On January 1, 2021, Wetick Optometrists leased diagnostic equipment from Southern Corp., which had purchased the equipment at a cost of $2,251,671. The lease agreement specifies six annual payments of $470,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2025. The six-year lease term ending December 31, 2026 (a year after the final payment), is equal to the estimated useful life of the equipment. The contract specifies that lease payments for each year will increase on the basis of the increase in the Consumer Price Index for the year just ended. Thus, the first payment will be $470,000, and the second and subsequent payments might be different. The CPI at the beginning of the lease is 120. Southern routinely acquires diagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate journal entries for Wetick to record the lease at its beginning. 2. Assuming the CPI is 126 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2021.

Answers

Answer 1

Answer:

Equipment 2,251,669.78 DEBIT

     Cash                  470,000.00 CREDIT

     Lease Liability  1,781,669.78 CREDIT

--to record the beginning of the lease--

Lease liability                      291,833.02 debit

interest expense                178,166.98   debit

loss on monetary position  23,500       debit

       Cash                                   493,500    credit

Explanation:

We solve for the present value of the six payment of 470,000 to know the lease liability

Present Value of Annuity  

[tex]C \times \displaystyle \frac{1-(1+r)^{-time}}{rate} (1+rate)= PV\\[/tex]  

C 470,000

time 6

rate 0.1

[tex]470000 \times \displaystyle \frac{1-(1+0.1)^{-6}}{0.1} (1 + 0.10) = PV\\[/tex]  

PV $2,251,669.7816  

We subtract the first payment of 470,000

Lease liability account: 1,781,669.78

Second payment journal entry:

interest calculations:

1,781,669.78 x 0.1 = 178,166.98

principal payment:

470,000 - 178,166.98 = 291,833.02

inflation' adjustment:

470,000 x 126/120 = 493,500

The difference will be a loss on monetary position by the difference:

493,500 - 470,000 = 23,500


Related Questions

A fierce debate exists between policymakers as to whether or not they should use monetary and fiscal policies to stabilize small fluctuations in the economy. Please determine which of the given statements could be used to support using policy to stabilize the economy and which might be used against such choices. In favor of using policy Not in favor of using policy

Answers

Answer:

Hello the options related to your question is missing attached below are the missing options

answer :

In favor of using policy

Fiscal policy can be used to cut spending and rein in excessive aggregate demand. This controls inflationPolicy makers can expand the money supply in order to increase aggregate demand

Not in favor of using policy

Fiscal policy, in particular is subject to long delays in the political process, which can affect its usefulnessMonetary and fiscal policy only take effect after a long lagBecause of the imprecision of economic forecasting, policy makers may end up causing more harm to the economy than good

Explanation:

Fiscal policy is simply the use of government, taxing and spending policy to influence the economic conditions of the country positively over time. and it can come in either ways. i.e. increase in government spending or lowering taxes by the government

In favor of using policy

Fiscal policy can be used to cut spending and rein in excessive aggregate demand. This controls inflationPolicy makers can expand the money supply in order to increase aggregate demand

Not in favor of using policy

Fiscal policy, in particular is subject to long delays in the political process, which can affect its usefulnessMonetary and fiscal policy only take effect after a long lagBecause of the imprecision of economic forecasting, policy makers may end up causing more harm to the economy than good

BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department had 3,080 units in inventory, 70% complete as to materials. During the month, the roasting department started 21,600 units. At the end of the month, the roasting department had 4,800 units in ending inventory, 80% complete as to materials. Cost information for the roasting department for the month follows:
Beginning work in process inventory (direct materials) $ 4,870
Direct materials added during the month 45,900
Using the FIFO method, assign direct materials costs to the roasting department’s output—specifically, the units transferred out to the mixing department and the units that remain in process in the roasting department at month-end. (Do not round intermediate calculations.)

Answers

Answer:

Direct material cost of units transferred out = $42,596

Cost of ending work in process inventory = $8,174

Explanation:

This can be done using the following 3 steps:

Step 1: Calculation of equivalent unit of production (EUP) of materials

Note: See the attached excel file for the calculation of equivalent unit of production (EUP) of materials.

