Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
the dude above is right
You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today followed by a final liquidating dividend of $1.60 a share two years from today. If you can earn 7 percent on your funds, what will be the value of your total investment income in two years if you do not want to receive any funds until then
Answer:
value of your total investment income 362.80
Explanation:
The computation of the value of your total investment income in two years is shown below
Value of Dividend after 2 years (200 × .20 × 1.07)42.80
Value of Liquidating Dividend (200 × 1.60) 320.00
value of your total investment income 362.80
The value of your total investment income in two years from today, will be 362.80
What is investment income?Investment income refers to the profit that is earned from investments like real estate and stock sales
The computation of the value of your total investment income in two years is shown below:
Value of Dividend after 2 years
= (200 × .20 × 1.07)
= 42.80
Value of Liquidating Dividend
= (200 × 1.60)
= 320.00
value of your total investment income
= 362.80
Hence, the value of your total investment income in two years from today will be 362.80
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What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500? a. Small automobiles become more fashionable: No change . b. The price of large automobiles rises (with the price of small autos remaining the same): (Click to select) . c. Income declines and small autos are an inferior good: (Click to select) . d. Consumers anticipate that the price of small autos will greatly come down in the near future: (Click to select) . e. The price of gasoline substantially drops: (Click to select) .
Answer:
a. Small automobiles become more fashionable:
demand curve will shift to the right, increasing total quantity demanded and prices
b. The price of large automobiles rises (with the price of small autos remaining the same):
demand curve will shift to the right, increasing total quantity demanded and prices
c. Income declines and small autos are an inferior good:
demand curve will shift to the right, increasing total quantity demanded and prices
d. Consumers anticipate that the price of small autos will greatly come down in the near future:
demand curve will shift to the left, decreasing total quantity demanded and prices
e. The price of gasoline substantially drops:
demand curve will shift to the left, decreasing total quantity demanded and prices
On January 1, a company issues 8%, 5-year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: Present value of an annuity (series of payments) for 10 periods at 3%8.5302 Present value of an annuity (series of payments) for 10 periods at 4%8.1109 Present value of 1 (single sum) due in 10 periods at 3%0.7441 Present value of 1 (single sum) due in 10 periods at 4%0.6756 What is the issue (selling) price of the bond
Answer: $325,592
Explanation:
Selling price of bond = Present value of coupon payments + Present value of Par value
No. of periods = 5 * 2 = 10 semi annual periods
Coupon payments = 300,000 * 8% * 1/2 = $12,000
Periodic interest = 6% / 2 = 3% per period
Selling price = (12,000 * Present value of annuity factor, 10 periods, 3%) + (300,000 * Present value of single sum, 10 periods, 3%)
= (12,000 * 8.5302) + (300,000 * 0.7441)
= $325,592
In its first year of operations, Ivanhoe Company recognized $29,800 in service revenue, $7,000 of which was on account and still outstanding at year-end. The remaining $22,800 was received in cash from customers. The company incurred operating expenses of $19,000. Of these expenses, $13,140 were paid in cash; $5,860 was still owed on account at year-end. In addition, Ivanhoe prepaid $3,150 for insurance coverage that would not be used until the second year of operations.
(a) Calculate the first year’s net earnings under the cash basis of accounting, and the first year’s net earnings under the accrual basis of accounting.
Answer:
See below
Explanation:
1. Income statement (using cash basis)
Cash basis is recognized base on the cash collection or disbursement
Revenues (only cash receipts)
$22,800
Less:
Expenses paid in cash
($13,140)
Insurance paid
($3,150)
Net income
$6,510
2. Income statement (using accrual basis)
Revenues (earned)
($22,800 + $7,000)
$29,800
Less:
Expenses(incurred, insurance for next year not included
($19,000)
Net income
$10,800
Answer:
Explanation:
Accural Basis (2nd Answer)
Taking into account the time value of money and assuming that 100 percent of a customer segment will have experienced attrition once the net present value of annual profits per customer falls below ¥100, what is the lifetime value to MBC of the following customers? A Little Leaguer A Summer Slugger An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event An Entertainment Seeker
Answer:
hello your question is incomplete attached below is the missing information
a) 8848.32 yen
b) 1732.95 yen
c) 13487.95 yen
d) 22578.86 yen
e) 248 yen
Explanation:
a) Determine for A little leaguer
At year 15 the NPV annual profit for each customer will fall below 100. hence the lifetime value for each customer will be calculated as :
= ( 9733 / ( 1 + 0.1 ) 15 ) - 10000 = 8848.32 yen
b)Determine for A summer slugger
At year 7 the NPV annual profit for each customer will fall below 100. hence The lifetime value for each customer will be calculated as
= ( 1906 / ( 1 + 0.1 ) 7 ) - 10000 = 1732.95 yen
c) calculate for An elite Ballplayer ( when MBC places ad )
At year 12 the NPV annual profit for each customer will fall below 100. Hence the lifetime value for each customer will be calculated as
=( 13547.31 / ( 1 + 0.1 ) 12 ) - 60000 = 13487.95 yen
d) calculate for An Elite Ballplayer ( when MBC purchases the list )
At year 12 the NPV annual profit for each customer will fall below 100. Hence the lifetime value for each customer will be calculated as
= ( 22638.22 / ( 1 + 0.1 ) 12 ) - 50000 = 22578.86 yen
e) Calculate for An entertainment seeker
At year 4 the NPV annual profit for each customer will fall below 100, Hence the lifetime value for each customer can be calculated as
= ( 273 / ( 1 + 0.1 ) 4 ) - 2000 = 248 yen
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 15,000 units at $60.00 Mar. 18 Sale 12,000 units May 2 Purchase 27,000 units at $62.00 Aug. 9 Sale 22,500 units Oct. 20 Purchase 10,500 units at $64.20 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.
Answer:
Jan. 1 Inventory 15,000 units at $60.00
Mar. 18 Sale 12,000 units
Cost of goods sold = 12,000 x $60 = $720,000
Inventory balance = $60 x 3,000 = $180,000
May 2 Purchase 27,000 units at $62.00
Aug. 9 Sale 22,500 units
Cost of goods sold = [($180,000 + $1,674,000) / 30,000] x 22,500 = $1,390,500
Inventory balance = [($180,000 + $1,674,000) / 30,000] x 7,500 = $463,500
Oct. 20 Purchase 10,500 units at $64.20
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $1,900,000 20,000 units February 2,250,000 27,000 March 2,400,000 30,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
Answer:
A. $50 per unit
B. $900,000
Explanation:
(a) Computation for the variable cost per unit using this formula
Variable cost per unit=(Total cost at highest level-Total cost at lowest level)/(Highest level-Lowest level)
Let plug in the formula
Variable cost per unit=(2,400,000-1,900,000)/(30,000-20,000)
Variable cost per unit=500,000/10,000
Variable cost per unit=$50 per unit
Therefore The Variable cost per unit will be $50 per unit
B. Computation to determine the Total fixed cost
Total fixed cost=2,400,0000-(50*30,000)
Total fixed cost=2,400,0000-1,500,000
Total fixed cost=$900,000
Therefore The Total fixed cost will be $900,000
Bramble Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $569,900 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Bramble for the full sales price.
Required:
Prepare the Journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2020.
Answer:
Because past history has shown that Danone will take the cash discount, it will be removed from the journal entry:
= Notes payable - discount
= 569,900 - 9,900
= $560,000
Date Account Title Debit Credit
Jan. 2, 2020 Notes Receivable $560,000
Sales Revenue $560,000
Cost of Goods sold $500,000
Inventory $500,000
Max, Inc., has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division
Answer:
$200,000
Explanation:
Segment Margin is Profit wholly controlled by a specific division. Now, this excludes shared costs from the central Head Office.
The segment margin for the South Division is calculated as follows :
Sales $500,000
Less Variable Costs (40% x $500,000) ($200,000)
Contribution (60% x $500,000) $300,000
Less Traceable Fixed Expenses ($100,000)
Segment Margin $200,000
Conclusion
The segment margin for the South Division is $200,000
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,000 Cost of goods sold 7,950 Depreciation 410 Earnings before interest and taxes $ 1,640 Interest paid 100 Taxable income $ 1,540 Taxes 539 Net income $ 1,001 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 270 $ 300 Accounts payable $ 1,630 $ 1,812 Accounts rec. 1,110 1,010 Long-term debt 1,070 1,383 Inventory 1,780 1,755 Common stock 3,360 3,030 Total $ 3,160 $ 3,065 Retained earnings 650 900 Net fixed assets 3,550 4,060 Total assets $ 6,710 $ 7,125 Total liab. & equity $ 6,710 $ 7,125
What is the cash coverage ratio for 2017?
