Answer:
1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
Dr Cash 450
Cr Accounts receivable 450
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
Dr Equipment 3,200
Cr Office expense 3,200
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
Cr Service revenue 2,025
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
Cr Cash 190
5. The Service Revenue account was totaled at $5,200 instead of $5,280.
Cr Service revenue 80
adjusted trial balancedebit credit
Cash $6,172
Accounts Receivable $4,790
Supplies $2,967
Equipment $9,300
Accounts Payable $7,044
Common Stock $8,000
Retained Earnings $2,000
Service Revenue $7,305
Office Expense $1,120
$24,349 $24,349
Who was the first missionary to arrive in Africa?
Answer:
David Livingstone in 1840.
Hope this helps ; ) Enjoy your day!
Prepare an adjusted trial balance. If an amount
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows:
Debit Balances Credit Balances
11 Cash 13,100
13 Supplies 8,000
14 Prepaid Insurance 7,500
16 Equipment 113,000
17 Accumulated Depreciation—Equipment 12,000
18 Trucks 90,000
19 Accumulated Depreciation—Trucks 27,100
21 Accounts Payable 4,500
31 Jeanne McQuay, Capital 126,400
32 Jeanne McQuay, Drawing 3,000
41 Service Revenue 155,000
51 Wages Expense 72,000
52 Rent Expense 7,600
53 Truck Expense 5,350
59 Miscellaneous Expense 5,450
325,000 325,000
The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.
The data needed to determine year-end adjustments are as follows:
Supplies on hand at January 31 are $2,850.
Insurance premiums expired during the year are $3,150.
Depreciation of equipment during the year is $5,250.
Depreciation of trucks during the year is $4,000.
Wages accrued but not paid at January 31 are $900.
Required:
Journalize the adjusting entries.
Answer:
Recessive Interiors
1. Adjusted Trial Balance
As of January 31, 2019:
Debit Credit
11 Cash $13,100
13 Supplies 2,850
14 Prepaid Insurance 4,350
16 Equipment 113,000
17 Acc. Depreciation—Equipment $17,250
18 Trucks 90,000
19 Accumulated Depreciation—Trucks 31,100
21 Accounts Payable 4,500
22 Wages Payable 900
31 Jeanne McQuay, Capital 126,400
32 Jeanne McQuay, Drawing 3,000
41 Service Revenue 155,000
51 Wages Expense 72,900
52 Rent Expense 7,600
53 Truck Expense 5,350
54 Depreciation-Equipment 5,250
55 Supplies Expense 5,150
56 Depreciation-Trucks 4,000
57 Insurance Expense 3,150
59 Miscellaneous Expense 5,450
$335,150 $335,150
2. Adjusting Journal Entries:
Debit 55 Supplies Expense $5,150
Credit 13 Supplies $5,150
To record the supplies expense for the period.
Debit 57 Insurance Expense $3,150
Credit 14 Prepaid Insurance $3,150
To record insurance expense that has expired.
Debit 54 Depreciation Expense - Equipment $5,250
Credit 17 Accumulated Depreciation-Equipment $5,250
To record depreciation expense for the period.
Debit 56 Depreciation Expense - Trucks $4,000
Credit 19 Accumulated Depreciation-Trucks $4,000
To record depreciation expense for the period.
Debit 51 Wages Expense $900
Debit 22 Wages Payable $900
To accrue unpaid wages expenses.
Explanation:
a) Data and Calculations: Unadjusted Adjustments Adjusted
Debit Credit Debit Credit Debit Credit
11 Cash $13,100 $13,100
13 Supplies 8,000 $5,150 2,850
14 Prepaid Insurance 7,500 3,150 4,350
16 Equipment 113,000 113,000
17 Acc. Depreciation—Equipment 12,000 5,250 17,250
18 Trucks 90,000 90,000
19 Accumulated Depreciation—Trucks 27,100 4,000 31,100
21 Accounts Payable 4,500 4,500
22 Wages Payable 900 900
31 Jeanne McQuay, Capital 126,400 126,400
32 Jeanne McQuay, Drawing 3,000 3,000
41 Service Revenue 155,000 155,000
51 Wages Expense 72,000 900 72,900
52 Rent Expense 7,600 7,600
53 Truck Expense 5,350 5,350
54 Depreciation Expense-Equipment 5,250 5,250
55 Supplies Expense 5,150 5,150
56 Depreciation-Trucks 4,000 4,000
57 Insurance Expense 3,150 3,150
59 Miscellaneous Expense 5,450 5,450
325,000 325,000 18,450 18,450
Which best explains why there are many job opportunities in the Lodging pathway?
