Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card. Round to the nearest month.
b. If Simon makes monthly payment of $30, how many months will it be before he pays off the card. Round to the nearest month.
c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan? Make sure you use three decimal places for N.
Answer:
A.50 months
B.12.92 months
C.$112.38
Explanation:
a). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$10
r=(0.18/12)
Let plug in the formula
$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $10 = {1 - (1.015)-n} / 0.015
35 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.525
-n[log(1.015)] = log(0.475)
-n[0.0149] = -0.7444
n = -0.7444 / -0.0149
n= 50 months
b). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$30
r=(0.18/12)
Let plug in the formula
$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $30 = {1 - (1.015)-n} / 0.015
11.67 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.175
-n[log(1.015)] = log(0.825)
-n[0.0149] = -0.1924
n = -0.1924 / -0.0149 =
n=12.92 months
c). Calculation for the Total Amount Paid under $10-a-month plan
Using this formula
Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment
Where,
No.of Payments =50
Monthly Payment=10
Let plug in the formula
Total Amount Paid under $10-a-month plan= 50 * $10 = $500
Calculation for the Total Amount Paid under $30-a-month plan
Using this formula
Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment
Where,
No. of Payments =12.92
Monthly Payment=$30
Let plug in the formula
Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62
Hence,
Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan
= $500 - $387.62
= $112.38
On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,900, terms 3/10, n/30. Grace pays for those services on March 20.
For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20.
Record service revenue on account
date general journl Debit credit
March 12
Record cash revenue on account
date general journl Debit credit
March 20
Answer:
March 12
Accounts Receivable 10900 Dr
Service Revenue 10900 Cr
March 20
Cash 10573 Dr
Service discount 327 Dr
Accounts Receivable 10900 Cr
Explanation:
March 12
The provision of services on account is recorded by a debit ot the asset account in form of accounts receivable and a credit to the service revenue. The full amount/ gross amount of service revenue is recorded as we assume that we use the gross method to record the service revenue.
March 20
The terms of credit which are 3/10 means that a 3% discount is allowed by Medical Waste Services if the Grace Hospital pays within the 10 days of the service provided on account. As the Grace Hospital pays within this period, a service discount of 10900 * 0.03 = 327 is allowed.
The remaining cash to be collected is 10900- 327 = 10573
Patton Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2011, paying $376,100. The bonds mature January 1, 2021; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 11%. Patton Company uses the effectiveinterest method and plans to hold these bonds to maturity. 5. On July 1, 2011, Patton Company should increase its Held-to-Maturity Debt Securities account for the Scott Co. bonds by
Answer:
$685.55
Explanation:
Patton company ;
Bond payments $376,100 × 0.055
= $20,685.55
Less face amount $400,000 × 0.05
= $20,000
Held-to-maturity debt securities $685.55
($20,685.55 - $20,000)
Note:
Effective yield(market rate)
= 11% ÷ 2
= 5.5%
Bonds
= 10% ÷ 2
= 5%
Classify each of the tasks according to whether or not they are tasks of the Federal Reserve. Tasks of the Federal Reserve Not tasks of the Federal Reserve
Answer:
Tasks of the Federal Reserve
Managing the U.S. Money Supply - one of the main functions of the Federal Reserve is managing the money supply: the quantity of money that there is in the economy. The Federal Reserve can either increase or contract the money supply.
Printing paper currency - when the Federal Reserve increases the money supply, part of that supply is printed as paper currency.
Acting as a lender of last resort - when commercial banks or governments do not have any other creditor, they turn to the Federal Reserve, which has the obligation to act as a lender of last resort.
Engaging in monetary policy - this is the reason why the Federal Reserve exists in first place. The main activity of the Fed is to engage in monetary policy, mainly with the goal of controlling inflation, and easing economic cycles.
Not tasks of the Federal Reserve
Creating the federal budget - the federal budget is developed by the president, and also by the Congress.
Engaging in fiscal policy - fiscal policy is responsability of the president, and the Congress.
