Answer:
None of the above
Explanation:
Given the situation described above in the question and considering the available options, the right answer to
-The effect of this transaction in the basic accounting equation is that "the account payable decreases and the cash increases"
This answer is not part of the available option. Hence, the correct answer is "None of the above"
Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18.56 trillion Be sure to put your answer in percentage form, and round answers to two decimal places. a. Calculate the output gap for 2017. % b. Calculate the output gap for 2018. % c. From 2017 to 2018, the output gap became more .
Answer:
a. Output gap for 2017 = –0.66%
b. Output gap for 2018 = 0.27%
c. From 2017 to 2018, the output gap became more positive.
Explanation:
The following are given in the question:
Year Potential GDP Real GDP
2017 $18.17 trillion $18.05 trillion
2018 $18.51 trillion $18.56 trillion
To calculate output gap in percentage form, the following formula is used:
Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)
Therefore, we have:
a. Calculate the output gap for 2017. %
Using equation (1), we have:
Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%
b. Calculate the output gap for 2018. %
Using equation (1), we have:
Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%
c. From 2017 to 2018, the output gap became more .
Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $23 per unit. The company’s monthly fixed expense is $9,500. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Answer:
Results are below.
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 9,500 / (28 - 23)
Break-even point in units= 1,900 units
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 9,500 / (5 / 28)
Break-even point (dollars)= $53,200
Finally, the fixed costs increase to $10,100:
Break-even point in units= 10,100 / 5
Break-even point in units= 2,020 units
Break-even point (dollars)= 10,100 / (5/28)
Break-even point (dollars)= $56,560
Hoffman Corporation issued $60 million of 9%, 15-year bonds at 106. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $63,600,000
Cr Premium on Bonds $3,600,000
Cr Bonds payable $60,000,000
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
Dr Cash $63,600,000
(106%*$60,000,000)
Cr Premium on Bonds $3,600,000
($63,600,000-$60,000,000)
Cr Bonds payable $60,000,000
(To record issuance of the bonds)
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020
Answer:
Selling and administrative expense budget for 6 months = $144,300
Explanation:
Note: See the attached excel for the selling and administrative expense budget.
From the attached excel file, we have:
Quarter 1 total cost = $70,720
Quarter 2 total cost = $73,580
Selling and administrative expense budget for 6 months = Six months total cost = Quarter 1 total cost + Quarter 2 total cost = $70,720 + $73,580 = $144,300
he Dimitrios Company records the following transactions during September 2018: Cash sales to customers totaling $5,800. Sales to customers on credit cards totaling $18,800. The average credit card fee is 3.0%. The company collects all cash due from the credit card companies. A $2,000 sale on account to a long-time customer with terms of 2/10, n/30. The sale is made on September 5. The customer pays the invoice on September 14. A customer returns product they had purchased last month for $500. Dimitrios accepts the return and gives the customer a cash refund. Calculate the following amounts: Service charge expense for credit card sales Sales discount (contra-revenue) for sales on account Sales returns (contra-revenue) Gross sales revenue Net sales revenue Net cash collected from sales
Answer:
The Dimitrios Company
Service charge expense for credit card sales = $564 ($18,800 * 3%)
Sales discount (contra-revenue) for sales on account = $40 ($2,000 * 2%)
Sales returns (contra-revenue) - $500
Gross sales revenue:
Cash $5,800
Cards $18,800
Accounts receivable $2,000
Total = $26,600
Net sales revenue = $26,100 ($26,600 - $500)
Net cash collected from sales:
Cash Sales $5,800
Card Sales $18,800
Accounts Receivable $2,000
Less: Card Fees $564
Cash Discounts $40
Cash Refund $500
Net cash = $ 25,496
Explanation:
a) Data and Analysis:
Sept. 2018:
Cash $5,800 Sales Revenue $5,800
Credit Cards Receivable $18,800 Sales Revenue $18,800
Credit Card Fee Expense $ 564 Cash $564
Cash $18,800 Credit Cards Receivable $18,800
Accounts Receivable $2,000 Sales Revenue $2,000, terms of 2/10, n/30.
Cash $1,960 Cash Discounts $40 Accounts Receivable $2,000
Sales Returns $500 Cash $500
Patterson and Clay Companies both use cost-plus pricing formulas and arrived at a selling price of $1,000 for the same product. Patterson uses absorption manufacturing cost as the basis for computing its dollar markup whereas Clay uses total cost. Which of the following choices correctly denotes the company that would have (1) the higher cost basis for deriving its dollar markup and (2) the higher markup percentage?
Cost Basis Patterson Patterson Clay Clay More information is needed to judge Markup Percentage Patterson Clay Patterson Clay More information is needed to judge
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer:
Patterson and Clay Companies
1. Higher cost basis for marking up is:
= Clay Company
2. Higher markup percentage is:
= Patterson Company
Explanation:
a) Data and Analysis:
Costing formulas:
Patterson:
Absorption manufacturing cost
Markup = Higher markup rate
Selling price $1,000
Clay:
Total cost = Higher cost basis for marking up
Markup
Selling price $1,000
b) Total cost is higher than total manufacturing costs. It includes more than the total manufacturing costs. Absorption manufacturing costs only include the variable manufacturing costs and fixed manufacturing overhead costs. Total costs include all the absorption costs and other selling, administrative, and distribution costs.
A manufacturer has an estimated practical capacity of 90,000 machine hours, and each unit requires two machine hours. The following data apply to a recent accounting period: Actual variable overhead$ 240,000 Actual fixed overhead$ 442,000 Actual machine hours worked 88,000 Actual finished units produced 42,000 Budgeted variable overhead at 90,000 machine hours$ 200,000 Budgeted fixed overhead$ 450,000 Of the following factors, the manufacturer's production volume variance is most likely to have been caused by: A. A wage hike granted to a production supervisor. B. A newly imposed initiative to reduce finished goods inventory levels. C. Acceptance of an unexpected sales order. D. Temporary employment of workers with lower skill levels than originally anticipated.
Answer:
Of the following factors, the manufacturer's production volume variance is most likely to have been caused by:
D. Temporary employment of workers with lower skill levels than originally anticipated.
Explanation:
a) Data and Calculations:
Estimated practical capacity = 90,000 machine hours
Machine hours per unit = 2
Estimated production units based on capacity = 45,000 (90,000/2)
Budgeted Actual
Variable overhead = $200,000 $240,000
Actual fixed overhead = $450,000 $442,000
Machine hours 90,000 88,000
Units produced 45,000 42,000
Estimated units to be produced based on standard machine hour
= 44,000 units (88,000/2)
Variance between standard units to be produced and actual = 2,000 (44,000 - 42,000) Unfavorable
Customer: An entity that describes a customer. An instance occurs for unique customers only using name, date of birth, and login name as customer_id primary key.
Online: An entity that describes a customer purchasing activity online. An instance occurs when the customer completes the transaction. Customers can purchase more than once.
Visits: An entity that describes a customer purchase in a physical store. An instance occurs if a customer makes or purchase or checks-in using an app. Customers can visit more than once per day.
Satisfaction: An entity that represents data from a recent customer satisfaction survey. An instance occurs when a customer takes the survey. A customer is tracked by login name and can only take the survey one time.
Use the information to match the following relationships. Answers can be reused more than once.
1. The relationship between Customer and Online.
2. The relationship between Customer and Satisfaction.
3. The relationship between Online and Visits.
4. The relationship between Visits and Satisfaction
A. prototype
B. one-to-one
C. Zero-sum
D. one-to-many
E. TOO many F. many-to-many.
Answer:
1. The relationship between customer and Online - One to one
2. The relationship between customer and Satisfaction - One to many
3. The relationship between online and visits - Many to many
4. The relationship between Visits and satisfaction - Prototype
Explanation:
The relation ship with customer is often one to one. The customers are required to fill the satisfaction surveys which enable the business to understand their value in the eyes of its customers and try to improve their level of service to their customers. The customer satisfaction is important for any business as the satisfied customer may bring more customers.
Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $23,000 in 2021. How much of the $23,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders
Answer:
the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
Explanation:
The computation of the dividend paid to preferred stockholders and paid to common stockholders is shown below:
For preferred stockholders
= (2,000 × 7% × $50) × 3 years (2019,2020 and 2021)
= $7,000 × 3 years
= $21,000
And, for common stockholders
= $23,000 - $21,000
= $2,000
Hence, the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
each time mayberry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size. what is the learning curve percentage, assuming the incremental unit time learning model
Answer:
Learning percentage = 1.6%
Explanation:
Given - Each time may berry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size.