From the attached excel file, we have:

Physical unit = 24,680

EUP-material = 21,564

Step 2: Calculation of cost per EUP of materials

Cost per EUP of materials = Direct materials added during the month / EUP-Materials = $49,900 / 21,564 = $2.13

Step 3: Assignment of direct materials cost to the units transferred out amd the ending WIP

Cost of materials added to complete the beginning WIP = 924 * $2.13 = $1,967

Cost of units started and transferred out = 16,800 * $2.13 = $35,760

Direct material cost of units transferred out = Direct material cost of beginning WIP + Cost of materials added to complete the beginning WIP + Cost of units started and transferred out = $4,870 + $1,967 + $35,760 = $42,596

Cost of ending work in process inventory = 3,840 * $2.13 = $8,174

Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Income retained in business $540 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.

Answers

Answer:

Swifty Company

Explanation:

a) Data and Calculations:

SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019                             2020            2019      

Cash                                                   $1,770             $1,170

Receivables                                         1,780              1,300

Inventory                                             1,570              1,880

Plant assets                                        1,870               1,710

Accumulated depreciation               (1,210 )            (1,190 )

Long-term investments

 (held-to-maturity)                            1,290               1,430

Total assets                                    $7,070           $6,300

Accounts payable                           $1,200             $900

Accrued liabilities                               200                250

Bonds payable                                 1,430              1,580

Common stock                                1,860              1,730

Retained earnings                          2,380              1,840

Total liabilities and equity            $7,070           $6,300

SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue                                   $6,820

Cost of goods sold                             4,640

Gross margin                                       2,180

Selling and administrative expenses    910

Income from operations                     1,270

Other revenues and gains

Gain on sale of investments                  80

Income before tax                              1,350

Income tax expense                            550

Net income                                          800

Cash dividends                                   260

Income retained in business           $540

Additional Information:

a) Issue of Common stock for plant assets = $80

Adjustments for cash transactions:

Receipts:

Customers = $1,300 + $6,820 - $1,780 = $6,340

Sale of investment = $1,430 - $1,290 = $140

Common stock = $1,860 - $1,730 - $80 = $50

Payments:

Suppliers = $900 + $4,330 - $1,200 = $4,030

Expenses = $250 + $910 - $200 = $960

Bonds = $1,580 - $1,430 = $150

Plant = $1,870 - $80 - $1,710 = $80

Purchases = $1,570 + 4,640 - $1,880 = $4,330

Statement of Cash Flows for the year ended December 31, 2020:

Cash flows from operating activities:

Receipt from customers                   $6,340

Payment to suppliers                         (4,030)

Payment for services                           (960)

Income tax expense                            (550)

Net cash from operating activities      800

Cash flows from investing activities:

Receipt from sale of investments      $140

Purchase of plant assets                      (80)

Net cash from investing activities        60

Cash flows from financing activities:

Issue of Common stock                     $50

Payment to bondholders                   (150)

Payment to stockholders                  (260)

Net cash from financing activities    (360)

Net cash flows                                 $500

The management of City Front Inc. must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. What is the incremental income from reworking and selling the units

Answers

Answer:

If the units are reworked, income will increase by $40,700.

Explanation:

Giving the following information:

Number of units= 11,000

Sell as-is:

Selling price= $2.5

Rework:

Selling price= $9.7

Increase in costs= $3.5

We will take into account the incremental costs, the first production costs are equal to both options.

Sell as-is:

Effect on income= 11,000*2.5= $27,500 increase

Rework:

Effect on income= 11,000*(9.7 - 3.5)

Effect on income= $68,200 increase

If the units are reworked, income will increase by $40,700.

"When auto manufacturer BMW purchased the Rollsminus Royce brand​ name, BMW had to hire and train a new staff of assembly workers. The new workers were paid​ $27 per​ hour, worked a total of​ 7,200 hours, and produced​ 2,100 cars. BMW budgeted for a standard labor rate of​ $32 per hour and 3.50 direct labor hours per car. What is the direct labor rate variance for the Rollsminus Royce ​division?"

