Answer: Mutual mistake
Explanation:
A mutual mistake in a contract is a situation that arises when the parties in a contract make the same mistake in reference to a significant fact in the contract. i.e., they are mutually ignorant of a fact of the contract.
Had they both known about that mistake, they might not have gone into the contract so the contract is voidable in this scenario.
Both Walker and Sheerwood were mutually mistaken about the fact that Rose was pregnant when they went into the contract so this contract is voidable by this theory.
On January 1 of the current year, Townsend Co. commenced operations. It operated its plants at 100% of capacity during January.
The following data summarized the results for January:
Units
Production 50,000
Sales ($18 per unit) 42,000
Inventory, January 31 8,000
Total Cost or Expense:
Manufacturing costs variable 575,000
Fixed 80,000
Total 655,000
Selling and administrative expenses:
Variable $35,000
Fixed 10,500
Total 45,500
(a) Prepare an income statement in accordance with absorption costing.
(b) Prepare an income statement in accordance with variable costing.
Answer:
Results are below.
Explanation:
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.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
a) First, we need to calculate the unitary production cost under absorption costing:
Unitary production cost= (575,000 / 50,000) + (80,000 / 50,000)
Unitary production cost= $13.1
Now, the absorption costing income statement:
Sales= 42,000*18= 756,000
COGS= 13.1*42,000= (550,200)
Gross profit= 205,800
Total Selling and administrative expenses= (45,500)
Net operating income= 160,300
b) First, we need to calculate the total unitary variable cost:
Total unitary variable cost= (575,000/50,000) + (35,000 / 42,000)
Total unitary variable cost= $12.33
Now, the income statement:
Sales= 756,000
Total variable cost= 12.33*42,000= (517,860)
Total contribution margin= 238,140
Fixed overhead= (80,000)
Fixed selling and administrative= (10,500)
Net operating income= 147,640
Bluestone Company had three intangible assets at the end of the current year:
a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $4,000. When purchased, the patent had an estimated life of 10 years.
b. A trademark was registered with the federal government for $8,500. Management estimated that the trademark could be worth as much as $210,000 because it has an indefinite life.
c. Computer licensing rights were purchased this year on January 1 for $80,000. The rights are expected to have a five-year useful life to the company.
Required:
1. Compute the acquisition cost of each intangible asset.
2. Compute the amortization of each intangible for the current year ended December 31. (Do not round intermediate calculations.)
3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
Answer and Explanation:
The computation is shown below:
1) Calculation of the acquisition cost is
Patent = $4,000
Trademark = $210,000 + $8,500 = $218,500
Licensing Rights = $80,000
2) Computation the amortization expense is
Patent = $4,000 ÷ 10 = $400
Trademark = $218,500 ÷ 10 = $21,850
Here we assume the indefinite life of 10 years
Licensing Rights = $80,000 ÷ 5 = $16,000
3)
Income statement:
Amortization expense $38,250 ($400 + $21,850 + $16,000)
Balance sheet at year end december:
Fixed assets
Intangibles
Patent $3600 ($4,000 - $400)
Trademark $196,650 ($218,500 - $21,850)
Licensing Rights $64,000 ($80,000 - $64,000)
Butte Truck Company specializes in selling used trucks. During the first six months of 2015, the dealership sold 50 trucks at an average price of $18,000 each. The budget for the first six months of 2015 was to sell 45 trucks at an average price of $19,000 each. Compute the dealership's sales price variance and sales volume variance for the first six months of 2009.
Answer:
$50,000 U
Explanation:
Computation of the dealership's sales price variance and sales volume variance for the first six months of 2009.
Using this formula
Sales Price Variance = (Difference between budget price and actual price) x Actual qty sold.
Sales Price Variance= ($19,000 - $18,000) x 50 cars
Sales Price Variance= 1000*50
Sales Price Variance= $ 50,000 U
Therefore the dealership's sales price variance and sales volume variance for the first six months of 2009 is $ 50,000 U
International standards are used in supply chain to....
a. Find new methods to develop products.
b. Add new frame to the production process.
c. Add luxury to the organisation look.
d. Filter suppliers.
CLEAR MY CHOICE.
Answer:
a. Find new methods to develop products.