Managing Europe's money supply - The Federal Reserve only manages the money supply of the United States. Europe's money supply is managed by the European Central Bank in the case of the Eurozone, and by different national central banks in the case of countries that are not part of the Euro.
Answer:
Tasks of the Federal Reserve:
Managing the US money supply
Acting as a lender of last resort
Engaging in monetary policy
Not tasks of the Federal Reserve:
Creating the federal budget
Printing paper currency
Engaging in fiscal policy
Managing India’s money supply
The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then formed a corporation and invested $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million.
a. What are the book value and market value of the firm?
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
Answer:
Book Value is $0.2 million
Market Value is $50 million
Book Value per share is $0.2 per share
Market Value per share is $50 per share
Explanation:
Part A. The book value of Alchemy Products Inc., is $0.2 million and its market value is $50 million.
Part B.
The Book value per share of Alchemy Products Inc., is calculated as under:
Book Value per share = $0.2 million / 1 Million shares = $0.2 per share
The Market value per share of Alchemy Products Inc., is calculated as under:
Market Value per share = $50 million / 1 Million shares = $50 per share
The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $138,000 $690,000 Commercial Division 138,600 770,000 Internet Division 64,500 430,000 Assume that management has established a 10% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Income from operations $138,000 $138,600 $64,500 Minimum acceptable income from operations as a percent of invested assets Residual income $ $ $ b. Which division has the most residual income
Answer:
a. Minimum acceptable income from operations as of 10% of invested assets
Retail Division = $690,000 * 10% = $69,000
Commercial Division = $770,000 * 10% = $77,000
Internet Division = $430,000 * 10% = $43,000
Residual Income = Income from Operation - Minimum acceptable income from operations as of 10 percent of invested assets
Retail Division Residual Income = $138,000 - $69,000
= $69,000
Commercial Division Residual Income = $138,600 - $77,000
= $61,600
Internet Division Residual Income = $64,500 - $43,000
= $21,500
b. Retail Division has the most Residual Income with the amount of $69,000
Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.
a) True
b) False
Answer:
The answer is true.
Explanation:
Both of payback period and Accounting Rate of Return do not consider the time value of money. And this is one of the big disadvantages in using these methods as a means of valuating capital project.
While payback period is the length of time it takes a firm to recover the cost of an investment, accounting rate of return is annual return(profit) on investment.
Payback period is only interested in when it will get its Investment back. It ignores the value or time after this investment has been realized.
Suppose that the government imposes a $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be ______, coffee. The number of cups of coffee bought in coffee shops will _______.
Answer:
increase, decrease
Explanation:
In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.
Answer:
increasedecreaseExplanation:
If the dividend yield for year one is expected to be 5% based on the current price of $50, what will year three dividend (DIV3) be if dividends grow at a constant 4%
Answer:
Div₃ = $2.81
Explanation:
dividend yield = current dividend / current stock price
0.05 = current dividend / $50
current dividend = $50 x 0.5 = $2.50
Div₀ = $.250
Div₁ = $2.50 x 1.04 = $2.60
Div₂ = $2.60 x 1.04 = $2.704 = $2.70
Div₃ = $2.704 x 1.04 = $2.81
A record collector has agreed to sell her entire collection to a historical museum in three years at a price of $100,000. The current appropriate interest rate is 7 percent. At what price should she value her collection today
Answer:
$81,629.79
Explanation:
According to the situation, the solution to the price that valued her collection today is as follows
Future value = Present value × (1 + interest rate)^number of years
$100,000 = Present value × (1 + 0.07)^3
So, the present value is
= $100,000 ÷ (1.07)^3
= $81,629.79
Hence, the price she valued her collection today is $81,629
Based on the information given the price should she value her collection today is $81,629.79.
Using this formula
Future value = Present value × (1 + interest rate)^Time
Using the formula to solve for PV
$100,000 = PV× (1 + 0.07)³
PV= $100,000 ÷ (1.07)³
PV=$100,000÷1.225043
PV= $81,629.79
Inconclusion the price should she value her collection today is $81,629.79.
