Self minus Defense ​Schools, Inc. is authorized to issue​ 200,000 shares of ​$2 par common stock. The company issued 73,000 shares at $ 5 per share. When the market price of common stock was $ 7 per​ share, Self minus Defense Schools declared and distributed a 14​% stock dividend.​ Later, Self minus Defense Schools declared and paid a $ 0.70 per share cash dividend.


Required:

a. Journalize the declaration and the distribution of the stock dividend.

b. Journalize the declaration and the payment of the cash dividend.

Answers

Answer 1

Answer: Please see answer in explanation column

Explanation:

Number of outstanding shares =73,000

Stock Dividend declared %  14%

Market value per share  $7

a) journal entry to record  the declaration of stock dividend

Account                                             Debit                         Credit

Stock dividend                               $71,540

Commo9n stock divo9dend redistributable                  $20,440

Paid in capital in excess of par  

($71,540 - $20,440)                                                            $51,100    

Calculations

Stock dividend = 73,000 x 14% x $7=$71,540

Common stock dividend redistributable =73,000 X 14% X $2=$20,440

b) journal entry to record  the distribution of stock dividend

Account                                                         Debit             Credit

Common stock dividend redistributable    $20,440                

Common stock                                                                 $20,440

Calculation= Common stock dividend redistributable =73,000 X 14% X $2=$20,440

c) journal entry to record the declaration of cash dividend

Account                                             Debit                         Credit

    Cash dividend                              $58,254

Dividend payable - common stock                                  $58,254              

Calculations

Cash dividend= Numberof shares outstanding×Cash dividend per share

=[73, 000 shares+(73,000 shares×14%)]×$0.70 each

=[73,000 shares+ 10,220 shares]×$0.70 each

=83,220 shares×$0.70 each

= $58,254

​  

d)journal entry to record the payment of cash dividend

Account                                                Debit                         Credit

Dividend payable - common stock   $58,254    

     Cash dividend                                                              $58,254    


Related Questions

Which of the following statements about collateral contracts is true? Group of answer choices The guarantor promises to pay only if the principal debtor fails to do so. The principal debtor's debt is secondary. A collateral contract involves three parties and one promise to perform. The guarantor's debt is primary.

Answers

Answer:

The principal debtor's debt is secondary

Explanation:

The collateral contracts  involves three parties and one promise to perform.

What is a Collateral Contract?

A collateral contract is a separate contract which exists beside the main contract. Largely, where a written contract, the term of agreement base on the contract.

The collateral contracts are independent oral or written contracts that are made between two parties to a separate agreement or between one of the original parties and  a third party.

This type of contract is usually made before or simultaneously with the original contract.

A collateral contract is a secondary agreement added to the original contract that is meant to ensure that the pre-contract promise are met.

Collateral contracts contain terms that conflict with the terms of the primary agreement.

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Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available: Quantity of direct labor used 5,000 hrs. Actual rate for direct labor $22.75 per hr. Bicycles completed in October 800 bicycles Standard direct labor per bicycle 6.0 hrs. Standard rate for direct labor $24.00 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answers

Answer:

a) i. Direct labor rate variance = Quantity of direct labor used * (Actual rate for direct labor - Standard rate for direct labor)

= 5,000*(22.75-24)

= -6,250 (Favorable)

ii. Direct labor time variance =  Standard rate for direct labor * (Quantity of direct labor used - Bicycles completed in October * Standard direct labor per bicycle)

= 24 * (5000 - 800 * 6)

= 4,800 (Unfavorable)

iii. Total Direct labor cost variance =  (Quantity of direct labor used * Actual rate for direct labor) - (Bicycles completed in October * Standard direct labor per bicycle * Standard rate for direct labor)

= (5000 * 22.75) - (800 * 6 * 24)

= -1450 (Favorable)

Answer:

The total cost variance of labor will be "-1,450 (favorable)". The further explanation is given below.

