Answer:
a. June 30
Dr Sales returns and allowances $1,840
Cr Sales refund payable $1,840
b. June 30
Dr Inventory returns estimated $640
Cr Cost of goods sold $640
Explanation:
a. & b. Preparation of the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales.
a. June 30
Dr Sales returns and allowances $1,840
Cr Sales refund payable $1,840
($92,000 × 2%)
(To record future returns and allowances related to sales)
b. June 30
Dr Inventory returns estimated $640
Cr Cost of goods sold $640
($32,000 × 2%)
(To record cost of sales)
a.To record expected sales to be refunded ($92,000 × 2%)
To record expected sales to be refunded= $1,840
b. To record expected cost of returns= ($32,000 × 2%)
To record expected cost of returns = $640
A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee. An investor who owns more than ____% of a company's voting stock has control over the investee.
Answer: 50%
Explanation:
The Equity Securities with controlling influence refers to the long-term investment whereby the investor exert controlling influence over the investee. In such case, the investors own 50% or more of the voting stock.
On the other hand, the Equity securities with significant influence refers to the long-term investment whereby the investor exerts significant influence over the investee. In such case, the investors own 20% or more of the voting stocks but should be less than 50%.
Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 and the current spot rate is $0.75. If you use a forward hedge, estimate the cost of hedging the receivable if, 90 days later, the spot rate for CAD 90 days later turns out to be $0.82.
a. $50,000
b. $50,000
c. $75,000
d. $75,000
Answer:
Cost of hedging = $24,000
Explanation:
cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000
Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.
A sector fund specializing in commercial bank stocks had average daily assets of $3.7 billion during the year. This fund sold $1.58 billion worth of stock during the year, and its turnover ratio was .42. How much stock did this mutual fund purchase during the year
Answer:
$1.554 billion
Explanation:
Turnover Ratio = Purchases / Average Inventory
0.42 = Purchases / $3.7 billion
Purchases = $3.7 billion * 0.42
Purchases = $1.554 billion
So, the value of stock that the mutual fund purchase during the year is $1.554 billion
Crane Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $210000 $160000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $700000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. The total raw materials available for use during 2017 for Crane Company is
Answer:
$910,000
Explanation:
Given the above information, total raw materials available for use during 2017 is calculated below;
= Beginning raw materials + Purchases
Beginning raw materials = $210,000
Purchases = $700,000
Then,
Total raw materials available for use during 2017 for Crane company
= $210,000 + $700,000
= $910,000
Dake Corporation's relevant range of activity is 3,500 units to 8,500 units. When it produces and sells 6,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 6,000 units is closest to:
Answer:
$89,100
Explanation:
Direct material = $6.6
Direct labor = $3.6
Variable manufacturing overheads = $1.35
Fixed manufacturing overheads = $3.3
Total production cost per unit = $6.6 + $3.6 + $1.35 + $3.3
Total production cost per unit = $14.85
Total amount of product cost incurred for 6000 unit:
= $14.85 * 6,000 units
= $89,100
MacKenzie Company sold $400 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.0% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:
Answer:
Date Account Title Debit Credit
XX-XX-XXXX Cash $392
Credit card service charge $ 8
Sales $400
Working
Cash :
= 400 * (1 - 2% service charge)
= $392
Credit card service charge:
= 400 * 2%
= $8
If the price level is 100 for 1996 and the price level is 103.3 in 1998, a nominal GDP in 1998 of $8,800 billion would mean that real GDP in 1998 (in 1996 prices) would be closest to:_______
a. $9.090.4 billion.
b. $8,518.9 billion.
c. $8,800 billion.
d. $8696.7 billion
Answer: b. $8,518.9 billion.
Explanation:
Nominal GDP is calculated with current prices which means that the effects of inflation are present.
Real GDP removes this effect by basing the GDP calculation on the prices of a previous period:
Real GDP = Nominal GDP * 100/ Price level
= 8,800 * 100/ 103.3
= $8,518.877
= $8,518.9 billion
Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800 and investment of $3,000. GDP equals:_______.A. $24,450B. $11,550C. $15,300D. $20,700
Answer:
C. $15,300
Explanation:
Calculation to determine what GDP equals:
Using this formula
GDP = Consumption + Investment spending + Government Spending + Net Export
Where,
Net Export = Export - Import
Let plug in the formula
GDP=$9,000 + $3,000 + $3,500 + ($2500 - $2700)
GDP= $15,300
Therefore GDP equals:$15,300
one markeitng action that can be taken to sell a single product or service to muylpele market segments is to
Answer: C. develop separate promotional campaigns.
