inventory g Ronald Homes purchased land for development for $2,500,000. The land will be parceled into lots and sold for vacation homes as follows: 10 lots (Type A) to sell for $100,000 each; 15 lots (Type B) to sell for $70,000 each; and 20 lots (Type C) to sell for $50,000 each. At what amount should Ronald Homes record the Type B lots

Answers

Answer 1

Answer:

Ronald Homes

The amount at which Ronald Homes should record Type B lots is $860,656 while each should be recorded at $57,377.

Explanation:

a) Data and Calculations:

Cost of land for development = $2,500,000

Land parceled into lots as follows:

Type A (10 lots) to sell for $100,000 each = $1,000,000

Type B (15 lots) to sell for $70,000 each =     1,050,000

Type C (20 lots) to sell for $50,000 each =   1,000,000

Total sales value =                                         $3,050,000

Type A lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672

Type B lots to be recorded at: $1,050,000/$3,050,000 * $2,500,000

= $860,656

Type C lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672


Related Questions

Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called

Answers

Answer:

Non - Current or Long term liabilities

Explanation:

According to the Conceptual Framework, Liabilities are present obligation of an entity that arise as a result of past events from which cash outflows are expected.

Liabilities of a long term nature usually exceeding period of 12 months are called Non- Current or Long term Liabilities

Thus, Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called Long term liabilities

Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006

Answers

Answer:

Dividends paid to preferred and common stockholders in 2006 will be :

Preferred stockholders get $20,000

Common stockholders get $0

Explanation:

Hie , I have attached the full question as an image below.

Preferred Stockholders received their dividends first before the common stockholders do. This is because the Preferred Equity have first preference when it comes to payments of dividends.

Also, when the dividends are cumulative, it means that the previous amounts of dividends not paid are payable in future when the distribution is made. Preference dividends are payable as a fixed amount of stocks outstanding during the reporting period.

That said, the amounts of dividends to be paid to preferred and common stockholders in 2006 can be calculated as follows :

2004

Dividends Declared = $0

Preference dividends Payable = ($100,000 + $250,000) × 6 % = $21,000

Paid to Common Shareholders  = $ 0

2005

Dividends Declared = $4,000

Paid to Preference Shareholders = $4,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders = $17,000 (2004) + $21,000 (2005) = $38,000

2006

Dividends Declared = $20,000

Paid to Preference Shareholders = $20,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders =  $18,000 (2005) + $21,000 (2006) = $39,000

What term is used to refer to the decision about whether to report an item in the financial statements

Answers

Answer:

Recognition.

Explanation:

Recognition is a term used to refer to the decision about whether to report an item in the financial statements.

The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the expense recognition principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.

Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.

Banks are financial intermediaries that: A. have customer deposits as its primary asset and loans to borrowers as their primary liability.

Answers

Answer:

False

Explanation:

Exactly the opposite is true: banks are financial intermediaries that have customer deposits as their primary liability, and customer loans as their primary asset.

The reason is that customer deposits can be withdrawn at any time (at least in theory), and the bank is obliged to give back the deposited money to the customer.

Loans, on the other hand, are assets, because they provide the bank with interset, and an asset is simply an economic resource that provides further economic gain to its owner.

Consider the supply of avocados. Explain why a change in the price of fertilizer causes a shift in the supply curve for avocados rather than a movement along the supply curve for avocados.

Answers

Answer:

Only a change in the price of a good leads to a movement along the supply curve of the good. Other factors lead to a shift of the demand curve.

So a change in the price of fertilizers, would lead to a shift of the supply curve. If the price of fertilizers reduce, supply of avocados would increase and the supply curve would shift outward. If the price of fertilizers increases, the supply curve would shift inward

If the price of avocados increased, there would be a movement up along the supply curve of avocados. If the price of avocados decreased, there would be a movement down along the supply curve of avocados.

Explanation:

Because supply curves slope upward, this supports the law of supply that as prices __________, more goods will be supplied.

Answers

Answer: increase

Explanation:

The supply curves slope upward due to the fact that there's a direct relationship between the price of the good and the quantity that's supplied.

This means that when price increase let's say the price of a good moves from $5 to $7, the suppliers will supply more due to the price increase.

A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 2% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

Answers

Answer:

$7,112.73

Explanation:

We can use the financial calcualtor and some formulas or use the easy way and use excel goal seek.

We contruct the table and find the value of the principal cell that makes the principal after 60 payment zero with payment of $1,000 decreasing 2% each month

the following is made:

A1 period    

1 to 60  

B1 couta

1,000 x (power(0.98;period cell)

C1 interest

previous principal x 9/1200

D1 amortization B1 - C1 that is installment less interest

E1 principal: previous principal - current period amortization

--loan schedule is attached to provide more help--

How is efficiency related to the number of firms in an industry characterized by strong economies of scale

Answers

Answer: C. In industries with a strong economies of scale, efficiency tend to increase as the number of firms decrease. As each firm increases its output, it's cost per unit fall. This means that fewer firms each producing higher output leads to greater efficiency than more firms each producing lower output.

Explanation:

Economies of scale refers to the cost savings made as a result of more production occurring. In other words, efficiency leads to costs decreasing as production increases.

In an industry with strong economies of scale therefore, efficiency will increase as the number of firms decreases because this will allow the remaining firms to increase their production and enjoy economies of scale.

McAlister Company is operating at capacity and desires to add a new service to its rapidly expanding business. The service should be added as long as service revenues exceed: the sum of variable costs and any related opportunity costs. variable costs. the sum of variable costs, fixed costs, and any related opportunity costs. the sum of variable costs and fixed costs. fixed costs.

Answers

Answer:

the sum of variable costs and any related opportunity costs

Explanation:

They can add this new service given that this condition is met. As long as service revenue is greater than the sum of variable cost and any related opportunity cost. This is because it covers variable expenses.

If the situation is that a new service/division has been added, then the deciding factor would be if the new product or this division can cover for the various variable expenses that was incurred.

The price of hotdog buns increases sharply. Indicate what will happen to the demand for DECADOGS, a nadonally-recognized brand of hotdog.

Answers

Answer:

The demand for DECADOGS in this scenario will decrease sharply

Explanation:

The demand for DECADOGS in this scenario will decrease sharply. This is because as the price of hotdog buns increases less and fewer individuals will purchase hotdog buns because they simply cannot afford to pay those prices or believe they are not worth the price. Since hotdog buns and hotdog demand are correlated with one another (since they are foods that depend on one another), people will not need to buy DECADOGS hotdogs since they are not buying the hotdog buns.

Jackson Implements, Inc. uses straight-line depreciation for an item of equipment that cost $135,000, had a salvage value of $15,000, and had a six-year useful life. Determine the amount of depreciation to be charged against the machine during each of the six years of its useful life using straight line depreciation. Group of answer choices $15,000 $25,000 $20,000 $18,000

Answers

Answer:

the depreciation that should be charged over the useful life each year is $20,000

Explanation:

The computation of the depreciation expense using the straight line method is shown below:

= (Purchase cost of an equipment - residual value) ÷ (useful life)

= ($135,000 - $15,000) ÷ 6 years

= $120,000 ÷ 6 years

= $20,000

hence, the depreciation that should be charged over the useful life each year is $20,000

the Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is

Answers

Answer:

Human resources (HR).

Explanation:

The Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is Human resources (HR).

Human resources (HR) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of managing and improving the welfare and working conditions of the employees working in an organization.

ou owe your credit company $25,000 and plan to make no payments on your credit card for 1.0 year. Due to your current credit score, your credit card company charges you an APR of 30.0%. If, however, you took immediate measures to improve your credit score by 100points, your credit card company agrees to improve your APR by 5.0%. Assuming you are then unable to make any payments for 12 months, how much money would you save by taking immediate actions to improve your credit score

Answers

Answer: $‭1,603.93‬

Explanation:

APR is monthly so figures have to be adjusted to monthly figures for a year.

If you fail to improve your credit score, the interest you will pay is:

= 25,000 * [(1 + 30%/12)¹² - 1]

= $8,622.22

If you improve your credit score, your APR will decrease to 25.0% from 30%.

Interest paid would be:

= 25,000 *  [(1 + 25%/12)¹² - 1]

= $7,018.29

Savings = 8,622.22 - 7,018.29

= $‭1,603.93‬

Answer:

1,603.93‬

Explanation:

Product recall is an example of: Select one: a. prevention costs b. appraisal costs c. internal failure costs d. external failure costs

Answers

Answer:

External failure costs

Explanation:

A recall of a process is determined as a recommendation for a good or service to be returned, exchanged or replaced after a retailer or consumption watch group uncovers deficiencies that could impede performance, cause frustration or cause producers legal problems.

Which of the following is not correct? Group of answer choices Natural monopolies are often subject to regulation. Public ownership is the most common and effective public policy toward monopolies in the United States. Sometimes the best public policy toward a monopoly is to do nothing. Antitrust laws may prevent mergers that would actually raise social welfare.

Answers

Answer: Public ownership is the most common and effective public policy toward monopolies in the United States

Explanation:

A natural monopoly is a monopoly that occurs as a result of the company having an economies of scale and also due to the huge amount of money required for its investment. These monopolies are subject to regulation.

Also, sometimes the best public policy toward a monopoly is to do nothing. Lastly, antitrust laws may prevent mergers that would actually raise social welfare.

Therefore, based on the question asked, the answer is option B.

If 2.5% GDP growth results in full employment, what would likely happen in the long-run if GDP growth reached 7.5% in the short run

Answers

Answer:

inflation will increase

Explanation:

in this case, the real GDP was higher than the potential GDP. The potential GDP was achieved when the growth rate was 2.5%, a 7.5% growth rate means that the economy grew more that it can sustain. As a result of this, inflation will rise since aggregate demand exceeds aggregate supply.

Inflation should be increased.

The following information should be considered:

When the real GDP is more than the potential GDP. So, the Potential GDP should be accomplished at the time when the growth rate is 2.5%.The 7.5% growth rate represents the economy grown more. Due to this, the inflation should increased as the aggregate demand should more than the aggregate supply.

Therefore we can conclude that Inflation should be increased.

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Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is excited to contribute to the company and to track the value of her shares on the New York Stock Exchange. GlenMack must be:

Answers

Answer:

Public Company

Explanation:

In the given case, since it is mentioned that Gloria working for GlenMack now as a part of the signing bonus she received twenty shares from the stock of GlenMack now she is excited to contribute to the company and also wants to track the shares value on the new york stock exchange so here the Glenmust must be public company as the stock are listed on the stock exchange

So the same is to be relevant

If the Bank of Uchenna is not meeting its reserve requirement, what action can it take to meet the reserve requirement without calling in loans or selling property

Answers

Answer:

In this situation, the Bank of Uchenna has two options:

It can borrow extra funds to meet the reserve requirements in the interbank market. These funds would be borrowed at the federal funds rate if the bank is the U.S., or at the specific interbank rate applying to the area where the bank is located.

Or it can borrow those extra funds from the central monetary authority, in other words, the central bank (the fed in the case of the U.S.), since one of the main functions of a central bank is acting as lender of last result for financial institutions when these institutions are in need.

In this situation, Uchenna Bank has two options that can be done by the bank  without calling in loans or selling property :

Additional funds can be borrowed to meet the reserve    requirement requirements of the interbank market.

These funds are borrowed at the federal funds rate if the bank is based in the United States, or at a specific interbank rate applicable to the area in which the bank is located.

They can borrow these additional funds from  Central bank.

The central bank's main functions is to act as a lender to the central bank, you can borrow these additional funds from the central bank, the central bank (FRB in the United States).

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Explain how current economic indicators, such as inflation and unemployment, affect you personally. Explain how they may affect you as a manager

Answers

Answer is given below :

Explanation:

In an economy, inflation raises the price level of the basket of goods and services, thus reducing the demand for this affected good and services. This decrease will increase the listings in companies as sales of these goods and services will decrease. Production is the work of labor and capital, NRSE inflation is reduced and there is no need for more production at the company level to reduce the inventory sold, which allows firms to reduce costs in the form of labor cost and other variable costCompanies tend to sell their untold innovations due to declining sales and top-downs that reduce profit margin. Therefore managers are concerned about the profitability of the company and their bonus.

The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product

Answers

Answer:

The correct option is d. Increase by $19,500.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Pluto Incorporated provided the following information regarding its single product:

Direct materials used = $240,000

Direct labor incurred = $420,000

Variable manufacturing overhead = $160,000

Fixed manufacturing overhead = $100,000

Variable selling and administrative expenses = $60,000

Fixed selling and administrative expenses = $20,000

The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.

What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product? Note: The special order units would not require any variable selling and administrative expenses.

a. Decrease by $19,500

b. Decrease by $18,000

c. Increase by $18,000

d. Increase by $19,500

The explanation of the answer is now provided as follows:

We first calculate the expected total relevant cost of the special order as follows:

Direct materials cost per unit = Direct materials used / Annual units = $240,000 / 40,000 = $6.00

Direct labor cost per unit = Direct labor incurred / Annual units = $420,000 / 40,000 = $10.50

Variable manufacturing overhead per unit = Variable manufacturing overhead / Annual units = $160,000 / 40,000 = $4.00

Expected special order total relevant cost = (Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit) * Special order units = ($6.00 + $10.50 + $4.00) * 1,000 = $20.50 * 1,000 = $20,500

Expected revenue from the special order = Special order units * Special order selling price per unit = 1,000 * $40 = $40,000

Expected profit from the special order = Expected revenue from the special order - Expected special order total relevant cost = $40,000 - $20,500 = $19,500

Since the expected profit from the special order is $19,500, it therefore implies that accepting it would increase operating income by $19,500.

Therefore, the correct option is d. Increase by $19,500.

On August 1, 2021, Dambro Company acquired 1,200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Dambro's available-for-sale portfolio. The preferred entry to record the purchase of the bonds on

Answers

Answer:

Dr Debt Investments 1,164,000

Dr Interest Revenue 27,000

Cr Cash 1,191,000

Explanation:

Preparation of The preferred entry to record the purchase of the bonds

Based on the information given the preferred journal entry to record the purchase of the bonds will be :

Dr Debt Investments 1,164,000

(1,200 × $1,000 × .97)

Dr Interest Revenue 27,000

($1,200,000 × .09 × 3/12)

(04/31 – 08/01)

Cr Cash 1,191,000

($1,164,000 + $27,000)

While consumers can use ________ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.

Answers

Answer:

While consumers can use __shopping list__ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.

Explanation:

Customers usually prepare shopping lists to help them with their shopping activities.  A shopping list is a prepared list of items that a consumer uses to purchase goods and services.  The list improves the quality of the shopper's experience by making it easier, faster, and most importantly, smarter for the customer to pick out the required items or services.  It is also a means of controlling one's expenses.

Suppose you have $1,000 today and the risk-free rate of interest (rf) is 3.5%. The equivalent value in one year is closest to:

Answers

Answer:

$1,035

Explanation:

One dollar today is worth more than one dollar tomorrow. This is one of the basic pillars of finance, if not the most important one. It refers to time value of money. It is easier to understand if we work the other way around. How much would you be willing to pay if you were to receive $1,000 in one year if the risk free interest rate was 3.5%? The present value = $1,000 / 1.035 = $966.18. Inversely, today I have $1,000, so how much should it be worth in one year = $1,000 x 1.035 = $1,035.

Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.

Answers

Answer: This is a bad idea to set up a automatic minimum payment on the 18 of this month because it can be fraud risk, pricing disparities, minimum payment that is terrible. And in a cause to that, she has to pay extra, has to silly small fees, and picking the same day every month but will change due dates.

I will convince Caitlyn that this is a bad idea because the automatic minimum payment might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,

The automatic minimum payment in this context means the automatic (standard) repayment plan of the loan borrowed.

Majority of borrowers are placed on the standard repayment plan because it is automatic.

However, the standard repayment plan might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,

Read more about repayment plan

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An employer is concerned that her workplace has only a few African-Americans, Hispanics, and women in upper-level management and skilled labor jobs. Most unskilled-labor and clerical positions are held by women and minorities. The employer decides to institute a program that will increase the numbers of minorities and women in management and skilled-labor positions. Is this permissible

Answers

Answer:

This is not permissible

Explanation:

This is not permissible because giving them any forms of special treatments is going to be considered to be discriminatory to other people.

Discrimination on the basis of gender, age, color, religion is illegal in the united states and considered a criminal offense.

So even though management has good intentions they have to consider;

1. If these group of people have the required qualifications

2. If there are openings to accommodate these groups given that they are qualified.

3. Filling up every job with this group is going to be regarded as reverse discrimination.

Benjamin and Amelia Hopkins have been married since 2016. Benjamin is a U.S. citizen with a valid Social Security number. Amelia is a resident alien with an Individual Taxpayer Identification Number (ITIN). They elect to file Married Filing Jointly. Benjamin worked in 2020 and earned wages of $25,000. Amelia worked part-time and earned wages of $15,000. They have two children: Harper, who is 9 years old, and Evelyn, who is 12 years old. Both children were supported by their parents all year. Harper is a U.S. citizen and has a valid Social Security number. Evelyn is a resident alien and has an ITIN. Benjamin, Amelia, Harper, and Evelyn lived together in the U.S. all year 7. Which credit(s) can the Hopkins claim on their 2020 tax return

Answers

Answer:

Benjamin and Amelia Hopkins

The Hopkins can claim on their 2020 tax return child tax credit of $2,000 for Harper only.

Explanation:

a) Data and Calculations:

Benjamin and Amelia Hopkins = Married and Filing Jointly

Benjamin = a U.S. citizen with a valid Social Security number

Amelia = a resident alien with an Individual Taxpayer Identification Number (ITIN)

Benjamin's 2020 earned wages = $25,000

Amelia's 2020 earned wages = $15,000

Total gross income = $40,000

Dependent children = Harper, 9 and Evelyn, 12

Harper = a U.S. citizen with a valid Social Security number (SSN)

Evelyn = a resident alien and has an ITIN

b) Benjamin and Amelia cannot claim the child tax credit for Evelyn since she does not have the SSN even though she has an ITIN. They can claim for Harper, who has an SSN.  Harper is a  qualifying child and eligible for the child tax credit (CTC) of $2,000 per child.

37.Ralph is known throughout the company as being an old curmudgeon. But, he is without a doubt the most knowledgeable person in the fraud analysis department. The system project you are working on has to have an interface to various fraud applications. How should you prepare for an interview with Ralph

Answers

Answer:

Make Ralph understand WHY he needs to be interviewed. Make sure he understands the business value of the proposed system and why his input is vital. Send him questions in advance; talk to somebody who knows him so you can understand him more.

Explanation:

In the given scenario Ralph was described as an old curmudgeon. This means he is an ill tempered person that generally expresses no joy.

However he is without a doubt the most knowledgeable person in the fraud analysis department.

In preparation to interview him there is a need to make him understand why there needs to be an interview. When he sees the need for the interview he will be more engaged.

This can be done by explaining business value of the proposed system and why his input is vital.

Also questions can be sent to him ahead of the interview songs can better prepare

The city hall of Greensburg will be considered a hybrid building. List two of the building systems that will make up the sustainable portion of this hybrid building.

Answers

Answer:

The building systems that will make up the sustainable portion of the city hall of Greensburg as a hybrid building are:

1. Ground source heat pumps

2. Vegetated roof with rooftop photovoltaic (PV) system

Explanation:

The city hall of Greensburg relies on renewable energy sources for all the hybrid building's energy needs.  The architectural features of a hybrid building serve the city context and the architectural designs aimed at building sustainable communities. With its ground source heat pumps and vegetated PV roof, the city hall of Greensburg will indeed be considered a hybrid building in the real sense.  This project came after the 2007 massive tornado that destroyed the city, and as a result, city and community leaders have demonstrated their commitment to rebuilding the town as a model sustainable rural community.

Answer:

ground source heat pump

starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe

Answers

Starbucks reports net income for 2015 of $2,558.4 million. Its stockholders' equity is $5,716 million and $6,262 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer % b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. Why do you think a company like Starbucks repurchases its own stock? Companies repurchase their own stock if they feel it overvalued by the market. Companies repurchase their own stock if they feel it undervalued by the market.

A loan officer at Southwest Bank is considering a loan application from Preferred Pet Care, Inc. He is concerned about the company's ability to make payments on the loan. The loan officer is likely to be interested in Preferred Pet Care's statement of cash flows True

Answers

Answer:

True

Explanation:

This is true, the loan officer would be interested in Preferred Pet Care's statement of cash flow. This statement basically gives the loan officer all of the required information regarding how much cash is entering and leaving the Pet Care's business. This, therefore, gives the loan officer an idea of how much profit the Pet Care business is making and that will determine whether or not they will be able to pay back the loan if it was granted to them. The statement will need to prove that the profit being generated is enough to pay back the loan without making the Pet Care business go into debt.

Other Questions
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