Explanation:

According the question,

Direct labor rate variance will be:

⇒  [tex]5000\times (22.75-24)[/tex]

⇒  [tex]5000\times (-1.25)[/tex]

⇒  [tex]-6,250 \ (favorable)[/tex]

Direct labor time variance will be:

⇒  [tex]24\times (5000-800\times 6)[/tex]

⇒  [tex]24\times 200[/tex]

⇒  [tex]4,800 \ (unfavorable)[/tex]

Now,

The Total Direct labor cost variance will be:

⇒  [tex](5000\times 22.75)-(800\times 6\times 24)[/tex]

⇒  [tex](113,750)-(115,200)[/tex]

⇒  [tex]-1,450 \ (favorable)[/tex]

Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra's capital is $200,000, Merina's capital is $160,000, and they share income in a ratio of 3:2, respectively.Required:Record Wayne's admission for each of the following independent situations:a. Wayne directly purchases half of Merina's investment in the partnership for $97,000.b. Wayne invests the amount needed to give him a one-third interest in the partnership's capital if no goodwill or bonus is recorded.

Answers

Answer:

a. Merina's captal is $160,000. Half would be $80,000.

Entry;

DR Merina, Capital ..................................................................$80,000

CR Wayne, Capital ....................................................................................$80,000

(To record purchase of half of Merina Capital)

b.

DR Cash......................................................................$180,000

CR Wayne, Capital.........................................................................$180,000

(To record Wayne investment)

Working

The current Capital amount is;

= 200,000 +160,000

= $360,000

If Wayne joins and adds to this such that he owns 1/3 then;

2/3x = 360,000

x = 360,000/2/3

x = $540,000

Wayne's share would be;

= 1/3 * 540,000

= $180,000

The journal entries that would take place will take effect as A- A debit in Merina's capital amount and Cash account as $17000 and a credit effect in Wayne's capital account. The amount of debit and credit will be $97000.

And for B- There will be Debit in Cash account effecting a credit in The Wayne's capital account. The amount effecting the debit and credit side will be $180,000.

The journal entries are added in the images attached to the answer. The entries would take place in the journal entries on the respective date of their occurrence.( Image attached below).

When Wayne is introduced as partner for one third share the calculation of the amount of his capital would be shown as considering the capital as x. The capital by existing partners is $360000. (Image below).

,[tex]\dfrac{2}{3}x\ = 360000[/tex]

[tex]x= \dfrac {360000}{\dfrac{2}{3}}[/tex]

Now the value of x will be calculated as

[tex]x= \dfrac{540000}{3}[/tex]

[tex]x=180000[/tex]

Therefore Wayne's capital will be calculated as $180,000, so he will be required to bring in additional $180,000 capital in the firm for getting one third share in the profits and losses of the company.

Hence, the correct statements for A will be that Wayne pays $97000 which will be divided in Merina's capital and cash accounts in the proportion of $80000 and $17000 respectively.

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Barette Consulting currently has no debt in its capital structure, has $500 million of total assets, and its basic earning power is 15%. The CFO is contemplating a recapitalization where it will issue debt at a cost of 10% and use the proceeds to buy back shares of the company's common stock, paying book value. If the company proceeds with the recapitalization, its operating income, total assets, and tax rate will remain unchanged. Which of the following is most likely to occur as a result of the recapitalization? a) The ROA would remain unchanged b) The basic earning power ratio would decline c) The basic earning power ratio would increase d) The ROE would increase e) The ROA would increase

Answers

Answer:

d) The ROE would increase

Explanation:

Since the company's operating income will remain unchanged, net income will decrease due to interest expense, but the total number of shares outstanding will decrease. This will result in a higher EPS (earnings per share), and a higher ROE (return on equity), but it would also make the company's risk increase and Re (cost of equity) increase.

Consider a basket of consumer goods that costs $90 in the United States. The same basket of goods costs CNY 105 in China.
Holding constant the cost of the basket in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table.
Cost of Basket in U.S (Dollars) Cost of Basket in China (Yuan) Nominal Exchange Rate (Yuan per dollar) Real Exchange Rate (Baskets of Chinese goods per basket of U.S goods)
90 105 7.00
90 105 10.50

Answers

Answer:

The real exchange rates that would result from the two nominal exchange rates are:

For the first row in the table RER is 6.