Explanation:
International standards, such as the ISO organization, can be understood as organizational certifications that confer a set of norms and policies to standardize organizational processes and maintain them in a high standard of quality, efficiency and legality.
Therefore, it is correct to state that international standards are used in supply chains as a way for companies to find new methods to develop products, based on an international standardization of processes, which provides continuous improvement to organizational systems, reduces costs and waste, in addition to to be an instrument to prove that a company bases its production processes on high standards recognized worldwide, which increases its reliability, positioning and attraction of investments.
Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 3% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $41,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows.
Cash Receipts Cash Payments
July $92,000 $120,000
August 118,000 106,900
September 157,000 134,400
Required:
Prepare a cash budget for July, August, and September.
Answer:
Mike's Motors Corp.
Cash Budget
July August September
Beginning balance $41,000 $30,000 $30,000
Cash receipts 92,000 118,000 157,000
Total cash available $133,000 $148,000 $187,000
Cash payments 120,000 106,900 134,400
Interest/Loan repayment 11,100 6,602
Cash balance 13,000 30,000 45,998
Cash to borrow 17,000 0 0
Minimum cash balance $30,000 $30,000 $30,000
Explanation:
a) Data and Calculations:
Minimum cash balance = $30,000
Interest rate on borrowings = 3% per month
Beginning cash balance = $41,000
Cash Budget
July August September
Beginning balance $41,000 $30,000 $30,000
Cash receipts 92,000 118,000 157,000
Total cash available $133,000 $148,000 $187,000
Cash payments 120,000 106,900 134,400
Interest/Loan repayment 11,100 6,602
Cash balance 13,000 30,000 45,998
Cash to borrow 17,000 0 0
Minimum cash balance 30,000 30,000 30,000
Loan repayment:
In August:
Interest is paid = $510 ($17,000 * 3%)
Loan is repaid = 10,590
Total paid = $11,100
Balance of loan unpaid = $6,410 ($17,000 - 10,590)
In September:
Interest on loan = $192 ($6,410 * 3%)
Loan repaid = 6,602 ($6,410 + 192)
Explain the role of secondary data in gaining customer insights
At the end of the video, Keith Reinhard says that advertisers have the ability not only to lift up the brands they work for but also to lift up the human spirit. Do you think this is true? Is it their responsibility? Explain.
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The Callie Company has provided the following information: Operating expenses were $237,000; Cost of goods sold was $364,000; Net sales were $870,000; Interest expense was $40,000; Gain on sale of a building was $77,000; Income tax expense was $122,400. What was Callie's gross profit
Answer:
$506,000
Explanation:
The gross profit of a company is the balance left after the deduction of costs associated with producing or selling of the company's goods or cost associated with providing services from the net revenue
The gross profit is simply calculated as
= Net revenue - Cost of goods sold
= $870,000 - $364,000
= $506,000
Therefore, Callie's gross profit is $506,000
On June 30, Petrov Co. has $140,800 of accounts receivable.
July 4 Sold $8,075 of merchandise (that had cost $5,168) to customers on credit, terms n/30.
9 Sold $20,398 of accounts receivable to Main Bank. Main charges a 8% factoring fee.
17 Received $4,441 cash from customers in payment on their accounts.
27 Borrowed $11,656 cash from Main Bank, pledging $15,153 of accounts receivable as security for the loan.
Required:
Prepare journal entries to record the above selected July transactions.
Answer:
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
Dr Factoring fee expense $1,631.84
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
Explanation:
Preparation of journal entries to record July transactions.
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
($20,398-$1,631.84)
Dr Factoring fee expense $1,631.84
($20,398*8%)
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain, and the second sale generated a $59,400 Section 1231 loss. As a result of these sales, Hugo should recognize: Multiple Choice $20,700 ordinary loss $38,700 Section 1231 gain treated as capital gain and $59,400 ordinary loss $20,700 capital loss None of these choices are correct
Answer:
$20,700 ordinary loss
Explanation:
Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :
Ordinary loss =-$59,400+$38,700
Ordinary loss =-$20,700
Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS
Assume that Synergy Inc. has been purchasing a component necessary for its final product for $220 a unit. The factory is currently operating at 80% of capacity and no major increase in production is expected in the near future. The cost per unit of manufacturing the component internally is estimated as follows: Direct materials $ 70 Direct labor 70 Variable factory overhead 42 Fixed factory overhead 56 Total cost per unit $238 Calculate the cost savings from manufacturing the component internally. a.$50
Answer:
$38
Explanation:
Calculation to determine the cost savings from manufacturing the component internally
Cost savings =$220-(Direct materials $ 70 +Direct labor $70+ Variable factory overhead $42)
Cost savings=$220-$182
Cost savings=$38
Therefore the cost savings from manufacturing the component internally will be $38
Companies U and L are identical in every respect except that U is unlevered while L has $16 million of 7% bonds outstanding. Assume: (1) All of the MM assumptions are met. (2) Both firms are subject to a 25% federal-plus-state corporate tax rate. (3) EBIT is $2 million. (4) The unlevered cost of equity is 10%.
