Answer:
$7.50
Explanation:
Earnings per share = Earning attributable to holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding
therefore,
Earnings per share = ($160,000 - $10,000) ÷ 20,000
= $7.50
thus,
The company's earnings per share on common stock is: $7.50
Four thousand bonds with a face value of $1,000 each, are sold at 104. The entry to record the issuance is:____.
A. Cash 4,080,000
Bonds Payable 4,080,000
B. Cash 4,080,000
Premium on Bonds Payable 80,000
C. Bonds Payable 4,000,000
Cash 4,080,000
D. Discount on Bonds Payable 80,000
Bonds Payable 4,000,000
E. Cash 4,000,000
Premium on Bonds Payable 80,000
Bonds Payable 4,080,000
Answer and Explanation:
The journal entry to record the issuance is given below:
Cash (4000 × 1000 × 104%) Dr. $4,160,000
To Premium on Bonds Payable $160,000
To Bonds Payable (4000 × 1000) $4,000,000
(being the issuance of the bond is recorded)
Here the cash is debited as it increased the assets, and the rest of the two accounts are credited as it increased the liabilities
Home Plate Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units 7,000 units Budgeted machine-hours 19,000 hours Budgeted variable manufacturing overhead costs for 7,000 units $119,000 Actual output units produced 6,000 units Actual machine-hours used 18,000 hours Actual variable manufacturing overhead costs $108,000 What is the budgeted variable overhead cost rate per output unit?
Answer:
$17
Explanation:
The computation of the budgeted variable overhead cost rate per output unit is shown below;
= Budgeted variable manufacturing cost ÷ Budgeted output
= 119,000 ÷ 7,000 units
= $17
We simply applied the above formula so that the budgeted variable overhead cost rate per output could come
Charging a license fee for access to a fishery will ... a) result in no change in total harvest levels. b) result in harvest levels equal to the maximum sustained yield. c) reduce harvest levels towards the economic optimum. d) result in harvest levels at the open-access equilibrium. e) result in increased entry into the fishery.
Answer:
c) reduce harvest levels towards the economic optimum.
Explanation:
An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.
Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.
When a license fee is charged by a licensor for access to a fishery, it will significantly reduce harvest levels towards the economic optimum, where neither a smaller nor a larger factor would yield any form of advantage.
This ultimately implies that, a license fee would serve as a limiting factor that prevents or limits the number of people going into fish farming and as a result of this, the total amount of fish that would be harvested would be smaller.
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $179,850. The equipment will have an initial cost of $545,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $34,000, what is the accounting rate of return
Answer:
So, accounting rate of return = 33 %
Explanation:
given data
net income after tax = $179,850
initial cost = $545,000
time = 7 year
salvage value = $34,000
we will get here the accounting rate of return
solution
as we know that accounting rate of return is express as
accounting rate of return = Net income ÷ initial investment .................1
put here value and we get
accounting rate of return = [tex]\frac{179850}{545000}[/tex]
So, accounting rate of return = 33 %
Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $250 in cash from a customer for services rendered this year a promise from a customer to pay $170 for services rendered this year tickets to a football game worth $175 as payment for services performed this year a check for $200 for services rendered this year that Bill forgot to cash How much income should Bill recognize on Schedule C
Answer:
$625
Explanation:
Calculation to determine How much income should Bill recognize on Schedule C
Using this formula
Recognize income=Cash Received +Football tickets+Check
Let plug in the formula
Recognize income=$250+$175+$200
Recognize income=$625
Therefore The amount of income that Bill
should recognize on Schedule C is $625
Mountain Foods is developing a new line of fruit-flavored salsas. It hires a firm to give away samples of salsa to customers and gather feedback on their perceptions of the product. Three different products will be given away in three specific markets: peach salsa in Georgia, cherry salsa in Michigan, and orange salsa in Florida. Which step of the product development process does this scenario best describe
Answer:
Test marketing
Explanation:
Product development process are the steps involved in taking a concept, creating a product, and making it available to the final consumer.
The test marketing step of the product development process that entails release of limited amount of a product to the consumer to gauge consumer response.
It is a marketing strategy the occurs with or without the consent of the consumer.
In the give scenario Mountain Foods gives away samples of salsa to customers and gather feedback on their perceptions of the product. Three different products will be given away in three specific markets: peach salsa in Georgia, cherry salsa in Michigan, and orange salsa in Florida.
This is test marketing.
Su Industries has international subsidiaries in Asia. These subsidiaries enter into transactions in both the US dollar and local currencies. During the year, Su Industries reported a remeasurement loss of $55,000 and a translation gain of $36,000. As a result of these conversions, how much would Su Industries report in accumulated other comprehensive income (AOCI) at year end
Answer: Increase / Gain of $36,000
Explanation:
Remeasurement loss, which arises from conversions of the various currencies used by the company to a functional currency, goes to the Income statement and is subtracted from the Net income.
Translation gains on the other hand, are added to the Other Comprehensive income.
The other comprehensive income will therefore increase by the translation gain of $36,000.
Pompeii, Inc., has sales of $54,500, costs of $24,800, depreciation expense of $2,700, and interest expense of $2,450. If the tax rate is 22 percent, what is the operating cash flow, or OCF
the interest equals 47009 because the numbers added together
In a perfectly competitive market, all producers sellidentical goods or services. Additionally, there aremany buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricemakers . True or False: The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets. True False
Answer:
1. True
2. False
Explanation:
1. Indeed, we can assert that for a market to be termed as perfectly competitive it must have not just one seller or buyer but many sellers and buyers. Hence, as for buyers, they are able to bargain the price they are willing to buy, while sellers are also set the price for their goods/products.
2. Since in most economies the price of public utilities, such as gas and electricity, are determined by the government not the average seller/buyer, it would be false to say that they exhibited characteristics that define perfectly competitive markets.
When suppliers collaborate with the firm overall performance has been known to improve up to _________
Hi, you've asked an incomplete question. Answered from a general business perspective.
Explanation:
Note, a firm may measure its overall performance using some of the metrics below:
amount of sales in dollarsthe total cost of production,production capacity, etc.Only when the firm's suppliers are reliable, affordable, and efficient, would the firm be able to meet their product demand.
The country of Farland has a real GDP of $100,000 and a population of 1,000. The country of Nearville has a real GDP of $10,000 and a population of 100. Which country has the higher real GDP per capita
Answer:
Neither countries have a higher GDP per capita. It is 100 for both countries
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
GDP per capita is used to measure the standard of living. The higher the GDP per capita, the higher the standard of living
GDP per capita = Real GDP / population
Farland = $100,000 / 1000 = $100
Nearville = $10,000 / 100 = $100
Both countries have the same GDP per capita
Answer:
Flowerton has a higher GDP per capita than Treeton.
Explanation:
The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts.
a. True
b. False
Answer:
a. True
Explanation:
In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading
So the given statement is true
Assume that interest rate parity (IRP) exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $0.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract
Answer:
US $5,784,000
Explanation:
As per interest rate parity, forward rate = Spot rate*(1+Interest rate U.S.)/(1+interest rate Australia)
= 0.60*(1.07)/(1.11)
= 0.5784 /A$
Australian Dollars required in one year = 10,000,000
U.S. Dollars required = 10,000,000 * 0.5784 /A$
U.S. Dollars required = $5,784,000
So, the number of U.S. dollars you will need in one year to fulfill the forward contract is 5,784,000.
Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 2009. Interest is payable semiannually on December 31 and June 30. Through June 30, 2016, Dechow amortized $9,558 of the bond discount. On July 1, 2016, Dechow retired the bonds at 101. Required a. Prepare journal entries to record the issue and retirement of these bonds. (Assume the June interest expense has already been recorded.)
Answer:
Dechow, Inc.
Journal Entries:
July 1, 2009: DebitCash $720,000
Debit Bonds Discount $30,000
Credit 8% Bonds Payable $750,000
To record the issuance of a 15-year bonds at 96 with semiannual interest payments.
July 1, 2016 Debit Bonds Payable $750,000
Debit Bonds Retirement Loss $27,942
Credit Unamortized discount $20,442
Credit Cash $757,500
To record the retirement of the bonds at 101.
Explanation:
a) Data and Analysis:
July 1, 2009: Cash $720,000 Bonds Discount $30,000 8% Bonds Payable $750,000 15-year bonds at 96 on July 1, 2009 with semiannual interest payments.
July 1, 2016 Bonds Payable $750,000 Bonds Retirement Loss $27,942 Unamortized discount $20,442 Cash $757,500 retired the bonds at 101.
Unamortized discount:
Discount on the bonds = $30,000 ($750,000 - $720,000)
Amortized bonds discount (9,558)
Unamortized bonds discount $20,442
g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)
Answer:
$10
Explanation:
As the bond is priced at $1035, the par value is $1000.
Calculation of the amount of the next interest payment
= Par value * Coupon rate/12
= $1000 * 12%/12
= $1000 * 1%
= $10
So, the amount of the next interest payment is $10.
Vern plans to invest $100,000 in a growth stock, in year 0. The stock is not expected to pay dividends. However, Vern predicts that it will be worth $135,000 when he sells it in year 3. The $35,000 increase in value will be taxable at the preferential capital gains rate of 15 percent.
Required:
a. Using a 4 percent discount rate, calculate the net present value of after-tax cash flows from this investment. (Round discount factor(s) to 3 decimal places. Round your intermediate calculations and final answer to the nearest whole dollar amount.)
b. Which two of the four basic tax planning variables increase the value of Vern's investment?
Answer:
a) $15,347
b) Time period
CharacterExplanation:
Initial investment = $100,000
Tax payable = ( 135,000 - 100,000 ) * 15%
= 35,000 * 0.15 = $5250
Amount receivable after tax = $135,000 - $5250 = $129,570
n = 3 years
a) Using a 4% discount rate calculate NPV
NPV = 129570 / ( 1 + 0.04 )^3 - Initial investment
= 129570 / ( 1.04 )^3 - 100,000
≈ $15,347
b) The two basic tax planning variables that increases the value of Vern's investment
Time period CharacterIf real GDP in a year was $3,900 billion and the price index was 130, then nominal GDP in that year was approximately
Answer:
$5,070 billion
Explanation:
Given the following:
The real GDP in a year => $3,900 billion
The price index => 130,
The nominal GDP is measured as
=> 100 -130 = 30%
=> 30% × 3,900 = 1,170
=> 1,179 + 3,900 = 5,070
Therefore, in this case, the correct answer is $5,070 billion as the nominal GDP for the year.
Cheryl is single, has one child (age six), and files as head of household during 2020. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount. a.$3,584. b.$3,557. c.$3,530. d.$0.
Answer: $3,557
Explanation:
Maximum amount of credit for 2020 is $3,584.
The income credit is calculated by:
= Maximum amount - (Earnings for the year - Minimum phase out range for single person with one child) * phase out percentage.
= 3,584 - (19,500 - 19,330) * 15.98%
= $3,557
A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake
Answer:
the cash flow from operation after fixing the mistake is $20
Explanation:
The computation of the cash flow from operation after fixing the mistake is as follows;
Cash flow from operations $70
Less; Depreciation expense -$100
Add: Depreciation expense $50
Net Cash flow from operations $20
Hence, the cash flow from operation after fixing the mistake is $20
The same is to be considered and relevant
Unearned revenue: the company collected 24,000 rent in advanced on September 1, debiting cash and crediting unearned rent revenue. The tenant was paying 12 months rent in advance and occupancy began september 1.
Answer:true
Explanation:
true
The primary purpose of a data warehouse is to _____________. Combine strategic information Organize departments Interface between the computer and employees All of these
Answer:
Combine strategic information
Explanation:
A data warehouse can be defined as a large collection of data gathered or collected from various sources within an organization and managed to provide a guide for making decisions by the management.
This ultimately implies that, a data warehouse avails the management of an organization the ability to collect, analyze and manage data in order to gain meaningful insights and aid in the decision-making process.
Hence, the primary purpose of a data warehouse is to help or avail a business firm the ability to combine strategic information with respect to the operations of the business.
65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $900, what is the required journal entry to accrue compensated absences
Answer: Debit Salaries and Wages Expense $117000
Credit Salaries and Wages Payable $117000
Explanation:
Based on the information given in the question, the required journal entry to accrue compensated absences will be as follows:
First, we need to know the amount of the compensated absence which will be:
= 65 employees × $900 × 2 Weeks vacation
= $117000
Therefore, the journal entry is:
Debit Salaries and Wages Expense $117000
Credit Salaries and Wages Payable $117000
Slinky established a petty cash fund for $400. Slinky purchased 50 units of inventory from a supplier on credit. The goods cost $40 each and the credit terms were 5/10, n/30. The shipping costs, paid in cash by Slinky, were $100 under the terms FOB Shipping. Slinky received the inventory on July 3rd. Slinky returned 5 units of inventory from the July 3rd transaction to the supplier. Slinky sold 15 of the units purchased on July 3rd for $55 each to customers for cash. Slinky accepted a return of one unit of inventory from a July 6th customer for a cash refund. Slinky paid the supplier for one-half of the inventory purchased on July 3rd. Be sure to account for any returns and/or purchase discounts. Slinky used $40 out of petty cash to pay for coffee meeting (coffee expense). Slinky purchased 10 units of inventory from a supplier on credit. The goods cost $25 each and no credit terms were granted. The shipping costs were $50 under the terms FOB destination and Slinky received the inventory on November 2nd Slinky paid the remaining balance owed to the supplier from the July 3rd transaction. Slinky replenished petty cash.
Required:
Prepare Journal Entries for July
Answer:the answer is
Explanation:
i have 400 and the 50 units
Preventive maintenance of a system involves ________. Select one: a. making enhancements to improve processing performance or interface usability b. making changes to an information system to repair flaws in the design c. making changes to a system to reduce the chance of future system failure d. making changes to an information system to accommodate changing business needs e. adding desired, but not necessarily required, system features
Answer:
c
Explanation:
Sun Co. was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction: $6,000,000 face value, 8% interest $8,000,000 face value, 9% interest None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $1,000,000. What interest rate should Sun use to calculate capitalized interest on the construction
Answer:
the interest rate that should be determined the capitalized interest is 8.57%
Explanation:
The computation of the interest rate that should be determined the capitalized interest is shown below;
= $6,000,000 ÷ ($6,000,000 + $8,000,000) × 0.08 + $8,000,000 ÷ ($6,000,000 + $8,000,000) × 0.09
= 0.0857
= 8.57%
Hence, the interest rate that should be determined the capitalized interest is 8.57%
The same would be considered
In 2019, Jonathan pays real estate taxes of $18,000 and New York State income taxes of $17,000. Assuming he itemizes, what deduction for taxes can Jonathan claim in 2019
Answer: $28,000
Explanation:
Jonathan can deduct both the real estate taxes and the state income taxes but the Tax Cuts and Jobs Act cut the deduction one can claim on State and Local taxes to $10,000 from 2018 to 2025.
The total deduction Jonathan can claim is therefore:
= Real estate taxes + Capped state income tax
= 18,000 + 10,000
= $28,000
purchased decorating machine for $430,000 on January 1, 2020. depreciates machines of this type by the straight-line method over a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Fireworks discovered the error on January 1, 2021. The journal entry to correct this error would be:
Answer:
The journal entry to correct this error would be:
Debit : Retained Earnings $86,000
Credit : Machine $86,000
Explanation:
Straight line method charges a fixed amount of depreciation using the formula :
Depreciation expense = (Cost - Residual Value) ÷ Estimated useful life
thus,
Annual Depreciation expense = $430,000 ÷ 5
= $86,000
To correct the error :
Reduce the Retained Earnings amount (were depreciation expense lies) and Reduce the Asset Balance (a fall in value) with the amount of depreciation.
3. Which of the following is NOT something you need to find out about in career planning?
a. the age of workers in an occupation
b. wages paid
c. education and training required
d. duties performed
Answer:
D
Explanation:
If a person owes several people money, that person can give each of the creditors part of the total owed. If this arrangement is agreed to by all creditors, it is called
Answer:
a composition of creditors
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
Hence, lenders look at the credit score of a loan applicant so as to ensure that he or she is financially responsible and would be able to repay the loan at the agreed upon date.
A composition of creditors can be defined as a type of arrangement in which an individual owing (debtor) several people money gives each of the creditors part of the total amount of money being owed. Also, for this arrangement to be valid, it must be agreed to by all creditors.
Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in earnings per share (EPS) over the 10-year period?
Answer:
they will earn 5$ eps over the 10 year period
Explanation:
hope it helps