Answer:
20.50 times
Explanation:
Cash coverage ratio = (EBIT + Depreciation) / Interest paid
Cash coverage ratio = ($1,640+$410) / $100
Cash coverage ratio = $2,050 / $100
Cash coverage ratio = 20.50 times
So, the cash coverage ratio for 2017 is 20.50 times
The owner of a fast-food franchise has exclusive rights to operate in a medium-size metropolatin area. The owner currently has a single outlet open, which has proved to be very popular, and there are often waiting lines of customers. The owner is therefore considering opening one or more outlets in the area. What are the key factors that the owner should investigate before making a final decision
Answer:
The key factors that the owner should look at are:
Estimated budget for opening the new restaurant. The owner has to pay for each franchise restaurant, plus the equipment, furniture, and rent. Target market and potential demand. The restaurant current demand is very high, but will it be high if another restaurant opens.Location is extremely important for any business, and a restaurant is not the exception.An encyclopedia is an example of a periodical.
O True
O False
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price or Rate Standard Cost Direct materials 2.50 ounces $ 28.00 per ounce $ 70.00 Direct labor 0.50 hours $ 13.00 per hour 6.50 Variable manufacturing overhead 0.50 hours $ 3.60 per hour 1.80 $ 78.30 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 13,500 ounces at a cost of $361,800. b. There was no beginning inventory of materials; however, at the end of the month, 2,900 ounces of material remained in ending inventory. c. The company employs 21 lab technicians to work on the production of Fludex. During November, they worked an average of 140 hours at an average rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,400. e. During November, 4,200 good units of Fludex were produced . Required: For direct materials: a. Compute the price and quantity variances. (Round your "price per ounce" answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?
Answer:
A. Materials price variance 16,200 F
Materials quantity variance 2,800 U
B. Yes
Explanation:
A. Computation for the price and quantity variances For direct materials
Calculation for Materials price variance
Materials price variance=361,800-(13,500*28)
Materials price variance=361,800-378,000
Materials price variance=16,200 FAVOURABLE
Calculation for Materials quantity variance
First step is to calculate Actual materials used
Actual materials used=13,500-2,900
Actual materials used=10,600
Now let compute the Materials quantity variance
Materials quantity variance=28*(10,600-4,200*2.5)
Materials quantity variance=2,800
UNFAVORABLE
Therefore the price will be 16,200 FAVOURABLE and quantity variances will be 2,800 UNFAVORABLE For direct materials
B. Based on the above calculation I Would recommend that the company sign the contract because Materials variance is Favorable
A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,400; merchandise inventory increased $28,000; prepaid expenses increased $8,200; accounts payable increased $5,400. Calculate the net cash provided or used by operating activities.
Answer:
the net cash provided by operating activities is $168,600
Explanation:
Cash flow from operating activities
net income, $134,000
adjust for non-cash items
add depreciation expense, $40,000
less gain on sale of plant assets, $14,000
adjust for changes in working capital
decrease in accounts receivable $11,400
increase in merchandise inventory ($28,000)
increase in prepaid expenses ($8,200)
increase in accounts payable $5,400
net cash provided by operating activities $168,600
Suppose that unskilled workers find it worthwhile to acquire skills when the wage differential between skilled and unskilled workers reach a certain threshold. Explain the effects on the supply of unskilled workers, the supply of skilled workers, and the equilibrium wage for the two groups. In particular what is the equilibrium wage of skilled workers relative to unskilled workers after some unskilled workers receive training
Answer:
a. Short-run economic profit: $ 40,000 per lease.
Long-run economic profit: $ 0 per lease.
b. Landowners would gain $40,000 per plot each year due to higher rent for land
Explanation:
The short-run economic profit for a cotton farmer is:
Economic profit = Total revenue - Explicit costs - Implicit costs = $60,000 - $14,000 - $6,000 = $40,000 per lease.
Landowners would reap the long-term benefits of the scheme. Their income would rise by $40,000 per year per 120-acre plot because rent would rise from $10,000 to $50,000.
