Answer: $25,000
Explanation:
The fair market value of the property is $40,000 but the basis is $25,000. J.D will gain the difference as a gain from property distribution:
= 40,000 - 25,000
= $15,000
J.D basis is now :
= 15,000 + 15,000
= $30,000
The distribution of $40,000 exceeds this new basis by:
= 40,000 - 30,000
= $10,000
Total income recognized = Addition to basis + Amount distribution exceeds basis by
= 15,000 + 10,000
= $25,000
On July 1, Arcola Company purchases equipment for $330,000. The equipment has an estimated useful life of 10 years and expected salvage value of $40,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $160,000. On this date, Arcola examines the equipment for impairment and estimates $185,000 in undiscounted expected cash inflows from this equipment.
Required:
a. Compute the annual depreciation expense relating to this equipment.
b. Compute the equipment's net book value at the end of the fourth year.
c. Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. $29,000
b. $214,000
c. Yes
Explanation:
a. Annual Depreciation expense:
= (Cost - salvage value)/ Useful life
= (330,000 - 40,000) / 10,000
= $29,000
b. Net book value at end of 4th year:
= Cost - 4 year depreciation
= 330,000 - (4 * 29,000)
= $214,000
c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.
LaFevor Co. acquired 70% of the common stock of Dean Corp. on August 1, 2022. For 2022, Dean reported revenues of $960,000 and expenses of $780,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $21,000. What is the effect of including Dean in consolidated net income for 2022
Answer:
$66,250
Explanation:
Calculation for What is the effect of including Dean in consolidated net income for 2022
Effect of including Dean in consolidated net income for 2022=[($960,000-$780,000)*5/12]- ($21,000 × 5/12)
Effect of including Dean in consolidated net income for 2022=($180,000 × 5/12)- ($21,000 × 5/12)
Effect of including Dean in consolidated net income for 2022=$75,000-$8,750
Effect of including Dean in consolidated net income for 2022=$66,250
(Note that August 1 to December 31 will give us 5 months)
Therefore the effect of including Dean in consolidated net income for 2022 is $66,250
Ayala Architects incorporated as licensed architects on April 1, 2017. During tne first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1, 300.
10 Completed blueprints on a carport and billed client $1, 900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2, 800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $ 1, 500.
30 Paid $300 to Burmingham Company for accounts payable due.
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.
Instructions:
(a) Journalize the transactions, including explanations
(b) Post to the ledger T-accounts.
(c) Prepare a trial balance on April 30, 2017.
Answer:
Ayala Architects
a) Journal Entries:
Apr. 1: Debit Cash $18,000
Credit Common Stock $18,000
To record the issuance of common shares for cash.
Apr. 2: Debit Rent Expense $900
Credit Cash $900
To record the payment of rent for the month.
Apr. 3: Debit Supplies $1,300
Credit Accounts payable (Burmingham Company) $1,300
To record the purchase of supplies on account.
Apr. 10: Debit Accounts receivable $1,900
Credit Service Revenue $1,900
To record the sale of services on account.
Apr. 11: Debit Cash $700
Credit Unearned Service Revenue $700
To record receipt of cash in advance for services.
Apr. 20: Debit Cash $2,800
Credit Service Revenue $2,800
To record the receipt of cash for services rendered.
Apr. 30: Debit Salaries and Wages Expense $1,500
Credit Cash $1,500
To record payment of salaries for the month. ($375 * 4 weeks)
Apr. 30: Debit Accounts payable (Burmingham Company) $300
Credit Cash $300
To record payment on account.