Explanation:
Different market segments will have different norms and values that companies will have to take advantage of in order to sell their goods or services.
They will therefore need to develop separate promotional campaigns that are aimed at taking advantage of these norms and values in order to appeal to the people in the different segments.
Decrease in money demand shifts the (IS/LM ) curve to the _____________ and leads to a ________________ in Y and ______________ in r.
Answer:
LM curve will shift left and lead to decrease in Y and increase in r.
Explanation:
When money demand decreases, it will cause LM curve to shift up to the left. There will be decrease in Fed which causes decrease in money supply. The upward shift of LM curve will lower the income and raise interest rates.
1. Offering a credit customer a discount after the sale has occurred is a way to?
Answer:
hope it helps you:)
Explanation:
god blessed
Union Local School District has bonds outstanding with a coupon rate of 3.9 percent paid semiannually and 16 years to maturity. The yield to maturity on these bonds is 4.2 percent and the bonds have a par value of $5,000. What is the price of the bonds
Answer:
Thx foe tge points lol
Explanation:
✨✋
Amazon Corporation has preferred stock outstanding that pays a $11.45 annual dividend. It price is $147. What is the required rate of return (yield) on the preferred stock?
Answer:
7.79%
Explanation:
Calculation to determine the required rate of return (yield) on the preferred stock
Using this formula
Cost of preferred stock=Annual Dividend per share/Current price of preferred stock
Let plug in the formula
Cost of preferred stock=$11.45/$147
Cost of preferred stock=0.0779*100
Cost of preferred stock=7.79%
Therefore the required rate of return (yield) on the preferred stock is 7.79%
which of the following is false? when a cboe call option on ibm is exercised, ibm issues more stock. an american option can be exercised at any time during its life. a put option will always be exercised at maturity if the strike price is greater than the underlying asset price
Answer:
The false statement is:
when a CBOE call option on IBM is exercised, IBM issues more stock.
Explanation:
CBOE = Chicago Board Options Exchange. CBOE pioneered the options trading in 1973. It has remained the largest U.S. options market operator. It supports options trading on thousands of publicly listed stocks and exchange-traded products. Exercising a call option on the exchange platform does not affect the outstanding IBM stock and will never force IBM Corporation to issue more stock.
On April 1, Holton Company borrows $100,000 from West Bank by signing a 6-month, 6%, interest-bearing note.
Prepare the necessary entries below associated with the note payable on the books of Holton Company.
(a) Prepare the entry on April 1 when the note was issued.
(b) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made.
Answer:
A. Dr Cash $100,000
Cr Notes Payable $100,000
B. Dr Interest expense $1,500
Cr Interest Payable $1,500
Explanation:
a Preparation of the entry on April 1 when the note was issued.
Dr Cash $100,000
Cr Notes Payable $100,000
(To record note issued)
B. Preparation of any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements
Dr Interest expense $1,500
Cr Interest Payable $1,500
($100,000 x .06 x 3/12)
Tisdale Incorporated reports the following amount in its December 31, 2021, income statement. Sales revenue $ 250,000 Income tax expense $ 20,000 Non-operating revenue 100,000 Cost of goods sold 180,000 Selling expenses 50,000 Administrative expenses 30,000 General expenses 40,000 Required: 1. Prepare a multiple-step income statement
Answer and Explanation:
The preparation of the multiple step income statement is presented below
Sales revenue $250,000
Less: cost of goods sold -$180,000
Gross profit $70,000
Less
Selling expenses 50,000
Administrative expenses 30,000
General expenses 40,000
Total operating expenses -$120,000
Non operating revenue $100,000
Income before income taxes $50,000
Less: income tax expense -$20,000
Net income $30,000
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value.b. The company paid $1,500 cash for rent of office space for the month.c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).d. The company completed work for a client and immediately collected the $2,500 cash earned.e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.f. The company purchased additional equipment for $6,000 cash.g. The company paid an assistant $3,000 cash as wages for the month.h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.i. The company paid $10,000 cash to settle the liability created in transaction c.j. Owner withdrew $1,000 cash from the company for personal use.RequiredCreate the following table similar to the one in Exhibit 1.9.Equity Assets Liabilities + Expenses Cash + Receivable + Equipment = Payable + M. Chen, Capital M. Chen, + Revenues AccoThen use additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. Show new balances after each transaction.