Answers

Answer:

See now

Explanation:

With regards to the above, direct labor rate variance is computed as;

Direct labor rate variance

= Actual cost - Standard cost of actual hours

= [(7,200hours × $27) - (7,200 hours × $32)]

= $194,400 - $230,400

= $36,000 favorable

Therefore , direct labor rate variance i s $36,000 favorable

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $18,600,000
Net operating income $5,200,000
Average operating assets $35,200,000
Required:
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company.
3. Compute the return on investment (ROI) for Alyeska Services Company.

Answers

Answer and Explanation:

The computation is shown below:

a. The margin is

= Net operating income ÷ Sales

= $5,200,000 ÷ $18,600,000

= 27.96%

b. The turnover is

= Sales ÷ average operating assets

= $18,600,000 ÷ $35,200,000

= 0.53 times

c. The return on investment is

= Net operating income ÷ average operating assets

= $5,200,000 ÷ $35,200,000

=  14.77%

Hence, the above formulas to be applied

explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points exclude executed non-executive ​

Answers

Answer:

directors are the trustees of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. Directors are liable as trustees for breach of trust, if they misapplied the funds or committed breach of byelaws of the company.

An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. They primarily objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.

The financial statements of Friendly Fashions include the following selected data (in millions): ($ in millions except share data) 2021 2020 Sales $ 8,143 $ 9,234 Net income $ 159 $ 628 Stockholders' equity $ 2,000 $ 2,240 Average Shares outstanding (in millions) 720 - Dividends per share $ 0.30 - Stock price $ 9.90 - Required: Calculate the following ratios for Friendly Fashions in 2021.

Answers

Answer:

A. Return on equity 7.5%

B. Dividend yield 3.03%

C. Earnings per share $0.22

D. Price-earnings ratio 45

Explanation:

A. Calculation to determine the Return on equity

First step is to calculate the Average stockholders equity using this formula

Average stockholders equity = ( Beginning stockholders equity + Ending stockholders equity)/2

Let plug in the formula

Average stockholders equity= (2,240+2000)/2

Average stockholders equity= $2,120 millions

Now let calculate the Return on equity using this formula

Return on equity=Net Income / Average stockholders equity

Let plug in the formula

Return on equity=159 / 2,120

Return on equity= 7.5%

B. Calculation to determine the Dividend yield

Using this formula

Dividend yield=Dividend per share / Stock price

Let plug in the formula

Dividend yield=0.30/ 9.90

Dividend yield= 3.03%

C. Calculation to determine the Earnings per share

Using this formula

Earnings per share=Net Income / Average shares outstanding

Let plug in the formula

Earnings per share=159/ 720

Earnings per share= $0.22

D. Calculation to determine Price-earnings ratio

Using this is formula

Price-earnings ratio=Stock price / Earnings per share

Let plug in the formula

Price-earnings ratio=9.90 / 0.22

Price-earnings ratio= 45

On August 1, Year 1, SuperCool Software (SCS) began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31st of year 2, and the program was available for release on March 31, year 2. Development costs were incurred as follows:August 1 through December 31, Year 1 $ 4,000,000January 1 through January 31, Year 2 600,000February 1 through March 31, Year 2 900,000SCS expects a useful life of five years for the software and total revenues of $10,000,000 during that time. During Year 2, SCS recognized $2,000,000 in revenue, included in the $10,000,000 total revenue estimate.Calculate the required amortization for Year 2 (Hint: calculate using both methods, choose the greater number)

Answers

Answer:

$180,000

Explanation:

Calculation to determine the required amortization for Year 2

(1)Using Percentage-of-revenue method

Percentage-of-revenue method=($2,000,000/$10,000,000)*$900,000

Percentage-of-revenue method= 20% *$900,000

Percentage-of-revenue method= $180,000

(2) Using Straight-line method

Straight-line method=$900,000 × 1/5 × 9/12

Straight-line method= $135,000

Therefore based on the above calculation the required amortization for Year 2 will be $180,000 using The percentage-of-revenue method reason been that the method help to produces higher amortization of the amount of $180,000.