b) T-accounts
Cash
Account Titles Debit Credit
Common stock $18,000
Rent $900
Unearned revenue 700
Service revenue 2,800
Salaries and wages 1,500
Accounts payable 300
Balance 18,800
Accounts Receivable
Account Titles Debit Credit
Service Revenue $1,900
Supplies
Account Titles Debit Credit
Accounts payable $1,300
Accounts Payable
Account Titles Debit Credit
Supplies $1,300
Cash $300
Balance 1,000
Unearned Service Revenue
Account Titles Debit Credit
Cash $700
Common Stock
Account Titles Debit Credit
Cash $18,000
Service Revenue
Account Titles Debit Credit
Accounts receivable $1,900
Cash 2,800
Balance $4,700
Salaries and Wages Expense
Account Titles Debit Credit
Cash $1,500
Rent Expense
Account Titles Debit Credit
Cash $900
c) Trial Balance
As of April 30, 2017:
Account Titles Debit Credit
Cash $18,800
Accounts receivable 1,900
Supplies 1,300
Accounts payable $1,000
Unearned Service Revenue 700
Common Stock 18,000
Service Revenue 4,700
Salaries and wages exp. 1,500
Rent Expense 900
Totals $24,400 $24,400
Explanation:
a) Data and Analysis:
Apr. 1: Cash $18,000 Common Stock $18,000
Apr. 2: Rent Expense $900 Cash $900
Apr. 3: Supplies $1,300 Accounts payable (Burmingham Company) $1,300
Apr. 10: Accounts receivable $1,900 Service Revenue $1,900
Apr. 11: Cash $700 Unearned Service Revenue $700
Apr. 20: Cash $2,800 Service Revenue $2,800
Apr. 30: Salaries and Wages Expense $1,500 Cash $1,500 ($375 * 4 weeks)
Apr. 30: Accounts payable (Burmingham Company) $300 Cash $300
XYZ Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 1,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 65,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 10,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.
Required:
What were the equivalent units for conversion costs in the Assembly Department for the month?
Answer: 61,200 units
Explanation:
Using the FIFO method:
= Equivalent units for beginning WIP + Units started and finished + EUP Ending WIP
Units started and finished = 65,000 additional units - 10,000 closing WIP
= 55,000 units
80% of the beginning WIP had been completed in the previous month so only 20% remains.
EUP Conversion = (1,000 * 20%) + 55,000 + (10,000 * 60%)
= 61,200 units
Lopes Increase the size of store and parking lot Do not increase the size of store and parking lot
Increase the size of store and parking lot Lopes = $1.0 million HomeMax = $1.5 million Lopes = $0.4 million HomeMax = $3.4 million
HomeMax Do not increase the size of store and parking lot Lopes = $3.2 million HomeMax = $0.6 million Lopes = $2.0 million HomeMax = $2.5 million
Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth-related profit. If they both agree to cooperate on a strategy that maximizes their joint profits, annual profit will grow by:______
a. $0.4 million for Lopes and by $3.4 million for HomeMax.
b. $2.0 million for Lopes and by $2.5 million for HomeMax.
c. $1.0 million for Lopes and by $1.5 million for HomeMax.
d. $3.2 million for Lopes and by $0.6 million for HomeMax.
Answer:
c. $1.0 million for Lopes and by $1.5 million for HomeMax.
Explanation:
If Lopes and HomeMax both wants to maximize their profits they should choose a strategy which is beneficial for both of them. If both choose to increase the size of store and parking lot this will bring them maximum returns according to the matrix. They will be Nash equilibrium state which is a stable state.
What type of business do we have?
Ginocera Inc. is a designer, manufacturer, and distributor of lowcost, highquality stain less steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 2016. In January, the company spent $600,000 to develop a late night advertising infomercial for the new product. During 2016, the company spent $1,400,000 promoting the product through these infomercials, and $800,000 in legal costs. The knives were ready for manufacture on January 1, 2016.
Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is:
Hardened steel blanks (used for knife shaft and blade) $4.00
Wood (for handle) 1.50
Packaging 0.50
The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per 250 knives.
After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife into a decorative box. The direct labor cost is $0.50 per unit.
The knives are sold to stores. Each store is given promotional materials, such as post ers and aisle displays. Promotional materials cost $60 per store. In addition, shipping costs average $0.20 per knife.
Total completed production was 1,200,000 units during the year. Other information is as follows:
Number of customers (stores) 60,000
Number of knives sold 1,120,000
Wholesale price (to store) per knife $16
Factory overhead cost is applied to jobs at the rate of $800 per stamping machine hour after the knife blanks are stamped. There were an additional 25,000 stamped knives, handles, and cases waiting to be assembled on December 31, 2016.
