Answer:
The answer is $289,640.08
Explanation:
Solution
Given that:
You want to make a withdrawal of the amount = $100,000 per year
Number of years = 20
Interest per year = 8%
Now,
Let the current balance required is X
The amount in bank due to the interest after 19 years =X(1+0.08)^19
This should be equal to the 100,000 drawn forever.
Thus,
X(1.08)20-100,000=A(1.08)19 [i.e after drawing $100,000 a year later, this same amount should remain]
Hence,
X = $289,640.08
Therefore the amount you will have to have in your retirement account in year 0 is $289,640.08
Describe a problem you face in your everyday life or at work. How might you use hypothesis testing to find a solution or improvement to that problem? Would you conduct a one-sample or two-sample test? What would be your null and alternative hypotheses?
Answer:
The common problem i encounter mostly is the statistical modelling problem.
In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.
My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.
Explanation:
Solution
The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.
In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.
Since there are always two variables or two categories. hence it has a two sample test.
The Hypothesis can be shown below:
Null hypothesis:
H0:There is no significant effect of independent variable on dependent variable.
Alternative hypothesis:
Ha: There is significant effect of independent variable on dependent variable.
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table.
Reserve Requirement Simple Money Multiplier Money Supply
(Percent) (Dollars)
25
10
A lower reserve requirement is associated with a money supply.
Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to worth of U.S. government bonds.
Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to worth of U.S. government bonds in order to increase the money supply by $100.
Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply.
The Fed cannot control the amount of money that households choose to hold as currency.
The Fed cannot prevent banks from lending out required reserves.
The Fed cannot control whether and to what extent banks hold excess reserves.
Answer: The answers are provided below
Explanation:
A. Total Reserve = $100
Money supply = Total reserve × multiplier
When the reserve requirement is 25%,
Simple money multiplier = 100/25 = 4
Money supply = 100 × 4 = $400
When the reserve requirement is 10%,
Simple money multiplier = 100/10 = 10
Money supply = 100 × 10 = $1000
B. A lower reserve requirement is associated with a (larger) money supply. This is done when the government wants more money to be in circulation. It is an expansionary policy.
C. Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to (purchase 100 × 10% = $10) worth of United States government bonds.
D. Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to (fall to 100 ÷ 20=5). Under these conditions, the Fed would need to (purchase 100 × 20% = $20) worth of U.S. government bonds in order to increase the money supply by $100.
E. The statements that help to explain in the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves
The Money Multiplier denotes how an initial deposit can result in a larger final increase in the total money supply.
What do you mean by money multiplier?The money multiplier is a term in the financial economy that is the act of generating money in the economy through credit creation, based on a fractional banking system.
Money multiplication is also known as cash multiplication.
[tex]\rm\,Total\; Reserve = \$100\\\\Money\; supply = Total \;reserve \; \times \rm\, multiplier\\\\When \;the\; reserve \;requirement \;is \;25\%\\\\Simple\; money \;multiplier\; = \dfrac{1}{25\%} = 4\\\\Money \;supply = 100 \times 4 = \$400\\\\When\; the \;reserve\; requirement\; is \;10\%,\\\\Simple\; money \;multiplier = \dfrac{1}{ 10\%} = 10\\\\Money \;supply = 100 \times 10 = \$1000[/tex]
In the real world why the Fed cannot control the money supply are:
• The Fed cannot control the amount of money that households choose to hold as currency.
• The Fed cannot control whether and to what extent banks hold excess reserves.
Hence, the Fed cannot control the amount of money that households choose to hold as currency and the Fed cannot control whether and to what extent banks hold excess reserves are the correct statements.
To learn more about money multiplier, refer:
https://brainly.com/question/14182201
You are an intern to the editor of a small-town newspaper in Mallsburg, Pennsylvania. Your boss, the editor, asks you to write the first draft of an editorial for this week's paper. Your assignment is to describe the costs and the benefits of building a new bridge across the railroad tracks in the center of town. Currently, most people who live in this town must drive 2 miles through thickly congested traffic to the existing bridge to get to the main shopping and employment center. The bridge will cost the citizens of Mallsburg $25 million, which will be paid for with a tax on their incomes over the next 20 years.
Required:
a.What are the opportunity costs of building this bridge?
b. What are the benefits that citizens will likely receive if the bridge is built?
c. What other factors might you consider in writing this editorial?
The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In thecurrent year, the trust earns $3,200 in taxable interest and $8,000 in tax-exempt interest. In addition, the trust recognizes a $2,500 long-term capital gain.The trustee assesses a fee of $1,800 for the year.
a. Compute trust accounting income, where the trust agreement allocates fees andcapital gains to corpus.
b. Same as (a), except that fees are allocated to income.
Answer:
A. Trust agreement allocates fees and capital gains to corpus.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Trust accounting income $11,200
B. When fees are allocated to income.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Less: Fees ($-1,800)
Trust accounting income $9,400
A project consists of three activities: A, B, and C. Activities A and B can begin at time 0 (start of the project), but activity C can only start after B is completed. The project ends when all activities are completed. The durations of the activities were simulated 10 times and the following values were obtained: Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Answer:
Explanation:
Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Since B is the predecessor of C.
Project completion time for each run will be calculated as Maximum (Duration of A, Duration of B +Duration of C).
Represent
Run = R
Duration of A = DA
Duration of B = DB
Duration of C = DC
Project Completion time = PT
R DA DB DC PT
1 51 48 17 48 + 17 = 65
2 60 48 19 48 + 19 = 67
4 31 48 22 48 + 22 = 70
5 30 31 14 31 + 14 = 45
6 41 16 17 41
7 44 12 6 44
8 44 12 10 44
9 45 43 9 43 + 9 = 52
10 60 41 10 60
Total = 546
Total Project completion time in 10 Stimulations = 546
Average project Completion time = 546/10 = 54.6
Therefore, average Project completion time is between 53 and 56 days.
You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by $35,000 per year over 8 years. The equipment costs $200,000. Should you purchase the equipment if your interest rate is 10%?
Answer:
No, you should not purchase the equipment if your interest rate is 10% because you would spent more money on the equipment than what you would save in labor costs.
Explanation:
First, you have to calculate the total amount that you would save in 8 years which is the result of multiplying the amount you save per year for the number of years:
$35,000*8=$280,000
Second, you have to calculate the total amount you would have to pay to purchase the equipment if your interest rate is 10% using the following formula:
A= P(1+rt)
A= accrued amount
P= principal amount: $200,000
r= rate: 0.1
t= time period: 8
A= 200,000*(1+(0.1*8))
A= 200,000*1.8
A= 360.000
According to this, in 8 years you would save $280,000 in labor costs but you would have to pay $360,000 for the equipment which means that you will pay more for the machine than what you would save in costs. Because of this, you should not purchase the equipment if your interest rate is 10%.
Bell expects to produce 1 comma 800 units in January and 2 comma 155 units in February. The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4 comma 950 pounds. Bell desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 860 pounds. Prepare Bell's direct materials budget for January and February.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production:
January= 1,800 units
February= 2,155 units
The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound.
Beginning inventory= 4,950 pounds.
Desired ending inventory= 20% of the next month's direct materials needed for production.
Desired ending balance for February is 4,860 pounds.
To calculate purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
January (in pounds):
Production= 1,800*3= 5,400
Desired ending inventory= (2,155*3)*0.2= 1,293
Beginning inventory= (4,950)
Total= 1,743
Total cost= 1,743*10= $17,430
February (in pounds):
Production= 2,155*3= 6,465
Desired ending inventory= 4,860
Beginning inventory= (1,293)
Total= 10,032
Total cost= 10,032*10= $100,320
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
Hope this helps!!! PLZ MARK BRAINLIEST!!!
The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,100 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $
Answer:
$7,840
Explanation:
The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.
As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:
$9,100-$1,100= $8,000
Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:
$8,000*2%= $160
$8,000-$160= $7,840
According to this, the answer is that the amount of cash required for the payment is $7,840.
Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock 5 years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought 3 years ago for $9,500. What is Pekoe's recognized gain or loss?
Answer:
The answer is $3000
Explanation:
Solution
Given that:
Pekoe sold stock to his sister rose for the amount = $12,000
The stock cost 5 years ago for Pekoe = $16,000
Pekoe sold earl stock for =$6,500
Previous stock for earl 3 years ago = $9,500
Now we have to find the recognized loss of Pekoe
THus,
The sale of stock to rose will be a loss of $ 4000
which is
($12,000 -$16,000) =$4000 loss
Thus,
The sale of stock to Earl will result to the following loss which is state below:
$6,500 - $9,500 = a loss of $3000
Therefore the recognized loss of pekoe is $3000 or -$3000
Note: A loss was recognized here, no gain earned
Answer:
Pekoe would recognize the loss of $3,000.
Explanation:
The sale of stock to Rose would result in a loss of $3,000 ($12,000 (FMV) - $16,000 (cost) = $4,000 loss).
Under the tax law, "losses from sale or exchange of property ... directly or indirectly" are disallowed between related parties. When the property is later sold to an unrelated party, any disallowed loss may be used to offset gain on that transaction.
The sale of stock to Earl (an unrelated party) also results in a loss ($6,500 (FMV) - $9,500 (cost) = $3,000 loss). This is considered an arms-length transaction.
Pekoe would recognize the loss of $3,000.
A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
Item 3Item 3 Manufacturing overhead was estimated to be $385,700 for the year along with 20,300 direct labor hours. Actual manufacturing overhead was $423,400, and actual labor hours were 21,600. The amount debited to the Manufacturing Overhead account would be:
Answer:
$423,400
Explanation:
The Overhead applied to Product Costs are Credited in the Overhead Account whilst the Overheads Actually incurred are Debited. The difference between the debit and credit will represent the amount of overheads under-applied or overheads over applied.
Actual Overheads incurred = $423,400
Applied Overheads = $385,700/20,300 × 21,600
= $ 410,400
Answer:
Debit manufacturing overhead with actual overhead incurred-$423,400
Explanation:
Absorbed overhead = Overhead absorption rate (OAR) × actual direct labour hours
OAR = Budgeted overhead / Budgeted labour hours
= $385,700/20,300 hours=
Absorbed overhead = $19 × 21,600 =$410,400
Absorbed overhead = $410,400 .
In accounting for overhead the following entries would be observed
Debit manufacturing overhead with actual overhead incurred-$423,400
And credit manufacturing overhead with absorbed overhead- $410,400
The difference of $13000 is the over absorbed overhead
Based on this information, you can say that the overall "price level" ___________. A. remained unchanged during the year since the average price for the three goods stayed the same at $ 7.33. B. increased since cashews are now more expensive than almonds and pecans. C. stayed the same since the price of cashews increased but the price of almonds fell. D. there is not enough information to determine the change in the overall price level.
Answer:
D. there is not enough information to determine the change in the overall price level.
Explanation:
A price level is the average of current prices across the entire spectrum of goods and services produced in the economy. To determine the price level, information about current and past period's prices of a basket of goods and services is needed to be compared.
It is only the availability of two or more sets of such information that will enable a comparison to be made and for conclusions to be drawn.
Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon) 1 $ 943.40 2 873.52 3 816.37 a. An 8.5% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be
Answer:
6.997%
Explanation:
To find the answer, we use the Yield to Maturity (YTM) for a Zero Coupon Bond:
YTM = [(F/PV)^1/n] - 1
Where:
F: Face/Par value (the question is telling us that the par value of a 3-year bond is $816.367)
PV: Present Value (which is the same as the price: $1,000)
n: number of periods (in this case 3 years because the coupon is annual)
Now, we plug the amounts into the formula:
YTM = [($1,000/$816.37)^1/3]-1
YTM = 6.997%
During its first year of operations, Mack’s Plumbing Supply Co. had sales of $420,000, wrote off $6,700 of accounts as uncollectible using the direct write-off method, and reported net income of $46,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.
Answer:
The net income would have been $45,550
Explanation:
In order to calculate the amount the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible, we would have make the following calculation:
Net income would have been if the allowance method had been used = $46,200 + $6,700 – ($420,000 × 1 3/4%)
Net income would have been if the allowance method had been used= $45,550
The net income would have been $45,550
Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. The Cabinet Division currently purchases 10,000 units of part Z-25 from the Lock Division for $40. The Cabinet Division has been approached by an outside supplier willing to supply the parts for $36. What is the effect on Morgantown's overall profit if the Lock Divisi
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
Prepare Journal Entries in a Revenue Journal Horizon Consulting Company had the following transactions during the month of October: Oct. 2 Oct. 3 Oct. 14. Oct. 24 Oct. 29 Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380 Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790 Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format revenue journal Accounts Rec. Dr DATE Invoice No. Account Debited Post. Ref Fees Earned Cr Oct. 2 Oct. 3 Oct. 14 Oct. 24 Oct. 31
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp, customer account assuming a zero balance on October 1?
Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
Bobby Jones, an accountant for ABC Corporation, has been suspected of committing fraud. Some information already gathered about the fraud points to Bobby Jones as the most likely perpetrator. In his scheme, Bobby supposedly stole more than $5 million over the past three years. Due to the magnitude of the fraud and to set an example in the company, ABC decides to prosecute Bobby both civilly and criminally.
Describe What will happen to bobby jones during the civil litigation,including the stages of civil litigation that he and ABC will go through.
Answer:
In the civil litigation process what will happen to Bobby Jones are in four stages which are Inquiry and Pleading, Discovery, Motion Practice and Negotiation and Trial and Appeal.
Explanation:
Four steps are involved in the process of civil litigation stated as follows:
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
Inquiry and Pleading: The first step or phase is the inquiry and pleading.
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
(2) Discovery: This is where the various parties gives an effort to get more information as possible
(3) Motion Practice and Negotiation: This occurs prior to trial when bobby files motion to challenge the complaint issued against him.
(4)Trial and Appeal: The last stage is the trial and appeal. this occurs when the previous steps has failed.
In this step the trial is held, both Bobby and ABC Corporations seeks judgement from the judge and the judge issues the jury to put in the final verdict. If both parties are not satisfied with judgement received, they can appeal to a higher court to review the verdict or decision.
Outside the United States and the United Kingdom, concentrated ownership of the company is more the exception than the rule. diffused ownership of the company is more the exception than the rule. partnerships are more important than corporations. none of the options 1.25 points Save Answer
Answer:
Diffused ownership of the company is more the exception than the rule.
Explanation:
Outside the United States and the United Kingdom, diffused ownership is more the exception than the rule mostly because the forms of diffuse corporate ownership tend to have an American or British origin, and from the U.S. and the U.K., they expand to other countries with time.
For example, Limited Liability Companies is a type of company with diffused ownership, and has been exported with different names to other countries, becoming more popular with time.
Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Incomplete question, however I made interferences from an employer perspective.
Answer:
Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.
The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.
Answer:
C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
Took The TestAlpha Industries is considering a project with an initial cost of $8.6 million. The project will produce cash inflows of $2.04 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.79 percent and a cost of equity of 11.39 percent. The debt–equity ratio is .66 and the tax rate is 35 percent. What is the net present value of the project? Multiple Choice $656,266 $625,015 $758,352 $506,837 $729,185
Answer:
$729,185
Explanation:
The computation of the net present value of the project is shown below:-
After-tax cost of debt = Cost of debt × (1 - Tax rate)
= 5.79% × (1 - 0.35)
= 5.79% × 0.65
= 3.76%
Debt-equity ratio = Debt ÷ Equity
we assume Equity = x
Debt = 0.66 x
Total = 1.66 x
WACC = Respective costs × Respective weight
= (x ÷ 1.66 x × 11.39) + (0.66 ÷ 1.66x × 3.76%)
= 6.861445783 + 1.494939759
= 8.356385542 %
Net present value = Cash inflow × (Discount rate^time period - 1) ÷ (WACC × (1 + WACC)^Number of years - Initial cost
= $2,040,000 × (1.0836^6 - 1) ÷ (0.0836 × 1.0836^6) - $8,600,000
= $728,559
which is nearest to
= $729,185
5.Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December 2013 transactions are typical of those that occur at the resort.a)Borrowed $500,000 from the bank on December 1, signing a note payable, due in six months.b)Purchased a new snowplow for $20,000 cash on December 31.c)Purchased ski supplies for $10,000 on account.d)Incurred $22,000 in routine maintenance expenses for the chairlifts; paid cash.e)Received $72,000 for season passes (beginning in the new year).f)Daily lift passes were sold this month for a total of $76,000 cash.g)Received a $320 deposit on a townhouse to be rented for five days in January
Answer and Explanation:
The journal entries are shown below:
a. Cash Dr $500,000
To Short term Note payable $500,000
(Being the borrowed amount is recorded)
Cash is assets and short term note payable is liabilities
b. Equipment Dr $20,000
To cash $20,000
(Being the equipment purchased for cash is recorded)
Equipment and cash both are assets
c. Supplies Dr $10,000
To Account payable $10,000
(Being the purchase of supplies on the account is recorded)
Supplies are assets and account payable is liabilities
d. Repairs and maintenance expense Dr $22,000
To Cash $22,000
(Being the routine maintenance expenses paid for cash is recorded)
Repair and maintenance expense is an expense and cash is assets
e. Cash Dr $72,000
To Unearned revenue $72,000
(Being cash received is recorded)
Cash is assets and unearned revenue is liabilities
f. Cash Dr $76,000
To Service revenue $76,000
(Being cash received is recorded)
cash is assets and service revenue is revenue
g. Cash Dr $320
To Unearned revenue $320
(Being cash received is recorded)
Cash is assets and unearned revenue is liabilities
Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has five years to maturity, whereas the Hardy Corp. bond has 18 years to maturity.
A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?
Answer:
A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
Laurel, Inc. = -8.11%
Hardy Corp. = -18.91%
B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?
