The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year:
Depreciation Expense $10,000
Insurance Expense 9,000
Miscellaneous Expense 8,150
Rent Expense 60,000
Service Revenue 634,900
Supplies Expense 4,100
Utilities Expense 44,700
Wages Expense 548,200
Requierd:
Prepare an income statement.
Answer and Explanation:
The preparation of the income statement is presented below:
Service revenue $634,900
Less:
Depreciation Expense $10,000
Insurance Expense 9,000
Miscellaneous Expense 8,150
Rent Expense 60,000
Supplies Expense 4,100
Utilities Expense 44,700
Wages Expense 548,200
Net loss -$49,250
Joe is currently selling 873 hamburgers per month at $5 per hamburger for total monthly sales of $4,365. The restaurant manager feels that a $1,000 monthly advertising budget would increase monthly sales by $3,000 to a total of 1,473 hamburgers. Should Joe add advertising
Answer:
Yes
Explanation:
Yes, as long as Joe is able to recover the money that he has spent on advertising and still increase his profit, then he should advertise. In this scenario, he wants to spend a fixed $1000 monthly on ads. If these ads generate an increase monthly sales of $3,000 as expected, then this means that Joe's restaurant will increase their total profits by $2,000 after recovering what they spent on the ads. This is what ads are for.
Ideally, a profit oriented firm desires to denominate bonds in a currency that: ________.
a. Exhibits a low interest rate and is expected to depreciate.
b. Exhibits a high interest rate and is expected to depreciate.
c. Exhibits a low interest rate and is expected to appreciate.
d. Exhibits a high interest rate and is expected to appreciate.
Answer: exhibits a low interest rate and is expected to depreciate.
Explanation:
Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.
A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.
A natural monopoly arises whenA. a single firm aggressively forces other competitors to exit and industry.B. a single firm has a monopoly over natural resources.C. two firms merge into a single firm in order to capture more of the market.D. a single firm can produce more cheaply than multiple firms due to a downward-sloping average total cost curve.
Answer:
D
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Characteristics of natural monopolies
they have a large fixed cost The firms have a low marginal costThey occur naturally through the free market. It does not occur by government regulation or any other forceStock Rit Rmt ai Beta
A 10.6 15Â Â Â 0 0.8
Z Â 9.8 8 0 1.1
Rit = return for stock i during period t
Rmt = return for the aggregate market during period t
What is the abnormal rate of return for Stock Z during period t using only the aggregate market return (ignore differential systematic risk)?
a. 3.40
b. 4.40
c. 1.80
d. -4.40
E.
-1.70
Answer:
1.8 option c
Explanation:
this question has a very simple solution
the following definitions
Rit = return for stock i during period t
Rmt = return for the aggregate market during period t
The abnormal rate of return for stock z is = Rit - Rmt
Rit = 9.8
Rmt = 8
9.8 - 8 = 1.8
therefore the abnormal rte of return for stock z is = 1.8, which is option c
the common sources of secondary data in tourism research are
Explanation:
Secondary data sources, such as industry statistics, surveys/censuses, and big data indicators, cover a wide array of topics that can be leveraged in tourism research..
pls Mark brainliest if it was helpfull
To select a strategy in a two-person, zero-sum game, Player A follows a ________ procedure and Player B follows a ________ procedure.
Answer:
None of these is correct
Explanation:
None of these is correct. The correct answer is that; it should be minimax
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are indirect materials, $50,000; Indirect labor, $23,000; factory rent $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cahs in April.
Costs of the three jobs worked on in April follow:
Job 307 Job 307 Job 308
Balances on March 31
Direct materials $29,000 $35,000
Direct labor 20,000 18,000
Applied overhead 10,000 9,000
Costs during April
Direct materials 135,000 220,000 $100,000
Direct labor 85,000 150,000 105,000
Applied overhead
Status on April 30 Finished (sold) Finished (unsold) In process
a. Materials purchases on credit
b. Direct materials used in production
c. Direct labor paid and assigned to Factory Overhead
d. Indirect labor paid and assigned to Factory Overhead
e. Overhead costs applied to Work In Process Inventory
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory
h. Cost of goods sold for Job 306
i. Revenue from the sale of Job 306
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account, (the amount is not material).