Instructions
1. Prepare an annual income statement for the Kitchen Ninja knife series, including sup porting calculations, from the information provided.
2. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016.
Answer:
1. $432,000
2. Finished goods inventory $776,000
Work in process $230,000
Explanation:
1. Preparation of an annual income statement for the Kitchen Ninja knife series
First step is to determine The Total Manufacturing cost per unit
DIRECT MATERIAL
Hardened steel blank $ 4.00
Wood for handle $ 1.50
Packaging $ 0.50
Total direct material $ 6.00
(4.00+1.50+0.50)
Direct labor $ 0.50
Factory overhead (800/250)$3.20
Total manufacturing cost per knife $ 9.70
(6.00+0.50+3.20)
Now let prepare the Income statement
INCOME STATEMENT
Sales $17,920,000
(1120,000 * 16)
Cost of good sold $10,864,000
(1120,000 * 9.7)
Gross profit $7,056,000
($17,920,000-$10,864,000)
Selling expense:
Infomercial campaign $2,000,000
($600,000 +$1400,000 )
Promotional material $3,600,000
(60,000 * $60)
Shipping cost $224,000
(1120,000 * 0.2)
Total selling expense $5,824,000
($2,000,000+$3,600,000+$224,000)
Administrative expense:
Legal expense $800,000
Total selling and administrative expense
$6,624,000
($5,824,000+$800,000)
Income from operation $432,000
($7,056,000-$6,624,000)
Therefore the annual income statement for the Kitchen Ninja knife series will be $432,000
2. Calculation to Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016
Calculation for Finished goods inventory
Finished goods inventory=($1,200,000 – $1,120,000) * 9.7
Finished goods inventory=$80,000*9.7
Finished goods inventory= $ 776,000
Calculation for Work in process
Work in process= 25,000 * (6 + 3.20)
Work in process=25,000*9.20
Work in process= $230,000
Therefore the balances in the work in process will be $776,000 and finished goods inventories will be $230,000 for the Kitchen Ninja knife series on December 31, 2016
Sound Software estimates that it will sell LaTeX: NN units of a program after spending LaTeX: aa thousands of dollars on advertising, where LaTeX: N\left(a\right)=-a^2+300a+6N ( a ) = − a 2 + 300 a + 6 when LaTeX: 0\le a\le3000 ≤ a ≤ 300. What is the maximum number of units that can be sold and how much need to be spent on advertising in order to achieve this sales goal?
Answer:
Explanation:
From the given information:
N(a) = -a² +300a + 6
Taking the differential of the above equation with respect to "a"
Then;
N'(a) = - 2a + 300
where;
the Critical points N'(a) = 0
-2a + 300 = 0
-2a = -300
a = -300/-2
a = 150
Now;
N(0) = -(0)² +300(0) + 6
N(150) = (-150)² +300(150) + 6 =22506
N(300) = (-300)² +300(300) + 6 = 6
∴
The max. number of the possible unit that can be sold = 22506
The amount spent on advertising to get to this goal = 150 thousand dollars
According to the Law of Demand, what will happen when the price of a good increases?
Answer:
According to the law of demand, as the price increase the quantity demand decreases, and conversely, as the prices decreases,the quantity demanded increases
Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in
Answer:
Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)
Explanation:
The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).
(opentextbc.ca)
The unadjusted trial balance for PS Music as of July 31, 20Y5 is as follows:
PS Music
Unadjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 2,750
Supplies 14 1,020
Prepaid Insurance 15 2,700
Office Equipment 17 7,500
Accounts Payable 21 8,350
Unearned Revenue 23 7,200
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 16,200
Wages Expense 50 2,800
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Advertising Expense 55 1,500
Supplies Expense 56 180
Miscellaneous Expense 59 1,855
40,750 40,750
Based on those balances and the additional data below, prepare adjusting journal entries. Include Posting References, using the account numbers in your spreadsheet. You will need the following additional accounts:
Account # Account Name
18 Accumulated Depreciation-Office Equipment
22 Wages Payable
57 Insurance Expense
58 Depreciation Expense
The data needed to determine adjustments for the two-month period ending July 31, 2019, are as follows:
July 31: During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600, which PS Music has already received payment for. Any additional hours beyond 80 will be billed to KXMD at $40 per hour.