O The pathway requires a college education.
O The pathway offers seasonal positions.
O The pathway includes low-paying jobs.
The pathway has a high turnover rate.
Answer:
the pathway includes low-paying jobs.
Explanation:
The pathway has a high turnover rate. Because there are many job opportunities are there, In the lodging pathway.
What is employment?In most cases, employment refers to the status of having a paid job—of being employed. Employing someone is paying them to work. Employees are employed by an employer. Employment can also refer to the act of hiring individuals, as in We're trying to hire more women.
An excessively high turnover rate indicates that more employees than is typical for your industry to have left the company. Depending on the sector you work in, a high turnover rate can mean different things. The anticipated turnover rates fluctuate between industries and nations.
Therefore. The correct option is (D)
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A General Co. bond has a coupon rate of 7 percent and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity
Answer:
6.81 %
Explanation:
The Required Interest Rate (i) is the yield to maturity and this is calculated as :
Pv = - $1,020.50
pmt = $1,000 × 7% = $70
n = 20
p/yr = 1
Fv = $1,000.00
i = ?
Using a Financial Calculator to input the values as shown, the yield to maturity (i) is 6.8094 or 6.81 %.
Mindy Novak is writing a paper and he must determine which of Porter's three generic strategies Beulah’s Boutiques has implemented. Mindy finds out that Beulah’s Boutiques offers specialty products found only in boutiques around the world to affluent customers. What would Mindy determine Beulah’s Boutiques is using as its generic strategy?
Answer:
The answer to this question can be defined as follows:
Explanation:
Mindy Novak writes a report, also determines, whether Beulah's boutiques have adopted Porter's three generic techniques. Mindy discovers Beulah's Boutiques only offer affluent clients premium brands in shops throughout the world, and he determines Mindy, that standard strategy of the boutiques of Beulah, which canister be defined as follows:
High expense, to the broad market Low cost, a narrow market. Low-cost, wide market High cost, narrow market High cost, narrow marketBecause there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the____________________ using by_____________________________ the using___________ and multiplying by 100. However, the CPI reflects only the prices of all goods and services .
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers.
Answer:
1. The GDP deflator for this year is calculated by dividing the Value of all goods and services produced in the economy this year using this year's prices by the Value of all goods and services produced in the economy in the base year using the base year's prices and multiplying by 100.
However, the CPI reflects only the prices of all goods and services bought by consumers.
2. a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers. Affects CPI.
This affects CPI because the CPI reflects only the prices of goods and services purchased by customers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers. Affects GDP Deflator.
This is a good produced in the United States so it will affect the GDP Deflator as that deals with GDP.
Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
The following information is available for Mergenthaler Corporation for the year ended December 31, 2022:
Collection of principal on long-term loan to a supplier $16,000
Acquisition of equipment for cash 10,000
Proceeds from the sale of long-term investment at book value 22,000
Issuance of common stock for cash 20,000
Depreciation expense 25,000
Redemption of bonds payable at carrying (book) value 34,000
Payment of cash dividends 6,000
Net income 30,000
Purchase of land by issuing bonds payable 40,000
In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2022 and 2021:
2021 2022
Cash $148,000 $91,000
Accounts receivable (net) 25,000 15,000
Prepaid insurance 19,000 13,000
Total current assets $192,000 $119,000
Accounts payable $30,000 $19,000
Salaries and wages payable 6,000 7,000
Total current liabilities $36,000 $26,000
Required:
Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method.
Answer:
Cash Flow from Operating Activities Amount$
Net Income 30000
Add Depreciation Expense 25000
Increase in Accounts Payable 11000
Increase in Accounts Receivables -10000
Increase in Prepaid Insurance -6000
Decrease in Salaries and Wages Payable -1000
Net Cash Flow from Operating Activities A 49000
Cash Flow from Investing Activities
Acquisition of Equipment for Cash -10000
Proceeds from Sale of Long-Term Investment 22000
Net Cash Flow from Investing Activities B 12000
Cash Flow from Financing Activities
Redemption of Bonds Payable -34000
Proceeds from Issuance of Common Stock 20000
Payment of Cash Dividends -6000
Collection of Principal on Long-Term Loan 16000
Net Cash Used in Financing Activities C -4000
Opening Cash Balance 91000
Add Increase in Cash (A+B+C) 57000
Closing Cash Balance 148000
Mr Store who runs his photocopy business working 8 hours per day process 100 scripts. He estimates his labour cost to be € 9 per hour. Also he has estimated that the total material cost for each script is approximately € 2; while the daily expenses are €28. Calculate the multifactor productivity. In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink thus raising the mate- rial cost to € 2.5 per day. Is the new productivity better than before? If Mr Store would like to increase the photocopy process to 150 scripts without sacrificing the initial multifactor productivity, by what amount has the material costs to be increased?
