Answer:
A. Dr Cash $510,000
Cr Bonds Payable $500,000
Cr Premium on Bonds Payable $10,000
B. Dr Interest expense $24,667
Dr Premium on bonds payable$333
Cr Interest Payable $25,000
C. Dr Interest Payable $25,000
Cr Interest Expense $25,000
D. Dr Bond payable $500,000
Cr Cash $500,000
Explanation:
(a) Preparation of the journal entry to record the issuance of the bonds
Dr Cash $510,000
($500,000 x 1.02 = $510,000)
BCr BondsPayable $500,000
Cr Premium on Bonds Payable $10,000
($510,000-$500,000)
(To record the issuance of the bonds)
B. Preparation of the journal entry to record Accrual of interest and the premium amortization
Dr Interest expense $24,667
($25,000-$333)
Dr Premium on bonds payable$333
($10,000/30)
Dr Interest Payable $25,000
($500,000*5%)
(To record Accrual of interest and the premium amortization)
C. Preparation of the journal entry to record the payment of interest
Dr Interest Payable $25,000
($500,000*5%)
Cr Interest Expense $25,000
(To record the payment of interest)
D. Preparation of the journal entry to record the bonds at maturity
Dr Bond payable $500,000
Cr Cash $500,000
(To record the bonds at maturity)
Jack went to a farm and purchased a fox, a chicken, and an avocado. On his way home, Jack came to the bank of a river and rented a boat. But crossing the river by boat, Jack could carry only himself and a single one of his purchases: the fox, the chicken, or the avocado. If left unattended together, the fox would eat the chicken, or the chicken would eat the avocado. Jack's challenge was to carry himself and his purchases to the far bank of the river, leaving each purchase intact. How did he do it
Answer:
The answer is explained step by step below
Explanation:
In order to solve this dilemma, Jack would first take the chicken across the river, leaving the fox and the avocado behind. This is because if the chicken was left out then it would either be eaten by the fox or it would eat the avocado.
Then next Jack would go back and get the fox. This time when he reaches the other side of the river along with the fox, he would take the chicken back with him to the starting side. If he left the fox along with the chicken then it would have eaten it.
Then when he drops the chicken at the starting side and he would take the avocado with him to the other side of the river.
Finally, he would go back and get the chicken. Thus, bringing all the three items to the across side of the river without losing either of them.
Department W had 2,880 units, one-third completed at the beginning of the period. 13,400 units were transferred to Department X from Department W during the period, and 800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs. What is the total number of units to be assigned costs on the cost of production report for Department W
Answer: 12840
Explanation:
Beginning work in process = 2/3 × 2880 = 1920
Add: Completed unit = 10520
Add: Ending work in process = 1/2 × 800 = 400
Total equivalent units = 1920 + 10520 + 400 = 12840
Therefore, the total number of units to be assigned costs on the cost of production report for Department W is 12840.
Note that:
Completed unit = 13400 - 2880 = 10520
Determine the original investment for the following related subsequent cash flows if the internal rate of return (IRR) is 12%.
A :
$17,438.62
B :
$19,975.40
C :
$22,767.86
D :
$21,875.00
Answer:
B : $19,975.40
Explanation:
The computation of the original investment is shown below:
Year Cash flows Discount rate at 12% Present value
1 $10,000 0.8926 $8,928.57
2 $8,500 0.79719 $6,776.15
3 $6,000 0.71178 $4,270.68
Total present value $19,975.40
In the case of IRR, the total of present value would be equivalent to the orginal investment
b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,560 for transportation, $1,295 for lodging, and $430 for meals during this part of her trip, which she considers personal in nature. What amount of the total costs can Melissa deduct as business expenses
Answer: $0
Explanation:
Melissa can only deduct business expenses i.e. expenses relating to a business purpose for travelling such as to complete a deal or attend a business conference.
