Martinez Corporation purchased machinery on January 1, 2022, at a cost of $268,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $31,800. The company is considering different depreciation methods that could be used for financial reporting purposes.
(SEE PICTURE)
Answers
Answer:
see below
Explanation:
1. Depreciation using the straight-line method.
Under the straight-line method, depreciation is a constant figure in every year of an asset's useful life.
The calculation of depreciation expense is by establishing the depreciable amount, which is the asset cost minus salvage value.
Depreciable amount = Asset cost - Salvage value.
In this case
Depreciable amount = $268,000 - $31,800
=$236,200
The depreciation rate = 1/4 x 100 = 25%
Depreciation per year
=25/100 x $236,200
=$59,050
year Depreciable cost rate Amount
2022 $236,200 25% $59,050
2023 $236,200 25% $59,050
2024 $236,200 25% $59,050
2025 $236,200 25% $59,050
2. Depreciation under the double-declining method.
The double-declining method uses twice the rate of the straight-line depreciation method.
The depreciation rate for the straight-line method is 25%, double-declining will use 50%. The salvage value is $31,800. The asset is depreciated until the salvage value is achieved.
year Depreciable cost rate Amount
2022 $268,000 50% $134,000
2023 $134,000 50% $67,000
2024 $67,000 50% $33,500
2024 $33,500 - $1,700
Balance : salvage value of $31,800
b The straight-line method would have the highest income reported in 2022. It reports less depreciation expense.
c. both Methods will report the same amount of income over the 4 year period.
Related Questions
If a check correctly written and paid by the bank for $635 is incorrectly recorded on the company's books for $653, the appropriate treatment on the bank reconciliation would be to:_______
a. add $45 to the book's balance.
b. deduct $549 from the book's balance.
c. subtract $45 from the book's balance.
d. deduct $45 from the bank's balance.
Answers
Answer:
a. add $45 to the book's balance
Explanation:
In a situation where a check which was correctly written and as well paid by the bank for the amount of $638 was incorrectly recorded as the amount of $683 on the company's books which means that the appropriate treatment on the bank reconciliation statement would be to add the amount of $45 ( $683-$638) to the book's balance.
A company will sell N units of a product after spending $x thousand in advertising, as given by N = 60x - x^2 5 \leq x \leq 30approximately what increase in sales will result by increasing the advertising budget from $10,000 to $11,000 and from $20,000 to $21,000?
Answers
Answer:
Explanation:
Given that:
[tex]N(x) = 60 x - x^2[/tex] where; 5 ≤ x ≤ 30
SO by increasing the advertising budget from 10,000 to 11000; the budget is increased from 10 to 11 since x is in thousands.
∴
Increase in sales = N(x₂) - N(x₁)
Increase in sales = N(11) -N(10)
Increase in sales = (60(11)-11²) - (60(10) -10²)
Increase in sales = (660 - 121) - (600 - 100)
Increase in sales = 539 - 500
Increase in sales = 39 units
By increasing the advertising budget from 20,000 to 21000; the budget is increased from 20 to 21 since x is in thousands.
∴
Increase in sales = N(x₂) - N(x₁)
Increase in sales = N(21) -N(20)
Increase in sales = (60(21)-21²) - (60(20) -20²)
Increase in sales = (1260 - 441) - (1200 - 400)
Increase in sales = 819 - 800
Increase in sales = 19 units
1. Why does Sutherland argue that businesses need to think about the small stuff rather than the big, splashy things?
2. Why do you think the small stuff makes such a difference for businesses?
3. Think about the business and products that you use or are familiar with. What is one "small stuff" that you could change or improve on one of them to make it more functional or better? Describe the product/service and the change that you would make.
Answers
Hello. You did not enter the text to which this question refers. For that reason, the answers may have inaccuracies in accuracy, but I hope it helped you.
1. Because little things are the basis for big things to happen. The little things are the details, which we often overlook, but which are extremely important for the smooth running of a company. Big, flashy things can be positive factors, but these things need to be composed of details that are small things that bring great results and need to be considered carefully.
2. Because they are unnoticed, but active. When we do not pay attention to them, they act without administration and regulation and can assume very disadvantageous positions, so it is necessary to note and regulate them to act according to the necessary control.
3. My mom runs a handbag store and runs events every season to showcase new trends. The event is a great thing, but it is full of small things (the details) that are of great importance for the success of the event. Among these small things, one that I would like to change is the cooling of the environment. As we live in a hot climate, we need to cool our warehouse during the event. We use fans, but I recognize that this detail should change and that change would bring more customers. That's because the fan messes up the customers' hair, making them uncomfortable. This is a small thing, but very important.
Griggs Pharmaceuticals entered into a licensing agreement with Lake Superior Lab for a new drug under development. Griggs will receive $8,100,000 if the new drug receives FDA approval. Based on prior approval, Griggs determines that it is 85% likely that the drug will gain approval. The transaction price of this arrangement should be:______.a. $8,100,000.b. $6,885,000.c. $1,215,000.d. $0 until approval is received.
Answers
Answer:
$8,100,000
Explanation:
Based on the information given we were told that the Pharmaceuticals company had a licensing agreement with another company which is Superior Lab for the purpose of a new drug which is under development in which Griggs company will receive the amount of $8,100,000 assuming the new drug receives FDA approval which means that the transaction price of arrangement should be the amount of $8,100,000 that will be receiving by Griggs company assuming the new drug receives FDA approval.
Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February.
Fixed Element per Month Variable Element per Container Refurbished Actual Total for February
Revenue $3,800 $123,400
Employee salaries and wages $40,000 $1,100 $73,800
Refurbishing materials $700 $21,800
Other expenses $29,700 $28,800
When the company prepared its planning budget at the beginning of July, it assumed that 37 containers would have been refurbished. However, 32 containers were actually refurbished during the month. The revenue variance in the Revenue and Spending Variances column of a performance report comparing actual results to the flexible budget for July would have been closest to: ________
Answers
Answer:
Wyzard Corporation
The revenue variance in the Revenue and Spending Variances column of a performance report comparing actual results to the flexible budget for July would have been closest to: ________
$1,800 F
Explanation:
a) Data and Calculations:
Fixed Element Variable Element Actual Total
per Month per Container for February
Refurbished
Revenue $3,800 $123,400
Employee salaries and wages $40,000 $1,100 $73,800
Refurbishing materials $700 $21,800
Other expenses $29,700 $28,800
Revenue variance
Budgeted revenue (flexible) = $121,600 ($3,800 * 32)
Actual revenue 123,400
Variance $1,800
One of your team members is struggling with preparation of balance sheet and he needs your assistance in completing it. He has come up with following missing information. You are required to complete this Balance sheet.
Assets Liabilities & Equity
Cash $ 100,000 Current Liabilities
Receivables Long Term Debt
Inventory Total Debt
Plant Common Equity $ 600,000
Total Assets Total Claims
Additional Information:
Current Ratio is 2.5 ; Average Collection Period is 54 days ; Total Debt to Total Assets 40 percent ; Total Asset Turnover is 2 ; Inventory Turnover 5.
Answers
Answer:
Balance sheet
Cash $100,000 Current Liabilities $320,000
Receivables $300,000 Long Term Debt $80,000
Inventory $400,000 Total Debt $400,000
Plant $200,000 Common Equity $600,000
Total Assets $1,000,000 Total Claims $1,000,000
Explanation:
a) Total Debt to Total Assets 40 percent:
This means that Equity = 60% (100 - 40%)
If Equity is 60% = $600,000, total claims or assets will be equal to $600,000/60% = $1,000,000
Therefore, total debt = $400,000 (40% of $1,000,000)
b) Total Asset Turnover is 2:
If total assets = $1,000,000 and the total asset turnover is 2 or Turnover/Assets = 2, where total assets = $1,000,000,
Therefore, Turnover = $2,000,000 ($1,000,000 * 2)
c) Inventory Turnover is 5:
Inventory Turnover = Turnover/Inventory = 5
= $2,000,000/Inventory = 5
Inventory = $2,000,000/5 = $400,000
d) Average Collection Period is 54 days:
= Accounts Receivable/Sales x 365 = 54
Accounts Receivable = $2,000,000/365 * 54 = $296,000 or approximately $300,000
Current assets:
Cash = $100,000
Receivables $300,000
Inventory = $400,000
Total = $800,000
e) Current liabilities = Current assets/2.5
= $800,000/2.5
= $320,000
f) Plant = Total assets - current assets
= $1,000,000 - $800,000
= $200,000
g) Long term debt = Total debt - Current liabilities
= $400,000 - $320,000
= $80,000
Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese yen forward. The current spot rate of the yen is .0089 USD/JPY, while the forward rate is .0095 USD/JPY. You expect the spot rate in 60 days to be .0090 USD/JPY. How many dollars will you receive for the 5,000,000 yen 60 days from now?
Answers
Answer:
$47,500
Explanation:
Calculation for How many dollars will you receive
Using this formula
Dollar to receive=Expected Japanese yen×Forward rate
Let plug in the formula
Dollar to receive= ¥5,000,000 x $.0095/¥
Dollar to receive= $47,500
Therefore the amount of dollars will you receive will be $47,500
Squid Roe, Inc.'s $48,000 sushi bar was originally expected to be used for eight years with no residual value. Depreciation on the bar was $6,000 per year for the past two years. In the third year, management changed the estimated life of the bar to be a total of only six years instead of eight. What should Squid Roe do?
Answers
Answer:
Squid Roe should change annual depreciation expense to $9,000 per from year 3 through year 6.
Explanation:
The depreciation expense will have to change from year 3 through year 6 as a result of change from eight years to six years as follows:
Asset cost = $48,000
Depreciation expense for first two years = $6,000 * 2 = $12,000
Net book value after 2 years = Asset cost - Depreciation expense for first two years = $48,000 - $12,000 = $36,000
Remaining years after 2 years = 6 - 2 = 4
New annual depreciation expense = Net book value after 2 years / Remaining years after 2 years = $36,000 / 4 = $9,000
Therefore, Squid Roe should change annual depreciation expense to $9,000 per from year 3 through year 6.
Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $49,800. She has $820 per month of other debt and expects her property taxes and homeowners insurance to cost $270 per month. She knows she can get a 8.50%, 30-year mortgage so that her mortgage payment factor is $7.69. She expects to make a 25% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)
a) $21,110
b) $253,316
c) $63,329
d) $84,439
e) $48,710
Answers
Answer:
d) $84,439
Explanation:
We can use the rule of 28/36 to calculate Michelle's affordable home purchase. She should only spend up to 28% of her monthly income on housing expenses and up to 36% of her monthly income paying for debt service.
monthly salary = $49,800 / 12 = $4,150
her total monthly amount to pay for debt service = $4,150 x 36% = $1,494
she is already paying $820 per month for other debts, so her monthly payment should be less than: $1,494 - $820 = $674
her total monthly amount to pay for housing expense = $4,150 x 28% = $1,162
she is planning on paying $270 in related house expenses, so her monthly payment should be less than: $1,162 - $270 = $892
out of the five options, Michelle cannot afford to buy the $253,316 house, but she can afford to buy the $84,439 house.
[($21,110 x 0.75) / $1,000] x 7.69 = $121.75 monthly payment
[($253,316 x 0.75) / $1,000] x 7.69 = $1,461 monthly payment
[($63,329 x 0.75) / $1,000] x 7.69 = $365.25 monthly payment
[($84,439 x 0.75) / $1,000] x 7.69 = $487 monthly payment
[($48,710 x 0.75) / $1,000] x 7.69 = $280.93 monthly payment
The market risk premium is 9.0%, and the risk-free rate is 5.0%. If the expected return on a bond is 9.5%, what is its beta?
Answers
Answer:
The beta is 1
Explanation:
The computation of beta using the CAPM model is shown below:
As we know that
Expected rate of return = Risk free rate of return + Beta × Market risk premium
9.5% = 5% + Beta × 9.0%
9.5% - 5% = Beta × 9.0%
9.0% = Beta × 9.0%
So, the beta is 1
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Banana Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorrectly and the 2020 ending inventory was overstated by $6,000. What would be the effect of this error in ending inventory?
Answers
Answer: a. 2020 net income will be overstated
Explanation:
Ending Inventory is used in the calculation of Cost of Goods sold. It is subtracted from the Cost of Goods sold so if it is Overstated then that means that Cost of Goods sold is understated.
Cost of Goods sold is subtracted from Revenue to find income so if Cost of Goods sold is Understated then Net Income will be Overstated in turn.
XYZ Corporation, whose common stock is currently selling for $40 per share, is having a rights offering. The terms of the offering require 10 rights plus $35 to subscribe to one share of stock. Compute the theoretical value of a right before the ex-rights date.
Answers
Answer:
$0.45
Explanation:
Computation for the theoretical value of a right before the ex-rights date
Using this formula
Theoretical value=(Common stock-Required offering subscription shares)÷(Offering require right+1)
Let plug in the formula
Theoretical value= ($40 ‒ $35) ÷ (10+1)
Theoretical value= $5.00 ÷ 11
Theoretical value=$0.45
Therefore the theoretical value of a right before the ex-rights date will be $0.45
The following information is available for Randall Inc.
Accounts receivable $2,400
Cash $6,250
Accounts payable 3,700
Supplies 3,760
Interest payable 580
Unearned service revenue 850
Salaries and wages expense 4,500
Salaries and wages payable 745
Notes payable 31,500
Depreciation expense 670
Common stock 50,700
Equipment (net) 108,200
Inventory 2,840
Using the information above, prepare a balance sheet as of December 31, 2022. (Hint: Solve for the missing retained earnings amount after first determining total assets and total liabilities.) (List assets in order of liquidity.)
Answers
Answer:
Retained earning $35,375
Explanation:
Randall Inc.
Balance sheet as of December 31, 2022.
Current assets
Cash $6,250
Accounts receivables $2,400
Inventory $2,840
Supplies $3,760
Fixed asset
Equipment(net) $108,200
Total assets $123,450
Liabilities and Stockholders' equity
Liabilities
Notes payable $31,500
Accounts payable $3,700
Unearned service revenue $850
Salaries and wages payable $745
Interest payable $580
Total liabilities $37,375
Stockholders' equity
Common stock $50,700
*Retained earnings $35,375
Total stockholder's equity $86,075
Total liabilities and stockholder's equity $123,450
*Note: The value for retained earning is gotten by;
Retained earning = Total assets - [Common stock + Total liabilities]
Retained earnings = $123,450 - [$50,700 + $37,375]
Retained earnings = $35,375
Retained earning $35,375
Randall Inc.
Then Balance sheet as of December 31, 2022.
the Current assets are:
Cash $6,250
Accounts receivables $2,400
Inventory $2,840
Supplies $3,760
Fixed assetEquipment(net) $108,200
Total assets $123,450
also, Liabilities and Stockholders' equity
Liabilities
Notes payable $31,500
Accounts payable $3,700
Unearned service revenue $850
Salaries and wages payable $745
Interest payable $580
Then the Total liabilities is $37,375
Stockholders' equity
Common stock $50,700
*Retained earnings $35,375
Then the Total stockholder's equity is $86,075
After that the Total liabilities and stockholder's equity is $123,450
*Note that: The value for retained earning is gotten by;
Then Retained earning is = Total assets - [Common stock + Total liabilities]
After that Retained earnings = $123,450 - [$50,700 + $37,375]
Thus, Retained earnings = $35,375
Find out more information about fixed asset here:
https://brainly.com/question/15568817
Post Company lends Blue Company $40,000 on April 1, accepting a 4 month, 4.5% interest note. Post Company prepares financial statements on April 30. What adjusting entry should they make?
Debit note receivable $40,000; Credit Cash $40,000
Debit interest receivable $150; Credit interest revenue $150
Debit cash $150; Credit interest revenue $150
Debit interest receivable $600; Credit interest revenue $600
Answers
Answer:Debit interest receivable $150; Credit interest revenue $150--- B
Explanation:
Interest Receivable = Principal x Rate x Time ( from April 2st to 31st--Imonth)
$40,000 x 4.5% x 1/12
= $ 150
Journal entry to record amount on interest note on April 31st
Date Account titles Debit Credit
April 31st interest receivable $150
interest revenue $150
Which company is most easily able to outsource its operations and have its good or service produced in another country
Answers
Answer:
d. Queen’s Quilts
Explanation:
Options are "Hannah’s Hair Salons, Busker Baseball Team , Darling Dentistry , Penelope’s Fresh Pretzels , Queen’s Quilts"
a. Salons, Dentistry : these are services which cannot be outsourced partly or fully.
b. Baseball team: It is a sports team which cannot operate partly in another country.
c. Pretzels: These are freshly baked pastries or food items which needs to be made fresh , so cannot be outsourced.
d. Quilts: These are textile which can be produced in countries having cheap labor .
On November 1, Orpheum Company accepted a $12,400, 90-day, 8% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?
Answers
Answer:
Dr Note Receivable $12,400
Cr Accounts Receivable $12,400
Explanation:
Based on the information given we were told that on November 1 the company accepted a note from a customer in order to help settle the customer account of the amount of $12,400 which means that the Journal entry that should be made on the November 1 to record the acceptance of the note will be :
Dr Note Receivable $12,400
Cr Accounts Receivable $12,400
Consider a production line with three stations. The first station can process a unit in 10 minutes. The second station has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). The third station can process a unit in 8 minutes. Which station is the bottleneck station? a. station 1 b. station 2 c. station 3
Answers
Answer:
a. station 1
Explanation:
A bottleneck is basically the place or station where the production process is congested or delayed because that station lacks the capacity to process work. Bottlenecks are where queues are formed, and the whole process gets delayed.
In this case, station 1 can process 6 units per hour, station 2 can process 10 units per hour and station 3 can process 7.5 units per hour. The station that processes the least number of units is station 1, so that is the station that limits the whole production system. In this case, due to station 1's low processing capacity, a lot of idle time exists in the other 2 stations.
Marigold Corp. purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $86000. The December 31, 2020 adjusting entry is:____.a) debit Interest Expense and credit Interest Payable, $5,400.
b) debit Interest Expense and credit Interest Payable, $900.
c) debit Interest Expense and credit Interest Payable, $1,350.
d) debit Interest Expense and credit Cash, $900.
Answers
The options provided in the question are incorrect.
Answer:
31 Dec 2021
Interest expense 1290 Dr
Interest Payable 1290 Cr
Explanation:
Under the accrual basis or principle of accounting, we match the revenue with the expenses and record the transactions in the period to which they relate to rather than when the cash is paid or received. This means that the interest payment that is accrued for time period relating to this year should be recorded as an expense in the current period and as a liability as it will be paid in the next period. Thus, the interest on the note relating to 2 months from November 2020 to December 2020 will be recorded as follows,
Interest expense = 86000 * 0.09 * 2/12 = 1290
31 Dec 2021
Interest expense 1290 Dr
Interest Payable 1290 Cr
Why is it relevant that finance tends to attract large amounts of money?
Answers
Explanation:
An organization to be successful in the long term and competitive in the market, needs financial capital to carry out its activities, for this they open the company's capital to investors, who are the capital holders willing to inject capital into the company and receive dividends business, thus becoming a partner of that company.
It is essential that companies attract investors willing to inject a large amount into the business, as this benefits both, since a company with larger amounts of assets will produce more, have its obligations up to date and remain better positioned in the market.
To attract investors to a company, it is necessary that the company has a good reputation in the market and there is a favorable negotiation process, where there is a demonstration of results and the opportunity that the investor will have to invest his money in an organization that will generate profits.
Sudoku Company issues 26,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $374,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Answers
Answer:
Dr Land 230,000
Dr Building374,000
Cr Common stock $7 par value 182,000
Cr Paid-in capital in excess of parvalue, common stock 422,000
Explanation:
Preparation of the journal entry to record issuance of the stock in exchange for the land and building.
Dr Land 230,000
Dr Building374,000
Cr Common stock $7 par value 182,000
(26,000 shares x $7 par)
Cr Paid-in capital in excess of parvalue, common stock 422,000
Calculation for Paid-in capital in excess of par value, common stock
Paid-in capital in excess of par value, common stock=(230,000 + 374,000) – 182,000
Paid-in capital in excess of par value, common stock=604,000-182,000
Paid-in capital in excess of par value, common stock= 422,000
Which of the following is a type of liability?
Answers
Answer:
Accounts Payable
Explanation:
Accounts Payable is the amount of money owed to its investors/creditors. Thus creating debt for the company, creating a liability.
From the below-mentioned research paragraph, extract the following information:
I. Identify the research gap.
II. Identify the research objective of the study.
III. On the basis of the research, the objective suggests the research question of the study.
IV. Identify the theory used in the study.
V. Suggest a title for this research paragraph.
Retaining employees is one of the critical issues faced by the organization all over the globe for many years, that how to retain some of the skilled and knowledgeable employees in the organization who can add value to their organizational performance. However, this worry is explained well enough by the cost that indulges to substitute employees who leave the organization and problems that they face while attracting and hiring a new employee. Now, in most of the countries, some employees could not be able to fill out some vacancies which are with higher difficulty is the real sad back in the development of their career. Therefore, in such a scenario, human resource management practices gain vital importance to assist in reducing turnover intentions. (Fabi, Lacoursiere & Raymond, 2015)
In previous studies, AMO model (ability, motivation, and opportunity) the human resource practices were studied as in three other dimensions that are, the first bundle of the bundle of practice connected with the skill level of an employee, second bundle of practice was related with the motivation-enhancing and the third one was linked with the extent of opportunity one employee could get to contribute (Jiang, Lepak, Hu & Baer, 2012). Moreover, in this study, these 3 bundles of human resource practices are redefined as one set with the name of high-performance work practices. This research aims to study the impact of three sets of practices at the individual level on the employee intention to leave which explains a high-performance work system at the one side and employee intention to leave on the other side. Previously, researchers didn’t aim to study the whole effect of individual human resource practices on the employee quit intentions.
The banking sector of Pakistan is consists of thirty-one banks including five representing the public sector and four banks are from abroad, the remaining twenty-two banks are registered as private banks. Moreover, the majority of the banking business is derived from a few selected banks that have perfect competition among them. Six banks are having a major part of banking skills in Pakistan. Generally, these banks collectively hold 57% of deposits and contribute up to 53% of the economy of Pakistan. Additionally, the state bank of Pakistan is the regulatory authority of the banking sector in Pakistan, and further, it gives direction to commercial banks. Overall, the volume of this sector is on a larger scale but against 195 million of the population, only 43 million bank accounts are registered; this is considered a huge gap due to lack of technology knowledge, and some religious groups perceive the concept of conventional banking is against Sharia.
Answers
Answer:
Retaining employees is one of the critical issues faced by the organization all over the globe for many years is explained below in details.
Explanation:
The fundamental purpose of this research is to spin out the hollows recognized with measures for the dependability of delegates in the financial sector of Pakistan by examining the effect of an elite work structure (abilities growing, motivation upgrading, and opportunity upgrading) on operator goal to forget with the intermediary influence of procedural justice.
The investigation gap is how the banks in Pakistan going to continue the operators in the country and by employing what methods or models of research.
Answer-II
The primary investigation purpose is beyond, this investigation is zeroing in on the new concept of human asset the board practices. Before, we have seen.
This examination investigates the relationship between elite work structures on worker expectation to leave.
Answer-III
Opportunity promoting is commonly used with the AMO model, which is the proposed model of this examination however having said that open door as an independent variable changed client support directly with the interceding function of passionate performance in past research.
Answer-IV
This examination employs social trade theory, to quantify the problems concerning the standard for dependability in the monetary area of Pakistan.
Answer-V
"New Research to discover the worker maintenance in Pakistan banks"
Tommy, a teenage boy who earns money mowing lawns, observed that Thacker nearby property had become overgrown. Tommy decided to cut Thacker lawn for a reduced fee to encourage Thacker to become a regular customer. While mowing, Tommy saw Thacker come to the front window and wave from inside the house. Tommy returned Thacker’s wave and continued mowing. Upon completion of the job, Tommy knocked on the front door of Thacker’s home, expecting payment. Thacker refused to answer the door and shouted down from an upper story window: "I did not request you to cut my lawn and now you want me to pay you!"
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
B. An express contract was formed.
C. Both A and B.
D. No contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
A. Personal opinion.
B. Invitation to bid.
C. Product promotion advertisement.
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
A. Money/consideration to be paid.
B. Identification of the object or contract subject matter.
C. Description of parties.
D. All of the above.
4. Which is nota way that an offer can be terminated by action of the parties?
A. Offeror revokes (withdraws) offer after offeree’s acceptance.
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
C. The offeree rejects the offer.
D. The offeree counteroffers.
Answers
Answer:
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
D. All of the above.
4. Which is not a way that an offer can be terminated by action of the parties?
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
Explanation:
The contract existing between Tommy and Thacker can be implied or express. The legally-binding obligation that derives from the actions, conduct, or circumstances of Tommy and Thacker creates an implied contract with the same legal force as an express contract. On the other hand, an express contract is voluntarily entered into and agreed on verbally or in writing by two or more parties.
What is the present value of a $2,000 payment made in five years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answers
Answer:
PV= $1,299.86
Explanation:
Giving the following information:
Future Value ( FV)= $2,000
Number of periods (n)= five years
Discount rate (i)= 9% = 0.09
To calculate the present value (PV), we need to use the following formula:
PV= FV/(1+i)^n
PV= 2,000 / (1.09^5)
PV= $1,299.86
Hanson Inc. has the following variable manufacturing overhead standard to manufacture one Zippy:
1.5 standard hours per Zippy at $3.00 per direct labor hour
Last week, 1,550 hours were worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.
1. Hanson’s rate variance (VMRV) for variable manufacturing overhead for the week was:_______.
a. $465 unfavorable.
b. $400 favorable.
c. $335 unfavorable.
d. $300 favorable
2. Hanson’s efficiency variance (VMEV) for variable manufacturing overhead for the week was:______.
a. $435 unfavorable.
b. $435 favorable.
c. $150 unfavorable.
d. $150 favorable.
Answers
Answer:
Variable manufacturing overhead rate variance= $465 unfavorable
Variable overhead efficiency variance= $150 unfavorable
Explanation:
Giving the following information:
Standard:
1.5 standard hours per Zippy at $3.00 per direct labor hour
Actual:
1,550 hours to make
1,000 Zippies
$5,115 was spent
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 5,115/1,550= $3.3
Variable manufacturing overhead rate variance= (3 - 3.3)*1,550
Variable manufacturing overhead rate variance= $465 unfavorable
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3
Variable overhead efficiency variance= $150 unfavorable
Over a five-year period, (nominal) GDP in a nation increased from $10 trillion to $15 trillion, while the GDP price deflator increased from 100 to 125. Approximately how much is GDP in year five, stated in terms of year-one dollars?
Answers
Answer:
The GDP in year five, stated in terms of year-one dollars, is approximately $12 trillion.
Explanation:
This can be calculate using the following formula:
Real GDP in year five = Nominal GDP in year five / (GDP price deflator in year five / GDP price deflator in year-one) ................... (1)
Where;
Real GDP in year five = Amount of GDP in year five, stated in terms of year-one dollars = ?
Nominal GDP in year five = $15 trillion
GDP price deflator in year five = 125
GDP price deflator in year-one = 100
Substituting the into equation (1), we have:
Real GDP in year five = $15 / (125 / 100) = $15 / 1.25 = $12 trillion
Therefore, the GDP in year five, stated in terms of year-one dollars, is approximately $12 trillion.
Why should the people on the RA team be different from the people responsible for correcting deficiencies?a. to avoid potential losses.
b. to increase profitability.
c. to avoid conflicts of interest.
d. to increase survivability.
Answers
Answer:
The correct answer is the option C: To avoid conflicts of interest.
Explanation:
To begin with, the term of risk assesstment refers to the process of identifying and analyzing possible future threats that may cause harm to the individuals or the assets of the company and from there on to evalute possible solutions to those situation that the company does not want to. Moreover, the risk manager is the one who should take care of those aspects and therefore that an RA team is the one that is being under his commands and should focus on the fact of identifying and analyzing the problems as well as evaluating instead of correcting some of those deficiencies and therefore that they need to have a different mind in the theme because they need to avoid conflicts of interest with the other team that is responsible from correcting.
On June 8, Williams Company issued an $87,600, 9%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note?
Answers
Preparing an income and expense statement helps in answering the question, "Where does all my money go?" This statement takes __________and ___________subtracts to determine an individual's or a family's cash surplus or deficit situation.
Answers
Correct question read;
"This statement takes __________and subtracts_________ to determine an individual's or a family's cash surplus or deficit situation.
Answer:
note of income; the expenses
Explanation:
Remember, the income and expense statement as the name implies is a financial statement that takes note of all incomes into a financial account and then subtracting identified expenses from the income to determine if there was a loss or profit.
By following this method, one ultimately would be able to answer the question, "Where does all my money go?".
Gordon Company started operations on January 1 of the current year. It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions:
a. During the year, the company purchased office supplies that cost $2,300. At the end of the year, office supplies of $670 remained on hand.
b. On January 1 of the current year, the company purchased a special machine for cash at a cost of $23,500. The machine's cost is estimated to depreciate at $2,350 per year.
c. On July 1, the company paid cash of $840 for a two-year premium on an insurance policy on the machine; coverage began on July 1 of the current year.
Answers
Answer:
Gordon Company
Analysis of Transactions at December 31:
a. Office Supplies $670 (DR)
Office Supplies Expense $1,630 (DR)
b. Equipment $23,500 (DR)
Accumulated Depreciation on Equipment $2,350 (CR)
Depreciation Expense - Equipment $2,350 (DR)
c. Prepaid Insurance $630 (DR)
Insurance Expense $210 (DR)
Explanation:
1. The Office Supplies Account will be debited with $2,300 and credited with $1,630 ($2,300 - $670) as Office Supplies Expense (used supplies) for the year. This will leave a debit balance of $670 in the account.
2. The equipment account will be maintained at its cost, while a contra account (accumulated depreciation) is created to accumulate the depreciation expenses over the years. The useful life of the equipment is 10 years ($23,500/$2,350) with an annual depreciation expense of $2,350.
3. The Prepaid Insurance Account will be debited with $840 and credited with $210 ($840/4) representing Insurance that expired during the year for six months. The balance of $630 is carried forward for the remaining one and half years.