Answer:
1/01
Dr Cash $200,000
Cr To notes payable $200,000
31/03
Dr Interest expense $5,000
Cr To cash $5,000
Dr Cash $1,000
Cr To interest expense $1,000
Dr Interest rate swap (asset) $6,472
Cr Holding gain—interest rate $6,472
Dr Holding loss $6,472
Cr notes payable $6,472
30/06
Dr Interest expense $5,000
Cr To cash $5,000
Dr Cash $2,000
Cr To interest expense $2,000
Dr Interest rate swap [asset] $4,922
Cr Holding gain—interest rate swap 4,922
Dr Holding loss—hedged note $4,922
Cr Note payable $4,922
Explanation:
Preparation of the journal entries through June 30, 2021, to record the issuance of the note, interest, and necessary adjustments for changes in fair value
1/01
Dr Cash $200,000
Cr To notes payable $200,000
(To record the issuance of the note)
31/03
Dr Interest expense $5,000
Cr To cash $5,000
(200,000 * 10% * 1/4)
( To record Interest)
Dr Cash $1,000
[5,000 -(8%* 1/4 * 200,000)]
Cr To interest expense $1,000
(To record the net Cash settlement)
Dr Interest rate swap (asset) $6,472
($6,472 – 0)
Cr Holding gain—interest rate $6,472
(To record change in net value of the derivative)
Dr Holding loss $6,472
Cr notes payable $6,472
($206,472- $200,000)
(To record change in net value of the note)
30/06
Dr Interest expense $5,000
($200,000 * 10% * 1/4)
Cr To cash $5,000
(To record Interest)
Dr Cash $2,000
[$5,000-(6% * 1/4 * $200,000)
Cr To interest expense $2,000
(To record the net Cash settlement)
Dr Interest rate swap [asset] ($11,394 – 6,472)$4,922
Cr Holding gain—interest rate swap 4,922
(To record change in fair value of the derivative)
Dr Holding loss—hedged note $4,922
Cr Note payable ($211,394 – 206,472) $4,922
(To record change in fair value of the note)
The journal entries through to record the issuance of the note, interest, and necessary adjustments for changes in fair value will be:
1st January:
Dr Cash $200,000 Cr Notes payable $200,00031st March
Dr Interest expense $5,000 Cr To cash $5,000Dr Cash $1,000 Cr Interest expense $1,000Dr Interest rate swap (asset) $6,472Cr Holding gain—interest rate $6,47230 June
Dr Interest expense $5,000 Cr To cash $5,000Dr Cash $2,000Cr interest expense $2,000Dr Interest rate swap [asset] $4,922Cr Holding gain—interest rate swap 4,922Dr Holding loss—hedged note $4,922Cr Note payable $4,922It should be noted that the interest expense on 31st March was calculated as:
= 200000 × 10% × 1/4
= 5000
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The foundation of good performance management is and choosing the best method(s) for measuring it. Use your knowledge of the balanced scorecard to answer the following question. The balanced scorecard supports four key components of organizational success. Three of the components are customer perceptions, financial performance, and internal business processes. What is the fourth
Answer:
4th is learning and growth
Explanation:
The balanced scorecard creates a balance in the company through the strategic goals of the organization and they represent four areas that have been identified by the Norton and Kaplan. They are financial perspective, internal business processes, learning and growth along customer precipitation. The fourth component of learning and growth signifies that the company needs to evolve constantly and needs to grow in order to survive.Jordan is considering three choices of spending the new year's eve. Option A is to dine outside at a luxury restaurant; option B is indoor skydiving, and option C is to play video games at a close-by club. If all three options cost the same, explicitly, what can be the economic reason for Jordan choosing option B
Answer: b. Jordan values option B more than options A and C.
Explanation:
All options cost the same explicitly which means that Jordan's choice was made based on implicit/ opportunity cost factors.
These undisclosed factors led to Jordan valuing option B more than the other options which is why it was picked even thought they all cost the same. Had any other option being more valuable than B, it would have been picked but since B was picked, B was the most valuable.
