Answer:
Gravure Graphics International
General Journal:
Jan 2, 2015:
Debit Storage Shed $87,000
Credit Cash Account $87,000
To record the purchase of storage shed components.
Jan 3, 2015:
Debit Storage Shed $3,000
Credit Cash Account $3,000
To record the payment for shed erection.
April 1, 2015:
Debit Pickup Truck $39,000
Credit Cash Account $39,000
To record the purchase of a pickup Truck
May 13, 2015:
Debit Truck Repair Expense $400
Credit Cash Account $400
To record the payment for repairs.
July 1, 2015:
Debit Patent Rights $28,000
Credit Cash Account $28,000
To record the purchase of patent rights.
Dec. 31, 2015:
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Depreciation Expense - Pickup Truck $5,250
Credit Accumulated Depreciation - Pickup Truck $5,250
To record the depreciation expense for the 9 months.
Debit Impairment Expense - Patent Rights $2,800
Credit Accumulated Impairment- Patent Rights $2,800
To record the impairment expense for the 6 months.
June 30, 2106:
Debit Depreciation Expense- Pickup Truck $3,500
Credit Accumulated Depreciation- Pickup Truck $3,500
To record depreciation expense for the half year.
Debit Accumulated Depreciation - Pickup Truck $8,750
Credit Sale of Truck $8,750
To transfer the balance to Sale of Truck.
Debit Sale of Truck $39,000
Credit Pickup Truck $39,000
To record the transfer to Sale of Truck.
Debit Cash Account $33,000
Credit Sale of Truck $33,000
To record the sale of the pickup truck for cash.
Dec. 31, 2016
Debit Sale of Truck $2,750
Credit Gain on Sale of Truck $2,750
To record the gain on sale of truck.
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Impairment Expense - Patent Rights $25,200
Credit Accumulated Impairment- Patent Rights $25,200
To write down the book value to zero.
Explanation:
a) Depreciation / Impairment Expenses:
1) Storage Shed = $8,400 ($87,000 + 3,000 - 6,000) / 10
2) Pickup Truck = $7,000 ($39,000 - 4,000) / 5
for 2015 = $5,250 ($7,000 x 9/12)
3) Patent Rights = $5,600 ($28,000/5)
for 2015 = $5,600 /2 = $2,800
4) Truck for 2016: $7,000/2 = $3,500
5) Depreciation is an accounting method for expensing the cost of a fixed asset over its useful life. It is based on estimate and there are many methods for estimating the depreciation expense for the various fixed assets.
6) Impairment is like depreciation as a method for expensing cost of an asset. The difference is that while depreciation is used for tangible non-current assets, impairment is for intangible non-current assets. Another difference is that impairment is determined at the end of the period when the asset is checked for impairment based on fair value.
In years fair, you want to emphasize preventive health care. You found that a few employees take advantage of preventive health care options provided by the company. Which of the following statements is most likely to encourage employees to take action?
Answer: C. Feel better in less than 30 days and focus on your long-term wellness. This presentation will show you the many cost-free preventative health care options available to you that make a difference now and in the future.
Explanation:
Here are the options for the question:
A. Most people don't take action until it's too late. This presentation will show you the many preventative health care options available to you that have lasting and positive impacts now and in the future.
B. Most people don't take action until it's too late. This presentation will show you the many preventative health care options that help you avoid health crises now and in the future.
C. Feel better in less than 30 days and focus on your long-term wellness. This presentation will show you the many cost-free preventative health care options available to you that make a difference now and in the future.
From the question, we are informed that for a fair, emphasis want to be placed on preventive health care as it is found that only few employees take advantage of preventive health care that the company provides.
The most likely option that will encourage the workers to take action is option C "Feel better in less than 30 days and focus on your long-term wellness. This presentation will show you the many cost-free preventative health care options available to you that make a difference now and in the future".
The message conveyed in option C is simple and focus on different cost-free preventative health care options available and also on the short term impact and long term impact on one's health.
On January 1, 2014, Brenner Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 Brenner Company has a calendar year end. The entry for the receipt of interest on January 1, 2015 is
Answer:
Dr Cash 30
Cr Interest revenue 30
Explanation:
Preparation of te entry for the receipt of interest on January 1, 2015 for Brenner Company
Since we were told that On January 1, 2014, Brenner Company was said to have purchased at a face value, the amount of $1,000 with 6% bond that pays the interest in January 1 this means we have to record the transaction by Debiting Cash with $30 and Crediting Interest revenue with the same amount. The $30 is been calculated as:
1,000 *.06 *1/2 =$30
Therefore the entry for the receipt of interest on January 1, 2015 is:
Dr Cash 30
Cr Interest revenue 30
Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 12%. If Scampini has 65 million shares of stock outstanding, what is the stock's value per share
Answer:
$21.37
Explanation:
Firm value = FCF1 / (WACC – g)
Firm value = $125,000,000/(0.12 – 0.03)
Firm value = $1,388,888,888.89
Equity value per share = Equity value / Shares outstanding
Equity value per share = $1,388,888,888.89 / 65,000,000
Equity value per share = $21.37
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract and by another 2 percent in the third year. The CPI is 1.00 in the first year, 1.09 in the second year, and 1.15 in the third year. What dollar wage must be paid in the third year
Answer:
$17.9469
Explanation:
Calculation for what dollar wage must be paid in the third year
Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.
The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.
In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.
Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).
Therefore what dollar wage must be paid in the third year will be $17.9469
The dollar wage to be paid in the third year based on the labor contract is $17.95 per hour.
Data and Calculations:First-year wage per hour = $15
Increase in real wage in the second year = 2%
Increase in real wage in the third year = 2%
First year's CPI = 1.00
Second year's CPI = 1.09
Third year's CPI = 1.15
What is CPI?The Consumer Price Index (CPI) measures the weighted average prices of a basket of consumer goods and services in the United States, considering its general economic inflation. The labor contract raises the real wage by 2% in the second and third years. The CPI of year three is applied in computing the real wage to account for the effect of inflation.
Thus, the dollar wage that must be paid in the third year based on the labor contract is $17.95 per hour ($15 x 1.02 x 1.02 x 1.15).
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Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes.
Carrying Value Fair Value
December 31,2014 54,000 54,000
December 31,2015 44,000 42,500
December 31,2016 36,000 38,000
A. Prepare the journal entry at December 31 (Fallen's year end) for 2014, 2015, and 2016 to record the fair value option for these notes.B. At what amount will the note be reported on Fallen's 2015 balance sheet?C. What is the effect of recording the fair value option on these notes on Fallen's 2016 income?D. Assuming that general market interest rates have been stable ove the period, does the fair value data for the notes indicate that Fallen's credit-worthiness has improved or declined in 2016? Explain.
Answer:
A) Journal entries
Date Account Titles Debit Credit
Dec 31, 2014 No Journal Entry
Dec 31,2015 Notes Payable $1,500
(44,000 – 42,500)
Unrealized Holding Gain/Loss $1,500
(Net Income)
Dec 31,2016 Unrealized Holding Gain/Loss $3,500
(Net Income)
Notes Payable $3,500
(38,000 – 36,000 + 1,500)
B) The note will be reported at the fair value of notes payable as on 31 December 2015. Therefore, the note will get reported at $42,500 in the Fallen's 2015 balance sheet.
C) Fallen's 2016 net income will get reduced by $3,500 (refer to journal entry 3) as any change in fair value will be reported as an adjustment to the net income for the respective year.
D) Since, the general market interest rates have been stable over the period and similar risk investment in the year 2016, the changes in fair value indicate that Fallen's creditworthiness has improved.
You are given a loan on which interest is charged over a 4-year period, as follows: an effective rate of discount of 6% for first year; a nominal rate of discount of 5% compounded every 2 years for the second year; a nominal rate of interest of 5% compounded semiannually for the third year; and a force of interest of 5% for the fourth year. Calculate the annual effective rate of interest over the 4-year period.
Answer:
The annual effective rate of interest over the 4-year period is 0.0549
Explanation:
In order to calculate the annual effective rate of interest over the 4-year period we would have to make the following calculation:
(1+i)∧4=(1-nominal rate discount)∧-1*(1-nominal rate discount/1/2)∧-1/2*(1+nominal rate discount/2)∧e∧0.05
(1+i)∧4=(1-0.06)∧-1*(1-0.05/1/2)∧-1/2*(1+0.05/2)∧e∧0.05
(1+i)∧4=1.2385
Therefore, if (1+i)∧4=1.2385, i=0.0549
The annual effective rate of interest over the 4-year period is 0.0549
g Last year, Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million. Based on this information, Adventure reported:
Answer:
The answer is ' a profit of $14 million
Explanation:
Revenue = $24 million
Total expenses = $10 million
Profit(loss) = Revenue minus total expenses
$24 million - $10 million
Profit = $14 million.
It is a profit because revenue is greater than total expenses. Adventure Enterprises will report a loss if reported total expenses was greater than reported revenue
According to ComScore's U.S. total video report, which of the following statements is TRUE? Group of answer choices Younger audiences are more likely to consume news content on smartphones than traditional news platforms. Millennials are less likely to watch TV from an internetconnected TV device (e.g. Roku, Apple TV, Google Chromecast) as well as via a gaming console (e.g. Xbox, PlayStation, etc.) or Blu-Ray Player. Millennials spend one-third of their original TV series consumption time watching on digital platforms, with computers driving the majority of that activity. Generally speaking, the younger the viewer the greater percentage of time spent watching on "traditional" TV sets.
Answer: Millennials spend one-third of their original TV series consumption time watching on digital platforms, with computers driving the majority of that activity.
Explanation:
The report showed that Millennials who are loosely defined as those who were born between the years 1981 and 1996, preferred to watch TV series on digital platforms and when they do watch TV, they do it time-shifted or with a computer connected to the Television and simply projecting what the computer is showing.
This trend by Millennials towards digital platforms was put down to the Millennials' need to watch videos on their own time and these digital platforms offer that by simply putting videos there and leaving you to click on them whenever you want.
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in Treasury bills
Answer:
66.67 %
Explanation:
The computation of the percentage of the portfolio should be invested in Treasury bills is shown below:-
Let us assume beta be x
So the equation would be
Percentage of portfolio = x × (Beta of stock) + (1 - x) × (Beta of T - Bills) - 1
= x × (1.5) + (1 - x) × (Beta of T - Bills) - 1
1.5x + (1 - x) × (Beta of T - Bills) - 1
1.5x + 0 = 1
x = 1 ÷ 1.5
= 0.67
or
= 66.67%
why should you always double check the citation generated using a citation generator
What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence of protected class members
Answer: steering
Explanation:
Steering is an illegal practice whereby people that are looking for homes are channeled towards particular areas based on their social status or race.
In such scenarios, the choice of the person looking for a home is being influenced by the person's gender, color, race, status, religion, disability, or national origin.
TRUE OR FALSE PLEASE FOR BRAINLIEST ANSWER The doctrine of Respondeat Superior states that a principal must indemnify (reimburse) the agent for out of pocket expenses incurred even when the agent detours to satisfy a personal need.
Answer:
False
Explanation:
Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a credit balance of $400. The allowance method is used. What is the net realizable value of Accounts Receivable after a $150 account receivable is written off
Answer:
Net realizable value of accounts receivable is $5,600
Explanation:
Balance in allowance for uncollectible account = Balance before write off - Account written off
= $400 - $150
= $250
Net realizable value of accounts receivable is therefore;
Accounts receivable balance
$6,000
Less: Account written off
$150
Balance after write off
$5,850
Less : Allowance for uncollectible account
$250
Net realizable value
$5,600
You have the following information for Bridgeport Corp. for the month ended October 31, 2017. Bridgeport Corp. uses a periodic method for inventory.
Date Description Units Unit Cost or Selling Price
Oct. 1 Beginning inventory 60 $24
Oct. 9 Purchase 125 26
Oct. 11 Sale 107 37
Oct. 17 Purchase 94 27
Oct. 22 Sale 64 42
Oct. 25 Purchase 71 29
Oct. 29 Sale 104 42
Required:
a. Calculate the weighted-average cost.
b. Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.
1. LIFO
2. FIFO
3. Avergae Cost
Answer:
Bridgeport Corp.