To be included in property, plant, and equipment, an asset must have all of the following except Group of answer choices a. the asset must be held for use. b. the asset must have an expected life of a normal operating cycle. c. the asset must be tangible in nature. d. the asset must have an expected life of more than one year. g

Answers

Answer:

b. the asset must have an expected life of a normal operating cycle.

Explanation:

A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.

Hence, to be included in property, plant, and equipment, an asset must have all of the following;

I. The asset is expected or required to be held for use

II. It must be tangible in nature.

III. It is required to have an expected life of that is typically above a year.

Two hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 500Qmill + (Qmill)2 where Qmill indicates the mills annual production in thousands of tons. The marginal cost of production is MC = 500 + 2Qmill. The external cost of a mill’s production (in dollars) is given by the formula EC = 40Qmill + (Qmill)2 and the marginal external cost of production is MEC = 40 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 150,000 – 100P where P is the price of paper per ton. Using algebra, find the competitive equilibrium price and quantity, as well as the efficient quantity. Calculate the magnitude of the deadweight loss resulting from the externality. Illustrate your solution with graphs.

Answers

Answer: See explanation

Explanation:

The magnitude of the deadweight loss resulting from the externality is shown below:

MC = 500 + 2Q

MEC = 40 + 2Q

Therefore, the Marginal social cost (MSC) will be:

= MC + MEC

= 500 + 2Q + 40 + 2Q

= 540 + 4Q

Since Demand: Q = 150,000 - 100P, we have to get a function for P which will be:

Q = 150,000 - 100P

100P = 150,000 - Q

P = (150,000 - Q)/100

P = 1,500 - 0.01Q

Total revenue, TR = P x Q

= (1,500 - 0.01Q) × Q

= 1500Q - 0.01Q²

Marginal revenue, MR will be:

= dTR / dQ

= 1,500 - 0.02Q

It should be noted that for when there's no externality, Equilibrium, MC must be equal to MR. Therefore,

1,500 - 0.02Q = 500 + 2Q

2Q + 0.02Q = 1500 - 500

2.02Q = 1,000

Q = 1000/2.02

Q = 495

P = 1,500 - (0.01 x 495)

= 1,500 - 4.95

= 1,495.05

When there's externality, Equilibrium will be:

MR = MSC

1,500 - 0.02Q = 540 + 4Q

4.02Q = 960

Q= 960/4.02

Q = 239

Therefore, P = 1,500 - (0.01 x 239)

= 1,500 - 2.39

= 1,497.61

Then, we will calculate the deadweight loss which will be:

= 1/2 x Difference in price x Difference in quantity

= 1/2 x (1,497.61 - 1,495.05) x (495 - 239)

= 1/2 x 2.56 x 256

= 327.68

First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0415. The standard deviation of the returns on the market portfolio is 20% and the expected market risk premium is 6.7%. The company has bonds outstanding with a total market value of $55 million and a yield to maturity of 6.5%. The company also has 4.2 million shares of common stock outstanding, each selling for $35. The company’s CEO considers the firm’s current debt-equity ratio optimal. The corporate tax rate is 21% and Treasury bills currently yield 3.4%. The company is considering the purchase of additional equipment that would cost $49 million. The expected unlevered cash flows from the equipment are $16.4 million per year for five years. Purchasing the equipment will not change the risk level of the firm. Calculate the NPV of the project.

Answers

Answer:

NPV of the project = $14,906,309.99

Explanation:

Note: See the attached excel file for calculation of the NPV of the project (in bold red color).

The weighted average cost of capital (WACC) used in calculating the discounting factor used in the attached excel file is calculated as follows:

Cost of equity = Treasury bills current yield + (Stock returns covariance with the market portfolio / Standard deviation of the returns on the market portfolio^2) * Expected market risk premium = 3.4% + (0.0415 / 20%^2) * 6.7% = 10.35%

After tax cost of debt = Bond yield to maturity * (100% - Tax rate) = 6.5% * (100% - 21%) = 5.14%

Market value of debt = $55,000,000

Market value of equity = Shares of common stock outstanding * Market price per share = 4,200,000 * $35 = $147,000,000

Total market value = Market value of equity + Market value of debt = $147,000,000 + $55,000,000 = $202,000,000

Equity share in the market value = $147,000,000 / $202,000,000 = 72.77%

Debt share in the market value = $55,000,000 / $202,000,000 = 27.23%

WACC = (Cost of equity * Equity share in the market value) + (After tax cost of debt * Debt share in the market value) = (10.35% * 72.77%) + (5.14% * 27.23%) = 8.93%

From attached excel file, we have:

NPV of the project = $14,906,309.99

A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $118,982.50 today. The system is expected to generate net cash flows of $10,209 per year for the next 35 years. The investment has zero salvage value. The company requires an 7% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted

Answers

Answer and Explanation:

The computation of the net present value is given below:

a.

As we know that

Net present value

= Annual cash inflows × PVIFA factor at 7% for 35 years - initial investment

= $10,209 × 12.9477 - $118,982.50

= $132,183.0693 - $118,982.50

= $13,200.57

Hence, the net present value is $13,200.57

b. Yes the project should be accepted as it net present value comes in positive amount

Income Statement The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $6,700 Fees Earned 355,800 Insurance Expense 1,270 Miscellaneous Expense 2,680 Rent Expense 50,900 Salaries Expense 178,900 Supplies Expense 2,280 Utilities Expense 19,400 Prepare an income statement for Urgent Messenger Service.

Answers

Answer:

$93,670

Explanation:

Preparation of an income statement for Urgent Mess

INCOME STATEMENT

Urgent messenger service

for the year ended november 30, 20Y1

REVENUE :

Fees earned $355,800

Less expenses :

depreciation expense ($6,700)

insurance expense ($1,270)

miscellaneous expense ($2,680)

rent expense ($50,900)

salaries expense ($178,900)

supplies expense ($2,280)

utilities expense ($19,400)

TOTAL EXPENSES ($262,130)

NET INCOME $93,670

($355,800-$262,130)

Therefore the income statement for Urgent Mess will be $93,670

The net income of Urgent Messenger Service is $93,670.

                              INCOME STATEMENT

REVENUE:

Fees earned                                                    $355,800

Expenses :

Depreciation expense                ($6,700)

insurance expense                     ($1,270)

Miscellaneous expense             ($2,680)

Rent expense                             ($50,900)

Salaries expense                        ($178,900)

Supplies expense                      ($2,280)

Utilities expense                        ($19,400)

Total Expenses                                                 ($262,130)

Net Income                                                        $93,670

In conclusion, the net income of Urgent Messenger Service is $93,670.

Read more about Income Statement

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The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours Standard labor rate $ 17.60 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours Actual total labor cost $ 107,970 Actual output 1,300 units Required: a. What is the labor rate variance for the month

Answers

Answer:

4400 Unfavorable

Explanation:

Calculation to determine the labor rate variance for the month

First step is to calculate the Standard hours using this formula

Standard hours = Standard labor-hours per unit of output*Actual output

Let plug in the formula

Standard hours= 4.5*1,300 units

Standard hours= 5850

Now let calculate the Direct labor efficiency variance using this formula

Direct labor efficiency variance = (Standard hours - Actual hours)*Standard rate

Let plug in the formula

Direct labor efficiency variance= (5,850-6,100)*17.60

Direct labor efficiency variance= 4400 Unfavorable

Therefore the labor rate variance for the month is 4400 Unfavorable

Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. May 22 Received a 30-day, 6% note in payment for merchandise sale of $20,000. June 21 Received $100 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. July 21 Received principal and interest on the new (June 21) note. 28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600. Sept. 11 Received $101.5 cash (interest) plus $1,200 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Nov. 10 Received principal and interest on the new (September 11) note.

Answers

Answer:

Journal Entries:

May 22 Debit 6% Note Receivable $20,000

Credit Sales Revenue $20,000

To record the receipt of a 30-day, 6% note in payment for merchandise.

June 21 Debit Cash $100

Credit Interest Revenue $100

To record a month's interest received on the note receivable.

Debit 7% Note Receivable $20,000

Credit 6% Note Receivable $20,000

To record the renewal of the 6% note with a 7% note for 30 days.