Learn more about present value here:https://brainly.com/question/17322936
Campbell Co. has net sales revenue of $1,320,000, cost of goods sold of $760,700, and all other expenses of $297,000. The beginning balance of stockholders' equity is $407,000 and the beginning balance of fixed assets is $368,000. The ending balance of stockholders' equity is $607,000 and the ending balance of fixed assets is $396,000. The fixed asset turnover ratio is closest to:
Answer:
3.46
Explanation:
Calculation for Campbell Co. fixed asset turnover ratio
First step is to find the Average net fixed assets
Using this formula
Average Fixed assets= Fixed assets Beginning balance +Fixed assets ending balance /2
Let plug in the formula
Average Fixed assets= $368,000 + $396,000/ 2
Average Fixed assets=$764,000/2
Average Fixed assets=$382,000
Second step is to calculate for the Fixed asset turnover
Using this formula
Fixed asset turnover = Net revenue ÷ Average net fixed assets
Let plug in the formula
Fixed asset turnover= $1,320,000 ÷ $382,000
Fixed asset turnover= 3.46
Therefore Campbell Co. fixed asset turnover ratio will be 3.46
To determine the realized return on an investmen, the investor needs to know:________
1. Income received
2. The cost of an investment
3. The sale price of the investment
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The correct answer all of the above is missing
Explanation:
In order to determine the realized return on investment, for instance, stock, one needs to the income received(dividend) the initial purchase price as well as the sale price of the investment as shown in the formula below:
return on investment=P1-Po+D/Po
P1 is the sale price of investment
Po is the initial cost of investment
D is the income received
Landow Company uses variable costing for internal purposes and wants to restate income to that of absorption costing for external reporting purposes. Landow's income under variable costing is $630,000. Fixed production cost in ending inventory is $120,000 and $85,000 in beginning inventory. What is Landow's income under absorption costing?
Answer:
$635,000
Explanation:
The computation of the net income under absorption costing is shown below:
= Income under variable costing + fixed production cost in ending inventory - beginning inventory
= $630,000 + $120,000 - $85,000
= $635,000
By adding the fixed cost and deduct the beginning inventory to the variable costing income we can easily calculate the absorption costing income
Are there differences in employee retention due to gender, or whether the employee is from the local area in the data in the worksheet Employee Retention?
Answer:
Yes there are differences in employee retention based on gender.
Explanation:
Employee retention refers to the ability of an organization to retain its good performing employees. There may be some market factors affecting the retention rate. There are many factors that affect employee retention. There can be difference in employee retention based on gender. It is found that women work 10% more harder than the men even the women have home care duties they still manage to balance their work and life.
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
1. Compute the unit contribution margin.
2. Prepare a CVP income statement that shows both total and per unit amounts.
3. Compute Carla Vista’ break-even point in units.
4. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
First, we need to determine the unitary contribution margin:
Unitary contribution margin= 410 - 328= $82
Contribution margin income statement:
Sales= 600*410= 246,000
Total variable cost= 600*328= (196,800)
Total contribution margin= 49,200
Fixed costs= (36,900)
Net operating income= $12,300
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 39,200/82
Break-even point in units= 478 units
Finally, the income statement for the break-even point:
Sales= 478*410= 195,980
Total variable cost= 478*328= (156,784)
Total contribution margin= 39,196
Total fixed costs= (39,200)
Net operating income= (4)
If during the process of negotiating a transaction a real estate licensee discourages a buyer from seeking legal advice on the grounds that the licensee will look into the problem, that licensee is acting:________.
Answer: illegally
Explanation:
One of the requirements in real estate agency regulations is that every listing agreement should have an expiration date.
If during the process of negotiating a transaction a real estate licensee discourages a buyer from seeking legal advice on the grounds that the licensee will look into the problem, that licensee is acting illegally. The licensee has no right to discourage the buyer from seeking legal advice.
On February 12, Travis Company purchased merchandise on account from a supplier for $10,300. terms 2/10, net 30.
On February 14. Travis returned $1,550 of the merchandise purchased.
On February 17, Travis Company paid for the merchandise.
Assume Travis Company is using the periodic inventory system, record the journal entries required for the above transactions.
