Answer:
Date Account titles and Explanation Debit Credit
Dec 31 Sales return and allowance $600
Sales refund payable $600
($900 - $300)
(To record the expected refund of sales)
We Are the World is an importing company that specializes in importing hand-made arts and crafts from crafters and artisans around the world. The company has about $4 million worth of stock outstanding. Due to its desire to avoid double taxation, it is structured so that its individual shareholders pay taxes on all of the company's income. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed at their individual tax rates. We Are the World is a(n):_____.
a. limited liability company (LLC).
b. C corporation.
c. S corporation.
d. G corporation.
e. investment trust.
Answer:
c. S corporation.
Explanation:
S corporations that are elected for passing out the corporate income, losses, deductions and credits via to the shareholders for the federal tax motive. It is responsible for tax on specific gains and the passive income for the entity level
Also the shareholders could reported the flow via income and the losses on the personal income tax returns and can be assess at individual tax rates
So, the option c is correct
Dan purchases a 1000 par value 10-year bond with 9% semiannual couponsfor 925. He is able to reinvest his coupon payments at a nominal rate of 7%convertible semiannually.Calculate his nom
Answer:
9.2%
Explanation:
Missing word "Calculate his nominal annual yield rate convertible semiannually over the ten-year period"
Semi annual coupon payments = 9% / 2 = 4.5%
Par value = 4.5% * 1,000 = $45
interest rate per period = r = 7% / 2 = 3.5%
Number of periods, n = 2 x 10 = 20
FV of all the coupons reinvested = 45 / r * [(1 + r)^n - 1]
FV of all the coupons reinvested = 45 / 3.5% * [(1 + 3.5%)^20 - 1]
FV of all the coupons reinvested = $1,272.59
Receipt of par value at the end of the 10 years = par value = 1,000
Total accumulated value at the end of 10 years = $1,272.59 + 1,000
Total accumulated value at the end of 10 years = $2,272.59
Invested amount = $925
i = nominal interest convertible semi annually.
$925 * (1 + i / 2)^n = 2,272.59
925 * (1 + i / 2)^20 = 2,272.59
i = 2 * [(2,272.59 / 925)^1/20 - 1]
I = 9.19%
I = 9.2%
So, his nominal annual yield rate convertible semiannually over the ten-year period is 9.2%
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year Hours Used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 2. Prepare a depreciation schedule for six years using the double-declining-balance method.
Answer:
Year Depreciation expenses
1 $90,000
2 $60,000
3 $40,000
4 $26,667
5 $17,778
6 $11,556
Explanation:
Note: See the attached excel file for the depreciation schedule for six years using the double-declining-balance method.
The double-declining-balance method is a depreciation approach in which the rate of depreciation for an asset is twice the rate of depreciation for the straight line method.
In the attached excel, the double-declining-balance depreciation rate is therefore calculated as follows:
Straight line depreciation rate = 1 / Number of expected useful years = 1 / 6 = 0.166666666666667 = 16.6666666666667%
Double-declining depreciation rate = Straight line depreciation rate * 2 = 16.6666666666667% *2 = 33.3333333333334%
Also note the following in the attached excel file:
Beginning depreciable amount in Year 1 = Cost of the new machine = $270,000
The depreciation expenses for Year 6 is calculated by deducting the residual value of $24,000 from Year 6 Beginning depreciable amount. That is:
Depreciation expenses for Year 6 = $35,556 - $24,000 = $11,556
The residual value of $24,000 therefore represents the book value at the end of Year 6.
From the attached excel file, we therefore have:
Year Depreciation expenses
1 $90,000
2 $60,000
3 $40,000
4 $26,667
5 $17,778
6 $11,556
Barraza Corporation uses a weighted-average process costing system. Barraza has two direct materials. One of these materials is added at the beginning of the production process. The other material is added when processing is 50% complete. When will the equivalent units of production for these two materials be equal?