July 21 Debit Cash $20,116.67

Credit 7% Note Receivable $20,000

Credit Interest REvenue $116.67

To record the receipt of principal and interest on the new (June 21) note.

July 28 Debit 7% Note Receivable $11,600

Credit Accounts Receivable $11,600

To record the receipt of a 45-day, 7% note in payment for accounts receivable balance.

Sept. 11 Debit Cash $1,301.50

Credit Interest Revenue $101.5

Credit 7% Note Receivable $1,200

To record the receipt of cash for note and interest.

Debit 7.5% Note Receivable $10,400

Credit 7% Note Receivable $10,400

To record the renewal of the old note for 60 days at 7.5%.

Nov. 10 Debit Cash $10,530

Credit 7.5% Note Receivable $10,400

Credit Interest Revenue $130

To record full settlement of principal and interest on the note.

Explanation:

a) Data and Analysis:

May 22 6% Note Receivable $20,000 Sales Revenue $20,000.

June 21 Cash $100 Interest Revenue $100

7% Note Receivable $20,000 6% Note Receivable $20,000

July 21 Cash $20,116.67 7% Note Receivable $20,000 Interest REvenue $116.67

July 28 7% Note Receivable $11,600 Accounts Receivable $11,600

Sept. 11 Cash $1,301.50 Interest Revenue $101.5 7% Note Receivable $1,200

7.5% Note Receivable $10,400 7% Note Receivable $10,400

Nov. 10 Cash $10,530 7.5% Note Receivable $10,400 Interest Revenue $130

Problems and Applications
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.
Characteristic Perfectly Monopolistically
Competitive Competitive
Charges a price that is the same as marginal cost.
Sells a product differentiated from those of its competitors.
Produces at the efficient scale of the firm.
Equates marginal revenue and marginal cost.
Operates with excess capacity.
Earns economic profit in the long run.

Answers

Answer:

a perfectly competitive firm

a monopolistically competitive firm

a perfectly competitive firm

Both the perfectly competitive firm and monopolistically competitive firm

a monopolistically competitive firm

Neither firms

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Firms are productive and allocative efficient and do not operate with excess capacity  

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services. As a result, price is always higher than marginal cost

Profit is maximised when marginal revenue equal marginal cost  

An example of monopolistic competition are restaurants  

Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?

Answers

Answer: $3000

Explanation:

Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:

= Down payment + Cash allowance

= $2500 + $500

= $3000

Molly needs a loan of $3000

Answer:

Molly needs a $1,000 loan.

Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 40,000 60,000 100,000 Long-run usage (hours) 45,000 55,000 100,000 If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be

Answers

Answer:

$80,000

Explanation:

Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be

Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000

Variable administrative cost to allocate to Department 1=0.4×$200,000

Variable administrative cost to allocate to Department 1= $80,000

Therefore The Variable administrative cost to allocate to Department 1 would be $80,000

Which of the following is a gauge used to measure distance traveled?

Answers

Answer:

please give me brainlist and follow

Explanation:

An odometer or odograph is an instrument used for measuring the distance traveled by a vehicle, such as a bicycle or car. The device may be electronic, mechanical, or a combination of the two (electromechanical).

what is the bad side of profit motive?

Answers

Answer:

The profit motive that drives companies and individuals all too often gives way to greed. The power of leadership all too often gives way to elitist domination. The accumulation of wealth can look like excess or hoarding while income inequality increases in economies around the globe

Which type of bonds are written by a municipality with you give me to repay the amount of the bond plus interest on a particular maturity date

A) government

B) preferred

C)mutual

Answers

The Correct Answer: government

Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $205,900, $265,100, and $78,400, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,900, machine hours 24,100, and number of inspections 1,600. Compute the overhead rate for each activity.