Answer:
A) 0.33 scripts per euro
B) The new productivity is worse than the old productivity
C) 0.333 euros per script
Explanation:
number of hours worked per day = 8
number of scripts processed per day = 100
Labor cost per hour = 9 euros
Total labor cost per day = 9 * 8 = 72 euros
material cost per script = 2 euros
Total material cost per day = 2 * 100 = 200 euros
daily expenses = 28 euros
A) Calculate the multifactor productivity
= output / Total cost
Total cost = ( 72 + 200 + 28 ) = 300
= 100 / 300
= 0.33 scripts per euro
B ) compare the old and new productivity
Old productivity = 0.33 scripts / euro
new multifactor productivity
= output / Total cost
Total cost = (8*9)+(150*2.5)+28 = 475
= 150 / 475
= 0.3158 scripts per euro
hence the new productivity is worse than the old productivity
C ) using the initial multifactor productivity of 0.333
calculate the target total cost = output / multifactor of productivity
= 150/0.333
= 450 euros
hence Material cost = (450 - 8*9-28)/150
= 2.33 euro per script
So, the material cost will be increased by = 2.33 euros - 2
euros
= 0.333 euros per script
A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?
Answer:
$2,990
Explanation:
A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.
To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.
Therefore,
Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt
= $2,990
Hence net fixed asset is $2,990
The________ of the message is based on the number of times an average person in the target market is exposed to a message.
Frequency
Quantitative value
Reach
Exposure rate
What was the intrinsic value of SmileWhite Co. stock when the analyst was evaluating the stock (that is in year 2008)
Answer: $28.96
Explanation:
Using the Dividend discount model, the intrinsic value will be a sum of the present values of the dividends in addition to the present value when the dividends become constant.
First use CAPM to calculate the required return
= Risk free rate + Beta * (market return - risk free rate)
= 4.5% + 1.15 * (14.5% - 4.5%)
= 16%
The required return will be used to discount the dividends.
2009 dividends = 1.72 * 1.12 = $1.93
2010 = 1.93 * 1.12 = $2.16
2011 = 2.16 * 1.12 = $2.42
Dividends grow at 9% from 2011
Stock terminal value in 2011 = (2.42 * 1.09) / (16% - 9%) = $37.68
[tex]= \frac{1.93}{1.16} + \frac{2.16}{1.16^{2} } + \frac{2.42}{1.16^{3} } +\frac{37.68}{1.16^{3}}\\\\= 28.959397679[/tex]
= $28.96
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below:
Real rate of return 4 %
Inflation premium 5
Risk premium 4
Total return 13 %
Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 15 years remaining until maturity. Use Appendix B and Appendix D.
Answer:
$1,161.23
since the coupon rate is higher than the market rate, the bonds will be priced at a premium
Explanation:
In order to calculate the current market price of the bonds we can use the yield to maturity formula:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = 11%n = 15 yearscoupon = $130face value = $1,0000.11 = {130 + [(1,000 - market value)/15]} / [1,000 + market value)/2]
0.11 x [1,000 + market value)/2] = 130 + [(1,000 - market value)/15]
0.11 x (500 + 0.5M) = 130 + 66.67 - 0.067M
55 + 0.055M = 196.67 - 0.067M
0.122M = 141.67
M = 141.67 / 0.122 = $1,161.23
With respect to dividends and priority in liquidation, what has priority over common stock? Group of answer choices Treasury Stock Debt Capital Preferred Stock nonconvertible common equity
Answer:
Preferred stock
Explanation:
Preferred stock is a stock that has properties of both stocks and bonds. this is why they are referred to as an hybrid instrument. Preferred stock holders have priority over common shareholders with respect to dividends and liquidation,
Payton Inc. reports in its Year 7 annual report, sales of $6,544 million and cost of goods sold of $2,618 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be:
Answer:
The projected cost of goods sold is $2,763 million
Explanation:
The computation of the projected cost of goods sold for the year 8 is shown below:
The Projected cost of goods sold is
= ($6,544 × 1.03 × ($2,618 ÷ $6,544) + 1%)
= ($6,740 × (0.40 + 1%)
= $6,740 × 0.41
= $2,763 million
Hence, the projected cost of goods sold is $2,763 million
The same is to be considered
Hector was prosecuted following police seizure of 80 pounds of drugs from his airplane. The seizure was held to be unlawful, the evidence was sup- pressed, and the suit against Hector was dismissed. He sued the government officials involved in his arrest and prosecution to recover $3,500 in bail bond expenses, $23,000 in attorney's fees, and $2,000 in travel costs. The district court held he could not recover the costs incurred during the criminal prosecution. Hector appealed. Can he recover the costs? (Hector v. Watt, 235 F.3d 154, 3rd Cir. (2000)]
Answer:
Hector will lose.
Explanation:
If someone suffers an illegal search or seizure, he/she can recover any costs associated with that incident, e.g. property damage, injuries (both physical or to their reputation, lawyers, etc.). But if the illegal search actually results in some criminal evidence being discovered, then you cannot recover any costs. Anything seized illegally will be dismissed, but the reward is not going to jail even if they committed a crime, they get no money back.
Why only ask for a refund of his lawyer's fees, he should also ask for a refund for the value of the drugs? This lawsuit is absolutely ridiculous.
On September 1, 2019, Fast Track, Inc., was started with $25,000 invested by the owners as contributed capital. On September 30, 2019, the accounting records contained the following amounts:
Unearned revenue $ 500
Accounts payable 2,200
Prepaid expenses $ 1,000
Dividends declared 2,300
Accounts receivable 2,200
Office equipment 20,000
Accumulated depreciation 500
Office supplies 1,750
Cash 9,500
Office supplies expense 600
Consulting fees revenue 19,200
Rent expense 2,400
Contributed capital 25,000
Salary expense 6,900
Depreciation expense 500
Telephone expense 250
Required:
Prepare a classified income statement, a statement of retained earnings and a classified balance sheet for the first month of Fast Track’s operation.
Answer:
Fast Track, Inc.
Income Statement
For the year ended December 31, 2019
Revenues:
Consulting fees revenue $19,200
Expenses:
Office supplies expense $600 Rent expense $2,400 Salary expense $6,900 Depreciation expense $500 Telephone expense $250 ($10,650)Net income $8,550
Fast Track, Inc.
Statement of Retained Earnings
For the year ended December 31, 2019
Beginning balance September 1, 2019 $0
Net income $8,550
Subtotal $8,550
Dividends ($2,300)
Ending balance December 31, 2019 $6,250
Fast Track, Inc.
Balance Sheet
For the year ended December 31, 2019
ASSETSCurrent assets
Cash $9,500
Accounts receivable $2,200
Office supplies $1,750
Prepaid expenses $1,000
Total current assets $14,450
Property, plant and equipment
Office equipment $20,000
Accumulated depreciation ($500)
Total P, P & E $19,500
Total assets $33,950
LIABILITIES AND EQUITYCurrent liabilities
Unearned revenue $500
Accounts payable $2,200
Total liabilities $2,700
Equity
Common stock $25,000
Retained earnings $6,250
Total equity $31,250
Total liabilities + equity $33,950
What are the limitations and risks of a marketing strategy that does not contemplate the responses of your competitors
Answer:
Throughout the clarification section following, the definition of the given query is explained.
Explanation:
Right, businesses face fierce competition through competitiveness throughout today's time, because it has become extremely necessary for organizations to develop a marketing campaign that makes companies contemplate consumer response.
After all, if any business marketing plan doesn't somehow anticipate competition reaction, then all these threats can occur:
Someone's brand sales should decline as consumers should choose the brand of their rivals. Your company's market position as well as business growth would decline as well as the brand's rivals will rise. Throughout the life cycle of the product, your company will hit the decline point. Your business's share price could decline.In a large open economy , an investment tax credit raises the real interest rate, __________ the trade balance, and __________ net capital inflow.
Answer:
The correct approach will be "decreases, decreases."
Explanation:
The investment tax incentive helps corporations to exclude a portion of the expense including its investment towards taxes. This raises disposable income unintentionally. This increase in household inflation rate is contributing to something like an increase in the rate of trade.As either the significance of the domestic country's currency, export industries decreasing trend as well as imports rise, resulting throughout a decline throughout the terms of payment. The capital flows grow and indeed the outflow declines even as actual interest rates go up, the decline in net investment output.Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2019, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows:
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000
Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.
Required:
a. Journalize the adjusting entry for merchandise inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.
Answer:
a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:
March 31, 2017, inventory adjustment
Dr Cost of goods sold 2,000
Cr Merchandise inventory 2,000
b) revised income statement
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... $47,000
Gross Profit ........ $70,000
Firms may not include all income taxes for a period on the line for income tax expense in the income statement. Other places that income tax expenses may occur include all of the following except: Select one: a. Extraordinary Items b. Other Comprehensive Income c. Common Stock d. Discontinued Operations
Answer:
Option C
Explanation:
Firms may not include all income taxes for a period on the line for income tax expense in the income statement. Other places that income tax expenses may occur include all of the following except Common Stock. Common stock is a form of corporate equity ownership, a type of security. Common stock is reported in the stockholder's equity section of a company's balance sheet.