A. when processing on beginning work in process is less than 50% complete at the start of the period.B. when processing on beginning work in process is more than 50% complete at the start of the period.C. when processing on ending work in process is over 50% complete.D. when processing on ending work in process is less than 50% complete.
Answer:
Barraza Corporation
The equivalent units of production for these two materials will be equal when:
C. when processing on ending work in process is over 50% complete.
Explanation:
The reason for this option is that one of the two materials is added at the beginning of the production process, and the other is added when processing has reached 50% completion. Therefore, their equivalent units will become equal when processing on ending work in process is over 50% complete. By that time, 100% of each material would have been added.
In the Month of March, Digby received orders of 123 units at a price of $15.00 for their product Deal. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 123 units in April. They received payment for 62 units in March, and 62 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order
Answer:
The amount of revenue is recognized on the March income statement from this order is $1,845.00.
Explanation:
Accrual accounting can be described as a method of accounting in which revenue or expenses are recorded at the time of the transaction rather than when payment is received or made.
Since this transaction occurred in March, the total revenue of orders of 123 units received in the month of March will be recognized on the March income statement from this order. That is:
Amount of revenue to recognized in March = 123 * $15.00 = $1,845.00
Therefore, the amount of revenue is recognized on the March income statement from this order is $1,845.00.
In activity-based costing, unit product costs computed for external financial reports include: Multiple Choice direct materials, direct labor, and manufacturing overhead. direct materials and direct labor. direct labor and manufacturing overhead. direct materials and manufacturing overhead.
Answer: direct materials, direct labor, and manufacturing overhead.
Explanation:
When it comes to the costs that are apportioned to a product as its cost, activity-based costing believes that this include both the direct and indirect costs of production.
The direct costs would include the materials and the labor directly involved in the product's production as well as the indirect manufacturing overhead with the logic being that even though manufacturing overheads do not directly impact the production of the good, production would not be able to happen without them.
According to the authors, price controls on water, designed to ensure that lower income people can afford water, have resulted in
Answer: a. a reduced supply of usable water
Explanation:
I am unsure as to the text being referred to but this should be the correct answer.
The market allocates resources efficiently based on price. This means that it sets the price such that people who can afford the goods are able to buy them. This ensures that not everybody gets the good and the good can be sustainably used.
If the government imposes price controls on a good as they did here. The market would be unable to efficiently allocate the water so more people than before would be able to access it. This would lead to the supply being used up so there will be a reduced supply of the good which in this case is water.
On Jan 1 2020, Ethan Corporation issued 12% bonds with a face value of $4,000,000. These bonds mature in ten years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $4,498,490 to yield 10%. Ethan uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2020
Answer:
Ethan Corporation
Using the effective-interest method of amortization, the amount of interest expense that should be reported for 2020 is:
= $449,096
Explanation:
a) Data and Calculations:
Face value of bonds issued = $4,000,000
Issue price of the bonds = 4,498,490
Premium on the bonds = $498,490 ($4,498,490 - $4,000,000)
Coupon interest rate = 12%
Effective interest rate = 10%
Interest payments = June 30 and December 31
June 30:
Cash payment for bond interest = $240,000 ($4,000,000 * 6%)
Interest expense = 224,925 ($4,498,490 * 5%)
Amortization of bond premium = $15,075 ($240,000 - $224,925)
Bonds value = $4,483,415 ($4,498,490 - $15,075)
December 31:
Cash payment for bond interest = $240,000 ($4,000,000 * 6%)
Interest expense = 224,171 ($4,483,415 * 5%)
Amortization of bond premium = $15,829 ($240,000 - $224,171)
Bonds value = $4,467,586 ($4,483,415 - $15,829)
Interest expense for 2020 = $449,096 ($224,925 + $224,171)
Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours 72,900
Estimated variable manufacturing overhead $ 3.50 per machine-hour
Estimated total fixed manufacturing overhead 838,710
The predetermined overhead rate for the recently completed year was closest to:________.