Answer:
The accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
Explanation:
Note: See the attached excel file for the analysis of the Effect of June Transactions on the Accounting Equation
From the last balances in the attached excel file, we have:
Assets = Cash + Receivable + Equipment = $41,000 + $8,000 + $31,000 = $80,000
Liabilities = Payable = $0
Equity = M. Chen, Capital - M. Chen, Withdrawals + Revenue - Expenses = $75,000 - $1,000 + $10,500 - $4,500 = $80,000
Liabilities + Equity = $0 + $80,000 = $80,000
Therefore, the accounting equation holds as follows:
Asset = Liabilities + Equity = $80,000
Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium.
Answer 1:
Yes. There is currently a shortage of human organs available for transplant
Explanation:
This is because in the U.S. the current legislation bans the sale of human organs. Hence the official or legal price of a human organ is $0.
Going by the principles of supply and demand, supply (all other factors held constant) follows in the direction price.
Answer 2:
Legalizing the trade for human organs will have the following impact:
it would reduce the shortage of human organs. Higher prices usually create increased levels of supply. On the other hand, it may also reduce quantity demanded. As soon as the sale of human organs become legal, those waiting to receive organs will have to pay or offer a higher price for an organ. The point of equilibrium is where the demand and supply curves intersect. Changes in the demand curve is highly unlikely however, the supply curve might move to the left because presently the bulk of kidney donors are those who do it from good conscience expecting nothing in return. Those category of people may become de-incentivised more and more from making their donations.Cheers
how does minimum wage influence the demand and supply in the labour market?
The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company’s cost of internal equity. Adams’s bonds yield 10.28%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Adams’s cost of internal equity is:
Answer:
the cost of internal equity is 16.17%
Explanation:
The computation of the cost of internal equity is shown below:
= Yield of the bond + risk premium of the firm
= 10.28% + 4.95%
= 16.17%
Hence, the cost of internal equity is 16.17%
Basically we add the two things so that the cost of internal equity could be determined
When a company outsources some of its work / activities currently done by itself, it ultimately shifts the cost structure of the company. In most cases this shift entails:
Answer:
Outsourcing Company Activities
The shift in the cost structure of the company entails:
the elimination of most fixed costs and making variable costs to become more prominent.
Explanation:
A company's cost structure describes the relative proportions of fixed and variable costs which the company incurs in its business activities. Outsourcing is a cost-driven strategy that involves the use of outside vendors to perform services and create goods that were traditionally produced in-house, thereby eliminating some employees and facilities, and thus, reducing cost.
2. In what ways does the division between value creation and value delivery help clarify the process of refining the business model
Answer:
Value creation refers to the process of creating a company value based on the demands of the consumer and their willingness to use the value. The action of drifting wealth in a value networks is essential to the idea of shared value.
In other words, The way you create your goods such that they provide the most value to the customers who use them is called value delivery. Customers can receive worth in the shape of goods, perks, and characteristics, among other things. Anything that adds worth to the consumer 's experience should be included in the value ordering process.
On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,350. Marin delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs
Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Explanation:
Preparation of the journal entries for Cosmo related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Murphy's, Inc., has 45,000 shares of stock outstanding with a par value of $1 per share. The market value is $10 per share. The balance sheet shows $70,500 in the capital in excess of par account, $45,000 in the common stock account, and $133,500 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the balance in the capital in excess of par account be after the dividend?
Answer: $119100
Explanation:
The balance in the capital in excess of par account be after the dividend will be calculated thus:
Firstly, we'll calculate the change in capital in excess of par and this will be:
= Number of shares × dividend rate × (market value - par value)
= 45,000 × 12% × ($10 - $1)
= (45000 × 0.12) × $9
= 5400 × $9
= $48,600
Then, the balance in the capital in excess of par after the dividend will be:
= $70,500 + $48,600
= $119,100
Bonita Inc. has an investment in available-for-sale securities of $65000. This investment experienced an unrealized loss of $6100 during the current year. Assuming a 40% tax rate, the effect of this loss on comprehensive income will be
Answer:
Decrease by $6100
Explanation:
Any gain or loss adjustment on an investment in available-for-sale securities is accounted for under the title Other Comprehensive Income in the Statement of Profit and Loss and Other Comprehensive Income. Thus, the effect of this loss on comprehensive income will be a Decrease by $6100.
Kelso's has a debt-equity ratio of 0.6 and a tax rate of 35 percent. The cost of equity is 14.5 percent and the after tax cost of debt is 4.8 percent. What is the weighted average cost of capital
Answer:
10.86 percent
Explanation:
Calculation to determine the weighted average cost of capital
Weighted average cost of capital = (1/1.6) (0.145) + (0.6/1.6) (0.048)
Weighted average cost of capital = (0.625) (0.145) + (0.375) (0.048)
Weighted average cost of capital = 10.86 percent
Therefore Weighted average cost of capital is 10.86 percent
Cross-training occurs: Group of answer choices when employers need to enhance the effectiveness of training by reducing employees' job duties. when e-learning is used as the primary mode for delivering the content of a training program. when the training takes place outside the employing organization. when people are trained to do more than one job.
Answer:
When people are trained to do more than one job
Explanation:
Cross-training
This is simply defined as a type of training usually in diverse areas so as to improve the overall performance
It uses the good qualities or effectiveness of each training method and combining them to remove the limitations of each method.The origin of cross-training is the said to be triathlon which came about in the 1970s.
Its aims specifically is to combine exercise in which five components of fitness cardiorespiratory endurance, muscular strength, muscular endurance, flexibility, body composition.
Cross training uses more than one type of training such as
•Fartlek training on Tuesdays
• Circuit training on Thursdays
• Weight training on Saturdays
Advantages of Cross training
1. It is very good if an individual is involved.
2. It has more than one activity
3. It is an activity that is made up of different types of events etc.
Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong. The group of managers that Bill discovers is an example of:
A) an informal interest group
B) a formal group
C) A fun group
D) a quality group.
The correct answer is B) a formal group.
The group of managers that Bill discovers is an example of a formal group.
During their visit to a large manufacturing business, Bill discovers a formal group. It is a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees.
When we are referring to an organization, a formal group can be understood as a workgroup that is formed by design, depending on a hierarchical composition. The members of this group have specific tasks according to the work they perform in the company.
Usually, these groups are formed based on the experience of their members because they want to accomplish goals in a more effective way and to improve the decision-making process of difficult issues.
What is the change in net income if fixed cost of $20,000 can be avoided and Frannie could rent out the factory space no longer in use for $20,000?
Answer:
Note The full question is attached as picture below
1). Purchasing cost = 10,000* $18
Purchasing cost = $180,000
Making cost = Direct material + Direct labor + Variable overhead
Making cost = $65,000 + $55,000 + $30,000
Making cost = $150,000
Difference in cost (Per unit) = ($180,000-$150,000) / 10,000\
Difference in cost (Per unit) = $3
Change in net income = $180,000 - $150,000
Change in net income = $30,000 (Decrease)
2. Purchasing cost = 10,000*$18
Purchasing cost = $180,000
Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead
Making cost = $65,000 + $55,000 + $30,000 + $20,000
Making cost = $170,000
Difference in cost (per unit) = ($180,000 - $170,000) / 10,000
Difference in cost (per unit) = $1
Change in net income (decrease) = $170,000 - $180,000
Change in net income (decrease) = $10,000
3. Purchasing cost = $180,000 - $20,000
Purchasing cost = $160,000
Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead
Making cost = $65,000 + $55,000 + $30,000 + $20,000
Making cost = $170,000
Change in net income = $170,000 - $160,000
Change in net income = $10,000 (increase)
consumers who had used a gasoline company's proprietary credit card...is the court of appeals likely to accept the interlocutory appeal
Answer:
No appeal can not be made.
Explanation:
Interlocutory appeal is the one in which a court will issue order while the case is still pending. Any appeal is not accepted on these orders. Appeal can only be made when the court issues final judgement after a trial.
