Answer:
Rollins Inc.
ROLLINS INC.
Statement of Comprehensive Income
For the year ended December 31, 2021:
Sales revenue $5,900,000
Cost of goods sold -4,400,000
Gross profit $1,500,000
Selling expense 400,000
General and administrative expense 300,000 -700,000
Operating Income $800,000
Interest revenue 40,000
Interest expense -20,000 20,000
Income before taxes $820,000
Income tax (25%) -205,000
Income after tax $615,000
Other comprehensive income:
Gain on projected benefit obligation 260,000
Restructuring costs -190,000
Loss on sale of investments -10,000
Loss on debt investments -160,000 -100,000
Other comprehensive income $515,000
Explanation:
Data and Calculations:
Trial Balance as of December 31, 2021:
Debits Credits
Sales revenue 5,900,000
Cost of goods sold 4,400,000
Interest revenue 40,000
Interest expense 20,000
Loss on sale of investments 10,000
Loss on debt investments 160,000
Gain on projected benefit obligation 260,000
Selling expense 400,000
Restructuring costs 190,000
General and administrative expense 300,000
How can the federal reserve influence the interest rate on credit cards?
A. By shutting down credit card companies that set rates too high.
B. By raising taxes on companies that provide high-interest credit cards.
C.By adjusting the discount rate banks pay to borrow.
D.By setting up federal credit card companies with low rates.
Answer:
C. By adjusting the discount rate banks pay to borrow
Explanation:
A P E X
The federal reserve can influence the interest rate on credit cards by raising taxes on companies that provide high-interest credit cards. Thus, option B is appropriate.
The American financial system's heart is the Federal Reserve System. After a string of financial panics prompted the need for centralized supervision of the monetary system to prevent financial crises, it was established on December 23, 1913, following the passage of the Federal Reserve Act.
Banks and other lenders' interest rate-setting processes are influenced by Federal Reserve decisions. To finance anything from a car or home to your purchases using a credit card, higher Fed interest rates equate to more expensive borrowing charges.
Thus, option B is correct.
Learn more about the Federal Reserve here:
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Consider, in 2010, there was only one movie produced by Marvel Studios(Iron Man 2). In 2018, there were three (Black Panther, Avengers: Infinity War, and Ant-Man and the Wasp).
a) Find a linear model that shows how many MCU films are made each year (use xx to be years since 2010) using the data above.
b) With the model found in (a), how many MCU films should release in 2020?
Answer:
The answer is below
Explanation:
a) A linear model is represented in the form y = mx + c, where y is the dependent variable, x is the independent variable, m is the rate of change and c is the value of y at x = 0.
Since x = years since 2010, let y = number of movies produced
In 2010 (x = 0), y = 1, this can be represented as (0, 1)
In 2018 (x = 8), y = 3, it can be represented as (8, 3)
Hence, with the points (0,1) and (8, 3) using the formula:
[tex]y-1=\frac{3-1}{8-0}(x-0)\\ \\y-1=\frac{1}{4}x\\\\y=\frac{1}{4}x+1[/tex]
b) In 2020 (x = 10), the number of films that would be released is:
[tex]y=\frac{1}{4}x+1\\ \\y=\frac{1}{4}(10)+1\\ \\y=2.5+1\\\\y=3.5\\\\y=3[/tex]
3 movies would be released
This article (Links to an external site.) suggests, based on significant evidence, that competition in US markets is not only constrained, but is becoming less so, as fewer companies dominate business (Links to an external site.). The high profits and rising stock markets we have seen recently are significantly linked to this, rather than to a more competitive economy. Our model of Supply & Demand is based on a model of perfectly competitive markets. If our markets are not competitive, how does that affect this model? Read the first article and the full Introduction (at least) to the Brookings study. Submit your answer in the box. It should be a few paragraphs long and include a reference to an additional academic-level outside evidence to back up what you are saying.
Answer:
Follows are the solution to this question.
Explanation:
When economies aren't truly competitive, it can have a different monopoly or oligopoly or a monopoly competition, which leads to greater productivity or decreased level and barriers to access and excessive consumer spending than that of the aggregate supply, which causes price rises, and also inflation. It is the result of the fact, that economies are not fully efficient. Consequently, fewer companies control and divest of small and new players with reduced cash flows. Mostly as result, the fundamentals of market forces are changed by technology, fast-generation immigrant advantage, and sustainable supply, that centralizes market structures ever further.
2. The buyer's prepaid expense is the seller's
Which revenue?
Answer:
Unearned revenue
Explanation:
Unearned revenue is money that a business has received for goods and services that it will deliver later. It is not yet revenue in a business sense because the activity that makes revenue be recognized has not yet happened. Unearned revenue is also known as deferred revenue. It is recorded as a liability by the supplier.
Unearned revenue may arise due to prepayment for goods and services, initial deposits when purchasing property, and subscription fees for magazines, TV, and clubs.
Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $2,690 interest on a debt instrument this year. Required: Compute her federal income tax on this interest assuming that the debt instrument was: (Round your final answers to the nearest whole dollar amount.) An unsecured note from her son, who borrowed money from his mother to finance the construction of his home. A certificate of deposit from a federal bank. A 30-year General Electric corporate bond. A U.S. Treasury note. A City of Memphis municipal bond.
Answer:
An unsecured note from her son, who borrowed money from his mother to finance the construction of his home.
Not tax exempt so tax is;
= 2,690 * 24%
= $645.60
= $646
A certificate of deposit from a federal bank.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A 30-year General Electric corporate bond.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A U.S. Treasury note.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A City of Memphis municipal bond.
Municipal bond returns are tax exempt so tax payment is $0.
Financial statements of a manufacturing firm The following events took place for Rushmore Biking Inc, during February, the first month of operations as a producer of road bikes:
• Purchased $390,000 of materials.
• Used $353,000 of direct materials in production.
• Incurred $101,600 of direct labor wages.
• Applied factory overhead at a rate of 34% of direct labor cost.
• Transferred $463,900 of work in process to finished goods.
• Sold goods with a cost of $441,400.
• Revenues earned by selling bikes, $ 730,300.
• Incurred $148,500 of selling expenses.
• Incurred $72,200 of administrative expenses
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet
a. Prepare the income statement for Rushmore Biking for the month ending February 28.
Round your answers to the nearest dollar
Rushmore Biking Inc.
Income Statement
For the Month Ended February 28
Revenues
Cost of Goods Sold
Gross Profit Selling and Administrative Expenses:
Total Selling and Administrative Expenses
Answer and Explanation:
The Preparation of income statement is prepared below:-
Rushmore Biking Inc.
Income statement
For the month ended February 28
Particulars Amount
Revenues $7,30,300
Less: Cost of goods sold $4,41,400
Gross profit $2,88,900
Selling and administrative expenses:
Selling expenses $1,48,500
Administrative expenses $72,200
Less: Total Selling and administrative
expenses $2,20,700
Income from operations $68,200
The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.
Answer:
Journal entries
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
Dr Cash 18,000
Dr Accounts receivable 63,000
Cr Service revenue 81,000
2. March 13 Collect on accounts receivable, $51,000.
Dr Cash 51,000
Cr Accounts receivable 51,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,600.
Dr Wages expense 32,600
Cr Cash 32,600
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
Dr Utilities payable 6,200
Cr Cash 6,200
6. November 24 Receive cash in advance from customers, $9,200.
Dr Cash 9,200
Cr Unearned revenue 9,2000
7. December 30 Pay $2,600 cash dividends to stockholders.
Dr Dividends 2,600
Cr Cash 2,600
Adjusting entries
Depreciation for the year on the machinery is $7,200.
Dr Depreciation expense 7,200
Cr Accumulated depreciation, equipment 7,200
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,500
Cr Supplies 2,500
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Dr Unearned revenue 6,600
Cr Service revenue 6,600
Accrued utilities at year-end amounted to $6,400.
Dr Utilities expense 6,400
Cr Utilities payable 6,400
Lear Inc. has $940,000 in current assets, $420,000 of which are considered permanent current assets. In addition, the firm has $740,000 invested in fixed assets.
A. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9%. The balance will be financed with short-term financing, which currently costs 5%. Lear’s earnings before interest and taxes are $340,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30%.
B. As an alternative. Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing and the balance with short-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $340,000. What will be Lear's earnings after taxes? The tax rate is 30%.
Answer: See explanation
Explanation:
A. Current assets = permanent current assets + temporary current assets
Temporary current assets:
= $940,000 - $420,000
= $520,000
Short-term interest expense:
= 5% × [$520,000 + ½ ($420,000)]
= 5% ($520,000 + $210,000)
= 5% × ($730,000)
= 0.05 × $730,000
= $36,500
Long-term interest:
= 9% × [$740,000 + ½ ($420,000)]
= 9% × ($740,000 + $210,000)
= 9% × $950,000
= 0.09 × $950,000
= $85,500
Total interest expense:
= $36,500 + $85,500
= $122,000
Earnings before interest and taxes $340,000
Less: Interest expense = $122,000
Earnings before taxes = $218,000
Less: Taxes (30%) = $65,400
Earnings after taxes = $152,600
B. Short term interest expense:
= $260,000 × 5%
= $260,000 × 0.05
= $13,000
Long term interest expense:
= ($740,000 + $420,000 + $260,000) × 9%
= $1,420,000 × 0.09
= $127,800
Total interest expense:
= $13000 + $127800
= $140,800
Earnings before interest and taxes $340,000
Less: Interest expense = $140,800
Earnings before taxes = $199,200
Less: Taxes (30%) = $59760
Earnings after taxes = $139440
Mrs. Cox, a head of household, earned a $313,000 salary and recognized a $29,300 net long-term capital gain this year. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: Compute the income tax on the gain if: (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) None of the gain is collectibles gain or unrecaptured Section 1250 gain. $10,000 is collectibles gain. $15,500 is unrecaptured Section 1250 gain. $1,700 is collectibles gain and $22,000 is unrecaptured Section 1250 gain.
Explanation:
. $4,395 ($29,300 long-term capital gain × 15%)
Managers in nonprofit organizations must prioritize the needs of
Answer:
One of the distinctive features of management in a nonprofit is the fact that the organizationhasmultiple stakeholderswhose needs are often equally important. Although a nonprofit organizationby definition does not earn profits, it must manage its bottom line. Nonprofits are usually driven by asocial mission that can be difficult to quantify, and they have clients or users of their services whose
Explanation:
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,060,000. Lonergan needs approximately $640,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:
a. Borrow $640,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period.
b. Transfer $690,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for:
a. alternative a.
b. alternative b.
2. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for:
a. alternative a.
b. alternative b.
Answer and Explanation:
The Journal entry is shown below:-
1. a. Cash Dr, $640,000
To Notes Payable $640,000
(Being notes payable is recorded)
b. Cash Dr, $676,200
Loss on transfer of receivable Dr, $13,800 ($390,000 × 2%)
To Account receivable $690,000
(Being accounts receivable is recorded)
2. a. Cash Dr, 848,000
To Account Receivable $848,000 ($1060,000 × 80%)
(Being account receivable is recorded)
b. Cash Dr, $158,000 ($1060,000 × 80%) - $690,000
To Account Receivable $158,000
(Being account receivable is recorded)
A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.4. The CD matured on September 30, 2018.
Answer:Please find answers in explanation column
Explanation:
1. Journal to record Short term borrowing
Date Account title Debit Credit
Feb. 1, 2018 Cash $400,000
Tax anticipation notes payable $400,000
2.Journal to record accrued interest payable on TAN)
Date Account title Debit Credit
Dec. 31, 2018 Expenditures – interest $3,666.67
Accrued interest payable $3,666.67
Calculation :Accrued interest= Principal x rate x period (time)
$400,000 x 1% x 11/12= $3,666.67
3. Journal to record investment in CD
Date Account title Debit Credit
April 1, 2018 Investments $100,000
Cash $100,000
4.Journal To record redemption of CD with interest
Date Account title Debit Credit
Sept. 30, 2018 Cash $100,400
Investments $100,000
Cash Revenues – interest income $400
Calculation
Accrued Interest
Principal x rate x period (time= )100, 000 x 0.8 %x 6/12)= $400
Cash = Investment + interest= $100,000 + $400 = $100,400
Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote uses the perpetual inventory system. Which of the following answers reflects the effects of this event on the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A. n/a (200) 200 200 n/a n/a 200 OA B. n/a (200) 200 200 n/a 200 n/a C. (200) (200) n/a n/a n/a n/a (200) OA D. (200) (200) n/a n/a n/a n/a n/a
Answer:
B. n/a (200) 200 200 n/a 200 n/a
Explanation:
A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.
E.g. you paid $100 within the discount period (2% discount)
Dr Accounts payable 100
Cr Cash 98
Cr Purchase discounts 2
This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.
Tonya operates a nail salon as a sole proprietorship. Tonya also owns and rents an apartment building. This year Tonya had the following income and expenses. Determine Tonya's AGI (rounded to the nearest dollar). You may assume that Tonya will owe $6,255 in self-employment tax on her salon income, with $3,128 representing the employer portion of the self-employment tax. You may also assume that her divorce from Ted was finalized in 2016.
Interest income $ 28,138
Interest expense on qualified loan to fund dependent son's college tuition 2,000
Salon sales and revenue 215,900
Salaries paid to beauticians 113,125
Nail salon supplies 58,500
Alimony paid to her ex-husband, Ted 15,000
Rental revenue from apartment building 78,050
Depreciation on apartment building 32,250
Real estate taxes paid on apartment building 27,750 Real estate taxes paid on personal residence 15,603 Contributions to charity 10,593
Answer:
Tonya's AGI $70,335
Explanation:
Tonya's AGI:
Revenue from salon $215,900
Salaries paid to beauticians ($113,125)
Nail salon supplies ($58,500)
Salon's operating income $44,275
+
Interest income $28,138
+
Rental revenue from apartment building $78,050
Depreciation on apartment building ($32,250)
Real estate taxes paid on apartment building ($27,750)
Rental income $18,050
-
Alimony paid to her husband $15,000
-
Self-employment tax on salon income $3,128
-
Interest expense on education loan $2,000
=
Tonya's AGI $70,335
Real estate taxes paid on Tonya's house and charitable contributions are itemized deductions (below the line deductions).
Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2016. Real estate taxes $1,800 Mortgage interest $1,200 Utilities $1,000 Repairs (first floor) $ 300 Painting (second floor) $ 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)
Answer:
$3,300
Explanation:
Calculation for the total amount of the expenses that Donald can deduct
Total amount of expenses=Repairs (first floor) $ 300+50%*($1,800 Real estate taxes+ Mortgage interest $1,200 +Utilities $1,000+Depreciation $2,000
Total amount of expenses=Repairs (first floor) $ 300+0.5*(6,000)
Total amount of expenses=Repairs (first floor) $ 300+3,000
Total amount of expenses=$3,300
Therefore the total amount of the expenses that Donald can deduct will be $3,300
Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $16,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,100. The equipment had a five-year useful life and a $5,800 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements
Answer:
$716 and $12,300
Explanation:
Original Cost = $16,000 + $2,100
Original Cost = $18,100
Double decline rate = 100/5*2
Double decline rate = 40%
First Year Depreciation = $18,100*40%
First Year Depreciation = $7,240
Second Year Depreciation = $18,100*60%*40%
Second Year Depreciation = $18,100*0.60*0.40
Second Year Depreciation = $4,344
Third Year Depreciation = ($18,100 - $7,240 - $4,344 -$5,800)
Third Year Depreciation = $716
Accumulated Depreciation = $7,240 + $4,344 + $716
Accumulated Depreciation = $12,300
Which of the following budgeting options increases the marketing budget by the rate of the company's inflation?
rule of thumb budgeting
objective and task budgeting
competitive budgeting
arbitrary budgeting
Answer:
D. objective and task budgeting I believe
Explanation:
Really difficult, but not impossible, to determine the tasks necessary to reach goals and estimating the costs associated with tasks
Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $21,000 during college of which $3,780 was paid for by scholarships. To finance his education, he borrowed $12,500 through a federal student loan program and borrowed another $8,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $1,250 of interest on the federal loans and $850 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $122,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any
Answer:
$1722
Explanation:
incurred expenses = 21000
scholarship amount = 3780
interest on federal loan = 1250
interest on lending institution = 850
Education expenses:
21000 - 3780
= $17220
= $17220/21000
= $0.82 = 82%
the interest incurred would be:-
intereston federal loan + interest from lending institution
= $1250 + $850
= $2100
$2100 * $850
= $1722
1. The art of being a good Chemical Engineer lies in being a good mathematician, a good chemist, and a good mechanic – all simultaneously. All three of these are required for determining optimum economics. Generally speaking, we concern ourselves with operating costs (i.e. the chemistry side) and capital costs (i.e. the mechanical side). What can decrease operating expenses will, most likely, increase capital expenses. When designing equipment, we MUST be able to reconcile these two. The sweet spot is usually at the intersection of two curves (i.e. the mathematician side). Suppose that Operating Expenses could be expressed by the equation: y = 0.5x + 0.15, and Capital Expenses could be expressed by y = 1.25x2 + 0.1. To determine the minimal costs, you must find the point of intersection (assuming that only positive roots are applicable). (Solve analytically and graphically.) NOTE: When solving graphically, use graphing paper. 2. As you will learn in your chemistry courses and the reactor design course, the rate at which a chemical reaction proceeds is very much dependent upon the reaction temperature.
Answer:
[tex]y_{oe}=0.5x+0.15\\y_{ce}=1.25x^2+0.1\\\\[/tex]
for minimum cost the intersection point should be calculated i-e
[tex]0.5x+0.15=1.25x^2+0.1\\\\1.25x^2-0.5x-0.5=0\\[/tex]
By using calculator
[tex]x_1=0.4828\\x_2=-0.4828[/tex]
As x can't be negative so x=0.4828
It's the minimum value because as we decrease the operating cost further the capital value will increase so this is the minimum value.
Graphical solution:
Exercise 10-19 (LO. 4) Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses
Answer:
deduction for organizational expenses = $5,000
Explanation:
Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.
In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500
XYZ Corporation has a 6 1/2% convertible bond outstanding that is convertible into 40 shares of common stock. The bond is currently selling in the market at 85 ($850) and the common stock is selling at 21. The XYZ Corporation is offering its existing bondholders a new straight (nonconvertible) bond paying 6 1/2% that matures at the same time as the convertible bond. The effect of the successful completion of the proposal would be to:_________
a) Reduce interest costs
b) Reduce potential dilution
c) Have no effect on interest costs
d) Increase dilution
Answer:
b) Reduce potential dilution
c) Have no effect on interest costs
Explanation:
Since in the question it is mentioned that the corporation is offering its existing bondholders for paying 6 1/2% this matured at the same time just like the convertible bond.
So here if the proposal is completed so the impact would be reduction in the potential dilution also it would not have impact on the effect on the interest rate and the same is to be considered
Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10.Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Answer: Please find answers in the explanation column
Explanation:
Account titles Debit Credit
To Record Investment by stockholders
1 Cash $40,000
Common Stock $40,000
To record purchase of supplies on credit
2 Supplies $500
Accounts Payable $500
To record payment in part for cash and signing a note
3 Equipment $25,000
Cash $ 3,500
Note Payable $21,500
To record commission billed to clients
4 Accounts Receivable $4,000
Service Revenue $4,000
To record rent paid for the month
5 Rent Expense $700
Cash $700
To record cash paid to supplies purchased on account
6 Accounts Payable $250
Cash $250
To record receipt on advertising
7 Advertising Expense $800
Accounts Payable $800
To record cash for salaries
8 Salaries Expense $2,500
Cash $2,500
To record cash paid as dividends
9 Dividends $1,200
Cash $1,200
To record receipts of cash from accounts receivable
10 Cash $2,000
Accounts Receivable $2,000
Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. To address the plight of residents who may be unable to pay the market rent, an income supplement will be paid to all low - income households equal to the difference between the old controlled rent and the new market rent. Are tenants better or worse off as a result of these policies?
Answer:
The answer is "Landlords are clearly worse off as a result of these two policies".
Explanation:
As both a consequence of such two policies, homeowners were become obviously better apart: increased owners' rent residences for increased rentals a month. Throughout fact, people who did never receive their benefit supplement who always used to rent reasonable price residences were becoming much worse.
The following transactions occurred during July: Received $940 cash for services provided to a customer during July. Received $2,800 cash investment from Bob Johnson, the owner of the business. Received $790 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $415. Borrowed $6,400 from the bank by signing a promissory note. Received $1,290 cash from a customer for services to be performed next year. What was the amount of revenue for July
Answer:
July's revenue = $940 + $415 = $1,355
Explanation:
Received $940 cash for services provided to a customer during July. ⇒ INCLUDED IN JULY'S REVENUE
Received $2,800 cash investment from Bob Johnson, the owner of the business. ⇒ NOT CONSIDERED REVENUE
Received $790 from a customer in partial payment of his account receivable which arose from sales in June. ⇒ INCLUDED IN JUNE'S REVENUE
Provided services to a customer on credit, $415. ⇒ INCLUDED IN JULY'S REVENUE
Borrowed $6,400 from the bank by signing a promissory note. ⇒ NOT CONSIDERED REVENUE
Received $1,290 cash from a customer for services to be performed next year. ⇒ DEFERRED REVENUE
Dalinda loves her BMW Z4 car. It handles well around corners and has plenty of kick to make driving a pleasure. She takes the Z4 in regularly to the BMW dealership shop for oil changes, maintenance, and services, and she continues to experience quality service each time. She trusts the brand and recommends purchasing BMW cars to her friends and family. What is the best way to describe what Dalinda’s collective brand experience with BMW?
Sheridan Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client’s consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Estimated overhead $1,040,000 Actual overhead $1,039,800 Estimated decorator hours 40,000 Actual decorator hours 39,500 The company uses the account Operating Overhead in place of Manufacturing Overhead and the account Service Contracts in Process in place of Work in Process. Compute the predetermined overhead rate. Predetermined overhead rate
Answer: $26 per hour
Explanation:
The Predetermined rate is used by the company to apportion overhead to Work in process inventory and is calculated before production starts and for this reason uses estimated figures.
Predetermined Overhead rate = Estimated overhead/ Estimated decorator hours
= 1,040,000/ 40,000
= $26 per hour
What do researchers mean by "secondary data"?
A. Data considered less important than primary data
B. Data collected after any research to gather primary data
C. Information from research already conducted for another purpose
O D. Data collected specifically for the researcher's own study
Answer:
C. Information from research already conducted for another purpose
Explanation:
Secondary data is research information that is already available for use by other researchers. It is data that was collected previously for different purposes but is relevant in the current study. Secondary data consists of information collected as part of an organization's or government's routine tasks.
Secondary data contrast primary data, which is collected specifically for the current data. Sources of secondary data include books, libraries, internet searches, and information from government departments.
Answer:
c
Explanation:
Pirates Incorporated had the following balances at the beginning of September.
PIRATES INCORPORATED
Trial Balance
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
The following transactions occur in September:
September 1 Provide services to customers for cash, $3,700.
September 2 Purchase land with a long-term note for $5,400 from Crimson Company.
September 4 Receive an invoice for $400 from the local newspaper for an advertisement that appeared on September 2.
September 8 Provide services to customers on account for $5,000.
September 10 Purchase supplies on account for $1,000.
September 13 Pay $3,000 to Crimson Company for a long-term note.
September 18 Receive $4,000 from customers on account.
September 20 Pay $800 for September's rent.
September 30 Pay September's utility bill of $1,500.
September 30 Pay employees $3,000 for salaries for the month of September.
September 30 Pay a cash dividend of $1,000 to shareholders.
Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Journal Entries:
September 1:
Debit Cash $3,700
Credit Service Revenue $3,700
To record the provision of services for cash.
September 2:
Debit Land $5,400
Credit Long-term Note Payable $5,400
To record the purchase of land from Crimson company.
September 8:
Debit Accounts Receivable $5,000
Credit Service Revenue $5,000
To record the provision of services on account.
September 10:
Debit Supplies $1,000
Credit Accounts Payable $1,000
To record the purchase of supplies on account.
September 13:
Debit Long-term Notes Payable $3,000
Credit Cash Account $3,000
To record the payment to Crimson Company on long-term note.
September 18:
Debit Cash Account $4,000
Credit Accounts Receivable $4,000
To record the cash receipt from customers.
September 20:
Debit Rent Expense $800
Credit Cash Account $800
To record the payment of September's rent.
September 30:
Debit Utilities Expense $1,500
Credit Cash Account $1,500
To record the payment of September's utility bill.
September 30:
Debit Salaries Expense $3,000
Credit Cash Account $3,000
To record the payment of salaries for the month.
September 30:
Debit Dividend $1,000
Credit Cash Account $1,000
To record the payment of cash dividend to shareholders.
Explanation:
a) PIRATES INCORPORATED
Trial Balance
As of September 1
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
Totals $23,800 $23,800
b) Pirates' Journal entries are made as business transactions occur on a daily basis. They are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
what is business mathematics ? and what are the basics of business mathematics ?
Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.
Answer: Business mathematics are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.
Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $22,300
Trademarks 12,700
Discount on bonds payable 35,300
Deposits with advertising
agency for ads to promote
goodwill of company 10,300
Excess of cost over fair
value of net identifiable
assets of acquired subsidiary 75,300
Cost of equipment acquired for
research and development projects;
the equipment has an alternative future use 85,300
Costs of developing a secret formula for a
product that is expected to be marketed for
at least 20 years 79,600
On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.
Answer:
$88,000
Explanation:
Computation of the total amount to be reported as intangible assets on its balance sheet
Using this formula
Total amount to be reported as intangible assets = Trademarks + Excess of cost over fair value of net assets of acquired subsidiary
Let plug in the formula
Total amount to be reported as intangible assets = $12,700 + $75,300
Total amount to be reported as intangible assets = $88,000
Therefore the total amount to be reported as intangible assets on its balance sheet bat year end will be $88,000
