Answer:
James Co. (Borrower)
June 1
Debit Merchandise Inventory $90,000
Credit Accounts Payable $90,000
June 30
Debit Accounts Payable $90,000
Credit Notes Payable $90,000
August 29
Debit Notes Payable $90,000
Debit Interest on Notes $750
Credit Cash Account $90,750
O’Leary Co. (Creditor)
June 1
Dr Accounts Receivable $90,000
Cr Sales $90,000
30
Dr Notes Receivable $90,000
Cr Accounts Receivable $90,000
Aug. 29
Dr Cash $90,750
Cr Notes Receivable $90,000
Cr Interest Revenue $750
Explanation:
Preparation of the journal entries
James Co. (Borrower)
June 1
Debit Merchandise Inventory $90,000
Credit Accounts Payable $90,000
(To record the purchase of merchandise on account)
June 30
Debit Accounts Payable $90,000
Credit Notes Payable $90,000
(To record the issue of a 60-day, 5% note)
August 29
Debit Notes Payable $90,000
Debit Interest on Notes $750
($90,000 * 5% * 60/360)
Credit Cash Account $90,750
($90,000+$750)
(To record the payment of the notes plus interest)
O’Leary Co. (Creditor)
June 1
Dr Accounts Receivable $90,000
Cr Sales $90,000
30
Dr Notes Receivable $90,000
Cr Accounts Receivable $90,000
Aug. 29
Dr Cash $90,750
($90,000+$750)
Cr Notes Receivable $90,000
Cr Interest Revenue $750
($90,000 * 5% * 60/360)
Best Buy Electronics sells computers and provides hardware maintenance services. On April 1st, Best Buy sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly?
a. $985.50
b. $19.50
c. $821.25
d. $1,000
Answer:
C. $725
Explanation:
Calculation to determine How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly
Total cost if sold separately = 840 + 360
Total cost if sold separately = 1200
% of Computer = 840/1200
% of Computer= 70%
% of maintenance = 360/1200
% of maintenance= 30%
Revenue to be recognized for the month for computer
Revenue = 1,000 * 70%
Revenue = $700
Revenue to be recognized for the month for maintenance service costs
Revenue = (30% * 1000)/12
Revenue = 300/12
Revenue = $25
Total amount to be recognized =$700+ $25
Total amount to be recognized =$725
Therefore How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly will be $725
A company using IFRS to prepare its financial statements will use a hierarchy to determine what recognition, valuation, and disclosure requirements should be used.
1. IFRS, IAS, IFRS Interpretations
2. Pronouncements of other standard-setting bodies
3. The Conceptual Framework for Financial Reporting
Which of the following depicts the correct order of the hierarchy?
a. 2,3,1
b. 3,2,1
c. 1.2.3
d. 1,3,2
Answer:
The hierarchy for determining recognition, valuation, and disclosure requirements for IFRS is:
d. 1,3,2
Explanation:
1. IFRS, IAS, IFRS Interpretations are the main standards issued by the IASB, the international accounting standard-setting body. It is like the FASB that sets the US GAAP.
2. Pronouncements of other standard-setting bodies can be applied where IFRS are not definitive.
3. The Conceptual Framework for Financial Reporting help the IASB to develop and revise IFRS that are based on consistent concepts.
In spite of people living longer and healthier lives, stereotypes about older workers being hard to manage and slow to adapt to new technologies still persist. How do the media contribute to and reinforce these perceptions?
(your answer must be a minimum of 200 words)
Answer:
I think although older workers may need a rather difficult time learning new technological concepts, nothing takes from them the dedication and commitment they will bring back any company.
Explanation:
The media contributes to its idea pretty vastly. If the media promoted more within the older generation it'll help reinforce the commitment and drive of the elderly. They do not go to work, they prefer to work. they need to remain active, they need to continue doing what they love. sure being retired is great but they get bored. Not many of us just want to remain home, especially from that operation. The baby boomers and generation y workers want and wish for social interaction and need to continue mental stimulation.
"All three levels are required to run an organization or a business smoothy"Justify the statement.
Answer:
"All three levels are required to run an organization or a business " according to my point of view it is true without anyone levels (sector) business or organization not imagine to run
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that:
Answer:
production at this point is technically inefficient.
Explanation:
Efficient production processes requires a producer to either minimise the inputs they are using at a given output or maximise output level at a given input level.
Technical inefficiency is when input is not minimised or output maximised.
In the given instance the fixed cost (airplane) remains unchanged. However crew members can be variable.
If the airplane only requires 3 crew members and 4 crew members are now used, the company is not minimising inputs used so they are technically inefficient.
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
Answer:
overhead applied to the job.
Explanation:
The formula to determine the predetermined overhead rate is given below:
Predetermined overhead rate is
= Estimated manufacturing overhead ÷ estimated activity level
Now when the predetermined overhead rate calculated after that we multiplied the rate with the actual allocation base in order to determine the applied overhead to the job
the long run average cost curve is also called as
Answer:
planning curve.
Explanation:
A long run average cost curve is known as a planning curve.
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?
Answer:
yyyyyyyyyyyuuuuuuuuu
On March 1, Incredible Company issued a $600,000, 90-day interest-bearing note to Minions Bank. Interest on the note is 10% and is paid at maturity. Assume an April 30 fiscal year-end and a 360 day year when calculating interest.
Group of answer choices
May 30
May 29
June 1
May 31
Answer:
I do not know at all
Explanation:
I do not know
Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 21.2 Process time 3.7 Inspection time 0.7 Move time 3.3 Queue time 5.4 The manufacturing cycle efficiency (MCE) was closest to:
Answer:
the manufacturing cycle efficiency (MCE) is 0.28
Explanation:
The computation of the manufacturing cycle efficiency (MCE) is shown below:
Manufacturing cycle efficiency is
= Value-added time (Process time) ÷ Throughput time
= 3.7 ÷ (3.7 + 0.7 + 3.3 + 5.4)
= 0.28
Hence, the manufacturing cycle efficiency (MCE) is 0.28
We simply applied the above formula so that the correct value could come
The Polozzi Trust projects that it will incur the following items in the next year, which will be its first year of existence.
Interest income $25,000
Rent income 100,000
Cost recovery deductions for the rental activity $35,000
Capital gain income 40,000
Fiduciary and tax preparation fees 7,000
Betty, the grantor of the trust, is working with you on the language in the trust instrument relative to the derivation of annual accounting income for the entity. She will name Shirley as the sole income beneficiary and Benny as the remainder beneficiary.
a. If the allocation takes place, Shirley will receive how much for the year?
b. Betty suggests that the capital gains, rental revenues, and one-half of interest income should be allocable to corpus, while cost recovery expenses, one-half of interest income, and fiduciary administrative fees are allocable to income. If the allocation takes place, Shirley will receive how much for the year?
Answer:
a. $165,000
b. -$29,500
Explanation:
a. If the allocation takes place, Shirley's income will include both the interest and rent incomes as well as the capital gains:
= Interest income + Rent income + Capital gain income
= 25,000 + 100,000 + 40,000
= $165,000
b. If the allocation happens according to what Betty suggests, Shirley would receive:
= Interest income / 2 - Cost of recovery expenses - Fiduciary admin fees
= 25,000 / 2 - 35,000 - 7,000
= -$29,500
Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years
Answer:
$14,343.25
Explanation:
The computation is shown below;
For the first bank
The value of investment is
= $68,000 × 8% × 8 + $68,000
= $111,520
For the second bank
= $68,000 × (1 + 0.08)^8
= $125,863.25
So, the difference in these both amount should be
= $125,863.25 - $111,520
= $14,343.25
Swifty Corporation took a physical inventory on December 31 and determined that goods costing $215,000 were on hand. Not included in the physical count were $27,000 of goods purchased from Marigold Corp., FOB, shipping point, and $20,000 of goods sold to Concord Corporation for $34,000, FOB destination. Both the Marigold purchase and the Concord sale were in transit at year-end.
Required:
What amount should Swifty report as its December 31 inventory?
Answer:
$262,000
Explanation:
Ending inventory = Goods on Hand + Cost Goods purchased from Marigold Corp + Cost of goods sold to Marigold Corp.
Ending inventory = $215,000 + $27,000 + $20,000
Ending inventory = $262,000
So, the amount that should Swifty report as its December 31 inventory is $262,000.
You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)
Answer and Explanation:
The computation of the expected return and the standard deviation is given below:
the expected return is
= $90,000 × 13% + $60,000 × 6.6%
= $15,660.00
And,
standard deviation of return is
= $90,000 × 13% × 44% + $60,000 × 6.6%
= $5,148 + $3,960
= $9,108.00
In this way it should be calculated
Red Co. recorded a right-of-use asset of $140,000 in a 10-year finance lease. Payments of $22,784 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be: (Round your final answer to the nearest whole dollar.)
Answer: $121554
Explanation:
Lease liability = $140,000
Less: Lease liability in 1st year= $8784
Lease payable after one year = $131216
Less: Lease liability in 2nd year = $9662.40
Lease payable after 2nd year = $121553.60 = $121554
Note:
Lease liability in 1st year:
= $22,784 - (10% × $140000)
= $22784 - $14000
= $8784
Lease liability in 2nd year:
= $22784 - (10% × $131216)
= $22784 - $13121.60
= $9662.40
Cullumber Enterprises has total current assets of $345,002 and fixed assets of $466,306. The company also has long-term debt of $287,400, $100,000 in its common stock account, and retained earnings of $187,570. What is the value of its total current liabilities
Answer: $236,338
Explanation:
The accounting equation is:
Assets = Equity + Liabilities
Assets = Fixed assets + Current Assets
Equity = Common stock + Retained earnings
Fixed assets + Current Assets = Common stock + Retained earnings + Long term debt + Current liabilities
466,306 + 345,002 = 100,000 + 187,570 + 287,400 + Current liabilities
811,308 = 574,970 + Current liabilties
Current liabilities = 811,308 - 574,970
= $236,338
Mackie Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians post their rates, qualifications, and references on the website, and Mackie receives 25% of the fee paid to the statisticians in exchange for identifying potential customers. Hoffman Associates contacts Mackie and arranges to pay a consultant $1,500 in exchange for analyzing some data. Mackie's income statement would include the following with respect to this transaction:_________
a. Revenue of $1,875 and cost of services of $1,500
b. Revenue of $1,500
c. Revenue of $1,500, and cost of services of $1,125
d. Revenue of $375
Answer:
d. Revenue of $375
Explanation:
The amount paid by the Vetmed associates is an expense for associates
The amount received by statisticians is a revenue for them
Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue
Mackie's income statement would include a revenue of:
= Amount paid to statisticians * % Received
= $1,500 * 25%
= $375
suppose ta hurricane hits alabama causing widespread damage to houses and businesses the governor of alabama places pirce cielings on all building materials to keep the prices reasonable
Answer:
Shortages of building materials and a slower recovery from the storm
Explanation:
From the question we are informed about an instance, whereby a hurricane hits Alabama, causing widespread damage to houses and businesses. The governor of Alabama places price ceilings on all building materials to keep the prices reasonable. In this case,what most likely result is Shortages of building materials and a slower recovery from the storm.
From law of demand, which expressed that provided other factors remain equal, when price of a good goes higher, then there would be less demand of that good from
people and vice versa. higher price brings lower the quantity demanded, and lower price brings higher the quantity demanded, therefore in the case, above as the price of ceilings on all building materials so that price becomes reasonable people demand more and it leads to Shortages of building materials
This year, he received $7,000 revenue from the tenants and incurred $4,900 rental expenses. Mr. Moyer must include $7,000 in gross income and is allowed $4,900 of itemized deductions for the expenses.
A. True
B. False
Answer:
B. False
Explanation:
a) Data and Calculations:
The gross income from rent = $7,000
Rental expenses = $4,900
Net income from rent = $2,100
b) Rental expenses are business expenses. They are not part of itemized deductions. They are usually subtracted before arriving at the adjusted gross income (AGI) from which itemized deductions are then made. Therefore, there is no requirement to itemize the rental expenses.
Question 2
• The number of electrical outages in a city varies from day to day. Assume that
the number of electrical outages («) in the city has the following probability
distribution
f)
0
0.8
0.15
2
3
0.01
و مرا به دو
A) The mean for the number of electrical outages is
B) The standard deviation for the number of electrical outages is
Answer:
The answer is below
Explanation:
Probability distribution are statistical function that shows all the possible outcomes of a random variable within a given range of values.
a) The mean ([tex]\bar x[/tex]) of a probability distribution of a discrete random variable is:
[tex]\bar x=\Sigma\ [xP(x)][/tex] = (0 * 0.8) + (1 * 0.15) + (2 * 0.04) + (3 * 0.01) = 0.26
b) The standard deviation (σ) of a probability distribution of a discrete random variable is:
[tex]\sigma=\sqrt{ \Sigma\ [(x-\bar x)^2*P(x)]}\\\\\sigma=\sqrt{(0-0.26)^2*0.8+(1-0.26)^2*0.15+(2-0.26)^2*0.04+(3-0.26)^2*0.01} \\\\\sigma=0.577[/tex]
Mainway Toy Company currently has 10,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation. If Mainway Toy Company declares a 2-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be ____________.
Answer:
$47.50
Explanation:
A stock split implies dividing the existing number of shares into multiples in order to enhance the liquidity of the firm's shares.
It is noteworthy that the stock split does not add any value to the existing stock account balance as well as paid in surplus account value since only the number of issued shares changed , values are kept constant.
share price after split=share price before split/stock split ratio
share price before split=$95
stock split ratio=2/1
share price after split=$95/2/1
share price after split=$95*1/2
share price after split=$47.50
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.
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.
Kaluzniak Corporation leased equipment to Moeller, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,137 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $7,000, a book value of $5,000, and Kaluzniak expects a residual value of $4,500 at the end of the lease term. Kaluzniak set the lease payments with the intent of earning a 6% return, though Moeller is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.
Required:
a. Explain (and show calculations) how Kaluzniak arrived at the amound of the rental payments used in the lease agreement.
b. Prepare the entries for Kaluzniak for 2017.
c. How would Kaluzniak's accounting in part (a) change if it incurred legal fees of $700 to execute the lease documents and $500 in advertising expenses for the year in connection with the lease?
Solution :
a). Fair value of the leased asset $ 7000
Less: [tex]\text{Present value}[/tex] of unguaranteed residual $ 3778.29
value [4500 x PV(6,3%)]
Amount to be recovered through lease payment $ 3221.71
Three periodic lease payment $ 1137.05
Rental payments $ 1137.00
b). Journal entries in the books of Kaluzniak.
Date Particulars Debit($) Credit($)
2020 Jan 1 Cash account 1137
To unearned lease revenue 1137
Jan 1 Unearned lease revenue 1137
To lease revenue 1137
Dec 31 Depreciation expense 714.29
To accumulated depreciation equipment 714.29
c).
Date Particulars Debit($) Credit($)
Jan 1, 2020 Legal fee 700
To cash 700
Jan 1 Advertisement 500
To cash 500
The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the indirect method.
a. True
b. False
Answer:
a. True
Explanation:
When we have to adjust and converted the net income into the cash basis the gain is subtracted and losses are added to the net income in the operating activities section of the cash flow statement
Since there is the gain or loss from the retirement of the bonds so the same should be deducted or added to the net income as the case may be
Therefore the correct option is a.
Kite Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $ 180,000
Variable expenses 108,000
Contribution margin 72,000
Fixed expenses 62,400
Net operating income $ 9,600
The contribution margin ratio is closest to:______.
a. 33%
b. 40%
c. 60%
d. 67%
Answer:
b. 40%
Explanation:
Contribution margin ratio = Contribution / Sales x 100
where,
Contribution = Sales - Variable Costs
= $180,000 - 108,000
= $72,000
therefore,
Contribution margin ratio = $72,000/ $180,000 x 100
= 40 %
thus,
The contribution margin ratio is closest to 40 %.
JOHNSON HAS THE FOLLOWING DATA REGARDING AN EXCHANGE OF LAND: (ASSUME THE EXCHANGES LACKS COMMERCIAL SUBSTANCE) OLD LAND FMV 580,000 OLD LAND COST 430,000 NEW LAND FMV 493,000 CASH RECEIVED 87,000 REQUIRED: HOW MUCH GAIN WILL JOHNSON RECOGNIZE ON THE EXCHANGE
Answer: No gain or loss will be recognized since the exchange lacks commercial substance.
Explanation:
Based on the information given, the amount of gain that John will recognize on the exchange will be nothing.
In this case, we are given the information that the exchange lacks commercial substance. Commercial substance refers to the transaction which brings about the change in the cash flow of the entity.
In this case, since there isn't ant commercial substance involved, then there will be no gain or loss recognized.
Vietnamese citizens went working in Korea. They sent their income back to the families in Vietnam, worth of $678,000. Which account is affected?; how do you record this into the US BoP?
Answer:
a. Current Account.
b. A credit to the Current Account.
Explanation:
When people go to another country for work and send the income they make back to their country of origin as remittances, this goes to the Current Account of a nation's Balance of Payments.
It would be recorded as a credit to this account because when money goes out, it goes to the credit side of the U.S. BOP as it is being exported out so is leaving the economy of the U.S.
g Suppose you are thinking of loaning out some money. You would like to get a real rate of return of 10% on your loan and the rate of inflation is anticipated to be 4%. What interest rate should you charge on your loan
Answer:
14%
Explanation:
If you are a director of a tea company, what will you do with functional management (POLC)? You are required to make a detail plan which explains clearly about functional management.
Answer:
Make someone else director
Explanation:
I would be too lazy to do that. ;)
Darkover Inc., as part of its strategic planning process, is considering making some policy changes. What effect (i.e. Increase, Decrease, No Effect) would each the following changes have on Darkover's Net Cash Flow from Operating Activities? Assume that in each case, the change only affects the account or accounts mentioned (i.e. all other accounts are not changed by the action).
Question Completion:
_____(a) Increase investment in new plant and equipment.
_____(b)Change the collections policy to insure that receivables are collected sooner.
_____(c)Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).
_____(d)Sell long term bonds and use the proceeds to reduce notes payable
._____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.
_____(f)Change accounts payable policy to pay bills in 20 days instead of 10 days.
Answer:
Darkover Inc.
Effects of Changes on Darkover's Net Cash Flow from Operating Activities:
_No Effect____(a) Increase investment in new plant and equipment.
Increase_____(b) Change the collections policy to insure that receivables are collected sooner.
Decrease_____(c) Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).
Decrease_____(d) Sell long term bonds and use the proceeds to reduce notes payable
Decrease_____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.
Increase_____(f) Change accounts payable policy to pay bills in 20 days instead of 10 days.
Explanation:
Darkover's net cash flow from operating activities is the result of accumulating the cash inflows and outflows from its operating activities. Operating activities are the normal activities that Darkover carries out from which it earns its revenues and incurs related expenses. They are the day-to-day activities through which the mission of the entity is carried out.