You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $160,000, and it would cost another $40,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $80,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require a $7,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $52,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.
Required:
a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
b. What are the project's annual cash flows in Years 1, 2, and 3?
Answers
Answer:
a.
$207,000
b.
Year 1: $57,600
Year 2: $67,200
Year 3: $30,000
Explanation:
a.
Calculate the initial outlay of the project at year 0 as follow
Initial Outlay = Base Price + Modification cost + Working Capital requirement
Initial Outlay = $160,000 + $40,000 + $7,000
Initial Outlay = $207,000
b.
The working for the calculation of the cash flow is attached with this answer, please refer to the attached file.
Related Questions
Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
b. Give families cash payments on the condition that their children show up for school and medical exams.
c. Increase taxes on income from savings.
d. Protect property rights and enforce contracts.
Answers
Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
East Valve Distributors distributes industrial valves and control devices. The Eastern control device has an annual demand of 9,375 units and sells for $100 per unit. The cost of ordering is $40 per order and the average carrying cost per unit per year is $0.75. Determine the economic order quantity.
Answers
Answer:
1000
Explanation:
Given:
Annual DEMAND, D = 9375
Holding cost, H = 0.75
Cost per order, S = 40
The Economic order quantity :
EOQ = √[(2 * D * S) / H]
EOQ = √[(2 * 9375 * 40) / 0.75]
EOQ = √[(750000) / 0.75]
EOQ = √1000000
EOQ = 1000
The prepaid insurance account had a beginning balance of $8,540 and was debited for $530 for premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $6,010.
Answers
Answer: See explanation
Explanation:
The adjusting entry required at the end of the year will be illustrated below:
Dr Insurance expense $3060
Cr Prepaid insurance $3060
Working:
Opening prepaid insurance = $8540
Add: Insurance premium = $530
Less: Unexpired insurance premium = $6010
Insurance expense = $3060
Journalize the entries to record the following transactions for Zentric Corporation. Refer to the Chart of Accounts for exact wording of account titles. Jan. 22 Issued for cash 180,000 shares of no-par common stock at $4. Feb. 14 Issued at par value 44,000 shares of preferred 2% stock, $55 par for cash. Aug. 30 Issued for cash 9,000 shares of preferred 2% stock, $55 par at $60.
Answers
Answer:
Jan 22
Dr Cash $720,000
Cr Common stock $720,000
Feb 14
Dr Cash $2,420,000
Cr Preferred stock $2,420,000
30
Dr Cash $540,000
Cr Preferred stock $495,000
Cr Paid in capital in excess of par-Preferred stock $45,000
Explanation:
Preparation of the journal entries
Jan 22
Dr Cash $720,000
Cr Common stock $720,000
(180,000 shares * $4)
Feb 14
Dr Cash $2,420,000
Cr Preferred stock $2,420,000
(44,000 shares * $55)
30
Dr Cash $540,000
(9,000 shares * $60)
Cr Preferred stock $495,000
(9,000 shares * $55)
Cr Paid in capital in excess of par-Preferred stock $45,000
[9,000 shares *($60- $55) ]
You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stock account in real dollars and $400 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 11 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 9 percent. The returns are stated in nominal terms. The inflation rate over this period is expected to be 4 percent.
How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the nominal dollar amount of your last withdrawal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer:
Amount that can be withdrawn each month:
$6,342.06
Nominal dollar amount of last withdrawal:
$54,835.61
Explanation:
These look to be the correct answers, let me know if you would like for me to show my work!
California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often all over the country. Demonstrate the effect of these events on the equilibrium price and quantity of wine.
Answers
Answer:
As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve. the quantity supplied of wine would reduce and price would increase
as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase
taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase
Explanation:
You are the director of health information services in a major medical center that maintains both a psychiatric unit and a substance abuse unit in addition to general medical and surgical units. Your facility plans to join a computer network with fifteen hospitals throughout the state, which will allow online access to laboratory data, regardless of which facility performed the lab work. None of the other fifteen facilities offer psychiatric or substance abuse treatment.
Required:
Identify and discuss the confidentiality issues present with such a network in the light of the statutory, regulatory, and accrediting requirements governing patients treated in these units.
Answers
Answer:
See the explanation below.
Explanation:
The following are some of the confidentiality concerns that may develop as a result of establishing a network connecting the databases of 16 hospitals:
1. The regulation mandates that individuals have the option of opting out of the facility directory or requesting that their health information not be utilized for any other purpose.
2. If a network is constructed, the restriction will be broken since frequent facility reporting would be easily accessible in other facilities, and preserving the information left will be difficult to manage if patients refuse to supply details.
3. Because data would be open and available to a bigger audience, the minimum criterion will be hard to sustain.
4. Establishing a network hospital will violate the 1974 Privacy Act, which places restrictions on the transmission of personal information to third parties.
5. Establishes use and disclosure criteria that set a baseline for keeping the amount of data used or disclosed to the "bare minimum" required to achieve the intended aim.
6. Patents tested, diagnosed, or treated for alcohol and drug misuse, sexually transmitted infections, or mental health disorders may be subject to additional privacy obligations.
7. Creating a network and sharing information with hospitals that do not have such treatment options entails disclosing highly personal information to those who are unaware of some of the most vulnerable patients.
8. Patients who are being treated for such an illness are afforded a high level of seclusion so that their social lives are not disrupted.
The identification about the confidentiality issues present with such a network of databases of sixteen hospitals is:
There is the issue of regulation where the people have an option to decide the hospital does not use their information for any other purposeThere is always the issue of patients refusing to give out their details, or incomplete detailsIt would be difficult to keep track of the information without a centralised databaseThere would be a violation of the 1974 Privacy Act if a hospital decides to set up a network containing patient information.
According to the given question, we are asked to show and identify the confidentiality issues which are present with such a network of databases of sixteen hospitals.
As a result of this, we can see that a hospital database would be useful so that the hospital workers can access medical records and other related information about patients and can be helpful in diagnosis, treatment, etc.
However, there are some issues which can arise as a result of confidentiality issues which has to do with statutory laws and regulation, etc.
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33. ĐỘ CO GIÃN CỦA CẦU Khi một mặt hàng được
định giá p đô-la mỗi đơn vị, cầu của người tiêu
dùng là q đơn vị, trong đó và q liên hệ với nhau
bởi phương trình q+ 3pq = 22.
a. Tính độ co giãn của cầu theo giá đối với mặt
hàng này.
b. Với đơn giá là $3, cầu là co giãn, không co giãn
hay co giãn đơn vị?
Answers
Answer:
yyyyyyyyyyyuuuuuuuuu
Select the true statement about the Restatement of the Law of Contracts.
a. It is a valuable resource for judges to consult, but it is not formal law.
b. It is the primary source of law for contract cases involving the sale of goods.
c. It must be renewed by Congress every ten years.
d. It completely overturned the contract law that had developed in the common law courtroom.
Answers
Answer:
The TRUE statement about the Restatement of the Law of Contracts is:
a. It is a valuable resource for judges to consult, but it is not formal law.
Explanation:
The Restatement of the Law of Contracts are treatises that clarify the general principles of contract common law, to help judges and lawyers in their judgments. Though it is one of the best-recognized and frequently cited legal treatises in all of American jurisprudence, it remains secondary sources of law. With the cooperation of judges, legal professors, and other legal experts, it is written and published by the American Law Institute (ALI).
People use money as a store of value when they: A. hold money to transfer purchasing power into the future. B. use money as a measure of economic transactions. C. use money to buy goods and services. D. hold money to gain power and esteem.
Answers
Answer:
A. hold money to transfer purchasing power into the future.
Explanation:
People use money as a store of value when they hold money to transfer purchasing power into the future.
If x follows a normal distribution with a mean of 10 and
standard deviation of 3; find out the following
A) Find the value of x = xº such that P(x 5 xº) = 5%
B) Find the value of x = xº such that P(x 2 x°) = 1%
Answers
Answer:
The answer is below
Explanation:
The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:
[tex]z=\frac{x-\mu}{\sigma} \\\\where\ x=raw\ score, \mu=mean,\ \sigma=standard\ deviation[/tex]
a) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 1%
P(z < z⁰) = 99%
z⁰ = 2.33
z° = (x° - μ)/σ
2.33 = (x° - 10)/3
x⁰ = 16.99
b) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 10%
P(z < z⁰) = 90%
z⁰ = 1.28
z° = (x° - μ)/σ
1.28 = (x° - 10)/3
x⁰ = 13.84
c) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)
1 - P(z < z⁰) = 5%
P(z < z⁰) = 95%
z⁰ = 1.65
z° = (x° - μ)/σ
1.65 = (x° - 10)/3
x⁰ = 14.95
Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Select + for increase, - for decrease, or No Effect.
Transaction Total Assest Total Liabilities Total stockholders' Equity
Issue common stock
Issue preferred stock
Purchase treasury stock
Sale of treasury stock
Declare cash dividend
Pay cash dividend
100% stock dividend
2-for-1 stock split
Answers
Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Assets increase $4,500 and liabilities decrease $4,500. Liabilities decrease $4,500 and assets increase $4,500. Equity decreases $4,500 and liabilities increase $4,500. Assets increase $4,500 and liabilities increase $4,500.
Answers
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
Based on the information given in the question, since the company buys an equipment which is an asset to the company, then there will be an increase in the assets by $4500.
Also, in thus case, the equipment was gotten on credit which is a liability. Therefore, the liabilities will increase by $4500 as well.
If a rise in incomes for both low-income and high-income workers is higher for the high- income workers, Group of answer choices then poverty will fall and inequality will rise. then poverty will rise and inequality will rise. then poverty will fall and inequality will fall. then poverty will rise and inequality will rise.
Answers
Answer:
Poverty will fall and inequality will rise.
Explanation:
Poverty will fall and inequality will rise is the correct answer because there is a rise in income for both category workers that is low income and higher income. Therefore, many low income workers may cross the poverty line due to an increase in pay so poverty will decrease. But, the income has increased for both the groups so higher income group worker will become richer so inequality will rise.
Chilly Moose Fruit Producer has a total asset turnover ratio of 3.50x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 11% interest rate.
To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Chilly Moose Fruit's debt management ratios?
Ratio Value
Debt ratio
Times-interest-earned ratio
The US tax structure influences a firm's willingness to finance with debt. The tax structure more debt.
Answers
Answer:
Total Assets Turnover = Sales/Total Assets
Total Assets = Sales / Total Assets Turnover
Total Assets = 40 / 3.50
Total Assets = 11.43
Debt Ratio = Debt / Total Assets
Debt Ratio = 2.50/11.43
Debt Ratio = 0.2188
Debt Ratio = 0.22
EBIT = Sales - Operating Expenses
EBIT = 40 - 18
EBIT = $22
Interest = $2.50*11%
Interest = 0.275
EBIT/Interest = $22/0.0.275
EBIT/Interest = $800
The US tax structure influences a firm's willingness to finance with debt. The tax structure encourages more debt.
Wildhorse, Inc. had net sales in 2020 of $1,502,400. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $221,100 debit, and Allowance for Doubtful Accounts $3,000 credit. If Wildhorse estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2017, journal entry to record bad debt expense.
Answers
Answer and Explanation:
The journal entry is shown below:
Bad debt expense Dr $14,668 ($221,100 × 8% - $3,000)
To Allowance for doubtful debts $14,668
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credited the allowance for doubtful debt as it decreased the assets
urrent Attempt in Progress Wildhorse Chemicals management identified the following cash flows as significant in its year-end meeting with analysts: During the year Wildhorse had repaid existing debt of $317,900 and raised additional debt capital of $645,200. It also repurchased stock in the open market for a total of $44,750. What is the net cash provided by financing activities
Answers
Answer:
$282,550
Explanation:
Calculation to determine the net cash provided by financing activities
Using this formula
Net cash provided by financing activities= Additional debt capital -Repaid existing debt- Repurchased stock
Let plug in the formula
Net cash provided by financing activities=$645,200-$317,900-$44,750
Net cash provided by financing activities=$282,550
Therefore the net cash provided by financing activities is $282,550
bartleby Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income taxes were $46,900; its capital expenditures were $96,300; and its cash dividends were $30,200. Required: Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)
Answers
Answer: -$7,700
Explanation:
The Free Cash Flow is the amount of after tax income that a company has that can go to both its shareholders and debt holders.
When using cash from operating activities, taxes have already been accounted for so it is calculated as:
= Net cash provided by operating activities - Capital expenditure - Cash Dividends
= 118,800 - 96,300 - 30,200
= -$7,700
Using cost behavior patterns MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor’s salary $1,600; factory rent $3,700 Mixed costs: utilities $2,100 + $6.75 per unit Variable costs per unit: manufacturing labor wages $23.00; supplies used in production $10.00; packaging cost $3.75; warranty cost $4Required:Compute total costs to be incurred for a week with 2,750 units of activity.
Answers
Answer:
Total cost= $138,025
Explanation:
Giving the following information:
Fixed costs:
supervisor’s salary $1,600
factory rent $3,700
Mixed costs:
utilities $2,100 + $6.75 per unit
Variable costs per unit:
manufacturing labor wages $23.00
supplies used in production $10.00
packaging cost $3.75
warranty cost $4
Units produced= 2,750
First, we need to calculate the total variable cost:
Total variable cost= 2,750*(6.75 + 23 + 10 + 3.75 + 4)
Total variable cost= $130,625
Now, the total fixed cost:
Total fixed cost= 1,600 + 3,700 + 2,100
Total fixed cost= $7,400
Finally, the total cost:
Total cost= 130,625 + 7,400
Total cost= $138,025
businesses do not maximise outputs from the given inputs
Answers
Answer:
Businesses that do not maximise outputs from the given inputs are inefficient, and probably have diseconomies of scale, the opposite of economies of scale, that ocurrs when output increases proportionally less than the inputs that are invested.
This situation arises as a result of an economic law, the law of diminishing retuns. According to this economic law, there is a point in the production process in which the use of additional units of input do not result in a proportional yield, in other words, when a business presents diminishing returns, the more inputs it adds, the less output grows in proportion to the inputs.
___ is the total sum of benefits a purchasing firm obtains for the price it pays for the marketing offering.
Answers
is the total sum of benifits a purchesing firm for the price for the marketing offering quality
Waiting period. Upstate University currently has a 6 comma 000 -car parking capacity for faculty, staff, and students. This year, the university issued 4 comma 356 parking passes. The number of parking passes issued has been growing at a rate of 6 % per year. How long will it be before the university will need to add parking spaces?
Answers
Answer: 5.5 years
Explanation:
The 6,000 parking capacity is the future value of the number of parking passes and the 4,356 is the present value.
Using the future value formula, you can find the number of periods it would take:
Future value = Present value * (1 + rate) ^ n
(1 + rate)^ n = Future value / Present value
n = In (Future value / Present value) / In ( 1 + r)
= In (6,000 / 4,356) / In ( 1 + 6%)
= 5.495 years
= 5.5 years
Mighty Safe Fire Alarm is currently buying 62,000 motherboards from MotherBoard, Inc. at a price of $66 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $32 per unit; direct labor, $12 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $87,000. Which option should be selected and why
Answers
Answer:
d) Make, Increase in profits $434,000
Explanation:
Differential analysis
Make Buy
Direct material (62000I*32) $1,984,000
Direct labor (62000*12) $744,000
Variable overhead (62000*15) $930,000
Purchase cost (62000*66) $4,092,000
Total relevant cost $3,658,000 $4,092,000
So, the Company Should make because the cost is lower. Increase in profits $434,000 ($,092,000-$3,658,000)
Hubert is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $35 per hour, he is willing to teach 4 hours per week. At $45 per hour, he is willing to teach 8 hours per week. Using the midpoint method, the elasticity of Jake’s labor supply between the wages of $50 and $65 per hour is approximately ___ , which means that Jake’s supply of labor over this wage range is ___ .
Answers
Answer and Explanation:
The computation of the midpoint elasticity is as follows;
Midpoint elasticity
= (Change in labor supplied ÷ Average labor supplied) ÷ (Change in wage rate ÷ Average wage rate)
= [(8 - 4) ÷ (8 + 4) ÷ 2] ÷ [$($45 - $35) ÷ $($45 + $35) ÷ 2]
= [4 ÷ (12 ÷ 2)] / [$10 ÷ ($80 ÷ 2)]
= (4 ÷ 6) ÷ ($10 / $40)
= 0.67 ÷ 0.25
= 2.68
As the elasticity is more than 1 so the supply of labor should be elastic
Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
There is not a word length requirement for this question; however, you must show your work.
Answers
Answer:
Bell Corporation
The total variable cost is = $660,616
The total fixed cost is = $658,416
The total cost is = $1,319,032
The average variable cost per unit is = $75.07
The average total cost per unit is = $149.89
Explanation:
a) Data and Calculations:
Current activity level = 8,700 units
Variable cost based on the current activity level = $653,109
Unit variable cost = $75.07 ($653,109/8,700)
Fixed cost = $658,416
At activity level of 8,800 units, since 8,800 units are within the relevant range:
The total variable cost = $660,616 (8,800 * $75.07)
The total fixed cost = $658,416 (same as at 8,700 units)
The total cost = $1,319,032 ($660,616 + $658,416)
The average variable cost per unit = $75.07 ($653,109/8,700)
The average total cost per unit = $149.89 ($1,319,032/8,800)
An important strength of the trait approach to leadership is that it: a. can help with leadership selection and development. b. helps in analyzing the situational demands. c. specifies which traits are needed for leadership in a given situation. d. specifies how much of a given trait is important for leadership.
Answers
Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2019 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.
Instructions:
a. Compute the amount of the lease receivable.
b. Prepare all necessary journal entries for Crosley for 2020.
c. Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in 2020.
d. Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1,000 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.
Answers
Answer:
A.$230,410
B. 01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C)01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Dr Inventory $1,000
Cr Gain on Lease $1,000
Explanation:
A. Computation for the amount of the lease receivable.
PV of lease= PV(rate, nper, pmt, [fv]), [type])
PV of lease= -PV (6%,8,35004, , 1)
PV of lease =$230,410
Therefore the amount of the lease receivable is $230,410
B. Preparation of all necessary journal entries for Crosley for 2020.
01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C. Preparation of all necessary journal entries for the company in 2020.
01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Preparation to Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term
Dr Inventory $1,000
Cr Gain on Lease $1,000
did you mom ever yell at you
Answers
Answer:
yeah everyone mother yelled every child for their life
The project manager often combines information from all of the lessons-learned reports into a project summary report.
a. True
b. False
Answers
Answer: True
Explanation:
The lesson learned reports is referred to as the reflective statement where the important information which were learned while working on the project is documented.
The information from all of the lessons-learned reports is combined by the project manager into a project summary report. Some of the items which are discussed in the lessons-learned reports are whether the project was successful or not etc.
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
a. Cash balance according to the company's records at August 31, $19,140.
b. Cash balance according to the bank statement at August 31, $19,950.
c. Checks outstanding, $3,890. Deposit in transit not recorded by bank, $3,120.
d. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
e. Bank debit memo for service charges, $50.
Required:
Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.
Answers
Answer:
Looking at the data, there are only a few entries that increase and decrease cash.
The entry that increases cash is:
A check for $340 in payment of an account was erroneously recorded in the check register as $430.This increases cash because the payment was higher than it should be so when we adjust it, the cash will increase to reflect that more of it was spent than it should have been.
The increase is:
= 430 - 340
= $90
Date Account Title Debit Credit
August 20Y6 Cash $90
Accounts Payable $90
The entry that decreases cash is:
Bank debit memo for service charges, $50.Bank is charging us for its services. This is an expense that reduces the cash balance.
Date Account Title Debit Credit
August 20Y6 Bank charges $50
Cash $50
