Answer: 11.88%
Explanation:
Hiker's effective interest rate on this loan will be calculated as:
Interest = Amount × Discount rate × 8/12
= 112000 × 11% × 8/12
= 112000 × 0.11 × 0.667
= 8217.44
= 8217 approximately
Effective interest rate will then be:
= (Interest / Amount - Interest) × 12/8
= 8217 /(112000 - 8217) × 3/2
= 8217/103783 × 1.5
= 0.0791748 × 1.5
= 0.1187622
= 11.88%
On July 15, Piper Co. sold $24,000 of merchandise (costing $12,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions. On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $720 cash. On November 20, the Bucks played the first game of the six game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.
Answer:
July 15
Dr Cash $24,960
Cr Sales $24,000
Cr Sales Taxes Payable $960
Dr Cost of Goods Sold $12,000
Cr Merchandise Inventory $12,000
On August 1
Dr Sales Taxes Payable $960
Cr Cash $960
On November 3
Dr Cash $720
Cr Unearned Ticket Revenue $720
On November 20
Dr Unearned Ticket Revenue $120
Cr Ticket Revenue $120
Explanation:
Preparation of the journal entries
July 15
Dr Cash $24,960
($24,000+$960)
Cr Sales $24,000
Cr Sales Taxes Payable $960
($24,000*4%)
Dr Cost of Goods Sold $12,000
Cr Merchandise Inventory $12,000
On August 1
Dr Sales Taxes Payable $960
Cr Cash $960
($24,000*4%)
On November 3
Dr Cash $720
Cr Unearned Ticket Revenue $720
On November 20
Dr Unearned Ticket Revenue $120
Cr Ticket Revenue $120
(1/6*$720)
Max, Inc., has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division
Answer:
$200,000
Explanation:
Segment Margin is Profit wholly controlled by a specific division. Now, this excludes shared costs from the central Head Office.
The segment margin for the South Division is calculated as follows :
Sales $500,000
Less Variable Costs (40% x $500,000) ($200,000)
Contribution (60% x $500,000) $300,000
Less Traceable Fixed Expenses ($100,000)
Segment Margin $200,000
Conclusion
The segment margin for the South Division is $200,000
What is the interest rate charged on the unpaid balance of a credit card called?
Blue Co. had the following first-year amounts related to its $12,000,000 construction contract: Actual costs incurred and paid $ 3,000,000 Estimated remaining costs to complete 6,000,000 Progress billings 3,500,000 Cash collected 3,100,000 Assuming the contract qualifies for revenue recognition over time, what total amount (excluding cash) should Blue Co. recognize as current assets at year end
Answer:
$900,000
Explanation:
The computation of the total amount excluding cash is shown below:
But before that following calculations need to be done
% completion during the year is
= $3,000,000 ÷ ($3,000,000 + $6,000,000)
= 33.3333%
Now Total revenue to be recognized for the year is
= $12,000,000 × 33.33333%
= $4,000,000
Profit for the year is
= $4,000,000 - $3,000,000
= $1,000,000
Now Accounts receivables at the end of year is
= Billings - Collection
= $3,500,000 - $3,100,000 = $400,000
Now Cost and profits in excess of billings
= ($3,000,000 + $1,000,000) - $3,500,000
= $500,000
And, finally Total amount of current assets to be recognize at year end is
= $400,000 + $500,000
= $900,000
Explain why unions play a reduced role in the US economy today.
Answer:
I won`t lie, unions are useless. They got everything they need.
Explanation:
There used to working conditions for absolute terrible . Then unions took action, boom done. Now unions is all about money. The leaders get rich off of people who want better pay like 15 bucks to flip a burger. That is just well, sad to be payed 15 an hour to flip burgers at a fast food place meant for high schoolers. See what I am saying?
Answer:
Unions are good for all workers. They improve wages, benefits, and working conditions, and helped create the middle class. Unions raise wages for all workers. ... Even today, union workers earn significantly more on average than non-union counterparts and union employers are more likely to provide benefits
Explanation:
Edge 2021
1. Which of the following statements explains why the demand curve in the loanable funds market slopes downward? *
1 point
As the real interest rate increases, lenders are willing to lend more money
As the real interest rate decreases, lenders are willing to lend more money
As the real interest rate increases, borrowers are willing to borrow more money
As the real interest rate increases, borrowers are willing to borrow less money
None of these explanations is appropriate.
