Answer:
The three types of agency problems are stockholders v/s management, stockholders v/s bondholders/ creditors, and stockholders v/s other stakeholders like employees, customers, community groups, etc.
Explanation:
Restricted stock units (RSUs): Multiple Choice are a grant valued in terms of a set number of shares of company stock. are reported as a liability if payable in shares rather than cash. are recorded based on a value estimated by a restricted stock valuation model. represent shares issued at the date of grant that must be returned if the recipient fails to satisfy the vesting requirement.
Answer:
grant valued in terms of a set number of shares of company stock
Explanation:
A restricted stock unit (RSU) is a type of compensation (company shares) that is issued to an employee by an employer.
A restricted stock unit (RSU) is non-transferable.
RSU cannot be sold due to securities regulations laws and laws.
Restricted stock units (RSUs) grant valued in terms of a set number of shares of company stock.
Companies should try to focus on their areas of expertise. Should they always outsource other business functions to become a more modular organization?
Must be 3-4 sentences pls
Answer:
Yes. companies should try to focus on their core competencies so that they can have more time and resources to focus on delivering on their primary assignment.
Explanation:
An ICT company with a high volume of customer care related activities should consider outsourcing that service.
If their core offering is to deliver on mobile applications, it will prove counterproductive in the nearest future if they spend most of their time trying to solve problems that arise from servicing existing customers.
Outsourcing must be carefully implemented so that it does not backfire. It is critical to ensure that the total direct and indirect cost to the company far outweigh the benefits of retaining such a service internally.
Cheers
The operating and maintenance expenses for a mining machine are expected to be $11,880 in the first year and increase by $864 per year during the 15-year life of the machine. What uniform series of payments would cover these expenses over the life of the machine
Answer:
The answer is "[tex]\$16,441[/tex]".
Explanation:
First-year operational and maintenance costs [tex]= \$11,880[/tex].
Operating and repair costs increase inwards[tex]=\$864[/tex] for the first year
N =15 years machine life
Interest [tex]I = 10\%[/tex]annually combined
Please find the image file.
Its single payment sequence is now provided by:
[tex]Amount=(\text{15-year system quantity})\times (\frac{\text{Rate of interest}}{(1-(1+ \text{Rate of interest})- n))}[/tex]
[tex]= \$522,371.3236 \times (\frac{0.1}{(1-(1+0.1)-15)})\\\\[/tex]
Uniform payment sequence [tex]=\$16441.2477 \approx\$16,441[/tex]
Supply and demand determine the relative value of any two currencies through the foreign exchange market
a. True
b. False
Answer:
true
I hope it is helpful to you
22) BS Company is considering eliminating the following product line: Product AXP Sales $ 80,000 Less variable costs: Raw materials 50,000 Direct labor 10,000 Contribution margin $ 20,000 Less fixed costs: Facility-level costs allocated to products 30,000 Profit (Loss) $ (10,000 ) What amount of cost is avoidable if BS outsources production of this product
Answer:
Avoidable costs= $60,000
Explanation:
Giving the following formula:
Raw materials 50,000
Direct labor 10,000
Facility-level costs allocated to products 30,000
We were not provided with information regarding the fixed allocated costs. If none of the fixed allocated costs are avoidable, only the variable cost will not be incurred if the product is eliminated.
Avoidable costs= $60,000
The amount of materials to be purchased during the budget period is equal to budgeted: A. total production needs plus units in the beginning materials inventory minus the units in the ending materials inventory. B. total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory. C. units to be produced plus units in the beginning materials inventory minus the units in the ending materials inventory. D. units to be produced plus units in the ending materials inventory minus the units in the beginning materials inventory.
Answer:
. B). total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory.
Explanation:
The budget period can be regarded as
period of time whereby one has the authority to spend the awarded funds in a way that meet the matching as well as the cost-sharing requirement. It should be noted that the amount of materials to be purchased during the budget period is equal to budgeted total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory.