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:
Account Financial Major Possible Account
Statement Classificaton Number
Accounts Payable
Accounts Receivable
Accumulated Depreciation—Office Equipment
Accumulated Depreciation—Store Equipment
Advertising Expense
Cash
Common Stock
Cost of Merchandise Sold
Delivery Expense
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment Dividends
Income Summary
Insurance Expense
Interest Expense
Land
Merchandise Inventory
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Notes Payable
Office Equipment
Office Salaries Expense
Office Supplies
Office Supplies Expense
Prepaid Insurance
Rent Expense
Retained Earnings
Salaries Payable
Sales
Sales Salaries Expense
Store Equipment
Store Supplies
Store Supplies Expense
Assign account numbers and specify whether each account would appear on the balance sheet or income statement order, as illustrated below. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, for example); the second digit is to indicate the subclassification (11 for current assets, for example); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, etc.).
Answer:
Monet Paints Co.
Financial Major Possible
Statement Classification Account No.
Accounts Payable Balance Sheet Liabilities 211
Accounts Receivable Balance Sheet Assets 112
Accumulated Depreciation
—Office Equipment Balance Sheet Assets (contra) 123
Accumulated Depreciation
—Store Equipment Balance Sheet Assets (contra)
Advertising Expense Income statement Expenses 331
Cash Balance Sheet Assets 110
Common Stock Balance Sheet Equity 401
Cost of Merchandise Sold Income statement Expenses 330
Delivery Expense Income statement Expenses 332
Depreciation Expense Income statement Expenses 333
—Office Equipment
Depreciation Expense Income statement Expenses 334
—Store Equipment Dividends
Income Summary Income statement
Insurance Expense Income statement Expenses 335
Interest Expense Income statement Expenses 336
Land Balance Sheet Assets 121
Merchandise Inventory Balance Sheet Assets 114
Miscellaneous Admin Expense Income statement Expenses 337
Miscellaneous Selling Expense Income statement Expenses 338
Notes Payable Balance Sheet Liabilities 213
Office Equipment Balance Sheet Assets 122
Office Salaries Expense Income statement Expenses 339
Office Supplies Balance Sheet Assets 113
Office Supplies Expense Income statement Expenses 340
Prepaid Insurance Balance Sheet Assets 115
Rent Expense Income statement Expenses 341
Retained Earnings Balance Sheet Equity 403
Salaries Payable Balance Sheet Liabilities 212
Sales Income Statement Revenue 501
Sales Salaries Expense Income Statement Expenses 342
Store Equipment Balance Sheet Assets 123
Store Supplies Balance Sheet Assets 116
Store Supplies Expense Income Statement Expenses 343
Explanation:
Chart of accounts lists of all accounts of Monet Paints Company. The list provides a bird's eye view of every area of the business that generates either expenditure or revenue. The account types which are usually maintained by most companies include Revenue, Expenses, Assets, Liabilities, and Equity. Revenue and expenses are summarized on the income statement, while assets, liabilities, and equity are listed on the balance sheet.
Which of the following statements is false? A) Price determination is the key element in any market system. B) Input prices influence a firm's costs of production. C) Output prices influence a firm's revenues. D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.
Answer:
option D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.
Explanation:
A price system is simply defined as a part of any economic system. It uses prices usually expressed in monetary form for goods and services valuation and distribution and also the factors of production.
A Pricing Manager helps to determine pricing schemes for firms products and services. The scope of work entailss co-ordination with production departments on cost of making and working with staff in marketing especially on appropriate campaigns and promotions and also they assist with pricing bargaining of customers intent.
Price Determination is getting or deriving the cost of goods sold and services offered/ rendered in the free market. The forces of demand and supply always determine the prices of goods and services in the market system.
Diversity increases the importance of
Answer:
Diversity increases an organization's capacity to meet the needs of a diverse society.
A diverse workplace reflects the population it serves, making it more effective.
Increasing diversity in the organization leads to greater creativity and gives better results.
McElroy, Inc., produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow:
Direct materials $187,500
Conversion costs 163,800
$351,300
The assembly department has no beginning Work-in-Process Inventory. During the month, it started 30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All parts had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
Required:
a. Compute the equivalent units and cost per equivalent unit for March in the assembly department.
b. Compute the costs of units completed and transferred to the testing department.
c. Compute the costs of the ending work-in-process.
Answer:
Part a.
Equivalent units : Materials = 30,000 units ,Conversion Costs = 28,000 units
Cost per equivalent unit : Materials = $6.25 Conversion Costs = $5.85
Part b.
$314,600
Part c.
