A certain town in the Midwest obtains all of its electricity from one company, North-star Electric. Although the company is a monopoly, it is owned by the citizens of the town, all of whomsplit the profits equally at the end of each year. The CEO of the company claims that because all ofthe profits will be given back to the citi- zens, it makes economic sense to charge a monopoly price forelectricity. True or false

Answers

Answer 1

Answer:

False

Explanation:

Therefore, since the monopoly price is higher than marginal​ cost and also less than the competitive quantity is​ produced, there will be a deadweight loss even if all the profits are given back to the citizens.

A monopolist market qualities includes the charge of a higher price, produces a smaller quantity of output and gives or generate a dead weight loss to society. Usually for a monopoly to be achieved, price does not need to equal marginal cost. Monopolies is therefore not or cannot charge any price they want. .


Related Questions

an installment loan would most likely be issued by which of the following?
A) a bank
B) a car dealer
C) a mortgage broker
D) a furniture store ​

Answers

/Answer: A because you have to pay it back.

Explanation:

George is an entrepreneur who owns a large office that has a few meeting rooms. Almost every day, he sees that there are conflicts between employees over the use of the meeting rooms. As a solution, George posts a schedule for the meeting rooms so that his employees can reserve the rooms going forward. Which skill has George demonstrated in the scenario? A. time management skills B. resource management skills C. task management skills D. speaking skills

Answers

D. He is trying to improve the employees speaking skills so there is less conflict

Answer:

Explanation:

B : resource management skills

just trust

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $6.4 million, and the 2018 balance sheet showed long-term debt of $6.6 million. The 2018 income statement showed an interest expense of $225,000. During 2018, the company had a cash flow to creditors of $25,000 and the cash flow to stockholders for the year was $80,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,490,000, and that the firm reduced its net working capital investment by $93,000. What was the firm’s 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

$1,452,000

Explanation:

Calculation for the firm’s 2018 operating cash flow

First step is to calculate the Cash flow from assets using this formula

Cash flow from assets= Cash flow to creditors + Cash flow to stockholders

Let plug in the morning

Cash flow from assets=-$25,000 + $80,000= $55,000

Now let calculate Cash flow from assets using this formula

Cash flow from assets = OCF capital - Net capital spending-Change in Net Capital spending

Let plug in the formula

$55,000=OCF-$1,490,000-($93,000)

OCF=$1,490,000+$55,000-$93,000

OCF=$1,452,000

Therefore the firm’s 2018 operating cash flow is $1,452,000

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: Actual: Variable factory overhead $360,000 Fixed factory overhead 104,000 Standard hours allowed for units produced: 60,000 hours The fixed factory overhead volume variance is

Answers

Answer:

$26,000 adverse variance

Explanation:

Fixed Overheads Volume Variance = Budgeted Overheads at Actual Output - Budgeted Fixed Overheads

                                                             = $1.30 x 60,000 hours - $1.30 x 80,000

                                                             = $78,000 - $104,000

                                                             = $26,000 adverse variance

The fixed factory overhead volume variance is $26,000 adverse variance

Selected transactions for Therow Corporation during its first month in business are presented below.

Sept. 1 Issued common stock in exchange for $20,000 cash received from investors.
5 Purchased equipment for $9,000, paying $3,000 in cash and the balance on account.
8 Performed services on account for $18,000.
14 Paid salaries of $1,200.
25 Paid $4,000 cash on balance owed for equipment.
30 Paid $500 cash dividend.

Required:
a. Prepare a tabular analysis of the transactions.
b. Journalize the transactions. Do not provide explanations.
c. Post the transactions to T-accounts.