For the second row in the table RER is 9.

Note: See the attached excel file for the table.

Explanation:

Note: The table in the question is merged together. It is therefore sorted before answering the question. See the attached excel file for the sorted table.

The answer to the explanation to the answer is now provided as follows:

The real exchange rate (RER) between the the currencies of two counties can be described as the multiplication of the nominal exchange and the ratio of baskets of goods between these two countries.

RER can can therefore be calculated using the following formula:

RER = (e * P*) / P ................................. (1)

Where, from the question;

e = Nominal exchange rate or Yuan per dollar

P* = Cost of Basket in U.S (Dollars)  

P = Cost of Basket in China (Yuan)

For the first row in the table:

e = Nominal exchange rate or Yuan per dollar = 7

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Substituting the values into equation (1), we have:

RER = (7 * 90) / 105

RER = 630 / 105

RER = 6

For the second row in the table:

e = Nominal exchange rate or Yuan per dollar = 10.50

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Substituting the values into equation (1), we have:

RER = (10.50 * 90) / 105

RER = 945 / 105

RER = 9

The real exchange rates that should lead from the two nominal exchange rates should be 6 and 9.

Calculation of the real exchange rate:

RER = (e * P*) / P ................................. (1)

Here,

e = Nominal exchange rate or Yuan per dollar

P* = Cost of Basket in U.S (Dollars)  

P = Cost of Basket in China (Yuan)

So,

e = Nominal exchange rate or Yuan per dollar = 7

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

Now

RER = (7 * 90) / 105

RER = 630 / 105

RER = 6

Now

e = Nominal exchange rate or Yuan per dollar = 10.50

P* = Cost of Basket in U.S (Dollars)  = $90

P = Cost of Basket in China (Yuan) = 105

So,

RER = (10.50 * 90) / 105

RER = 945 / 105

RER = 9

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if american auto companies make a breakthrough in automobile technology and are able to produce a car that gets

Answers

Answer: The dollar will appreciate

Explanation:

Here is the complete question:

American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 200 miles to the gallon, what will happen to the U.S. dollar exchange rate?

Appreciation of a currency simply means that the value of a particular currency has risen when compared to another currency. In this situation, the value of the dollar will rise against other currencies.

This.is because the increase in production in the United States will let to an increase in the exchange rate I the future which will lead to a rise in the dollars expected return.

NewTech purchases computer equipment for $154,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000.Required:Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.

Answers

Answer:

Accumulated depreciation = $129,000

Net book value after years = Salvage value = $25,000

Explanation:

Note: See the attached excel file for the table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.

Double-declining-balance is a depreciation method in which an asset is depreciated at twice the rate of the straight line depreciation method.

For this question, the depreciation rate can be obtained as follows:

Straight line depreciation rate = 1 / Number of years of operating activities = 1 / 4 = 0.25, or 25%

This can be done as follows:

Double-declining depreciation rate = Straight line depreciation rate * 2 = 25% * 2 = 50%

The 50% double-declining depreciation rate is therefore used in the attached excel file table.

Note that there the depreciation expenses in Year 4 is zero because the asset has already been fully depreciated in year 3 since there is a salvage value of $25,000 that must be maintained at the end of Year 4.

Hampton Company reports the following information for its recent calendar year.
Income Statement Data Selected Year-End Balance Sheet Data
Sales $ 160,000 Accounts receivable increase 10,000
Expenses Inventory decrease 16,000
Cost of goods sold 100,000 Salaries payable increase 1,000
Salaries expense 24,000
Depreciation expense 12,000
Net income $ 24,000
Required:
Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method.

