Answer:
The percentage change in real GDP is 2.93%
Real economic growth rate
Explanation:
The percentage in real GDP between year 2017 and 2018 can be computed using the below formula:
% change in real GDP=2018 real GDP-2017 real GDP/2017 real GDP
2017 real GDP is 18,108.1
2018 real GDP is 18,638.2
% change in real GDP=(18,638.2- 18,108.1)/ 18,108.1=2.93%
This percentage change in real GDP is also known as real economic growth rate.Economic growth rate is the rate of improvement in the economy with respect to additional value-adding goods and services produced by an economy with viz-a-viz the prior year
g The model of aggregate demand and aggregate supply explains the relationship between a. the price and quantity of a particular good. b. unemployment and output. c. wages and employment. d. real GDP and the price level.
Answer:
The correct answer is the option D: real GDP and the price level.
Explanation:
To begin with, the "model of aggregate demand and aggregate supply" is the name given to an economy model created by John Keynes many years ago and whose main purpose is to show in a graphic the existing relationship established by Keynes between the price level and the production level. Therefore that, as it is known, the GDP comprehends the production level in this model and it is used in order to try to predict the possible effects that some external factors may have in both the real GDP and the price level.
Answer:
The correct answer is (A)
Explanation:
The model of aggregate demand and aggregate supply explains the relationship between the price of a good and the quantity of same good.
What do we mean by quantity? Quantity here could be quantity demanded or quantity supplied.
The model of Aggregate Demand explains how price of a good affects the general or aggregate demand for that goods and how demand in turn affects price. The law of demand states that, all other things being equal, the higher the price of a good, the lower the quantity demanded of that good and vice versa.
The model of Aggregate Supply explains how the price of a good affects the quantity supplied and the law of supply states that if there's an increase in the price of a good, producers will be encouraged to supply more and vice versa; ceteris paribus!
For the other options, there are macro theories or models that explain them.
A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent.The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering cost? On average, how long does a jacket spend in inventory? If the retail store wants to minimize ordering and holding cost, what order size do you recommend? How much would the optimal order reduce holding and ordering cost relative to the current policy?
Answer:
1) What is the annual holding and ordering cost?
annual ordering cost = $100 x 12 = $1,200
annual holding cost = ($100 x 25%) x [500 x 1/2(average inventory)] = $6,250
total $7,450
2) On average, how long does a jacket spend in inventory?
= 30 days / 2 = 15 days
3) If the retail store wants to minimize ordering and holding cost, what order size do you recommend?
economic order quantity (EOQ) = √[(2 x annual demand x order cost) / annual holding cost per unit]
EOQ = √[(2 x 6,000 x 100) / 25] = √48,000 = 219.09 units ≈ 219 units
4) How much would the optimal order reduce holding and ordering cost relative to the current policy?
EOQ = 219
total number of orders = 6,000 / 219 = 27.4 per year
average inventory = 219 / 2 = 109.5 units
annual ordering cost = $100 x 27.4 = $2,740
annual holding cost = ($100 x 25%) x 109.5 = $2,737.50
total $5,477.50
annual savings = $7,450 - $5,477.50 = $1,972.50
CommercialServices Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 3,000,000 Net operating income $ 150,000 Average operating assets $ 750,000 The following questions are to be considered independently. Garrison 16e Rechecks 2019-01-10 Required: 1. Compute the company's return on investment (ROI).
Answer:
The answer is 0.20 or 20%
Explanation:
Solution
Given that:
The sales = $ 3,000,000
The Net operating income= $150,000
The Average operating assets =$ 750,000
The next step is to calculate the company return rate of investment
Thus,
The return of investment is stated as follows:
the return of investment = Net operating income divided by the average operating assets * 100
= $150,000/$750,000
= 0.2 * 100
= 20 %
Therefore, the company's ROI is 20%
A company uses direct labor costs as it allocation base. Management estimates the company will incur $150,000 of direct labor cost during the year and total overhead costs of $200,000. What is their predetermined overhead rate? 1.33% 133% 50% 75%
Answer:
133.33%
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Total overhead cost ÷ direct labor cost
where,
Total overhead cost is $200,000
And, the direct labor cost is $150,000
Now placing these values to the above formula
So, the predetermined overhead rate is
= $200,000 ÷ $150,000
= 1.33%
We simply applied the above formula
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,900 in tailoring fees, and paid $12,800 in expenses. Depreciation expense totaled $1900. Accounts receivable increased $1200, supplies increased $3600, and accrued liabilities increased $1650. Pat's accrual-basis net income was:
Answer:
$31,350
Explanation:
Calculation for Pat's accrual-basis net income
Cash receipts$42,900
Less Cash disbursements(12,800)
Cash basis net income 30,100
Less depreciation expense(1,900)
Add increase in accounts receivable1,200
Add increase in supplies 3,600
Less increase in accrued liabilities(1,650)
Accrual-basis net income$31,350
Marina had an accident with her car and the repair bill came to $900. She didn't have any emergency fund money and no extra
money in her monthly budget, so she ended up borrowing from a pay-day loan company. As long as she can pay the loan back at
the end of the 30 day period she won't be charged any interest, technically. However, she did have to pay an $18 processing fee
per $100 that she borrowed.
If she were to consider the processing fee to represent interest paid in her formula, what would she discover to
be the annual interest rate she was charged on her short term loan?
Answer:
216%
Explanation:
Ordinary interest is computed on the basis of a 360-day year, so Marina's borrowing period is 1/12 of a year. The annual rate is then 12 times the rate Marina pays for 30 days:
12 × 18/100 = 216/100 = 216%
Marina would discover the annual interest rate is 216%.
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except:___________A) a manufacturing defectB) a design defect.C) an inadequate warning.D) an ineffective marketing plan.
Answer:
D) an ineffective marketing plan.
Explanation:
Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.
Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.
SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.
However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.
Two mutually exclusive investment opportunities require an initial investment of $10 million. Investment A pays $1.5 million per year in perpetuity, while investment B pays $1.2 million in the first year, with cash flows increasing by 3% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent?
Answer: 15%
Solving this would require finding the rate/cost of capital that gives both investments the same present value.
Investment 1
Investment 1 is a perpetuity which means that it's present value can be calculated as,
= Amount/rate
= 1,500,000/r
Investment 2
Investment 2 pays $1,200,000 in the first year and then grows at a rate of 3% every year afterwards.
The Present Value of such can be calculated with the following equation,
= Amount / ( rate/cost of capital - growth rate)
= 1,200,000 / ( r - 3%)
To find the Rate that gives both figures the same Present Value, simply equate them.
1,500,000/r = 1,200,000 / (r - 3%)
1,500,000(r - 3% ) = 1,200,000r
1,500,000r - 45,000 = 1,200,000r
300,000r = 45,000
r = 45,000/300,000
r= 0.15
r = 15%
At 15% an investor regard both opportunities as being equivalent.
esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69
Answer:
The correct option is C, $14.29
Explanation:
A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.
This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.
The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i.e ($50*2)/7=$ 14.29
The correct option from the multiple choices is $ 14.29
. Gwen is leading a meeting and wants to make sure that they stick to the agenda and end on time. What should she do to move the meeting along? a. Say as much as possible during the meeting. b. Move divergent topics to a separate list to be discussed later. c. Not worry so much about time; the most important thing is to make sure that all agenda items are discussed fully. d. Ask anyone who monopolizes the conversation to leave.
Answer:
b.
Explanation:
When leading a meeting with many different topics, the best way to move the meeting along faster so that it ends in time is to move divergent topics to a separate list to be discussed later. This would remove the unimportant topics from that specific meeting and allow the very specific important topics to be discussed thoroughly in that meeting, thus moving it along but still being as efficient as possible. The divergent topics can be scheduled to be discussed at a later date when they are of a higher priority.
At January 1, 2019, Betty DeRose, Inc. had an allowance for bad debts with a $4,500 credit balance. During 2019, Betty wrote-off as uncollectible accounts receivable in the amount of $6,200. At December 31, 2019, Betty had total accounts receivable of $216,000 and prepared the following aging schedule: Accounts Receivable % Uncollectible not past due $100,000 1% 1-30 days past due 60,000 4% 31-60 days past due 27,000 8% 61-90 days past due 19,000 26% over 90 days past due 10,000 40% total accounts receivable $216,000 Calculate the net realizable value of Betty DeRose's accounts receivable at December 31, 2019.
Answer:
$16,200
Explanation:
The bad debt expense has beginning balance of $4,500. Bad debt written of during 2019 is $6,200. The total account receivable is $216,000.
$100,000 * 1% = $1000
$60,000 * 4% =$2400
$27,000 * 8% =$2160
$19,000 * 26% =$4940
$10,000 * 40% =$4000
The total of uncollected is $14,500
The bad debt of the current year is $4500 - $6200 = $1700
March 1 Paid monthly rent of $890. 3 Performed services for $100 on account. 5 Performed services for cash of $55. 8 Purchased equipment for $445. The company paid cash of $60 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $390. 22 Paid utilities of $54. 24 Borrowed $1,110 from Grafton State Bank by signing a note. 27 Paid $160 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,330 for six months of insurance. Journalize the transactions.
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
A manufacturer produces 1,000 basketballs each day, which it sells to customers for $30 each. All costs associated with production and sales total $10,000; however, if the manufacturer were to produce one additional basketball per day, total costs would increase to $10,100. From these amounts, we can tell that:________
a. the firm has negative profit.
b. marginal cost equals $100.
c. marginal cost equals $150.
d. marginal cost equals marginal revenue.
Answer:
b. marginal cost equals $100.
Explanation:
Marginal Cost is the cost of one extra unit produced.
Marginal Cost = $10,100 - $10,000 = $100
Marginal revenue is revenue earned per extra j
Unit sold. Marginal revenue equals price. $30
Marginal cost is greater than marginal revenue
Profit = Total revenue - Total cost = (1,000 × $30) - $10,000 = $20,000
Profit is positive
I hope my answer helps you
Journalize the July transactions.
Martin Johnson opened Seaside Cleaning Service on July 1, 2019. During July, the company completed the following transactions:
July 1 Owner Martin Johnson invested $39,870 cash and $7,545 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $2,500 cash and the balance on account.
3 Purchased cleaning supplies for $1,794 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $4,813 for cleaning services.
15 Received $1,650 from customers for future cleaning services.
18 Paid $1,200 of amount owed on truck.
20 Paid $698 for employee salaries.
21 Collected $3,632 from customers billed on July 12.
25 Billed customers $6,275 for cleaning services.
31 Paid gasoline for the month on the truck, $297.
31 Owner Martin Johnson withdrew $1,000 for personal use.
Adjustments:
July 31 Earned but unbilled fees at July 31 were $2,476.
Depreciation on truck for the month was $175.
Earned $450 of payment received on July 15.
One-twelfth of the insurance expired.
An inventory count shows $521 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $287.
Answer:
Transactions :
July 1
Cash $39,870 (debit)
Cleaning Equipment $2,500 (debit)
Capital $42,370 (credit)
July 1
Truck $10,500 (debit)
Cash $2,500 (credit)
Accounts Payable $8,000 (credit)
July 3
Cleaning Supplies $1,794 (debit)
Accounts Payable $1,794 (credit)
July 5
Prepaid Insurance $1,800 (debit)
Cash $1,800 (credit)
July 12
Trade Receivable $4,813 (debit)
Service Revenue $4,813 (credit)
July 15
Cash $1,650 (debit)
Deferred Revenue $1,650 (credit)
July 18
Accounts Payable $1,200 (debit)
Cash $1,200 (credit)
July 20
Cash $3,632 (debit)
Accounts Receivable $3,632 (credit)
July 25
Trade Receivables $6,275 (debit)
Service Revenue $6,275 (credit)
July 31
Utilities : Gasoline $297 (debit)
Cash $297 (credit)
July 31
Capital $1,000 (debit)
Cash $1,000 (credit)
Adjustments:
July 31
Cash $2,476 (debit)
Deferred Revenue $2,476 (credit)
July 31
Depreciation $175 (debit)
Accumulated Depreciation $175 (credit)
July 31
Deferred Revenue $450 (debit)
Revenue $450(credit)
July 31
Insurance Expense $150 (debit)
Insurance Prepaid $150 (credit)
July 31
Supplies Inventory $521 (debit)
Income statement $521 (credit)
July 31
Wages $287 (debit)
Wages Payable $287 (credit)
Explanation:
Journal entries have been made for both the transactions and adjustments that occurred during the period.
Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.
You have graduated from college and, after working hard for ten years, have scraped enough money together to make a down payment on a forty-acre farm within driving distance to the small city where you work in Colorado. In town at lunch one day, you run into an old friend from high school, Hayley Mills, who tells you that she is saving her money to start a high-end consignment shop in town. You allow her to have a room in your house for a few months until she has enough money to go into business. Over the following weeks, however, you realize that old acquaintances from high school are stopping by almost daily for short visits. When you bring this up to Hayley, she admits that many old friends are now relying on her for marijuana. She is not a licensed caregiver in Colorado and is clearly violating the law. Out of loyalty, you tell her that she has three weeks to move out, but you do not prevent her from continuing sales while she is there. What crime have you committed?
Answer:
A conspiracy crime
Explanation:
Note that the tem consipiracy could also mean knowingly supporting directly or indirectly in a set course of action with another.
Thus, since the homeowner did not prevent the illegal actions of her acquaintance out of loyalty for her, the homeowner became part of an illegal drug sale conspiracy. This is further evident from the fact that the homeowner
gave the acquaintance three weeks to move out; in a sense giving more ample time for the illegal transactions.
You have $ 69 comma 000 69,000. You put 25 25% of your money in a stock with an expected return of 10 10%, $ 39 comma 000 39,000 in a stock with an expected return of 14 14%, and the rest in a stock with an expected return of 18 18%. What is the expected return of your portfolio? brainly
Answer: 13.72%
Explanation:
Here is the complete question:
You have 69,000. You put 25% of your money in a stock with an expected return of 10%, 39,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The weight of the investment in stock with the expected return of 10% = 25% = 25/100 = 0.25
The weight of investment in the stock with an expected return of 14% = 39000/69000 = 0.57
Therefore, the weight of the investment in stock with an expected return of 18% = 1-(0.25+0.57) = 1 - 0.82 = 0.18
Expected return of the portfolio:
= (10 × 0.25) + (14 × 0.57) + (18 × 0.18)
= 2.5 + 7.98 + 3.24
= 13.72%
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2
Answer:
The straight line depreciation will result in highest net income in year 2.
Explanation:
a. Straight Line:
( Cost - residual value ) / useful life
( $25,000 - $3,000 ) 5
Depreciation = $4,400
b. Units of production:
( cost * annual production ) / Total expected production over life
Year 1: $25,000 * 2,000 units / 10,000 units = $5,000
Year 1: $25,000 * 3,000 units / 10,000 units = $7,500
c. Double declining balance:
100% / 5 years = 20% * 2 = 40%
Year 1: $25,000 * 40% = $10,000
Year 2: $15000 * 40% = $6,000
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure. A new, safe method of memory enhancement became available for purchase. Professors required each student to buy 10 textbooks, regardless of the price. As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.
Answer:
- The quality and design of calculators improved dramatically from 2017 to 2019.
- A new, safe method of memory enhancement became available for purchase.
- As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.
Explanation:
Remember, regarding the prices for the textbooks the factors of demand applies that is why when prices increase, it might result in an overstating; which means inflation in the cost of going to college.
Also, just as improvements in the memory of calculators involves additional expenses, it results in inflation. Overall, all these circumstances can result in such inflation.
The true statements are
The quality and design of calculators improved dramatically from 2017 to 2019.
A new, safe method of memory enhancement became available for purchase.
As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.
Price index:In the given situation, the statement that need to be considered is that when the design and quality of calculated improved, the new & safe method should be available, and in the case when the price of the textbook rises so more students used book market rather reserving libraries book.
Learn more about the reserve here: https://brainly.com/question/3017294
Mifflin Co. reported the following for the current year.
Net sales $60,000
Cost of goods sold $38.000
Beginning balance in accounts receivable $14.000
Ending balance in accounts receivable $ 6,000
Compute (a) accounts receivable turnover and (b) days’ sales uncollected. Hint: Recall that accounts receivable turnover uses average accounts receivable, and days’ sales uncollected uses the ending balance in accounts receivable.
Can an object accelerate if it's moving with constant speed? Yup! Many people find this counter-intuitive at first because they forget that changes in the direction of motion of an object—even if the object is maintaining a constant speed—still count as acceleration.Acceleration is a change in velocity, either in its magnitude—i.e., speed—or in its direction, or both. In uniform circular motion, the direction of the velocity changes constantly, so there is always an associated acceleration, even though the speed might be constant. You experience this acceleration yourself when you turn a corner in your car—if you hold the wheel steady during a turn and move at constant speed, you are in uniform circular motion. What you notice is a sideways acceleration because you and the car are changing direction. The sharper the curve and the greater your speed, the more noticeable this acceleration will become. In this section we'll examine the direction and magnitude of that acceleration.The figure below shows an object moving in a circular path at constant speed. The direction of the instantaneous velocity is shown at two points along the path. Acceleration is in the direction of the change in velocity, which points directly toward the center of rotation—the center of the circular path. This direction is shown with the vector diagram in the figure. We call the acceleration of an object moving in uniform circular motion—resulting from a net external force—the centripetal acceleration
A combination of news covered by the media that boosts sales without having to pay is best described by the term ________. (1pts) Question 5 - A combination of news covered by the media that boosts sales without having to pay is best described by the term ________. Select bootstrap marketing as your answer bootstrap marketing Select entertailing as your answer entertailing Select public relations as your answer public relations Select data mining as your answer data mining
Answer:
Public relations.
Explanation:
Public relations is a combination of news covered by the media that boosts sales without having to pay.
Public relations involves the process of professionally maintaining and sustaining a favourable public perception and image by an organization or an elite.
As a rule, every organization makes it a standard to always go for the best public relations manager, so as to have a competitive advantage over industry rivals and to boost their public image or reputations.
Hence, PR managers use public relations, as a strategic communication process to issue and disseminate quality informations between their principal (usually an individual) or an organization and the public, in order to build a mutualistic relationship.
Ocean Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2017:1. Sales Revenue, $516,0002. Accounts Receivable, beginning balance, $97,0003. Accounts Receivable, ending balance, $63,000Compute the collections from customers.A.$453,000B.$550,000C.$356,000D.$160,000
Answer:
The answer is B. $550,000
Explanation:
Collection from customers is a line item in operating activities under cash flow. It is the total amount of money business collected from customers for its sales on credit.
Beginning receivable -------$97,000
Add:
Sales revenue------------------$516,000
Less:
Ending receivable-------------$63,000
Collections from customers-- $550,000
Describe the procedure of preparing vision and mission statement of an organisation
g Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales of $43,000 and variable expenses of $11,980. Product H50G had sales of $56,000 and variable expenses of $14,750. The fixed expenses of the entire company were $46,180. The break-even point for the entire company is closest to:
Answer:
$63,260
Explanation:
Break-even point is the level of Activity where a firm neither makes a profit nor a loss.
Break even point (Dollars) = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio
Is calculated as := Contribution / Sales
= (Sales less Variable Costs) / Sales
= ($43,000+$56,000-$11,980-$14,750) / $99,000
= $72,270/$99,000
= 0.73
Break even point (Dollars) = $46,180 / 0.73
= $63,260
At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The cash flow from Lehnhoff's operating activities totaled $325 million. Lehnhoff issued $500 million in common stock. Lehnhoff's notes payable decreased by $100 million. Lehnhoff purchased fixed assets totaling $600 million. How much cash did Lehnhoff Inc. have on its balance sheet at the end of 2002
Answer:
The multiple choices are:
a. $200 Million
b. $50 Million
c. $1.4 Billion
d. $100 Million
The correct option is A,$200 million
Explanation:
The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:
Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities
increase in cash in the year=$325+($500-$100)-$600=$125 million
cash at the end of the year=$125 +$75=$200 million
The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a retail shoe store
1. Issued 115,000 shares of common stock in exchange for $575,000 cash.
2. Purchased furniture and fixtures at a cost of $95,000. $38,000 was paid in cash and a note payable was signed for the balance owed
3. Purchased inventory on account at a cost of $230,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $391,000. The cost of the goods sold was $195,500
5. Paid $5,000 in rent on the store building for the month of June
6. Paid $2,640 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2018
7. Paid $166,175 on account for the merchandise purchased in 3
8. Collected $78,200 from customers on account.
9. Paid shareholders a cash dividend of $5,750
10. Recorded depreciation expense of $1,900 for the month on the furniture and fixtures
11. Recorded the amount of prepaid insurance that expired for the month.
Required
Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 01 Cash 575,000 Common stock 575,000
Answer:
See the journal entries below.
Explanation:
Tr. General Journal Dr ($) Cr ($)
1. Cash 575,000
Common stock 575,000
(To record common stock issued for cash.)
2. Furniture and fixtures 95,000
Cash 38,000
Note payable 57,000
(To record purchase of furniture and fixtures.)
3. Merchandise inventory 230,000
Account payable 230,00
(To record inventory purchased on account.)
4a. Account receivable 391,000
Sales 391,00
(To record credit sales).
4b. Cost of goods sold 195,500
Merchandise inventory 195,000
(To record cost of inventory sold.)
5. Rent expenses 5,000
Cash 5,000
(To record interest paid for June.)
6. Prepaid insurance 2,640
Cash 2,640
(To record prepaid insurance.)
7. Account payable 166,175
Cash 166,175
(To record payment for merchandise inventory bought on account.)
8. Cash 78,200
Account receivable 78,200
(To record cash received from customer.)
9. Dividend paid 5,750
Cash 5,750
(To record cash dividend paid.)
10. Depreciation expenses 1,900
Accumulated Dep. - F $ F 1,900
(To record record depreciation expenses for Furniture & F.)
11. Insurance expenses (2,640 / 12) 220
Prepaid insurance 220
(To record insurance expenses for the month.)
g Job 397 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 44,000 Direct labor-hours 630 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 2,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $12 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.
Answer:
$29.56
Explanation:
The computation of unit product cost is shown below:-
Unit product cost = (Direct material + Direct labor + Manufacturing overhead) ÷ Number of units completed
= ($44,000 + (63 × $12) + ($12 × 630)) ÷ 2,000
= ($44,000 + $7,560 + $7,560) ÷ 2,000
= $59,120 ÷ 2,000
= $29.56
Therefore for computing the unit product cost we simply applied the above formula.
Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $5,430. June 11. Paid $1,705 for installation of a hydraulic lift. Nov. 30. Paid $41 to change the oil and air filter. Prepare the journal entries for each expenditure.
Answer:
The journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
June. 11
Delivery Truck 1,705
Cash 1,705
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
Explanation:
According to the given data, the journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
(To record the replacement of transmission at a cost of $5,430 and capitalizingthe transmission cost)
June. 11
Delivery Truck 1,705
Cash 1,705
(To record the installation of hydraulic lift and capitalization of installation expenses)
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
(To record the payment for changing the oil and air filter)
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. What do these requirements achieve? Check all that apply. They help to control the money supply. They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash. They mean that banks must have one dollar of deposits for every dollar it loans. They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.
Answer:
The correct answer to the following question will be Option B.
Explanation:
These conditions hopefully reduce banking crises as well as quantify the community against banks never running cash. The criteria for the reservation were established to be doing the ends of the next day.Amount of inter-bank payments, these funds also convince the public which banks aren't going to make many such mortgages.Other available options have no connection with the particular circumstance. So the answer to the above seems to be the right one.
g You currently hold an inflation-indexed bond, which pays out real coupons of 10% per year, starting one year from now. The bond has a real face value of $600, and will mature three years from today. If inflation over the next year will be 2% per year for the next three years, what will be the total nominal payment you will receive at the date of maturity
Answer:
$618 dollars
Explanation:
The beginning face value will be our starting position: $600
Then, we have a 2 percent increase over the next three years
this makes for a principal at maturity of:
600 x (1 + 2% x 3 years ) = $618
This makes each coupon return in coins to also increase over time as, they are calcualted based on the adjusted face vale. This method iguarantee the 10% return on the bond regardless of inflation during the period.
Revise the following sentences to emphasize the perspective of the audience and the "you" view.
1. To help us process your order with our new database software, we need you to go to our website and fill out the customer information required.
Answer:
You are required to go to our website to fill out the required customer information. This will help us process your order.
Explanation:
The customer or client does not need to be informed of the existence of our new database software. We can simply request the customer to fill out the enclosed form by going to our website. This approach is more business-like and courteous. It emphasizes the customer as the subject and what the customer is required to do. The focus is shifted to the customer and not to the company. The customer learns immediately that his or her actions (going to the website and filling the form) are in their own interest.