Answer:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
February 17
Dr Accounts Payable 8,750
Cr Cash 8,575
Cr Merchandise Inventory 175
Explanation:
Preparation of the Journal entries for Travis Company using periodic inventory system
A. Based on the information given we were told that the company purchased merchandise on account from a supplier for the amount of $10,300 this means that the transaction will be recorded as:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
B. Since the company returned the amount of $1,550 of the merchandise purchased this means that the transaction will be recorded as:
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
C. Based on the information given we were told that the company paid for the merchandise, this means that the transaction will be recorded as:
February 17
Dr Accounts Payable 8,750
(10,300-1,550)
Cr Cash 8,575
(98%*8,750)
Cr Merchandise Inventory 175
(2%*8,750)
Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. Speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room.
The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates:
Direct labor-hours required to support estimated output 20,000
Fixed overhead cost $ 350,000
Variable overhead cost per direct labor-hour $ 1.00
Required:
1. Compute the predetermined overhead rate.
2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job:
Direct materials $ 590
Direct labor cost $ 109
Direct labor-hours used 6
Compute Mr. Wilkes’ total job cost.
3. If Speedy establishes its selling prices using a markup percentage of 40% of its total job cost, then how much would it have charged Mr. Wilkes?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct labor-hours required to support estimated output 20,000
Fixed overhead cost $ 350,000
Variable overhead cost per direct labor-hour $ 1.00
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (350,000/20,000) + 1
Predetermined manufacturing overhead rate= $18.5 per direct labor hour
Job:
Direct materials $ 590
Direct labor cost $ 109
Direct labor-hours used 6
Total cost= 590 + 109 + 6*18.5
Total cost= $810
Finally, the selling price:
Selling price= 810*1.4= $1,134
Childress compnay produces three products, K1, S5, and G9. Each product uses the same type of material. K1 uses 4.5 pounds of the material, S5 uses 3 pounds , and G9 uses 5.5 pounds. Demand for all products is strong but only 59900 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $158.38 $114.80 $204.52
Variable costs 86.00 91.00 139.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
Product K1 S5 G9
$ $ $
Contribution per pound 16.08 7.93 11.91
Explanation:
Contribution per pound is equate to contribution per unit divided quantity of material required per unit of product.
Contribution per pound = Contribution per unit/quantity of material
Contribution per unit =selling price - variable cost per unit
Product K1 S5 G9
$ $ $
Selling price 158.38 114.80 204.52
Variable cost (86.00) (91.00) (139.00)
Contribution per unit 72.38 23.8 65.52
Material per unit (pounds) 4.5 3 5.5
Contribution per pound 16.08 7.93 11.91
Conduct online research on the taxes your state levies and compare them with federal tax rates.
Answer:
In new York federal tax rate is 22% and state tax rate is 6.21%
Explanation:
In New York there are four tax brackets staring from 3.078% on taxable income of $12,000 per annum. Many states have income taxes but their rules may vary significantly. Federal taxes are progressive which mean higher rate of tax is applied on higher incomes. Some states may also have progressive income tax policies. There may also be a flat rate for everyone which means every individual has to pay same level of tax rate irrespective of their income.
Answer: in Illinois it’s 15% for Levies rather than 4.95% for federal tax rates.
Explanation:
The Gerding Company discovered these errors made in year 3: Failed to record Unearned Revenue: $15 Failed to record Accrued Interest Expense: $7 Year 4 Net Income will be:
Answer:
Overstated $8
Explanation:
Calculation for Gerding Company Net income
Using this formula
Net income =Failure to record Unearned Revenue - Failure record Accrued Interest Expense
Let plug in the formula
Net income =$15-$7
Net income =$8
Therefore Gerding Company Net income will be an overstated of the amount of $8
You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $3,350,000 purchase price. The monthly payment on this loan will be $16,800. What is the APR on this loan? What is the EAR on this loan?
Answer:
APR = 2.43%
EAR = 2.46%
Explanation:
(a) What is the APR on this loan?