Required:
a. What value would MM now estimate for each firm?
b. What is rs for Firm U? For Firm L?
c. Find SL, and then show that SL + D= VL results in the same value as obtained in part a.
d. What is the WACC for Firm U? For Firm L?
Answer:
a. Firm U value = $15 million; and Firm L value = $19 million.
b. rs for Firm U = 10%; and rs for Firm L = 22%.
c. Value of levered firm = VL = SL + D => $19 million = $3 million + $16 million
d. WACC for Firm U = 10%; and WACC for Firm L = 7.89%
Explanation:
rd = cost of debt = 7%
r0 = Unlevered cost of equity = 10%
a. What value would MM now estimate for each firm?
Firm U value = Value of unlevered firm = EBIT(1 – Tax rate ) / Unlevered cost of equity = (2 * (1 – 0.25)) / 0.1 = $15 million
Firm L value = Value of levered firm = Value of unlevered firm + (Debt * Tax rate) = 15 + (16 * 25%) = $19 million
This implies that:
SL = Value of equity = Value of levered firm – Debt = $19 – 16 = $3 million
b. What is rs for Firm U? For Firm L?
rs for Firm U = r0 = Unlevered cost of equity = 10%
rs for Firm L = r0 + (r0 – rd)(D / S)(1 – Tax rate) = 10% + (10% - 7%)*(16 / 3)*(1 - 0.25) = 22%
c. Find SL, and then show that SL + D= VL results in the same value as obtained in part a.
Interest = ($16 * 7%) = $1.12 million
Earning before tax = EBIT – Interest = $2 – $1.12 = $0.88 million
Tax = 0.88 * 25% = $0.22 million
Net income = Earning before tax – Tax = $0.88 - $0.22 = $0.66 million
SL = Value of equity = Net income / rs for Firm L = 0.66 / 22% = $3 million
D = $16 million
Value of levered firm = VL = SL + D => $19 million = $3 million + $16 million
d. What is the WACC for Firm U? For Firm L?
WACC for Firm U = r0 = 10%
WACC for Firm L = rs * (SL / VL) + rd * (D / VL) * (1 – Tax rate) = (22% * (3 / 19)) + (7% * (16 / 19) * (1-0.25)) = 7.89%
The behavioral approach is being applied when a corporate trainer ______. Group of answer choices gives a motivational speech to the executive team to boost morale administers an Emotional Intelligence test to match leaders and followers uses assessments to help leaders discover their relative focus on goals vs. people offers employees an in-depth look at their personality traits for behavioral improvement
Answer:
The right option is C (uses assessments.........vs. people).
Explanation:
Throughout the enterprise, the behavioral approach, which describes the conduct of managers, is used by allowing representatives to determine their attention on objectives and individuals.This highlights empirical research into observed behavioral reactions and their situational factors.Such given solutions do not concern the solution in question. Thus, the answer above is right.
why do monopolistic firms exhibit excess capacity?
Answer:
Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.
Explanation:
(hope this helps)
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
The cash paid would be less than the effective interest at each subsequent interest payment date when bonds are issued at a discount and the effective interest method is used for amortization.
The cash payment is computed by multiplying the face value of the bond with coupon rate. Here, an increase in interest expense is seen due to the discount in the amortized part.
Thus, the payment of interest would exceed means that the interest the payments in cash due to the issuance of the bond at discount.
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The income statement of Whitlock Company is presented here.
WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020
Sales revenue $7,407,400
Cost of goods sold Beginning inventory $1,920,000
Purchases 4,485,300
Goods available for sale 6,405,300
Ending inventory 1,445,800
Total cost of goods sold 4,959,500
Gross profit 2,447,900
Operating expenses 1,081,100
Net income $1,366,800
Additional information:
1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $70,000.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company, using the indirect method.
Answer:
$1,146,800
Explanation:
Preparation for the operating activities section of the statement of cash flows for the year ended November 30, 2020
WHITLOCK COMPANY
Partial Statement of Cash FlowsFor the Year Ended November 30, 2020
Cash flows from operating activities
Net income $1,366,800
Adjustments to reconcile net income to net cash provided by operating activities..
Activities
Depreciation expense $70,000
Decrease in inventory $500,000
Decrease in accrued expenses payable ($100,000)
Increase in prepaid expenses ($150,000)
Increase in accounts receivable ($200,000)
Decrease in accounts payable($340,000)($220,000)
Net cash provided by operatingActivities $1,146,800
($1,366,800-$220,000)
Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020 is $1,146,800
The Goode Perk Company produces several models of coffee makers. There is little difference in the production time required for the various model coffee machines. The plant is designed to produce 160 coffee machines per eight-hour shift, and there are two shifts per working day.
However, the plant does not operate for the full eight hours: the employees take two 12-minute breaks in each shift, one in the first four hours and one in the second four hours; two hours per week are devoted to cleaning the factory and performing maintenance on the machines; one four-hour period every four weeks is devoted to the meeting of the quality circle. The plant usually produces about 3,500 coffee machines per four-week period. You may ignore holidays in solving this problem. The selling price of the product is $160.00 per machine. The variable costs per unit are broken down as follows:
- Labor $60.25
- Raw material $25.70
- Purchased component $21.50
- Variable overhead $27.50
The fixed costs total $503,000 per year.
Required:
Using the above information what are the total variable costs per unit?
You are considering opening a small flower store. You anticipate that you will earn $100,000 each year in revenue. It will cost you $30,000 each year to rent the space necessary to run your business. Additionally, you will need to spend $10,000 each year on flower seeds, utilities, and other expenses necessary to operate your flower shop. You have just graduated from college with a degree in economics and have received an offer to work for a firm with a yearly salary of $70,000.
What is your anticipated economic profit of opening the flower shop?
Based on this information, you ________ open the flower store.
1. The anticipated economic profit for opening the flower shop is $130,000.
2. Based on the information, you should not open the flower store.
Data and Calculations:
Annual revenue = $100,000
Rent expense = $30,000
Cost of goods and others = $10,000
Accounting income = $60,000
Opportunity cost = $70,000
Economic loss = ($10,000) ($60,000 - $70,000)
Anticipated economic profit = $130,000 ($60,000 + $70,000)
Thus, the opening of the flower shop will produce an economic loss for the entrepreneur.
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Which of the following considerations might guide your decision regarding whether to copy Starbucks or sell coffee in a completely different way? Differentiation with respect to style and quality is impossible in a market this saturated—consumers will not be able to discern a significant difference between your coffee and your competitors' coffee. Regardless of whether you try to replicate Starbucks' style, it is necessary to differentiate with respect to quality and location. Differentiation with respect to quality is necessary to gain market power, but the additional cost of doing so in the premium coffee market will exceed
Answer:
Regardless of whether you try to replicate Starbucks' style, it is necessary to differentiate with respect to quality and location.
Explanation:
The quality and location of the product of a business are two important measures that can be used to differentiate the entity's product, especially in a saturated marketplace. Quality is always unique to the individuals involved. While some elements of quality can be duplicated, intrinsically, quality cannot be completely copied. The location of a business ensures a successful differentiation strategy.
ect the degree of leverage that completes the following sentence. Thedegree of operating leverage (DOL) is the percentage change in EPS that results from a given percentage change in sales, and it equals the product of the degrees of operating and financial leverage. Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating: Praxis Corp. Three Waters Co. Axis Chemical Co. Degree of Operating Leverage (DOL) 2.0 3.0 3.0 Degree of Financial Leverage (DFL) 6.5 4.0 3.5 According to this information, which company would be considered the riskiest
Answer: Praxis Corp
Explanation:
To know the company that would be considered the riskiest, we've to calculate the degree of total leverage for each firm and this will be:
Praxis Corp:
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 2.0 × 6.5
= 13.0
Three Waters Co.
