Answer:
A. Dr Bad debts expense $685
Cr Allowance for doubtful accounts $685
B. Dr Bad debts expense $1,391
Cr Allowance for doubtful accounts $1,391
Explanation:
A. Preparation of the year-end adjusting entry to record bad debt expense if the Allowance for Uncollectible Accounts has a $415 credit balance before the adjusting entry
Dr Bad debts expense $685
Cr Allowance for doubtful accounts $685
[(2%*$55,000)-$415]
($1100-$415)
B. Preparation of the year-end adjusting entry to record bad debt expense if the Allowance for Uncollectible Accounts has a $291 debit balance before the adjusting entry
Dr Bad debts expense $1,391
Cr Allowance for doubtful accounts $1,391
[(2%*$55,000)+$291]
($1100+$291)
g Suppose a central bank wants to increase its international reserves without changing the domestic money supply. It will Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a make an unsterilized purchase of foreign bonds. b make an unsterilized sale of foreign bonds. c make a sterilized purchase of foreign bonds. d make a sterilized sale of foreign bonds.
Answer:
c. make a sterilized purchase of foreign bonds.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.
Hence, a central bank can increase its international reserves without changing the domestic money supply by making a sterilized purchase of foreign bonds.
On January 1 of this year, Shannon Company completed the following transactions (assume a 8% annual interest rate):
a. Bought a delivery truck and agreed to pay $61,400 at the end of three years.
b. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying $30,000 immediately.
c. Established a savings account by depositing a single amount that will increase to $92,800 at the end of seven years.
d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,400 to a retired employee (payments starting December 31 of this year.
Required:
a. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.)
b. Which option for the office building results in the lowest present value?
c. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.)
d. What single sum must be deposited in the bank on January 1 of this year?
Answer:
a. The cost of the truck that should be recorded at the time of purchase is:
= $48,741.
b. The option of paying $11,400 annually for 3 years results in a PV of $29,379, which is lower than $30,000 paid immediately.
c. The single amount that must be deposited in this account on January 1 of this year is:
= $54,148.
d. The single sum that must be deposited in the bank on January 1 of this year to provide 8 equal annual year-end payments of $41,400 to a retired employee is:
= $237,910.85
Explanation:
a) Data and Calculations:
a. Bought a delivery truck and agreed to pay $61,400 at the end of three years.
From an online financial calculator:
(# of periods) 3
I/Y (Interest per year) 8
PMT (Periodic Payment) 0
FV (Future Value) $61400
Results
PV = $48,741.30
Total Interest $12,658.70
b. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying $30,000 immediately.
From an online financial calculator:
N (# of periods) 3
I/Y (Interest per year) 8
PMT (Periodic Payment) $11,400
FV (Future Value) 0
Results
PV = $29,378.91
Sum of all periodic payments $34,200.00
Total Interest $4,821.09
c. Established a savings account by depositing a single amount that will increase to $92,800 at the end of seven years.
From an online financial calculator:
N (# of periods) 7
I/Y (Interest per year) 8
PMT (Periodic Payment) 0
FV (Future Value) $92,800
Results
PV = $54,147.91
Total Interest $38,652.09
d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,400 to a retired employee (payments starting December 31 of this year.
From an online financial calculator:
N (# of periods) 8
I/Y (Interest per year) 8
PMT (Periodic Payment) $41,400
FV (Future Value) 0
Results
PV = $237,910.85
Sum of all periodic payments $331,200.00
Total Interest $93,289.15
9. The NOI for a small income property is expected to be $150,000 for the first year. Financing will be based on a 1.2 DCR applied to the first year NOI, will have a 10 percent interest rate, and will be amortized over 20 years with monthly payments. The NOI will increase 3 percent per year after the first year. The investor expects to hold the property for five years. The resale price is estimated by applying a 9 percent terminal capitalization rate to the sixth-year NOI. Investors require a 12 percent rate of return on equity (equity yield rate) for this type of property. a. What is the present value of the equity interest in the property
Answer:
a. The present value of the equity interest in the property is:
= PV = $1,096,338
Explanation:
a) Data and Calculations:
Debt Coverage Ratio = 1.2
Debt interest = $150,000/1.2 = $125,000
Interest rate = 10%
Therefore, total financing or debt obtained = $125,000/10% = $1,250,000
NOI for the first year = $150,000
NOI for other years = 3% per year after the first year.