To find - What is the learning curve percentage, assuming the incremental unit time learning model.
Proof -
First job = 40 hours
Second job = 32 hours
Now,
Job Job hours Cumm. of hours Incremental av. hours
1 40 40 40
2 32 72 64
Learning percentage = [tex]\frac{64}{40}[/tex] = 1.6%
Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $476,000 and $1,650 respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $315,000 and $307,000, respectively, and $1,880 in accounts receivable were written off. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is:
Answer:
$1,345
Explanation:
Calculation to determine what Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is
First step is to calculate the Expense amount
Expense=Credit sales $315,000* .5%
Expense=$1,575
Second step is to calculate the Allowance
Allowance 12/31/2020 $1,650
Less Write-offs(1,880)
Allowance ($ 230)debit
Now let calculate the final balance in its allowance for uncollectible accounts
December 31, 2021 allowance for uncollectible accounts= ($230) + $1,575
December 31, 2021 allowance for uncollectible accounts=$1,345
Therefore Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is $1,345
Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $85,000 Factory foremen salaries: $86,000 Machinery setup costs: $30,000 Total manufacturing overhead: $201,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Allocation Base Estimated Activity Level Factory Utilities Direct labor-hours 14,500 Factory foremen salaries Machine hours 18,850 Setup costs Number of production runs 137 During the current month, the following levels of activities were incurred: Car Seats Strollers Baby Swings Total Direct Labor Costs $ 41,800 $ 71,250 $ 24,700 $ 137,750 Direct Labor Hours 4,400 7,500 2,600 14,500 Machine Hours 5,450 10,000 3,400 18,850 Production Runs 35 62 40 137 Units Produced 1,100 3,000 970 5,070 What are the factory foremen salaries allocated to Car Seats during the current month
Answer: $24865
Explanation:
The factory foremen salaries allocated to car Seats during the current month will be calculated as:
Factory foremen salaries = $86,000
Factory foremen salaries Machine hours = 18,850
Machine Hours for car seats = 5,450
Therefore, the factory foremen salaries allocated to car Seats during the current month will be:
= (86000 / 18850) × 5450
= $24865
Elizabeth (25 years old) studied music education in college and graduated a year ago. She currently works as a music teacher at a year-round private middle school. Her gross pay is $28800 a year, or $2400 a month. After taxes, health insurance, and other paycheck deductions, her net pay is $24600 a year. Based on recommended guidelines, how much money should Elizabeth be saving each month
Based on her gross pay, the amount that Elizabeth should be saving each month is $288.
Recommended savings rateIt is recommended that one saves at least 12% of their gross salary each month to allow them cater for emergencies.
Elizabeth savings per monthHer savings would therefore be:
= Gross monthly pay x 12%
= 2,400 x 12%
= $288
In conclusion, she should save $288.
Find out more on savings at https://brainly.com/question/10473550.
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following transactions to the journal in which it would be entered.
Clear All
Revenue journal Cash receipts journal Purchases journal Cash payments journal General journal Recognized depreciation on the building Journalized the adjusting entry for supplies used during the period Closed the revenue account at the end of the period Received cash from the bank in exchange for a note payable Withdrew cash for personal use (by owner)
Answer:
Matching transactions to the journal in which they would be entered:
Transactions Journal Type
1. Recognized depreciation on the building General Journal
2. Journalized the adjusting entry for supplies
used during the period General Journal
3. Closed the revenue account at the end
of the period General Journal
4. Received cash from the bank in exchange
for a note payable Cash Receipts Journal
5. Withdrew cash for personal use (by owner) Cash Payments Journal
Explanation:
Revenue journal records revenue transactions.
Cash receipts journal records all cash receipts.
Purchases journal records all purchases on account.
Cash payments journal records all cash payments.
General journal is used for all transactions, especially those that cannot be recorded in any of the other specialized journals.
Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs:
April 1 Balances
First Bank $40,000
Reliable Airlines 18,000
Motel 26 33,000
Blue Mountain Beverages 27,000
During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:
Direct Labor Media Purchases
First Bank $115,000 $ 480,000
Reliable Airlines 84,000 320,000
Motel 26 110,000 200,000
Blue Mountain Beverages 125,000 300,000
At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month:
a. Direct labor costs.
b. Media purchases.
c. Overhead applied.
d. Cost of completed First Bank and Reliable Airlines campaigns.
Total Costs
First Bank $
Reliable Airlines $
Answer:
A. $434,000
B. $1,300,000
C. $520,000
D. First bank $827,000
Reliable Airlines $550,000
Explanation:
A. Calculation to determine the Direct labor costs.
Direct Labor
First Bank $115,000
Reliable Airlines 84,000
Motel 26 110,000
Blue Mountain Beverages 125,000
Total $434,000
B. Calculation to determine the Media purchases
Media Purchases
First Bank $ 480,000
Reliable Airlines 320,000
Motel 26 200,000
Blue Mountain Beverages 300,000
Total $1,300,000
C. Calculation to determine the Overhead applied
Overhead applied=$1,300,000*40%
Overhead applied=$520,000
D. Calculation to determine the Total cost for First bank and Reliable Airlines
First bank=$40,000+$115,000+$ 480,000+($ 480,000*40%)
First bank=$40,000+$115,000+$ 480,000+$192,000
First bank=$827,000
Reliable Airlines=$18,000+84,000+320,000+(320,000*40%)
Reliable Airlines=$18,000+84,000+320,000+$128,000
Reliable Airlines=$550,000
Therefore Total cost for is First bank $827,000 and Reliable Airlines is $550,000
n an arm's length channel system where the supplier/steward exerts little direct control over channel intermediaries, the channel steward may have to resort to performing value-adding activities itself, such as TV advertising, consumer promotions, and so on, so that even before the consumer enters the store, she or he is looking only for the supplier's brand. Which promotional strategy does this discussion describe
Answer:
Pull marketing.
Explanation:
Pull marketing has the central objective of promoting products or services to make the customer come to you. For this purpose, various advertising channels are used, such as TV broadcasting, promotions, social media ads, etc., in order to promote a brand and thus attract consumers.
In this marketing strategy, the company seeks customer loyalty through targeting the brand, whose advertising will have great incentives to purchase the product when declaring its central benefits and how they can add to the consumer's life.
Which of the followings are true or false.
a. Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
b. Regional trade agreements contradict GATTâs most favored nation principle.
c. Each NAFTA member country keeps its own tariffs with the countries outside NAFTA.
d. A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico.
e. Rules of origin specify the types of goods that can be shipped duty-free within a free trade area.
f. Rules of origin specify the types of goods that can be shipped duty-free within a customs union.
Answer:
a. true
b. false
c. true
d. true
e. false
f. true
Explanation:
a. Regional trade agreements encourage free movement of goods and services across the borders of regional bodies.
b. The General Agreements on Tariffs and Trade (GATT) were concluded in Geneva by 23 countries in 1947. The GATT minimized international trade barriers through tariffs and trade regulations.
c. NAFTA means the North American Free Trade Agreement for Canada, Mexico, and the United States. NAFTA eliminated most of the trade tariffs among these three countries. In 2020, it was replaced by the United States-Mexico-Canada Agreement (USMCA).
d. Rules of Origin determines the source of a product because trade duties and restrictions depend on the country of origin of a product.