Unskilled labor is one of the most plentiful resources in emerging nations, and it is heavily utilized to support those nations' economic development. Therefore, the cost of this labor plays a significant role in the selection and layout of development projects.
What effects on the supply of unskilled workers?Saving Money – Although skilled workers may initially be paid more than unskilled workers, competent people will ultimately cost less for your company. Unskilled workers are more likely to need more training, commit errors while working, and maybe your client relationships.
If the minimum wage levels are low in comparison to average salaries, increasing the minimum wage that employers must pay has minimal effects on total hours worked (i.e., total jobs times hours per job).
Therefore, Any decrease in the labor force available to a market will result in higher salaries and higher employer costs.
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There are currently 487 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 16 students per year. Currently the annual expense to educate one student is $1,256, and the expense to educate one student is increasing at the rate of $36 per year. Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Answer:
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
Explanation:
Given - There are currently 487 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 16 students per year. Currently the annual expense to educate one student is $1,256, and the expense to educate one student is increasing at the rate of $36 per year.
To find - Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Proof -
Total number of students = 487
Students decreasing rate per year = 16 students
Annual expense to educate 1 student = $ 1256
The increasing rate for 1 student per year = $ 36
Now,
Total increasing cost = 487 × 36 = $ 17532
Now,
Total cost of decreasing students per year = $ 1256 ×16 = $ 20096
Now,
Rate of change = $ 20096 - $ 17532 = $2564
∴ we get
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
jazz Corporation owns 10 percent of the Mitchell Corporation stock. Mitchell distributed a $10,000 dividend to Jazz Corporation. Jazz Corporations taxable income (loss) before the dividend income was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Mitchell Corporation
Answer: $2,000
Explanation:
When a corporation owns less than 20% of another corporation, only 50% of the dividend it receives can be used as a deduction.
In this case, Jazz owns less than 10% of Mitchell and so can use 50% of $10,000 as a deduction:
= 50% * 10,000
= $5,000
However, Jazz incurred a loss of $2,000 which means that they will only need to deduct that $2,000 from the allowable $5,000.
Required information Skip to question Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 Determine its break-even sales dollars if total fixed costs are $42,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$68,852.46
Explanation:
The computation of the break even sales dollars is shown below:
Product Sales variable cost Contribution
A $59,000 $11,400 $47,600
B $51,000 $31,500 $19,500
Total $110,000 $67,100
Now the break even sales dollars is
= $42,000 ÷ $67,100 ÷ $110,000
= $42,000 ÷ 0.61
= $68,852.46
Memphis Company anticipates total sales for April, May, and June of $970,000, $1,070,000, and $1,120,000 respectively. Cash sales are normally 20% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales during the month of June.Multiple Choice$829,200.$730,400.$983,200.$1,053,200.$769,200.
Answer:
Total cash collection= $1,053,200
Explanation:
Giving the following information:
Sales:
April $970,000
May $1,070,000
June $1,120,000
Cash sales are normally 20% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected.
To calculate the total cash collection for June, we need to use the following structure:
Cash collection June:
Sales in cash from June= (1,120,000*0.2)= 224,000
Sales in account from June= (1,120,000*0.8)*0.4= 358,400
Sales in account from May= (1,070,000*0.8)*0.55= 470,800
Total cash collection= $1,053,200
What is the largest concern regarding the
'educate' and 'support' steps in the
process of implementing change?
A. Time
B. Expense
C. Difficulty
In 20X1, Modern Property Groups collected rent revenue for 20X2 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property. But for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 20X1 was $40,000. Taxable income is $100,000. No temporary differences existed at the beginning of the year, and the tax rate is 30%. The journal entry to record income taxes at the end of 20X1 includes (Select all that apply.)
Answer:
Debit deferred tax asset for $12,000
Debit income tax expense for $18,000
Credit income tax payable for $30,000
Explanation:
The journal entries will look as follows:
Date Account Name and Description Debit ($) Credit ($)
20X1 Deferred tax asset (w.1) 12,000
Income tax expense (w.3) 18,000
Income tax payable (w.2) 30,000
(To record income taxes at the end of 20X1.)