Determine which phase of the business cycle is associated with each event. a. Unemployment reaches its highest levels, while output reaches its lowest during (Click to select) . b. Decreasing unemployment and expanding production occurs during (Click to select) . c. The economy is at full employment and output is produced at full capacity during (Click to select) . d. Real output is declining for at least two consecutive quarters is during (Click to select) .
Answer and Explanation:
The explanation is as follows:
a. In the case when the unemployment reaches to the highest level and the results is in lowest so it would be due to trough
b. In the case when there is a decrease in unemployment and the production would be expand so this is due to an expansion
c. In the case when the economy is in full employment and the output would be generated in full capacity so this is due to peak
d. In the case when the real output is fallen for minimum two quarters so this is due to recession
The National Credit Union Administration provides coverage up to $250,000 per individual depositor at each credit union.
T or f
Answer:
True
Explanation:
It is TRUE that The National Credit Union Administration provides coverage up to $250,000 per individual depositor at each credit union.
This is evident in the fact that the National Credit Union Administration posted on their website that "All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor."
10) At the beginning of the year, Lucy company estimated that the total annual fixed overhead costs would amount to $25,000. Further, Lucy estimated that its volume of production would be 2,000 units of product. Based on these estimates, Lucy computed a predetermined overhead rate that was used to allocate overhead costs to the products made during the year. As predicted, actual fixed overhead costs did amount to $25,000. However, actual volume of production amounted to 2,200 units of product. Based on this information alone: A. Products were overcosted during the year. B. Products were undercosted during the year. C. Products were costed accurately during the year. D. The answer cannot be determined from the information provided.
Answer: A. Products were overcosted during the year.
Explanation:
At the budgeted figures of $25,000 fixed overhead costs and the 2,000 units of production, the predetermined fixed overhead rate is:
= 25,000 / 2,000
= $12.50 per unit
However, the company then produces 2,200 units at the same cost of $25,000 making the actual predetermined fixed overhead rate:
= 25,000 / 2,200
= $11.36 per unit
The actual rate is less than the predetermined rate which means that the products had originally be overcosted by being apportioned higher expenses.
opulation 500 Population over age 16 400 Persons employed full-or part-time 200 Persons unemployed and actively seeking work 20 Persons who have quit seeking work due to lack of success 10 Part-time workers seeking full-time jobs 30 a) Identify the number of people employed, the number of people unemployed, and the number of people in the labor force.
Answer:
The number of people employed = 200
The number of people unemployed = 20
The number of people in the labor force = 220
Explanation:
a) Data and Calculations:
Population = 500
Population over age 16 = 400
Persons employed full-or part-time 200
Persons unemployed and actively seeking work 20
Persons who have quit seeking work due to lack of success 10
Part-time workers seeking full-time jobs 30
The number of people employed = 200 (full-or part-time)
The number of people unemployed = 200 (400 - 200)
The number of people in the labor force = employed and unemployed seeking work (200 + 20) = 220
b) A country's labor force is made up of employed persons (full-time or part-time) and persons actively looking for work. Some of the population who are not actively seeking employment may be kept of the labor force because of education or family responsibilities. These persons may return to the labor market later.
Kenny, Inc. is looking at setting up a new manufacturing plan in South Park. The company bought some land six years ago for $5.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $7.4 million if it were sold today. The company now want to build its new plant on this land. The plant will cost $26.5 mill to build, and the site requires $1.32 mill worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (answer in millions i.e. 12.63 for $12.63 million)
Answer:
$35.22 million
Explanation:
Calculation to determine the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Value of land today $7.4 million
Add Cost of Building $26.5 million
Add Grading cost $1.32 million
Cash flow $35.22 million
($7.4 million+$26.5 million+$1.32 million)
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35.22 million
For calendar year 2020, Stuart and Pamela Gibson file a joint return reflecting AGI of $357,700. Their itemized deductions are as follows:
Note: All expenses are before any applicable limitations, unless otherwise noted.
Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $53,200
Home mortgage interest (loan qualifies as acquisition indebtedness) 21,280
Credit card interest 1,064
Property taxes on home 16,300
Charitable contributions 28,700
State income tax 18,000
Tax return preparation fees 1,200
Round your intermediate computations to nearest whole dollar.
Required:
The amount of itemized deductions the Gibsons may claim for the year is?
Answer:
$56,130
Explanation:
Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is
Stuart and Pamela Gibson
Casualty loss $17,430
[$53,200 – (10% × $357,700)]
Home mortgage interest 21,280
State tax 10,000
(18,000 income and 16,300 property
Limited to 10,000)
Charitable Contributions 28,700
Total itemized deductions $56,130
Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:
Apr. 13. Wrote off account of Dean Sheppard, $2,330.
May 15. Received $1,170 as partial payment on the $3,100 account of Dan Pyle.
Wrote off the remaining balance as uncollectible.
July 27. Received $2,330 from Dean Sheppard, whose account had been written
off on April 13. Reinstated the account and recorded the cash receipt.
Dec. 31 Wrote off the following accounts as uncollectible (record as one journal
entry):
Paul Chapman $2,280
Duane DeRosa 3,535
Teresa Galloway 4,625
Ernie Klatt 1,095
Marty Richey 1,800
If necessary, record the year-end adjusting entry for uncollectible accounts.
Required:
A. Journalize the transactions under the direct write-off method.
B. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 0.75% of credit sales are expected to be uncollectible. Shipway Company recorded $3,720,000 of credit sales during the year.
C. How much higher (lower) would Shipway Company’s net income have been under the direct write-off method than under the allowance method?
Answer:
Shipway Company
A. Journal entries under the direct write-off method:
Apr. 13. Debit Bad Debts Expense $2,330
Credit Accounts receivable (Dean Sheppard) $2,330
To write-off an uncollectible account.
May 15. Debit Cash $1,170
Debit Bad Debts Expense $1,930
Credit Accounts receivable (Dan Pyle) $3,100
To record receipt of cash and write-off of the uncollectible balance.
July 27. Debit Accounts receivable $2,330
Credit Bad Debts Expense $2,330
To reverse the write-off on April 13.
Debit Cash $2,330
Credit Accounts receivable (Dean Sheppard) $2,330
To record the receipt of a previously written-off uncollectible.
Dec. 31 Debit Bad Debts Expense $13,335
Credit Accounts receivable $13,335
To write-off some uncollectible accounts.
B. Journal entries under the allowance method:
Apr. 13. Debit Allowance for Uncollectible Accounts $2,330
Credit Accounts receivable (Dean Sheppard) $2,330
To write an uncollectible account.
May 15. Debit Cash $1,170
Debit Allowance for Uncollectible Accounts $1,930
Credit Accounts receivable (Dan Pyle) $3,100
To record the receipt of cash and write-off the uncollectible portion.
July 27. Debit Accounts receivable $2,330
Credit Allowance for Uncollectible Accounts $2,330
To reverse a previously written-off account.
Debit Cash $2,330
Credit Accounts receivable (Dean Sheppard) $2,330
To record the receipt of a previously written-off account.
Dec. 31 Debit Allowance for Uncollectible Accounts $13,335
Credit Accounts receivable $13,335
To write-off some uncollectible accounts.
C. Shipway Company's net income would have been higher by $27,900 under the direct write-off method than under the allowance method.
Explanation:
a) Data and Transaction Analysis:
Direct write-off method:
Apr. 13. Bad Debts Expense $2,330 Accounts receivable (Dean Sheppard) $2,330.