$36,700
Explanation:
Step 1 : Equivalent units
Materials
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 100%) 4,000
Equivalent units with respect to Materials 30,000
Conversion Costs
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 50%) 2,000
Equivalent units with respect to Materials 28,000
Step 2 : Cost per equivalent unit
Materials = $187,500 ÷ 30,000 = $6.25
Conversion Costs = $163,800 ÷ 28,000 = $5.85
Total unit cost = $6.25 + $5.85 = $12.10
Step 3 : Costs of units completed and transferred to the testing department
Costs of units completed and transferred = 26,000 x $12.10 = $314,600
Step 4 : Costs of the ending work-in-process
Costs of the ending work-in-process = 4,000 x $6.25 + 2,000 x $5.85 = $36,700
Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 60,700 tons from the Casting Department. During July, the Rolling Department completed 74,500 tons, including 19,300 tons of work in process on July 1. The ending work in process inventory on July 31 was 5,500 tons.
Required:
How many tons were started and completed during July?
Answer:
1092749
Explanation:
the answer came by adding all the value of the equation
Dr. Yuan opens a lab. The lab has an initial cost of $100,000. Expected net cash flow is $24,000 in the first year, growing by 15% per year. Net cash flow is revenue less expenses. Assume the lab has a 6 yr life and there is no scrap value for the lab.
Later that same year, Dr. Bhat opens a similar lab in the strip mall less than two miles away from Dr. Yuan. Dr. Yuan estimates her net cash flow in the first year will be considerably less than her initial estimate. She estimates it will be $16,000. All else equal, what happens to the NPV of Dr. Yuan’s lab?
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
c) The IRR decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
d) The IRR and the NPV decrease. Dr. Yuan can still expect a positive return on her investment.
Assume instead that Dr. Yuan forms a partnership with Dr. Bhat. They agree to share the $100,000 cost equally and to share the cash flow equally. Because of efficiency gains from longer operating hours, they expect the net cash flow to be $32,000 per year. Assume they expect net cash flow to grow at 15% per year. What is the consequence of the partnership to Dr. Yuan? Please compare the results to the original scenario described in question 13 (Dr. Yan opening the only lab in the area).
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The NPV decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
c) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
d) The IRR and the NPV increase. Dr. Yuan can still expect a positive return on her investment
Answer:
d
d
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
NPV and IRR can be calculated with a financial calculator
Dr Yaun's inital strip mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $24,000
Cash flow in year 2 = $24,000 x 1.15
Cash flow in year 3 = $24,000 x 1.15^2
Cash flow in year 4 = $24,000 x 1.15^3
Cash flow in year 5 = $24,000 x 1.15^4
Cash flow in year 6 = $24,000 x 1.15^5
I = 10 %
NPV = $46,718,00
IRR = 22.85%
Similar Strip Mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $16,000
Cash flow in year 2 = $16,000 x 1.15
Cash flow in year 3 = $16,000 x 1.15^2
Cash flow in year 4 = $16,000 x 1.15^3
Cash flow in year 5 = $16,000 x 1.15^4
Cash flow in year 6 = $16,000 x 1.15^5
I = 10 %
NPV = $2188
IRR = 9.33%
It can be seen that both the IRR and NPV decreases but still remain positive. So, Dr. Yuan can still expect a positive return on her investment.
The partnership
Cash flow in year 0 = $100,000/ 2 =$-50,000
Cash flow in year 1 = $32,000 / 2
Cash flow in year 2 = ($32,000 x 1.15)/2
Cash flow in year 3 = ($32,000 x 1.15^2)/2
Cash flow in year 4 = ($32,000 x 1.15^3)/2
Cash flow in year 5 = ($32,000 x 1.15^4)/2
Cash flow in year 6 = ($32,000 x 1.15^5)/2
I = 10 %
NPV = $47,812
IRR = 34.49%
It can be seen that the NPV and IRR are both higher when compared with the first scenario
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
Perhaps you think it will be easy to make responsible decisions regarding auto loans in your future . But , decision making can be tricky when you're considering your dream car. Follow the directions on the sheet to complete the activity
Answer:
From this worksheet, I have noticed that following directions to receive your dream car is tricky as well as fun
;)
In year 1, Kelley estimates bad debt expense of $10,000 for financial reporting purposes. The amount of bad debts deductible on the tax return was $2,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. What is the balance in the deferred tax asset account at the end of year 1
Answer: $3,200
Explanation:
The following information can be deduced from the question:
Bad debt expense = $10,000
Bad debts deductible on tax return = $2000
Income tax rate = 40%
Therefore, the balance in the deferred tax asset account at the end of year 1 will be calculated thus:
= 40% x ($10,000 - $2,000)
= 0.4 × $8000
= $3,200
Since a cell phone is a private good, if Neha chooses to spend $300 on a cell phone, Neha would get $300 of benefit from the cell phone and Teresa wouldn't receive any benefit from Neha's choice. If Neha still spends $300 on a cell phone and Teresa chooses to contribute $300 to the public park, Neha would still receive the $270 of benefit from Teresa's generosity. In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of $300 $270
Answer:
In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of:
$570.