Melissa does not get to deduct expenses for personal leisure activities. All the expenses listed above relate to her sightseeing of the national parks and are therefore personal leisure expenses that cannot be deducted as business expenses.
a company purchased $3000 of merchandise on july 5 with terms 3/10, n/30. On july 7, it returned $800 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on july 12 is:
Answer:
Cash paid = Net Sales - Return - Discount
Cash paid = $3,000 - $800 - ($2,200*3%)
Cash paid = $3,000 - $800 - $66
Cash paid = $2,134
Merchandise Inventory = $2,200 * 3%
Merchandise Inventory = $66
Journal entry to record the payment on July 12
Date Account Titles Debit Credit
Accounts Payable $2,200
Merchandise Inventory $66
Cash $2,134
what is the yearly salary and hourly wage for a barnes and noble bookseller? it's for a project.
Answer:
in the US: $13.30 per hour
Explanation:
Answer:
$13.30 hourly. 378.30 yearly.
Explanation:
33) Daily Company has been using the same machines to make its name-brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $100,000. The old machines presently have a book value of $60,000 and a market value of $6,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $50,000 and have operating expenses of $9,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $15,000 a year. The new machines are expected to increase quality, justifying a price increase and thereby increasing sales revenue by $5,000 a year. Select the true statement. A. The company will be $12,000 better off over the five-year period if it replaces the old equipment. B. The company will be $11,000 better off over the five-year period if it replaces the old equipment. C. The company will be $36,000 better off over the five-year period if it replaces the old equipment. D. The company will be $20,000 better off over the five-year period if it keeps the old equipment.
Answer:
Daily Company
B. The company will be $11,000 better off over the five-year period if it replaces the old equipment.
Explanation:
a) Data and Calculations:
Old Machines:
Cost of old machines = $100,000
Book value = $60,000
Market value = $6,000
Operating expenses per year = $15,000 (Total = $75,000)
Remaining useful life = 5 years
Salvage value = $0
New Machines:
Cost of new machines = $50,000
Operating expenses per year = $9,000 (Total = $45,000)
Estimated useful life = 5 years
Salvage value = $0
Incremental Cash Flows:
Old Machines New Machines
Cost of machines ($50,000)
Operating expenses ($75,000) (45,000)
Sale of old machines 6,000
Sales revenue increase 25,000
Net cash outflows $75,000 $64,000
Overall benefit = $11,000 (reduced net cash outflows from $75,000 to $64,000)
Allen deposits $2,000 in his local bank. He earns 2 percent interest each year on his deposit. Jessica borrows $1,000 from the same bank. She is charged a 7 percent interest rate on the borrowed money. How do these bank practices affect the money supply in the community?
A. In Allen's case, but not Jessica's, the money supply decreases.
B. In both Allen's and Jessica's cases, the money supply decreases.
C. In Jessica's case, but not Allen's, the money supply stays the same.
D. In neither Jessica's nor Allen's case does the money supply increase.
Answer:
A is the correct answer,
Explanation:
I got it right on the test
when input costs increase
there is a movement up along an existing supply curve
the supply curve shifts to the right
the supply curve shifts to the left
there is a movement down along an existing supply curve
Answer:
there is a movement up along an existing supply curve
Explanation:
Hope it helps u
FOLLOW MY ACCOUNT PLS PLS
The football coach at a midwestern university was given a 5-year employment contract that paid $225,000 the first year, and increased at an 8% uniform rate in each subsequent year. At the end of the first year's football season, the alumni demanded that the coach be fired. The alumni agreed to buy his remaining years on the contract by paying him the equivalent present sum, computed using a 12% interest rate. How much will the coach receive
Answer:
the amount received is $822,462
Explanation:
The computation of the amount received is shown below:
= Amount ×{(1 - (1 + growth rate)^n(1 + interest rate)^-n)÷ (interest rate - growth rate)}
= $243,000 × {(1 - (1 + 0.08)^4(1.12)^-4) ÷ (12% - 8%)
= $243,000 × (0.135385 ÷ 0.04)
= $822,462
The $243,000 comes from
= $225,000 × (1 + 0.08)
= $243,000
hence, the amount received is $822,462
Erik is acting in a single agency capacity in a transaction. What does this mean?