May 15. Cash $1,170 Bad Debts Expense $1,930 Accounts receivable (Dan Pyle) $3,100
July 27. Cash $2,330 Accounts receivable (Dean Sheppard)
Accounts receivable $2,330 Bad Debts Expense $2,330
Dec. 31 Bad Debts Expense $13,335 Accounts receivable $13,335
Total bad debts expense = $15,265
The uncollectible accounts:
Paul Chapman $2,280
Duane DeRosa 3,535
Teresa Galloway 4,625
Ernie Klatt 1,095
Marty Richey 1,800
Total amount = $13,335
Allowance Method:
Apr. 13. Allowance for Uncollectible Accounts $2,330 Accounts receivable (Dean Sheppard) $2,330.
May 15. Cash $1,170 Allowance for Uncollectible Accounts $1,930 Accounts receivable (Dan Pyle) $3,100
July 27. Cash $2,330 Accounts receivable (Dean Sheppard)
Accounts receivable $2,330 Allowance for Uncollectible Accounts $2,330
Dec. 31 Allowance for Uncollectible Accounts $13,335 Accounts receivable $13,335
Ending balance of Allowance for Uncollectible Accounts $27,900
Credit Sales during the year = $3,720,000
Expected Uncollectible = 0.75% of $3,720,000 = $27,900
Allowance for Uncollectible Accounts
Date Account Titles Debit Credit
Apr. 13. Accounts receivable
(Dean Sheppard) $2,330
May 15. Accounts receivable (Dan Pyle) 1,930
July 27. Accounts receivable $2,330
Dec. 31 Accounts receivable 13,335
Dec. 31 Ending balance 27,900
Dec. 31 Bad Debts Expense 43,165
Total $45,495 $45,495
Difference between the direct write-off method and the allowance method = expenses higher by $27,900 under the allowance method.
Total bad debts expense under allowance = $43,165
Total bad debts expense under direct write-off $15,265
Difference = $27,900
Carolyn owes $9,620 on her Electronics Boutique credit card with a 16.4% interest rate. She owes $3,970 on her Miscellaneous Goods credit cards which has a 24.6% interest rate. What is the total monthly payment needed to pay off both cards in three years, assuming she makes fixed payments and does not charge any more purchases with the card
Answer:
377.50
Explanation:
Answer: 497.12
Explanation: just got it right on the test
What is aggregate demand? You can gain or 100 points on this Place the following items in order of the magnitude of the effect on the aggregate demand curve, starting with the greatest effect and descending to the least. Keep in mind that there will be an item which has zero effect on the AD curve (because it causes movement along the curve). Activity S. 141 Start by clicking the first item in the sequence or dragging it here Drag the items below into the box above in the correct order, starting with the first item in the sequence. Current 949 Prices of tech stocks increase in the late 1990s as a result of a speculative bubble. Your grad been subr A trade war with China in the late 2010s leads to a decrease in trade. Question Help Development of computer-based technologies from the 1940s to now. People notice prices rising and an associated decrease in purchasing power. State governments in the 2010s cut their budgets for teachers, infrastructure, police, and other government expenditures.
Answer:
Aggregate demand refers to the demand for the Gross Domestic Product in a country. In other words, it is the demand for the final goods and services produced in a country within a period.
Order of effect on Aggregate Demand.
1. Development of computer-based technologies from the 1940s to now.
This will have the greatest effect on Aggregate Demand (AD) because it will lead to an increase in the long term capacity of the economy to produce goods and services thereby increasing the demand for those same goods and services.
2. State governments in the 2010s cut their budgets for teachers, infrastructure, police, and other government expenditures.
This will contribute less to AD than the one above but the effect will still be significant because government spending is a significant component of AD so reducing it will reduce AD.
3. Prices of tech stocks increase in the late 1990s as a result of a speculative bubble.
Prices of tech stocks rising will lead to more people buying these stocks thereby increasing the investment portion of AD and having a significant effect on its increase.
4. People notice prices rising and an associated decrease in purchasing power.
If people notice a decrease in purchasing power, they will begin to buy less goods and services as they cannot afford as much. This will reduce Consumption in the AD curve but will not significantly impact AD as the ones above.
5. A trade war with China in the late 2010s leads to a decrease in trade.
A trade war with China will affect the Net exports side of the AD but there will be other countries to trade with and goods will still be purchased from and sold to China in some quantity so the AD will be least affected here.
If you find yourself in trouble with a credit and you can't make your payments, what should you do?
Answer:
If you can’t make a payment now, need more time, or want to discuss payment options, contact your lenders to explain your situation, and check their websites to see if they have information that can help you. Being behind on your payments can have a lasting impact on your credit.
Explanation:
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow:
First Quarter Second Quarter Third Quarter FourthQuarter Total
Sales Revenue $90,000 $ 100,000 $105,00 $130,000 $425,000
Cost of goods sold(54,000) (60,000) (63,000) (78,000) (255,000)
Gross profit 36,000 40,000 42,000 52,000 170,000
Selling & Administrating Expenses
(8,500) 10,000 (10,500) (13,000) (42,000)
Net income $ 27,500 $ 30,000 $ 31,500 $ 39,000 $128,000
Historically, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 8 percent for each respective quarter above last year’s level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 5 percent.
Required:
1) Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada’s estimate.
2) Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks’ estimate.
Answer:
Arvada Corporation
1) Pro Forma Income Statement for the coming year using Mr. Arvada's Estimate:
(Based on 8% above each quarter's sales level)
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $97,200 $108,000 $113,400 $140,400 $459,000
Cost of goods sold (58,320) (64,800) (68,040) (84,240) (275,400)
Gross profit 38,880 43,200 45,360 56,160 183,600
Selling & Administrative
Expenses (9,720) 10,800 (11,340) (14,040) (45,900)
Net income $ 29,160 $ 32,400 $34,020 $ 42,120 $137,700
2) Pro Forma Income Statement for the coming year using Ms. Banks' Estimate:
(Based on 5% above each quarter's sales level)
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $94,500 $ 105,000 $110,250 $136,500 $446,250
Cost of goods sold (56,700) (63,000) (66,150) (81,900) (267,750)
Gross profit 37,800 42,000 44,100 54,600 178,500
Selling & Administrative
Expenses (9,450) 10,500 (11,025) (13,650) (44,625)
Net income $ 28,350 $ 31,500 $ 33,075 $ 40,950 $133,875
Explanation:
a) Data and Calculations:
Income Statements for the last four quarters:
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $90,000 $ 100,000 $105,000 $130,000 $425,000
Cost of goods sold (54,000) (60,000) (63,000) (78,000) (255,000)
Gross profit 36,000 40,000 42,000 52,000 170,000
Selling & Administrative
Expenses (8,500) 10,000 (10,500) (13,000) (42,000)
Net income $ 27,500 $ 30,000 $ 31,500 $ 39,000 $128,000
Crane Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2021: Projected benefit obligation $ 622000 Accumulated benefit obligation 449000 Fair value of plan assets 740000 Service cost 180000 Interest on projected benefit obligation 12000 Amortization of prior service cost 36000 Expected and actual return on plan assets 46500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2021 pension cost. In its December 31, 2021 balance sheet, Crane should report a pension asset / liability of
Answer:
$118,000
Explanation:
Calculation to determine what Crane should report a pension asset / liability
Fair value of plan assets $740,000
Less Projected benefit obligation ($ 622,000)
Pension asset / liability $118,000
($740,000-$622,000)
Therefore Crane should report a pension asset / liability of $118,000
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 8,600 Variable costs per unit: Direct materials $ 149 Direct labor $ 112 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 301,000 Fixed selling and administrative expense $ 653,600 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
$303
Explanation:
The computation of the absorption costing unit product cost is shown below:
= Direct materials per unit + Direct labor per unit + variable manufacturing overhead per unit + Fixed manufacturing overhead per unit
= $149 + $112 + $7 + $35
= $303
Working note:
The Fixed manufacturing overhead per unit is measured below:
= Fixed manufacturing overhead ÷ Number of units produced
= $301,000 ÷ $8,600 units
= $35
Please comment on the specific risks (if any) that are caused by the following combination of tasks. a. A sales manager, who works on commission based on gross sales, approves credit and has the authority to write off uncollectible accounts. b. The warehouse clerk, who has custodial responsibility over inventory in the warehouse, updates the inventory subsidiary ledger and prepares an inventory summary for the general ledger department. c. The billing clerk bills customers and records sales in the sales journal d. The shop foreman approves and submits time cards to timekeeping and distributes paychecks to employees. e. The accounting clerk posts to individual account receivable subsidiary accounts and performs the reconciliation of the subsidiary ledger and the general ledger control account.
Answer:
bla bla bla
Explanation:
Why is efficiency an important economic goal?
Explanation:
Efficiency reduces hunger and malnutrition because goods are transported farther and quicker. Also, advances in efficiency allow greater productivity in a shorter amount of time. Efficiency is an important attribute because all inputs are scarce.
Efficiency is an important Economic goal because it reduces the cost of production, gives highest output with less input and aims at minimum wastage of resources which in return reduces cost of goods and services for consumers.
What is Efficiency?Efficiency is the maximum level of performance that requires the fewest inputs and produces the greatest amount of output.
Economic efficiency is the distribution or allocation of all goods and factors of production in an economy to their most valued uses while reducing or eliminating waste.
What is Economic goal?Every country in the globe strives to achieve specific goals in order to become an ideal and stable economy. Countries put a lot of effort towards achieving these objectives. Every nation faces unique problems brought on by many variables that impede its development and expansion.
Hence, governments try to retain certain targets and seek to reach a given degree of growth within a year. These objectives are known as macroeconomics objectives or Economic goal.
Economic growth, full employment, price stability, economic freedom, equity, efficiency, stable financial market are some of the Economic goals that a country strive to achieve to grow and develop as whole.
scarcity is one of the important factor that impacts the growth of the country and its goals. A type of resource's scarcity can reduce profitability, slow economic growth, and raise prices. Businesses modify their operations to be as effective as feasible given their conditions using their understanding of a resource's scarcity. efficiency plays vital role in using those scarce resources to produce more output, in this way efficiency is very useful and important in a country to achieve its economic goals.
Supporting answer
To learn more about efficiency here https://brainly.com/question/23879464
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The change brought about by online competition from Amazon and Walmart are examples of _____
Answer:
Transformational change.
Explanation:
I think.. i am not sure
Game theory assumes that: Group of answer choices firms anticipate rival firms' decisions when they make their own decisions. firms ignore rival firms' decisions when they make their own decisions. a firm will always follow the pricing strategy of the dominant firm in the industry. markets are contestable because there are no barriers to entry.
Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
I'm struggling so bad with everything please help I'm so desperate
Cullumber Co. receives $343,800 when it issues a $343,800, 10%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $57,300 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
See the journal entries below.
Explanation:
The journal entries will look as follows:
Date Description Debit ($) Credit ($)
31 Dec 20 Cash 343,800
Mortgage note payable 343,800
(To record the issue of mortgage note.)
31 Dec 21 Interest expense (w.1) 34,380
Mortgage note payable (w.2) 22,920
Cash 57,300
(To record the first annual installment on Mortgage note.)
31 Dec 22 Interest expense (w.4) 32,088
Mortgage note payable (w.5) 25,212
Cash 57,300
(To record the second annual installment on Mortgage note.)
