Answer:
the expected percentage change in the price of the bond using modified duration would be 12%
Explanation:
A= Semi annually= 2
YM= Yield to Maturity= 10%
M= Maturity= 10%
MtD= Maturity duration= 6.76 years
Modified duration (MD)= MtD/1+YM/A
MD= 6.76/1+10%/2= 6.76/1.05= 6.438 approx 6.44 years
Change in Yield to maturity = 8.045%- 10%= -1.955%
Change in percentage Price= -Modified duration*Change in Yield to maturity
Change in percentage Price= -6.44*(--1.955%
)= 12.59%
As an employee in the Lottery Commission, your job is to design a new prize. Your idea is to create two grand prize choices: (1) receiving $50,000 at the end of each year beginning in one year for 20 consecutive years, or (2) receiving $500,000 today followed by a one-time payment at the end of 20 years. Using an interest rate of 6%, which of the following comes closest to the amount prize (2) needs to pay at the end of year 20 in order that both prizes to have the same present value?
a. $ 326,649
b. $ 440,463
c. $ 114,932
d. $ 393,342
e. $ 235,712
Answer:
The correct option is $235,712,option E
Explanation:
The present value of prize(1) can be computed by using the excel pv formula as shown below:
=-pv(rate,nper,pmt,fv)
rate is interest rate of 6%
nper is the number of years payment would be made which is 20
pmt is the amount of money received per year which is $50,000
fv is the total future worth of the prize (1) which is unknown
=-pv(6%,20,50000,0)
=$573,496.06
The difference between present value of prize(1) $573,496.06 and $500,000 receivable from prize (2) today is $73,496.06
The difference is today's worth, its future worth can be computed thus:
FV=PV*(1+r)^n
PV is $73,496.06
r is 6%
n is 20 years
FV=$73,496.06*(1+6%)^20 =$ 235,711.82
The amount that prize (2) needs to pay after 20 years so that both prizes bear the same present value is closer to Option B. $440,463.
Data and Calculations:
N (# of periods) = 20 years
I/Y (Interest per year) = 6%
PMT (Periodic Payment) = $50,000
FV (Future Value) = $0
Results:
Present Value (PV) = $573,496.06
Sum of all periodic payments = $1,000,000.00
Total Interest = $426,503.94
Thus, the amount that prize (2) needs to pay after 20 years so that both prizes bear the same present value is closer to Option B.
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Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $84,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was:
a. $63,000.
b. $84,000.
c. $112,000.
d. $147,00
Answer:
Direct material cost = $112,000
Explanation:
Pre-determined overhead absorption rate rate = Estimated overhead for the period / estimated direct material cost
Pre-determined overhead absorption rate rate (OAR= 75% of direct material cost
Applied overhead = OAR × direct material cost
Applied overhead = 75% × direct material cost
Let direct material cost be represented by y
84,000= 75% × y
y = 84,000/75%= 112000
Direct material cost = $112,000
The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 90,000 units of Product C each year. If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows:
Direct materials $22.80
Direct labor $18.60
Variable manufacturing overhead $14.20
Fixed manufacturing overhead $16.00
Variable selling expense $12.80
Fixed selling expense $8.40
The regular selling price of one unit of Product C is $100.80. A special order has been received by Melrose from Moore Corporation to purchase 3,500 units of Product C during the upcoming year. If this special order is accepted, the variable selling expense will be reduced by 75%. Total fixed manufacturing overhead and fixed selling expenses would be unaffected except that Melrose will need to purchase a specialized machine to engrave the Moore name on each unit of product C in the special order. The machine will cost $6,300 and will have no use after the special order is filled. Assume that direct labor is a variable cost.
Assume that Melrose expects to sell 68,000 units of Product C to regular customers next year. At what selling price for the 3,500 units would Melrose be economically indifferent between accepting and rejecting the special order from Moore?
a. $59.10
b. $60.60
c. $81.10
d. $82.60
Answer:
Indifferent selling price =$67 per units
Explanation:
The selling at which Mel rose would be economically be indifferent between accepting and rejecting the special order from Moore is that that equates the relevant cost of making to the revenue from t
Relevant variable cost making
= 22.80 + 18.60 + 14.20 + (75%×12.80) = $65.2
$
Variable cost of special order (= $65.2 × 3,500)= 228,200
Cost of machine 6,300
Total relevant cost of special order 234,500
The price at which Melrose would be indifferent
= total relevant cost/ number of units
$234,500/3500 units
=$67 per units
A type of manager that supports first line managers is known as
Answer:
First-line managers operate their departments. They assign tasks, manage work flow, monitor the quality of work, deal with employee problems, and keep the middle managers and executive managers informed of problems and successes at ground level in the company.
Explanation:
Miller Company's most recent contribution format income statement is shown below:sales (20,000 units)............300,000 15.00Variable expenses.............180,000 9.00CM ..............................120,000 6.00Fixed expense................. 70,000Net operating income......... 50,000Required:Prepare a new contribution format income statement under each of the following conditions (consider each case independently):1. The number of units sold increases by 15%.2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.
Answer:
Miller Company
New contribution format income statement under each of the following conditions (consider each case independently):
1. The number of units sold increases by 15%.
Sales (23,000 units) $345,000 ( unit price $15.00)
Variable expenses $207,000 ( unit cost $9.00)
Contribution Margin $138,000 ( unit $6.00)
Fixed expense $70,000
Net operating income $68,000
2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
Sales (25,000 units) $337,500 ( unit price $13.50)
Variable expenses $225,000 ( unit cost $9.00)
Contribution Margin $112,500 ( unit $4.50)
Fixed expense $70,000
Net operating income $42,500
3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.
Sales (19,000 units) $313,500 ( unit price $16.50)
Variable expenses $171,000 ( unit cost $9.00)
Contribution Margin $142,500 ( unit $7.50)
Fixed expense $90,000 ($70,000 + 20,000)
Net operating income $52,500
4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.
Sales (18,000 units) $302,400 ( unit price $16.80)
Variable expenses $172,800 ( unit cost $9.60)
Contribution Margin $129,600 ( unit $7.20)
Fixed expense $70,000
Net operating income $59,600
Explanation:
a) Contribution Format Income Statement as per question:
Sales (20,000 units) $300,000 ( unit price 15.00)
Variable expenses $180,000 ( unit cost 9.00)
Contribution Margin $120,000 ( unit 6.00)
Fixed expense $70,000
Net operating income $50,000
b) The contribution format income statement can be prepared under different scenarios to account for different events as in the above. They are estimates of future occurrences under scenario planning and analysis which can help management to make informed decisions, knowing the outcome of each situation.
Bonds payable-record issuance and premium amortization. Kaye Co. issued $1 million face amount of 11% 20-year bonds on April 1,2004. The bonds pay interest on an annual basis on March 31 each year.
Required:
a. Assume that market interest rates were slightly lower than 11% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain.
b. Independent of your answer to part a, assume that the proceeds were $1,080,000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds.
c. Calculate the interest expense that Kaye Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2004, assuming that the premium of $80,000 is amortized on a straight-line basis.
Answer:
Cash proceeds would be higher than face amount.
Bond issuance:
Dr cash $1,080,000
Cr bonds payable $1,000,000
Cr premium on bonds payable($1,080,000-$1,000,000) $80,000
$57,400
Explanation:
If the market interest rate were slightly lower than 11% coupon rate,the cash proceeds from the bonds would be higher than face amount as a lower market rate is used as a discount rate in calculating the present value,in other words,the lower the discount rate,the higher the present value as further shown below.
Assume market rate is 10.5%
cash proceeds=-pv(rate,nper,pmt,fv)
rate is 10.5%
nper is 20 years
pmt =$1,000,000*11%=$110,000
fv is $1000,000
=-pv(10.5%,20,110000,1000000)=$1,041,154.54
amortization(annually)=$80,000/20=$4000
Amortization for six months=$4,000*6/12=$2,000
coupon=$1,080,000*11%*6/12=$ 59,400.00
Interest expense=coupon -premium amortization=$ 59,400.00-$2,000.00=$57,400
Sauber's washer-dryer is available in four stylish finishes: stainless steel, pearl white, gunite gray, and obsidian. Although the cycle time is 20% longer than average, the machine runs quietly and offers 10 wash, 5 spin, and 8 dry options. A programmable timer allows users to program a wash up to 23 hours in advance. The manufacturer's suggested retail price is $1499, which is more expensive than U.S. brands' washer-dryer combinations, which average around $1000. Choose the two variables that would be most predictive of purchase intent for the All-in-One washer-dryer.
a. household size: how many people?
b. dwelling type: apartment, condo, or house.
c. religious orientation: beliefs and worship.
Answer:
a and b
Explanation:
Religious orientation has nothing to do with how much money to spend or what machine to use
Paige Company estimates that unit sales will be 10,600 in quarter 1, 12,600 in quarter 2, 14,500 in quarter 3, and 18,500 in quarter 4. Using a sales price of $81 per unit.Prepare the sales budget by quarters for the year ending December 31, 2020.
Answer and Explanation:
The preparation of the sales budget for the year ending Dec 31,2020 is presented below:
Paige company
Sales budget
For the year ending December 31, 2020
Quarters
Particulars 1 2 3 4 Year
Unit sales 10,600 12,600 14,500 18,500 56,200
units units units units units
Sales price $81 $81 $81 $81 $81
Estimated
Sales value $858,600 $1,020,600 $1,174,500 $1,498,500 $4,552,200
We simply multiplied the units sales with the sales price so that the estimated sales value could come
g Transfer payments are a. included in GDP because they represent income to individuals. b. included in GDP because they eventually will be spent on consumption. c. not included in GDP because they are not payments for currently produced goods or services. d. not included in GDP because taxes will have to be raised to pay for them.
Answer: c. not included in GDP because they are not payments for currently produced goods or services.
Explanation: Transfer payments are usually not included in the GDP because they do not represent payments made for recently produced goods or services.
The Gross Domestic Product (GDP) is the monetary value attached to all finished goods and services produced within a country during a time period.
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors, and 5% are informed traders. The portfolio consisting of all informed traders has a beta of 1.4 and an expected return of 16%. The market has an expected return of 10% and the risk-free rate is 4%. The alpha for the informed investors is closest to:
Answer:
3.6%
Explanation:
The computation of the alpha for the informed investors is shown below:
As we know that
Expected rate of k = Risk free rate of return + Beta × (Market rate of return - Risk free rate of return) + Alpha
16% = 4% + 1.4 × (10% - 4%) + Alpha
16% = 4% + 8.4% + Alpha
16% = 12.4% + Alpha
So,
Alpha = 3.6%
We simply applied the above formula to determine the alpha
The rate of return is a metric for determining whether an investment has made a profit or loss money over time.
Given Information:-
Beta=1.4Expected return=16%expected return=10%Risk-free rate=4%
The computation of the alpha for the informed investors is shown below:
Expected rate of k = Risk free rate of return + Beta × (Market rate of return - Risk free rate of return) + Alpha
16% = 4% + 1.4 × (10% - 4%) + Alpha
16% = 4% + 8.4% + Alpha
16% = 12.4% + Alpha
Alpha = 3.6%
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Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: Over-----But Not Over-----Tax Rate $0............$43,850..............15% $43,850.....$105,950.............??? $105,950....$361,450............31% If the total personal income tax they pay is $58,074, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)?
a. 21%
b. 24%
c. 25%
d. 225
e. 23%
Answer:
a. 21%
Explanation:
Felix and Freddie
Tax paid for first will be :
$43,850 ×15%
=$6,577.5
Taxable income $124,050
($230,000-$105,950)
Taxable payable $38,455.5
($124,050*31%)
Remaining tax payable $13,041
($58,074-$6,577.5-$38,455.5)
÷
Remaining taxable income $62,100
($105,950-$43,850)
Tax rate between $43,850 and 105,950 will be:
$13,041÷$62,100
=0.21×100
=21%
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as
Answer:
The correct answer is: Corporate Social Responsibility (CSR).
Explanation:
To begin with, the concept known as ''Corporate Social Responsibility'' refers to a type of position adopted by the organization in order to achieve certain goals that are related to the subjects of the state of people, the health of the planet and its environment and take all that and combine it with the typically normal profit goal of every business so in that way the members of the organization can act with the purpose of achievieng all those.
Skilled versus unskilled labor markets Consider the labor markets for unskilled workers and skilled workers in the United States. Suppose you read the following newspaper headline: "The U.S. Department of Education Issues Report on Increased Productivity Effects of a College Education, but College Enrollment Remains Constant." The previous scenario primarily affects the labor market for ______ workers.
Answer: Skilled Workers.
Explanation:
Skilled workers refers to those with the skills and abilities required to work in their various tasks. Often these skills are gained from tertiary level institutions such as Universities, Colleges or Technical Schools.
When the report speaks of how having a college education leads to increased productivity, it is targeting skilled workers who as the definition states, have probably gone to College or Universities and the like.
This report will increase the labour market for skilled college education holders as companies might want to hire them more to gain from the reported increased productivity.
The Andersons have contracted with a minimum-services real estate broker to assist them in marketing their home. By law their broker has all of these duties EXCEPT:_________ a) to instruct another broker to negotiate an offer with the sellers on his behalf. b) to instruct another broker to deliver a contract to the sellers on his behalf. c) to inform the sellers of material information related to the transaction. d) to answer their questions and present any offers.
Answer:
A. to instruct another broker to negotiate an offer with the sellers on his behalf
Explanation:
Brokers job includes facilitation of a variety of business transactions, such as real estate deals, by acting as a middle man between the parties involved. The broker acts as an agent for the client and charges the client certain amounts for his service.
By law a broker can not ask another broker to help him negotiate an offer. All other options in the question are duties of the broker
Support agents at Universal Containers research solutions to customer issues by asking various subject matter experts (SMEs) at the company.Which three features will allow Support Agents to quickly document the details of these meetings? (Choose three.)
A. Case Feed
B. Workflow Email Alerts
C. Case Group
D. Case Comments
E. Events
Answer:
A,C,D
Explanation:
Remember, we are told the issue concerns "support agents" working for a company–Universal Containers. Thus, they will be using Salesforce inorder to document their findings.
i. Case feed is one useful feature that quickly allows the support agents to edit, store and change the status of cases where necessary.
Ii. Case group is another useful feature to group cases that the support agents consider as been interrelated.
iii. Case comments feature allows them to read through case by case comment from the participants in the research, allowing proper insight into minds of the customers.
Krisp Systems decides to move production to a developing country where they are free to pump pollutants into the atmosphere without legal restriction. By doing this, the company is contributing to:_______
a. corporate social responsibility.
b. corruption.
c. cultural relativism.
d. the global tragedy of the commons.
e. sustainability
Answer: the global tragedy of the commons
Explanation:
The tragedy of the commons is a term that is used to refer to a situation whereby resources that are held in common by everyone but owned by no one and is therefore overused by individuals which results in degradation.
Krisp Systems moves production to a developing country where they can pump pollutants into the atmosphere without any legal restriction will lead to
global tragedy of the commons. Here, the global tragedy is that Krisp system will only work in their own interest and exploit the resources at the detriment of the people which will lead to pollution.
Answer:
d. the global tragedy of the commons.
Explanation:
The tragedy of the commons is a situation that arises as a result of the selfish interest of people who exploit the shared economic resources at the expense and detriment of other users of the resources in the environment. Activities which result in Tragedy of the commons would cause pollution of the environment, excessive consumption, as well as the depletion of resources. A way to curb this sort of exploitation is by the regulation of the activities of companies by the government. This would ensure that certain limits are not overstepped.
When Krisp Systems decides to bypass this regulation by moving to a developing country where they are free to pump pollutants into the atmosphere, they are in effect contributing to the tragedy of the commons.
The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager's goal is to maximize profits.
Required:
What is not a feasible solution?
Answer:
Please see below for answer
Explanation:
It would not be feasible to invest the entire $75,000 amount on making double beds. Although the profit margin for the double beds is twice that of twin beds, it also requires more storage space and the market demand for double beds may not be as high as the twin beds. Hence, making double beds and ignoring twin beds completely might not make as much profit due to not being sold to begin with.
Willetta Company purchases inventory for $29,000 with terms 2/10, n/30. It then returns $3,900 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $290. The company pays the amount due within the discount period. What is the amount of the discount that will be taken
Answer:
Discount taken is $496.20
Explanation:
The amount of purchases after some items were returned and also defective inventory allowance was taken needs to first of all be established.
adjusted purchases=$29,000-$3,900-$290=$ 24,810.00
Thereafter, the amount of discount taken is 2% of the adjusted purchases amount computed above.
Discount taken=$ 24,810.00*2=$ 496.20
Swiss Group reports net income of $26,000 for 2017. At the beginning of 2017, Swiss Group had $184,000 in assets. By the end of 2017, assets had grown to $234,000. What is Swiss Group's 2017 return on assets?
Answer:
12.44%
Explanation:
The computation of the return on assets is shown below:
As we know that
Return on asset = Net income ÷ Average of total asset
= ($26,000) ÷ ($184,000 + $234,000) ÷ 2
= ($26,000) ÷ ($209,000)
= 12.44%
We simply applied the above formula so that the return on assets could be determined
Therefore we considered all the information given in the question
Answer:
12.44
Explanation:
German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? Suppose a particular patron at a German brothel has the following willingness-to-pay schedule for services at the brothel, per session. Session Willingness to Pay 1st $105 2nd $90 3rd $75 4th $60 5th $45 6th $30 Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the brothel, per session, is constant at $15. At a price of $82.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is
Answer:
The pricing plan of the is even more immoral to buttress that the fact that brothel was encouraged, the fact that subscription packages was introduced will enhance the practice of prostitution which also has a pricing system which is aimed at I creasing the producer surplus.
Explanation:
Given the following :
Session - - - - - Willingness to Pay
1st - - - - - $105
2nd - - - - $90
3rd - - - - -$75
4th - - - - - $60
5th - - - - - $45
6th - - - - - $30
At price of $82.50 per session, the number of sessions demanded by this consumer will be 2.
Consumer surplus = ($105 - $82.50) = $22.50
Producer surplus = ($82.50 - $22.50) = $60
Alpaca Corporation had revenues of $250,000 in its first year of operations. The company has not collected on $18,900 of its sales and still owes $27,000 on $96,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $12,700 in salaries. Owners invested $14,000 in the business and $14,000 was borrowed on a five-year note. The company paid $3,800 in interest that was the amount owed for the year, and paid $7,800 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year). Compute the cash balance at the end of the first year for Alpaca Corporation.
Answer:
$84,360.00
Explanation:
The cash balance at the end of the year is simply total cash receipts minus total cash payments which is further analyzed below:
Cash receipt from sales=total sales-accounts receivable=$250,000-$18,900=$ 231,100.00
Cash paid for merchandise purchase=purchases-accounts payable=$96,000-$27,000=$69,000
Salaries paid $12,700
Cash from owners is $14,000
cash from borrowing is $14,000
interest paid is $3800
insurance paid is $7,800
Tax paid=(sales-purchases-salaries paid-insurance cost(one year)-interest paid)*tax rate
insurance for one year=$7800*1/2=$3,900
tax paid=($250,000-$96,000-$12,700-$3,800-$3,900)*40%=$53440
Cash balance=$231,100-$69,000-$12,700+$14,000-$14,000-$3800-$7800-$53440=$84,360.00
Roy was doing repair work in the apartment of Melinda. He saw a deep crack in the floor but did not repair it at the time. Later while doing ceiling work, his ladder got stuck in the crack and he injured himself. Can he recover damages from Melinda?
A. He can impose consequential damages on Melinda.
B. He can recover under the specific performance provision.
C. No, he cannot recover for injuries that could be easily avoided.
D. No, he cannot recover damages till he gets an injunction.
Answer: No, he cannot recover for injuries that could be easily avoided
Explanation:
From the question, Roy was doing repair work in the apartment of Melinda and saw a deep crack in the floor but he did not repair it at the time. Later when he was doing ceiling work, his ladder got stuck in the crack and he got injured.
In this scenario, Roy cannot recover damages from Melinda. He saw the crack in the floor but did not do anything about it. The injury sustained was as a result of his negligence and he could have avoided it. Hence, he cannot recover for injuries that could be easily avoided.
The Dominican Republic is considering placing a room tax on Eco Hotels. The preliminary analysis requires them to calculate consumer and producer surplus before the tax. Below are the demand and supply equations for eco hotel rooms in the Dominican Republic.
Demand equation: Qd = 2500 - 5P
Supply equation: Qs = 1OP - 500
Calculate consumer surplus. Number
Calculate producer surplus.
Answer:
The consumer surplus is 225,000
The producer surplus is 112,500
Explanation:
According to the given data we have the following:
Demand equation: Qd = 2500 - 5P
Supply equation: Qs = 1OP - 500
Therefore, the equilibrium is at demand equal to the supply
2500-5P=10P-500
15P=3000
P=200
Q=10P-500=10*200-500=1500
The inverse demand function is
P=500-0.2Q
Therefore, CS=0.5*(Pmax -Pe)*Qe
=0.5*(500-200)*1500
=225,000
The consumer surplus is 225,000
Regarding PS, maximum price or y-intercept of the demand curve
Pe and Qe are equilibrium price and quantity the inverse supply curve
P=50+0.1Q
PS=0.5*(Pe-Pl)Qe
Pl=y intercept of supply curve
PS=0.5*(200-50)*1500
=112,500
The producer surplus is 112,500
Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May:Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows:(1) Asset (Cash) increases by $18,000; Common Stock increases by $18,000. Element Item Direction1. Received cash in exchange for common stock, $18,000. Asset Cash Increases Common Stock Increases2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $8,200.
Answer and Explanation:
The indication and effect of each transaction are as follows
Particulars Element Item Direction
1. Received cash in exchange
for common stock, $18,000. Asset Cash Increases
Common Stock Increases
It increased both assets and the common stock
2. Paid advertising expense,
$4,850. Expense Advertising Expense Increases
Asset Cash Decreases
It increased the expenses and reduced the assets
3. Purchased supplies on account,
$2,100. Asset Supplies Increases
Liability Accounts Payable Increases
It increased the assets and also increased the liabilities
4. Billed customers for delivery
services on account, $14,700. Asset Accounts Receivable Increases
Revenue Delivery Service Fees Increases
It increased the assets and the revenue is also increased
5. Received cash from
customers on account, $8,200. Asset Cash Increases
Asset Accounts Receivable Decreases
It increased the assets in cash but it reduced the assets i.e account receivable
Answer: I took this class, these are the answers
Explanation:
The indication and effect of each transaction are as follows
Particulars Element Item Direction
1. Received cash in exchange
for common stock, $18,000. Asset Cash Increases
Common Stock Increases
It increased both assets and the common stock
2. Paid advertising expense,
$4,850. Expense Advertising Expense Increases
Asset Cash Decreases
It increased the expenses and reduced the assets
3. Purchased supplies on account,
$2,100. Asset Supplies Increases
Liability Accounts Payable Increases
It increased the assets and also increased the liabilities
4. Billed customers for delivery
services on account, $14,700. Asset Accounts Receivable Increases
Revenue Delivery Service Fees Increases
It increased the assets and the revenue is also increased
5. Received cash from
customers on account, $8,200. Asset Cash Increases
Asset Accounts Receivable Decreases
It increased the assets in cash but it reduced the assets i.e account receivable
When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies of scale. b. with small, but positive, levels of profit. c. at their efficient scale. d. where price is equal to average fixed cost.
Answer:
d. where price is equal to average fixed cost.
Explanation:
Firms involved in a perfectly competitive market face the same cost, they will theoretically make zero profit on the long run. This happen at the point where price is equal to average fixed cost.
Lopez Corporation incurred the following costs while manufacturing its product.Materials used in product $120,000 Advertising expense $45,000Depreciation on plant 60,000 Property taxes on plant 14,000Property taxes on store 7,500 Delivery expense 21,000Labor costs of assembly- 110,000 Sales commissions 35,000line workersFactory supplies used 23,000 Salaries paid to sales clerks 50,000Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.Compute:____ Cost of goods manufactured $Compute cost of goods sold.
Answer:
Cost of goods manufactured is $323,500
Cost of goods sold is $337,900
Explanation:
Given:
Materials used in product = $120,000
Advertising expense = $45,000
Depreciation on plant = $60,000
Property taxes on plant = $14,000
Property taxes on store = $7,500
Delivery expense = $21,000
Labor costs of assembly-line workers = $110,000
Sales commissions = $35,000
Factory supplies used = $23,000
Salaries paid to sales clerks = $50,000
Work in process inventory was $12,000 at January 1 and $15,500 at December 31.
Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.
(a) Cost of goods manufactured = Materials used in product + Depreciation on plant + Labor costs of assembly-line workers + Property taxes on plant + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
Based on the given information,
The cost of goods manufactured is $323,500
cost of goods sold $337,900
Calculations are as follows
(a) Cost of goods manufactured =Depreciation on plant + Materials used in product +Property taxes on plant + Labor costs of assembly-line workers + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
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Adjustment for Uncollectible Accounts Below is the aging of receivables schedule for Evers Industries. Aging of Receivables Schedule July 31 Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000 Boyd Industries 36,000 36,000 Hodges Company 11,500 11,500 Kent Creek Inc. 6,600 6,600 Lockwood Company 7,400 7,400 Van Epps Company 13,000 13,000 Totals 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% 75% Allowance for Doubtful Accounts 106,106 6,074 6,990 14,592 28,950 49,500 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31. Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank. July 31
Answer:
bad debt expense 97,866 debit
Allowance for Doubtful Accounts 97,866 credit
Explanation:
We are given the table for the aging method from which we extract the
Total for Allowance for Doubtful Accounts 106,106
Now, as currently the allwoance for doubtful accounts has a balance of 8,240 we need to adjust to make up the difference
106,106 adjusted balance - 8,240 current balance = 97,866 adjustment
we will credit the allowance and recognzie this amount of bad debt expense
This way we are matching our net account receivables with our estimation of what we expect to collect
Calvin Manufacturing purchased new equipment that reduces setup times when employees change templates between production runs. This equipment has also improved quality control measures throughout the entire manufacturing process. What type of technology is Calvin Manufacturing using
Answer:
Lean production
Explanation:
Lean production refers to the management approach in which the company reduced its cost or do cost cutting so that it can improve the quality of their product and services. It is applied to each level each department of management like - design, production, etc
In the given situation, Calvin Manufacturing reduced their setup times that results in improving their quality control measures
So this situation represent the lean production technology
Harrod Company paid $5,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,800, and no adjustments had been made previously. The adjusting entry required on December 31 is:
Answer:
Prepaid Insurance = credit = $2900.
Prepaid Insurance = debit = $2900
Explanation:
So, we are given the following data or parameters or information which is going to assist us in solving this particular Question or problem;
=> The amount paid for a 4-month insurance premium in advance on November 1, with coverage beginning on that date = $5,800.
=> "The balance in the prepaid insurance account before adjustment at the end of the year =$5,800, and no adjustments had been made previously.
So, we are asked to determine the adjusting entry required on December 31.
The adjusting entry required on December 31;
Prepaid Insurance = credit = 5800 × 2/4= $2900.
Prepaid Insurance = debit = $2900.
Answer:
Debit Insurance Expense $2,900; Credit Prepaid Insurance $2,900
Explanation:
Total Prepaid Insurance= $5,800
Monthly Insurance=Total Prepaid Insurance / 4 = $1,450
Insurance expenses for 2 month (November and December)= $1,450 * 2 = $2,900
There is no cash transaction in this adjusting entry
When insurance expenses increase= Debit
When decrease in prepaid expenses= Credit
Debit Insurance Expense $2,900; Credit Prepaid Insurance $2,900
g Suppose that more British decide to vacation in the U.S. and that the British purchase more U.S. Treasury bonds. Ignoring how payments are made for these purchases, a. the first action by itself raises U.S. net exports, the second action by itself raises U.S. net capital outflow. b. the first action by itself raises U.S. net exports, the second action by itself lowers U.S. net capital outflow. c. the first action by itself lowers U.S. net exports, the second action by itself raises U.S. net capital outflow. d. the first action by itself lowers U.S. net exports, the second action by itself lowers U.S. net capital outflow.
Answer:
b. the first action by itself raises U.S. net exports, the second action by itself lowers U.S. net capital outflow.
Explanation:
Net exports are equal to the difference between the value of a nation's total export of goods, services and the value of all the goods and services it imports.
U.S. net export raises as more British decide to vacation in the U.S. and U.S. net capital outflow reduces as the British purchase more U.S. Treasury bonds.
So, option b is correct.