Explanation:
Neha has, in this situation, maximized his benefits to the detriment of the public good. This is an illustration of the tragedy of the commons. The tragedy of the common is an economic problem that explains the loss that the society incurs when some persons like Neha neglect to contribute to the common good because they are solely concentrated on pursuing their individual goals for personal gains.
Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $740,000 one month prior to the start of its current fiscal year and paid back the $740,000 plus interest two months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year
Answer:
Last Fiscal Year:
Interest Expense = $5550
Current Fiscal Year:
Interest Expense = $11100
Explanation:
According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.
This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,
Last Fiscal Year = 740000 * 9% * 1/12 => $5550
Current Fiscal Year = 740000 * 9% * 2/12 => $11100
what are the proffesional values
Answer:
The values include “service, access equality, respect, confidentiality and privacy, protection of intellectual property rights, literacy, technical literacy, stewardship, and professional and social obligations”
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $11,000 of cash and land with an FMV of $56,000. Her basis in the land is $21,000. Andrew contributes equipment with an FMV of $13,000 and a building with an FMV of $34,000. His basis in the equipment is $9,000, and his basis in the building is $21,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer: $0
Explanation:
There is no gain to be recognized when assets are being transferred between living individuals or entities due to this falling under the Carryover basis.
This carryover basis of the asset will in general, be the same basis as the cost or basis of the asset.
There will therefore be a $0 gain to the SA General Partnership. Gains will be calculated if the partnership wants to dispose of the assets.
You sold a car and accepted a note with the following cash flow stream as your payment. The effective price you received for the car assuming an interest rate of 6.0% is closest to:
Answer:
The right response is "$5986.815".
Explanation:
The given query is incomplete. Please find attachment of the complete query.
The actual price users earn mostly corresponds to the current value of the amount. Throughout cash flows, users get 7000 $, however because of the rate of the interest some must be lowered.
So,
⇒ [tex]PV= (\frac{1000}{1.06} ) + (\frac{2000}{1.06^2}) + (\frac{2000}{1.06^3}) + (\frac{2000}{1.06^4} )[/tex]
⇒ [tex]=943.39+1,779.99+1,679.23+1,584.18[/tex]
⇒ [tex]=5986.815[/tex] ($)
A bank receives a deposit for $50,000. If the bank has a 10 percent reserve
requirement, approximately how much money could this initial deposit
eventually add to the economy?
Answer:
$500,000
Explanation:
ap ex
A bank having a 10 percent reserve requirement will add $500,000 to the economy on receiving $50,000 as a initial deposit.
Reserve requirements are the sums of money that a bank must have in reserve in order to cover liabilities in the event of an unexpected withdrawal. Reserve requirements are a technique used by the central bank to influence interest rates by increasing or decreasing the money supply in the economy.
According to the question, reserve requirement is 10%, and the initial deposit is $50,000.
Therefore, $50,000+$50,000×10/100 will result in the money that could be added to the economy, which is $500,000.
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Water and air are examples of _____ resources while people are considered to be _____ resources
O natural; human
physical: mental
mental; natural
capital; human
Answer:
the answer is natural;human
During June, Lionel Magazine sold for cash an advertising space for $1200 total to be run in the July through December issues. On that date, the Lionel Magazine Company properly recognized Unearned Revenue. The adjusting entry to record on July 31 for the first month of advertising space includes:
Answer:
Lionel Magazine
The Adjusting Journal Entry to record on July 31 for the first month of the advertising space sold includes a:
Debit to the Unearned Revenue account with $200
and
Credit to Earned Advertising Revenue account with $200
This will reduce the Unearned Revenue account by $200 being the amount for July (one month) and at the same time, increase the Earned Advertising Revenue account by $200.
Explanation:
a) Data and Analysis:
Unearned Revenue $200 Earned Revenue $200 ($1,200/6)
Answer:
Lionel is a resident at a personal care home. A direct care staff person threatened to steal Lionel’s collection of car magazines if he did not socialize with other residents during recreational activities. The threat of stealing Lionel’s magazines is an example of ____________.