Answers

Answer:

Cash Flow from Operating Activities

Net Income                                                          $24,000

Adjustments for Non-Cash items :

Depreciation expense                                         $12,000

Adjustments for Changes in Working Capital :

Increase in Accounts receivable                       ($10,000)

Decrease in Inventory                                         $16,000

Increase in Salaries payable                                 $1,000

Net Cash from Operating Activities                   $43,000

Explanation:

The Indirect method reconciles the Operating Profit to Operating Cash Flow by adjusting the Operating Cash flow with the following items :

Non-cash items previously deducted or added to Operating Profit.Changes in Working Capital.
The preparation of the  operating activities section of the statement of cash flows for Hampton Company using the indirect method is presented below:

Cash Flow from Operating Activities

Net Income                                                          $24,000  

Adjustments for Non-Cash items :  

Depreciation expense                                         $12,000  

Adjustments for Changes in Working Capital :  

Increase in Accounts receivable                       ($10,000)  

Decrease in Inventory                                         $16,000  

Increase in Salaries payable                                 $1,000  

Net Cash from Operating Activities                   $43,000

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Dewyco has preferred stock trading at per share. The next preferred dividend of is due in one year. What is​ Dewyco's cost of capital for preferred​ stock?

Answers

Answer:

6%

Explanation:

some information is missing:

market price of preferred stock = $50

preferred stock dividend = $3

preferred stocks' cost of capital = preferred stock dividend / market price of preferred stock = $3 / $50 = 0.06 = 6%

Preferred stocks' cost of capital is not affected by any corporate tax rates, since preferred dividends are considered paid in capital and cannot be deducted as interests in the income statement.  

The unfavorable volume variance may be due to all of the following factors except:_______

a. failure to maintain an even flow of work
b. machine breakdowns
c. failure to obtain enough sales orders
d. unexpected increases in the cost of utilities

Answers

Answer:

d. unexpected increases in the cost of utilities

Explanation:

there are several volume variances:

direct materials volume variancedirect labor volume variancemanufacturing overhead volume variance sales volume variance

Utilities are part of manufacturing overhead, but volume variances using the standard rates, so an unexpected increase in the cost of utilities will not affect the overhead volume variance.

The unfavorable volume variance can not be due because of unexpected Increases in the cost of utilities

Unfavorable volume variance means that the amount of applied fixed manufacturing overhead costs is less than the budgeted fixed manufacturing overhead costs

The machine breakdowns will affect production levels, thus, resulting to unfavorable volume variance.

The failure to maintain even flow of work will impact the production quantities, thus, resulting to unfavorable volume variances

The failure to obtain enough sales order will limit production quantities, thus, resulting to unfavorable volume variances.

Thus, the Option D is correct because unfavorable volume variance can not be due because of unexpected Increases in the cost of utilities

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a process with a one-sided specification has a Cpk of 0.22. What is the percentage of the production falls beyond the specification limit

Answers

Answer:

≈ 25%

Explanation:

Given data:

Cpk = 0.22

Determine The percentage of production that falls beyond the specification limit ( assuming normal distribution )

first calculate the value of Z ;

Cpk = Z /3

hence Z = Cpk * 3 = 0.22 * 3 = 0.66

The percentage of the production can be determined by

( 1 - value obtained from the standard normal table for the value of Z =0.66 )

1 - 0.7454 = 0.2546  ≈ 25%

Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $533,300. On January 3, 2014, the acquisition date, Saddler Corporation’s capital stock and retained earnings account balances were $508,500 and $101,800, respectively

The following values were determined for Saddler Corporation on the date of purchase:

Book Value Fair Value
Inventory $50,600 $68,800
Other current assets 197,800 197,800
Marketable securities 100,100 125,300
Plant and equipment 305,900 330,200

Required:
Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper.

Answers

Answer:

Pace Company

Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper:

                                     Book Value   Fair Value   Differential

Inventory                         $50,600      $68,800     $18,200

Other current assets       197,800       197,800         0        

Marketable securities      100,100       125,300      25,200

Plant and equipment     305,900       330,200     24,300

Goodwill                                                                    9,300

Total                             $654,400      $722,100  $77,000

Before Goodwill:

Total                             $654,400     $722,100   $67,700

Explanation:

a) Data and Calculations:

Purchase of 20,000 of the 25,000 shares = 80% equity

Saddler Corporation’s:

Capital stock =        $508,500

Retained earnings = $101,800

Total equity =           $610,300

Purchase price =     $533,300

Differential =             $77,000

Saddler Corporation's Assets:

                                     Book Value   Fair Value   Differential

Inventory                         $50,600      $68,800     $18,200

Other current assets       197,800       197,800         0        

Marketable securities      100,100       125,300      25,200

Plant and equipment     305,900       330,200     24,300

Goodwill                                                                    9,300

Total                             $654,400      $722,100  $77,000

b) The Differential between the fair value of the net assets and the purchase price is allocated to Goodwill on acquisition.

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.
Year Cash Flow A Cash Flow B
0 –$48,000 –$ 93,000
1 18,500 20,500
2 24,800 25,500
3 20,500 33,500
4 6,500 247,000
What is the payback period for each project?

Answers

Answer:

Project A 2.22 years

Project B 3.05 years

Explanation:

Calculation for the payback period for each project

Project A

First step is to calculate for the amount received in 2 years

Amount received=$18,500+24,800

Amount received =$43,300

Second step is to calculate for the amount not received

Amount not received =$48,000-$43,300

Amount not received =$4,700

Third step is to find out when the remaining amount will be received.

=$4,700/$20,500

=$0.22 years

Last step

Payback period=2+0.22 years

Payback period =2.22 years

The payback period for project A will be 2.22 years

Project B

First step is to calculate for the amount received in 3 years

Amount received=$20,500+$25,500+$33,500

Amount received =$79,500

Second step is to calculate for the amount not received

Amount not received =$93,000-$79,500

Amount not received =$13,500

Third step is to find out when the remaining amount will be received.

=$13,500/$247,000

=$0.05 years

Last step

Payback period=3+0.05 years

Payback period =3.05years

The payback period for project B will be 3.05 years

Potential GDP of an economy is $12 billion. Real (Actual) GDP is $20 Billion. Marginal propensity to consume is 0.75. What level of Government spending is required to achieve Full employment

Answers

Answer:

Government spending required  = $2 billion

Explanation:

The required amount of GDP to achieve the full employment GDP =

Potential GDP - Actual

that is 20 - 12 = $8 billion.

But note that a government spending of less than $8 billion would be required to achieve an increase of 8 billion in real GDP. This is so because of   expenditure multiplier effect.

The expenditure multiplier is the amount by which the aggregate output would increase with an increase in any of the expenditure components.

It is calculated as follows;

Multiplier = 1/(1-MPC)

For this question ,

Expenditure multiplier = 1/(1-0.75) = 4

This implies that $1 change in any of the aggregate expenditure would lead a $4 worth of change in GDP.

Government spending required  is determined as

Desired change in real GDP/expenditure multiplier

= $8 billion/4 = $2 billion

Government spending required  = $2 billion

TB MC Qu. 6-75 Kuzio Corporation produces and ... Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 75 50 % Contribution margin $ 75 50 % The company is currently selling 6,500 units per month. Fixed expenses are $184,000 per month. The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change

Answers

Answer:

Effect on income= $6,450 increase

Explanation:

Giving the following information:

Contribution margin= $75

The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in contribution margin - increase in fixed costs

Effect on income= 190*75 - 7,800

Effect on income= $6,450 increase

A trader maintains a position in a small capitalization stock that has low trading volume. The trader has a high level of which of the following risks?
A) MarketB) LiquidityC) BusinessD) Inflation

Answers

Answer:

B) Liquidity

Explanation:

Liquidity is the ability of quickly buy or sell a stock without any price change.

Liquidity in a small-capitalization stock that has low trading volume is generally low that causes a problem for traders. It is so because in small capitalization, traders are unable to understand potential pitfalls and blindly invest in small-capitalization stocks which do not give profit as expected and the liquidity becomes low.

Hence, the correct answer is B) Liquidity.

A mother, aged 60, wishes to withdraw monies from her variable annuity to pay for her son's college education. Which statement is true regarding the taxation of the withdrawal?
A. The withdrawal is 100% taxable
B. Any amount withdrawn above the cost basis is taxable
C. Any amount withdrawn above the cost basis is taxable, and is subject to a 10% penalty tax
D. The withdrawal is not subject to tax

Answers

Answer:

Any amount withdrawn above the cost basis is taxable

Explanation:

This woman is above 59½ years at age 60. If she was least than 60, she would be owing a 10% penalty on the taxable amount of this withdrawal. But since she is above this age she has to pay income taxes on the whole taxable amount of the funds she withdrew. Variable annuities would never be taxed the money is withdrawn. Therefore option B is the best answer for This question.

E Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 44,000 units per month is as follows:

Per Unit
Direct materials $44.60
Direct labor $8.50
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $18.10
Variable selling & administrative expense $2.60
Fixed selling & administrative expense $12.00

The normal selling price of the product is $94.10 per unit. An order has been received from an overseas customer for 2,400 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.60 less per unit on this order than on normal sales.

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $80.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:_______

Answers

Answer:

financial advantage for accepting special order = $59,520

Explanation:

relevant production costs for special order (2,400 units):

direct materials $44.60

direct labor $8.50

variable manufacturing overhead $1.50

variable selling & administrative expense $1

total costs per unit = $55.60

total revenue from special order = 2,400 x $80.40 = $192,960

relevant costs associated to special order = 2,400 x $55.60 = ($133,440)

financial advantage for accepting special order = $59,520

An officer of a company has acquired shares of that issuer in the open market. If the officer wishes to sell the shares:

Answers

Answer: C. II and III

Explanation:

As the shares were acquired by the officer on the open market, they are considered Control Stock. Sale of Control Stock falls under the purview of Rule 144 of the SEC that governs the sale of restricted, unregistered, and control securities so a Form 144 will need to be filed with the Sec making III correct.

Furthermore, control stock are not subject to a holding period requirement so option II is correct as well. Option C is therefore the best answer.

​Canyon Canoe Company's Amber Zack Wilson are continuing their analysis of the company's position and believe the company will need to borrow $15,000 in order to expand operations. They consult Rivers Nation Bank and secure a 66 %, one-year note on September 1, 2019, with interest due at maturity. Additionally, the company hires an employee, John Vance, on September 1. John will receive a salary of $3,000 per month. Payroll deductions include federal income tax at 25 %, OASDI at 6.2 %, Medicare at 1.45 %, and monthly health insurance premium of $250. The company will incur matching FICA taxes, FUTA tax at 0.6 %, and SUTA tax at 5.4 %. Round calculations to two decimals. Omit explanations on journal entries.Requirements:
1. Record the issuance of the $15,000 note payable on September 1, 2019.
2. Record the employee payroll and employer payroll tax entries on September 30, 2019.
3. Record all payments related to September's payroll. Payments are made on October 15, 2019.
4. Record the entry to accrue interest due on the note at December 31, 2019.
5. Record the entry Canyon Canoe Company would make to record the payment to the bank on September 1, 2020.

Answers

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $15,000

          To Notes payable $15,000

(Being note payable is recorded)

2. Salaries expense Dr, $3,000

        To Federal income tax payable $750 (25% × $3,000)

        To Social security tax payable $186  (6.2% × $3000)

        To Medicare tax payable $43.50   (1.45% × $3,000)

         To Health insurance premium payable $250

         To Salaries payable $1770.50

(Being salaries expense is recorded)

Payroll tax expense Dr, 409.50

            To Social security tax payable $186 (6.2% × $3,000)

             To Medicare tax payable $43.5  (1.45% × $3,000)

             To FUTA tax payable $18 (0.6% × $3,000)

             To SUTA tax payable $162 (5.4% × $3,000)

(Being payroll tax expense is recorded)

3. Salaries payable Dr, $1,770.50

            To Cash $1,770.50

(Being cash paid is recorded)

Federal income tax payable Dr, $750

Social security tax payable Dr, $372

Medicare tax payable $87

Health insurance premium payable Dr, $250

FUTA tax payable Dr, $18

SUTA tax payable Dr, $162

                  To Cash $1,639

(Being cash paid is recorded)

4. Interest expense Dr, $300 ($15,000 × 6% × 4 ÷ 12)

              To Interest payable $300

(Being interest expense is recorded)

5. Note payable Dr, $15,000

    Interest payable Dr, $300

    Interest expense $600    ($15000 × 6% × 8 ÷ 12)

                    To Cash $15,900

(Being cash paid is recorded)

You take out a car loan for 13,381 dollars. If your loan has an annual interest rate of 8.86 percent, and you will make monthly payments for 5 years, how much of your first payment will go towards principal (go towards paying down the outstanding loan balance)?