Outdoor Gear Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October: Variable overhead spending variance $1,300 Unfavorable Variable overhead efficiency variance $182 Unfavorable Budgeted machine hours allowed for actual output 608 machine hours Actual cost per machine hour $28 Budgeted cost per machine hour $26Calculate the variable overhead flexible-budget variance. $1,118 favorable $1,118 unfavorable $1,482 unfavorable $1,482 favorable
Answer:
$1,482 unfavorable
Explanation:
Calculation to determine the variable overhead flexible-budget variance
Using this formula
Variable overhead flexible-budget variance=Variable overhead spending variance Unfavorable + Variable overhead efficiency variance Unfavorable
Let plug in the formula
Variable overhead flexible-budget variance=$1,300 (U) + $182 (U)
Variable overhead flexible-budget variance= $1,482 (U)
Therefore the variable overhead flexible-budget variance is $1,482 unfavorable
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
Wallace Company provides the following data for next year: MonthBudgeted Sales January$ 120,000 February 108,000 March 132,000 April 144,000 The gross profit rate is 35 % of sales. Inventory at the end of December is $ 21,600 and target ending inventory level are 20 % of next month's sales, stated at cost. What is the amount of purchases budget for January
Answer:
$70440
Explanation:
Given data :
Month Budgeted sales
January $120,000
February $108,000
March $132,000
April $144,000
Gross profit rate = 35% of sales
Inventory at end of December = $21600
Target ending inventory level = 20% of next month sales
Determine the amount of purchases budget for January
First step : calculate
Cost of goods for January = Budgeted sales - Gross profit
= $120,000 - $42,000 = $78000
Next : determine ending inventory in January
= 20% * ( Budgeted sales in Feb * 65% )
= 20% * ($108000 * 65%) = $14040
Determine budgeted purchase using the Relation below
Cost of goods sold = Beginning inventory + Budgeted purchases - Ending inventory
78,000 = 21600 + Budgeted purchases - 14040
therefore
Budgeted purchases for January = ( 78,000 + 14040 - 21600 )
= $70440
Many employees say that their managers give them clear and sufficient directions, as well as goals for their work.
True
False
Answer:
True
Explanation:
This is a true statement, as the leader is responsible for managing and directing his team, although there are several different leadership styles, the leader will always be an example of conduct and professionalism for his subordinates, the behavior of every manager should therefore reflect the company's values.
The transformational leadership style can be described as an example of a manager who provides clear and sufficient guidance, as well as goals for carrying out the work, as this leader is the one who, through his energetic and positive personality, contributes to the development of employees and team collaboration, making employees feel valued, motivated and consequently more productive.
Consider the following statements when answering this question I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price. II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price. I is true, and II is false. I and II are true. I is false, and II is true. I and II are false.
Answer:
I and II are true
Explanation:
I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price
In the short run of the competitive industry when the market demand for goods rises then the price of these goods will also increase. This is because the price equals marginal revenue. Therefore, when price rises then marginal revenue will increase and as a result, the marginal cost curve moves up and firms produce more quantity of goods. This statement is therefore true.
II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price
The effect of the increase in goods demand is the same in the long run of the competitive industry as it is in the short run. Therefore, a rise in demand would raise the price of the goods above ATC (Average Total Cost). Hence, the above statement is also true.
What is price discrimination and how do movie theaters and restaurants practice price discrimination?
f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $84,000 book value on that date) to Placid Lake for $118,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the intra-entity transfer
Answer:
Journal 1
Debit : Other Income $34,000
Credit : Equipment $34,000
Journal 2
Debit : Accumulated depreciation $6,800
Credit : depreciation $6,800
Explanation:
Step 1 : Eliminate the Income resulting from sale and the additional value of equipment sitting in the buyer books
Income = Selling Price - Carrying Amount
where,
Carrying Amount = Cost - Accumulated depreciation
= $84,000
therefore,
Income = $118,000 - $84,000 = $34,000
Journal;
Debit : Other Income $34,000
Credit : Equipment $34,000
Step 2 : Eliminate the unrealized profit as a result of additional asset value
unrealized profit = income ÷ remaining useful life
= $34,000 ÷ 5
= $6,800
Journal;
Debit : Accumulated depreciation $6,800
Credit : depreciation $6,800
Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:
a, Cost when acquired $412,500
b. Accumulated depreciation (based on straight-line depreciation, an estimated life of 50 years, and a $37,500 residual value) 60,000
During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change.
Required:
1. Compute the annual depreciation expense prior to the change in estimates.
2. Compute the annual depreciation expense after the change in estimates.
3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Answer:
Yukelson Company
1. The annual depreciation expense prior to the change in estimates is:
= $7,500.
2. The annual depreciation expense after the change in estimates is:
= $13,000.
3. The net effect of changing estimates on the balance sheet, net income, and cash flows for the year:
Balance Sheet:
The accumulated depreciation will increase by $5,500, thus reducing the net book value of the building.
Net Income:
The net income will be reduced by $5,500.
Cash Flows:
No effect on cash flows because depreciation is not a cash flow item. The only adjustment will be when the net income is used to compute the cash flows.