Place the three components of aggregate demand in order of relative size, starting with the one representing the largest component of GDP.
a. net exports
b. consumption
c. investment
Answer:
The order, in terms of relative size, will be as follows:
(b) Consumption
(c) Investment
(a) Net Exports
Explanation:
The aggregate demand consists of the sum of four components which are government spending, consumption, investment and net exports.
Amongst which the consumption is the largest component of all, as it represents the total income spent by an individual or household on the goods and services in the economy. It's calculation is dependent of several factors such as disposable income, interest rates and future economic conditions.
Investment is the second largest component, after consumption, as shifts in it's value results in improvement/fall on the quality and quantity factors of production in the long run.
In terms of size when compared with the other components, the Net Exports stands as the smallest component. Practically due to the fact that it is calculated after deducting imports from exports.
In your opinion, what's the best strategy
Select one:
a. E-tailing
b. Depends
O c. Both E-tailing and Bricks and Mortar
O d. Bricks and mortar
Answer:
o both e-talling and bricks and mortar
The best strategy depends on the specific business, target market and industry that is "Both E-tailing and Bricks and Mortar". The correct option is C.
Combining E-tailing (online retailing) and bricks-and-mortar (physical stores) offers a comprehensive approach to reach a broader customer base and cater to diverse shopping preferences.
The E-tailing provides convenience, global reach, and cost-effectiveness, enabling businesses to tap into the growing online market.
On the other hand, bricks-and-mortar stores offer a tactile experience, face-to-face customer interactions, and immediate fulfillment and enhancing customer engagement and brand loyalty.
Therefore, the correct option is C.
To know more about target market here,
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how to get rid of detrimental body language in the negotiation
Answer:
The answer is below
Explanation:
There are various ways to get rid of detrimental body language in the negotiation. Some of which are:
1. Speak with confidence and coherently: this will show you're not desperate
2. Maintain eye contact: keeping eye contact during negotiations shows you're sure of what you're saying and won't be smooth-talked or dominated.
3. Make a good handshake: some believe a firm handshake shows you're strong character, hence the other party will respect your opinions or negotiations point of view better.
4. Ensure you keep a nice posture or position: fidgeting around met be translated as being weak or uncomfortable, hence, the other party may think you're not sure of yourself.
On January 1, 2019, the board of directors was considering the distribution of a $63,500 cash dividend. No dividends were paid during 2017 and 2018. Required: Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: The preferred stock is noncumulative. The preferred stock is cumulative. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock
Answer:
1-a. We have:
Total amount to be paid as dividend to preferred stockholders = $9,312.40
Amount to be paid as dividend per share to preferred stockholders = $1.24 per share
Total amount to be paid as dividend to common stockholders = $54,287.60
Amount to be paid as dividend per share to common stockholders = $1.13 per share
1-b. We have:
Total amount to be paid as dividend to preferred stockholders = $27,937.20
Amount to be paid as dividend per share to preferred stockholders = $3.72 per share
Total amount to be paid as dividend to common stockholders = $35,662.80
Amount to be paid as dividend per share to common stockholders = $0.74 per share
2. The reason is that the unpaid dividends in 2017 and 2018 were carried forward and paid together with 2019 dividend to cumulative preferred stockholders, but this cannot be done when the preferred stock is noncumulative.
3. Some the factors include making preferred stock noncumulative, declaration of a higher cash dividend, redemption of redeemable preference shares so that only common stockholders receive dividends, and among others.
Explanation:
Note: This question is not complete and there is an error in the amount of the dividend being considered. The complete question is therefore presented with the correct dividend amount before answering the question as follows:
The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018:
Common stock, par $12 per share, 48,000 shares outstanding.
