-retail percentage for the current year, net markups are included.
It should be noted that the net markups are applicable to net costs.
Production possibilities frontiers are usually bowed outward. This is because a. resources are specialized; that is, some are better at producing particular goods rather than other goods. b. of the effects of technological change. c. the opportunity cost of producing a good decreases as more and more of that good is produced. d. the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
Answer:
d. the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all of its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result less of the other product would be produced. So, the opportunity cost of producing a good increases as more and more of that good is produced.
Please check the attached image for a diagram of the Production possibilities frontiers
Assume the following: (1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States; (2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.If the price of the 6-month forward pound were to ____, U.S. investors would no longer earn an extra return by shifting funds to the United Kingdom.a. Rise to $1.52b. Rise to $1.53c. Fall to $1.48d. Fall to $1.47
Answer:
d. Fall to $1.47
Explanation:
currently you will need $1,500 to purchase £1,000 and invest in British bonds. After 65 months you will have £1,040, which you should be able to convert into $1,544.40. If you invested in US bonds, you would have $1,530, so this arbitrage will yield $14.40.
But if instead the British pound fell to $1.47, then your profit would only be $28.80, less than if you invested in US bonds. You again would have £1,040 in 6 months, but that would only be equal to $1,528.80.
In one of the cases in the textbook, Michael Weinstein was the head of Coated Sales, Inc., a company that coated fabrics for use in producing things like parachutes, helmet liners, and camouflage suits. By engaging in financial shenanigans, Coated Sales moved to the top of its industry, but ultimately the good times turned into bad times, and the company declared bankruptcy. What happened to Weinstein
Answer:
The remaining part of the question is:
What happened to Weinstein?
A. After the bankruptcy, he raised new capital and started another fabric coating company.
B. He was convicted, sentenced to prison, and ordered to make restitution.
C. He cooperated with the government and became an informant against his partners who had been siphoning cash off of government contracts.
D. He was placed on probation after reimbursing the shareholders with the profits he had made on investments in the stock market.
Correct Answer:
B. He was convicted, sentenced to prison, and ordered to make restitution.
Explanation:
As a result of the frauds which Michael Weinstein committed leading to the failure of the company, he was charged to court based on the evidence gathered. Later, he was found guilty by the court leading to him being jailed.
michelle works in retail and cant decide what products to include i the stores front window display what is the first step she should take to solve this problem
The available options are:
A. List the options.
B. Evaluate the decision/choice.
C. State the problem.
D. Determine the pros and cons.
Answer:
State the problem.
Explanation:
In a situation like this, it is expected that the first step to take to solve the problem is that Michelle should understand the reason, she wants to put the product on the window display. This includes knowing what she will benefit by placing the product on the window display and which product she wants to display. This process which is the first step in the problem-solving technique is known as STATE THE PROBLEM.
Hence, the right answer is State the Problem.
What profit-oriented pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target
Answer:a
Explanation:
The dependence of America on gasoline and diesel-powered vehicles has had both negative and positive effects. A positive effect has been the ability to distribute goods to areas where they are not manufactured. A negative effect has been the proliferation of illegal used tire dumping. This is an example of a(n):
Answer:
Unanticipated effect.
Explanation:
The concept of unanticipated effect can be defined as those consequences that are unitended or unanticipated in affect of certain actions taken by people-or government. The term was coined by Robert K. Merton.
When the government make certain decisions, they may produce certain consequences or effects that were not intended or intentional.
In the given case, the dependence of America on gasoline and diesel-powered vehicles have both negative and positive effects. These effects are not intended but are produced as a consequence of the actions of the government.
Thus the correct answer is unanticipated effect.
Analyse how fiscal policy measures could reduce inflation.
Answer:
In order to control the demand-pull inflation, the Government undertakes some monetary measures and incorporates certain changes to the fiscal policy.One of the commonly used measures to control inflation is controlling the money supply in the economy. If the Government decreases the supply of money, then the demand will fall, leading to a fall in prices. Therefore, the Government may decide to withdraw certain paper notes and/or coins from circulation. This decreases the money supply.
Explanation:
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music. To be enforceable, the contract that must be in writing is the purchase of
Answer:
the pair of stereo speakers
Explanation:
UCC rules and the Statute of Frauds state that any contract for the sale or lease of goods that are worth more than $500 should be in writing. The pair of speakers are worth $600, since they are worth more than $500, then any sales contract must be in writing.