Annual percentage rate (APR) is the yearly interest rate that a borrower pays or an investor earns. It is expressed in percentage term without taking compounding into consideration.
This can be calculated using the Annual Percentage Rate (APR) formula as follows:
APR = {[(Fees + Interest amount) / Principal / n] * 365} * 100 ……………… (1)
Where;
APR = ?
Fees = 0
Interest amount = Interest rate * Purchase price = 85% * $3,350,000 = $2,847,500
Principal = Purchase price = $3,350,000
n = Number of days in the mortgage term = 365 days * 35 years = 12,775 days
Substituting the values into equation (1), we have:
APR = {[(0 + 2,847,500) / 3,350,000 / 12,775] * 365} * 100
APR = 2.43%
(b) What is the EAR on this loan?
The Effective Annual Rate (EAR) refers to the interest rate earned by an investor in a year after the compounding has been adjusted for over a specified period.
This can be calculated using the Effective Annual Rate (EAR) formula as follows:
EAR = (1 + i/n)^n – 1 ..................... (2)
Substituting the values into equation (2), we have:
i = Stated annual interest rate = APR = 2.43%, or 0.0243
n = Number of compounding periods = 12
EAR = (1 + 0.0243/12)^12 – 1
EAR = 0.0246, or 2.46%
During 2008, Gum Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2 percent within twelve months following the sale and 4 percent in the second twelve months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2008 and 2009, are as follows:
Sales Actual Warranty Expenditures
2008 $150,000 $2,250
2009 250,000 7,500
$400,000 $9,750
What amount should Gum report as estimated warranty liability on its December 31, 2009 balance sheet?
a. $7,500
b. $4,250
c. $11,250
d. $14,250
e. $16,500
Answer:
d. $14,250
Explanation:
Calculation of the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet
First step
2% within twelve months following the sale + 4 % in the second twelve months following the sale.
Will give us 6%
Second step is to calculate the estimated warranty liability that should be reported
Sales Total of $400,000×6%
=$24,000
Hence,
Estimated warranty liability =$24,000 -Total of actual warranty expenditures of $9,750
Estimated warranty liability=$14,250
Therefore the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet will be $14,250
Janice and Thom form Level Corporation. Janice transfers equipment (worth $60,000, basis of $40,000) for 50% of the stock in Level. Thom transfers inventory (worth $20,000, adjusted basis of $15,000) and provides services worth $40,000 for 50% of the stock.
Because this transaction_______(meet or not) the control of the corporation requirement, Janice has income of $_______and Thom has income of $______.
Answer:
Because this transaction MEET the control of the corporation requirement, Janice has income of $0 and Thom has income of $
Explanation:
Based on the information we were told that Thom provide service that is worth $40,000 which means that the amount of $40,000 is Thom income but we were not told that Janice has an income, which means that Janice will have an income of $0.
Hence, Because this transaction MEET the control of the corporation requirement, Janice has income of $0 and Thom has income of $
40,000.
Free Spirit’s marketing and sales director doesn’t think that the firm’s market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks that the demand for Free Spirit’s product is relatively inelastic (so the firm can increase the sales price without significantly decreasing the volume of product sold). Assuming that the firm can sell 200,000 units, what price must it set to break even? $67.69 per unit $85.50 per unit $78.38 per unit $71.25 per unit
Answer:
$60.75
Explanation:
your question seems incomplete. here is the full question used in answering this question
Free Spirit Industries Inc. is considering a project that will have fixed costs of $10,000,000. The product will be sold for $41.50 per unit, and will incur a variable cost of $10.75 per unit. p na r so Free Spirit's marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks that the demand for Free Spirit's product is relatively inelastic (so the firm can increase the sales price without significantly decreasing the volume of product sold). Assuming that the firm can sell 200,000 units, what price must it set to break even? O $57.71 per unit O $72.90 per unit O $60.75 per unit O $66.83 per unit
Breakeven price = (fixed cost / quantity sold) + variable price per unit
($10,000,000 / 200,000) + $10.75 = $60.75
Marco was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing
n the video, Marco says he was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing ............... when they send Marco to seminars instead of, for example, increasing his salary in exchange for his continued high performance at MBSC. They could maintain Marco’s high level of motivation by:........................
