Answer and Explanation:
The journal entry is shown below:
Unearned revenue $4,770
To fees earned $4,770
(Being the adjusting entry is passed)
The calculation is shown below:
= Received amount ÷ total months × calculated months
= $19,080 ÷ 36 months × 9 months
= $4,770
Hence, the above entry should be recorded and the same is to be considered
Making the pro-forma financial statements as complicated as possible is always best
Answer:
false
Explanation:
On December 31, 2022, Monty Company prepared an income statement and balance sheet and failed to take into account three adjusting entries. The incorrect income statement showed net income of $44,000. The balance sheet showed total assets, $166,400; total liabilities, $66,000; and stockholders’ equity, $100,400. The data for the three adjusting entries were: (1) Depreciation of $9,720 was not recorded on equipment. (2) Salaries and wages amounting to $10,720 for the last two days in December were not paid and not recorded. The next payroll will be in January. (3) Rent of $7,520 was paid for two months in advance on December 1. The entire amount was debited to Prepaid Rent when paid.
Answer:
Salaries and Wages are owed so they are now liabilities. They are also expenses and will reduce the Net Income.
Rent Revenue was in advance for 2 months meaning one of those months will be December which is in the current period so;
= 7,520/2
= $3,760 will be added to net income for the year
The same amount will be removed from Liabilities as the revenue has now been recognized.
Depreciation reduces the value of Fixed assets so will be deducted from Assets.
It is also an expense so it will reduce Net Income.
Whatever happens to Net Income will happen to Stockholders' equity as well because Net Income is an Equity account.
What is the difference between real and nominal gross domestic product (GDP)?
Answer:
the difference between real GDP and nominal GDP is that real GDP is a adjustment for inflation since nominal GDP is calculated using current prices
Explanation:
Bosques Corporation has in stock 35,800 kilograms of material L that it bought fiveyears ago for $5.55 per kilogram. This raw material was purchased to use in a productline that has been discontinued. Material L can be sold as is for scrap for $1.67 perkilogram. An alternative would be to use material L in one of the company's currentproducts, Q08C, which currently requires 2 kilograms of a raw material that isavailable for $9.15 per kilogram. Material L can be modified at a cost of $0.78 perkilogram so that it can be used as a substitute for this material in the production ofproduct Q08C. However, after modification, 4 kilograms of material L is required forevery unit of product Q08C that is produced. Bosques Corporation has now received arequest from a company that could use material L in its production process. Assumingthat Bosques Corporation could use all of its stock of material L to make productQ08C or the company could sell all of its stock of the material at the current scrapprice of $1.67 per kilogram, what is the minimum acceptable selling price of materialL to the company that could use material L in its own production process
Answer:
material L should be sold for at least $3.80 per kg
Explanation:
alternative 1, sell material L at scrap value:
35,800 kg x $1.67 = $59,786
alternative 2, process material L and use it to produce Q08C:
processing costs = 35,800 x $0.78 = $27,924
modified L will replace 17,900 of another material that is worth 17,900 x $9.15 = $163,785
net additional income = $163,785 - $27,924 = $135,861
alternative 2 generates the highest additional income = $135,861 / 35,800 = $3.795 per kg.
the minimum acceptable price ≥ to the additional revenue generated by alternative 2, therefore, material L should be sold for at least $3.80 per kg
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers The costs of air and water pollution Expenditures on federal highways The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP. g
Answer:
a.
The quality of goods available to consumers The costs of air and water pollution The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the governmentb. investment; decreases; no overall change
Explanation:
a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.
For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.
b. When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the investment component of GDP while also decreasing net exports by the same amount. Therefore, the purchase of wood from Brazil causes no overall change in US GDP.
Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.
A company will pay a $2 per share dividend in 1 year. The dividend in 2 years will be $4 per share, and it is expected that dividends will grow at 2% per year thereafter. The expected rate of return on the stock is 12%. a. What is the current price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the expected price of the stock in a year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
(a) $ 46.43
(b) $ 50.00
Explanation:
In 1 year the dividend is:
D1 = $2
In 2 years, the dividend is:
D2 = $4
(a)
Now,
⇒ [tex]D3=D2\times (1+g)[/tex]
[tex]=4\times (1+4 \ percent)[/tex]
[tex]=4.16[/tex] ($)
In 2 years, the price will be:
⇒ [tex]P2=\frac{D3}{(r-g)}[/tex]
[tex]=\frac{4.16}{12 -14}[/tex]
[tex]=52.00[/tex] ($)
Today's price will be:
⇒ [tex]P0=\frac{D1}{(r-g)}+\frac{D2+P2}{(1+r)^2}[/tex]
[tex]=\frac{2}{1.12}+\frac{(4+52) }{1.12^2}[/tex]
[tex]=46.43[/tex] ($)
(b)
In 1 year, the price will be:
⇒ [tex]P1=\frac{(D2+P2)}{(1+r)}[/tex]
[tex]=\frac{4+52}{1.12}[/tex]
[tex]=50.00[/tex] ($)
Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead At the beginning of the year, Han Company estimated the following: Overhead $582,400 Direct labor hours 80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 6,950. By the end of the year, Han showed the following actual amounts: Overhead $613,320 Direct labor hours 84,100 Assume that unadjusted Cost of Goods Sold for Han was $927,000.
Required:
1. Calculate the predetermined overhead rate for Han. Round your answer to the nearest cent. $ per direct labor hour
2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.) $
3. Calculate the total applied overhead for the year. $ Was overhead over- or underapplied? By how much? overhead $
4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 582,400/80,000
Predetermined manufacturing overhead rate= $7.28 per direct labor hour
Now, we can allocate overhead based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January:
Allocated MOH= 7.28*6,950= $50,596
Year:
Allocated MOH= 7.28*84,100= $612,248
Now, we can determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 613,320 - 612,248
Under/over applied overhead= $1,072 underallocated
If overhead is underallocated, the cost of goods sold should increase:
Adjusted COGS= 927,000 + 1,072= $928,072
Explain the different sources of short-term and long-term finance available to a sole trader and
available to a limited company. Advise Chris on whether becoming a sole trader or becoming a
limited company.
Answer:
short term finance is the process by which finance goes for short period of time, while long term finance is the process by which the finance company go for a long period of time
Explanation:
I advise Chris to become a limited company
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.53 a share. The following dividends will be $.58, $.73, and $1.03 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.6 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 10 percent? Multiple Choice $16.67 $17.27 $3.40 $17.20 $13.60
Answer:
The current stock price is $13.60
Explanation:
D1 = $0.53
D2 = $0.58
D3 = $0.73
D4 = $1.03
Growth rate, g = 3.60%
Required return, r = 10.00%
D5 = D4 * (1 + g)
D5 = $1.03 * 1.036
D5 = $1.06708
P4 = D5 / (r - g)
P4 = $1.06708 / (0.10 - 0.036)
P4 = $16.673125
P0 = $0.53/1.10 + $0.58/1.10^2 + $0.73/1.10^3 + $1.03/1.10^4 + $16.673125/1.10^4
P0 = $13.60
So, current stock price is $13.60
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $510 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,800 3,100 4,900 Number of batches 46 19 65 What is the amount of Machining cost assigned to Product X
Answer:
$434,000
Explanation:
Total machining cost = Number of machine hour * Rate per machine hour
= 3,100 * $140
= $434,000
Hence, The total machining cost allocated to product X is $434,000.
Identify at least five different careers in the Education and Training or Government and Public Administration clusters you could pursue in your home state, and choose the three that appeal to you the most. Out of the three, write a one-page essay describing which one would be your career choice and the educational pathway that you would have to follow in order to obtain that career. Finally, identify at least three colleges, universities, or training programs that are suited to that career choice. You can use the following resources to help you:
Answer:
Hydrologist
Architect
Naval architect
Architectural or civil drafter
Materials lab and supply technician
Explanation:
Louis has created an innovation that will greatly improve the health of millions of people. It has been tested and approved and is ready to sell. Because he is the only one producing this new good, he doesn’t have to settle for the price he would have to accept in perfect competition. Once word gets out about his new device, the demand for it greatly increases. So, he decides to charge a higher price for his good because there are no existing competitors to undercut his price. What benefit does Louis have as the only producer in the market?
Answer:
Louis can charge a high price because there are no other companies that consumers can turn to.
Explanation:
With no opposition, Louis can do anything he wants because he is the only one who has what he is selling.
Louis can charge a premium fee because customers have no other options for businesses is benefit does Louis have as the only producer in the market.
What is business profit?A product's selling price less all manufacturing and selling costs, including taxes, or the difference between a company's revenue and costs. But generally speaking, a small business's healthy profit margin falls between 7 and 10 percent. But keep in mind that other industries, like retail or the food industry, can have reduced margins. They frequently have larger overhead expenditures, which explains this.
Profit is what remains after all costs have been deducted from a company's revenue, also known as income. In small firms, the owner or owners typically receive the entire profit. Publicly traded companies distribute dividends to stockholders from their profits.
Thus, Louis can charge a premium fee because customers have no other options for businesses is benefit
For more details about business profit, click here:
https://brainly.com/question/10165880
#SPJ5
The number of cases of merlot wine sold by the Connor Owen winery in an eight-year period is as follows:
YEAR CASES OF MERLOT WINE
2005 281
2006 367
2007 409
2008 467
2009 369
2010 511
2011 421
2012 387
Using an exponential smoothing model with an alpha value of 0.20, estimate the smoothed value calculated as of the end of 2012. Use the average demand for 2005 through 2007 as your initial forecast for 2008, and then smooth the forecast forward to 2012. (Round your intermediate calculations and final answer to the nearest whole number.)
Answer:
The forecast for the year 2012 with an alpha value of 0.20 = 366.04.
Explanation:
The first step in order to solve this question/problem is to calculate or determine the Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007, that is to say;
Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007 = [actual sales in 2005 + actual sales in 2006 + actual sales in 2007]/ 3.
Therefore, Exponentially smoothed forecast for a period of time, t using the values of average demand for 2005 through 2007 =[ 281 + 367 + 409]/3 = 1057/3 = 352.3.
Since we are asked to use the smoothed value calculated as of the end of 2012. Use the average demand for 2005 through 2007 as your initial forecast for 2008, then, we have that for 2008 the forecast = 352.3.
Therefore, the forecast from the year 2009 through to the year 2012 can be calculated as given below;
The forecast for the year 2009 with an alpha value of 0.20 = 0.2 × 467 + [1 - 0.2] × 352.3 = 375.24.
The forecast for the year 2010 with an alpha value of 0.20 = 0.2 × 369 + [1 - 0.2] × 352.3 = 355.64.
The forecast for the year 2011 with an alpha value of 0.20 = 0.2 × 511 + [1 - 0.2] × 352.3 = 384.04.
The forecast for the year 2012 with an alpha value of 0.20 = 0.2 × 421 + [1 - 0.2] × 352.3 = 366.04.
Ross is the CEO of IO Technological Solutions (IOTS), a multinational company. Ross stresses on a decentralized working environment and is very friendly with his staff. In board meetings, he stresses that every top level employee at IOTS should focus on building a personal relationship with his or her team members and mentor them to succeed in their work. In this scenario, Ross focuses on a __________ for his company. Group of answer choices hierarchy culture market culture clan culture adhocracy culture
Answer: Clan culture
Explanation:
Clan Culture like the term implies refers to a type of corporate environment where a collaborative nature is encouraged and fostered such that people try to achieve common goals the way a clan would by being united and interested in the growth of one another because this will lead to the growth of the company as a whole.
In being friendly with staff and encouraging top management to try to get their team members to succeed, Ross is following a clan culture. This type of corporate environment is known to be the least competitive type as a result.
Below is the production possibilities frontier for the United States. It shows that the United States is able to produce either 100 barrels of oil or 25 bushels of corn using all of its available resources. Also suppose that the United States decides to produce at point A : 60 barrels of oil and 10 bushels of corn. If the United States engages in international trade and trades 20 barrels of oil for 20 bushels of corn with another country, it will be able to consume outside of its production possibilities frontier. How many bushels of corn will it have at the end of the exchange
Answer:
30 bushels of corn
Explanation:
opportunity cost of producing 1 barrel of oil = 25/100 = 0.25 bushels of corn
opportunity cost of producing 1 bushel of corn = 100/25 = 4 barrels of oil
current production:
60 barrels of oil
10 bushels of corn
if it trades 20 barrels of oil in exchange for 20 bushels of corn, it will be gaining 20 - (20 x 0.25) = 15 bushels of corn
after the exchange, the US will have 30 bushels of corn and 40 barrels of oil
this level is outside the PPF curve because if the US produced 40 barrels of oil, its maximum production of corn would have been 15 bushels (remember the 15 bushels of corn gained).
upo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours32,800 Total fixed manufacturing overhead cost$164,000 Variable manufacturing overhead per machine-hour$ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job10 Total machine-hours30 Direct materials$ 745 Direct labor cost$1,490 The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer: $253.50 per unit
Explanation:
Total Overhead = Fixed manufacturing Overhead + Variable Manufacturing Overhead
= 164,000 + ($5 * 32,800)
= $328,000
Manufacturing overhead rate per hour = Total Overhead/ Machine hours
= 328,000/32,800
= $10 per hour
Job T687 used 30 machine hours so its manufacturing overhead is;
= 10 * 30
= $300
Job T687 cost = Direct materials + Direct labor cost + Manufacturing overhead
= 745 + 1,490 + 300
= $2,535
There were 10 units in the Job so unit product cost is;
= 2,535/10
= $253.50 per unit
Pirates Incorporated had the following balances at the beginning of September.
PIRATES INCORPORATED
Trial Balance
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
The following transactions occur in September:
September 1 Provide services to customers for cash, $3,700.
September 2 Purchase land with a long-term note for $5,400 from Crimson Company.
September 4 Receive an invoice for $400 from the local newspaper for an advertisement that appeared on September 2.
September 8 Provide services to customers on account for $5,000.
September 10 Purchase supplies on account for $1,000.
September 13 Pay $3,000 to Crimson Company for a long-term note.
September 18 Receive $4,000 from customers on account.
September 20 Pay $800 for September's rent.
September 30 Pay September's utility bill of $1,500.
September 30 Pay employees $3,000 for salaries for the month of September.
September 30 Pay a cash dividend of $1,000 to shareholders.
Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Journal Entries:
September 1:
Debit Cash $3,700
Credit Service Revenue $3,700
To record the provision of services for cash.
September 2:
Debit Land $5,400
Credit Long-term Note Payable $5,400
To record the purchase of land from Crimson company.
September 8:
Debit Accounts Receivable $5,000
Credit Service Revenue $5,000
To record the provision of services on account.
September 10:
Debit Supplies $1,000
Credit Accounts Payable $1,000
To record the purchase of supplies on account.
September 13:
Debit Long-term Notes Payable $3,000
Credit Cash Account $3,000
To record the payment to Crimson Company on long-term note.
September 18:
Debit Cash Account $4,000
Credit Accounts Receivable $4,000
To record the cash receipt from customers.
September 20:
Debit Rent Expense $800
Credit Cash Account $800
To record the payment of September's rent.
September 30:
Debit Utilities Expense $1,500
Credit Cash Account $1,500
To record the payment of September's utility bill.
September 30:
Debit Salaries Expense $3,000
Credit Cash Account $3,000
To record the payment of salaries for the month.
September 30:
Debit Dividend $1,000
Credit Cash Account $1,000
To record the payment of cash dividend to shareholders.
Explanation:
a) PIRATES INCORPORATED
Trial Balance
As of September 1
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
Totals $23,800 $23,800
b) Pirates' Journal entries are made as business transactions occur on a daily basis. They are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
Kevin Hall is saving for an Australian vacation in three years. He estimates that he will need $5,920 to cover his airfare and all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 10.5 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Answer:
$1,779.90
Explanation:
Formula for finding the amount he has to save, this formula would be used :
Amount = FV / annuity factor
Annuity factor = [(1 + r)^n - 1 / r]
FV = Future value = $5920
n = number of years = 3
i = interest rate = 10.5
Annuity factor = (1.105^3 - 1 ) / 0.105 = 3.326025
$5920 / 3.326025 = $1,779.90
During 2020, Stellar Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Stellar for a lump sum of $137,655 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 920 $90 Armchairs 690 80 Straight chairs 1,610 50 During 2020, Stellar sells 460 lounge chairs, 230 armchairs, and 276 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.) Gross profit realized during 2020 $enter a dollar amount 27,232 Amount of inventory of unsold straight chairs $enter a dollar amount 42,021
Answer:
What is the amount of gross profit realized during 2020?
(460 x $33.30) + (230 x $29.60) + (276 x $18.50) = $27,232
What is the amount of inventory of unsold straight chairs on December 31, 2020?
[(920 - 460) x $56.70] + [(690 - 230) x $50.40] + [(1,610 - 276) x $31.50] = $26,082 + $23,184 + $42,021 = $91,287
Explanation:
lump sum cost of chairs = $137,655
Type Chairs Selling Price Each Total
Lounge chairs 920 $90 $82,800
Armchairs 690 $80 $55,20
Straight chairs 1,610 $50 $80,500
total 3,220 $218,500
if we allocate costs based on resale, then each chair should cost:
Lounge chairs $90 x ($137,655 / $218,500) = $56.70
Armchairs $80 x ($137,655 / $218,500) = $50.40
Straight chairs $50 x ($137,655 / $218,500) = $31.50
contribution margin per chair:
Lounge chairs $90 - $56.70 = $33.30
Armchairs $80 - $50.40 = $29.60
Straight chairs $50 - $31.50 = $18.50
Middle management is the intermediate management level accountable to top management and responsible for leading lower level managers. Which of the following is not a typical function of middle management? Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff. Middle managers are accountable to top management for their department’s function. They provide guidance to lower-level managers and inspire them to perform better. Middle managers balance a functional or technical understanding of those who report to them with the interpersonal skills of a manager. This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize processes, and prioritize. Middle-management functions generally revolve around enabling teams of workers to perform effectively and efficiently and reporting these performance indicators to upper management. Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
Answer:
Middle Management
Which is not a typical function:
Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
Explanation:
Options:
1. Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff.
2. Middle managers are accountable to top management for their department’s function. They provide guidance to lower-level managers and inspire them to perform better.
3. Middle managers balance a functional or technical understanding of those who report to them with the interpersonal skills of a manager. This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize processes, and prioritize.
4. Middle-management functions generally revolve around enabling teams of workers to perform effectively and efficiently and reporting these performance indicators to upper management.
5. Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
The last option (No. 5) is certainly not a function of middle management. It is what happens to middle management during reorganization.
Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clients for services provided in February in the amount of $800.March 9 - Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.March 15 - Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.March 23 - A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.March 31 – Salaries of $850 are paid to employees.For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Answer: Please find answers in explanation column
Explanation:
Journal entry for Nexium & Associates
1.Journal to record Services provided in February.
Date Account Debit Credit
March 1 Accounts receivable $800
Service revenue $800
2.Journal to record purchase of furniture and supplies on account.
March 9 Office furniture $1,060
Office supplies $160
Accounts payable $1,220
3.Journal To record payment made to suppliers, Corner Office Inc.
March 15 Accounts payable $1,220
Cash $1,220
4.Journal To record the bill of electricity for march which is not yet due to be paid till April.
March 23 Electricity expense $430
Outstanding Liabilities $430
5.Journal To record the salary payment to employees.
March 31 Salaries expense $850
Cash $850
A three-year bank CD paying 7.23 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.03 percent compounded monthly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.53 percent compounded annually. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media Which of the above investments has the highest effective annual interest rate (EAR)?
Answer:
Follows are the solution to the question:
Explanation:
m = 4,
EAR = [tex](1 + \frac{0.08}{4}) \times 4-1[/tex]
[tex]= 1 + 0.02 \times 4-1\\\\= 1 + 0.08 -1\\\\= 0.08\\\\[/tex]
The successful quarter cumulative rate of interest = 8.24 \%
In Method 2 use Tool in Texas:
By Using the (ICONV) worksheet:
1)
To pick the worksheet, click ICONV 2.
2)
Its previous meaning will represent the NOM.
3)
To clear the worksheet, click [CLR WORK] 2nd
Continue as below.
Displayed keystrokes:
NOM = previous value 2nd ICONV:
NOM = 0.00 2nd CLRWORK:
8 DAYS: Name = 8.00.
EFF: DownArrow = 0.00
DownArrow: C / Y = meaning previous
4)
DOS: C / Y = 5.00 p.m.
EFF: DownArrow = 0.00
CPT: FRP = 8.24
An informal trade barrier is created by government actions.
Oa. True
Ob. False
Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that the past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%
Answer:
26%
Explanation:
Given that Mean, μ = 8.7% = 0.087
Standard Deviation, σ = 20.2% = 0.202
Normal distribution, n = 40
Notice that the distribution annual returns of stocks are a bell-shaped distribution.
hence, using the formula
Zscore = (x - μ ) / σ
= where we have P(return greater than 10%)
= P(x > 0.10)
= P(x > 0.10) = P [z > (0.10 - 0.087)/0.202]
= P (z > 0.0643)
= 1 - P (z > 0.0643)
= Using the value from standard normal z table,
= P (x > 610) = 1 - 0.740 =0.26 = 26%
Hence, the correct answer is 26%.
During 2021, Erin Corporation had 9,000,000 shares of common stock and 500,000 shares of 6% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Erin declared and paid cash dividends of $3,000,000 and $1,500,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Erin issued $20,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Erin's net income for the year ended December 31, 2021, was $60 million. The income tax rate is 20%. 20. What is Erin's basic earnings per share for 2021, rounded to the nearest cent
Answer:
Erin's basic earnings per share for 2021 is $6.50 per share.
Explanation:
Basic earnings per share (EPS) refers to a measure that show investors the amount of the net income of a company that is allotted to one share of the common stock of the company.
In the calculation of the basic EPS, the dilutive effects of convertible securities are not to be considered.
Therefore, Erin's basic earnings per share for 2021 can be calculated using the following formula:
Earnings per share (EPS) = (Net income - Preferred dividend) / Number of shares of common stock ...................... (1)
Where;
Net income = $60,000,000
Preferred dividend = $1,500,000
Number of shares of common stock = 9,000,000
Substituting the values into equation (1), we have:
Earnings per share (EPS) = ($60,000,000 - $1,500,000) / 9,000,000 = $58,500,000 / 9,000,000 = $6.50 per share.
Therefore, Erin's basic earnings per share for 2021 is $6.50 per share.
7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for workers in private industries was $14.28 per hour in December 2000 and $21.26 in December 2015. By what percentage did the price of a dozen eggs rise? 65% 179% 186% By what percentage did the wage rise? 15% 49% 134% In order to earn enough to buy a dozen eggs, a worker had to work minutes in December 2000 and minutes in December 2015. Workers' purchasing power in terms of eggs between 2000 and 2015. g
Answer:
By what percentage did the price of a dozen eggs rise?
[($2.75 - $0.96) / $0.96] x 100 = 186.46%By what percentage did the wage rise?
[($21.26 - $14.28) / $14.28] x 100 = 48.88%In order to earn enough to buy a dozen eggs, a worker had to work 4.04 minutes in December 2000 and 7.76 minutes in December 2015.
($0.96 / $14.28) x 60 = 4.04 minutes($2.75 / $21.26) x 60 = 7.76 minutesWorkers' purchasing power in terms of eggs between 2000 and 2015.
purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hourpurchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hourToday you are feeling bullish on UPP stock. You decide the best way to play that opinion is to purchase 5 call options that expire in 4 months with a strike price of 70.00. To lower your risk and your cost basis you simultaneously sell 3 call options that also expire in 4 months with a strike price of 77.50. The current stock price is 70.80. The price of the 70-strike call is 5.50 and the price of the 77.50 strike call is 2.40. The current continuously compounded risk free rate is 3% (annual). 3.
a. Calculate your profit/loss if the ending price of one share of UPP stock is 80.00.
b. Calculate your profit/loss if the ending price of one share of UPP stock is 65.00.
Answer:
a. Total profit = $22.2
b. Total profit = -$20.3 / Loss of $20.3.
Explanation:
a) If ending price is $80
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Long call profit = 5 * [max(80 - 70,0) - 5.5]
Long call profit = 5 * [10 - 5.5]
Long call profit = $22.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(80 - 77.5, 0) + 2.4]
Profit of short call = 3 * [-2.5 + 2.4]
Profit of short call = -$0.3
Total profit = Long call profit - Profit of short call
Total profit = 22.5 - 0.3
Total profit = $22.2
b) If ending price is $65
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Profit of long call = 5 * [max(65 - 70, 0) - 5.5]
Profit of long call = 5 * [0 - 5.5]
Profit of long call = -$27.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(65 - 77.5, 0) + 2.4]
Profit of short call = 3 * [0 + 2.4]
Profit of short call = $7.2
Total profit = Long call profit - Profit of short call
Total profit = -27.5 + 7.2
Total profit = -$20.3 / Loss of $20.3.
Cortez Company is planning to introduce a new product that will sell for $96 per unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year: Direct materials $ 800,000 Direct labor 640,000 (= $16 per hour × 40,000 hours) Manufacturing overhead costs have not yet been estimated for the new product, but monthly data on total production and overhead costs for the past 24 months have been analyzed using simple linear regression. The following results were derived from the simple regression and provide the basis for overhead cost estimates for the new product. Simple Regression Analysis Results Dependent variable—Factory overhead costs Independent variable—Direct labor-hours Computed values Intercept $ 120,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.921 R2 0.848 Required: a. What percentage of the variation in overhead costs is explained by the independent variable? 92.10% 45.00% 84.80% 8.48% None of the above
Answer:
84.80%
Explanation:
According to the given situation, the computation of the percentage of the variation is shown below:-
The Percentage of the variation is
= R^2 × Percentage
= 0.848 × 100
= 84.80%
Therefore for computing the percentage of the variation we simply applied the above formula.
hence, the percentage of variation is 84.80%
Identify which of the following accounts should be closed with a debit or a credit to Retained Earnings at the end of the fiscal year. If it is not closed to Retained Earnings , mark as N/A. 1. Utilities Payable 2. Utilities Expense 3. Supplies 4. Supplies Expense 5. Fees Earned 6. Unearned Fees 7. Accounts Receivable 8. Dividends 9. Retained Earnings 10. Accumulated Depreciation-Equipment 11. Depreciation Expense-Equipment 12. Equipment 13. Prepaid Insurance 14. Insurance Expense
Answer:
Please see below
Explanation:
1. Utilities payable N/A
2. Utilities expense ...N/A
3. Supplies ...N/A
4. Supplies expense .....N/A
5. Fees earned...N/A
6. Unearned fees...N/A
7. Accounts Receivable ....N/A
8. Dividends ........Dr to retained earnings
9. Retained earnings.....Cr to retained earnings
10. Accumulated depreciation - equipment... N/A
11. Depreciation expense- Equipment.....N/A
12. Equipment...N/A
13. Prepaid insurance.....N/A
14. Insurance expense.....N/A
EcoFabrics has budgeted overhead costs of $945,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $360,000, and $585,000 is allocated to the design cost pool.Additional information related to these pools is as follows:Machine hours wool: 100,000Number of set ups wool: 1,000Machine hours cotton: 100,000Number of set ups cotton: 500Machine hours total: 200,000Number of setups total: 1,500The amount of overhead allocated to the wool product line and the cotton product line using activity-based costing & traditional approach is as follows:ABC wool: $570,000Traditional wool: $472,500ABC cotton: $375,000Traditional cotton: $472,500Required:How does allocation using the traditional approach compare with the amount allocated using ABC?
Answer:
The main advantage of using ABC costing method is that it is more exact than traditional costing, and overhead costs are generally allocated on different basis (cost drivers) which results in a more fair distribution.
In this case, overhead costs allocated based solely on direct labor hours might be over or under stated since certain manufacturing procedures might require a lot of labor but few machines, while others might require few labor and a lot of machines.
Cutting is done mostly by machines while design is done mostly by employees. Allocating cutting overhead costs based on machine hours makes sense. Since both wool and cotton require the same amount of machine hours, cutting costs are allocated equally between them.
On the other hand, design is carried out by employees, so allocating design costs based on set ups (which is also carried out by employees) makes sense. That is why most of design costs are allocated to wool (wool requires 67% of setups).
Before under the traditional method, overhead costs were allocated evenly, but once we start allocating them based on more real cost drivers, the total amounts change.