Laurel, Inc. = +8.98%
Hardy Corp. = +25.49%
Explanation:
bonds with 6% semiannual coupons, sold at par $1,000
Laurel, Inc. bond maturity in 5 years
Hardy Corp. bond maturity in 18 years
the current price of a bond is the sum of the present value of its face value and coupons. I will use an annuity table to calculate PV of face value and an ordinary annuity table for the coupons:
Laurel, Inc.
market rate 4% = ($1,000 x 0.8203) + ($30 x 8.9826) = $820.30 + $269.48 = $1,089.78, % change = 89.78/1,000 = 8.98%
market rate 8% = ($1,000 x 0.6756) + ($30 x 8.1109) = $675.60 + $243.33 = $918.93, % change = -81.07/1,000 = -8.11%
Hardy Corp.
market rate 4% = ($1,000 x 0.4902) + ($30 x 25.489) = $490.20 + $764.67 = $1,254.87, % change = 254.87/1,000 = 25.49%
market rate 8% = ($1,000 x 0.2437) + ($30 x 18.908) = $243.70 + $567.24 = $810.94, % change = -189.06/1,000 = -18.91%
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.
f a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:
Answer:
$137,000
Explanation:
The land should be recorded in the purchaser's books at $137,000 because according to the information given the land was first acquired at $85,000 in which the they person who acquired it offered to sell it out at $150,000 in which it was again recognized as been worth $140,000 but was later PURCHASED for $137,000 which simply means the amount that the land was later been purchased will be the amount to be recorded in the purchaser's book which is $137,000.
Claudia feels strongly against a law that was recently passed in her hometown. She proceeds to write letters to the local newspaper criticizing the effect of the law. She also marches up and down the sidewalk in front of city hall loudly publicizing her opinion. Which law or principle of law which is most relevant to this situation?
a. Procedural Due Process
b. First Amendment
c. Equal Protection Laws
d. Substantive Due Process
Answer:
Option(b) is the correct answer to the given question
Explanation:
The main objective of the first amendment says that freedom and rights regarding to the correct to the protest, religious faith, appearance as well as assembly.This law is all about the freedom to all the region of the person .
The first amendment prohibits Congress both from supporting yet another religious belief over the other and prohibiting the religious beliefs of even a person as well.As claudia writing the letters to the news paper supportive of the law's effect. She also protests upwards the sidewalk, noisily promoting her viewpoint in front of town hall it is similar to first Amendment law.All the other option are not related to the given scenario that's why these are incorrect option .The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A. Debit to Factory Overhead unanswered
B. Credit to Factory Overhead unanswered
C. Debit to Factory Utilities Payable unanswered
D. Credit to Factory Utilities Payable unanswered
E. Credit to Raw Materials unanswered
F. Credit to Factory Wages Payable unanswered
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
Exercise 15-7 Adjusting available-for-sale securities to fair value LO P3 On December 31, 2017, Reggit Company held the following short-term investments in its portfolio of available-for-sale securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31, 2017, adjusting entry to report these investments at fair value.
Answer:
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale $15,000
Explanation:
Cost :
Verizano corporation bonds payable - 61,400
Preble corporation notes payable - 53,100
Lucerne company common stock - 88500
Fair value :
Verizano corporation bonds payable - 56,200
Preble corporation notes payable - 44,600
Lucerne company common stock - 85, 200
Total:
Cost = $(61,400 + 53100 + 88500) = $203,000
Fair value = $(56,200 + 44600 + 85200) = $188,000
Unrealized amount = cost - fair value
$203,000 - $188000 = ($15000) loss
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale (ST) $15,000
Consider the following alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 11 % per year. b. What is your ranking if the interest rate is 1 % per year? c. What is your ranking if the interest rate is 20 % per year?
Answer and Explanation:
The computation is shown below:
The formula is
= Amount ÷ (1 + interest rate)^number of years
a) Rate = 11%
Value of $140 in 1 year = $140 ÷ (1 + 11%) = $126.13
Value of $240 in 5 years = $240 ÷ (1 + 11%)^5 = $142.43
Value of $350 in 10 years = $350 ÷ (1 + 11%)^10 = $123.26
Now Ranking
Opotion 2 > Option 3 > Option 1
b) Rate = 1%
Value of $140 in 1 year = $140 ÷ (1 + 1%) = $138.61
Value of $240 in 5 years = $240 ÷ (1 + 1%)^5 = $228.35
Value of $350 in 10 years = $350 ÷ (1 + 1%)^10 = $316.85
Now Ranking
Option 3 > Option 2 > Option 1
c) Rate = 20%
Value of $140 in 1 year = $140 ÷ (1 + 20%) = $116.67
Value of $240 in 5 years = $240 ÷ (1 + 20%)^5 = $96.45
Value of $350 in 10 years = $350 ÷ (1 + 20%)^10 = $56.53
Now Ranking
Option 1 > Option 2 > Option 3