Required:
Prepare journal entries for the month of April to record the above transactions.
Answer:
Marcelino Co.
Journal Entries:
Debit Raw materials $500,000
Credit Accounts Payable $500,000
To record the purchase of raw materials on credit.
Debit Factory payroll $363,000
Credit Cash $363,000
To record payment for factory payroll.
Debit Work in Process:
Job 307 $135,000
Job 307 $220,000
Job 308 $100,000
Credit Raw materials $455,000
To record direct materials used in production
Debit Work in Process:
Job 307 $42,500
Job 307 $75,000
Job 308 $52,500
Credit Factory overhead $170,000
To record overhead applied.
Debit Factory overhead $175,000
Credit Raw materials $50,000
Factory payroll $23,000
Factory rent $32,000
Factory utilities $19,000
Factory equipment depreciation $51,000
To record actual factory overhead costs.
Debit Finished Goods Inventory $828,500
Credit Work in Process:
Job 306 $321,500
Job 307 $507,000
To record the cost of finished goods transferred.
Debit Cost of goods sold $321,500
Credit Finished goods inventory $321,500
To record the cost of goods sold.
Debit Cash $635,000
Credit Sales Revenue $635,000
To record the receipt of cash for sales.
Debit Cost of Goods Sold $5,000
Credit Factory overhead $5,000
To record underapplied overhead.
Explanation:
a) Data and Calculations:
Raw materials inventory, March 31 = $80,000
Raw materials $500,000 Accounts Payable $500,000
Factory payroll $363,000 Cash $363,000
Overhead costs incurred in April :
Indirect materials $50,000 Raw materials $50,000
Indirect labor $23,000 Factory payroll $23,000
Factory rent $32,000 Cash $32,000
Factory utilities $19,000 Cash $19,000
Factory equipment depreciation $51,000 Accumulated depreciation $51,000
Total overhead incurred = $175,000
Predetermined overhead rate = 50% of direct labor cost
Sale of Job 306 for cash = $635,000
Job 306 Job 307 Job 308 Total
Balances on March 31
Direct materials $29,000 $35,000 $64,000
Direct labor 20,000 18,000 38,000
Applied overhead 10,000 9,000 19,000
Costs during April
Direct materials 135,000 220,000 $100,000 $455,000
Direct labor 85,000 150,000 105,000 340,000
Applied overhead 42,500 75,000 52,500 170,000
Total costs $321,500 $507,000 $257,500 $1,086,000
Status on April 30 Finished (sold) Finished (unsold) In process
At December 31, 2020, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2020.
Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
Pace Company has the following plan information available for 2019: Month Total Sales January $166,000 February $150,000 March $136,000 April $182,000 May $152,000 June $135,000 July $110,000 The normal pattern of cash collections on sales is 10% in the month of the sale, 50% in the month following the sale and 40% in the second month following the sale. The expected total cash collections for May should be
Answer:
the expected total cash collections for May is $160,600
Explanation:
The computation of the expected total cash collections for May is given below
= 10% of $152,000 + 50% of $182,000 + 40% of $136,000
= $15,200 + $91,000 + $54,400
= $160,600
Hence, the expected total cash collections for May is $160,600
The same should be considered
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 240,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 45,000 Depreciation 28,500 Maintenance 30,000 173,500 Net operating income $ 66,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
Contrary to popular opinion, CEOs of major U.S. companies come from a wide variety of private universities and state universities, not just a handful of well-publicized MBA programs. What does this fact tell you about sources of power and organizational politics
Answer: Power is earned
Explanation:
The fact that so many influential CEOs come from such a wide array of universities shows that they had to work to get to where they are today and were not simply handed positions because of the university they came from.
It shows that if one wants to succeed in business, their alma mater does not matter. They could be from an Ivy league college or from a state college in Mississippi, what matters is their determination to work hard and gain a good track record that will take them all the way to the top.
In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at:
Answer:
The correct answer is:
(1) $15,054
(2) $12,990
Explanation:
The required table is not given in the question. Please find below the attachment of the table.