Workings:
w.1: Deferred tax asset = Deferred portion of the rent collected in 20X1 * Tax rate = $40,000 * 12% = $12,000
w.2: Income tax payable = Taxable income * Tax rate = $100,000 * 30% = $30,000
w.3: Income tax expense = Income tax payable - Deferred tax asset = $30,000 - $12,000 = $18,000
What is the expected return on Andre’s stock portfolio? 9.70% 13.10% 14.55% 7.28% Suppose each stock in Andre’s portfolio has a correlation coefficient of 0.4 (rho = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 36%, the portfolio’s standard deviation ( σp ) most likely is 36%.
Answer:
a. 9.70%
Explanation:
Note: Missing word is attached below as picture
Expected Rate of Return = Sum of (Return *Percentage of Portfolio)
Expected Rate of Return = [6.00% *0.20] + [14.00%*0.30] + [11.00%*0.35] + [3.00%*0.15]
Expected Rate of Return = 1.20% + 4.20% + 3.85% + 0.45%
Expected Rate of Return = 9.70%
If weighted average of the risk of the individual securities included in the partially diversified portfolio of four stocks is 36%, then the portfolios standard deviation most likely is > 36%.
Explain why unions play a reduced role in the US economy today.
Answer:
I won`t lie, unions are useless. They got everything they need.
Explanation:
There used to working conditions for absolute terrible . Then unions took action, boom done. Now unions is all about money. The leaders get rich off of people who want better pay like 15 bucks to flip a burger. That is just well, sad to be payed 15 an hour to flip burgers at a fast food place meant for high schoolers. See what I am saying?
Answer:
Unions are good for all workers. They improve wages, benefits, and working conditions, and helped create the middle class. Unions raise wages for all workers. ... Even today, union workers earn significantly more on average than non-union counterparts and union employers are more likely to provide benefits
Explanation:
Edge 2021
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, you come across several items needing further consideration. Currently, net income is $87,000.
a. An insurance policy covering 12 months was purchased on October 1, 2018, for $16,200. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2018.
b. During 2018, the company received a $2,700 cash advance from a customer for services to be performed in 2019. The $2,700 was incorrectly credited to Service Revenue.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $2,100 were on hand at December 31, 2018.
d. Trojan borrowed $57,000 from a local bank on September 1, 2018. Principal and interest at 9% will be paid on August 31, 2019. No accrual was made for interest in 2018.
Answer:
$76,440
Explanation:
Calculation to determine the proper amount of net income as of December 31, 2018
Net income $87,000
Less Adjusted for insurance ($4,050)
($16,200*3/12)
Less Adjusted for deferred income ($2,700)
Less Adjusted for supplies ($2,100)
Less Adjusted for interest ($1,710)
($57,000*9%*4/12)
Net income (Adjusted) $76,440
Therefore The the proper amount of net income as of December 31, 2018 will be $76,440
Blue Co. had the following first-year amounts related to its $12,000,000 construction contract: Actual costs incurred and paid $ 3,000,000 Estimated remaining costs to complete 6,000,000 Progress billings 3,500,000 Cash collected 3,100,000 Assuming the contract qualifies for revenue recognition over time, what total amount (excluding cash) should Blue Co. recognize as current assets at year end
Answer:
$900,000
Explanation:
The computation of the total amount excluding cash is shown below:
But before that following calculations need to be done
% completion during the year is
= $3,000,000 ÷ ($3,000,000 + $6,000,000)
= 33.3333%
Now Total revenue to be recognized for the year is
= $12,000,000 × 33.33333%
= $4,000,000
Profit for the year is
= $4,000,000 - $3,000,000
= $1,000,000
Now Accounts receivables at the end of year is
= Billings - Collection
= $3,500,000 - $3,100,000 = $400,000
Now Cost and profits in excess of billings
= ($3,000,000 + $1,000,000) - $3,500,000
= $500,000
And, finally Total amount of current assets to be recognize at year end is
= $400,000 + $500,000
= $900,000
This information relates to Pharoah Co..
1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30.
2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company.
3. On April 7, purchased equipment on account for $32,000.
4. On April 8, returned $3,500 of April 5 merchandise to Cullumber Company.
5. On April 15, paid the amount due to Cullumber Company in full.
Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. Pharoah Co. uses a perpetual inventory system.