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, you come across several items needing further consideration. Currently, net income is $87,000.
a. An insurance policy covering 12 months was purchased on October 1, 2018, for $16,200. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2018.
b. During 2018, the company received a $2,700 cash advance from a customer for services to be performed in 2019. The $2,700 was incorrectly credited to Service Revenue.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $2,100 were on hand at December 31, 2018.
d. Trojan borrowed $57,000 from a local bank on September 1, 2018. Principal and interest at 9% will be paid on August 31, 2019. No accrual was made for interest in 2018.
Answer:
$76,440
Explanation:
Calculation to determine the proper amount of net income as of December 31, 2018
Net income $87,000
Less Adjusted for insurance ($4,050)
($16,200*3/12)
Less Adjusted for deferred income ($2,700)
Less Adjusted for supplies ($2,100)
Less Adjusted for interest ($1,710)
($57,000*9%*4/12)
Net income (Adjusted) $76,440
Therefore The the proper amount of net income as of December 31, 2018 will be $76,440
Peter is a plumber employed by a major contracting firm. During the current year, he paid the following miscellaneous expenses: Unreimbursed employee business expenses $450 Union dues $600 Tax return preparation fee $100 Safe deposit box rental fee (used only for personal effects) $ 20 If Peter were to itemize his deductions for the current year, what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)
Answer:
$1,150
Explanation:
Calculation to determine what amount could he claim as miscellaneous itemized deductions
Unreimbursed employee business expenses $450
Add Union dues $600
Add Tax return preparation fee $100
Miscellaneous itemized deductions $1,150
($450 + $600 + $100=$1,150)
Therefore the amount he could he claim as miscellaneous itemized deductions will be $1,150
Shmenson Company uses the periodic inventory system. Sales for 2020 were $470,000 while operating expenses were $175,000. Beginning and ending inventories for 2020 were $70,000 and $60,000, respectively. Net purchases were $180,000 while freight in was $15,000. The net income or loss for 2020 was:
Answer:
The net income for 2020 was $90,000
Explanation:
Shmenson Company
Income Statement for the year ended 2020
Sales $470,000
Less Cost of Sales
Beginning Inventories $70,000
Add Net purchases $180,000
Add Freight In $15,000
Less Ending Inventories ($60,000) ($205,000)
Gross Profit $265,000
Less Expenses
Operating expenses ($175,000)
Net Income $90,000
Conclusion
Thus, the net income for 2020 was $90,000.
Transactions that affected Barter Company’s stockholders’ equity during 2015, the first year of operations, follow.
(a) Issued 50,000 shares of $3 par common stock at $33.
(b) Purchased 6,000 shares of its own common stock at $35.
(c) Reissued 1,000 shares of treasury stock at $37. Dividends of $15,000 were paid in 2015, and net income for 2015 was $185,000.
What is total stockholders’ equity at the end of $2015?
a) $1,662,000
b) None of these
c) $1,820,000
d) $1,477,000
e) $1,645,000
Answer:
Barter Company
The total stockholders' equity at the end of 2015 is:
= b) None of these
Explanation:
a) Data and Analysis:
a. Cash $1,650,000 Common Stock $150,000 Additional Paid-up Capital $1,500,000
b. Treasury stock $18,000 Additional Paid-up Capital $192,000 Cash 210,000
c. Cash $37,000 Common Stock $3,000 Additional Paid-up Capital $34,000
d. Dividends $15,000 Cash $15,000
e. Net income = $185,000
Stockholders' Equity:
Common stock $153,000
APIC = 1,342,000
Net income = 185,000
Dividends = (15,000)
Total = $1,665,000
There are currently 487 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 16 students per year. Currently the annual expense to educate one student is $1,256, and the expense to educate one student is increasing at the rate of $36 per year. Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Answer:
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
Explanation:
Given - There are currently 487 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 16 students per year. Currently the annual expense to educate one student is $1,256, and the expense to educate one student is increasing at the rate of $36 per year.