Given:
Future value,
= $30,000
If discounting rate is 9%, the present value will be:
= [tex]Future \ value\times PV \ factor(9 \ percent, 8 \ years)[/tex]
= [tex]30000\times (\frac{1}{1.09} )^8[/tex]
= [tex]30000\times 0.5018[/tex]
= [tex]15,054[/tex] ($)
If discounting rate is 11%, the present value will be:
= [tex]Future \ value\times PV \ factor(11 \ percent, 8 \ years)[/tex]
= [tex]30000\times (\frac{1}{1.11} )^6[/tex]
= [tex]30000\times 0.433[/tex]
= [tex]12,990[/tex] ($)
Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars
Required:
a. Draw a $2 payoff matrix describing the decisions the athletes face.
b. For what X is taking the drug the Nash equilibrium?
c. Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain.
Answer:
a) attached below.
b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) will make the athletes feel better because the value their payoff will increase
Explanation:
a) 2 * 2 payoff matrix describing the decision faced by the athletes
attached below
when both players take the drug the payoff for each player = $5000 - x
when neither player takes the drug the payoff for each player = $5000
When only one player takes the drug his payoff = $10000 - x
b) If we consider the value of $x to be involved in the Nash equilibrium then
; $5000 - $x > 0 becomes the best response
hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )
will make the athletes feel better because the value their payoff will increase
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
Promotional expenses at the maturity stage of the product life cycle are often designed to Multiple Choice maintain market share. create a sense of nostalgia. attract more price-conscious consumers. thwart the growing number of competitors that have entered the market. convince those who have abandoned the brand to try it again.
Answer:
maintain market share.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Maturity is the stage in which product experiences a peak in sales growth and then eventually slows as the product reaches more customers, and lastly price competition is fierce.
Promotional expenses that are incurred at the maturity stage of the product life cycle are often designed by marketers to maintain market share. This is usually achieved through further product differentiation and finding new buyers (consumers).
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories. These categories are: direct and indirect materials. direct costs and indirect materials. indirect materials and conversion costs. direct materials and conversion costs.
Answer:
direct materials and conversion costs.
Explanation:
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories which are direct materials and conversion costs.
This is because Automation does conversion on the Direct Materials which are visible and can be traced to product being manufactured.
In 2019, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2020. What is Teller’s break-even point in units for 2020? g
Answer:
Break-even point in units= 1,500
Explanation:
Giving the following information:
Selling price= $600
Unitary variable cost= $420
Fixed cost= $270,000
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 270,000 / (600 - 420)
Break-even point in units= 1,500
Identify the simplifying assumptions usually made in net present value analysis.
a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
a
c
Explanation:
net present value analysis is a capital budgeting method
It is used to analyse the profitability of an investment
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $2.5 billion
Explanation:
You need to first calculate the multiplier.
The multiplier is the amount that shows the effect of an increase in government spending on the aggregate demand of a country.
It is calculated as:
= 1 / ( 1 - MPC)
= 1 / ( 1 - 0.9)
= 10
Increase in aggregate demand = Government spending * multiplier
25 billion = G * 10
G = 25 billion / 10
= $2.5 billion
Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities, but not overloaded.
a. True
b. False
Answer:
True
Explanation:
Critical-Chain
This was introduced or originated by Eli Goldratt in 1997. Its aim is to challenges conventional project management approaches and absolute dependence on TOC principles. The idea of what to change or eliminated is the largely rooted behaviors that is common with the traditional project management practices. It is very multitasking anf it is the longest string of reliance that occur on the project.
Critical- Chain Approach
This approach simply covers project network as it ca be limited by both resource and technical reliance/dependencies. each type of limitations can create task reliance.
The Summary of Critical Chain Approach
1.) use Aggressive but Possible Times (ABPT) for task durations
2.) identify the critical chain by accounting for resource dependencies
3.) use buffer management to track project progress etc.
Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. This statement is:
Answer:
True
Explanation:
It is True that Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less.
Jammer Company uses a weighted average perpetual inventory system and reports the following:
August 2 Purchase 24 units at $18.50 per unit. August 18 Purchase 26 units at $20.00 per unit. August 29 Sale 48 units. August 31 Purchase 29 units at $21.50 per unit.
What is the per-unit value of ending inventory on August 31? (Round your per unit answers to 2 decimal places.)
Answer: $21.36
Explanation:
Weighted average inventory system works by taking the average of the inventory prices on the different days.
