Chelene had been a caregiver for Marta’s elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelene’s house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her inheritance to buy Chelene’s house without having it inspected. The house was built in the 1950s, and Chelene said it was in "perfect condition." Nevertheless, one year after the purchase, the basement started leaking. Marta had the paneling removed from the basement walls and discovered that the walls were bowed inward and cracked. Marta then had a civil engineer inspect the basement walls, and he found that the cracks had been caulked and painted over before the paneling was installed. He concluded that the "wall failure" had existed "for at least thirty years" and that the basement walls were "structurally unsound." Using the information presented in the chapter, answer the following questions.
1. Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. 2. Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element (or elements) might be lacking?. 3. Now assume that Chelene knew that the basement walls were cracked and bowed and that she hired someone to install paneling before offering to sell the house. Did she have a duty to disclose this defect to Marta? Could a court find that Chelene's silence in this situation constituted misrepresentation? Explain.

Answers

Answer 1

Answer and Explanation:

1. Marta cannot avoid the contract on the basis of a mistake of buying the house because she was supposed to inspect the house she was buying

2. Marta cannot sue Chelene for fraudulent misrepresentation because Chelene was not aware of the condition of the house. The elements in fraudulent misrepresentation are lacking : no intention to deceive, no misrepresentation of material facts

3. It would be Chelene's duty to reveal that there is defect in the house and if not the court would see this as misresprentation.

4. There was no undue influence from Chelene in selling the house and so Marta and Janis even she was alive cannot revoke the contract on this basis


Related Questions

Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total fixed costs are. Select one: a. $40,000. b. $6.25. c. $0.16. d. $80.

Answers

Answer:

Total fixed costs= $40,000

Explanation:

First, we need to calculate the total variable cost and total cost:

Total cost= 500*300= $150,000

Total variable cost= 500*220= $110,000

Now, we can calculate the total fixed costs:

Total fixed costs= total cost - total variable cost

Total fixed costs= 150,000 - 110,000

Total fixed costs= $40,000

Business standards should be based on which of the following?​

Answers

Answer: standards are based on the ultimate goals of a business

Explanation:

Standards set specialized goalsExamples

-Financial standards

    * Set goals for profit, cash flow and sale

-Quality control standards

     *Set up production line check for defects in machinery or workmanship

You are considering a project which will provide annual cash inflows of $4,921, $5,700, and $8,000 at the end of each year for the next three years, respectively. What is the present value of these cash flows, given a 9 percent discount rate?

Answers

Answer:

Total PV= $15,489.73

Explanation:

Giving the following information:

Cash flows:

1= $4,921

2= $5,700

3= $8,000

Interest rate= 9%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= = 4,921/1.09= 4,514.68

PV2= 5,700/1.09^2= 4,797.58

PV3= 8,000/1.09^3= 6,177.47

Total PV= $15,489.73

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.

Answers

Answer:

A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.

Explanation:

Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.

A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below.
Advertising and Promotion Expenses $ 263,700
Income Tax Expense 56,620
Interest Expense 44,020
Other Expenses 123,600
Other Selling & Administrative Expenses 352,000
Sales Revenue 1,871,300
Salaries and Wages Expense 726,000
Required:
1. Calculate the net income for the Green Thumb, Inc. for Year 3.
2. Prepare a statement of retained earnings for Green Thumb, Inc. for Year 3. Assume the company had retained earnings of $163,200 as of January 1, Year 3, and paid out $46,120 in dividends during Year 3.

Answers

Answer:

a.                               Green Thumb

                       Net Income for the year 3

Particulars                                      Amount

Sales revenue                                                     $1,871,300

Operating expenses

Advertising expense                    $263,700

Salaries and wages expense      $726,000

Other selling expenses                $352,000

Other expenses                            $123,600      $1,465,300

Earnings before interest and taxes                   $406,000

Interest expense                                                 $44,020    

Earnings before taxes                                         $361,980

Income tax expense                                            $56,620

Net Income                                                           $305,360

b.                         Green Thumb Inc.

                Statement of retained earnings

             For the year ended Dec 31, Year 3

Retained Earnings, Jan 1 year 3      $163,200

Add: Net Income                              $305,360

Less: Dividend paid                          $46,120

Retained Earnings, Dec 31 year 3  $422,440

Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following: At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year.
Required: 2. Prepare the required adjusting entry for transactions (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

A. Dr Wages expense 4,000

Cr Wages payable 4,000

B. Dr Interest receivable 1,500

Cr Interest revenue 1,500

Explanation:

Preparation of Journal entries

A. Based on the information given we were told that the company employees earned wages of the amount of $4,000, which will be paid on in January of next year which means that the Journal entry will be:

Dr Wages expense 4,000

Cr Wages payable 4,000

B. Based on the information given we were told that the company had earned the amount of $1,500 as interest revenue which means that the Journal entry will be recorded as:

Dr Interest receivable 1,500

Cr Interest revenue 1,500

Which activities are often required of someone who is in the performing arts?

A. writing creatively, remembering a script, and entertaining people

B. going on auditions, using pottery wheels, and scheduling tasks

C. creating artwork, designing a dance routine, and interviewing people to get information

D. coordinating performances, attending events to market themselves, and operating technical equipment

Answers

Answer:

It's A: writing,  a script, and entertaining people

Explanation:

did on edge 2020

Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.
Work in process, January 1, 7,000 units, 70% completed $81,970
Direct materials (7,000 × $8.00) $56,000
Conversion (7,000 × 70% × $5.30) 25,970
$81,970
Materials added during January from Weaving
Department, 108,000 units $869,400
Direct labor for January 248,134
Factory overhead for January 303,274
Goods finished during January (includes goods in
process, January 1), 109,200 units —
Work in process, January 31, 5,800 units, 30% completed —
A. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0".
B. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).

Answers

Answer:

A) Summary of physical units and equivalent units

Units to be accounted for                  Physical units

Beginning WIP                                         7,000

Units started                                        108,000

Total units to be accounted for           115,000

Units accounted for          Phys. units          Materials        Conversion

Beginning WIP                      7,000              $56,000          $25,970

Units started                      108,000          $869,400         $551,408  

Subtotal                               115,000           $925,400        $577,378

Units transferred out         109,200            $878,710         $567,691

Ending WIP                            5,800            $46,690            $9,687

Summary of costs to be accounted for

Costs to be accounted for:            Materials         Conversion     Total

Beginning WIP                                $56,000            $25,970        $81,970

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total costs to be accounted for  $925,400          $577,378    $1,502,778

 

Calculation of cost per equivalent unit

                                                       Materials         Conversion     Total

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total equivalent units                    108,000              99,040                        

Cost per equivalent unit                   $8.05           $5.567528   $13.617528

Cost allocation

                                                       Materials         Conversion     Total

Units finished and transferred      $878,710          $567,691      $1,446,401

Ending WIP                                     $46,690            $9,687         $56,377  

Total costs to be accounted for   $925,400         $577,378    $1,502,778

B) Materials cost per equivalent unit increased slightly during the period from $8 per EU to $8.05 per EU (0.6% increase). Conversion costs also increased during the period from $5.30 per EU to $5.567528 per EU (5% increase).

Explanation:

beginning WIP 7,000 units

100% completed for materials

70% completed for conversion costs (30% added in this period = 2,100 EU)

beginning WIP costs

materials $81,970

conversion $56,000

units started 108,000

materials added during the period $869,400

conversion costs $551,408

units finished 109,200

units started and finished = 108,000 - 7,000 - 5,800 = 95,200

ending WIP 5,800

100% complete for materials

30% complete for conversion costs (1,740 EU)

total EU:

materials 108,000

conversion 2,100 + 95,200 + 1,740 = 99,040

cost per EU:

materials $869,400 / 108,000 = $8.05

conversion $551,408 / 99,040 = $5.567528

total = $13.617528

ending WIP costs:

5,800 x $8.05 = $46,690

1,740 x $5.567528 = $9,687

total = $56,377

costs of finished units:

(102,200 x $8.05) + $56,000 = $878,710

(95,200 x $5.567528) + (2,100 x $5.567528) + $25,970 = $567,691

total = $1,446,401

List and describe the three types of income. Include information regarding how each one is taxed.

Answers

Answer:

Understanding The Three Types Of Income

Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.

Answer:

earned income, capital income, dont know the last one sorry

Explanation:

Which idea forms the basis of double-entry accounting?
A. For every single transaction, at least two accounts will be
affected.
B. For every single transaction, only assets will be impacted.
C. The assets of a business equal the stockholders' equity.
O D. The stockholders' equity in a business must equal the liabilities.

Answers

Answer:

A. For every single transaction, at least two accounts will be

affected.

Explanation:

Double-entry accounting is a record-keeping method where a transaction is recorded in a minimum of two accounts. There is no upper ceiling on the actual number of accounts that may be used in a transaction.

Every account has two columns, with debits on the left and credit entries on the right. The aggregate of the debit entries must equal the result of all credit entries. If this happens, the transaction has balanced.  If not, the transaction is  "out of balance."

Blossom Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond

Answers

Answer:

$1,280.94

Explanation:

FV= $1000

PMT = 11% * $1000  = $110

N = 10 Years

I/Y = 7%

Using Excel, Present value of bond ($1,000, $110, 10, 7%) = $1280.9433

Hence, the present value of bond = $1,280.94

There is a natural progression from one statement to the next. The following boxes represent the four financial statements. The set of financial statements is prepared at the end of each accounting period to communicate information about the company’s operations during that period to its users. Use the selection lists to demonstrate your knowledge of the relationships between the statements. In the headings, you will need to select the appropriate statement name and time period.(Hint: Ask yourself if the statement covers a period of time or if it is a snapshot at a given point in time.) Then complete the blanks following the headings.)
Statement:
ABC Company This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement.
This statement summarizes the_______ Which item from this financial statement appears on the next financial statement?

Answers

Answer:

Income Statement:  

ABC Company This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement.

This statement summarizes the_revenue and expenses______ .

Which item from this financial statement appears on the next financial statement?

Net Income

Explanation:

For instance, Company XYZ reports the Net Income (net profit) from the Income Statement to the Statement of Retained Earnings.  This second financial statement shows the distribution of profits to Company XYZ's stockholders.  From this second statement, the company takes an item known as the Retained Earnings to the next statement called the Balance Sheet (a snapshot of financial position).  The last statement usually prepared as part of financial reporting is the Statement of Cash Flows, which classifies the financial (cash) activities of the business into three: Operating, Investing, and Financing activities.  The Statement of Cash Flows shows the cash inflows and outflows during a period.

What is a premium in personal finance HEEEEELLPPP

Answers

Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.

Source: Investopedia

Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock.

a. Paid the stockholder a smaller dividend per share than another common stockholder.
b. Did not allow the stockholder to make decisions regarding hiring and firing employees.
c. Rejected the stockholder's request to vote via proxy because she was home sick.
d. The company did not provide all stockholders with timely financial reports.
e. In liquidation, paid the common shareholder after preferred stockholders were already paid.

Answers

Answer:

a. Paid the stockholder a smaller dividend per share than another common stockholder.

c. Rejected the stockholder's request to vote via proxy because she was home sick.

d. The company did not provide all stockholders with timely financial reports.

Explanation:

A shareholder is a person that has contributed to the equity of a company and holds shares as evidence of ownership.

Shareholders have right to recieve equal dividend as other common shareholders. There can only be a difference in dividend payouts when the other person has more shares.

They also have the right to vote via proxy in cases where they are not available. The proxy is duly appointed by the shareholder.

The company is also mandated to provide timely financial reports to all stockholders.

Shareholders however are not involved in daily running of the business. So they have no say in hiring and firing of employees.

Also common shareholders are paid dividend after preference share holders have been settled by the company.

Following is information about consulting jobs for a company that is increasing in sales, but has not yet become profitable. The owner keeps financial records on yellow sticky notes stuck to the wall behind his desk. He has asked you to help him set up a costing system so that he can better understand his costs. The owner said that job 140 was completed, job 141 was started and completed, and job 142 was started this month. Professional labour hours for contracts in process consist of job 140 with 129 hours, job 141 with 258 hours, and job 142 with 137 hours. Professional labour was paid $23,580 for the month, and the professional employees are all paid the same rate per hour. Overhead is allocated using an estimated rate based on professional labour hours. The total cost for job 141 is $32,766. Actual overhead cost for the month was $53,448. What is labour paid per hour? Labour per hour. What is the estimated rate per labour hour used to allocate overhead? per hour. Overhead rate What are the total costs (before adjusting for overapplied or underapplied overhead) for Jobs 141, 142, and 143? Total cost Job 140 Job 141 Job 142 What are the amounts in cost of goods sold and work-in-process at the end of the month? Cost of goods sold Work-in-process What amount of overhead was overapplied or underapplied this month? Overhead If this month is typical, what is a reasonable overhead rate? Reasonable overhead rate per hour

Answers

Answer:

Part 1

$82 per professional labor hour

Part 2

Job 141 = $16,383  ,Job 142 = $32,766 , and Job 143 = $17,399

Part 3

Cost of Goods Sold = $49,149

Ending Work In Process Inventory = $17,399

Part 4

Overheads Under- applied = $10,480

Part 5

$102.00 per professional labor hour

Explanation:

Labor Cost per hour = Total Cost ÷ Total hours

                                  = $23,580 ÷ ( 129 + 258 + 137)

                                  = $45.00 per hour

We know that,

Overhead allocation rate = Estimated Overhead Costs ÷ Estimated Professional labor hours

But using Job 141 we can solve as,

Total for Job  141                                         = $32,766

Less Labor Cost (258 hours × $45.00)       =  $11,610

Overheads allocated to Job 141                 = $21,156

Then,

Overhead allocation rate =  $21,156 ÷ 258

                                          = $82 per professional labor hour

Total Costs

                                          Job 140         Job 141            Job 142

Direct Labor                        $5,805         $11,610              $6,165

Overheads                         $10,578         $21,156            $11,234

Total Cost                           $16,383       $32,766           $17,399

Cost of Goods Sold

Note : Only Finished Jobs are accounted in this figure

Total Cost of Job 140      $16,383

Total Cost of Job 141       $32,766

Cost of Goods Sold         $49,149

Work In Process Inventory

Note : Only Incomplete Jobs are accounted in this figure

Total Cost of Job 142       $17,399

Application of Overheads

Actual Overheads (given)                                  = $53,448

Applied Overheads ($82 ×  ( 129 + 258 + 137)) = $42,968

Actual Overheads > Applied Overheads therefore we have an Under-applied situation.

Overheads Under- applied = $10,480 ($53,448 - $42,968)

Reasonable Overhead Rate.

Rate that does not produce variances is reasonable !

Reasonable Overhead Rate. = Actual Overheads ÷ Total Professional Hours

                                                = $53,448 ÷ 524 hours

                                                = $102.00 per professional labor hour

Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2011. Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30 every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $1.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10. The daughter received the $1,000 dividend on October 18, 2011. How does this information impact who must recognize the dividend as income?a. Darryl must recognize the $1,000 dividend as his income because he knew the dividend would be paid.b. Darryl must recognize $750 of the dividend because he owned the stock for three fourths of the year.c. Darryl must recognize the income of $1,000 because he constructively received the $1,000.d. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.e. None of the above

Answers

Answer:

d. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.

Explanation:

A stock of a corporation is the shares of all the ownership of the corporation earnings, assets.

The declaration date (or announcement date) of a stock is the date in which the board of directors release a statement about the dividend size and its payment date. Only the owners of the stock are the declaration date would receive the dividend payment.

Since the daughter owned the stock at the declaration date, she must recognize the income.

A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending Inventory at January 31 totals 130 units.
Units Unit Cost
Beginning inventory on January 1 320 $3.10
Purchase on January 9 70 3.30
Purchase on January 25 100 3.40
Required:
Assume the Perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on LIFO.

Answers

Answer:

$439

Explanation:

Perpetual Inventory method calculates the value of goods held after each transaction.

LIFO stands for First In First Out.

Calculation of cost assigned to ending Inventory - FIFO

30 units × $3.30  =   $99

100 units × $3.40 = $340

Total                     = $439

Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.

Salaries expense $122,000 Beginning retained earnings $61,100
Common stock 110,000 Warranties payable (short term) 6,500
Notes receivable (short term) 32,500 Gain on sale of equipment 19,000
Allowance for doubtful accounts 19,000 Operating expenses 65,000
Accumulated depreciation 66,000 Cash flow from investing activities 116,000
Notes payable (long term) 160,000 Prepaid rent 38,000
Salvage value of building 21,000 Land 95,000
Interest payable (short term) 6,000 Cash 41,000
Uncollectible accounts expense 45,000 Inventory 101,000
Supplies 6,500 Accounts payable 55,000 Equipment 243,000
Interest expense 36,000 Interest revenue 6,200
Salaries payable 68,000 Sales revenue 940,000
Unearned revenue 47,000 Dividends 20,000
Cost of goods sold 595,000 Warranty expense 9,200
Accounts receivable 108,000 Interest receivable (short term) 3,600
Depreciation expense 3,000

Answers

Answer:

                                 Eller Equipment Co.

                                  Income statement

Particular                                  Amount($)  Amount ($)

Sales revenue                                                940,000

Less: Cost of good sold                                 (595,000)

Gross margin                                                   345,000

Operating expenses

Salaries expenses                         122,000  

Operating expenses                     65,000  

Warranty expenses                        9,200

Un-collectible account expenses  45,000  

Depreciation expenses                 3,000

Total operating expenses                                (244,200)

Operating income                                              100,800

Non-operating expenses

Interest revenue                            6,200  

Interest expenses                        (36,000)

Gain on sale of equipment            19,000  

Total non-operating items                                   (10,800)

Net Income                                                          $90,000

                                   Balance Sheet

Assets                                          Amount$

Current Assets                                    

Cash                                                            41,000  

Accounts receivable                  108,000

Less: Allowance for doubtful    (19,000)  89,000

accounts

Merchandise inventory                             101,000  

Interest receivable                                     3600

Prepaid rent                                                38,000  

Supplies                                                      6,500  

Notes receivable                                        32,500

Total current assets                                                           311,600

Property Plant and Equipment    

Equipment                                    243,000  

Less: Accumulated depreciation (66,000)   177,000  

Land                                                                 95,000

Total property plant and equipment                                 272,000

Total Assets                                                                        583,600

Liabilities and Stockholder Equity

Current liabilities

Account payable                     55,000  

Unearned revenue                  47,000  

Warranties payable                  6,500  

Interest payable                        6,000  

Salaries payable                       68,000

Total current liabilities                                                  182,500

Long-term liabilities  

Notes payable                     160,000

Total long-term liabilities                                               160,000

Stockholders equity

Common stock                            110,000  

Retained earning                         131,100

Total stockholders equity                                              241,100

Total liabilities and stockholders equity                    $583,600

Workings

Retained earning = Beginning retained earning + Net income - Dividend  

= 61,100 + 90,000 - 20,000

= 131,100

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)

a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.

Answers

Answer:

a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)

b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)

c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)

d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)

Explanation:

Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:

- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.

- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.

- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt

Fort Corporation had the following transactions during its first month of operations
1. Purchased raw materials on account, $85,000.
2. Raw Materials of $30,000 were requisitioned to the factory.
3. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payrol
4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor.
5. Overhead costs incurred on account were $198,000
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods
8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.
Journalize the above transactions for Fort Corporation. (Record journal entries in the order presented in the problem.

Answers

Answer:

DR Raw materials inventory                           $85,000  

      CR Accounts payable                                                     $85,000

DR Work in process Inventory                         $24,000  

      Manufacturing overhead                             $6,000  

       CR Raw materials inventory                                    $30,000

Working

Work in Process = 30,000 - 6,000 = 24,000

DR Factory Labor                                               $175,000  

      CR Factory wages payable                                                  $145,000

            Payroll taxes payable                                                       $30,000

DR Work in process Inventory                           $145,000  

     Manufacturing overhead                               $30,000  

      CR Factory Labor                                                                  $175,000

DR Manufacturing overhead                               $198,000  

     CR Accounts payable                                                             $198,000

DR Work in process Inventory                             $217,500  

       CR Manufacturing overhead                                        $217,500

Working

Work in Process Inventory = 145,000*150% = $217,500

DR Finished goods Inventory                               $271,500  

     CR Work in process Inventory                                           $271,500

Working

Finished goods = 24,000 + 145,000 + 217,500 - 115,000  = $271,500

DR Cost of goods sold                                                 $100,000  

     CR Finished goods Inventory                                                    $100,000

DR Account receivables                                       $130,000  

      CR Sales                                                                            $130,000

Verne Cova Company has the following balances in selected accounts on December 31, 2014.
Accounts Receivable $ -0-
Accumulated Depreciation—Equipment -0-
Equipment 7,000
Interest Payable -0-
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable -0-
Supplies 2,450
Unearned Service Revenue 30,000
All the accounts have normal balances. The information below has been gathered at December 31, 2014.
1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2014.
2. A count of supplies on December 31, 2014, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2014 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2014.
5. On December 1, 2014, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2014, through March 31, 2015.
6. Verne Cova performed consulting services for a client in December 2014. The client will be billed $4,200.
7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2014.
Instructions:
Prepare adjusting entries for the seven items described above.

Answers

Answer and Explanation:

The adjusting journal entries are shown below:

1) Interest Expense $400  ($10,000 × 12% × 3 months ÷ 12 months)

          Interest Payable $400

(Being interest expense is recorded)

2) Supplies expense $1,500  ($2,450 - $900)

            To Supplies $1,550

(being supplies expense is recorded)

3) Depriciation expense $1,000

        Accumulated depriciation - equipment $1,000

(being depreciation expense is recorded)  

4) Insurance expense $1,225  ($2,100 × 7 months ÷ 12 months)

              To Prepaid insurance $1,225

(Being insurance expense is recorded)

5) Unearned service revenue $7,500 ($30,000 ÷ 4)

                  Service revenue  $7,500

(being service revenue is recorded)

6) Account receivable $4,200

        To Service revenue $4,200

(being account receivable is recorded)

7) Salaries and wages expense $5,400  ($9,000 ÷ 5 days × 3 days)

                To Salaries and wages payable $5,400

(being salaries & wages expense is recorded)

Hilary sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Hilary realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Edison and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Hilary knows that if they both work hard, Edison will earn $90 on the beach and Hilary will earn $240 at her stand, so they will each take home half of their total revenue: If Edison shirks, he'll generate only $60 in earnings. Hilary does not know that Edison estimates his personal cost (or disutility) of working hard as opposed to shirking at $30. Once out of Hilary's sight, Edison faces a dilemma: work hard (put in full effort) or shirk (put in low effort).In terms of Edison's total utility, it is worse for him to ____(work hard or shirk). Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together ___ (are or are not) better off if Edison shirks instead of working hard.Hilary knows Edison will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Edison. The most Hilary should be willing to pay Carrie to supervise Edison, assuming supervision is sufficient to encourage Edison to work hard, is ____ .
a. 55.
b. 30.
c. 25.
d. 20.It turns out that Hilary's friend Carrue is unavilable that day, so Hilary cannot find a reliable person to watch Edison. Which of the following arrangements will ensure that Edison works hard without making Hilary any worse off than she is when Edison shirks?A. Pay Edison $20, regardless of how many bottles of water he sells.B. Allow Edison to keep 75% of the revenue from the bottles of water he sells instead of 50%.C. Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%.D. Make Edison promise to work hard.

Answers

Answer:

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are  better off if Edison shirks instead of working hard.

B) $20

C) Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50% (c)

Explanation:

If Edison works hard he will earn = $90

If Harry work hard he will earn = $240

They will both take home : (90 + 240) / 2 = 330 /2 = $165 each

If Edison shirks he will earn = $60

therefore the total revenue = 60 + 240 = 300

They will both take home : 300 / 2 = $150 each

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are not  better off if Edison shirks instead of working hard.

B) The most Hilary should be willing to pay Carrie

should be : Amount earned without shirking - Amount earned with shirking

                = $165 - $150 = $15 the closest answer in the option is $20

C) . Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%

Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain

Answers

Answer:

True

Explanation:

Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.

If someone can achieve product maximization and cost minimization, they should be maximizing profit.

XYZ Company is union free. Because of increased costs and operational efficiency, it is in XYZ Company’s best interest to avoid unionization. While still in this non-unionized state, it is important for YYZ to do all EXCEPT which of the following?

Answers

Answer:

Make sure employees understand that anyone who attempts unionization will be discharged

Explanation:

Companies are not allowed to threaten employees who are interested in forming a union with discharge.  

On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $270,000. The bonds sold for $323,440 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.
Required:
1. Prepare the journal entry to record the bond issuance on February 1, 2018.
2. Prepare the entry to record interest on July 31, 2018.
3. Prepare the necessary journal entry on December 31, 2018.
4. Prepare the necessary journal entry on January 31, 2019.

Answers

Answer:

Required 1

Cash $323,440 (debit)

Bonds Payable $323,440 (credit)

Required 2

Interest Expense $12,938 (debit)

Bond Payable $12,938 (credit)

Required 3

J1

Interest Expense $12,961 (debit)

Bond Payable $12,961 (credit)

Interest accrued on Bond

J2

Bond Payable $12,938 (debit)

Cash $12,938 (credit)

Interest Cash outflow

Required 4

J1

Interest Expense $12,961 (debit)

Bond Payable $12,961 (credit)

Interest accrued on Bond

J2

Bond Payable $12,938 (debit)

Cash $12,938 (credit)

Interest Cash outflow

Explanation:

First, determine the coupon payments as follows :

FV = ($270,000)

PV = $323,440

N = 20

P/yr = 1

I = 8%

PMT = ?

Using a Financial Calculator, the annual coupon payments will be $27,042 ($12,938 semi-annually).

July 31,2018

Effective Interest Calculation

Effective Interest = $323,440 × 8% × 1/2

                            = $12,938

Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.

Answers

Answer:

Explanation:

e concepts or strategies presented in this class

At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $ 3,360: inventory $ 3,500: and Common Stock $ 6,860. The following transactions were completed during April 2017.Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $ 1,500, terms 3/10, n/60.7 Paid freight on Arnie purchase $ 80.9 Received credit from Arnie Co. for merchandise returned $700.10 Sold merchandise on account to members $1,420, terms n/30. The merchandise sold had a cost of $ 770.12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $ 1,060, terms 2/10, n30.14 Paid Arnie Co. in full.17 Received a credit from Woods Sportswear for merchandise returned $60.20 Made sales on account to members $ 820, terms n/30. The cost of the merchandise sold was $550.21 Paid Woods Sportswear in full.27 Granted an allowance to members for clothing that did not fit properly $70.30 Received payments on account from members $1,370.1. Journalize the April transactions using a perpetual inventory system.2. Prepare an income statement through gross profit for the month of April 2017.

Answers

Answer:

                                    Journal Entries

Date       Account Titles & Explanation    Debit     Credit

Apr 5       Purchases                                   $1,500

                      Accounts Payable                               $1,500

Apr 7       Freight-in                                      $80

                        Cash                                                    $80

Apr 9      Accounts Payable                        $700

                        Purchase Returns and Allowances   $700

Apr 10     Accounts receivable                    $1,420

                          Sales                                                  $1,420

Apr 10      Cost of goods sold                       $770  

                            Inventory                                           $770

Apr 12      Purchases                                     $1,060

                           Accounts Payable                              $1,060

Apr 14       Accounts Payable                        $800

                     ($1500-$700 )

                            Purchase Discounts                             $24

                            ($800 * 3%)

                             Cash                                                      $776

Apr 17        Accounts Payable                         $60

                         Purchase Returns and Allowances          $60

Apr 20      Accounts receivable                       $820

                           Sales                                                         $820

                    (To record credit sales)

Apr 20      Cost of goods sold                           $550

                           Inventory                                                   $550

Apr 21       Accounts Payable (1060-60)            $1,000

                          Purchase Discounts                                   $20

                          ($1000 * 2%)

                           Cash                                                            $980

Apr 27      Sales Returns and Allowances          $70

                            Accounts Receivable                                 $70

Apr 30       Cash                                                    $1,370

                           Accounts Receivable                                   $1,370

f the present value of the annuity is $45,000, what should be the size of each payment from the annuity

Answers

Answer:

"$571.92" is the correct solution.

Explanation:

The given problem is incomplete. Please find attachment of the complete question.

The given values are:

Payments will be made for

= [tex]8\frac{1}{4} \ years[/tex]

At the rate of:

= [tex]5.75 \ percent[/tex]

= [tex]0.0575 \ per \ year[/tex]

The present value of annuity is:

= [tex]45000[/tex]

Let the size of each payment will be "d".

Now,

⇒  [tex]45000=\frac{1-(1+\frac{0.0575}{12})^{-99}}{\frac{0.0575}{12}}\times d[/tex]

⇒         [tex]d = 571.92[/tex] ($)

Question 9 of 10
How should an annual business license fee be recorded in a journal entry?
A. As a credit, because it is an increased liability
B. As a credit, because it creates equity
C. As a debit, because it is an increased expense
D. As a debit, because it is a loss
SNBMIT

Answers

Answer:

Explanation:

As a debit, because it is an increased expence

Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)


Stock Expected Return Standard Deviation Beta
A 8.60% 14% 0.8
B 9.95 14 1.1
C 11.75 14 1.5

Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. (That is, required returns equal expected returns.)

Required:
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.

Answers

Question attached

Answer and Explanation:

Find attached

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