Preferred stock, 8 percent, par $15.5 per share, 7,510 shares outstanding.
Retained earnings, $236,000.
On January 1, 2019, the board of directors was considering the distribution of a $63,600 cash dividend. No dividends were paid during 2017 and 2018.
Required:
1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions:
a. The preferred stock is noncumulative.
b. The preferred stock is cumulative.
2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
3. What factors would cause a more favorable dividend for the common stockholders?
The explanation of the answrs is now given as follows:
1-a. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under the assumption that the preferred stock is noncumulative.
Total amount to be paid as dividend to preferred stockholders = Annual preferred stock dividend = 8% * $15.5 * 7,510 = $9,312.40
Amount to be paid as dividend per share to preferred stockholders = Total amount to be paid as dividend to preferred stockholders / Number of Preferred shares outstanding = $9,312.40 / 7,510 = $1.24 per share
Total amount to be paid as dividend to common stockholders = Amount of cash dividend being considered - Total amount to be paid as dividend to preferred stockholders = $63,600 - $9,312.40 = $54,287.60
Amount to be paid as dividend per share to common stockholders = Total amount to be paid as dividend to common stockholders / Number of common shares outstanding = $54,287.60 / 48,000 = $1.13 per share
1-b. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under the assumption that the preferred stock is cumulative.
Annual preferred stock dividend = 8% * $15.5 * 7,510 = $9,312.40
Total amount to be paid as dividend to preferred stockholders = Annual preferred stock dividend for 3 years for 2017, 2018 and 2019 = $9,312.40 * 3 = $27,937.20
Amount to be paid as dividend per share to preferred stockholders = Total amount to be paid as dividend to preferred stockholders / Number of Preferred shares outstanding = $27,937.20 / 7,510 = $3.72 per share
Total amount to be paid as dividend to common stockholders = Amount of cash dividend being considered - Total amount to be paid as dividend to preferred stockholders = $63,600 - $27,937.20 = $35,662.80
Amount to be paid as dividend per share to common stockholders = Total amount to be paid as dividend to common stockholders / Number of common shares outstanding = $35,662.80 / 48,000 = $0.74 per share
2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
The reason is that the unpaid dividends in 2017 and 2018 were carried forward and paid together with 2019 dividend to cumulative preferred stockholders, but this cannot be done when the preferred stock is noncumulative.
3. What factors would cause a more favorable dividend for the common stockholders?
Some the factors include making preferred stock noncumulative, declaration of a higher cash dividend, redemption of redeemable preference shares so that only common stockholders receive dividends, and among others
6. What are complements? evonomics
Answer:
The answer is below
Explanation
Complements in economics is a term that is used to describe goods that are used or consumed together. For example, pencil and eraser, pen and paper, etc.
Complements are goods in economics whose value is increased when combined with other goods. Another example of complement goods is movies and popcorn
Whispering is a corporation that sells breakfast cereal. Based on the accounts listed below, what are Whispering's total trade receivables?
Income tax refund due $370 Advance due to the company from the company president 200 3-month note due from Whispering's main customer 1570 Interest due this month on the above note 150 Due and unpaid from this month's sales 9730 Due and unpaid from last month's sales 1000
Answer:
the total trade receivable is $12,300
Explanation:
The computation of the total trade receivable is shown below:
= note due from customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales
= $1,570 + $9,730 + $1,000
= $12,300
Hence, the total trade receivable is $12,300
The other items would not be considered as it is not a trade receivables
In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing The Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity
Answer: See explanation
Explanation:
The implicit assumptions that is masde by the publisher is that price elasticity is elastic. This implies that a change in price has a large impact on the quantity demanded. In this case, an increase in price will bring about a large reduction in demanded.
On the other hand, the analyst believee the price elasticity is inelastic. This means price change will have a little or no change in the quantity demanded.
Account for short-term debt and sales tax—two accounting cycles
The following transactions apply to Walnut Enterprises for 2016, its first year of operations:
a. Received $41,500 cash from the issue of a short-term note with a 7 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.
b. Received $119,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 8 percent.
c. Paid $70,500 cash for other operating expenses during the year.
d. Paid the sales tax due on $99,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.
e. Recognize the accrued interest at December 31, Year 1.
The following transactions apply to Walnut Enterprises for Year 2:
a. Paid the balance of the sales tax due for Year 1.
b. Received $144,000 cash plus applicable sales tax from performing services.
c. The services are subject to a sales tax rate of 8 percent. Repaid the principal of the note and applicable interest on April 1, Year 2.
d. Paid $83,500 of other operating expenses during the year.
e. Paid the sales tax due on $119,000 of the service revenue.
f. The sales tax on the balance of the revenue is not due until Year 3.
Required
1. Record the 2016 transactions in general journal form.
2. Post the transactions to T-accounts.
3. Prepare a balance sheet, statement of changes in stockholders’ equity, income statement, and statement of cash flows for 2016.
4. Prepare the closing entries and post them to the T-accounts.
5. Prepare a post-closing trial balance.
6. Repeat Requirements a through e for 2017.
Answer:
Walnut Enterprises1. General Journal
Account Titles Debit Credit
a. Cash $41,400
7% Note Payable $41,400
To record the issuance of the one-year note payable.
b. Cash $128,520
Service Revenue $119,000
Sales Tax 9,520
To record the receipt of cash and Sales tax of 8%.
c. Other operating
expenses $70,500
Cash $70,500
To record the payment of the other operating expenses.
d. Sales Tax $7,920
Cash $7,920
To record payment of sales tax.
e. Interest Expense $2,173.50
Interest Payable $2,173.50
To record the interest expense.
Year 2: see attached.
Explanation:
a) Data and Analysis:
a. Cash $41,400 7% Note Payable $41,400
b. Cash $128,520 Service Revenue $119,000 Sales Tax Payable $9,520 Sales tax of 8%.
c. Other operating expenses $70,500 Cash $70,500
d. Sales Tax Payable $7,920 Cash $7,920
e. Interest Expense $2,173.50 Interest Payable $2,173.50
Year 2:
a. Sales Tax Payable $1,600 Cash $1,600
b. Cash $155,520 Service Revenue $144,000 Sales Tax $11,520
c. 7% Note Payable $41,400 Interest Expense $724.5 Interest Payable $2,173.50 Cash $44,298
d. Other operating expenses $83,500 Cash $83,500
e. Sales Tax $9,520 Cash $9,520
the sale of a computer at net book value had been credited in error to the Sales account 230 how do we record on the journal
Answer:
koneksyon
Explanation:
dahil Dito makikita kung gani ka katipid
8 Hospital administrator Jake Rosen9 was recently con victed for fraud he committed against his employer, Cedar Hospital Systems. Over a period of six years, he allegedly made payments to a dummy company for maintenance charges while simultaneously running a scheme with maintenance contractors where he either paid them for work never performed or overpaid them for work. The skyscraper where Jake worked was only 10 years old. Maintenance charges rose from $5.2 mil lion in 1994 to $16.4 million in 2000. It was worth noting that the judge on the case questioned whether Cedar Hospital Systems deserved less than full restitu tion for failing to notice the problem. However, it was determined that federal law on restitution does not al low such charges, so Jake Rosen will be making monthly payments towards the alleged $8 million he stole until he makes full restitution after leaving prison. He was able to quickly repay $3.2 million of the theft with assets recovered by the government, including two homes and a nice yacht. Not bad for a man who was supposed to be making $90,000 per year. 1. In what specific types of fraud was Jake Rosen engaged
Answer:
Asset Misappropriation.
Explanation:
The type of fraud that Jake Rosen engaged in is called Asset Misappropriation.
Asset Misappropriation happens when a person diverts the assets of the company they work for or the client they represent, for their own personal use.
Jake Rosen diverted the funds of the hospital for his own personal use to enabled the purchase of two homes and a nice yacht amongst other things thereby making him guilty of asset misappropriation.
Sage Hill Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equipment has a useful life of 10 years. Sage Hill wants a guarantee that the residual value of the equipment at the end of the lease is at least $4,000. MTBA agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $2,500 at the end of the lease term. If the fair value of the equipment at lease commencement is $100,000, what would be the amount of the annual rental payments Sage Hill demands of MTBA, assuming each payment will be made at the beginning of each year and Sage Hill wishes to earn a rate of return on the lease of 8%
Answer:
$14,621.99
Explanation:
Calculation to determine what would be the amount of the annual rental payments Sage Hill demands of MTBA,
Let X be the annual lease payments
Annuity factor of 8% for 9 years = 6.74664
Discounting factor of 8% at beginning of 9 years = 0.54027
Annual Rental Payments=$100,000 = (X * 6.74664) + ($2,500 * 0.54027)
Annual Rental Payments=$100,000 = (X * 6.74664) + $1350.675
Annual Rental Payments=(X * 6.74664) = $100,000 - 1,350.675
Annual Rental Payments=X = 98,649.325 / 6.74664
Annual Rental Payments=X = $14,621.99
Annual Rental Payments=X = $14,621.99
Therefore, what would be the amount of the annual rental payments Sage Hill demands of MTBA , is $14,621.99
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 8 million common shares, $1 par per share, and 1 million preferred shares, $50 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Feb. 12 Sold 2 million common shares, for $9 per share.
Feb 13 Issued 40,000 common shares to attorneys in exchange for legal services.
Feb 13 Sold 80,000 of its common shares and 4,000 preferred shares for a total of $ 945,000
Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000.
Answer:
Date Account Title Debit Credit
Feb 12 Cash $18,000,000
Common Stock $2,000,000
Paid in Capital in excess of Com- $16,000,000
mon stock par value
Working
Cash = 2 million shares * $9 = $18,000,000
Common stock = 2 million * $1 par value = $2,000,000
Date Account Title Debit Credit
Feb 13 Legal expenses $360,000
Common Stock $40,000
Paid in Capital in excess of Com- $320,000
mon stock par value
Working
Cash = 40,000 shares * 9 = $360,000
Common Stock = 40,000 * 1 = $40,000
Date Account Title Debit Credit
Feb 13 Cash $945,000
Common stock $80,000
Preferred Stock $200,000
Paid in Capital in excess of Com- $640,000
mon stock par value
Paid in Capital in excess of Pre- $25,000
ferred stock par value
Working:
Common stock = 80,000 shares * 1 = $8,000
Preferred stock = 4,000 shares * $50 = $200,000
Paid in Cap, Common = 80,000 * (9 - 1) = $640,000
Date Account Title Debit Credit
Nov. 15 Equipment $3,688,000
Common Stock $380,000
Paid in Capital in excess of Com- $3,308,000
mon stock par value
Working:
Common stock = 380,000 * $1 = $380,000
What is the fifth principle of money?
O Tell the truth
O Focus on what you have
O Money has no life or power of its own.
O Do what is best for you and your money
Answer:
focus on what you have
Explanation:
i hope this will help
Garvey Company (the lessee) entered into an equipment lease with Richie Company (the lessor) on January 1 of Year 1. 1. The equipment reverts back to the lessor at the end of the lease, and there is no bargain purchase option. The equipment is not specialized for Garvey. 2. The lease term is 5 years and requires Garvey to make annual payments of $65,949.37 at the end of each year. 3. The discount rate is 10%, which is implicit in the lease. Garvey knows this rate. 4. The fair value of the equipment at the lease inception is $250,000. The present value of an ordinary annuity of five payments of $65,949.37 each at 10% is $250,000. 5. The equipment has an estimated economic life of 7 years and has zero residual value at the end of this time. Straight-line depreciation is used for similar assets. Required: Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales-type lease. Assume that the lessee is required to make payments on December 31 each year. Also assume that Richie had purchased the equipment at a cost of $200,000.