Price on August 29 which is date of sale:
= {(Units purchased on August 2 * Unit cost on August 2) + ( Units purchased on August 18 * Unit cost on August 18)] / (Units purchased on August 2 + Units purchased on August 18)
= [ ( 24 * 18.50) + (26 * 20) ] / (24 + 26)
= $19.28 per unit
48 units were sold so the number of units left are:
= 24 + 26 - 48
= 2 units
Price on August 31
= [ (Units remaining on August 29 * Unit cost on August 29) + ( Units purchased on August 31 * Unit cost on August 31)] / (Units remaining on August 29 + Units purchased on August 31)
= [ (2 * 19.28) + (29 * 21.50) ] / ( 2 + 29)
= $21.36
what is the primary benefit people receive in exchange for paying premiums to an insurance company
Answer:
The insurance company will pay for covered expenses
With premium rates from insurance companies, the overall protection is much more guaranteed than a regular, and perhaps the insurance will cover more than regular insurance.
A benefit that people receive in exchange for paying premiums is that insurance company B.will pay for covered expenses.
What is insurance?The insurance can be regarded as a process of insuring one's property or life in case of danger or any future problems.
The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
Therefore, option B is correct because, when people pay their premiums, the company will be available to covered expenses.
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When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in its self-darkening windshield. The type of information the marketing team was using is referred to as Multiple Choice surveys. focus groups. primary data. secondary data.
Answer:
secondary data.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Secondary market research can be defined as a method designed to determine the demographics of a particular target market.
A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.
In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.
In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.
The price elasticity of demand for a good is likely to be elastic __________.
A. the budget share spent on the good.
B. the number of close substitutes for the good.
C. the available time during which consumers can adjust.
D. all of the above.
Answer:
The price elasticity of demand for a good is likely to be elastic :
A. the greater the proportion of budget share spent on the good.
B. the greater the number of close substitutes for the good.
C. the longer the available time during which consumers can adjust.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Price is more elastic in the long run than in the short run because consumers have more time to search for suitable alternatives
The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product
the greater the proportion of budget share spent on the good, the more elastic the demand for the good
On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 6%. The contract calls for four rent payments of $14,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $98,000 and were expected to have a useful life of seven years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
Answer:
Nath-Langstrom Services, Inc.
And
ComputerWorld Leasing
1. Journal entries by Nath-Langstrom Services for the first year of the lease:
Jan. 1, 2021:
Debit Right of Use Asset $52,039.38
Credit Lease Liability $52,039.38
To record the Right of Use Asset.
June 30, 2021:
Debit Interest Expense $1,561.18
Debit Lease Liability $12,438.82
Credit Cash $14,000
To record the semiannual payment of the lease liability.
Debit Lease Amortization Expense $13,010
Credit Accumulated Amortization $13,010
To record amortize the Right of Use Asset.
December 31, 2021:
Debit Interest Expense $1,188.02
Debit Lease Liability $12,811.98
Credit Cash $14,000
To record the semiannual payment of the lease liability.
Debit Lease Amortization Expense $13,010
Credit Accumulated Amortization $13,010
To amortize the Right of Use Asset.
2. Journal Entries by ComputerWorld Leasing for the first year of the lease:
Jan. 1. 2021:
Debit Lease Receivable $52,039.38
Credit Leased Assets $52,039.38
To record the lease receivable.
June 30, 2021:
Debit Cash $14,000
Credit Interest Income $1,561.18
Credit Lease Receivable $12,438.82
To record the receipt of the first lease payment.
Debit Depreciation Expense $7,000
Credit Accumulated Depreciation $7,000
To depreciate the leased asset.
December 31, 2021:
Debit Cash $14,000
Credit Interest Income $1,188.02
Credit Lease Receivable $12,811.98
To record the receipt of lease payment.
Debit Depreciation Expense $7,000
Credit Accumulated Depreciation $7,000
To depreciation the leased asset.
Explanation:
a) Data and Calculations:
Annual interest rate = 6%
Semiannual rental payment = $14,000
Period of lease = 2 years
Number of lease payments = 4
Cost of computers to ComputerWorld = $98,000
Estimated useful life of computers = 7 years
Residual value = $0
N (# of periods) 4
I/Y (Interest per year) 6
PMT (Periodic Payment) 14000
FV (Future Value) 0
Results
PV = $52,039.38
Sum of all periodic payments $56,000.00
Total Interest $3,960.62
Schedule
Period PV PMT Interest FV
1 $52,039.38 $14,000.00 $1,561.18 $39,600.56
2 $39,600.56 $14,000.00 $1,188.02 $26,788.58
Year #1 end
3 $26,788.58 $14,000.00 $803.66 $13,592.23
4 $13,592.23 $14,000.00 $407.77 $0.00
We must take into account the provisions of the lease contract and the relevant accounting guidelines for operating leases in order to create the journal entries for Nath-Langstrom Services, Inc. (the lessee) and ComputerWorld Leasing (the lessor) for the first year of the lease.
Given
Cost = $98,000
semiannually = $7,000 = $14,000/ 2
Required to pass Journal entries in the books of Nath-Langstrom Services, Inc. and ComputerWorld Leasing
1. Journal entries recorded by Nath-Langstrom Services, Inc.:
On January 1, 2021 (lease inception):
Lease Right-of-Use Asset $98,000
Lease Liability $98,000
On June 30, 2021 (first semiannual payment):
Lease Liability $7,000
Cash $7,000
On December 31, 2021 (second semiannual payment):
Lease Liability $7,000
Cash $7,000
2. Journal entries recorded by ComputerWorld Leasing (the lessor):
On January 1, 2021 (lease inception):
Lease Receivable $98,000
Equipment $98,000
On June 30, 2021 (first semiannual payment):
Cash $7,000
Lease Receivable $7,000
On December 31, 2021 (second semiannual payment):
Cash $7,000
Lease Receivable $7,000
Therefore, the following are the required journal entries in the books of Nath-Langstrom Services, Inc. and ComputerWorld Leasing.
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Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2016, the end of the current year, the accountant for Good Note Company prepared an unadjusted trial balance and an adjusted trial balance.Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.Adjusted Trial BalanceGood Note CompanyADJUSTED TRIAL BALANCENovember 30, 2016 ACCOUNT TITLE DEBIT CREDIT1 Cash 38,250.002 Accounts Receivable 89,500.003 Supplies 2,400.004 Prepaid Insurance 3,850.00 5 Equipment 290,450.006 Accumulated Depreciation-Equipment 106,100.007 Automobiles 129,500.008 Accumulated Depreciation-Automobiles 62,050.009 Accounts Payable 26,130.0010 Salaries Payable 8,100.0011 Unearned Service Fees 9,000.0012 Common Stock 100,000.0013 Retained Earnings 224,020.0014 Dividends 75,000.0015 Service Fees Earned 742,800.0016 Salaries Expense 525,000.0017 Rent Expense 54,000.0018 Supplies Expense 8,850.0019 Depreciation Expense-Equipment 11,600.0020 Depreciation Expense-Automobiles 7,300.0021 Utilities Expense 14,100.0022 Taxes Expense 8,175.0023 Insurance Expense 10,400.0024 Miscellaneous Expense 9,825.0025 Totals 1,278,200.00 1,278,200.00Chart of AccountsCHART OF ACCOUNTSGood Note CompanyGeneral Ledger ASSETS11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance16 Equipment17 Accumulated Depreciation-Equipment18 Automobiles19 Accumulated Depreciation-Automobiles LIABILITIES21 Accounts Payable22 Salaries Payable23 Unearned Service Fees EQUITY31 Common Stock32 Retained Earnings33 Dividends REVENUE41 Service Fees Earned EXPENSES51 Salaries Expense52 Rent Expense53 Supplies Expense54 Depreciation Expense-Equipment55 Depreciation Expense-Automobiles56 Utilities Expense57 Taxes Expense58 Insurance Expense59 Miscellaneous ExpenseJournalShaded cells have feedback.Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Good Note Company
Journal Entries:
Debit 23 Unearned Service Fees $9,000
Credit 41 Service Fees Earned $9,000
To record earned fees.
Debit 51 Salaries Expense $8,100
Credit 22 Salaries Payable $8,100
To record accrued salaries.
Debit 53 Supplies Expense $8,850
Credit 13 Supplies $8,850
To record used supplies.
Debit 54 Depreciation Expense-Equipment 11,600
Credit 17 Accumulated Depreciation-Equipment $11,600
To record depreciation expense for the period.