Account Post. Ref. Debit Credit
July 31: Supplies on hand at July 31, $275.
Account Post. Ref. Debit Credit
July 31: The balance of the prepaid insurance account relates to the following July 1, 2019 transaction: "Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period."
Account Post. Ref. Debit Credit
July 31: Depreciation of the office equipment is $50.
Account Post. Ref. Debit Credit
July 31: The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 2019 transaction, which included the following: "On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600." In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.
Account Post. Ref. Debit Credit
July 31: Accrued wages as of July 31, 2019, were $140.
Account Post. Ref. Debit Credit
Answer:
PS Music
Adjusting Journal Entries:
Debit Accounts receivable 12 $1,400
Credit Fees Earned 41 $1,400
To record extra services rendered. (115 - 80) * $40
Debit Supplies Expense 56 $745
Credit Supplies 14 $745
To record supplies used.
Debit Insurance Expense 57 $225
Credit Prepaid Insurance 15 $225
To record expired insurance expense ($2,700 * 1/12).
Debit Depreciation Expense -Office Equipment 58 $50
Credit Accumulated Depreciation-Office Equipment 18 $50
To record depreciation expense for the month.
Debit Unearned Revenue 23 $3,600
Credit Fees Earned 41 $3,600
To record fees earned.
Debit Wages Expense 50 $140
Credit Wages Payable 22 $140
To record accrued wages.
Explanation:
a) Data and Calculations:
PS Music
Unadjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 2,750
Supplies 14 1,020
Prepaid Insurance 15 2,700
Office Equipment 17 7,500
Accounts Payable 21 8,350
Unearned Revenue 23 7,200
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 16,200
Wages Expense 50 2,800
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Advertising Expense 55 1,500
Supplies Expense 56 180
Miscellaneous Expense 59 1,855
40,750 40,750
Analysis of Adjustments:
Accounts receivable 12 $1,400 Fees Earned 41 $1,400 (115 - 80) * $40
Supplies Expense 56 $745 Supplies 14 $745
Insurance Expense 57 $225 Prepaid Insurance 15 $225 ($2,700 * 1/12)
Depreciation Expense -Office Equipment 58 $50 Accumulated Depreciation-Office Equipment 18 $50
Unearned Revenue 23 $3,600 Fees Earned 41 $3,600
Wages Expense 50 $140 Wages Payable 22 $140
Prepare the journal entries needed based on the following information: Estimated overhead for the month: $6,000 Estimated direct labor hours: 2,000 Purchased $35,000 of materials Requisitioned $10,000 of materials to be placed into production Incurred $4,000 of direct labor during the month (500 hours) Incurred the following actual factory overhead amounts: Utilities: $1,000 Indirect materials: $500 Indirect labor: $1,000 Rent: $1,500 Completed two jobs with a cost of $18,000 Sold both jobs completed at price
Suppose the residents of Vegopia spend all their income on cauliflower, broccoli, and carrots. In 2016, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2017, they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. What will be the price of one unit of each vegetable (unit price given in the sequence cauliflower, broccoli and carrots) in 2016
Patricia Ness is a lawyer specializing in employment law. Her clients showed her that the right-to-work laws create many problems for unionized workers. Therefore, she has started a petition to change the situation. In addition, she publishes a blog on the topic, and she takes every opportunity to talk publicly about the issue. Her tendency to identify opportunities, show initiative, take action, and persevere is typical of this personality trait.
a. Conscientious Personality
b. Introverted Personality
c. Narcissistic Personality
d. Sell Monitoring Personality
e. Proactive Personality
Answer:
a. Conscientious Personality
Explanation:
Conscientiousness can be regarded as personality trait that involves one to be
careful as well as diligent in performing tasks,/ obligations. This trait make one to be efficient and organized
Early in 2018, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend. During the first four years of operations (2018 through 2021), the corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock. Required: a. Prepare the stockholders' equity section of the balance sheet at December 31, 2021. b. Are there any dividends in arrears on the company's preferred stock at December 31, 2021
Answer:
Part a
The stockholders' equity section of the balance sheet at December 31, 2021.