Workings:
w.1. Interest expense on December 31, 2021 = Mortgage loan amount * Interest rate = $343,800 * 10% = $34,380
w.2. Principal paid on December 31, 2021 = Annual installment payments - Interest expense on December 31, 2021 = $57,300 - $34,380 = $22,920
w.3 Mortgage loan balance on December 31, 2021 = Mortgage loan amount - Principal paid on December 31, 2021 = $343,800 - $22,920 = $320,880
w.4. Interest expense on December 31, 2022 = Mortgage loan balance on December 31, 2021 * Interest rate = $320,880 * 10% = $32,088
w.5. Principal paid on December 31, 2022 = Annual installment payments - Interest expense on December 31, 2022 = $57,300 - $32,088 = $25,212
Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the HIGH LOW method to estimate the variable and fixed components of this cost. Compute the variable component first and round the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:
Question
Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the HIGH LOW method to estimate the variable and fixed components of this cost. Compute the variable component first and round the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:
Machine-Hours Maintenance Cost
March 3,135 $48,340
April 3,095 $47,993
May 3,133 $48,345
June 3,157 $48,548
July 3,065 $47,733
August 3,076 $47,830
September 3,084 $47,880
October 3,125 $48,247
November 3,098 $48,014
Answer:
Variable maintenance cost per hour =$9
Fixed maintenance cost =$ 20,581
Explanation:
Using the a high and low technique, total cost can be analyzed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.
Variable cost per activity unit
= (Cost at high activity - Cost at low activity)/ (high activity - low activity)
Fixed cost = Total cost at high activity - (VC per act × high activity)
So, we can apply the above formula to the given data:
High 3,157 $48,548
Low 3,065 $47,733
Variable maintenance cost = ($48,548- $47,733)/(3,157 - 3,065)
= $9
Fixed maintenance cost = 48,548 - (8.86×3,157)= $ 20,581
Variable maintenance cost per hour =$9
Fixed maintenance cost =$ 20,581
Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (8,100 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.40 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar
Answer: $0.06
Explanation:
The standard direct materials cost per bar of chocolate will be:
Cocoa:
Quantity = 480 lbs.
Price = $0.40 per lb
Amount = $192
Sugar:
Quantity = 150 lbs.
Price = $0.60 per lb
Amount = $90
Milk:
Quantity = 120 gal
Price = $1.70 per gal
Amount = $204
Total amount = $192 + $90 + $204 = $486
Since there are 8100 bars of chocolate, the cost per bar will be:
= $486 / 8100
= $0.06
The average daily net transaction accounts of a local bank during the most recent reserve computation period is $687 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $35.23 million, and the average daily vault cash corresponding to the maintenance period is $12.74 million. Is this bank in compliance with reserve requirements
Answer:
No, the bank is short on daily reserves by $12.56 million.
Explanation:
The daily average net required would be calculated as follows:
$15.2 million x 0% = 0
($110.2 million - $15.2 million) x 3% = $2.85 million
($687 million - $110.2 million) x 10% = $57.68 million
$2.85 million + $57.68 million = $60.53 million
$60.53 million - $12.74 million = $47.79 million (Daily Average Net Required)
The bank needs to maintain largest average daily reserves for $47.79 million. In this case the bank is maintaining only average reserve of $35.23 million at the Fed. This means that it is short by $12.56 million in order to meet the required reserves.
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Merchandise (Invoice Amount) Freight Paid by Seller Freight Terms Returns and Allowances (Invoice Amount) a. $6,700 $100 FOB destination, 2/10, n/30 $1,750 b. 3,300 200 FOB shipping point, 1/10, n/30 1,200 a. $fill in the blank 1 b. $fill in the blank 2
Answer and Explanation:
The computation of the amount is shown below:
a. For FOB destination
= Merchandise price - Returns and allowances - discount
= $6,700 - $1,750 - ($6,700 - $1,750 )× 2%
= $6,700 - $1,750 - $99
= $4,851
b. For FOB shipping point
= Merchandise price - Returns and allowances - discount + Freight In
= $3,300 - $1,200 - ($3,300 - $1,200) × 1% + $200
= $3,300 - $1,200 - $21 + $200
= $2,279
Which of the following would be determined as a social force in an environmental scan?
Answer:
an increase in Asian immigration