Debit 55 Depreciation Expense-Automobiles 7,300
Credit 19 Accumulated Depreciation-Automobiles $7,300
To record depreciation expense for the period.
Debit 56 Utilities Expense $1,200
Credit 21 Accounts Payable $1,200
To record accrued utilities expense.
Debit 58 Insurance Expense $10,400
Credit 14 Prepaid Insurance $10,400
To record expired insurance.
Explanation:
a) Data and Calculations:
Good Note Company
UNADJUSTED TRIAL BALANCE
November 30, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 38,250
2 Accounts Receivable 89,500
3 Supplies 11,250
4 Prepaid Insurance 14,250
5 Equipment 290,450
6 Accumulated Depreciation-Equipment 94,500
7 Automobiles 129,500
8 Accumulated Depreciation-Automobiles 54,750
9 Accounts Payable 24,930
10 Salaries Payable
11 Unearned Service Fees 18,000
12 Common Stock 100,000
13 Retained Earnings 224,020
14 Dividends 75,000
15 Service Fees Earned 733,800
16 Salaries Expense 516,900
17 Rent Expense 54,000
18 Supplies Expense
19 Depreciation Expense-Equipment
20 Depreciation Expense-Automobiles
21 Utilities Expense 12,900
22 Taxes Expense 8,175
23 Insurance Expense
24 Miscellaneous Expense 9,825
25 Totals 1,250,000 1,250,000
Good Note Company
ADJUSTED TRIAL BALANCE
November 30, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 38,250
2 Accounts Receivable 89,500
3 Supplies 2,400
4 Prepaid Insurance 3,850
5 Equipment 290,450
6 Accumulated Depreciation-Equipment 106,100
7 Automobiles 129,500
8 Accumulated Depreciation-Automobiles 62,050
9 Accounts Payable 26,130
10 Salaries Payable 8,100
11 Unearned Service Fees 9,000
12 Common Stock 100,000
13 Retained Earnings 224,020
14 Dividends 75,000
15 Service Fees Earned 742,800
16 Salaries Expense 525,000
17 Rent Expense 54,000
18 Supplies Expense 8,850
19 Depreciation Expense-Equipment 11,600
20 Depreciation Expense-Automobiles 7,300
21 Utilities Expense 14,100
22 Taxes Expense 8,175
23 Insurance Expense 10,400
24 Miscellaneous Expense 9,825
25 Totals 1,278,200.00 1,278,200
Analysis of Adjustments:
23 Unearned Service Fees $9,000 41 Service Fees Earned $9,000
51 Salaries Expense $8,100 22 Salaries Payable $8,100
53 Supplies Expense $8,850 13 Supplies $8,850
54 Depreciation Expense-Equipment 11,600 17 Accumulated Depreciation-Equipment $11,600
55 Depreciation Expense-Automobiles 7,300 19 Accumulated Depreciation-Automobiles $7,300
56 Utilities Expense $1,200 21 Accounts Payable $1,200
58 Insurance Expense $10,400 14 Prepaid Insurance $10,400
If the amount of beachfront land in Malibu supplied to the market remains the same even when the price of beachfront land in Malibu increases, the:_________.
a. demand for beachfront land in malibu must be perfectly inelastic,
b. supply of beachfront land in Malibu must be perfectly elastic.
c. demand for beachfront land in Malibu must be perfectly elastic.
d. supply of beachfront land in Malibu must be perfectly inelastic.
Answer:
D
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Supply is perfectly inelastic if a small change in price has no effect on quantity supplied
describe five ways in which contract management might adds value after the contract award stage of the sourcing process.
Answer:
The five ways for contract management are:
1 - how buyer and supplier work after contract has been awarded.
2 - Key decisions made.
3 - Risk of misunderstanding and disagreement.
4 - Identify opportunities and improve performance.
5 - Performance evaluation against KPIs.
Explanation:
Contract management is essential for any business to succeed. There are five ways in which contract management will add value after contract award stage. Usually value addition is achieved by the response of buyer and seller towards the services after the contract has been awarded. There should be right individuals involved in decision making process. The performance should be evaluated against the KPI mentioned in the contract. If both supplier and buyer work with mutual understanding there is very less chance for disagreement and value will be added to the contract performance.