A. Sending him on an all-expense-paid Caribbean cruise for two weeks
B. Reimbursing his tuition as he seeks a master’s degree in fitness management
C. Reassuring him that he has a job with MBSC as long as he performs well
D. Setting up an employee discount program at a nearby coffee shop, laundromat, and tasalon
Answer:
Valence
C. Reassuring him that he has a job with MBSC as long as he performs well
Explanation:
By sending Marco to seminars, Mike and Bob are addressing VALENCE; a psychological value an individual put on another person, in relation to the attractiveness of individual whose a psychological value has been placed. In this case, a psychological value placed on Macro by his managers is the valuable rewards they would get from his professional development, rather than increasing his salary in exchange for high performance.
Therefore, they could maintain Marco’s high level of motivation by reassuring him that he has a job with MBSC as long as he performs well.
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $522,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $578,000. In the 2021 financial statements, Smith will report (ignore taxes):
Answer:
Smith will report an investment income of $56,000 in its income statement.
Explanation:
Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.
The decision to accept an additional volume of business should be based on a comparison of the revenue from the additional business with the sunk costs of producing that revenue.
a) true
b) false
Answer:
false
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. it should not be considered when making future decisions
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
June 12, 2021 Provide services to customers on account for $41,000.
September 17, 2021 Receive $25,000 from customers on account.
December 31, 2021 Estimate that 458 of accounts receivable at the end of the year will not be received.
March 4, 2022 Provide services to customers on account for $56,000.
May 20, 2022 Receive $10,000 from customers for services provided in 2021.
July 2, 2022 Write of the remaining amounts owed from services provided in 2021.
October 19, 2022 Receive $ 45,000 from customers for services provided in 2022.
December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received.
Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Provide services to customers on account for $35,000.
Answer:
Journal Entries are given below
Explanation:
June 12, 2021
Provide services to customers on account of $41,000.
DEBIT CREDIT
Receivable account $41,000
Services Revenue $41,000
September 17, 2021
Receive $25,000 from customers on account.
DEBIT CREDIT
Cash $25,000
Receivable $25,000
December 31, 2021
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt($16,000x45%) $7,200
Allowance for doubtful debt $7,200
March 4, 2022
Provide services to customers on account for $56,000
DEBIT CREDIT
Receivable account $56,000
Services Revenue $56,000
May 20, 2022
Receive $10,000 from customers for services provided in 2021.
DEBIT CREDIT
Cash $10,000
Receivable $10,000
July 2, 2022
Write of the remaining amounts owed from services provided in 2021.
Working: $41,000 - $25,000 - $10,000 = $6,000
DEBIT CREDIT
Allowance for doubtful debt $6,000
Account Receivable $6,000
October 19, 2022
Receive $ 45,000 from customers for services provided in 2022.
DEBIT CREDIT
Cash $45,000
Receivable $45,000
December 31, 2022
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt (w) $3,750
Allowance for bad debt $3,750
Working:
($56,000 - $45,000) x45% = $4,950
Balance in Allowance account at 31 dec 2021 = 7,200
Bad debt written off = 6,000
Remaining balance = 1,200
Allowance for doubtful debt at 31 dec 2022 = $4,950 - $1,200
Allowance for doubtful debt at 31 dec 2022 = $3,750
1. Calculate the growth rate between 2010 and 2014 for a company with the following revenue. Year Revenue 2010 735 2011 985 2012 1152 2013 1347 2014 1658 2015 1895
Answer: 230.75 (units/ year)
Explanation:
To compute the growth rate between 2010 and 2014, we use the following formula :
Growth rate = [(Revenue in 2014) -(Revenue in 2010)]÷ [Difference between 2010 and 2014]
From the table, Revenue in 2010 = 735
Revenue in 2014= 1658
Then, Growth rate = (1658 -735)÷ (2014-2010)
= 923÷ 4
= 230.75
Hence, the growth rate between 2010 and 2014 = 230.75 (units/ year)