Answers

Answer:

Principal paid in the first payment =$2,656.52

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  

We will use the following relationships:

Interest paid = Interest rate × loan balance

Principal paid = Monthly installment - Interest paid

Monthly installment  = Loan amount/Annuity factor

Annuity factor = (1- (1+r)^(-n))/r

r - annual interest rate

n- number of period = 12× 5 = 60

Monthly interest rate - 8.86/12 =0.738 %

Loan amount = 13,381

Annuity factor = (1 - (1.00738)^(-60) )/ 0.00738=48.336

Monthly interest payment = Loan amount/Annuity factor

                                         13,381/48.336=2,755.32

Interest due in the first month = interest rate × loan amount

                      =  0.738 %×  13,381 =98.796

Principal aid in the first year = Monthly installment - interest due 1st month

                      = 2,755.32 - 98.796 = 2,656.52

Principal paid in the first payment =$2,656.52

Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $510,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,900. Merchandise with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases

Answers

Answer:

The ending inventory by using the gross method is $243,011

Explanation:

Purchases = Net purchases + Freight inwards

Purchases = 491,111 + 8,900

Purchases = 500,011

When Net purchase = Gross Purchase - Purchase return - Discount

Net purchase = 510,000 - 3,700- 15,189

Net purchase = 491,111

Working

Discount = (Purchases - Purchase return) × Discount rate

Discount = (510,000 - 3,700) * 3%

Discount = 15,189

Ending inventory = Beginning inventory + Purchases− Cost of good sold

Ending inventory = (105,000 + 500,011) - 362,000

Ending inventory = $243,011

Thus, the ending inventory by using the gross method is $243,011.

2. At an oral auction for used car, half of all bidders have a value of $1,500 and half have a value of $1,900. What is the expected winning bid if there are three bidders

Answers

Answer:  $1,700

Explanation:

The expected winning bid is the weighted average of the 2 different bids.

Half of the bids are for $1,500 so weight of $1,500 is 0.5.

Half of the bids are for $1,900 so weight of $1,900 is 0.5.

Expected Winning bid = (1,500 * 0.5) + ( 1,900 * 0.5)

= 750 + 950

= $1,700

The goal of the __________ is to resolve any pending project-related issues, critique the overall effort of the project, and draw conclusions about how to improve the project management process for the future.

Answers

Answer: wrap-up

Explanation: since every project needs to end the wrap-up aims to resolve any pending project-related issues, critique the overall effort of the project, and draw conclusions about how to improve the project management process for the future. Doing this ensures that all stakeholders of the project are satisfied, and that all acceptance criteria for the project have been met. The wrap-up is simply the concluding action of the project.

What is your standard deviation of demand during lead time if your average lead time = 5 days, standard deviation of demand = 4, average demand is 12, and standard deviation of lead time is 1.2 days.

Answers

Answer:

4.47

Explanation:

The computation of the standard deviation of lead time is shown below:

= √lead time × standard deviation of demand

= √ 5 days × 4

= √20

= 4.47

We simply applied the above formula to determine the standard deviation of demand during lead time

Hence, all the other items would be ignored

The following is a partial trial balance for the Green Star Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 1,300,000 Interest revenue 30,000 Gain on sale of investments 50,000 Cost of goods sold 720,000 Selling expenses 160,000 General and administrative expenses 75,000 Interest expense 40,000 Income tax expense 130,000 Required: Prepare a multiple-step income statement for 2018.

Answers

Answer:

Multiple-step income statement for 2018.

Sales revenue                                                                  1,300,000

Cost of goods sold                                                           (720,000)

Gross Profit                                                                        580,000

Less Operating Expenses :

Gain on sale of investments                          50,000

Selling expenses                                          (160,000)

General and administrative expenses         (75,000)      (185,000)

Operating Profit                                                                  395,000

Less Non - Operating Expenses :

Interest revenue                                            30,000

Interest expense                                          (40,000)

Income tax expense                                   (130,000)      (140,000)

Net Income / (Loss)                                                           225,000

Explanation:

The Multi-step Income statement shows separately Profit derived from Primary Activities (Operating Profit) of the company against profit and the profit derived from the Secondary Activities (Net Profit) of the company.

Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2021. At January 1, CSI reported an inventory of $153,000. Sales from January 1, 2021, to August 5, 2021, totaled $432,000 and purchases totaled $175,500 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be:

Answers

Answer:

58,500

Explanation:

Given the information above, the formula for Inventory loss is

Inventory loss = Opening inventory + Purchases - Cost of sales

Where,

Cost of sales = $432,000 × 100 ÷ 160

=$270,000

Since opening inventory = $153,000

Purchases = $175,500

Therefore,

Inventory loss = $153,000 + $175,500 - $270,000

= $58,500

Required information [The following information applies to the questions displayed below.) Fiddle Corp. has been an S corporation since inception. Charlie has a tax basis of $18,750 in his Fiddle stock. In 2019, Charlie was allocated $23,750 of ordinary income from Fiddle. What is the amount and character of gain Charlie recognizes from end-of-the-year distributions in each of the following alternative scenarios, and what is his stock basis following each distribution? (Leave no answer blank. Enter zero if applicable. If the answer is "O", select "None"). Fiddle distributes $47.500 to Charlie.

Answers

Answer and Explanation:

According to the given question, the computation is shown below:-

a. The amount and character of gain Charlie recognizes from end-of-the-year distributions is

Particulars                       Amount

Tax basis a                      $18,750

Ordinary income b          $23,750

Stock basis                       $42,500

(c = a + b)

Distribution                     $47,500   ($42,500 + $5,000)

b. The stock basis is

Particulars                       Amount     Character

Gain                                $5,000       Capital   ($23,750 - $18,750)

Stock basis                      -                  None

Use your own language to explain that short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve.

Answers

Answer:

See the answer and explanation below

Explanation:

A price-taking firm is a firm in a perfectly competitive market where all firms are price takers. That is, no firm in a perfectly competitive can influence the price as only the market determines the price.

The short run supply curve for a price-taking firm refers to the short marginal cost (SMC) curve at and above the shutdown point.

Note: See the attached graph for the shut run supply curve. Also note that point E in the attached graph is the shutdown point.

The shutdown point is the point where the short run marginal cost (SMC) is equal to the average variable cost (AVC) (i.e. where MC = AVC = Shutdown point).

This indicates that the short-run supply curve for a price-taking firm is the part of the SMC curve that lies above AVC curve.

The part of the SMC curve that lies below the AVC or the shutdown point is not part of the short run supply curve of a price-taking firm, because the firm is not engaging in any production at that point.

Therefore, the short run supply curve of a price-taking firm is the increasing portion of the short run MC curve above the shutdown point.

This follows the law of supply which states that more quantity of the product of a firm will be supplied when there is a rise in the market price.

In summary, the short run supply curve of a price-taking firm is the positively-sloped portion of the short-run marginal cost curve

g Founder of Vanguard, Jack Bogle, believes that all investors should buy stock indices. Group of answer choices He believes in strong form market efficiency. He believes in semi-strong form market efficiency. He believes in weak form market efficiency. He believes markets are not efficient.

Answers

Answer:

The answer is B. He believes in semi-strong form market efficiency.

Explanation:

Whether Jack Bogle believed in the efficient market hypothesis was controversial. One of his famous saying on the issue: "Whatever the consensus on the Efficient Market Hypothesis, I know of no serious academic, professional money manager, trained security analyst, or intelligent individual investor who would disagree with the thrust of EMH: The stock market itself is a demanding taskmaster. It sets a high hurdle that few investors can leap.” He obviously believed although someone still doubts on the truth of the hypothesis, the market usually reflects the right value at the end.

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