Explanation:
Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 40% complete.Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below:MAYER COMPANY Molding Department Production Cost Report For the Month Ended May 31, 2013 Equivalent Units: Quantities Physical Units Materials Conversion costsUnits to be accounted for Work in process, May 1 8,000 Started into Production 27,000 Total units 35,000 Units accounted for Transferred out 30,000 Work in process, May 31 5,000 Total units 35,000 Costs Unit costs Materials Conversion Costs TotalCosts in May $140,000 $160,000 $300,000Equivalent units Unit costs Costs to be accounted for Work in process, May 1 $60,000Started into production $240,000Total costs $300,000Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, May 31 Materials Conversion costs Total cost $300,000
Answer:
Mayer Company
MAYER COMPANY
Molding Department
Production Cost Report
For the Month Ended May 31, 2013
Units to be accounted for
Work in process, May 1 8,000
Started into Production 27,000
Total units 35,000
Equivalent Units:
Units accounted for Units Materials Conversion
Transferred out 30,000 30,000 30,000
Work in process, May 31 5,000 5,000 2,000
Total equivalent units 35,000 35,000 32,000
Costs Unit costs Materials Conversion Costs Total
Costs in May $140,000 $160,000 $300,000
Equivalent units 35,000 32,000
Unit costs $4.00 $5
Costs to be accounted for
Work in process, May 1 $60,000
Started into production $240,000
Total costs $300,000
Cost Reconciliation Schedule Materials Conversion Total cost
Costs accounted for
Transferred out $120,000 $150,000 $270,000
Work in process, May 31 20,000 10,000 30,000
Total costs accounted for $140,000 $160,000 $300,000
Explanation:
a) Data and Calculations:
Beginning WIP 75% complete to conversion
Ending WIP 40% complete to conversion
Work in process, May 31 5,000
Materials = 5,000 (100% * 5,000)
Conversion 2,000 (40% * 5,000)
Assume the following information for Windsor Corp. Accounts receivable (beginning balance) $140,000 Allowance for doubtful accounts (beginning balance) 11,490 Net credit sales 938,000 Collections 915,000 Write-offs of accounts receivable 5,900 Collections of accounts previously written off 2,000 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Windsor Corp.
Journal Entries:
Debit Accounts Receivable $938,000
Credit Sales Revenue $938,000
To record sales on account.
Debit Cash $915,000
Credit Accounts Receivable $915,000
To record cash collected from customers.
Debit Allowance for Doubtful Accounts $5,900
Credit Accounts Receivable $5,900
To record uncollectible accounts written off.
Debit Accounts Receivable $2,000
Credit Allowance for Doubtful Accounts $2,000
To reinstate previously written off accounts.
Debit Bad Debts Expenses $3,407
Credit Allowance for Doubtful Accounts $3,407
To record bad debts expense and bring the Allowance for doubtful accounts to a balance of $10,997, being 7% of the accounts receivable ending balance.
Explanation:
a) Data and Analysis:
T-accounts:
Accounts receivable
Accounts Titles Debit Credit
Beginning balance $140,000
Sales revenue 938,000
Cash $915,000
Allowance for doubtful a/cs 5,900
Allowance for
doubtful accounts 2,000
Cash 2,000
Balance 157,100
Totals $1,080,000 $1,080,000
Allowance for Doubtful Accounts:
Accounts Titles Debit Credit
Beginning balance $11,490
Accounts receivable 5,900
Accounts receivable 2,000
Bad Debts Expense 3,407
Balance 10,997
Totals $16,897 $16,897
Allowance = $10,997 (7% of $157,100)
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $2,000 per year using the gang punch, but raw material costs would decrease $12,000 per year. MARR is 5 %/year.
A. What is the discounted payback period for this investment? Image for Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more effi ______years
B. If the maximum attractive DPBP is 3 years, what is the decision rule for judging the worth of this investment?
C. Should Bailey buy the gang punch based on DPBP?
Answer:
14.2 years
Do not invest
yes
Explanation:
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Cash flow each year = $12,000 - $2,000 = $10,000
Discounted cash flow in year 1 = 10,000 / 1.05 = 9.523.81
Discounted cash flow in year 2 = 10,000 / 1.05^2 = 9,070.29
Discounted cash flow in year 3 = 10,000 / 1.05^3 = 8,638.38
Discounted cash flow in year 4 = 10,000 / 1.05^4 = 8,227.02
Discounted cash flow in year 5 = 10,000 / 1.05^5 = 7,835.26
Discounted cash flow in year 6 = 10,000 / 1.05^6 = 7,462.15
Discounted cash flow in year 7 = 10,000 / 1.05^7 = 7,106.81
Discounted cash flow in year 8 = 10,000 / 1.05^8 = 6,768.39
Discounted cash flow in year 9 = 10,000 / 1.05^9 = 6,446.09
Discounted cash flow in year 10 = 10,000 / 1.05^10 = 6,139.13
Discounted cash flow in year 11 = 10,000 / 1.05^11 = 5846.79
Discounted cash flow in year 12 = 10,000 / 1.05^12 = 5568.37
Discounted cash flow in year 13 = 10,000 / 1.05^13 = 5303.21
Discounted cash flow in year 14 = 10,000 / 1.05^14 =5050.68
Discounted cash flow in year 15 = 10,000 / 1.05^15 = 4810.17
Discounted payback period = [-100,000 + ( discounted cash flows from year 1 to 14) ] + 1013.62/4810.17 = 14.2 years
The cash flows would turn positive between year 14 and 15
If the DPBP is 3 years, the project should not be accepted because the payback period is 14.2 years which is greater than 3 years
Bailey buy the gang punch based on DPBP because the amount invested is recouped with the useful life of the machine
1. Supplies on hand at October 31 total $540.
2. Expired insurance for the month is $125.
3. Depreciation for the month is $150.
4. As of October 31, services worth $920 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $330.
6. Interest expense accrued at October 31 is $80.
7. Accrued salaries at October 31 are $1,500.
Required:
Prepare the adjusting entries for the items above.
Answer:
Adjusting entries
General Journal
Item 1
Debit : Statement of Financial Position $540
Credit : Supplies $540
Item 2
Debit : Insurance Expense $125
Credit : Prepaid Insurance $125
Item 3
Debit : Depreciation $150
Credit : Accumulated Depreciation $150
Item 4
Debit : Unearned Service Revenue $920
Credit : Service Revenue Earned $920
Item 5
Debit : Trade Receivable $330
Credit : Service Revenue $330
Item 6
Debit : Interest Expense $80
Credit : Note Payable $80
Item 7
Debit : Salaries Expenses $1,500
Credit : Salaries Payable $1,500
Explanation:
The adjusting entries for the items have been prepared above.
In 2020, the CEO of Crimson, Inc., entertains 9 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $11,300 per event and seats 11 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $90 to $180.) Refreshments served during the event cost $820 (and were separately itemized on the bill Crimson received).
Required:
How much of these costs may Crimson deduct?
Answer:
The amount of these costs Crimson may deduct is $1,400.
Explanation:
The amount of these costs Crimson may deduct can be calculated as follows:
Costs of refreshments served during the event = $820
Higher of the cost of nonluxury box seat at Memorial = $180
Number of people the box can seat = 11
Costs of the seat = Higher of the cost of nonluxury box seat at Memorial * Number of people the box can seat = $180 * 11 = $1,980
Total cost of entertainment = Costs of refreshments served during the event + Costs of the seat = $820 + $1,980 = $2,800
50% of the total cost of entertainment = $2,800 * 50% = $1,400
Allowable deduction = Total cost of entertainment - Elimination of 50% of the total cost of entertainment = $2,800 - $1,400 = $1,400
Therefore, the amount of these costs Crimson may deduct is $1,400.
A medical center implemented changes in its approach in handling labor and delivery by offering birth rooms that allowed the parents to stay in the same room throughout the entire process. To determine the effectiveness of the goal to increase client satisfaction and decrease postpartum complications, which internal sources should the team prioritize for data collection
Answer:
Patient surveys
Electronic health records
Explanation:
In research, Data collection is a necessary step to take. The main reason for data collection is to carry out study purpose, answer research questions, test hypothesis(es), provide evidence about the area of study anf to test the validity and reliability of study instruments used.
For effectiveness to be known, it is important to know terms closely.
Patient satisfaction can be gathered through the patient survey because patient can give you firsthand information. Postpartum complications can be know by the electronic health records. By assessing the records, you will find more information.
a disgruntled customer will tell how many people
Answer:
A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – White House Office of Consumer Affairs. Happy customers who get their issue resolved tell about 4-6 people about their experience.