Answer:
Jan.1
Dr Lease Receivable $250,000
Cr Sales Revenue $250,000
Jan. 1
Dr Cost of Goods Sold $200,000
Cr Equipment Leased to Others $200,000
Dec. 31
Dr Cash $65,949.37
Cr Lease Receivable $40,949.37
Cr Interest Income $25,000
Explanation:
Preparation of the journal entries that Richie Company (the lessor) would make in the first year of the lease
Jan.1
Dr Lease Receivable $250,000
Cr Sales Revenue $250,000
Jan. 1
Dr Cost of Goods Sold $200,000
Cr Equipment Leased to Others $200,000
Dec. 31
Dr Cash $65,949.37
Cr Lease Receivable $40,949.37
Cr Interest Income $25,000
($250,000*10%)
If the market price is P1: Group of answer choices the firm will break even by producing a quantity of Q2. the firm may make a profit if it can increase the demand for its product. the firm will experience a loss and raise its price to P2. The firm will then break even. the firm will experience a loss since price is less than ATC.
Answer:
the firm will experience a loss since price is less than ATC.
Explanation:
In the case of the perfectly competitive firm when the market price is P_1 so the curve i.e. shown in the attachment represent that the firm would have a loss as the price would be lower than the average total cost i.e. ATC
So according to the given situation, the last option is correct
And the rest of the options would be wrong
Consider each situation for Kathy, Inc. below independently.
Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. The land was appraised at $400,000.
Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required:
a. At what amount should land be recorded?
b. What is the total amount that should be recorded for additional paid-in capital from the second situation?
Answer:
Kathy, inc.
a. The land should be recorded initially at $250,000. This is what it caused the company to acquire it in exchange for common stock.
b. The total amount that should be recorded for additional paid-in capital from the second situation is:
= $4,000.
Explanation:
Data and Calculations
a. Common stock issued for land = 10,000
Par value of common stock = $25
Market value of common stock = $35
Appraised value of land = $400,000
Value of land = $250,000 ($25 * 10,000)
b. Outstanding common stock = 500,000 shares
New issue of 2,000 $10 par Class A common stock at $12 = $24,000
New issue of 100 shares of no-par Class B common stock at $20 = $2,000
Total amount received = $26,000
Common stock value:
2,000 at $10 = $20,000
Additional paid-in capital = $4,000 ($24,000 - $20,000)
For a particular flight from Dulles to SF, an airline uses wide-body jets with a capacity of 370 passengers. It costs the airline $4,000 plus $145 per passenger to operate each flight. Through experience the airline has discovered that if a ticket price is $T, then they can expect (370−0.56T) passengers to book the flight. Determine the ticket price, T, that will maximize the airline's profit
Answer:
The ticket price, T, that will maximize the airline's profit is $402.86.
Explanation:
This can be determined as follows:
Number of passenger = (370−0.56T)
Cost = 4000 + (145 * Number of passenger) = 4000 + 145(370−0.56T) = 4000 + 53,650.00 - 81.20T = 57650 – 81.20T
Revenue = T * Number of passenger = T(370 – 0.56T) = 370T – 0.56T^2
P = Profit = Revenue – Cost = 57650 – 81.20T – (370T – 0.56T^2) = 57650 – 81.20T – 370T + 0.56T^2 = 57650 - 451.20T + 0.56T^2 ……………….. (1)
Differentiating equation (1) with rest to T, equate to 0 and solve for T, we have:
P’ = –451.20 + 1.12T = 0
1.12T = 451.20
T = 451.20 / 1.12
T = 402.86
Therefore, the ticket price, T, that will maximize the airline's profit is $402.86.
what is market management
Answer:
Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.
Answer:
Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.
what problems seem to emerge when an organization gets larger
Answer:
Difficulties with sharing due to the overpopulation
Explanation:
