The adjusting entry for the end of the period is :
Provisions for doubtful debts Account .........dr. 16,630
To Profit and loss Account 16,630
Given,
At the end of the current year, Blue Spruce Corp.'s ledger displays $237,000 in accounts receivable.
The trial balance shows a credit balance of $4,700 for Allowance for Doubtful Accounts.
And 9% of accounts receivable are predicted to be bad debts.
Amount of bad debts = 9% × amount of Accounts Receivables
= 9% × $2,37,000
= $21,330
Since, there is already a provision for doubtful debts of $4,700.
We have to increase it by (21,330 - 4,700) $16,630.
Hence, The adjusting entry for the end of the period is :
Provisions for doubtful debts Account .........dr. 16,630
To Profit and loss Account 16,630
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The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:
Inventory $890,000
Total assets $3,500,000
Current ratio 2.40
Acid-test ratio 1.40
Debt to equity ratio 1.5
Required:Determine the following 2016 balance sheet items:1. Current assets2. Shareholders' equity3. Non-current assets4. Long-term liabilities
Answer:
1. Current assets $2,136,000
2. Shareholders' equity $2,000,000
3. Non-current assets $1,364,000
4. Long term liabilities = $610,000
Explanation:
Calculation to determine the following 2016 balance sheet items: Current assets, Shareholders' equity, Non-current assets and Long-term liabilities
1. Current assets
First step is to calculate the Acid test ratio using this formula
Acid test ratio = (Current assets-Inventory)/Current liabilities
Let plug in the formula
1.40 = (2.40X-$890,000)/X
1.40X = 2.40X-$890,000
-1.00X = $890,000
X=$890,000/1.00
X = $890,000
Now let calculate the Current assets
Current assets =$ 890,000*2.4
Current assets = $2,136,000
Therefore Current assets will be $2,136,000
2. Shareholders' equity
Using this formula
Total assets = Debt+Equity
Let plug in the formula
$3,500,000 = 1.5X+X
X = $2,000,000
Therefore Shareholders' equity will be $2,000,000
3 .Non-current assets
Long term assets = $3,500,000- $2,136,000
Long term assets = $1,364,000
Therefore Non-current assets will be $1,364,000
4. Long-term liabilities
Long term liabilities =[($3,500,000-$2,000,000)-$890,000]
Long term liabilities =$1,500,000-$890,000
Long term liabilities = $610,000
Therefore Long term liabilities will be $610,000
Revise the following sentences to eliminate flabby expressions.
a. Despite the fact that we lost the contract, we must at this point in time move forward.
b. In the event that interest rates increase, we will begin investing in the very near future.
Answer:
. Despite the fact that we lost the contract, we must at this point in time move forward.
Explanation:
Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000.
a. Cardinal Corporation will have a basis of $160,000 in the land transferred by Carl.
b. Carl will have a recognized gain on the transfer of $30,000
c. Carl will have a recognized gain on the transfer of $90,000.
d. Cardinal Corporation will have a basis of $70,000 in the land transferred by Carl.
e. None of these choices are correct.
Answer:
e. None of these choices are correct.
Explanation:
Carl's gain = value of the note received + value of the mortgage - land's basis = $40,000 + $100,000 - $70,000 = $70,000
Snice the mortgage is higher than the basis ($100,000 higher than $70,000), this must be recognized as a Section 357 gain. The note receivable must also be recognized as gain since it doesn't qualify for Section 351.
Which of the following financial statements are required for a Debt Service Fund? Multiple Choice Statement of revenues, expenditures, and changes in fund balances only. Balance sheet and statement of revenues, expenditures, and changes in fund balance only. Balance sheet; statement of revenues, expenditures, and changes in fund balance; and statement of cash flows. Statement of net position only.
Answer:
Balance sheet; statement of revenues, expenditures, and changes in fund balance.
Explanation:
Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.
Debt service funds is a cash reserve which is used to report account and pay for the interest and principal payment on financial resources that are restricted, committed or assigned to expenditure except debt of proprietary and fiduciary funds who account for their own interest and principle payments.
The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.
The following financial statements are required for a Debt Service Fund;
I. Balance sheet.
II. Statement of revenues.
III. Expenditures.
IV. Changes in fund balance.
From a salesperson's perspective, the characteristics of a good manager: A. vary from manager to manager. B. conflict with the characteristics managers list as being traits of a good manager. C. are a rarity in modern sales organizations. D. include friendship and loyalty E. include flexibility and a team orientation.
Answer:
E. include flexibility and a team orientation.
Explanation:
Sales management is the process that maintains customers sales by planning, direction and control of the sales process.
It involves motivation, supervising, delegation, and equipping of the sales force.
This is a people oriented career and therefore requires flexibility and a team orientation. So the team is able to adapt to new strategies aimed at improving the sales process.
Tomas, manager of a 50-person engineering department, exhibits group maintenance behaviors; that is he ensures employee satisfaction, harmonious work relationships, and the department's social stability. However, his division manager, Stan, notes that Tomas' department rarely achieves its yearly goals, in terms of work speed, quality and accuracy, output, and compliance with company policies and requirements. How would you advise Stan to coach Tomas to perform his job at a higher level and to increase the performance of Tomas' organization
Answer: Tell Thomas to focus more on task performance behaviors.
Explanation:
The options are:
a. Tell Thomas to focus more on group maintenance behaviors.
b. Tell Thomas to focus more on participative leadership.
c. Tell Thomas to focus more on task performance behaviors.
d. Tell Thomas to focus more on democratic leadership.
e. Tell Thomas to focus more on social factors.
Based on the information given in the question, the answer will be for Thomas to focus more on task performance behaviors.
This will enable Thomas to know whether the employees in the department are performing their roles well or not. He already exhibits group maintenance behaviors and participative leadership. Therefore, option C will be the right answer.
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return.
Situation
1 2 3
Lease term (years) 12 20 4
Lessor's rate of return (known by lessee) 11% 9% 12%
Lessee's incremental borrowing rate 12% 10% 11%
Fair value of lease asset $620,000 $1,000,000 $205,000
Required:
a. Determine the amount of the annual lease payments as calculated by the lessor and above situations.
b. Determine the amount lessee would record as a leased asset and a lease liability for above situations.
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Explanation:
The amount of the annual lease payments as calculated by the lessor and above situations are $86,033.44, $100,501.35, and $60,261.66 respectively. The amount lessee would record as a leased asset and a lease liability for above situations are $620,000, $1,000,000 $205,000 respectively.
What are lease payments?Lease payments are regular payments made to the lessor, who owns the asset, and the lessee, who will utilize it, as per the conditions of a contract. Before the lessee either returns the object or purchases it outright, the lease payments often continue for a predetermined amount of time.
a) For Situation 1:
Formula for calculating annual lease payments is:
Annual lease payments = Fair value of assets ÷ Present value for annuity due.
Where,
Fair Value of Assets of the leased asset = $620,000
Lease term = 12 years
Lessor's rate of return = 11%
The present value of annuity due 12 years at the rate of 11% is 7.2065
Putting in the values in the formula we get:
Annual lease payments = $620,000/7.2065 = $86,033.44
b) Formula for the lease liability = Annual rent payment × present value of annuity due.
Lease liability = $86,033.44 x 7.2065 = $620,000
For Situation 2:
a) The present value of annuity due 20 years at the rate of 9% is 9.9501
Annual lease payments = $100,000/9.9501 = $100,501.35
b) Lease liability = $100,501.35 x 9.9501 = $1,000,000
For Situation 3:
a) The present value of annuity due 4 years at the rate of 12% is 3.4081
Annual lease payments = $205,000/3.4081 = $60,261.66
b) The lease ability = $60,261.66 x 3.4801 = $205,000
Therefore, the amounts that of the lease payment for the lessor and the lessee is determined above.
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At the end of its most recent accounting period, Hinch Corporation had a balance of Accounts Receivable of $725,000 and a credit balance in Allowance for Uncollectible Accounts of $4,800. An aging of Accounts Receivable performed at the end of that period determined that the balance in Allowance for Uncollectible Accounts should be $31,400. The adjusting entry to record Bad Debts Expense should include which of the following:
a. Debit to Bad Debts Expense of $26,600
b. Credit to Bad Debts Expense of $31,400
c. Debit to Bad Debts Expense of $36,200
d. Credit to Allowance for Uncollectible Accounts of $31,400
Answer:
a. Debit to Bad Debts Expense of $26,600
Explanation:
The computation of the bad debt expense is shown below:
= Allowance for uncollectible accounts - credit balance of allowance for uncollectible accounts
= $31,400 - $4,800
= $26,600
Hence, the first option is correct
Kennedy Company reports the following costs and expenses in May.
Factory utilities $ 16,500
Depreciation on factory equipment 12,650
Direct labor 79100
Sales salaries 48400
Property taxes on factory building 2500
Repairs to office equipment 1300
Factory repairs 2000
Advertising 23,000
Depreciation on delivery trucks 3800
Indirect factory labor 48900
Indirect materials 70800
Direct materials used 157600
Factory manager's salary 8000
Office supplies used 4640
Instructions:
From the information, determine the total amount of:______.
(a) Manufacturing overhead.
(b) Product costs.
(c) Period costs.
Answer and Explanation:
The computation is shown below:
a. The manufacturing overhead is
= factory utilities + depreciation on factory equipment + indirect factory labor + indirect material + factory manager salary + property tax + factory repairs
= $16,500 + $12,650 + $48,900 + $70,800 + $8,000 + $2,500 + $2,000
= $161,350
b. The product cost is
= Direct material used + direct labor + total manufacturing overhead
= $157,600 + $79,100 + $161,350
= $398,050
c. The period cost is
= Depreciation on delivery truck + sales salaries + repairs to office equipment + advertising + office supplies used
= $3,800 + $48,400 + $1,300 + $23,000 + $4,640
= $81,140
TheThe economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage: a. The minimum wage law causes unemployment. b. Unemployment would be lower without a minimum wage law. c. Minimum wage laws benefit some workers and harm others. d. The minimum wage should be more than $7.25 per hour. economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage:
Answer:
a. The minimum wage law causes unemployment. - Positive statement
This is a positive statement because it describes a factual statement about minimum wage. It does not say whether minimum wage is a good thing or not, even if the inherent quality of the statement can be somewhat inferred.
b. Unemployment would be lower without a minimum wage law. - Postive statement.
This is a positive statement for the same reasons as the statement above. Besides, this statement says exactly the opposite as the statement above.
c. Minimum wage laws benefit some workers and harm others. - Positive statement.
This statement is also positive, it does not establish whether minimum wage is a good or a bad, thing, and it also does not recommend any policy regarding minimum wage.
d. The minimum wage should be more than $7.25 per hour. - Normative statement.
This above is a normative statement. It clearly establishes a preference when it comes to minimum wage, and recommends a public policy according to it: $7.25 per hour.
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost. The remaining 60% of the business is with several different customers and they are charged at $35 per unit. Find (a) the breakeven volume for this job shop. (b) the unit cost if 100,000 units are made per year. (c) the annual profit for this quantity.
An accountant is starting a new job and wants to make sure he does not put himself or his company at legal risk. He talks to his companyâs law department about which areas of law he should brush up on. The company lawyer tells him relevant areas of the law he should be aware of include:
a. White collar crime, liability of accountants, contracts
b. Product liability, comparative law, agency law
c. Antitrust law, liability of accountants, insurance law
d. Liability of accountants, international law, employment discrimination
e. Antitrust law, international law, consumer law
Answer: White collar crime, liability of accountants, contracts
Explanation:
Based on the information given, the company lawyer will tell him relevant areas of the law he should be aware of such as white collar crime, liability of accountants, and contracts.
White-collar crime simply refers to crime that a person may commit against a business and they are financially motivated e.g embezzlement, fraud, money laundering etc.
Also, when a misstatement occurs when preparing an account, the accountant is liable and in such case,will be held responsible for any inaccuracies that was noticed.
Based on the above explanation, the accountant should be aware of white collar crime, liability of accountants, contracts.
In 2004 a California woman named Lisa Torti was in a vehicle with her friend Alexandra Van Horn when they were involved in a car accident that was not their fault. Lisa, upon seeing what she thought was smoke, grabbed Alexandra and quickly pulled her out of the vehicle and away from danger. Alexandra had a severe spinal injury and later sued Lisa for moving her away from the smoking vehicle (and thereby causing more spinal injury).
Many states have laws that prevent bringing lawsuits against a "good samaritan" who is attempting to help you. However, in 2008 a California court ruled 4-3 that Alexandra’s lawsuit against Lisa was justified and could continue.
Assuming Lisa was in fact negligent in moving her friend from the vehicle, discuss your opinion on whether cases like this should be allowed to be brought. Under what circumstances should a "good samaritan" be allowed to be sued?
Explain your answer in 2 or more paragraphs. Then review a few of your classmates posts and give a substantive response to one of them with a paragraph.
The correct answer to this open question is the following.
This case is complex because the "good samaritan" is always doing things trying to help and under these circumstances such as danger or accident, tje individual is under so much stress, nervousness, and fear. So more than thinking, he/she is reacting.
And that is what Lisa did when she saw smoke in the car. She thought that her friend could be in danger or great risk and her first reaction -not thinking- was to move her and keep her out of the danger zone.
Assuming Lisa was in fact negligent in moving her friend from the vehicle, the trial should proceed but it is difficult to demonstrate in court the real intentions of the "good samaritan."
The circumstances in which a "good samaritan" should be allowed to be sued is when there is clear evidence that he/she acted on purpose, trying to inflict pain or damage to the other person.
Lisa Torti was sued by her friend Alexandra Van Horn, after a car accident in 2004. The California court concluded that there was no medical reason to pull Alexandra out of the car, causing her vertebral damage.
Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. Good2012 Price2012 Quantity2013 Price2013 Quantity A$2.00 500$2.50600 B$4.001,000$5.00900 C$2.00 200$1.00300 What was the real gross domestic product (GDP) in 2013
Answer:
$5400
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
($2 x 600) + ($4 x 900) + ($2 x 300) = $5400
An investor obtained a fully amortizing mortgage five years ago for $95,000 at 11-percent for 30 years. Mortgage rates have dropped, so that a fully amortizing 25-year loan can be obtained at 10-percent. There is no prepayment penalty on the mortgage balance of the original loan, but three points will be charged on the new loan and other closing costs will be $2,000. All payments are monthly.
Required:
a. Should the borrower refinance if he plans to own the property for the remaining loan term? Assume that the investor borrows only an amount equal to the outstanding balance of the loan.
b. Would your answer to part (a) change if he planned to own the property for only five more years?
Answer:
a) yes, you should refinance the loan
b) yes, you should refinance the loan
Explanation:
the original monthly payment = $904.71
after 60 payments, the principal owed = $838.79
the difference between both payments = $904.71 - $838.79 = $65.92
in order to determine whether the loan should be refinanced or not, we must find the present value of refinancing costs:
are 300 payments of $65.92 worth more than $2,000?
PV = $65.92 x 110.162 (PVIFA, 0.833%, 300 periods) = $7,261.88 ≥ $2,000
PV = $65.92 x 47.07(PVIFA, 0.833%, 60 periods) = $3,102.85 ≥ $2,000
Katy has one child, Dustin, who is 18 years old at the end of the year. Dustin lived at home for three months during the year before leaving home to work full time in another city. During the year, Dustin earned $15,000. Katy provided more than half of Dustin's support for the year. Which of the following statements regarding whether Katy may claim Dustin as a dependent for the current year is accurate?
a. Yes, Dustin is a qualifying child of Katy.
b. Yes, Dustin fails the residence test for a qualifying child but he is considered a qualifying relative of Katy.
c. No, Dustin fails the support test for a qualifying relative.
d. No, Dustin fails the gross income test for a qualifying relative.
Answer:
d. No, Dustin fails the gross income test for a qualifying relative.
Explanation:
According to the given situation, the correct option is d as the gross income of dustin would be more than the income limit i.e. $4,200 for the tax year 2019 and $4,300 for the tax year 2020
So due to this he fails the test with respect to the gross income in order to qualify the relative
Cullumber Co. began operations on January 2, 2020. It employs 15 people who work 8-hour days. Each employee earns 11 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.50 in 2021. The average vacation days used by each employee in 2021 was 10. Cullumber Co. accrues the cost of compensated absences at rates of pay in effect when earned
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.
Answer and Explanation:
The Journal entries are shown below:
On 2020,
Wages expense Dr. $23,760(15 × 8 hrs × 11 days × $18)
To vacation wages payable $23,760
(To record the wages expense)
On 2021
Wages expense Dr $1,800
Vacation wages payable $21,600 (15 × 8 hrs × 10 days × $18)
To Cash $23,400 (15 × 8 hrs × 10 days × $19.50)
(To record the cash paid)
Wages expense Dr.$25,740 (15 × 8 hrs × 11 days × $19.50)
To vacation wages payable $25,740
(To record the wages expense)
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1
Materials $78,600
Conversion costs 48,700 $127,300
Materials added 1,592,280
Labor 225,100
Overhead 339,064
Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Determine the equivalent units of production and the unit production costs for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25.)
Answer:
Equivalent units of Production for Materials.
= Units transferred out + Ending WIP
Units transferred out = Beginning WIP + Units started in production - Ending WIP
= 35,200 + 661,000 - 25,400
= 670,800 units
= 670,800 + 25,400
= 696,200 units
Equivalent units of Production for Conversion
= Units transferred out + Ending WIP Conversion
= 670,800 + (25,400 * 40%)
= 680,960 units
Units cost of production for Materials
= (Beginning material cost + Materials added) / Materials EUP
= (78,600 + 1,592,280) / 696,200
= $2.40
Units cost of production for Conversion
= (Beginning conversion + labor + overhead) / Conversion EUP
= (48,700 + 225,100 + 339,064) / 680,960
= $0.90
Bonita Industries pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Bonita accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $26000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $445000.
Assuming a five-day workweek, Bonita should record a liability at December 31, 2020 for accrued salaries of:________
Answer:
$159,500
Explanation:
Liability for accrued salaries = $26,000 + ($445,000/10*3)
Liability for accrued salaries = $26,000 + $133,500
Liability for accrued salaries = $159,500
So, Bonita should record a liability at December 31, 2020 for accrued salaries of $159,500
Which are included in a customer profile?
Select all that apply.
A.)social media messages
B.)socioeconomic status
C.)promotions and prices
D.)attitudinal and behavioral details
E.)marketing strategies
F.)demographic information
Hey there!
I would say the answers are B, C, F
The others do not seem like something that would be in a customer profile.
Hope it helps and have a great day!
An investor takes a long position in 3 futures contracts. The initial margin is $8,200 per contract and the maintenance margin is $6,000 per contract. At 1 p.m. today, the investor's total margin account balance is $15,490.64 and the investor receives a margin call. How much must the investor deposit into the margin account at 1 p.m. to keep the futures position open
Answer:
$3,036.45
Explanation:
Total Initial margin = Initial margin per contract * Number of contracts = $8,200 * 3 = $24,600
Total maintenance margin = maintenance per contract * Number of contracts = $6,000 * 3 = $18,000
Total margin account balance = $15,490.64
We observe Margin account balance < Maintenance margin
Margin call required = Initial margin - Total account balance
Deposit Amount = Total initial Margin - Total Margin Account balance = $24,600 - $15,490.64 = $9,109.36 or $9,109.36/3 = $3,036.45 per contract.
Tanaka Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
Super Supreme
Sales price $90 $129
Variable cost per unit (69) (75)
Contribution margin per unit $21 $54
Fanning expects to incur annual fixed costs of $132,870. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme.
Required:
a. Determine the total number of products (units of Super and Supreme combined) Tanaka must sell to break even.
b. How many units each of Super and Supreme must Tanaka sell to break even? (Do not round intermediate calculations.)
Answer:
A. 4,300 units
B.Units of super =3,010 Units
Units of Spreme =1,290 Units
Explanation:
a) Calculation to Determine the total number of products (units of Super and Supreme combined) Tanaka must sell to break even.
First step is to calculate the Contribution margin per sales mix
Contribution margin per sales mix = (0.70*$21) + (0.30*$54)
Contribution margin per sales mix = $14.7+$16.2
Contribution margin per sales mix =$30.9
Now let calculate the Break-even Point In Unit using this formula
Break-even Point In Unit = Fixed Cost/
Contribution Margin Per Sales Mix
Let plug in the formula
Break-even Point In Unit= $132,870/$30.9
Break-even Point In Unit=4,300 units
Therefore the Break-even Point In Unit will be 4,300 units
b) Calculation to determine How many units each of Super and Supreme must Tanaka sell to break even
Units of super = 4,300 units *70%
Units of super =3,010 Units
Units of Spreme =3,660 units *30%
Units of Spreme =1,290 Units
Therefore How many units each of Super and Supreme must Tanaka sell to break even will be:
Units of super =3,010 Units
Units of Spreme =1,290 Units
Hillside issues $1,600,000 of 9%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,382,579.
Required:
a. Prepare the January 1, 2017, journal entry to record the bonds' issuance.
b. Prepare the journal entries to record the first two interest payments.
Answer: Check attachment
Explanation:
a. Prepare the January 1, 2017, journal entry to record the bonds' issuance.
This has been attached. Kindly note that the discount on bond payable was calculated as:
= Bond payable - Cash
= 1,600,000 - 1,382,579
= 217,421
b. Prepare the journal entries to record the first two interest payments.
Check attachment as the first two interest payments on June 30th 2017 and December 31st, 2017 has been attached.
The stockholders’ equity section of Fauberg Marigny Corporation at December 31 is as follows.
FAUBERG MARIGNY CORPORATION
Balance Sheet (partial)
Stockholders' equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized,
5,000 shares issued and outstanding $300,000
Common stock, no par, 750,000 shares authorized,
150,000 shares issued 1,500,000
Total paid-in capital 1,800,000
Retained earnings 2,050,000
Total paid-in capital and retained earniings 3,850,000
Less: Treasury stock (5,000 common shares) (64,000)
Total stockholders' equity $3,786,000
From a review of the stockholders’ equity section:
1) How many shares of common stock are outstanding?
2) Assuming there is a stated value, what is the stated value of the common stock?Stated value of common stock per share.
3) What is the par value of the preferred stock?
4) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock?
5) If dividends of $36,000 were in arrears on preferred stock, what would be the balance in retained earnings?
Answer:
1. 295,000 shares
2. $10 per share
3. $60 per value
4. 6%
5. $2,046,400
Explanation:
1. Calculation for How many shares of common stock are outstanding
Outstanding common stock 300,000 shares
Less Common shares 5,000
Common shares outstanding 295,000 shares
2. Calculation for the stated value of the common stock
Stated value of the common stock
$1,500,000/150,000
Stated value of the common stock = $10 per share
3. Calculation for What is the par value of the preferred stock
Par value of the preferred stock=$300,000/5,000
Par value of the preferred stock=$60 par value
4. Calculation for dividend rate on preferred stock
Dividend rate on preferred stock=$18,000/$300,000 = 6%
5. Calculation for what would be the balance in Retained Earnings
Balance in Retained Earnings= $2,050,000 -$36,000
Balance in Retained Earnings=$2,046,400
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee.Adding more and more workers does not constantly increase production because of _______SELECT THE CORRECT ANSWER different productivity levels between various laborers.diminishing marginal costs.diminishing marginal product of labor.substitutes in production.
Answer:
diminishing marginal product of labor.
Explanation:
The diminishing marginal product of labor theory states that as more of a variable production factor is increased there will initially be an increase in production.
However as more of the variable factor is added increase in production reduces until increase in variable factor results in decrease in production.
In the given scenario where Edith employs 3 baristas, an increase to 6 may yield lower productivity per unit of employee added
A corporate culture is generally defined as the
Answer:
inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.
Explanation:
A corporate culture is the shared values, beliefs, attitudes, and behaviors that exist within a company or organization.
Corporate culture is shaped by various factors, including the company's mission, vision, and core values, as well as its history, leadership style, and the behaviors exhibited by top management. It can also be influenced by the industry in which the organization operates, geographical location, and the composition of its workforce.
A positive corporate culture promotes teamwork, innovation, open communication, and a healthy work-life balance. On the other hand, a negative or toxic culture can lead to low morale, high turnover, and hinder the organization's overall success.
In conclusion, a corporate culture is the collective values, beliefs, attitudes, and behaviors that define an organization's identity and shape the working environment. It has a significant impact on employee engagement, productivity, and the overall success of the company.
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Assume the following adjustment data.
1. Supplies on hand at October 31 total $500.
2. Expired insurance for the month is $100.
3. Depreciation for the month is $75.
4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280.
6. Interest expense accrued at October 31 is $70.
7. Accrued salaries at October 31 are $1,400.
Prepare the adjusting entries for the items above.
Answer:
1.Dr Supplies Expense $2,000
Cr Supplies $2,000
2. Dr Insurance Expense $100
Cr Prepaid Insurance $100
3. Dr Depreciation Expense $75
Cr Accumulated Depreciation- Equipment $75
4. Dr Unearned Service Revenue $800
Cr Service Revenue $800
5. Dr Accounts Receivable $280
Cr Service Revenue $280
6. Dr Interest Expense $70
Cr Interest Payable $70
7. Dr Salaries & Wages Expense $1,400
Cr Salaries & Wages Payable $1,400
Explanation:
Preparation of the adjusting entries
1. Dr Supplies Expense $2,000
Cr Supplies $2,000
[$2,500 - $500]
2. Dr Insurance Expense $100
Cr Prepaid Insurance $100
3. Dr Depreciation Expense $75
Cr Accumulated Depreciation- Equipment $75
4. Dr Unearned Service Revenue $800
Cr Service Revenue $800
5. Dr Accounts Receivable $280
Cr Service Revenue $280
6. Dr Interest Expense $70
Cr Interest Payable $70
7. Dr Salaries & Wages Expense $1,400
Cr Salaries & Wages Payable $1,400
You are negotiating a transaction on behalf of one of your clients, Blair Burke. During the negotiationyou become aware that the other party to the transaction does not adequately understand the tax consequences of the proposed transaction, which are highly favorable to Burke. In fact, if the transaction were completed as proposed, the other side would suffer significant negative tax consequences.
Required:
Ethically, should you inform the other party of the potential negative tax consequences of the proposed transaction?
Answer:
No
Explanation:
In this scenario, you are acting as a fiduciary to Blair Burke. This means that you have an obligation to Blair Burke and every decision that you make needs to be in his/her best interest. Therefore, you should not inform the other party about the negative tax consequences. That is a job for the other individual's representative or fiduciary to handle and advise their client. Informing the other party could jeopardize the deal and cost your client an opportunity/money which would go against their best interest.
(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation
Stupendous Productions, Inc. again this year want to put on its Rock-and-Roll Revival, a two-week fesitval with some of the greatest acts in the music industry, on your land. You are not sure you want to allow Stupendous Productions, Inc. to put on the festival. Stupendous is threatening legal action. What should Stupendous ask the Court to find?A. A prescriptive easementB. An implied license base upon prior useC. Breach of contractD. None of the above
Answer:
A. A prescriptive easement
Explanation:
A prescriptive easement is defined as the right of a person to use another person's property for a legally defined period of time.
This does not confer ownership to the user only the right to use the land.
In the given scenario Stupendous Productions, Inc. again this year want to put on its Rock-and-Roll Revival, a two-week fesitval with some of the greatest acts in the music industry, on your land.
Since they had used the land before, in court they can ask for a prescriptive easement to use the land for the concert