To find - Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Proof -
Total number of students = 487
Students decreasing rate per year = 16 students
Annual expense to educate 1 student = $ 1256
The increasing rate for 1 student per year = $ 36
Now,
Total increasing cost = 487 × 36 = $ 17532
Now,
Total cost of decreasing students per year = $ 1256 ×16 = $ 20096
Now,
Rate of change = $ 20096 - $ 17532 = $2564
∴ we get
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 15,000 units at $60.00 Mar. 18 Sale 12,000 units May 2 Purchase 27,000 units at $62.00 Aug. 9 Sale 22,500 units Oct. 20 Purchase 10,500 units at $64.20 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.
Answer:
Jan. 1 Inventory 15,000 units at $60.00
Mar. 18 Sale 12,000 units
Cost of goods sold = 12,000 x $60 = $720,000
Inventory balance = $60 x 3,000 = $180,000
May 2 Purchase 27,000 units at $62.00
Aug. 9 Sale 22,500 units
Cost of goods sold = [($180,000 + $1,674,000) / 30,000] x 22,500 = $1,390,500
Inventory balance = [($180,000 + $1,674,000) / 30,000] x 7,500 = $463,500
Oct. 20 Purchase 10,500 units at $64.20
Memphis Company anticipates total sales for April, May, and June of $970,000, $1,070,000, and $1,120,000 respectively. Cash sales are normally 20% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales during the month of June.Multiple Choice$829,200.$730,400.$983,200.$1,053,200.$769,200.
Answer:
Total cash collection= $1,053,200
Explanation:
Giving the following information:
Sales:
April $970,000
May $1,070,000
June $1,120,000
Cash sales are normally 20% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected.
To calculate the total cash collection for June, we need to use the following structure:
Cash collection June:
Sales in cash from June= (1,120,000*0.2)= 224,000
Sales in account from June= (1,120,000*0.8)*0.4= 358,400
Sales in account from May= (1,070,000*0.8)*0.55= 470,800
Total cash collection= $1,053,200
The owner of a fast-food franchise has exclusive rights to operate in a medium-size metropolatin area. The owner currently has a single outlet open, which has proved to be very popular, and there are often waiting lines of customers. The owner is therefore considering opening one or more outlets in the area. What are the key factors that the owner should investigate before making a final decision
Answer:
The key factors that the owner should look at are:
Estimated budget for opening the new restaurant. The owner has to pay for each franchise restaurant, plus the equipment, furniture, and rent. Target market and potential demand. The restaurant current demand is very high, but will it be high if another restaurant opens.Location is extremely important for any business, and a restaurant is not the exception.The following transactions occurred over the months of September to December at Nicole’s Getaway Spa (NGS).
September
Sold spa merchandise to Ashley Welch Beauty for $1,600 on account; the cost of these goods to NGS was $820.
October
Sold merchandise to Kelly Fast Nail Gallery for $370 on account; the cost of these goods to NGS was $160.
November
Sold merchandise to Raea Gooding Wellness for $220 on account; the cost of these goods to NGS was $150.
December
Received $1,080 from Ashley Welch Beauty for payment on its account.
Required:
1.
Prepare journal entries for each of the transactions. Assume a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2. Estimate the Allowance for Doubtful Accounts required at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 1%; two months, 5%; three months, 20%; more than three months, 40%.
3. The Allowance for Doubtful Accounts balance was $43 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
4.
Assume the end of the previous year showed net accounts receivable of $760, and net sales for the current year are $8,600. Calculate the accounts receivable turnover ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
5.
Audrey’s Mineral Spa has an accounts receivable turnover ratio of 8.0 times. How does NGS compare to this competitor?
Answer:
Following are the solution to the given points:
Explanation:
In point a:
Following are the Journal entries of Nicole's Getaway Spa Books:
Month Title Account Dr Cr
September receivable Accounts 1,600
Sales 1,600
Sold gold cost 820
inventory Merchandise 820
October receivable Accounts 370
Sales 370
Sold gold cost 160
inventory Merchandise 160
November receivable Accounts 220
Sales 220
Sold gold cost 150
inventory Merchandise 150
December Cash 1,080
receivable Accounts 1,080
In point b:
Estimated Doubt Debt Allowance:
Class of age Quantity The proportion is Doubting debt
considered uncollectible allowance
1 month - [tex]1\%[/tex] -
2 month 220 [tex]5\%[/tex] 11
3 month 370 [tex]20\%[/tex] 74
More than 520 [tex]40\%[/tex] 208
3 month
1,110 293
In point c:
The Doubtful Account Balance amounts to [tex]\$43[/tex] before aging analysis is performed. Therefore, its amount of bad debt is [tex]\$293-43 \ or \ \$250[/tex]. Due ought to be the writing system Costs of poor debt [tex]\$ 250 \ US\ dollars[/tex] Doubtful cashback rewards allowance [tex]\$ 250 \ US\ dollars[/tex].