A. $6.66 per machine-hour
B. $10.50 per machine-hour
C. $8.69 per machine-hour
D. $15.00 per machine-hour
Answer:
D. $15.00 per machine hour
Explanation:
The computation of the predetermined overhead rate for the recently completed year is seen below;
First, we will calculate the fixed overhead rate.
Fixed overhead rate = Estimated total fixed manufacturing overhead / Estimated machine - hours
Fixed overhead rate = $838,710 / 72,900
Fixed overhead rate = $11.50
Then,
Predetermined overhead rate = Fixed overhead rate + Variable overhead rate
Predetermined overhead rate = $11.50 + $3.50
Predetermined overhead rate for the recently completed year was closest to $15.00 per machine hour
The risk-free rate of return is currently 3 percent, whereas the market risk premium is 6 percent. If the beta of Lenz, Inc., stock is 1.8, then what is the expected return on Lenz
Answer:
I don't really understand the question
Explanation:
I don't know
but I will check out it later
Rick Co. had 36 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $56 per share. In recording this transaction, Rick would:
Answer:
Debit retained earnings for $20,160,000
Explanation:
Calculation to determine what Rick would record
First step
Shares to be distributed = .01 × 36 million
Shares to be distributed= 360,000 shares
Now let determine the Retained earnings
Retained earnings: Market value of shares = 360,000 × $56
Retained earnings: Market value of shares= $20,160,000
Therefore In recording this transaction, Rick would:Debit retained earnings for $20,160,000
g In the global stage of a firm's globalization, ________. A. the need for training is high B. training is focused on local culture and interpersonal skills C. the need for training is virtually nonexistent D. host-country nationals are trained to understand parent-country products and policies
Answer:
D
Explanation:
The global stage represents the understanding of the products and policies mainly to evaluate the best possible alternative for manufacturing in the home or host country. It emphasizes evaluating the most beneficial strategy to produce goods, whether domestic or global produced.
Why is developing a reputation as a subject matter expert important for a leader if leadership deals so heavily with interpersonal skills
Answer:
Reputation is very important for a leader. If a leader has god interpersonal skills but lacks in good reputation people might hesitate to associate with him and support his activities.
Explanation:
Reputation is most valuable asset for any leader. A leader may have good knowledge of everything, he may have good interpersonal skills but reputation overcomes all of these qualities. Strong reputation of a leader will make it easy for him to earn popularity and respect among people. Reputation is the main quality which leads to success to a leader.
The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:
Answer: 770,000 units
Explanation:
The Equivalent units for Conversion cost is calculated as:
= Total units completed and transferred out + Equivalent units of closing work in process
As the conversion costs were incurred uniformly during the process, the entire closing work in process would have already incurred conversion cost. Conversion cost closing equivalent units are therefore 80,000 units.
Equivalent units for Conversion cost = 690,000 + 80,000
= 770,000 units
The North Division of XYZ Corporation had average operating assets of $1,110,000 and net operating income of $295,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 20%.
Required:
What was the North Division's residual income in January?
Answer:
$73,200
Explanation:
From the above details, we know that;
Residual income =
[Net operating income - (Average operating assets × minimum rate of return)]
= [$295,200 - ($1,110,000 × 20%)]
= [$295,200 - $222,000]
= $73,200
Therefore, the North division's residual income in January is $73,200
Frank and Daniel both agreed to volunteer for a company project cleaning and organizing the district warehouse. There were to be 50 volunteers. Upon arrival, they discovered volunteer turnout was low. They were assigned to the northwest corner of the warehouse where they were to meet Trixie, who would give them their assignment. When they arrived, Trixie was nowhere to be found but they did find two push-brooms leaning against the wall. Frank took a seat on a box to wait for Trixie and his assignment. Daniel grabbed one of the push-brooms and began sweeping. While he was sweeping, Daniel thought, "This is why my desk looks so tidy, while Frank’s desk looks like a disaster." Which of the following statements is likely true of this scenario? Multiple Choice I
a. n this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.
b. In this weak situation, Daniel’s introversion trait is activated. In this strong situation Frank’s conscientiousness trait is activated.
c. In this weak situation, Daniel’s extraversion trait is activated.
Answer:
a. In this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.
Explanation:
A trait can be defined as the characteristics of a person that describes his nature and his behavior. It is the result of one's genes or are influence from surrounding or nature.
A neurotic trait of a person helps the person to deal with the stress. It is a tendency towards shyness, anxiety, etc.
In the context, it is given that both Frank and Daniel volunteered themselves for cleaning a district warehouse. They were assigned the northwest corner of the warehouse to clean. Daniel found a push-broom and started sweeping and cleaning the floor, while Frank waited for Trixie to arrive who will assigned them their job.
In this situation, it shows the laziness trait of Frank who felt too lazy to start his work before someone assigning them to him while Daniel is active and it shows his neurotic trait because of which Daniel started his job and did not waited for Trixie to come.
Thus the correct option is (a).
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 177,000 kilometers during a year, the average operating cost is 12.3 cents per kilometer. If a truck is driven only 118,000 kilometers during a year, the average operating cost increases to 15.5 cents per kilometer.
Required:
a. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation.
b. Express the variable and fixed costs in the form Y = a + bX.
c. If a truck were driven 147,000 kilometers during a year, what total cost would you expect to be incurred?
Indicate whether the following instruments are examples of money market or capital market securities.
a. U.S. Treasury bills
b. Long-term corporate bonds
c. Common stocks
d. Preferred stocks
e. Dealer commercial paper
Answer and Explanation:
In the Money Market Securities, it is treated as the short-term securities that means they are traded for short-term period i.e. less than one year. It has the less risk also the return is also very less but the liquidity is very rich. Examples - treasury bills, commercial papers etc
While on the other hand, the capital market securties are traded for the long term i.e. more than one year. It contains the high risk also the return is very high. Examples - stocks, bonds, debentures
So based on the above explanation, the classification is as follows
a. Money market securities
b. capital market securities
c. capital market securities
d. capital market securities
e. money market securities
Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:
Answer:
The supply will decrease.
Explanation:
The supply will decrease because the application of taxes will make selling costly. Thus, when cost increases then producers supply less. Therefore, less quantity will be supplied in the market when tax is imposed and this will increase the prices of products.
Bethany Jones is a real estate agent who specializes in the luxury home market in the Orlando, FL, area. Bethany is highly technical and uses many types of online marketing techniques to increase business. One of most successful online marketing techniques is to place a rectangular graphic display along the top of real estate websites and luxury custom furniture websites. What type of marketing technique is Bethany using
Answer:
a Banner Ad
Explanation:
The type of marketing technique that Bethany is using is known as a Banner Ad. This is one of many types of ads that can be found on websites. Banner Ads are usually located at the top of the website and are shaped as long rectangles. They are also the most popular type of website ads since they are the biggest and most upfront, meaning that it is usually the first thing that visitors to the site see. This ultimately leads to the largest possible number of viewers of the ads, which in term translates to a high click through rate.
Bellevue Company has 26,000 units of inventory on hand at December 31. It sold 1,950 units which are in transit and were shipped FOB destination. Bellevue purchased 3,250 units which were shipped FOB shipping point by the seller and are still in transit. What is the total amount of inventory to which Bellevue has legal title at December 31
Answer:
24050
Explanation:
Calculation to determine the total amount of inventory to which Bellevue has legal title at December 31
Using this formula
Inventory=Inventory on hand at December 31- Units in Transit
Let plug in the formula
Inventory=26,000 units- 1,950 units
Inventory=24050
Therefore the total amount of inventory to which Bellevue has legal title at December 31 is 24050
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current-period production is the
Answer: the weighted average method
Explanation:
When computing the equivalent units of production, the weighted average method can be used in the combination of partially completed units in the beginning inventory with the current-period production.
