Answer:
its c and dont remove it this time eroupa
Explanation:
Looking through pages to find information that you have already identified is know as:
A) scanning
B) skimming
C) integration
D)previewing
A.
because as you're passing the page you are scanning it and looking for the answer
Answer: scanning
Explanation: i said so
On January 1, Year 1, the Charleston Company (Charleston) issues bonds with a face value of $100,000 and a stated annual cash interest rate of 6% for $86,410 in cash to yield an assumed effective interest rate of 8%. Interest is paid every June 30th and December 31st, and the effective-rate method is being applied. What amount of interest expense should Charleston report for the year ending December 31, Year 2
Answer:
$7,007
Explanation:
Amount of payment = $100,000 * 3%
Amount of payment = $3,000
Interest expenses = Carrying amount * 4%
Amortization of discount = Amount of payment - Interest expenses
Carrying value = Previous carrying value + Current Amortization of discount
Year Amount of Interest Amortization Carrying
payment Expenses of discount value
Jan 1, Y1 $86,410
Jun 30, Y1 $3,000 $3,456 $456 $86,866
Dec 31, Y1 $3,000 $3,475 $475 $87,341
Jun 30, Y2 $3,000 $3,494 $494 $87,835
Dec 31, Y2 $3,000 $3,513 $513 $88,348
Interest expense for December 31, Year 2 = $3,494 + $3,513 = $7,007. So, $7,007 is the amount of interest expense should Charleston report for the year ending December 31, Year 2.
Borner Communications’ articles of incorporation authorized the issuance of 165 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:
Shareholders’ Equity ($ in millions)
Common stock, 150 million shares at $1 par $150
Paid-in capital – excess of par 450
Retained earnings 260
Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares). Record the appropriate journal entry for each of the following transactions:
On January 7, 2021, Borner reacquired 2 million shares at $6.50 per share.
On August 23, 2021, Borner reacquired 4 million shares at $3.00 per share.
On July 25, 2022, Borner sold 3 million common shares at $8 per share.
Answer:
1. January 07,2021
Dr Common stock $2 million
Dr Paid-in capital—excess of par
Dr Retained earnings $5 million
Cr Cash $13 million
2. August 23,2021
Dr Common stock $4million
Cr Paid-in capital—excess of par $12million
Dr Paid-in capital—share repurchase$4million
Cr Cash $12million
3. July 25, 2022
Dr Cash $24 million
Cr Common stock $3million
Cr Paid-in capital—excess of par $21 million
Explanation:
Preparation of the appropriate journal entry for each of the transaction
1. January 07,2021
Dr Common stock $2 million
(2 million shares *$1)
Dr Paid-in capital—excess of par
[2 million shares *($450/150 million shares)] $6 million
Dr Retained earnings $5 million
($13 million-$2 million-$6million)
Cr Cash $13 million
(2 million shares *$6.50 per share)
(To record 2 million shares reacquired at $6.50 per share)
2. August 23,2021
Dr Common stock $4million
(4 million shares *$1)
Cr Paid-in capital—excess of par $12million
[4 million shares *($450/150 million shares)
Dr Paid-in capital—share repurchase$4million
[($12million+$4million)-$12million)
Cr Cash $12million
(4 million shares * $3.00 per share)
(To record 4 million shares reacquired at $3.00 per share)
3. July 25, 2022
Dr Cash $24 million
(3 million common shares *$8 per share)
Cr Common stock $3million
(3 million shares *$1)
Cr Paid-in capital—excess of par $21 million
( $24 million-$3million)
(To record 3 million shares reacquired at $8.00 per share)
Blossom, Inc. began work in 2021 on a contract for $20720000. Other data are as follows: 2021 2022 Costs incurred to date $8880000 $13900000 Estimated costs to complete 5920000 0 Billings to date 6960000 20800000 Collections to date 4960000 17900000 If Blossom uses the percentage-of-completion method, the gross profit to be recognized in 2021 is $3552000. $4000000. $5560000. $5920000.
Answer:
the gross profit using the percentage-of-completion method is $3,552,000
Explanation:
The computation of the gross profit using the percentage-of-completion method is given below
= Contract Value × given percentage - total cost incurred
= $20,720,000 × $8,880,000 ÷ ($8,880,000 + $5,920,000) - $8,880,000
= $12,432,000 - $8,880,000
= $3,552,000
hence, the gross profit using the percentage-of-completion method is $3,552,000
1. Which of the following words is generally used to describe what managers do as opposed to what leaders do?
O A. Organize
O B. Inspire
O C. Innovate
O D. Influence
Mercury Inc. purchased equipment in 2019 at a cost of $169,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $49,000. The equipment was sold for $103,800 part way through 2021. Actual production in each year was: 2019 = 42,000 units; 2020 = 67,000 units; 2021 = 34,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $114,800, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3.
Answer:
Mercury Inc.
1. The loss on the sale of the equipment = $8,000.
2. Journal Entry to record the sale:
Debit Cash $103,000
Credit Sale of Equipment $103,000
To record the receipts from the sale.
Debit Sale of Equipment $111,800
Credit Equipment $111,800
To transfer the account to the Sale of Equipment.
Debit Accumulated Depreciation $57,200
Credit Sale of Equipment $57,200
To transfer the account to sale of equipment.
3. The gain on the sale is $3,000
4. Journal Entry to record the sale in requirement 3:
Debit Cash $114,800
Credit Sale of Equipment $114,800
To record the receipts from the sale.
Debit Sale of Equipment $111,800
Credit Equipment $111,800
To transfer the account to the Sale of Equipment.
Debit Accumulated Depreciation $57,200
Credit Sale of Equipment $57,200
To transfer the account to sale of equipment.
Explanation:
a) Data and Calculations:
Cost of equipment = $169,000
Expected production units = 300,000
Estimated useful life = 5 years
Estimated residual value = $49,000
Proceeds from the sale of equipment = $103,000
Depreciable amount = $120,000 ($169,000 - $49,000)
Depreciation expense per unit = $0.40 ($120,000/300,000)
Actual production: Depreciation Expense for the year
2019 = 42,000 units * $0.40 = $16,800
2020 = 67,000 units * $0.40 = $26,800
2021 = 34,000 units * $0.40 = $13,600
Accumulated depreciation = $57,200
Net book value = $111,800 ($169,000 - $57,200)
Loss on sale of equipment = $8,800 ($111,800 - $103,000)
Sale of equipment for $114,800
Gain on sale of equipment = $3,000 ($111,800 - $114,800)
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Answer:
Fordman Company
A Schedule of Equivalent Units (Weighted-Average Method)
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
Explanation:
a) Data and Calculations:
Units transferred from Grinding Department = 20,000
Cost of units transferred = $40,000
Polishing Department's
Physical Flow Schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000 (100% complete)
Units accounted for 24,000
Cost of production:
Direct Conversion Transferred Total
Materials In
Beginning work in process $5,000 $6,000 $8,000 $19,000
Current period 32,000 50,000 40,000 122,000
Total costs of production $37,000 $56,000 $48,000 $141,000
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
Cost per equivalent units:
Direct Materials Conversion Total
& Transferred In
Total costs of production $85,000 $56,000
Total equivalent units 20,000 20,000
Cost per equivalent units $4.25 $2.80
Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:
Old Machine
Cost of machine, 10-year life $89,000
Annual depreciation (straight-line) 8,900
Annual manufacturing costs, excluding depreciation 23,600
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Current estimated selling price of machine 29,700
New Machine
Purchase price of machine, six-year life $119,700
Annual depreciation (straight-line) 19,950
Estimated annual manufacturing costs, excluding depreciation 6,900
Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.
Required:
1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired.
2. Choices of what other factors should be considered
A. Was the purchase price of the old machine too high?
B. What effect does the federal income tax have on the decision?
C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
D. Should management have purchased a different model of the old machine?
E. Are there any improvements in the quality of work turned out by the new machine?
Answer:
Lexigraphic Printing Company
1. Differential Analysis as of April 30:
Old Machine New Machine Difference
Annual revenue $74,200 $74,200
Annual depreciation (straight-line) 8,900 19,950
Annual manufacturing
costs, excluding depreciation 23,600 6,900
Annual nonmanufacturing
operating expenses 6,100 6,100
Total expenses $38,600 $32,950
Annual net income $35,600 $41,250 $5,650
Net income for 6 six years $213,600 $247,500 $33,900
2. Other factors that should be considered are:
B. What effect does the federal income tax have on the decision?
C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
E. Are there any improvements in the quality of work turned out by the new machine?
Explanation:
a) Dat and Calculations:
Old Machine
Cost of machine, 10-year life $89,000
Annual depreciation (straight-line) 8,900
Annual manufacturing costs, excluding depreciation 23,600
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Current estimated selling price of machine 29,700
New Machine
Purchase price of machine, six-year life $119,700
Annual depreciation (straight-line) 19,950
Estimated annual manufacturing costs, excluding depreciation 6,900
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Differential Analysis as of April 30:
Old Machine New Machine Difference
Annual revenue $74,200 $74,200
Annual depreciation (straight-line) 8,900 19,950
Annual manufacturing
costs, excluding depreciation 23,600 6,900
Annual nonmanufacturing
operating expenses 6,100 6,100
Total expenses $38,600 $32,950
Annual net income $35,600 $41,250 $5,650
Net income for 6 six years $213,600 $247,500 $33,900
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected benefit obligation Plan Assets Value
2011 $2,000,000 $1,900,000
2012 2,400,000 2,500,000
2013 2,950,000 2,600,000
2014 3,600,000 3,000,000
The average remaining service life per employee in 2011 and 2012 is 10 years and in 2013 and 2014 is 12 years. The net gain or loss that occurred during each year is as follows: 2011, $280,000 loss; 2012, $90,000 loss; 2013, $11,000 loss; and 2014, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Corridor and Minimum Loss Amortization
Year Projected Benefit Plan 10% Accumulated Minimum Amortization
Obligation (a) Assets Corridor OCI (G/L) (a) of Loss
2011 $2,000,000 $1,900,000 $200,000 $ 0 $0
2012 2,400,000 2,500,000 250,000 280,000 3,000(b)
2013 2,950,000 2,600,000 295,000 367,000(c) 6,000(d)
2014 3,600,000 3,000,000 360,000 372,000(e) 1,000(f)
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Answer:
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
Explanation:
Calculation for the net gain or loss amortized and charged to pension expense under the corridor approach
Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss
2011 $2,000,000 $1,900,000 $200,000 $ 0 $0
2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)
2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)
2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)
Calculation for 10%Corridor
2011 $0
2012 10%*$2,500,000 =$250,000
2013 10%*$2,950,000 =$295,000
2014 10%*$3,600,000 =$360,000
Calculation for Accumulated Depreciation and Minimum Amortization of Loss
a. As at the beginning of the year
b. ($280,000 – $250,000) ÷ 10 years = $3,000
c. $280,000 – $3,000 + $90,000 = $367,000
d. ($367,000 – $295,000) ÷ 12 years = $6,000
e. $367,000 – $6,000 + $11,000 = $372,000
f ($372,000 – $360,000) ÷ 12 years = $1,000
Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated Depreciation
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 252,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
Answer:
a. 40 % and $630,000
b. $ 270,000
Explanation:
The contribution margin ratio = Contribution ÷ Sales
The dollar sales volume required to break even = Fixed Cost ÷ contribution margin ratio
the margin of safety (in dollars) - company sells 20,000 units = Expected Sales - Break even Sales
When you use the Redo command, you redo the action that was just completed.
a. True
b. False
Navi-devices Inc., a manufacturer of portable navigation devices, provides free traffic updates and identifies the nearest parking spaces available with its latest device. It accomplishes this by using GPS coordinates of subscribers and traffic data from radio stations. Which of the following is the most likely impact of this strategy?
a. It will improve the company's operations management.
b It will improve their customer relationship management.
c. It will lower their total revenue.
d. It will provide the company with a competitive advantage.
Answer:
Navi-devices Inc.
The most likely impact of this strategy is:
d. It will provide the company with a competitive advantage.
Explanation:
The strategy of "providing free traffic updates and identifying the nearest parking spaces for its subscribers" will greatly benefit the company's customers. These free services lower the cost for customers and provide an advantage for the company to reach out to more loyal subscribers for its portable navigation devices. However, competitive advantages are not everlasting. They can easily be copied by competitors. This will level the advantage to zero. This implies that Navi-devices must innovate to remain competitive.
Johnny Cake Ltd. has 30 million shares of stock outstanding selling at $40 per share and an issue of $40 million in 8 percent, annual coupon bonds with a maturity of 13 years, selling at 96.5 percent of par ($1,000). If Johnny Cake's weighted average tax rate is 33 percent, its next dividend is expected to be $4.00 per share, and all future dividends are expected to grow at 7 percent per year, indefinitely, what is its WACC
Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
w represents the weight of each component based on market value in the capital structurer represents the cost of each componentD and E represents debt and equity respectivelyTo calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
9. The difference between a C Corp and an S Corp is
A. only a C Corp has a board of directors.
B. all companies must start
C Corps and become S Corps.
C. the tax code that each uses is different.
D. the personal assets of a C Corp owner belong to the business.
Answer:
the tax code that each uses is different.
Answer:
c. the tax code that each uses is different
Explanation:
At the beginning of his current tax year, David invests $11,700 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $560 in interest ($280 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.6 percent. (Round your intermediate calculations to the nearest whole dollar amount.)
Answer: $419.96
Explanation:
Question is:
How much interest income will he report this year if he elects to amortize the bond premium?
The interest for the first period will be:
= Bond price * yield * 6/12 months
= 11,700 * 3.6% * 0.5
= $211
Bond premium amortization:
= Interest received - Interest
= 280 - 211
= $69
Bond value in second half of year:
= Bond value - Bond premium amortization:
= 11,700 - 69
= $11,631
Interest for second period:
= 11,631 * 3.6% * 0.5
= $209.36
Total interest = 210.60 + 209.35
= $419.96
Sage Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $367,600. At December 31, 2020, the raw material had declined in price to $334,840. What entry would you make on December 31, 2020, to recognize these facts
Answer:
Dr Unrealized Holding $32,760
Cr Estimated Liabilities $32,760
Explanation:
Preparation of What entry would you make on December 31, 2020, to recognize these facts
Based on the information given the Joi entry you would make on December 31, 2020, to recognize these facts will be :
December 31, 2020
Dr Unrealized Holding $32,760
Cr Estimated Liabilities $32,760
($367,600-$334,840)
Demand is the relationship between what consumers __ and __ to buy at various prices.
Answer:
willing and able
Explanation:
The demand for a product is the relationship between what consumers are willing and able to buy at the various prices. It is important to note that the ability to pay for the product or service is a key element of the demand definition. According to the law of the demand, the quantity of the product demanded will decrease as the price goes up and vice versa.
Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was a.13,700
Answer:
Number of equivalent units= 13,700
Explanation:
All materials are added at the beginning of the process.
To calculate the equivalent units using the FIFO method, we need to use the following structure:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Replacing:
Beginning work in process = 3,000*0%= 0
Units started and completed = 15,000 - 3,000= 12,000
Ending work in process completed= 1,700*100%= 1,700
Number of equivalent units= 13,700
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH DEMAND (UNITS)
January 4,130
February 4,230
March 3,930
April 4,330
May 4,930
June 4,630
July 5,230
August 4,830
September 5,330
October 5,630
November 6,230
December 5,930
Required:
Using linear regression technique, what would you estimate demand to be for each month next year?
Answer:
First month of next month ( x = 13) = 6170
second month ( x = 14 ) = 6389
Explanation:
Determine the estimate demand for each month next year ( use Linear regression )
Linear regression equation: y = a + bx
a = intercept between regression line and y-axis
b = slope of regression
x = month
y = demand
Using excel table attached below
∑x = 78
∑xy = 413340
∑y = 59360
∑(x)^2 = 650
N = 12
(∑x )^2 = 6084
next we will calculate the slope and intercept value
b ( slope ) = ( 12 * 413340 ) - ( 78 * 59360 ) / ( 12 * 650 - 6084 )
= 330,000 / 1716 = 192.31
intercept ( a ) = 59360 - ( 192.31 * 78 ) / 12 = 3696.65
Back to equation 1 :
Linear regression equation = Y = 3696.65 + 192.31 x
where x = number of month ( i.e. 13 , 14 ….. 24 )
To determine the estimate demand for each month next month
Linear regression equation : Y = 3696.65 + 192.31 x
first month of next month ( x = 13) = 3696.65 + 192.31 * ( 13 )
second month ( x = 14 ) = 3696.65 + 192.31 * ( 14 )
Note : apply same equation to every month ( i.e. from x = 15 to 24 ) to determine the estimate demand for each month
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$840,000 Not yet due 1.25%
336,000 1 to 30 days past due 2.00
67,200 31 to 60 days past due 6.50
33,600 61 to 90 days past due 32.75
13,440 Over 90 days past due 68.00
Required:
Prepare the adjusting entry to record bad debts expense.
Answer:
Jarden Co
Adjusting Entry
December 31:
Debit Bad Debts Expense $27,731
Credit Allowance for Doubtful Accounts $27,731
To record bad debts expense.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts, unadjusted credit balance = $14,000
Accounts Age of Accounts Expected % Uncollectible
Receivable Receivable Uncollectible Allowance
$840,000 Not yet due 1.25% $10,500 ($840,000*1.25%)
336,000 1 to 30 days past due 2.00 6,720 ($336,000*2%)
67,200 31 to 60 days past due 6.50 4,368 ($67,200*6.5%)
33,600 61 to 90 days past due 32.75 11,004 ($33,600*32.75%)
13,440 Over 90 days past due 68.00 9,139 ($13,440*68%)
$1,290,240 $41,731
T-account:
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $14,000
Bad Debts Expense 27,731
Ending balance $41,731
These are selected 2022 transactions for Pronghorn Corporation:
Jan. 1 Purchased a copyright for $117,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years.
Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $60,000.
Sept. 1 Purchased a small company and recorded goodwill of $147,000. Its useful life is indefinite.
Required:
Prepare all adjusting entries at December 31 to record amortization required by the events.
Answer:
December 31, 2022, amortization expense of copyright
Dr Amortization expense 19,500
Cr Copyright 19,500
December 31, 2022, amortization expense of patent
Dr Amortization expense 10,000
Cr Patent 10,000
No journal entry required for the Goodwill since its useful life is indefinite
Penny Stock is the chairperson of Pirate Recording Company Inc. She is the person responsible for the tremendous growth this company has enjoyed over the past three years. It was Penny's intuition and clever negotiating that enabled the company to sign two very hot recording artists: Half a Dollar and N'elli. These groups have generated profits of over $25 million. The future looks even brighter at the firm because several current and aspiring entertainers have indicated an interest in signing on with Pirate Recording. This incredible growth has delighted everyone at the company, but it has also created a major problem for Penny. Pirate Recording has never been a major player in the recording industry, primarily because of limited capital. In order to take the company to the next level Penny realizes that she will need to expand the firm's personnel and equipment. The amount of new funds required to finance this needed expansion is $150 million. Penny has started to consult with others about how to finance this major expansion of the company. If stock is issued in Pirate Recording, analysts predict that the company has potential for strong growth. The prospects for dividend payments to stockholders, at least in the beginning, are not good. Pirate Recording will need to retain its earnings in order to grow rapidly. The firm's stock would most likely be classified as a(n):
Answer:
Pirate Recording Company Inc.
The firm's stock would most likely be classified as a(n):
growth stock.
Explanation:
Since Pirate Recording Company's stock is expected to grow rapidly more than the market average, it is regarded as a growth stock. Stockholders expect to make more capital gains by selling the stocks in the future than from collecting dividends. As Pirate Recording is in an expansion mood, with new capital injections of $150 million, it will be retaining its earnings to pursue its growth potential, thus, further exciting potential stockholders.
A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,100 pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost. a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering cost of $100.
Answer:
Economic order quantity (EOQ)= 249 pounds
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 3,100
S= $100
H= $10
Economic order quantity (EOQ)= √[(2*3,100*100) / 10]
Economic order quantity (EOQ)= 249 pounds
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,350 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.2 percent. What will be the amount of the balloon payment six years from now
Answer:
Purchase of Tesla Model X Sport Utility Vehicle
The amount of the balloon payment six years from now is:
= $39,322.67.
Explanation:
a) Data and Calculations:
Cost of vehicle = $94,000
Period of loan = 6 years
Terms: No down payment and no monthly payments during the first year.
Monthly payment after the first year = $1,350
Total payments to be made = $104,122.67
The total payments including interest from an online financial calculator:
Payoff: 6 years 5.13 months
You will need to pay $1,350.00 every month for 6 years 5.13 months to payoff the debt.
Monthly Payment $1,350.00
Time Required to Clear Debt 6.43 years
Total of 77.13 Payments $104,122.67
Total Interest $10,122.67
Total monthly payments from second year to fifth year = $64,800 ($1,350 * 48)
Expected balloon payment to cover the remaining principal = $39,322.67 ($1014,122.67 - $64,800)
. It is important to conserve fossil fuels because
Answer:
Non-renewable resources (energy).
Explanation:
Renewable energy is also known as clean energy and it can be defined as a type of energy that are generated through natural sources or technology-based processes that are replenished constantly. Some examples of these natural sources are water (hydropower), wind (wind energy), sun (solar power), geothermal, biomass, waves etc.
Basically, a renewable energy source is sustainable and as such can not be exhausted.
On the other hand, a non-renewable energy refers to an energy source such as fossil fuels that takes a very long time to be created or their creation happened long ago and isn't likely to happen again e.g uranium. Fossil fuels, such as coal, oil, and natural gas, come from deep inside the Earth where they formed over millions of years ago.
Hence, it is very important to conserve fossil fuels because they are non-renewable resources (energy), unstainable and can be exhausted.
A fixed cost: Multiple Choice Is irrelevant for cost-volume-profit and short-term decision making. Changes with changes in the volume of activity within the relevant range. Does not change with changes in the volume of activity within the relevant range. Is directly traceable to a cost object. Requires the future outlay of cash and is relevant for future decision making.
Answer:
Does not change with changes in the volume of activity within the relevant range
Explanation:
The fixed cost is the cost that remains fixed whether the production level is increased or it should remain the fixed. The examples like depreciation expense, rent expense, etc
So it does not change when the volume of activity vary
Therefore the third option is correct
And, the rest of the options are incorrect
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next three months. You do not know whether it will go up or down, however. The current price of the stock is $100 per share, and the price of a 3-month call option at an exercise price of $100 is $10.
Required:
a. If the risk-free interest rate is 5% per year, what must be the price of a 3-month put option on P.U.T.T. stock at an exercise price of $140?
b. What would be a simple options strategy to exploit your conviction about the stock price?
Answer:
A. $7.65
B. $ 17.65
$ 18.07
Explanation:
A. Calculation to determine the price of a 3-month put option on P.U.T.T. stock at an exercise price of $100
Using this formula
P = C-S+[X/(1+r)T]
Let plug in the formula
P = 10-100+[100/(1+0.10)1/4]
P = 10-100+[100/(1.10)1/4]
P = 10-100+[100/1.0241]
P = 10-100+97.65
P = 10-2.35
P = $7.65
Therefore the price of a 3-month put option on P.U.T.T. stock at an exercise price of $100 will be $7.65
B. Calculation for the Stock price future movements
Total cost of straddle option = $10+$ 7.65
Total cost of straddle option= $ 17.65
Therefore Stock price future movements is $ 17.65
Calculation to determine the profit on your initial investment
Profit=$ 17.65*(1.10)^1/4
Profit=$ 17.65*1.0241
Profit= $ 18.07
Therefore the profit on your initial investment will be $ 18.07
The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.
Work in Process Inventory Beginning
WIP 6,000
Direct materials 48,600
Direct labor 31,100
Applied overhead 17,300
To finished goods
Ending WIP 31,100
The cost of jobs transferred to finished goods is: _________
Answer:
$71,900
Explanation:
Calculation to determine The cost of jobs transferred to finished goods
Work in Process Inventory Beginning
Add WIP 6,000
Add Direct materials 48,600
Add Direct labor 31,100
Add Applied overhead 17,300
Less Ending WIP 31,100
FINISHED GOODS $71,900
Therefore The cost of jobs transferred to finished goods is: $71,900
Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel, then the price per share of the Rearden immediately after the announcement will be closest to:
Answer: $19.12
Explanation:
The price per share of the Rearden immediately after the announcement will be calculated as the addition of the current prices for the companies divided by the total number of shares after merger. This will be:
= (20 × 10) + (15 × 4) / (10 + 3.6)
= (200 + 60) / 13.6
= 260 / 13.6
= 19.12
The price per share is $19.12
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,510,000 2,500 2,512,500 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,605,000 Operating expenses 606,000 Depreciation expense 24,000 Interest expense 25,000 Income tax expense 71,000 Total expenses Net income 2.331,000 $ 181,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 211,140 73,900 146,500 4,060 $ 154,980 89,000 136,000 6,220 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term Habilities Notes payable Stockholders' equity Common stock Retained earnings Total abilities and stockholders' equity 196.000 210,500 232,000 (229,500) $944,600 110,000 261,000 211,000 (205,500 $ 862,600 30,500 1,200 21,400 $ 89,000 3,100 24,500 226,000 247,000 361,000 280.500 310,000 210.000 $862.600 Additional Information for 2021: 1. Purchase additional investment in stocks for $86,000 2. Sell land costing $50,500 for $53,000, resulting in a $2,500 gain on sale of land. 3. Purchase $21,000 in equipment by issuing a $21.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of 5111,000. 5. Issue common stock for $51.000.
Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method.
Answer:
Net Increase in cash = $56,160
Explanation:
Note: The data in this question are merged together, but see the attached pdf file for how the full question actually appear.
Note: See the attached excel file for the statement of cash flows for Virtual Gaming Systems using the direct method.
From the attached excel file, we have:
Net cash from operating activities = $149,160
Net cash from investing activities = -$33,000
Net cash from financing activities = -$60,000
Net Increase in cash = $149,160 - $33,000 - $60,000 = $56,160