In point d:
Accounts receivable is calculated as total earnings accounts receivable. It is 8.600 / 760 and 11.32 time for NGS thus.
In point e:
Especially in comparison to both the Mineral Spa in Audrey, NGS' account receivable performance is quite healthy.
Susie buys two goods: rounds of golf and massages.Suppose that the price of a round of golf is $20 and the price of a massage is $30.In a typical week,Susie will play two rounds of golf,getting 20 units of satisfaction from the second round.She normally buys three massages each week,with the third giving her 30 units of satisfaction.If she were to buy a fourth massage in a week,it would give her 20 units of satisfaction.If the price of massages is reduced to $15,which of the following outcomes might we expect to occur?
A) Susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages.
B) Susie would buy more massages and fewer rounds of golf,as predicted by the income effect.
C) Susie would buy more massages and more rounds of golf,as predicted by the substitution effect.
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Answer:
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Explanation:
Let's check the utility that Susie gets from consuming these products.
The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1
The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1
But now the price the price for massage has come down to $15. The ratio of their prices would be
20/15 = 1.333
1.3 is greater than 1
So she should substitute golf for massages
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38,000 units at a price of $130 per unit.
Manufacturing costs
Direct materials per unit $54
Direct labor per unit $20
Variable overhead per unit $6
Fixed overhead for the year $506,000
Selling and administrative costs
Variable selling and administrative cost per unit $12
Fixed selling and administrative cost per year $115,000
Required:
Assume the company uses absorption costing. Determine its product cost per unit.
Answer:
Unitary costs= $91
Explanation:
Giving the following information:
Direct materials per unit $54
Direct labor per unit $20
Variable overhead per unit $6
Fixed overhead for the year $506,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary costs= (506,000 / 46,000) + 54 + 20 + 6
Unitary costs= $91
QUESTION 1 of 10: When buying an existing business, it is important to:
a) Find out why the business is for sale
b) Review existing financial statements
c) Both a) and b)
d) None of the above
Answer:
C
Explanation:
Consumer behavior is generally influenced by four elements. Whether or if your target customer purchases your goods depends on these considerations. They are social, psychological, personal, and cultural. Thus, option C is correct.
What is required to purchase an existing business?The examination of a business can be broken down into four clusters: the seller's background and motivations, any legal issues that may impact the operation.
The company's financial situation, and the company's standing and future prospects in its industry (its products, services, and future).
This is because an established business already has a proven track record of success. Higher chance of surviving, Numerous new businesses fail during their first few years of operation.
Therefore, Review existing financial statements and find out why the business is for sale.
Learn more about existing business here:
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Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price or Rate Standard Cost Direct materials 2.50 ounces $ 28.00 per ounce $ 70.00 Direct labor 0.50 hours $ 13.00 per hour 6.50 Variable manufacturing overhead 0.50 hours $ 3.60 per hour 1.80 $ 78.30 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 13,500 ounces at a cost of $361,800. b. There was no beginning inventory of materials; however, at the end of the month, 2,900 ounces of material remained in ending inventory. c. The company employs 21 lab technicians to work on the production of Fludex. During November, they worked an average of 140 hours at an average rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,400. e. During November, 4,200 good units of Fludex were produced . Required: For direct materials: a. Compute the price and quantity variances. (Round your "price per ounce" answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?