a. Weighted-average cost:
Weighted average cost = Cost of goods available for sale = $9,287
b. Ending inventory, cost of goods sold, gross profit under:
1. LIFO:
a) Ending Inventory = 75 units
Oct. 1 Beginning inventory 60 at $24 = $1,440
Oct. 9 Purchase 15 at $26 = 390
Total 75 = $1,830
b) Cost of goods sold = Cost of goods available for sale minus the ending inventory
= $9,287 - $1,830
= $7,457
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,457
= $3,558
2. FIFO:
a) Ending Inventory = 75 units
Oct. 17 Purchase 4 at $27 = $108
Oct. 25 Purchase 71 at $29 = 2,059
Ending Inventory 75 $2,167
b) Cost of goods sold = Cost of goods available for minus Ending Inventory
= $9,287 - $2,167
= $7,120
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,120
= $3,895
3. Average Cost:
a) Ending Inventory = 75 units
= Ending Inventory units x Weighted-Average cost
= 75 x $26.53 = $1,989.75
b) Cost of goods sold = units sold x weighted-average cost
= 275 x $26.53
= $7,295.75
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,295.75
= $3,719.25
Explanation:
a) Data and calculations:
Date Description Units Unit Cost Selling Price Total
Oct. 1 Beginning inventory 60 $24 $1,440
Oct. 9 Purchase 125 26 3,250
Oct. 11 Sale (107) $37 $3,959
Oct. 17 Purchase 94 27 2,538
Oct. 22 Sale (64) 42 2,688
Oct. 25 Purchase 71 29 2,059
Oct. 29 Sale (104) 42 4,368
Total 350 (275) $9,287 $11,015
Ending inventory in units = 350 - 275 = 75
Weighted average cost = $9,287
Weighted average cost per unit = $9,287/350 = $26.53
b) The LIFO is the Last-in, First-Out method of inventory costing which assumes that units bought last are the units to be sold first.
c) FIFO means the First-in, First-Out method of inventory costing. This takes the assumption that units bought first are the units to be sold first in that chronological order.
d) Weighted average method of inventory costing takes the weighted average cost and uses this to value the ending inventory and the cost of goods sold.
e) The periodic inventory system does not alter the value of inventory until at the end of the accounting period when the inventory count is done, reconciled, and valued.
Which of the following represented a business unit that shows rapid growth but poor profit margins?
a. Star.
b. Cash cow.
c. Problem child.
d. Loss leader.
e. Dog.
Answer:
Option B
Explanation:
In simple words, A cash cow refers to one of the 4 dimensions (quadrants) throughout the growth-share vector, BCG matrix describing a business, line of products, or enterprise with significant market share inside a mature field.
A cash cow is described as a reference to a company, commodity, or asset that will generate continuous investment returns throughout its lifetime until it is purchased and paying off.
The term refers to a company that is equally low-maintenance too. Modern days cash cows need minimal capital investment to have consistently sufficient cash flow that can be distributed within a company to other departments. They 're lower - risk projects, potentially high profits.
Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE. Group of answer choices 500; 10 5,000; 23 100,000; 50 10,000; 30 1,000; 5
Answer:
10,000; 30.
Explanation:
Block transactions is also known as block trade and can be defined as transactions that deals with the sales or purchases of high-volume or large amounts of securities (bond or equity).
Under block transactions, securities are usually negotiated privately and traded at an agreed price rate between the buyer and the trader. Also, block trade of a security is mostly executed by the parties outside of the open market so as to mitigate the impact on its rate.
Basically, block transactions are transactions for more than 10,000 shares, and they account for about 30 percent of all trading on the New York Stock Exchange (NYSE). Generally, a block trade as defined by the New York Stock Exchange (NYSE) is one having a total market value of $200,000 or more.
The New York Stock Exchange (NYSE) is an American stock exchange founded on the 17th of May, 1792. NYSE by virtue of its market capitalization, is the world's largest stock exchange.
Explain how you would determine the company’s contribution margin and contribution margin percent. In your initial post include the following:
a. Identify which specific variables should be included in the calculation.
b. Illustrate your explanation by calculating the contribution margin and contribution margin percent using hypothetical values.
c. Explain what your calculated results tell you about the company’s sales and cost structure
Answer:
a. Identify which specific variables should be included in the calculation.
In order to calculate contribution margin and contribution margin percentage we need the following:
total net sales revenue = total sales - sales discounts - sales returns and allowancestotal variable costsb. Illustrate your explanation by calculating the contribution margin and contribution margin percent using hypothetical values.
total net sales = $1,000,000
total variable costs = $750,000
contribution margin = $1,000,000 - $750,000 = $250,000
contribution margin % = $250,000 / $1,000,000 = 25%
c. Explain what your calculated results tell you about the company’s sales and cost structure
The higher the contribution margin, the more money the company has to cover fixed costs and generate profit. Generally the higher the contribution margin, the better.
In this case, a 25% contribution margin would be considered low, but it all depends on the fixed costs of the company. The larger the fixed costs, the more a company needs to have high contribution margins.
Below is a list of activities for Jayhawk Corporation. Required: Select from the activities of Jayhawk Corporation whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity. The first item is provided as an example.
Transaction Assets = Liabilities+ Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect+ Increase
2. Purchase business supplies on account. = +
3. Pay for legal services for the current month. = +
4. Provide services to customers on account. = +
5. Pay employee salaries for the current month. = +
6. Provide services to customers for cash. = +
7. Pay for advertising for the current month. = +
8. Repay loan from the bank. = +
9. Pay dividends to stockholders. = +
10. Receive cash from customers in (4) above. = +
11. Pay for supplies purchased in (2) above. = +
Answer:
Jayhawk Corporation
Transaction Assets = Liabilities Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
Explanation:
The accounting equation states that Assets are equal to Liabilities Plus Equity. This equation remains true for every business transaction, which affects two accounts on either side of the equation. This keeps the equation in equilibrium or balance with each given transaction. It is from this equation that the double entry system of accounting was developed and is based.
The impact whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity is explained below:
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
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When you read a case, you should:
Multiple Choice
Find the facts, look for the issue, critically think about the issue, and determine if your reasoning matches the reasoning of the judge.
Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning of the judge in light of the facts of the case.
Consider the truth of the facts of the case, identify legal questions raised, review the decision of the judge, and determine if the judge's decision was
justified by the rule of law.
Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical
thinking to the judge's reasoning.
Identify the facts, apply critical thinking skills to determine the truths of the facts, and identify how the judge interpreted the facts in the case.
Answer: Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical thinking to the judge's reasoning.
Explanation:
When reading cases, one must first get acquainted with the facts of the case so look for them first. From this you can be able to look for the issue in question.
After this then read the Judge's conclusion as well as the Judge's reason for concluding the case as such. The Judge will base their ruling on rules of law so you should locate those laws as well as others that you think might be relevant and then finally apply critical thinking to the Judge's decision to see if the Judge interpreted and applied the law as it should have been.
The following is the adjusted trial balance of Wilson Trucking Company.
Account Title Debit Credit
Cash $8,000
Accounts receivable 17,500
Office supplies 3,000
Trucks 172,000
Accumulated
depreciation—Trucks $36,000
Land 85,000
Accounts payable 12,000
Interest payable 4,000
Long-term notes payable 53,000
Common stock 20,000
Retained earnings 155,000
Dividends 20,000
Trucking fees earned 130,000
Depreciation
expense—Trucks 23,500
Salaries expense 61,000
Office supplies expense 8,000
Repairs expense—Trucks12,000
Totals $410,000 $410,000
The Retained Earnings account balance is $155,000 at December 31, 2016.
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of retained earnings for the year ended December 31, 2017.
Answer:
1. Wilson Trucking Company
Income Statement
Revenues:
Trucking fees earned $130,000
Expenses:
Depreciation expense - Trucks $23,500
Salaries expense $61,000
Office Supplies expense $8,000
Repairs Expense - Trucks $12,000
Total Expenses $104,500
Net Income $25,500
2. Statement of Retained earnings
Beginning balance 1 Jan 17 $155,000
Add: Net Income $25,500
Less: Dividends $20,000
Ending Balance 31 Dec 2017 $160,500
Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $6,400 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit? Multiple Choice Debit Cash $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Cash $6,400; credit Sales $6,400. Debit Cash $6,560; credit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,400; credit Sales $6,400.
Answer:Debit Cash $6,240; debit Credit Card Expense $160
Explanation:
Working
6,400 x 2.5% = $160 as the credit card expense
Credit sales - credit card expense= Cash
6400 - 160 = $6,240 --- cash
Account Debit Credit
Cash $6,240
Credit Card Expense $160
Credit Sales $6,400
_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.
Answer:
Garnishment
Explanation:
Garnishment refers to an order in which a person directs a third party with respect to seize assets i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out
In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered
Rhiannon Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, a par value of $1,000, and a current price of $1,057. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
The coupon rate be on these bonds is 8%
Explanation:
The coupon payment is the periodic payment made using the coupon rate and face value of the bond.
Use follwing formula to calculate the coupon payment
Price of the bond = C x ( 1 - ( 1 + r )^-n / r ) + F / ( 1 + r )^n
r = YTM = 7.3% /2 = 3.65%
n = numbers of periods = 12.5 years x 2 = 25 periods
F = Face value = $1,000
Price of the bond = $1,057
C = ?
$1,057 = C x ( 1 - ( 1 + 3.65% )^-25 / 3.65% ) + $1,000 / ( 1 + 3.65% )^25
$1,057 = C x 16.22 + $408.10
$1,057 - 408.10 = C x 16.22
648.90 / 16.22 = C
C = $40 semiannually
C = $40 x 2 = $80 annually
Coupon rate = $80 / $1,000 = 0.08 = 8%
Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm could sell, at par, $100 preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. Rollins' beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find rs. The firm's marginal tax rate is 40 percent. What is Rollins' cost of preferred stock? Select one: a. 10.0% b. 11.0% c. 12.0% d. 12.6% e. 13.2%
Answer:
d. 12.6%
Explanation:
Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued
Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%
Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.
Answer:
d. 12.6
Explanation:
Exhibit 27-5 Units of Labor Quantity of Output Marginal Revenue 0 0 $6 1 100 6 2 180 6 3 250 6 4 310 6 5 330 6 Refer to Exhibit 27-5. The marginal revenue product of the second unit of labor is
Answer:
$480
Explanation:
marginal revenue is the increase in revenue as a result of selling one extra unit of output.
(180 - 100)x $6 = $480
please find attached a clear image of Exhibit 27-5
A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement. The stock rises to $80 per share on the next day and then falls to $60 per share on the day after. The account will now show:
Answer:
Account Balance in margin account:
Investment = $6,000 (100 x $60)
The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day. It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after. This cancels the earlier unrealized gain.
Explanation:
The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account. According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."
Mannisto, Inc., uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $244,087 and average assets of $1,550,550. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $44,110 more than under FIFO, and its average assets would have been $40,630 less than under FIFO.
a) Calculate the firm's ROA under each cost flow assumption.
b) Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $288,567 and $1,880,970, respectively. If LIFO had been used through the years, inventory values would have been $45,690 less than under FIFO, and current year cost of goods sold would have been $22,660 less than under FIFO. Calculate the firm's ROA under each cost flow assumption.
Answer and Explanation:
a. The solution of return on assets under each cost flow is described below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $244,087 ÷ $1,550,550
= 15.7%
Return on assets under LIFO = Net income ÷ Average total assets
= ($244,087 - $44,110) ÷ ($1,550,550 - $40,630)
= $199,977 ÷ $1,509,920
= 13.2%
b. The computation of return on assets under each cost flow is shown below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $288,567 ÷ $1,880,970
= 15.3%
Return on assets under LIFO = Net income ÷ Average total assets
= ($288,567 + $22,660) ÷ ($1,880,970 - $45,690)
= $311,227 ÷ $1,835,280
= 17%
When Steve is talking about his communications with employees, he says, "I constantly check in." The information Steve gets from employees during these check-ins is an example of
Answer:
Upward communication
Explanation:
Based on this information it can be said that this is an example of Upward communication. This is a form of communication that encourages employees to communicate directly with their upper management in order to create a sense of importance in employees as they begin to realize that the upper management cares about their thoughts and input. Which is what Steve is cultivating by having regular check-ins
Determine the market price that Firm A receives for its product. Assume the price is constant because the firm is a price taker in a perfectly competitive market.
Answer: $28
Explanation:
In a Perfectly Competitive Market, firms are price takers in that the price is set by the market. As a result, the Price is equal to the Average Revenue as well as the Marginal Revenue. P = AR = MR
In the table, the Marginal Revenue (increase in revenue when an additional unit is sold) is $28 for all quantities and the Average Revenue at the fifth (and all units) is;
= 140/5
= $28
With both the Average and Marginal Revenues being $28, the price that Firm A receives is $28 as well.
A firm sells peanuts in a perfectly competitive market. Upon increasing production output from 60 packages to 75 packages, the total revenue increased from $300 to $375. What was the marginal revenue of this increase in production?
Answer:
$75
Explanation:
A perfect competition is characterised 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.
The price per unit = $300 / 60 = $5
The marginal revenue for one unit is $5
Production increased by 15 units, so marginal revenue increased by $5 × 15 = $75
I hope my answer helps you