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes Iin 2022.
Transaction General Journal Debit Credit
Income tax expense
Deferred tax asset
Income taxes payable 340.0
Answer:
Ryan Management
Journal Entries
Date Particulars Debit'million Credit'million
31-Dec-22 Income tax expense $219.50
To Income tax payable $190
($760 * 25%)
To Deferred tax asset $29.50
[($194 - $76)*25%]
(To record income tax expense and reversal of Deferred
tax asset)
Consider a second-price, sealed-bid auction with a seller who has one unit of the object which he values at s and two buyers 1, 2 who have values of v1 and v2 for the object. The values s, v1, v2 are all independent, private values. Suppose that both buyers know that the seller will submit his own sealed bid of s (and will keep the item if bid s wins), but they do not know the value of s. The buyers know that the seller must submit his bid before seeing the buyer’s bids and they know that the seller will actually run a second price auction with the three bids he has: his own bid and the two buyer’s bids. Each buyer knows his own value but not the other buyer’s value.
Now suppose that the seller opens the bids from the buyers and then submits his own bid after seeing the bids from the two buyers. The seller runs a second price auction with these bids in the sense that the object is awarded to the highests bidder (one of the two buyers or the seller) and that bidder pays the second highest bid. Now is it optimal for the buyers to bid truthfully; that is, should they each bid their true value? Give a brief explanation for your answer.
Answer and Explanation:
Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.
Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders
12
-
50what is the answer please
Answer:
-38
Explanation:
-38
brainliest plz i only need one more
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
A machine was purchased for $35,500, having a useful life of 10 years, and a residual value of $6,000. Compute the annual depreciation expense using the straight-line method.
Answer:
Annual depreciation= $2,950
Explanation:
Giving the following information:
A machine was purchased for $35,500, having a useful life of 10 years, and a residual value of $6,000.
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (35,500 - 6,000) / 10
Annual depreciation= $2,950
Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a tax rate of 21 percent
a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
a- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)
b-1.Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession assuming recapitalization has occurred.
Answer:
Please see attached.
Explanation:
a. Calculate earnings per share EPS under each of the three economic scenarios
a.2 Calculate the percentage changes in earnings per share EPS for economic expansion, or recession.
b-i calculate economic per share EPS, under each of the three economic scenarios after recapitalisation.
b-2 calculate the percentage changes in EPS when the economy enters or expand a recession assuming no recapitalisation occurred.
Please find attached detailed solution to the above questions.
Which franchise model do automobile dealerships usually follow?
Answer:
hope it helps..
Explanation:
Automakers sold vehicles through department stores, by mail order and through the efforts of traveling sales representatives. The prevailing delivery system was direct-to-consumer sales.
Company Owned Company Operated franchise model do automobile dealerships usually follow. These are companies that have been granted a franchise to purchase and resell cars made by particular manufacturers. They are typically found on sites with enough space to accommodate an automobile showroom as well as a small garage for upkeep and repairs.
What is the difference between a franchise and a dealership?A licensed dealer functions much like a retail distributor. Dealers have more freedom when it comes to the layout of their stores and the products they offer, while franchisees are subject to a set of corporate regulations. The majority of the time, a dealer will sell the same goods and have the parent company's name and logo.
The business model for franchises. You can run a business if you buy a franchise as an investor or franchisee. You receive a format or system created by the business (franchisor), the right to use its name for a predetermined period of time, and assistance in exchange for paying a franchise fee.
Learn more about franchises here:
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Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200
Answer:Sheridan should record a liability at December 31, 2020 for accrued salaries of =d. $157200
Explanation:
Since there are 5 workdays in a week
we consider First, Workdays Biweekly (Two weeks)
= 5 work days per week X 2 = 10 days
then the Remaining work days in 2020 for December 29,30 and 31 = 3 days
Accrued salaries = Recurring biweekly salaries/10 days X 3 days + Overtime pay earned in the 2-week period ended 12/26/20
$444,000/10 days x 3 days + $24000
$133,200 +$24000
= $157,200
Learning design software, applying to college and creating a website to showcase work are examples of ______ that lead to a career as a graphic artist?
Answer:
Long term goals
Explanation:
goals are later on
Answer:
Long term goals
Explanation:
hopes this helps<3