Answers

Answer:

Therow Corporation

a) Tabular Analysis of Transactions:

Assets                      =       Liabilities              +       Equity

1. Cash $20,000      =                                     +      Common Stock $20,000

2. Cash -$3,000

Equipment $9,000  =      $6,000

3. Accounts

Receivable $18,000 =                                     +    Retained Earnings $18,000

4. Cash -$1,200                                               +    Retained Earnings -$1,200

5. Cash -$4,000             -$4,000

6. Cash -$500                                                 +    Retained Earnings -$500

b. Sept. 1:

Debit Cash $20,000

Credit Common Stock $20,000

Sept. 5:

Debit Equipment $9,000

Credit Cash $3,000

Credit Accounts Payable $6,000

Sept. 8:

Debit Accounts Receivable $18,000

Credit Service Revenue $18,000

Sept. 14:

Debit Salaries Expense $1,200

Credit Cash $1,200

Sept. 25:

Debit Accounts Payable $4,000

Credit Cash $4,000

Sept. 30:

Debit Dividends $500

Credit Cash $500

c. T-accounts:

Cash

Account Titles       Debit     Credit

Common Stock  $20,000

Equipment                          $3,000

Salaries Expense                  1,200

Accounts payable                4,000

Dividends                                500

Accounts Receivable

Account Titles       Debit     Credit

Service Revenue $18,000

Common Stock

Account Titles       Debit     Credit

Cash                                   $20,000

Equipment

Account Titles       Debit     Credit

Cash                     $3,000

Accounts payable 6,000

Accounts Payable

Account Titles       Debit     Credit

Equipment                        $6,000

Cash                    $4,000

Service Revenue

Account Titles       Debit     Credit

Accounts receivable         $18,000

Salaries Expense

Account Titles       Debit     Credit

Cash                     $1,200

Dividends

Account Titles       Debit     Credit

Cash                      $500

Explanation:

a) Data and Analysis:

Sept. 1: Cash $20,000 Common Stock $20,000

Sept. 5: Equipment $9,000 Cash $3,000 Accounts Payable $6,000

Sept. 8: Accounts Receivable $18,000 Service Revenue $18,000

Sept. 14: Salaries Expense $1,200 Cash $1,200

Sept. 25: Accounts Payable $4,000 Cash $4,000

Sept. 30: Dividends $500 Cash $500

Seeing a movie at a theatre would be considered a(n)
want.
O unlimited
O economic
noneconomic
limited

Answers

Answer:

economic

Explanation:

pls mark me brainliest right

Your regular selling price is $40 per unit. Costs are $28 per unit, which consists of $8 direct materials per unit, $10 direct labor per unit, $4 variable overhead per unit, and $6 fixed overhead per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $28. Assume that you have enough spare capacity to fulfill this order. If you accept the special order in the short term, profit will Group of answer choices increase by $6,000 decrease by $12,000 decrease by $6,000 remain the same increase by $12,000

Answers

Answer:

Effect on income= $6,000 increase

Explanation:

Because there is an unused capacity and it is a special order, we will not take into account the fixed costs.

Effect on income= total contribution margin

Unitary variable cost= 8 + 10 + 4= $22

Effect on income= 1,000*(28 - 22)

Effect on income= $6,000 increase

Item8 4 points Time Remaining 44 minutes 36 seconds00:44:36 Item 8 Time Remaining 44 minutes 36 seconds00:44:36 Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 180,000 Permanent differences (15,000 ) 165,000 Temporary difference-depreciation (12,000 ) Taxable income $ 153,000 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 13,000 As of December 31, 2021 $ 25,000 The enacted tax rate was 25% for 2020 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2021

Answers

Answer: $38,250

Explanation:

Current portion of tax is the amount of tax payable on the current taxable income:

= Taxable income * tax rate

= 153,000 * 25%

= $38,250

Finch Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 1,600 pagers. Unit-level manufacturing costs are expected to be $26. Sales commissions will be established at $1.60 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($66,000), rent on the manufacturing facility ($56,000), depreciation on the administrative equipment ($13,800), and other fixed administrative expenses ($74,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 5,600 modems and 1,600 pagers). Required a. Determine the per-unit cost of making and selling 1,600 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $40 each, should Finch make the pagers

Answers

Answer:

a). Per unit cost = $ 159.31

b). Yes, Finch Modems should make the pagers.

Explanation:

a). Facility level cost proposed to be allocated to the pager line

[tex]$=\frac{1600}{5600+1600} \times (66,000+56,000+13,800+74,950)$[/tex]

= 0.22 + 210750

= $ 210750.22

Facility cost per unit of pager = [tex]$\frac{210750.22}{1600}$[/tex] = $ 131.71

Cost per unit of pager = $ 26 + $ 1.60 + $ 131.71

                                     = $ 159.31

b). At the selling price of $ 40 per unit, the pager line will result in an operational loss, the profit for the company as a whole will increase if it decides to manufacture the pagers.

Contribution margin per unit of pager = $ 40 - ( $ 26 + $ 1.60)

                                                               = $ 15.6

Total contribution margin per unit of pager = 1600 x $ 15.6

                                                                        = $ 24,960

The net operating income for the company would increase by $ 24.960 if the pagers are added to its product portfolio.

Hence Finch Modems should make the pagers.

Sheila and her team members have been allocated a new project. As a team leader, which quality should Sheila demonstrate so that her team members are clear on the team goals they need to achieve?
Sheila needs to demonstrate effective
to be able to convey the team goals to her team members.

Answers

Answer:

she needs to demostrate effective leadership and sportsman shop and that all starts with trust. To be clear on the goals they must list their goals 1st and work for them in order to persue them imma athlete and i do that a lot

Explanation:

Answer:

Sheila nerds to demonstrate good communication skittles

6. Which of the following statements is NOT an element of a well-designed Service System?a. It is consistent with the operating focus of the firm.b. It is user-friendly so customers can easily interact with the service process.c. It is robust and therefore capable of coping with variations in demand and resource availability.d. It is structured so that consistent performance by its people and systems is easily maintained.e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Answers

Answer:

e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Explanation:

A service system is one that is focused on the growth of technology and information system. It's designed to give services that meet the expectations, needs, and wants of clients.  It is apart of service management, sued in service operations, and found in service marketing. It's designed for client contact, capital flows, and the level of customer involvement.

On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $559,946 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3.8 million. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.
2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021?
3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2021?
(For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar.)
1. Present value
2. Pretax amount for liability Pretax amount for right-of-use asset
3. Pretax amount for interest expense Pretax amount for amortization expense

Answers

Answer:

1. $3,800,001

2. Pretax amount of liability $2,842,112

Pre tax amount of right to use asset $3,325,000

3. Pre tax amount of interest expense $162,003

Pre tax amount of amortization expenses $475,000

Explanation:

1. Calculation for the Present value

Using this formula

PV of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 8 periods at 5%

Where,

Semiannual lease payment = $559,946

Total semiannual payments = 4*2 = 8

Incremental borrowing rate = 10%, 5% semiannual

Let plug in the formula

PV of minimum lease payments used to record right to use assets= $559,946 * 6.78637

PV of minimum lease payments used to record right to use assets= $3,800,001

Therefore the Present value will be $3,800,001

2. Calculation for the Pretax amount for liability and Pretax amount for right-of-use asset

Calculation for Pretax amount of liability

First step is to calculate the Pretax amount of liability on 30.06.2021

Pretax amount of liability on 30.06.2021 = ($3,800,001 - $559,946)

Pretax amount of liability on 30.06.2021= $3,240,055

Second step is to calculate the Interest expense for 31.12.2021

Interest expense for 31.12.2021 = $3,240,055 * 5%

Interest expense for 31.12.2021= $162,003

Now let calculate the Pre tax amount for liability December 31, 2021

Pre tax amount for liability December 31, 2021 = $3,240,055 + $162,003 - $559,946

Pre tax amount for liability December 31, 2021= $2,842,112

Therefore The Pre tax amount for liability December 31, 2021 will be $2,842,112

Calculation for Pre tax amount of right to use asset

First step is to calculate the Depreciation on right to use assets for 2021

Depreciation on right to use assets for 2021 = $3,800,000 / 4 * 6/12

Depreciation on right to use assets for 2021 = $475,000

Now let calculate the Pre tax amount of right to use asset to be reported for 2021

Pre tax amount of right to use asset to be reported for 2021 = $3,800,000 - $475,000

Pre tax amount of right to use asset to be reported for 2021 = $3,325,000

Therefore Pre tax amount of right to use asset to be reported for 2021 will be $3,325,000

3. Calculation for Pretax amount for interest expense Pretax amount for amortization expense

Calculation for Pretax amount for interest expense

Pre tax amount of interest expense = $3,240,054 * 5%

Pre tax amount of interest expense= $162,003

Therefore the Pre tax amount of interest expense will be $162,003

Calculation for Pre tax amount of amortization expenses

Pre tax amount of amortization expenses = $3,800,000 / 4 * 6/12

Pre tax amount of amortization expenses = $475,000

Therefore The Pre tax amount of amortization expenses will be $475,000

Suppose the labor force stays​ constant, and the working age population stays​ constant, but some people who were unemployed become employed. As a​ result, the labor force participation rate will A. not change in way that can be predicted. B. remain constant. C. decrease. D. increase.

Answers

Answer:

b

Explanation:

Labour force is the sum of the employed and the unemployed in the economy.

Labour force participation rate is

Joe Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,950 and variable expenses of $5,985. Product Y45E had sales of $26,190 and variable expenses of $10,476. The fixed expenses of the entire company were $17,000. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:

Answers

Answer:

Decrease

Explanation:

Calculation to determine overall break-even point for the entire company

Contribution margin for C90B = ($19,950-

$5,985)/$19,950

Contribution margin for C90B = 70%

Contribution margin for Y45E =( $26,190- $10,476)/$26,190

Contribution margin for Y45E= 60%

Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 5,000 Units sold 4,900 Units in ending inventory 100 Variable costs per unit: Direct materials$61 Direct labor$63 Variable manufacturing overhead$26 Variable selling and administrative expense$24 Fixed costs: Fixed manufacturing overhead$105,000 Fixed selling and administrative expense$49,000 What is the variable costing unit product cost for the month

Answers

Answer:

$217,600

Explanation:

Calculation for the variable costing unit product cost for the month

Variable selling and administrative expense $117,600

($24 per unit x 4,900 units sold)

Fixed manufacturing overhead $105,000

Fixed selling and administrative expense$49,000

Variable costing total period $217,600

($117,600+$105,000+$49,000)

Therefore the variable costing unit product cost for the month is $217,600

A cell-phone repair shop consists of three processes. Step 1 requires 6 minutes per unit, step 2 requires 5 minutes per unit and step 3 requires 7 minutes per unit. 30% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.5 units per minute Instruction: Round your answer to three decimal places What is the capacity of the shop in units per units per minute)?

Answers

Answer:

Step 2 = 6 minutes

Step 2 = 5 minutes

Step 3 = 7 minutes

30 percent of 3 needs rework

Total time = 6+5+7 = 18 minutes

We start over from step 2

5+7 = 12

0.3 x 12 = 3.6 minutes

Total time = 18 + 3.6 = 21.6 minutes

Units per minute = 1/21.6 = 0.046

This is the capacity

n the hybrid method is used to record the withdrawal of a partner, the partnershipMultiple Choicerevalues assets and liabilities and records goodwill to the continuing partner but not to the withdrawing partner.revalues liabilities but not assets, and no goodwill is recorded.can recognize goodwill but does not revalue assets and liabilities.revalues assets but not liabilities, and records goodwill to the continuing partner but not to the withdrawing partner.revalues assets and liabilities but does not record good

Answers

Answer:

revalues assets and liabilities but does not record goodwill.

Explanation:

A partnership can be defined as a type of business ownership in which two or more individuals come together to start up a business and share the profits made together.

When the hybrid method is used to record the withdrawal of a partner, the partnership revalues assets and liabilities but does not record goodwill.

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 5%. The company's weighted average cost of capital is 16%. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. $ Calculate the value of Kendra's operations. Do not round intermediate calculations. Round your answer to the nearest cent. $

Answers

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years  Cash-flows   PVF at 16%    Present value

1           800,000       0.86206         68964.80

2          105,000        0.74316           78031.80

2          954,545        0.74316           709379.70

            Total value                           856,376.30

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $401,400; materials of $413,000 and direct labor of $223,000. During the year Adams incurred $424,000 in materials costs, $418,900 in overhead costs and $227,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

Answers

Answer:

an under applied of $10,300

Explanation:

The computation of the over applied or under applied is shown below;

Difference in overhead = Actual overhead - applied overhead

= $418,900 - ($227,000 × ($401,400 ÷ $223,000))

= $418,900 - $408,600

= $10,300

Since actual overhead is more than the applied overhead so it is an under applied of $10,300

On October 1, 2018, Jarvis Co. sold inventory to a customer in a foreign country, denominated in 100,000 local currency units (LCU).Collection is expected in four months. On October 1, 2018, a forward exchange contract was acquired whereby Jarvis Co. was to pay 100,000 LCU in four months (on February 1, 2019) and receive $78,000 in U.S. dollars. The spot and forward rates for the LCU were as follows:
Rate DescriptionExchange Rate .83-1 LCU 5.85 1 LCU Spot rate: Spot rate: 1-Month Forward Rate $.be = 1 LCU Spot rate: October 1, 2018 December 31, 2018 February 1, 2019 .86 1 LCU The,company's borrowing rate is 12%. The present value factor for one month is .9901. Any discount or premium on the contract is amortized using the straight-line method , Assuming this is a cash flow hedge:
prepare journal entries for this sales transaction and forward contract.

Answers

Answer:

10/1/2018

Dr Accounts receivable $83,000

Cr Sales $83,000

12/31/2018

Dr Accounts receivable $2,000

Cr Foreign exchange gain $2,000

12/31/2018

Dr Loss on forward contract $1,980

Cr Forward contract $1,980

2/1/2018

Accounts receivable $1000

Cr Foreign exchange gain $1000

2/1/2018

Dr Loss on forward contract $6,020

Cr Forward contract $6,020

2/1/2018

Dr Foreign currency

$86,000

Accounts receivable $86,000

2/1/2018

Dr Cash $78,000

Dr Forward contract $8,000

Cr Foreign currency $86,000

Explanation:

Preparation of the journal entries for the sales transaction and forward contract.

10/1/2018

Dr Accounts receivable (100000*0.83) $83,000

Cr Sales $83,000

12/31/2018

Dr Accounts receivable $2,000

[100,000*(0.85-0.83)]

Cr Foreign exchange gain $2,000

12/31/2018

Dr Loss on forward contract $1,980

[((0.80-0.78)*100000)*2000*0.9901]

Cr Forward contract $1,980

2/1/2018

Accounts receivable $1000

[100000*(0.86-0.85)]

Cr Foreign exchange gain $1000

2/1/2018

Dr Loss on forward contract $6,020

(78000/100000 = 0.78)

[ ((0.78-0.86)*100000) = 8000-1980=6020]

Cr Forward contract $6,020

2/1/2018

Dr Foreign currency (100000*0.86)

$86,000

Accounts receivable $86,000

2/1/2018

Dr Cash $78,000

Dr Forward contract $8,000

($86,000-$78,000)

Cr Foreign currency (100000*0.86) $86,000

Santana Rey receives the March bank statement for Business Solutions on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,666. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.
S. Rey notices that the bank erroneously cleared a $530 check against her account in March that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Business Systems.
On March 25, the bank lists a $59 charge for the safety deposit box expense that Business Solutions agreed to rent from the bank beginning March 25.
On March 26, the bank lists a $103 charge for printed checks that Business Solutions ordered from the bank.
On March 31, the bank lists $31 interest earned on Business Solutions’s checking account for the month of March.
S. Rey notices that the check she issued for $138 on March 31, 2018, has not yet cleared the bank.
S. Rey verifies that all deposits made in March do appear on the March bank statement.
The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,189 as of March 31 (prior to any reconciliation).
Required:
1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2018.
BUSINESS SOLUTIONS
Bank Reconciliation
March 31, 2018
Bank statement balance Book balance
Add: Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance
2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest earned on the checking account for the month of March. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record journal entry related to the $530 check charged erroneously to Business Solutions' account, if any.
Record the journal entry related to the $59 debit memorandum, if any.
Record the journal entry related to the $103 debit memorandum for printed checks.
Record the journal entry for the $31 interest earned.
S. Rey verifies that all deposits made in March do appear on the March bank statement.

Answers

Answer:

See below

Explanation:

Bank reconciliation statement

1.

Bank balance statement

$67,666

Add:

Bank error

$530

Deduct:

Outstanding check

($138)

Adjusted bank balance

$68,058

Cash book balance

$68,189

Add:

Bank interest

$31

Deduct:

Safety deposit rental

($59)

Charge for checks

($103)

Adjusted cash balance

$68,058

2. Journal entries

March-31 Cash a/c Dr $530

To Bank errors Cr $530

March-31 Outstanding checks a/c Dr $138

To Cash Cr $138

March-31 Miscellaneous expense a/c Dr $162

To Cash Cr $162

March-31 Cash a/c Dr $31

To Interest revenue Cr $31

Kelsey's Kleening provides cleaning services for Clinton Inc., a business with four buildings. Kelsey's assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $35,000, $27,000, $45,000, and $10,000. Clinton secured this amount by signing a note bearing 7% interest on March 1, 2019.

Required:
a. Prepare the journal entry to record the sale on March 1, 2019.
b. Determine how much interest Kelsey will receive if the note is repaid on December 1, 2019.
c. Prepare Kelsey's journal entry to record the cash received to pay off the note and interest on December 1, 2019.

Answers

Answer:

A. Dr Note receivable $117,000

Cr Sales revenue $117,000

B. $6,143

C. Dr Cash $123,143

Cr Interest revenue $6,143

Cr Note receivable $117,000

Explanation:

A. Preparation of the journal entry to record the sale on March 1, 2019.

Dr Note receivable $117,000

Cr Sales revenue $117,000

($35,000+ $27,000+ $45,000+$10,000)

B. Calculation to Determine how much interest Kelsey will receive if the note is repaid on December 1, 2019.

Using this formula

Interest = Face value * interest rate *n/12

Note is outstanding for period of 1 March -1Dec 2019 = 9 months

Let plug in the formula

Interest = $117,000 *.07 *9/12

Interest = $6,143

C. Preparation of Kelsey's journal entry to record the cash received to pay off the note and interest on December 1, 2019.

Dr Cash $123,143

($117,000+$6,143)

Cr Interest revenue $6,143

Cr Note receivable $117,000

On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a salvage value of) $1,000 at the end of its useful life in five years. The company uses straight-line depreciation. It has not recorded any adjustments relating to this equipment during the current year.

Required:
Complete the necessary December 31 journal entry.

Answers

Answer:

December 31

Debit : Depreciation   $1,800

Credit : Accumulated Depreciation $1,800

Explanation:

Straight line method charges a fixed amount of depreciation based on the formula :

Depreciation Expense = Cost - Salvage Value ÷ Estimated Useful Life

Depreciation Expense = ($10,000 - $1,000) ÷ 5 = $1,800

Ayayai Inc. had the following balance sheet at December 31, 2019.
AYAYAI INC.
BALANCE SHEET
DECEMBER 31, 2019
Cash $ 21,940 Accounts payable $ 31,940 Accounts receivable 23,140 Bonds payable 42,940 Investments 32,000 Common stock 101,940 Plant assets (net) 82,940 Retained earnings 25,140 Land 41,940 $201,960 $201,960 During 2020, the following occurred.
1. Ayayai liquidated its available-for-sale debt investment portfolio at a loss of $6,940.
2. A tract of land was purchased for $39,940.
3. An additional $30,000 in common stock was issued at par.
4. Dividends totaling $11,940 were declared and paid to stockholders.
5. Net income for 2020 was $36,940, including $13,940 in depreciation expense.
6. Land was purchased through the issuance of $31,940 in additional bonds.
7. At December 31, 2020, Cash was $72,140, Accounts Receivable was $43,940, and Accounts Payable was $41,940.
In an Excel spreadsheet:Prepare a statement of cash flows for the year 2015 for Lander.Prepare the balance sheet as it would appear as of December 31, 2015.

Answers

Answer:

(a) Increase in cash = $50,200

(b) Total Assets =  Liabilities and Stockholders' Equity = $298,900

Explanation:

Note: There are errors as date and name inconsistency in the requirements in this question. The requirements are therefore correctly stated before answering the question as follows:

(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.

(b) Prepare the balance sheet as it would appear as of December 31, 2020.

The explanation of the answer is now provided as follows:

(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.

Note: See part (a) of the attached excel file for the statement of cash flows for the year 2020 for Ayayai Inc.

In the attached excel file, we have:

Increase in cash = $50,200

(b) Prepare the balance sheet as it would appear as of December 31, 2020.

Note: See part (b) of the attached excel file for the balance sheet as it would appear as of December 31, 2020.

In the attached excel file, we have:

Total Assets =  Liabilities and Stockholders' Equity = $298,900

ounie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $95,400. The South Division's divisional segment margin is $45,100 and the West Division's divisional segment margin is $185,500. What is the amount of the common fixed expense not traceable to the individual divisions

Answers

Answer:

$135,200

Explanation:

With regards to the above information, both sales and variable cost are dependent on the number of units sold.

The contribution margin is arrived at by deducting the variable cost from sales. Also, the contribution margin minus the fixed cost gives net operating income.

Therefore, total fixed cost of the corporation not traceable to individual division

= $185,500 + $45,100 - $95,400

= $135,200

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a one-time cash of $200,000 today or receive payments of $1,400 a month starting at the end of this month for 20 years. Assuming the APR is 6 percent with monthly compounding, which option should you take and why

Answers

Answer:

Option 1 PV lumpsum = $200000

Option2 PV of Annuity = $195413.08035 rounded off to $195413.08

Based on the present value of both the options, Option 1 should be chosen as it has a higher present value than option 2.

Explanation:

To decide on the best option to choose among the given two, we need to find the present value of both the options.

As the first option is to receive a lumpsum payment of $200000 today, the present value of this option is also equal to $200000 as it will be received today.

Option two, on the other hand, is an annuity as fixed payments will be received after equal intervals of time and for a limited time period and at the end of the period which satisfies the criteria of annuity ordinary. We will use the formula for the present value of annuity which is,

PV of Annuity = C * [( 1 - (1+r)^-n) / r]

Where,

C is the periodic paymentr is the rate of return of discount raten is the number of periods

The periodic payment is provided as $1400. We are also provided with and APR of 6% which is the Annual rate. We will have to convert it into monthly rate by dividing it by 12. We are also provided with the number of years which we will need to convert into number of months by multiplying it by 12.

Monthly r = 6%/12 = 0.5%

Number of periods = 20 * 12 = 240

PV of Annuity = 1400 * [( 1 - (1+0.5%)^-240) / 0.5%]

PV of Annuity = $195413.08035 rounded off to $195413.08

At December 31, 2020, Albrecht Corporation had outstanding 228,000 shares of common stock and 10,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2021, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2021. For the year ended December 31, 2021, Albrecht reported a net loss of $187,000.

Required:
Calculate Albrecht's net loss per share for the year ended December 31, 2021.

Answers

Answer: ($1.20) per share

Explanation:

As these are cumulative preferred shares, their dividends will have to be paid eventually so they will add to the net loss.

Preferred dividend = 10,000 * 9.5% * 100

= $95,000

The weighted average number of shares is also needed:

Stock was sold on May 31 thereby leaving 7 months in the year.

= 228,000 + (12,000 * 7/12)

= 235,000 common shares

Net loss per share = (187,000 + 95,000) / 235,000

= ($1.20) per share

Financial analysis Group of answer choices uses historical financial statements and is thus useful only to assess past performance uses historical financial statements and is thus useful only to assess past performance uses historical financial statements to measure a company's performance and in making financial projections of future performance. is accounting record-keeping using generally accepted accounting principles

Answers

Answer:

uses historical financial statements to measure a company's performance and in making financial projections of future performance.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

Financial analysis uses historical financial statements to measure a company's performance and in making financial projections of future performance.

In Financial accounting, the horizontal financial analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.

Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.

Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.


Helppppp pleaseeee!!!!!!!!!

Answers

Job description is the right answer

Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange

Answers

Answer: $446

Explanation:

Antoine will receive the same basis in the stock that was in the property.

The Corporation however, assumed $78 of the liability of the property transferred which would reduce Antoine's basis in that property

Antoine's basis = Property base - Liability assumed by corporation

= 524 - 78

= $446

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