Explanation:
correct me if I am wrong
It is the least expensive automobile insurance coverage.
A) Liability
B) Collision
C) Comprehensive
D) Full
Answer:
C
Explanation:
As far as coverages goes, Comprehensive is the least expensive. However, liability is the basic coverage required on most insurance policies. Many states require a minimum insurance coverage of liability.
four importance of Engineering
Explanation:
Engineering is a profession in which scientific knowledge and mathematics is used and experimented with to develop ways that benefit mankind, making it extremely important to society for several reasons.
Engineering encompasses a whole range of industries that could include on-site, practical construction work as well as evaluating safety systems from an office
Pharma Company produces various medicines in capsule form. At the beginning of the month of March, it had 5,000 units that were 40% complete. These were assigned costs of $150,000. During the month, it completed 55,000 units and has 20,000 units that are 50% completed. It had production costs during the month of $600,000. Complete all five steps of a production report using the weighted average method. Complete all five steps of a production report using the FIFO method.
Answer:
Pharma Company
1. Weighted Average method:
Weighted Average Method:
Equivalent units of production:
Started and completed this period 55,000
Ending WIP 10,000
Total equivalent unit produced = 65,000
Total cost of production:
Beginning WIP = $150,000
Current period 600,000
Total cost = $750,000
Cost per equivalent unit = $11.54 ($750,000/65,000)
Cost assigned to:
Units completed = 55,000 * $11.5385 = $634,617
Ending WIP = 10,000 * $11.5385 = 115,385
Total cost of production = $750,002
Cost Reconciliation:
Beginning WIP = $150,000
Completed units 600,000
Total costs = $750,000
Ending WIP = 115,385
Cost assigned to
production 634,617
2. FIFO method:
Explanation:
a) Data and Calculations:
Units Completion % Cost
Beginning WIP = 5,000 2,000 (40%) $150,000
Current completion (WIP) 3,000 (60%)
Completed 55,000 55,000 (100%) 600,000
Ending WIP 20,000 10,000 (50%)
Weighted Average Method:
Equivalent units of production:
Beginning WIP 3,000
Started and completed this period 55,000
Ending WIP 10,000
Total equivalent unit produced = 68,000
Total cost of production:
Current period 600,000
Cost per equivalent unit = $8.82 ($600,000/68,000)
Cost assigned to:
Beginning WIP =
Units completed
Beginning WIP = $150,000
= 3,000 * $8.82 = $26,460
= 55,000 * $8.82 = 485,100
Ending WIP:
= 10,000 * $8.82 = 88,200
Total cost of production = $749,760
Cost Reconciliation:
Beginning WIP (40%) = $150,000
WIP completed (60%) 26,460
Completed units 485,100
Ending WIP = 88,200
Total cost = $749,760
Seven years ago the ATT issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium, with 5 years of call protection. Today ATT called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Explain why the investor should or should not be happy that ATT called them.
Answer:
1+0.075 x 1000
= 1075
If bonds are called back there would be 75 dollars more compared to fv
We calculate the yield to maturity using excel.
We use this formula to calculate this
YTc is = RATE(7, 11%x1000-1000x1000)x1.075
= 11.749%
Now this investor should be happy they were called by the ATT because the return they got back is more than what they were hoping to get at the time of purchase. YTc is higher and there is 75 dollars more fv
The labor force (sum of employed and unemployed workers) is fixed at 120 million. Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job. Assume that in January the number of workers without a job (unemployed) are 10 million. How many workers will be unemployed in March, that is, two months later
Answer:
Total number of unemployed (March)= 12,256,000
Explanation:
Giving the following information:
Total labor force= 120 million
Unemployed people (January)= 10 million
Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job.
First, we will calculate the unemployed and employed people for February:
New Unemployed= 110,000,000*0.02= 2,200,000
New employed= 10,000,000*0.1= 1,000,000
Total number of unemployed= 10,000,000 + 2,200,000 - 1,000,000= 11,200,000
Total number of employed= 110,000,000 + 1,000,000 - 2,200,000= 108,800,000
Now, for March:
New Unemployed= 108,800,000*0.02= 2,176,000
New employed= 11,200,000*0.1= 1,120,000
Total number of unemployed= 11,200,000 + 2,176,000 - 1,120,000= 12,256,000
Total number of employed= 108,800,000 + 1,120,000 - 2,176,000= 107,744,000