Holding period of property = 5 years
Therefore, expected NOIs for the second to fifth year are calculated as follows:
Net operating income (NOI):
First Year = $150,000
Second Year = $154,500 ($150,000 * 1.03)
Third Year = $159,135 ($154,500 * 1.03)
Fourth Year = $163,909 ($159,135 * 1.03)
Fifth Year = $168,826 ($163,909 * 1.03)
Sixth year NOI = $173,891 ($168,826 * 1.03)
Terminal capitalization rate = 9%
Resale price = NOI of the sixth year/Terminal cap rate
= $173,891/9% = $1,932,122
The present value of the equity interest in the property:
From an online financial calculator:
N (# of periods) 5
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) $1,932,122
Results
PV = $1,096,337.91
Total Interest $835,784.09
Example of how this skill can make you valuable to potential employer of self and social awareness
Answer:Self-awareness can help improve your career because it makes it easier to understand how others see you. This is key for success. It's essential to be aware of the perceptions of higher-ups, of course, but it's also important to know how you come off when you're working in a leadership capacity.
Explanation: trust
The followings are the example of how this skill can make you valuable to a potential employer of self and social awareness:
recognizing your feelings and your emotions.Identify your main coping techniques.defining your own opinions independently of outside influences.putting your happiness and purpose first.recognizing your advantages and weaknesses.What is Social Awareness?The capacity to understand others' viewpoints and have empathy for them, even those from different cultures and origins. the capacity to perceive community resources and supports, as well as to comprehend social and ethical norms for behavior.
A more peaceful workplace can be achieved through developing your self-awareness so that you can interact with coworkers, direct reports, and superiors more effectively. You can view problems more objectively and consider your possible contribution to their development. You pay attention and live in the present.
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Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $ a year, and he pays workers $ in wages. In return, he produces baskets of peaches per year, which sell for $ each. Suppose the interest rate on savings is percent and that the farmer could otherwise have earned $ as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $ nothing. (Enter your response as an integer.)
Answer:
$-675,000
Explanation:
here is the full question
Suppose a farmer in Georgia begins to grow peaches. He uses$1,000,000 in savings to purchase land, he rents equipment for$80,000 a year, and he pays workers $130,000 in wages. Inreturn, he produces 200,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned $35,000 as a shoe salesman.
Economic profit = accounting profit - implicit cost
Accounting profit= total revenue - explicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
total explicit cost = (1,000,000 + $80,000 + $130,000) = $1,210,000
total revenue = price x output
$3 x 200,000 = $600,000
Accounting profit = $600,000 - $1,210,000 = $-610,000
implicit cost = amount he could have earned working as a sales man = $35,000
Interest on loan = 0.03 x 1,00,000 = 30,000
total = 35,000 + 30,000 = 65,000
economic profit = $-610,000 - 65,000 = $-675,000
The peach farmer earns economic profit of $
Problem 9-3 Withholding Methods (LO 9.1) Sophie is a single taxpayer. For the first payroll period in July 2020, she is paid wages of $2,200 monthly. Sophie claims one allowance on her pre-2020 Form W-4. Click here to access the withholding tables. IRS Publication 15-T, Federal Income Tax Withholding Method Pay period 2020 Allowance Amount Weekly $ 83 Biweekly 165 Semimonthly 179 Monthly 358 Quarterly 1,075 Semiannually 2,150 Annually 4,300 Round intermediate computations and your final answer to two decimal places. a. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: $fill in the blank 276f67fd3f97003_1 b. Use the wage bracket method to determine the amount of Sophie's withholding for the same period. $fill in the blank 92701d098054043_1 c. Use the percentage method assuming Sophie completed a 2020 Form W-4 and checked only the single box in Step 1(c). $fill in the blank 75763bf84f9d024_1 d. Use the wage bracket method using the same assumptions in part c of this question. $fill in the blank 73d4ce04b013fc1_1
A bicameral legislature is made up of how many bodies?
O one
O two
O three
O four
Answer:
two
Explanation:
A bicameral legislature is made up of two bodies. Thus, option B is the correct option.
What is a bicameral legislature?A bicameral legislature, which is distinguished by having two distinct assemblies, chambers, or houses, is one that practices bicameralism. Unicameralism, in which all members discuss and vote as a single body, is distinct from bicameralism. Bicameralism will be used by about 40% of national legislatures throughout the world as of 2022, compared to 60% at the national level and significantly more at the subnational level for unicameralism.
The techniques used to elect or choose the members of the two chambers sometimes varied from jurisdiction to jurisdiction. This frequently results in the membership of the two chambers being significantly different. Primary legislation frequently has to be approved by majorities in both houses of the legislature in order to be passed. If this is the case, the legislature may be seen as the epitome of bicameralism.
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Suppose Nick would like to invest $10,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as___________ finance. Buying a share of TouchTech stock would give Nick______________ the firm. In the event that TouchTech runs into financial difficulty, ______________will be paid first.
Suppose Nick decides to buy 100 shares of TouchTech stock.
Which of the following statements are correct?
a. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Nick's shares to decline.
b. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.
c. An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.
d. Alternatively, Nick could invest by purchasing bonds issued by the government of Japan.
Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a ___________ interest rate than a bond issued by the government of Japan.
Answer:
1. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as___project__ finance. Buying a share of TouchTech stock would give Nick____equity interest in____ the firm. In the event that TouchTech runs into financial difficulty, _____bonds_____will be paid first.
2. Correct statements:
a. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Nick's shares to decline.
c. An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.
d. Alternatively, Nick could invest by purchasing bonds issued by the government of Japan.
3. Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a ___higher__ interest rate than a bond issued by the government of Japan.
Explanation:
When Nick purchases stock in the private company, he invests in the equity of the company. Project finance can be done through equity financing or debt financing. Equity financing gives Nick an equity interest in the TouchTech and a share in the decision-making of the business, whereas debt financing pays a fixed amount of interest periodically without a share in the decision-making of the company.
An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
1. $7,000 of merchandise inventory was ordered on September 2, 20092. $3,000 of this merchandise was received on September 5, 20093. On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.4. On September 10, 2009, $800 of the merchandise was returned to the seller.Based on the above information, what would be recorded as the cash payment if the invoice is paid within the discount period
Answer:
The cash payment to be recorded is:
= $2,376.50.
Explanation:
a) Data and Calculations:
September 2, 2009: Merchandise order = $7,000
September 5, 2009: Merchandise received = $3,000
September 6, 2009: Freight-in 250
Terms of trade 3/10, net 30
September 10, 2009: Return of merchandise (800)
Total value of merchandise = $2,450
Cash discount (3% of $2,450) = 73.50
Cash payment = $2,376.50
b) The trade terms of 3/10, net 30 means that a discount of 3% is allowed when payment is made within 10 days of the purchase date or on or before September 11, 2009. This amounts to $73.50. Therefore, the net amount to be paid is $2,376.50 after deducting the calculated discount amount.
The following information was obtained from the records of Appleton Corporation during 2018.
Manufacturing Overhead was applied at a rate of 100 percent of direct labor dollars.
Beginning value of inventory follows:
Beginning Work in Process Inventory, $9,000.
Beginning Finished Goods Inventory, $12,000.
During the period, Work in Process Inventory decreased by 20 percent, and Finished Goods Inventory increased by 25 percent.
Actual manufacturing overhead costs were $88,000.
Sales were $418,000
Adjusted Cost of Goods Sold was $302,000.
Required:
Use the preceding information to find the missing values in the following table:
Item Amount
Direct Materials Used
Direct labor
Manufacturing Overhead Applied 85,000
Total Current Manufactoring Costs
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory
Cost of goods manufactured
Plus: Beginning finished goos inventory 12,000
Less: Ending Finished goods inventory
Unadjusted cost of goods sold
Overhead Adjustment
Adjusted Cost of Goods Sold $319,000
Answer:
See below
Explanation:
Items
Direct materials used
($300,200 - $85,000 - $85,000)
$130,200
Direct labor ($85,000/100%)
$85,000
Manufacturing overhead applied $85,000
Total current manufacturing costs
($302,000 + $7,200 - $9,000)
$300,200
Plus: Beginning work in process inventory
$9,000
Less: Ending work in process inventory
($9,000 × 80%)
$7,200
Cost of goods manufactured
($299,000 + $15,000 - $12,000)
$302,000
Plus: Beginning finished goods inventory
$12,000
Less: Ending finished goods inventory
($12,000 × 125%)
$15,000
Unadjusted cost of goods sold ($302,000 - $3,000)
$299,000
Add: Overhead adjustment ($88,000 - $85,000)
$3,000
Adjusted cost of goods sold
$302,000
Using the preceding information to find the missing values in the following table, titled Production Cost Schedule, is as below.
What is a Production Cost Schedule?A production cost schedule is a cost schedule or table that shows the total costs of production at different levels of input and output.
For example, the missing values in the Production Cost Schedule are as follows:
Direct Materials Used $152,000
Direct labor 85,000
Manufacturing Overhead Applied 85,000
Total Current Manufacturing Costs 322,000
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory 12,000
Cost of goods manufactured 319,000
Plus: Beginning finished goods inventory 12,000
Less: Ending Finished goods inventory 15,000
Unadjusted cost of goods sold 316,000
Overhead Adjustment 3,000
Adjusted Cost of Goods Sold $319,000
Data and Calculations:Actual manufacturing overhead costs = $88,000
Adjusted cost of goods sold = $302,000
Work in ProcessBeginning Balance $9,000
Ending balance = $10,800 ($9,000 x 1.20)
Finished GoodsBeginning Balance $12,000
Ending balance = $15,000 ($12,000 x 1.25)
Missing Values TableDirect Materials Used 152,000 ($322,000 - $85,000 - $85,000)
Direct labor 85,000 ($85,000/100%)
Manufacturing Overhead Applied 85,000
Total Current Manufactoring Costs 322,000 ($319,000 + $12,000 - 9,000)
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory 12,000
Cost of goods manufactured 319,000 ($316,000 +$15,000 - $12,000)
Plus: Beginning finished goods inventory 12,000
Less: Ending Finished goods inventory 15,000
Unadjusted cost of goods sold 316,000 ($319,000 - $3,000)
Overhead Adjustment 3,000 ($88,000 - $85,000)
Adjusted Cost of Goods Sold $319,000
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Maria works as a farmer in a rural area during a recession. She may
earn less money temporarily
have a variety of other job opportunities close by
ask for a tax exemption for two years
receive a salary increase yearly
Answer:
Maria will earn less money temporarily
Explanation:
Maria works as a farmer in a rural area during a recession will lead her to earn less money temporarily. The correct option is the first one.
What is recession ?Recession refers to the time period in which thew trade declines and industrial activity reduces. Recession is identified by the fall in the GDP.
In the trade cycle there are four phases which are boom, recession, depression and recovery. At the time of the recession, there is a high rate of inflation in the market and people stops purchasing the product.
It leads to the flow in economic activities. In the case of the Maria due to decrease in the level of production she will produce less and it will lead to ear her less money.
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Which of the following statements is true of raw materials?
Can you put the complete question, please?
Raw materials include products used in producing other products. They are the the input goods or inventory that a company needs to manufacture its products.
What is a raw material?A raw material, which is also referred to as a feedstock, an unprocessed material, or a primary commodity, is a kind of fundamental resource that is used to make other materials, such as intermediate materials that will be used as feedstock for finished items in the future.
Materials or substances used in the initial stages of producing or manufacturing items are known as raw materials. On commodity exchanges around the world, raw materials are commodities that are purchased and sold. Because raw materials are production factors, businesses trade them on the factor market.
Therefore, raw materials are directly used in any manufacturing process.
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Your question is incomplete, but most probably the full question was,
a. They are large capital purchases designed for a long productive life.
b. They include products used in producing other products.
c. They are the goods and services that hold little interest for consumers.
d. They are categorized as consumer products.
l Englehard purchases a slurry-based separator for the mining of clay that costs $700,000 and has an estimated useful life of 10 years, a MACRS-GDS property class of 7 years, and an estimated salvage value after 10 years of $75,000. It was fi nanced using a $200,000 down payment and a loan of $500,000 over a period of 5 years with interest at 10%. Loan payments are made in equal annual amounts (principal plus interest) over the 5 years. a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year
Answer:
The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Explanation:
The amount of the MACRS-GDS depreciation taken in the 3rd year can be calculated as follows:
Cost of the slurry-based separator = $700,000
Third year depreciation rate for a MACRS-GDS property class of 7 years from the MACRS-GDS table = 17.49%
MACRS-GDS depreciation in the 3rd year = $700,000 * 17.49% = $122,430
Therefore, The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Suppose that Expresso and Beantown are the only two firms that sell coffee. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:
Beantown
Advertise Doesn't Advertise
Expresso Advertise 8, 8 15, 2
Doesn't Advertise 2, 15 9, 9
For example, the upper right cell shows that if Expresso advertises and Beantown doesn't advertise, Expresso will make a profit of $15 million, and Beantown will make a profit of $2 million. Assume this is a simultaneous game and that Expresso and Beantown are both profit-maximizing firms.
If Expresso decides to advertise, it will earn a profit of $ ____________ million if Beantown advertises and a profit of $ _________ million if Beantown does not advertise. If Expresso decides not to advertise, it will earn a profit of $ ____________ million if Beantown advertises and a profit of $_________ million if Beantown does not advertise.
Answer:
$15 Million
$8 Million
Explanation:
Payoff Matrix is as follows: Beantown
Expresso Advertise = Advertise Doesn't Advertise
(8,8) (15,2)
Doesn't Advertise (2,15) (9,9)
If Expresso decides to advertise, it will earn a profit of $2 million if Beantown
advertises, it follows the strategy (Advertise, Advertise)
He earns a profit of $15 million if Beantown does not Advertise, here it follows the strategy (Advertise, Doesn't Advertise).
Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice consider in advance actions that can be taken should an investment not develop as anticipated. more fully understand the implications of planned capital expenditures. all of the options analyze all of the risks (business, economic, exchange rate uncertainty, political, etc.) inherent in the investment.
Answer:
all of the options
Explanation:
The sensitivity analysis would work in the case when the adjusted present value permits the financial manager for the following reasons
1. It considered in advance actions that should be taken as an investment
2. The impacts of the planned capital expenditures
3. The analyze of all types of risk whether it is busines, economical, etc that should be inherent in the investment
hence, it is all of the above
Does dyson company use the line extension?
Answer:yes
Explanation:
Line extinctions is making a product with the same brand and category type example different Dyson vacuums
Hope this helps
You send out 20,000 emails. Of those, 6% are opened. Of those, 9% click on a link to register for something. Of those who clicked the link, 30% complete the registration. How many people completed the registration?
Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.
In the most recent month, 185,000 items were shipped to customers using 8,000 direct labor-hours. The company incurred a total of $27600 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.50 per direct labor-hour.
Required:
a. What is the standard labor-hours allowed (SH) to ship 185,000 items to customers?
b. What is the standard variable overhead cost allowed (SH SR) to ship 185,000 items to customers?
c. What is the variable overhead spending variance?
d. What is the variable overhead rate variance and the variable overhead efficiency variance?
Answer:
Standard labor-hours allowed= 7,400 direct labor Hours.
The standard variable overhead cost= $ 25,900
Variable overhead spending variance =$400
Variable overhead rate variance =$400
Variable overhead efficiency variance=$2,100
Explanation
a.) The standard labor-hours allowed (SH) to ship 185,000 items to customers
= 0.04 direct labor-hours x 185,000= 7,400 direct labor Hours.
b). The standard variable overhead cost allowed to ship 185,000 items to customers=
standard labor-hours SH × Standard Rate SR
7400 X $3.50= $ 25,900
c). Variable overhead spending variance is calculated as
Actual Overhead Costs - Actual hours x Standard Rate
= $27600 - 8,000 x 3.50 = $27600 -28,000
=$400
d1). Variable overhead rate variance =
Actual hours x Actual Variable Overhead Rate per Hour - Actual hours Standard Variable Overhead Rate per Hour
Variable overhead rate variance =8000 x (27600/8000) - 8000 x 3.50
8000 x 3.45 - 8000 x 3.50
27,600-28,000=$400
d2) Variable overhead efficiency variance= Actual Hours x Standard Rate - Standard Hours x Standard Rate
8000 x 3.50 -7400 x 3.50
28,000 -25,900
=$2,100
Emerson Enterprises is constructing a building. Construction began in 2018 and the building was completed on December 31, 2018. Emerson made payments to the construction company of on July 1, on September 1, and on December 31. What is the amount of weightedaverage accumulated expenditures that provides the basis for determining capitalized interest? A. B. C. D.
Answer:
Explanation:
$1,050,000
Which type of law controls the operation and procedures of government
agencies?
A. Statutory
B. International
C. Regulatory
D. Constitutional
Wildhorse Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,400 $3.78 $5.31 $1.89 1333 1,100 3.19 4.01 1.18 1426 1,000 5.31 5.90 1.65 1437 1,200 4.25 3.78 1.59 1510 900 2.66 3.84 1.65 1522 700 3.54 4.60 0.94 1573 3,200 2.12 2.95 1.42 1626 1,200 5.55 7.08 1.77 From the information above, determine the amount of Wildhorse Company inventory.
Answer:
Wildhorse Company
The amount of the inventory is:
= $30,496.
Explanation:
a) Data and Calculations:
Item No. Quantity Cost per Estimated Cost to NRV LCNRV Inventory
Unit Selling Price Sell Value
1320 1,400 $3.78 $5.31 $1.89 $3.42 $3.42 $4,788
1333 1,100 3.19 4.01 1.18 2.83 2.83 3,113
1426 1,000 5.31 5.90 1.65 4.25 4.25 4,250
1437 1,200 4.25 3.78 1.59 2.19 2.19 2,628
1510 900 2.66 3.84 1.65 2.19 2.19 1,971
1522 700 3.54 4.60 0.94 3.66 3.54 2,478
1573 3,200 2.12 2.95 1.42 1.53 1.53 4,896
1626 1,200 5.55 7.08 1.77 5.31 5.31 6,372
Inventory value = $30,496
How do the McDonald brothers propose to control the involvement Ray Kroc would have in their business?
Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2021. Actual production in each year was: 2019 = 83,000 units; 2020 = 133,000 units; 2021 = 67,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Required:
1. Calculate the gain or loss on the sale.
2. Prepare the journal entry to record the sale.
3. Assuming that the equipment was instead sold for $280,000, calculate the gain or loss on the sale.
4. Prepare the journal entry to record the sale in requirement 3.
Answer:
1.
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
Explanation:
We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,
Carrying value = Cost - Accumulated depreciation
Depreciation 2019 = (497000 - 33000) * 83000 / 580000
Depreciation 2019 = 66400
Depreciation 2020 = (497000 - 33000) * 133000 / 580000
Depreciation 2020 = 106400
Depreciation 2021 = (497000 - 33000) * 67000 / 580000
Depreciation 2021 = 53600
Carrying value = 497000 - [ 66400 + 106400 + 53600 ]
Carrying value = $270600
1.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 253600 - 270600
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 280000 - 270600
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
Changing a problem culture typically does not involve
a. altering the company's financial objectives
b. both symbolic and substantive actions by executives to implant new cultural behaviors
c. designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change resisters in the pocketbook
d. replacing old-culture managers with new-breed managers
e. using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors
Answer:
a. altering the company's financial objectives.
Explanation:
The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.
The steps involved in the problem-solving process are;
1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation (goal) and all efforts is channeled in the right direction rather than the symptoms.
2. Gathering of information: this helps to consider the options available in solving a problem effectively.
3. Consider your options: this helps to compare the available and viable solutions to the problem.
4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.
In Business management, changing a problem culture typically does not involve altering the company's financial objectives because the problems that are related to organisational culture are social and more closely related to the behavior and belief of the employees.
On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life was 10 years and the expected salvage value was $40,000. Straight-line depreciation is used. On July 1, 2019, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Karen evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $195,000.
Required:
a. Is the equipment impaired at July 1, 2019? Explain.
b. If the equipment is impaired at July 1, 2019, calculate the amount of the impairment loss.
c. If the equipment is impaired at July 1, 2019, prepare the journal entry to record the impairment Bidings Goodwil komat kumulat loss.
Answer:
Karen Company
a. The equipment is impaired at July 1, 2019 because its projected future cash flows of $195,000 are less than its current carrying value of $211,000.
b. The amount of the impairment loss is:
= $16,000.
c. Journal Entry to record the impairment:
July 1, 2019:
Debit Impairment Loss $16,000
Credit Equipment $16,000
To record the estimated impairment loss.
Explanation:
a) Data and Calculations:
July 1, 2015:
Purchase cost of equipment = $325,000
Estimated useful life = 10 years
Expected salvage value = $40,000
Depreciable amount = $285,000 ($325,000 - $40,000)
Annual depreciation expense = $28,500 ($285,000/10)
July 1, 2019:
Total accumulated depreciation = $114,000 ($28,500 * 4 years)
Carrying amount of the equipment = $211,000 ($325,000 - $114,000)
Projected future cash flows = $195,000
Difference (Impairment loss) $16,000
A bank has $50 million in assets, $47 million in liabilities and $3 million in shareholders' equity. If the duration of its liabilities are 1.3 and the bank wants to immunize its net worth against interest rate risk and thus set the duration of equity equal to zero, it should select assets with an average duration of _________.
Answer: 1.222
Explanation:
The Average duration can be derived from the formula:
Assets * Average Duration = Liabilities * Duration of Liabilities
Average Duration = (Liabilities * Duration of Liabilities) / Assets
= (47,000,000 * 1.3) / 50,000,000
= 61,100,000 / 50,000,000
= 1.222
Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and benefits. The company understands that there are effective reward systems that will motivate employees. However, JI management is not sure which would be the best for the company. Compensation, another important area, must also be improved so that it will satisfy all employees effectively. In addition, the company wants to create benefits to keep the employees not just satisfied, but also motivated. Yet another pressing issue is deciding on the training methods that are to be used to successfully teach the new employees.
JI believes that it will be on the right path if all of these changes can be successfully accomplished. The company plans to incorporate performance appraisals so it can be sure that the rewards, compensation, and benefits are effectively distributed. Refer to Jefferson, Inc. JI management must consider implementing the many different types of benefits. These include all of the following except :__________
a. insurance packages.
b. pension and retirement programs.
c. worker's compensation insurance.
d. Social Security.
e. profit sharing.
Answer:
E. Profit sharing
Explanation:
Employee benefits are the additional gains that employees enjoy in an organization in addition to their salaries.
There are different types of benefits that employers offer their employees.
Some of these are:
1. Medical benefits
2. Retirement benefits
3. Disability benefits
4. Insurance
5. Social security
E. T. C
Profit sharing is not an employee benefit so it is the odd 1 out of these options.
1) The pen example in the video suggests that most salespeople ____________________. a struggle to get a foot in the door b are at least polite c ask the right questions before making a sales presentation d focus on relationship building in the first meeting with the customer e start by highlighting the features and points-of-difference of a product
Answer:
A. struggle to get a foot in the door
Explanation:
The example of pen was used to define the fact that most salespeople start off by asking or telling the usual instead of analysing the situation and determining the right questions to be asked from the customer which ultimately leads to most of sales individuals to struggle.
Like in this case where a salesperson is given a pen, he would start by saying that he has a pen to sell with multiple colours, they are affordable and lightweight. These questions are too generic and may not interest the customer. Instead to sale better one must ask intelligent questions that will be relevant for the customer in order to pitch them the right kind of product.
You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing quantity is 500 for a steak dinner; (however, you do not have this information). You, the owner of the steak diner, decide to price your steak dinners at $15.00. You notice that when you do this you could have sold 650 steak dinners but are willing and able to sell only 400. Draw this situation on a graph. Put all numbers given on your graph.
RequireD:
a. What will happen in this market? Will there be a shortage or a surplus? Show this on your graph. What will happen in this market (assume there are no price controls).
b. A news released proved the inefficiency of hybrid vehicles. However, 2 months ago the number of dealers offering various hybrid models nearly tripled. How will this affect the price of hybrid vehicles?
Answer:
A) Shortage, B) Fall in Price
Explanation:
A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal & these curves intersect each other.
Above condition gives us equilibrium price & quantity.
If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie shortage (graphically denoted by distance between demand & supply curve at actual price below equilibrium price)
B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to fall in price of these hybrid vehicles.