Explanation:
a) Data and Calculations:
Cost Building = $412,500
Estimated residual value = $37,500
Estimated useful life = 50 years
Accumulated depreciation = $60,000
Depreciable amount = $375,000 ($412,500 - $37,500)
Annual depreciation expense = $7,500 ($375,000/50)
Revised residual value = $22,500
Revised useful life = 30 years
Depreciable amount = $390,000 ($412,500 - $22,500)
Annual depreciation expense = $13,000 ($390,000/30)
Pina Company has the following two temporary differences between its income tax expense and income taxes payable.
2020 2021 2022
Pretax financial income $864,000 $917,000 $909,000
Excess depreciation expense on tax return (30,400) (38,500) (9,800 )
Excess warranty expense in financial income 19,400 10,100 8,300
Taxable income $853,000 $888,600 $907,500
The income tax rate for all years is 20%.
a. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019.
b. Indicate how deferred taxes will be reported on the 2019 balance sheet. Martinezâs product warranty is for 12 months.
c. Prepare the income tax expense section of the income statement for 2019, beginning with the line "Pretax financial income."
Answer:
multiply ur answer by 0.2 if you want to solve for the income tax rate
Explanation:
A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29, and rises to $32 before the expiration date. What is the maximum profit per unit to the speculator who owned the put option assuming he or she exercises the option at the ideal time
Answer: - $3
Explanation:
We should note that the holder of a put will gain when the share price is below the exercise price.
Since the gain with regards to the question is ($30 - $29) = $1 and the premium paid is 4, then the maximum profit per unit will be:
= Gain - Premium paid
= $1 - $4
= -$3.
13) Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company’s stock is 12 percent, what will a share of stock sell for today? (4 pts)
Answer:
$61.29
Explanation:
Calculation to determine what will a share of stock sell for today
First step is to calculate the price in Year 3
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Now Let Calculate the price of stock today using the Present Value (PV) of the first three dividends in addition with the Present Value (PV) of the stock price in Year 3:
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore what will a share of stock sell for today is $61.29
PLEASE HELP
Question 6 of 20
Lisa decided to take a walk one Sunday afternoon. During her walk a
neighbor's dog broke away from the leash and attacked Lisa. For months
after the attack, Lisa would not go out of her house because she was so
shaken. Why would Lisa most likely be awarded aggravated damages?
A. Because there were witness to the attack who could prove the
attack was intentional
B. Because the neighbor intentionally let the dog loose to attack her
C. Because she was injured by the dog and had a lot of medical bills
to pay
D. Because the attack traumatized her so much that should couldn't
leave the house
Answer:
D. because (context clues)(process of illumination) let go back to "5th grade" ... first of all there was no witnesses mentioned in the scenario second were do they come off talking about a bill nothing was mentioned about a bill thirdly they said the dog 'broke Loose' so if it was intentional them he would have been at her door step. so that's why its D. and plus she was "traumatize" so that leads into fear and fear leads into staying away. and to be honest shes a idiot for not addressing the situation around the same month, if she was so traumatize by what happened.
Answer:
D. Because the attack traumatized her so much that should couldn't
leave the houseExplanation:
Suppose the economy of the large country of Hendrix is currently experiencing expansion as a result of short run business cycle fluctuations. Hendrix has a trade deficit. The items below are possible effects of this expansion on the trade balance. Please sort them into boxes below as appropriate. If they do not fit into either box (e.g. not likely to occur in an expansion), leave them unsorted.
Likely to occur in an expansion and increase the trade deficit
Likely to occur in an expansion and decrease the trade deficit
private savings decrease domestic private investment increases private savings increase government borrowing decreases imports increase government borrowing increases domestic private investment decreases imports decrease
Answer:
Likely to occur in an expansion and increase the trade deficit.
Domestic private investment increasesImports increaseAs a result of expansion, there is more income in the economy which means that people will be able to invest more. The investment will however lead to more imports as capital goods are acquired. This will therefore increase the trade deficit which is defined as the difference between net exports and net imports.
Likely to occur in an expansion and decrease the trade deficit.
Private savings increaseGovernment borrowing decreasesIn an expansion, people will have more income and so will save more. As a result of them not spending these savings on imports, the trade deficit will go down.
Also with the economy in an expansion, the government would not need to borrow as much money to prop up the economy. This will reduce the trade deficit which includes loans from outside.