Answer and Explanation:
The journal entries are shown below:
On April 5
Inventory Dr $28,600.00
To Accounts payable $28,600.00
(Being purchase of inventory on account is recorded)
On April 6
Inventory Dr $580.00
To Cash $580.00
(Being freight payment is recorded)
On April 7
Equipment Dr $32,000.00
To Accounts payable $32,000.00
(Being purchase of equipment is recorded)
On April 8
Accounts payable Dr $3,500.00
To Inventory $3,500.00
(Being purchase returns is recorded)
On April 15
Accounts payable Dr $25,100.00 ($28,600- $3,500)
To Cash $24,096.00
To Inventory $1,004.00 ($25,100 × 4%)
(Being payment to the supplier is recorded)
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38,000 units at a price of $130 per unit.
Manufacturing costs
Direct materials per unit $54
Direct labor per unit $20
Variable overhead per unit $6
Fixed overhead for the year $506,000
Selling and administrative costs
Variable selling and administrative cost per unit $12
Fixed selling and administrative cost per year $115,000
Required:
Assume the company uses absorption costing. Determine its product cost per unit.
Answer:
Unitary costs= $91
Explanation:
Giving the following information:
Direct materials per unit $54
Direct labor per unit $20
Variable overhead per unit $6
Fixed overhead for the year $506,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary costs= (506,000 / 46,000) + 54 + 20 + 6
Unitary costs= $91
A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank guarantees an interest rate and the saver commits to leaving his or her deposit in the account for an agreed-upon period of time. National Trust Savings offers five-year CDs at 8.26% compounded daily, and Bank of the Future offers five-year CDs at 8.29% compounded annually. Compute the annual yield for each institution. (Round your answers to two decimal places.)
Answer:
8.25 / 365 = 0.0226027397 percent daily interest
So the daily compounding gives you
1.000226027397 on your money each day
1.000226027397^365 = 1.08598855
So this one is better, it's nearly 8.6 % yield,
vs less than 8.3% for the one with annual compounding.
Take 1.0828 or 1.0860 to the fifth power to see the difference over 5 years.
During the meeting, Carlos has been emphasizing the importance of the change, and trying to persuade employees to accept the transition. He also thinks losing employees may be acceptable if they cannot accept the change. According to Lewin’s force field analysis model, Carlos behaviors reflect his effort to facilitate the ______ process.
Answer:
During the meeting, Carlos has been emphasizing the importance of the change and trying to persuade employees to accept the transition. He also thinks losing employees may be acceptable if they cannot accept the change. According to Lewin’s force field analysis model, Carlos's behaviors reflect his effort to facilitate the change process.
Explanation:
Lewin's Force Field Theory has a three-stage theory, the Unfreezing, Change, and the Refreezing stages. This theory talks about how organizations are pushed toward change by driving forces.
This desired change starts by unfreezing the behaviors that are not wanted, in other words, Carlos would make employees see the need to embrace change for the company to move forward. While the Change theory talks about the transition to that desired behavior and the actual change is implemented. Finally, the Refreezing theory aims to make the change permanent as people tend to easily go back to behaviors they have been used to because employees may resist change due to their desire to remain in their comfort zones. Behaviors of employees could point to the driving and restraining forces in an organization.
On July 15, Piper Co. sold $24,000 of merchandise (costing $12,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions. On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $720 cash. On November 20, the Bucks played the first game of the six game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.
Answer:
July 15
Dr Cash $24,960
Cr Sales $24,000
Cr Sales Taxes Payable $960
Dr Cost of Goods Sold $12,000
Cr Merchandise Inventory $12,000
On August 1
Dr Sales Taxes Payable $960
Cr Cash $960
On November 3
Dr Cash $720
Cr Unearned Ticket Revenue $720
On November 20
Dr Unearned Ticket Revenue $120
Cr Ticket Revenue $120
Explanation:
Preparation of the journal entries
July 15
Dr Cash $24,960
($24,000+$960)
Cr Sales $24,000
Cr Sales Taxes Payable $960
($24,000*4%)
Dr Cost of Goods Sold $12,000
Cr Merchandise Inventory $12,000
On August 1
Dr Sales Taxes Payable $960
Cr Cash $960
($24,000*4%)
On November 3
Dr Cash $720
Cr Unearned Ticket Revenue $720
On November 20
Dr Unearned Ticket Revenue $120
Cr Ticket Revenue $120
(1/6*$720)