The investment approach of one of T. Rowe Price's mutual funds is: "Reflecting a value approach to investing, the fund will seek the stocks of companies whose current stock prices do not appear to adequately reflect their underlying value as measured by assets, earnings, cash flow, or business franchises." This fund is a(n):
Answer:
Active fund
Explanation:
Active funds refer to the fund in which the expertise and a lot of research are required with respect to whether the investment should be hold or not. It could be changed in terms of performance, and the market conditions
Therefore according to the given situation, since the current stock price do not display the underlying value with respect to the assets, earnings, cash flow, etc
So this represents the active fund
the law of demand states that: a) as the price of a good increase, more units are demanded. b) there is a direct relationship between the price of a good and the quantity of the good produced. c) there is a negative relationship between the pridce of a good and the quantity of the good demanded.
Answer:
c) there is a negative relationship between the price of a good and the quantity of the good demanded.
Explanation:
The law of demand states that there is a negative relationship between the price of a good and the quantity of the good demanded.
This ultimately implies that, when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product 1 Product 2 Product 3 Cost $ 26 $ 96 $ 56 Selling price 58 138 88 Costs to sell 6 52 16 Required: What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
Answer:
What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
Product 1: $26 (cost)Product 2: $86 (NRV)Product 3: $56 (cost)Explanation:
Product 1 Product 2 Product 3
Cost $26 $96 $56
Selling price $58 $138 $88
Costs to sell $6 $52 $16
net realizable value $52 $86 $72
which is lower? $26 (cost) $86 (NRV) $56 (cost)
the net realizable value = selling price minus any costs associated to the sales process
All else equal, which of the following is most likely to increase a company's retained earnings breakpoint? a. An increase in the company's dividend payout ratio b. both factors will lead to an increase in the retained earnings breakpoint. c. A decrease in the fraction of equity used in the company's target capital structure
Answer: decrease in the fraction of equity used in the company's target capital structure
Explanation:
Retained earnings is the part of the net income that is left over for the business when the business has already paid out dividends to the shareholders. The retained earnings can be put back into the business.
A decrease in the fraction of equity used in the company's target capital structure will lead to an increase a company's retained earnings breakpoint.
How to calculate momentum?
Answer:
p=mv
Explanation:
the formula for momentum is
p=mv
Answer:
By multiplying mass and velocity
Explanation:
Glenda, the plant manager for ABC Corporation, views the results from the latest survey of employee attitudes. The results show that job satisfaction in the manufacturing plant has dropped significantly since the last survey. This is a ________ source of change.
Answer:
Human resource problem
Explanation:
Human resources is defined as the people that make up the workforce of a business entity. It is also termed manpower, labour, and personel that make up the employee base of a company.
Considerations of human resources are welfare, benefits, hiring, training, and records. These activities have to be satisfactory to maintain a productive workforce.
In the given scenario Glenda views the results of job satisfaction in the manufacturing plant and notices it has dropped significantly since the last survey.
This is a sign that there is a problem related to the human resources of the company.
Job satisfaction will need to be improved to increase employee productivity
Economists consider both explicit costs and implicit costs when measuring economic profit. The reason they consider implicit costs is that
Answer:
a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
Explanation:
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
explicit cost is the actual cost incurred in carrying out a particular action
Economic profit = Total revenue - (implicit cost + explicit cost)
For example , a man leaves his job where he earns $50,000 to start his business. the total revenue of his business is $100,000 while explicit cost is $50,000
Accounting profit = $100,000 - $50,000 = $50,000
Economic profit = $50,000 - $50,000 = 0
A salesperson at Plumbers Warehouse searches public records of new building permits to identify potential customers for new bathrooms. This salesperson is relying on ____ to identify sales prospects.
Complete Question:
A salesperson at Plumbers Warehouse searches public records of new building permits to identify potential customers for new bathrooms. This salesperson is relying on ____ to identify sales prospects.
Group of answer choices
A) personal referrals
B) marketer-initiated contacts
C) impersonal referrals
D) customer-initiated contacts
Answer:
C) impersonal referrals.
Explanation:
In this scenario, a salesperson at Plumbers Warehouse searches public records of new building permits to identify potential customers for new bathrooms. This salesperson is relying on impersonal referrals to identify sales prospects.
An impersonal referrals can be defined as the process of acquiring informations about a potential customer from personal sources, public records etc. It is one of the common techniques used in prospecting, which typically involves the continual process of systematically looking or sourcing for new customers.
5 years ago, an individual had invested $10,000 in an Investment Trust. Over those years, the trust has distributed $2,000, consisting of $1,600 of dividends and $400 of capital gains. The investor has reinvested these distributions in additional trust units. The investor's aggregate current cost basis in the Trust is:
Answer: $12,000
Explanation:
From the question, we are informed that years ago, an individual had invested $10,000 in an Investment Trust and that over those years, the trust has distributed $2,000, consisting of $1,600 of dividends and $400 of capital gains and also that the investor has reinvested these distributions in additional trust units.
The investor's aggregate current cost basis in the Trust will be the beginning basis which was $10,000 added to the $2000 that was distributed. This will be $12,000.
When current government expenditures exceed current tax revenues and the economy is achieving full employment: Group of answer choices fiscal policy is contractionary. the full-employment budget has a deficit. the full-employment budget has neither a deficit nor a surplus. nominal GDP and real GDP are equal.
Answer: the full-employment budget has a deficit
Explanation:
When current government expenditures exceed current tax revenues and the economy is achieving full employment, it means that the full-employment budget has a deficit.
This means that the government of that particular economy is spending more than what it generates. This lead to the deficit that has been incurred.
A theme that begins in this course and is carried throughout the Public Information Training Series, the "95/5" concept A. is presented as a bad example of pubic information management. B. takes its origin from two sources: management consultant D. Edward Deming and Italian economist Vilfredo Pareto. C. is a management concept unique to public information management. D. describes a writing technique applied to social media content.
Answer:
Correct Answer:
B. takes its origin from two sources: management consultant D. Edward Deming and Italian economist Vilfredo Pareto.
Explanation:
In the public information training series, the best option for the theme in question which was been described is the Option B which shows that, it got its origin from two different sources.
Anderson sold a property to Kelly. The contract contained the following statement: "Buyer to accept the property in an 'as is' condition." Both the seller and the broker knew that the plumbing was in a major state of disrepair, but did not tell Kelly. Would an action against the broker and the seller be successful?
Answer:
The action against the seller by Kelly would not be successful. This is because, the contract agreement drafted by the seller contains that clause "as in" condition. It would be believed that, Kelly saw the condition in the contract, but still went ahead to purchase the house by signing the seller's contract agreement of sell. Whatever state the house is in would be taken by Kelly.
Explanation:
Forrest is considering moving his business from a bricks-and-mortar and online establishment to a purely e-business. He is considering this move because the bricks-and-mortar business is not receiving sufficient foot traffic to keep it operational, but the online operation is creating significant revenues. By moving his inventory to an industrial building, customers that still want to pick-up merchandise in person may do so, but he will save on the expenses associated with curb-appeal. He believes he will also be able to operate the business with fewer people and, when closing time comes, can turn off the lights, close the door and leave, but orders can still be placed due to the 24-hour nature of the Internet. Based on the information given, what is the primary environmental force moving Forrest away from a bricks-and-mortar establishment to a purely e-business
Answer:
The Internal environment forces
Explanation:
The internal environment forces are the factors within the organization that directly impact on the daily operational activities of an organization.
Looking at the situation of Forrest as described in the scenario , we can see that the major changes that it will introduce by migrating to a purely e business like using few people, reduced administrative and operating expenses , 24 hours ordering are majorly internal activities , which will address the areas that could have been hindering its efficiency in the previous business activities.
All the following statements concerning ordinary life insurance are correct EXCEPT: Group of answer choices The face amount of the policy is paid if the insured lives to age 75. Premiums are level throughout the life of the policy. There is a build-up of cash value the policyholder can borrow. Ordinary life offers the policyholder the flexibility to meet a wide range of financial objectives.
Answer:
Correct Answer:
4. Ordinary life offers the policyholder the flexibility to meet a wide range of financial objectives.
Explanation:
Ordinary life insurance is a type of life insurance in which policyholders pay premiums for their whole lives at a set price and interval. Despite offering protection in an event of unfortunate event for the policyholders, it does not offer the flexibility to meet wide range of financial objectives.
Ordinary life insurance policies are often considered paid up if the policyholder reaches 100 years of age.