Answer:
A. Materials price variance 16,200 F
Materials quantity variance 2,800 U
B. Yes
Explanation:
A. Computation for the price and quantity variances For direct materials
Calculation for Materials price variance
Materials price variance=361,800-(13,500*28)
Materials price variance=361,800-378,000
Materials price variance=16,200 FAVOURABLE
Calculation for Materials quantity variance
First step is to calculate Actual materials used
Actual materials used=13,500-2,900
Actual materials used=10,600
Now let compute the Materials quantity variance
Materials quantity variance=28*(10,600-4,200*2.5)
Materials quantity variance=2,800
UNFAVORABLE
Therefore the price will be 16,200 FAVOURABLE and quantity variances will be 2,800 UNFAVORABLE For direct materials
B. Based on the above calculation I Would recommend that the company sign the contract because Materials variance is Favorable
The following information applies to the questions displayed below.]
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):
Work in Process—Mixing Department
June 1 balance 32,000 Completed and transferred to Finished Goods ?
Materials 141,245
Direct labor 90,500
Overhead 108,000
June 30 balance ?
The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,400 units were started into production. The June 30 work in process inventory consisted of 7,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.
3. How many units were completed and transferred to finished goods during the period?
4. Compute the equivalent units of production for materials.
5. Compute the equivalent units of production for conversion.
8. What is the cost per equivalent unit for materials?
10. What is the cost of ending work in process inventory for materials?
Answer:
Clopack Company
3. Units completed and transferred to finished goods during the period = 34,500 units
4. The equivalent units of production for materials = 42,300 units
5. The equivalent units of production for conversion = 38,400 units
8. The cost per equivalent unit for materials = $3.75
10. The cost of ending work in process inventory for materials = $29,250
Explanation:
a) Data and Calculations:
T-account:
Work in Process - Mixing Department
Account Titles Debit Credit
June 1 balance 32,000
Materials 141,245
Direct labor 90,500
Overhead 108,000
Transferred to Finished Goods ?
June 30 balance ?
Units Materials Conversion Total
Beginning WIP 4,900 $17,380 $14,620 $32,000
Degree of completion 100% 60%
Started into production 37,400 141,245 198,500 339,745
Total units available 42,300 $158,625 $213,120 $371,745
Ending WIP 7,800 100% 50%
Transferred out 34,500
Equivalent units of production Materials Conversion
Started and completed 34,500 34,500 (100%) 34,500 (100%)
Ending WIP 7,800 7,800 (100%) 3,900 (50%)
Total equivalent units 42,300 38,400
Cost per equivalent unit: Materials Conversion
Total cost of production $158,625 $213,120
Total equivalent units 42,300 38,400
Cost per equivalent unit $3.75 $5.55
Cost assigned to: Materials Conversion Total
Units started and completed $129,375 $191,475 $320,850
Ending Work in Process 29,250 21,645 50,895
Total cost assigned $158,625 $213,120 $371,745
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $2.50 per share.
Required:
a. Determine the total compensation cost pertaining to the RSUs.
b. Prepare the appropriate journal entry to record the award of RSL's on January 1, 2021.
c. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
d. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.
e. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
f. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Answer:
1.$30 million
2b. No ournal entry required
3 c. Dr. compensation expense $10million
Cr. paid in capital - restricted stock $10million
4. Dr. compensation expense $10million
Cr. paid in capital - restricted stock $10million
5. e. Dr. compensation expense $10million
Cr. paid in capital - restricted stock $10million
6.f Dr. paid in capital - restricted stock $30million
Cr. common stock $12million
paid in capital - excess of par $18million
Explanation:
1. Calculation to determine Determine the total compensation cost pertaining to the RSUs.
Total compensation cost pertaining to the RSUs.
=$2.50 fair value per share × 12million shares represented by RSUs granted
Total compensation cost pertaining to the RSUs=$30million
2.b. Preparation of the appropriate journal entry to record the award of RSL's on January 1, 2021.
No ournal entry required
3 c. Preparionn of the appropriate journal entry to record compensation expense on December 31, 2021.
Dr. compensation expense $10million
($30 million/3 years )
Cr. paid in capital - restricted stock $10million
4. d. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022.
Dr. compensation expense $10million
Cr. paid in capital - restricted stock $10million
($30 million/3 years )
5. e. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.
Dr. compensation expense $10million
Cr. paid in capital - restricted stock $10million
($30 million/3 years )
6.f Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Dr. paid in capital - restricted stock $30million
Cr. common stock $12million
paid in capital - excess of par $18million
($30 million-$12 million)
.
Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $1.60 a share (i.e., D0 = $1.60), and the dividend is expected to grow forever at a constant rate of 5% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answer to two decimal places. %
Answer:
$26.25
11.72%
Explanation:
Stock price next year = current price x ( 1 + growth rate)
$25 x (1.05) = $26.25
According to the constant growth dividend growth model :
P = D1 / ( r - g)
P = price of the stock
D1 = next dividend = current dividend x (1 +growth rate)
r = required rate of return
g = growth rate
$25 = $1.60 x ( 1.05) / r - 0.05
$25 = 1.68 / r - 0.05
$25 x ( r - 0.05) = 1.68
r = 0.1172
r = 11.72%
Bramble Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $569,900 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Bramble for the full sales price.
Required:
Prepare the Journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2020.
Answer:
Because past history has shown that Danone will take the cash discount, it will be removed from the journal entry:
= Notes payable - discount
= 569,900 - 9,900
= $560,000
Date Account Title Debit Credit
Jan. 2, 2020 Notes Receivable $560,000
Sales Revenue $560,000
Cost of Goods sold $500,000
Inventory $500,000
Fundamental analysis shows that stock in Garske Software Corporation has a present value that is higher than its price. a. This stock is undervalued; you should consider adding it to your portfolio. b. This stock is undervalued; you shouldn't consider adding it to your portfolio. c. This stock is overvalued; you should consider adding it to your portfolio. d. This stock is overvalued; you shouldn't consider adding it to your portfolio.
Answer: a. This stock is undervalued; you should consider adding it to your portfolio.
Explanation:
Since, we are informed that the stock in Garske Software Corporation has a present value that is higher than its price, this implies that the value of the stock in Garske Software is higher than the price, it means the stock is undervalued and it should be considered adding to the portfolio.
Therefore, the correct option is A
Suppose that you have an extra U.S. $1,000,000 to invest for six months. You are considering the purchase of U.S. T-bills that yield 1.810 percent (that's a six month rate, not an annual rate by the way) and have a maturity of 26 weeks. The spot exchange rate is 200 Won/$, and the six month forward rate is 220 Won/$, . The interest rate in South Korea (on an investment of comparable risk) is 13 percent. What is your strategy?
Answer:
The strategy is to convert the U.S. $1,000,000 into Won at the spot exchange rate of 200 Won/$, and then inevest it in South Korea by hedging with a short position in the forward contract.
Explanation:
From the question, the following facts can be obtained:
1. The 13 percent interest rate in South Korea (on an investment of comparable risk) is greater than the 1.810 percent (that's a six month rate, not an annual rate) U.S. T-bills.
2. The six month forward rate of 220 Won/$ is greater than the spot exchange rate of 200 Won/$.
Based on the 2 facts above, the best strategy is to convert the U.S. $1,000,000 into Won at the spot exchange rate of 200 Won/$, and then inevest it in South Korea by hedging with a short position in the forward contract.
When this market is in equilibrium, price is $ $6 and quantity bought and sold is 300 units. In equilibrium, consumer surplus is equal to $ and producer surplus is equal to $ . Assume government has imposed a price ceiling that requires sellers to charge a price of $4 (no higher). Given the new price, the quantity demanded is and the quantity supplied is , but the quantity bought and sold in this market will be . Using the price of $4 and the quantity bought and sold, consumer surplus is equal to $ , producer surplus is equal to $ , and deadweight loss is $ .
Answer: hello your question is incomplete attached below is the missing information
Answer :
$900
$600
Given the new price of $4 by Government
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
$975$150 $375Explanation:
Consumer surplus ( area below demand curve and above $300
= Area of triangle = 0.5 * base * height
= 0.5 * 300 ( 12 - 6 ) = $900
producer surplus ( area above supply curve and below $300
= Area of the triangle = 0.5 * 300 ( 6-2 ) = $600
Given the new price of $4 by Government
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
Consumer surplus ( area of triangle + area of rectangle )
= 0.5 * 150 * ( 12-9 )+ L*B
= 0.5 * 150 * ( 3 ) + 150 * ( 9 - 4 ) = $975
producer surplus ( Area of triangle )
= 0.5 * 150 * (4-2) = $150
deadweight loss ( area of triangle )
= 0.5 * ( 300 - 150 ) ( 9-4 )
= $375
Finland Inc has the following Accounts Receivable Aging on March 31 Aging BucketCurrent1-90 days91-180 days181-365 days366 days Amount Outstanding300,000180,000100,00050,00015,000 March sales were $320,000 February ending balance in Allowance for Doubtful Accounts was $30,000 Credit Finland uses the Percentage of Receivables Method and a 5% reserve rate. What is the required reserve at the end of March
Answer:
$32,250
Explanation:
Aging Bucket Amount Outstanding
Current 300,000
1-90 days 180,000
91-180 days 100,000
181-365 days 50,000
366+ days 15,000
Total $645,000
Total accounts receivable at the end of March = $645,000
Percentage uncollectible = 5%
Required reserve at the end of March = Total accounts receivable at the end of March * Percentage uncollectible
Required reserve at the end of March = $645,000*5%
Required reserve at the end of March = $32,250
The manager of a T-shirt company is considering investing in a new embroidery machine that costs $8,500, and the depreciation rate is 6.5% per year. The expected increase in next year’s revenue as a result of the investment is $1,500. For what values of the interest rate (r) should the company make this investment? Specify the answer to two places beyond the decimal point. Any r below %.
Answer:
The interest rate will be "11.147%".
Explanation:
The given values are:
Cost of machine,
= $8500
Depreciation rate,
= 6.5%
Increase in income,
= $1500
Now,
⇒ [tex]Increase \ in \ income=Cost \ of \ machine\times \frac{R}{100}+ Cost \ of \ machine\times \frac{Depreciation \ rate}{100}[/tex]
On substituting the values, we get
⇒ [tex]1500=8500\times \frac{R}{100}+8500\times \frac{6.5}{100}[/tex]
⇒ [tex]1500=85R+552.5[/tex]
On subtracting "552.5" from both sides, we get
⇒ [tex]1500-552.5=85R+552.5-552.5[/tex]
⇒ [tex]947.5=85R[/tex]
⇒ [tex]R=\frac{947.5}{85}[/tex]
⇒ [tex]R=11.147[/tex]%
On April 1, 2015, the City of Southern Ponds issued $3,500,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $3,490,000 was used to construct the police station, which was completed before December 31, 2015, the end of the fiscal year. The
remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2015, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $175,000 is due April 1, 2016.
What amount would be reported as debt service expenditures for 2015?
A) $ -0-
B) $ 70,000.
C) $140,000.
D) $245,000.
Answer:
B) $ 70,000.
Explanation:
Debt service expense
Debt service expense is the interest expense incurred to avail the debt services from another entity.
Debt service expense can be calculated using the following formula
Debt service expense = Face value of Bonds x Interest rate x Semiannual fraction
Where
Face value of bonds = $3,500,000
Interest rate = 4%
Semiannual fraction = 6 / 12 = 1/ 2
placing values in the formula
Debt service expense = $3,500,000 x 4% x 1/2
Debt service expense = $70,000
What amount should be remitted to the vendor for merchandise listed below? Quantity Item List Price 18 Billfold $25.00 each 6 Glasses case $15.00 each 21 French purse $30.00 each 9 Key case $12.50 each The invoice is dated September 18 and paid on October 12. Trade discounts are 40% and 15%; terms are 3/10 EOM, FOB store. The vendor has paid transportation charges of $13.84.
Answer:
The amount that should be remitted to the vendor for merchandise is:
= $1,103.98
Explanation:
a) Data and Calculations:
Quantity Item List Price Item Amount
18 Billfold $25.00 each $450
6 Glasses case $15.00 each 90
21 French purse $30.00 each 630
9 Key case $12.50 each 112.50
Total amount of items $1,282.50
Trade discount (15%) 192.38
Amount due to be remitted 1,090.12
b) The trade discount is taken to be 15%. The credit term indicates "3/10 EOM, FOB store." These terms imply that 3% discount would be granted if payment is made within 10 days. The credit period is till the end of the month (EOM). Another implication is that the transportation charges of $13.84 would be borne by the vendor and not the buyer (FOB store). FOB store means Free on Board, meaning that the vendor bears full responsibility for the goods until they are delivered to the buyer at her store.