Preferred Stock 10,0000 at $100
Common Stock 170,000 at $1
Paid in excess 170,000 at $14
Part b
Dividends in arrears on the company's preferred stock at December 31, 2021
Explanation:
Only issued Share Capital is presented in the stockholders' equity section of the balance sheet.
1.
What is CASS and what is its purpose?
You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 1050 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,800 units of shelf space for the texts. If the used book program makes a profit of $10 on each calculus text, $4 on each history text, and $8 on each marketing text, how many of each type of text should you purchase to maximize profit
Answer:
Calculus books 263
History Books 131
Marketing Books 656
Total Profit will be $8,402
Explanation:
There are 3 different types of books which can be purchased from the student run used book program. History book occupies 1 unit, Calculus book occupies 2 units and Marketing text occupies 5 units. There is budget constraint on purchase of books and maximum 1040 can be purchased. Lets formulate an equation for the books to identify the profit.
Constraint equation is :
h + 2c + 5m [tex]\leq[/tex] 1050
Profit equation is :
P = 4h + 10c + 8m
The total ratio is 2 + 5 + 1 = 8
Calculus books : 2 / 8 * 1050 = 263
History Books : 1 / 8 *1050 = 131
Marketing books : 5 / 8 * 1050 = 656
The maximum number of books purchase is inserted into the profit equation to identify maximum profit.
P = 4 * 131 + 10 * 263 + 8 * 656
P = $8,402
You are thinking about the things that can go wrong on your trip home over the Thanksgiving break. You have booked a flight with US-Scareways. You know that in 35 percent of the cases the company has canceled the flight you were on. Should such a thing occur, there would be no other air travel option home for you. As a backup, your friend Walter has offered you a ride back. However, you know that Walter only has a seat in his car for you with 70 percent probability.
What is the probability of you making it home for the holidays?
Answer: 89.5% or 0.895
Explanation:
Probability of you making it home if the flight is canceled:
= Probability that flight is canceled * probability that Walter has a seat
= 35% * 70%
= 24.5%
Probability of you making it home by flight:
= 100% - 35%
= 65%
Probability of you making it home for the holidays:
= Prob. if flight is canceled + Prob. by flight
= 24.5% + 65%
= 89.5%
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.
Work-in-process Inventory Sept. 1 28,000 units
Conversion complete 70%
Work-in-process inventory Sept. 30 16,000 units
Conversion complete 50%
Units started into production in Sept. 72,000
Units completed and transferred out ? units
Costs
Work-in-process inventory Sept.1 $120,000
Material P 110,000
Material Q 165,000
Conversion
Costs added in September
Material P $180,000
Material Q 165,000
Conversion 354,800
Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Total equivalent units for Material P under the weighted-average method are calculated to be:
______________.
A. 100,000 equivalent units.
B. 92,000 equivalent units.
C. 84,000 equivalent units.
D. 72,000 equivalent units.
E. 68,000 equivalent units.
Answer:
A. 100,000 equivalent units
Explanation:
Calculation for what the Total equivalent units for Material P under the weighted-average method are calculated to
First step is to calculate the Unit transferred out
Unit transferred out = 28,000+72,000-16,000
Unit transferred out =84,000
Now let calculate the Total equivalent units for Material P
Total Equivalent unit of material P = 84,000+16,000
Total Equivalent unit of material P = 100,000
Therefore the Total equivalent units for Material P under the weighted-average method are calculated to 100,000 equivalent units
se the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $36,681 Accounts receivable 60,524 Accrued liabilities 6,727 Cash 24,556 Intangible assets 40,334 Inventory 71,626 Long-term investments 90,463 Long-term liabilities 79,713 Marketable securities 32,237 Notes payable (short-term) 25,302 Property, plant, and equipment 627,557 Prepaid expenses 2,404 Based on the data for Harding Company, what is the amount of quick assets
Answer:
See below
Explanation:
With regards to the above,
Computation of quick assets is shown below
Quick assets = Account receivable + cash + marketable securities
= $60,524 + $24,556 + $32,237
= $117,317
define credit crunch.
Answer:
"a sudden sharp reduction in the availability of money or credit from banks and other lenders."
Answer: a sudden sharp reduction in availability of money or credit from Banks and other lenders
Explanation:
Monty Inc. presented the following data. Net income $2,340,000 Preferred stock: 53,000 shares outstanding, $100 par, 8% cumulative, not convertible 5,300,000 Common stock: Shares outstanding 1/1 692,400 Issued for cash, 5/1 321,600 Acquired treasury stock for cash, 8/1 160,800 2-for-1 stock split, 10/1 Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $enter earnings per share rounded to 2 decimal places
Answer:
Monty Inc.
The earnings per share (EPS) is:
= $0.75
Explanation:
a) Data and Calculations:
Net income = $2,340,000
8% cumulative, non-convertible Preferred stock:
53,000 shares outstanding at $100 par = $5,300,000
Common Stock:
1/1 Shares outstanding 692,400
5/1 Issued for cash 321,600
8/1 Treasury Stock (160,800)
10/1 Stock Split 1,706,400
Total shares outstanding 2,559,600
Net income $2,340,000
Dividends:
Preferred stock 424,000 (8% of $5,300,000)
Remaining for common stock $1,916,000
Earnings per share = $1,916,000/2,559,600 = $0.75
b) Monty's EPS is the amount of net income that is remaining for distribution to common stockholders after deducting the preferred stockholders' dividends.
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 60,000 EPBO, December 31 $ 63,600 Interest rate 6 % Funding and plan assets None What is the correct entry to record postretirement benefit expense for the current year
Answer:
Date Account Title Debit Credit
December 31 Postretirement benefit expense $3,900
APBO $3,900
Explanation:
Service cost = Ending EPBO / Attribution period
= 63,600 / 20
= $3,180
Interest cost = Beginning EPBO * Years employed / Attribution period * Interest rate
= 60,000 * 4/20 * 6%
= $720
Postretirement benefit expense = 3,180 + 720
= $3,900
Credit to Accumulated Postretirement Benefit Obligation (APBO).
Scenario: You are a CEO of well-established and profitable software technology firm that has a choice to invest in one of two new software technologies; one that promises modest profit with very little risk and another that may yield a very high profit but at considerable risk. Keeping in mind cultural factors (social values/priorities, politics, economy, technology, regulation, etc.) Answer the following: 1. What would your choice be? 2. Who in your company might support the first technology and who might support the second? 3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective? 4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
Answer:
1. What would your choice be?
My choice would be the little risk, modest profit option, because the company is well-established, and at that point, it is not necessary to take on huge risks.
2. Who in your company might support the first technology and who might support the second?
Younger employees would probably support the second technology, while older, more established and secure employees like senior managers would be more likely to support the first technology.
3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective?
How the investment decision will affect the different departments of the company, both at the department level, and at the individual level.
4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
The type of industry affects the decision greatly because different industries have varying degrees of market risk. This market risk is often measured by a "beta", which is a measure or the deviation of an industry from the average market risk.
An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31
Cash balance according to company’s records $11,100
Add: Outstanding checks $3,585
Error by Chesner Co. in recording Check No. 1056 as $950 instead of $590 360
Note for $12,000 collected by bank, including interest 12,480 16,425
$27,525
Deduct: Deposit in transit on August 31 $7,200 Bank service charges 25 7,225
Cash balance according to bank statement $20,300
Required:
a. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co.,
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
Answer:
See below
Explanation:
Chesner Co.
Bank reconciliation statement
a.
Cash balance according to bank statement
$20,300
Add:
Deposit in transit on July 31
$7,200
Deduct:
Outstanding checks
($3,585)
Balance
$3,615
Adjusted balance
$23,915
Cash balance according to company's record
$11,100
Add:
Error in recording check no
1056 as $950 instead of $590
$360
Note for $12,000 collected by bank including interest
$12,480
Deduct:
Bank service charge
($25)
Balance
$12,815
Adjusted balance
$23,915
b. The amount that should be reported as cash if a balance sheet were prepared for Chesner Co. on July 31, 2016 is $23,915
Under an installment contract, a buyer can:
a. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
c. Reject an installment no matter how minor the nonconformance is.
d. None of these answers.
Answer:
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
Explanation:
In installment contract, the seller and the buyer agrees on the ways through which the buyer will pay for the goods which he or she purchases installmentally rather than a one off payment. In a situation where the agreement has been reached, it expected that the buyer and the seller to conform to the said agreement. However,the seller is hold in breach of the entire installment contract if there is impairment of the value of the goods substanstially.
Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as Multiple Choice market positioning. market segmentation. market cataloging. market differentiation. product differentiation.
Answer:
Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as:
Market segmentation.
Explanation:
Market segmentation is a marketing effort by a business entity to classify its customers into groups according to similar characteristics and based on Demographic, Psychographic, Geographic, and Behavioral segments. Market segmentation helps the entity to identify market opportunities, design products, time marketing efforts, select appropriate media, and efficiently allocate resources to achieve its marketing goals.
If the market for quilts is perfectly competitive and other quilt producers face the same cost as Alex then what would you expect to happen to both the number of firms making quilts and the equilibrium price of quilts in the long run
Answer:
Since the firms are currently losing money, some of them will eventually exit the market in the long run. Once the total number of firms decreases, the equilibrium price will shift upwards until it reaches a point where the firms are able to break even. in other words, the firms will make 0 economic profit, but they will not lose money either.
somebody help pls you own a business in your community and you want to convince your community to support the local businesses. Explain five of your roles as an entrepreneur in the social development of the society to convince members of the community to support your business
Answer and Explanation:
Helping local businesses is very important and should be encouraged in all communities, across the country. As a local merchant, you can take steps to help yourself and other local merchants.
Among these attitudes, we can consider:
Design a business that offers differentiated products and services: one of the main threats to local commerce is large corporations. These corporations present products and services with little personality and consideration to the customer. Changing this type of attitude in your trade can help you to be valued.
Provide services and products with high demand in the region: By providing products and services in high demand, you will be able to attract a loyal clientele to your establishment, as you are able to offer exactly what customers want.
Provide competitive prices: Local businesses need to compete with large corporations that generally promote lower prices for their products and services. Providing lower prices can be a challenge for the local merchant, but it is important that he look for strategies to make the price of his products and services competitive, making his establishment a good option for the customer.
Create a support network between local merchants: This allows merchants to unite and refer to each other, as well as allowing them to think together about ways to optimize local trade.
Provide a variety of products and services: This makes your trade richer and more attractive to customers who may have your establishment as a place that will meet their needs.
Brief Exercise 162 a-b On January 1, 2020, Borse Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Answer:
1.
January 1, 2020
Cash $760000 Dr
Discount on Bonds Payable $40000 Dr
Bonds Payable $800000 Cr
2.
January 1, 2020
Cash $840000 Dr
Bonds Payable $800000 Cr
Premium on Bonds Payable $40000 Cr
Explanation:
1.
When the bonds are issued at 95, this means that they are being issued at 95% of their face value and the cash received will be 95% of the face value which will be = 800000 * 0.95 = 760000
This means that the bonds are issued at a discount to face value and the entry will be to record the cash received as debit for 760000 and the bonds payable which is a liability as credit of 800000. The difference is the discount on issuance of bonds and will be debited by,
Discount = 800000 - 760000 => $40000.
2.
When the bonds are issued at 105, this means that they are being issued at 105% of their face value and the cash received will be 105% of the face value which will be = 800000 * 1.05 = 840000
This means that the bonds are issued at a premium to the face value and the entry will be to record the cash received as debit for 840000 and the bonds payable which is a liability as credit of 800000. The difference is the premium on issuance of bonds and will be credited by,
Premium = 840000 - 800000 => $40000.