Answers

Answer:

Overhead cost per set-up =$71

Overhead cost per machine hour =$11

Overhead cost per inspection=$49

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

Activity rate is calculated as:

Activity cost for the period / Total cost drivers for the period

So, we can apply this formula as follows:

Overhead cost per set-up = $205,900/2,900 set-ups=$71

Overhead cost per machine hour = $265,100/24,100 hours=$11

Overhead cost per inspection = $78,400/1,600 inspection=$49

What can students do to “get smarter” refer to 5 characteristics of Grit

Answers

Have a growth mindset,
Have a bigger attention span,
Participate,
Do work the correct way,
Believe in yourself.

an increase in supply is illustrated by a supply curve sifting to the right

Answers

Answer:

Right************, ***

Peter wishes to create a retirement fund from which he can draw when he retires and the same amount at each anniversary of his retirement for years. He plans to retire years from now. What investment need he make today if he can get a return of per year, compounded annually

Answers

Answer:

$65,742.60

Explanation:

Note: The full question is "Peter wishes to create a retirement fund from which he can draw $20,000 when he retires and the same amount at each anniversary of his retirement for 10 years. He plans to retire 20 years from now. What investment need he make today if he can get a return of 5% per year, com- pounded annually?"

At first, we need to find the PV of withdrawals and there are 11 withdrawals starting 20 years from now.  

PV = PMT/r * 1 - 1/(1+r)^n. This formula gives the PV one period before the first withdrawal. That is 19 years from now because the first withdrawal is 20 years from now.

PMT = 20,000, n = 11,  

r = 0.05

PV19 = 20,000/0.05 * [1 - 1/(1+0.05)^11]

PV19 = 400,000 * 0.4153207109

PV19 = 166,128.28436

Now, we need to discount this back to toda

PV0 = PV19/(1 + r)^n; n = 19, r = 0.05

PV0 = 166,128.28436/(1 + 0.05)^1

PV0 = $65,742.6033421702

PV0 = $65,742.60

So, Peter needs to make $65,742.60 today.

An ad for Tums antacid shows a guest at a restaurant asking for Tums to alleviate his heartburn. The waitress brings him a bowl that is filled with packets of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same. The guest then explains to her that Tums is different because it is the only antacid brand that has calcium. Tums is using: Group of answer choices one-sided advertising two-sided advertising comparative advertising verbal appeals visual appeals'

Answers

Answer:

comparative advertising

Explanation:

Comparative advertising is a marketing strategy where the product or service of the company would be represented as a superior good as compared to the competitor. It compared the features of the company to the competitor

Since in the given situation, it is mentioned that the guest explains to her than tums should be different as it the antacid brand that contains only calcium

So, the above represent the answer

The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials purchases 88,000 Ending raw materials inventory 11,400 Manufacturing supplies expense 800 The amount of raw materials used in production for the year is: Multiple Choice $88,600. $76,600. $89,400. $87,400.

Answers

Answer:

Direct material used= $88,600

Explanation:

Giving the following information:

Beginning raw materials inventory$12,000

Raw materials purchase 88,000

Ending raw materials inventory 11,400

To calculate the direct material used in production, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 12,000 + 88,000 - 11,400

Direct material used= $88,600

Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).

Answers

Answer:

Sophia's Net Worth

Sophia's net worth is:

=  ($40,453).

Explanation:

a) Data and Calculations:

Assets:

Proceeds from sale of furniture = $450

Checking account deposit =         2,700

Savings account                            7,500

Car                                                 3,254

Total assets                               $13,904

Liabilities:

Credit card                                     $179

Student loan after graduating   54,178

Total liabilities                         $54,357

Sophia's net worth =             ($40,453)

b) Sophia's net worth is in the negative because of the student loan.  This implies that she is in debt.  A negative net worth simply means that Sophia owes more than she owns.  In other words, Sophia's liabilities exceed her assets' value.

Tim, a single taxpayer, operates a business as a single-member LLC. In 2020, his LLC reports business income of $382,000 and business deductions of $668,500, resulting in a loss of $286,500. What are the implications of this business loss

Answers

Answer: See explanation

Explanation:

First, it should be noted that a threshold limit of $250,000 applies to the question according to IRS since Tim is a single taxpayer.

Therefore, the excess business loss will be:

= $286,500 - $250,000

= $36500

Therefore, Tim can use $250000 out of the loss of $286,500 to offset the non business income. Then, the excess business loss of $36500 will be treated as part of the NOL carryforward for Tim.

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