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 3.0 × 4.0
= 12.0
Axis Chemical Co.
Degree of total leverage = Degree of operating leverage × Degree of financial leverage
= 3.0 × 3.5
= 10.5
Based on the calculation, since the degree of total leverage for Praxis Corp is the highest, it simply means that it's the riskiest.
Monogramm just paid a dividend of $2.19 per share. The company said that it will increase the dividend by 15 percent and 10 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.7 percent. If the required return is 10.7 percent, what is the stock price today
Answer: $38.03
Explanation:
Based on the information given in the question, dividend for first year will be:
= D1 = $2.19 × 1.15 = $2.5185
D2= $2.5185 × 1.1 = $2.77035
Then, we calculate the value after year 2 which will be:
=(D2 × Growth Rate) / (Required Return-Growth Rate)
=(2.77035 × 1.037) / (0.107-0.037)
=$41.04
Therefore, the stock price today will be:
= (2.5185/1.107) + (2.77035/1.107²) + (41.04)/1.107²
=$38.03
The price of a stock often rises after a stock dividend is declared. The current stock price is $38.03.
What will be the current stock price?Based on the information provided in the inquiry, the first-year dividend will be:
[tex]D1 = 2.19 \text{ x } 1.15 \\D1 = 2.5185\\D2= 2.5185 \text{ x }1.1\\\\D2= 2.77035[/tex]
Then, after the second year, we calculate the value, which is:
[tex]=(D2 \text{ x } \text{Growth Rate}) / (\text{Required Return-Growth Rate})[/tex]
[tex]=(2.77035[/tex] × [tex]1.037) / (0.107-0.037)[/tex]
[tex]=41.04[/tex]
As a result, today's stock price will be:
[tex]= (\frac{2.5185}{1.107}) + (\frac{2.77035}{1.107^{2}}) + (\frac{41.04}{1.107^{2}})\\=38.03 \text{ dollars}[/tex]
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Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assume that 8% is a reasonable rate of interest. What must be the amount of quarterly lease payments (beginning at the inception of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term?
Answer:
Manning Imports
The amount of the quarterly lease payments (beginning at the inception of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term should be:
Payment Every Quarter = $5,266.65
Explanation:
a) Data and Calculations:
Cash price of equipment = $100,000
Reasonable rate of interest = 8%
Lease period = 5 years
Payment period = 20
From an online financial calculator:
Payment Every Quarter $5,266.65
Total of 20 Payments $105,332.90
Total Interest $5,332.90
Lease Amortization Schedule with quarterly payment of $5,266.65:
Beginning Balance Interest Principal Ending Balance
1 $100,000.00 $500.00 $4,766.65 $95,233.35
2 $95,233.35 $476.17 $4,790.48 $90,442.88
3 $90,442.88 $452.21 $4,814.43 $85,628.45
4 $85,628.45 $428.14 $4,838.50 $80,789.94
Year #1 End
5 $80,789.94 $403.95 $4,862.70 $75,927.25
6 $75,927.25 $379.64 $4,887.01 $71,040.24
7 $71,040.24 $355.20 $4,911.44 $66,128.79
8 $66,128.79 $330.64 $4,936.00 $61,192.79
Year #2 End
9 $61,192.79 $305.96 $4,960.68 $56,232.11
10 $56,232.11 $281.16 $4,985.48 $51,246.63
11 $51,246.63 $256.23 $5,010.41 $46,236.21
12 $46,236.21 $231.18 $5,035.46 $41,200.75
Year #3 End
13 $41,200.75 $206.00 $5,060.64 $36,140.11
14 $36,140.11 $180.70 $5,085.94 $31,054.16
15 $31,054.16 $155.27 $5,111.37 $25,942.79
16 $25,942.79 $129.71 $5,136.93 $20,805.86
Year #4 End
17 $20,805.86 $104.03 $5,162.62 $15,643.24
18 $15,643.24 $78.22 $5,188.43 $10,454.81
19 $10,454.81 $52.27 $5,214.37 $5,240.44
20 $5,240.44 $26.20 $5,240.44 -$0.00
Year #5 End
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the straight-line method to amortize the bond premium.