In Weighted Average Cost method, a weighted average is used in the determination of the amount which gives into the inventory and the cost of goods sold.
Vextra Corporation is considering the purchase of new equipment costing $38,000.The projected annual cash inflow is $11,600, to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:Periods 12 Percent1 0.89292 1.69013 2.40184 3.0373What is the net present value of the machine (rounded to the nearest whole dollar)?a. $(35,233).b. $(2,767).c. $38,000.d. $(3,700).e. $5,233.
Answer:
b. $(2,767).
Explanation:
The computation of the net present value is shown below:
= Present cash flows - initial investment
= ($11,600 × 3.0373) - $38,000
= $35,232.68 - $38,000
= -$2,767.32
= -$2,767
Hence, the option b is correct
We simply applied the above formula to determine the net present value
Do you think the licensing process for international medical graduates is an unnecessary hurdle meant to shield U.S. doctors from foreign competition?
Answer:
No licensing is right. Doctors in U.S. are spending more on medical studies than any other country. It is necessary for other country medical students to gain license in order to do practice in the country.
Explanation:
In U.S. doctors are in deficiency so the country cannot completely cease employment for foreign doctors. The country needs to welcome foreign doctors but it is also necessary to safeguard home doctors. If U.S. will not safeguard rights of home country doctors then they will be demotivated and will not be patriotic for the country.
The specific actions to be taken in implementing a strategy.
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
In general terms, the specific actions to be taken in implementing a strategy are the following.
First of all, the manager has to clearly define the strategic plan and its content.
Then, define the general goal, and specific goals. It is highly recommended to use the SMART formula. Goals have to be specific, measurable, attainable, realistic, and time-bound.
Then, define the Key Performing Indicators or KPI's. These will serve to define the results the company expects to accomplish with the plan.
Create a series of programs and specific actions to reach the goals.
Then, to implement the tactics or specific programs.
Monitoring the programs and then evaluate the results to provide feedback.
The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.):
Answer:
the net present value is -$72,050
Explanation:
The computation of the net present value is shown below
= $50,000 per year ×PVIFA factor at 10 years for 9% - $360,000
= $50,000 ×5.7590 - $360,000
= $287,950 - $360,000
= -$72,050
hence, the net present value is -$72,050
So the same should be relevant and considered too
B. Lopez Company reports unadjusted first-year merchandise sales of 221,000 and cost of merchandise sales of $64,000. The company expects future returns and allowances equal to 5% of sales and 5% cost of sales. The year-end adjusting entry to record the cost side of sales returns and allowances is:
Answer: See explanation
Explanation:
The year-end adjusting entry to record the cost side of sales returns and allowances will be:
Dr Inventory Return estimated $3200
Cr Cost of goods sold $3200
(To record expected coat of returns)
Note that the above calculation was done as:
= $64,000 × 5%
= $64,000 × 0.05
= $3200
Retained earnings, December 31, 2012 $ 306,800 Cost of equipment purchased during 2013 29,000 Net loss for the year ended December 31, 2013 4,000 Dividends declared and paid in 2013 14,300 Decrease in cash balance from January 1, 2013, to December 31, 2013 11,100 Decrease in long-term debt in 2013 14,000 Required: From the above data, calculate the retained earnings balance as of December 31, 2013. (Negative amounts should be indicated by a minus sign.)
Answer:
$288,500
Explanation:
Particulars Amount
Retained Earnings Dec 31, 2012 $306,800
Less: Net Loss for the Year $4,000
Less: Dividend declared and paid in 2013 $14,300
Retained Earnings Dec 31, 2013 $288,500
employees benfit and service
Explanation:
Medicare and social security contributions. ...
Worker's compensation insurance. ...
Minimum wage and overtime pay. ...
Health insurance. ...
Medical and family leave. ...
Disability insurance. ...
Wellness programs. ...
Commuter benefits.