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answer:
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
Dr Interest Expense $24,026
Dr Premium on bonds payable $3,474
Cr Cash $27,500
Explanation:
Preparation of the required journal entries to record the bond issuance and the first interest payment on December 31.
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
($300,328-$250,000)
(Being bond issued at a premium is recorded)
Dr Interest Expense $24,026
($300,328 × 8%)
Dr Premium on bonds payable $3,474
($27500-$24,026)
Cr Cash $27,500
($250,000 ×11%)
(Being interest expense recorded)
Identify which economic indicator should be used to track each of the following. a. The overall size of the economy the unemployment rate real GDP nominal GDP real GDP growth b. Labor market performance inflation business confidence the unemployment rate consumer confidence c. The future trajectory of economic activity the employment cost index real GDP inflation annual growth of the S&P 500 d. Wages and benefits business confidence real GDP the employment cost index consumer confidence
Answer:
a. The overall size of the economy ⇒ real GDP
The real GDP is adjusted for inflation and so would show the overall size of the economy in more accurate terms.
b. Labor market performance ⇒ the unemployment rate
The unemployment rate is best used to show how the labor market is performing because it shows the amount of people who are employed and those who are not in a given period.
c. The future trajectory of economic activity ⇒ annual growth of the S&P 500
The S&P 500 shows the performance of 500 large companies in the U.S. Their performance can be used to anticipate the trajectory of future economic activity because they influence the economy due to their large size.
d. Wages and benefits ⇒ the employment cost
The employment cost shows the wages and benefits that have to be paid to labor.
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produced 11,297 12,205 9,276 Each chair produced uses 4 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month. How many board feet of wood does Tucker need to purchase in February? Round your answer to the nearest whole number. Don't round any intermediate calculations.
Answer:
Tucker Company
The number of board feet of wood that Tucker needs to purchase in February is:
= 46,297.
Explanation:
a) Data and Calculations:
Production Budget
January February March Total
Units Produced 11,297 12,205 9,276 32,778
Board fee for each chair 4 4 4 4
Total board feet required 45,188 48,820 37,104 131,112
Board feet required 45,188 48,820 37,104 131,112
Ending Materials Inventory 9,764 7,421
Beginning Materials Inventory (0) (9,764) (7,421)
Purchase of board feet 54,952 46,297
list dawn (5)habits for good delivery that a speeker need to develope
Answer:
Explanation:
Think and Speak Visually to "Create Word-Pictures"
Discover the Art of the Conversation.
how does an increase in bad debt affect a sole trader financial statement
Answer:
It will increase expense, thereby reducing the profit mentioned in the income statement and decrease the current asset (debtor) recorded in the balance sheet.
Explanation:
Bad Debt is an expense that is recorded when it is expected that the customer, who owes a debt to the business, might default in clearing their dues.
As such when the bad debt amount is increased it will result in a rise in expense and therefore the profit, as stated in the profit and loss (income statement) of the sole trader would decrease.
Moreover, it will also decrease the value of trade receivables (current assets) mentioned in the balance sheet. The following entry would be recorded:
Bad Debts (Dr) xxxxx
Trade Receivables (Cr) xxxxxx
Hence, the expenses will increase while the current asset will decrease.
Which doctor was the first to read the patient's chart in grey's anatomy
Answer:
mer
Explanation
i think im not sure that was so long ago byee
Presented below is information for Marin Company.
1. Beginning-of-the-year Accounts Receivable balance was $23,100.
2. Net sales (all on account) for the year were $104,700. Marin does not offer cash discounts.
3. Collections on accounts receivable during the year were $85,400.
Marin is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,075.
Required:
Prepare (summary) journal entries to record the items noted above.
Answer:
Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.
Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.
Explanation:
The (summary) journal entries to record the items noted will look as follows:
Particulars Debit ($) Credit ($)
Accounts Receivable 104,700
Sales Revenue 104,700
(To record net sales (all on account) for the year.)
Cash 85,400
Accounts Receivable 85,400
(Collections on accounts receivable during the year.)
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,700 of direct materials and used $4,200 of direct labor. The job was not finished by the end of September, but needed an additional $3,200 of direct materials and additional direct labor of $6,700 to finish the job in October. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost incurred. What is the total cost of the job when it is completed in October
Answer:
See below
Explanation: