Answer:
If the interest rate is 10.5% the value of the investment at the time of retirement will be $1,189,576.02 higher.
Explanation:
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
When i=8%
FV= 225,000*(1.08^25)
FV= $1,540,906.92
When i=10.5%
FV= 225,000*(1.105^25)
FV= $2,730,482.95
Difference= 2,730,482.95 - 1,540,906.92= $1,189,576.02
If the interest rate is 10.5% the value of the investment at the time of retirement will be $1,189,576.02 higher.
Determine the variance and indicate if each variance is favorable (F) or unfavorable (U). Variances are absolute numbers so no ( ) or - for negative. Amounts are in whole dollars and can contain a $ and a comma or not. For example, $123,456 or 123456. Indicate F or U for each variance. Item Budget Actual Variance F or U Sales price $400 $390 Cost of goods sold $192,500 $180,000 Materials usage $90,000 $89,000 Sales revenue $360,000 $390,000 Selling & Admin Expense $24,500 $20,000
Answer:
Item Budget Actual Difference F/U
Sales price $400 $390 $10 U
COGS $192,500 $180,000 $12,500 F
Materials usage $90,000 $89,000 $1,000 F
Sales revenue $360,000 $390,000 $30,000 F
Sell&Admin Exp, $24,500 $20,000 $4,500 F
What is Trumpism and what are its consequences for society?
Answer:
Trumpism is a term for the political ideology, style of governance, political movement and set of mechanisms for acquiring and keeping power that are associated ...Explanation:
Farm workers in Oaks Farmville face a 1/85 probability of death at work and each of them receives a yearly wage of $159,106. Farm workers in Valley Farm face a 1/127 of death at work. Assume that both kinds of job require the same level of skills, effort and that all workers have the same preferences and tastes. The values of an statistical life is computed to be $1,262,558. How much should the workers in the less risky job should get paid
Answer:
$154,182.02
Explanation:
Probability of Farm workers in ( O.F ) facing death at work = 1/85 = 0.012
Probability of Farm workers in ( V.F ) facing death at work = 1/127 = 0.008
Value of a statistical life = $1,262,558
Determine how much the workers in less risky job should get paid
The less risky job is working in Valley farm(V.F ) with a death probability of = 1/127 = 0.008
The more risky job is working in valley farm ( probability = 1/85 = 0.012 )
Yearly wage of risky job = $159106
payment for less risky job can be calculated using the relation below
statistical life = ( cost incurred to reduce risk) / ( percentage of risk to death reduced ) ---------------- ( 1 )
cost incurred to reduce risk = yearly wage to high risk workers - yearly wage to low risk workers
= 159106 - X
percentage of risk to death reduced = (probability of death to high risk workers) - ( probability of death to low risk worker )
= 1/85 - 1/127 = 0.0039
back to relation 1
1262558 = ( 159106 - X ) / ( 0.0039)
159106 - X = 1262558 ( 0.0039 )
hence X ( amount to be paid to workers in the less risky job )
X = 159106 - 4923.9762 = $154,182.02
Sheridan Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 45% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $794000. What is the required journal entry as a result of this litigation
Answer:
No Journal entry. Disclose contingent liability of $794000 in Notes to Financial Statements
Explanation:
A Provision is recognized when it is Probable ( Probabity > 50%) that there would be an outflow of economic resources and that a reliable estimate can be made - IAS 37
Since there is a 45% chance of losing, it is not probable to recognize a provision. Thus a Contingent liability is recognized instead
Contingent Liabilities are only disclosed if the amounts are significant and are not shown on the face of the financial statement (no journal entry)
The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is:________
a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000
c. debit Rent Expense, $24,000; credit Prepaid Rent, $8,000
d. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
Answer:
the answer is b bro
Explanation:
have a wonderful day bro
Journalize the following selected transactions for January. Journal entry explanations may be omitted.
Jan. 1 Received cash from the investment made by the owner, $14,000.
2 Received cash for providing accounting services, $9,500.
3 Billed customers on account for providing services, $4,200.
4 Paid advertising expense, $700.
5 Received cash from customers on account, $2,500.
6 Owner withdrew $1,010.
7 Received telephone bill, $900.
8 Paid telephone bill, $900.
Answer:
Jan. 1 Received cash from the investment made by the owner, $14,000.
Dr Cash 14,000
Cr Capital, owner 14,000
Jan. 2 Received cash for providing accounting services, $9,500.
Dr Cash 9,500
Cr Service revenue 9,500
Jan. 3 Billed customers on account for providing services, $4,200.
Dr Accounts receivable 4,200
Cr Service revenue 4,200
Jan. 4 Paid advertising expense, $700.
Dr Advertising expense 700
Cr Cash 700
Jan. 5 Received cash from customers on account, $2,500.
Dr Cash 2,500
Cr Accounts receivable 2,500
Jan. 6 Owner withdrew $1,010.
Dr Withdrawals 1,010
Cr cash 1,010
Jan. 7 Received telephone bill, $900.
Dr Utilities expense 900
Cr Accounts payable 900
Jan. 8 Paid telephone bill, $900.
Dr Accounts payable 900
Cr Cash 900
Contracts are typically private agreements in that they bind the two parties and no one else. Thus, parties not in privity of contract usually do not have rights to a contract. However, there are exceptions to the general rule. This activity outlines the importance of paying special attention to ramifications that result from assigning or delegating a contract, including the effects these actions have on assignees. Read the case and then answer the questions to create a strategy for how someone might determine the results of the scenario. Katerina owned property in Miami right on the beach that she leased to Scotty. Scotty used the property for business purposes, which was allowed under the lease. Three months into the lease, Scotty transferred his lease to a sports agent company for $5,000, which became the new tenant under the lease. Katerina became upset with Scotty's transferring of the lease because she thought that since she leased the property to Scotty, he should not be allowed to let anyone else lease the property. Furthermore, she had a strong aversion to sports agents after watching the movie Jerry Maguire, and she did not want any money-grubbing sports agents working on her property. Subsequently, Katerina wonders whether there is any way she can limit the ability of Scotty to transfer the lease. Walk through the different types of transferring of rights and duties. What type of transfer of rights or duties is described in this case
Answer:
The type of transfer of rights or duties described in this case is an assignment of contract rights.
Explanation:
Transfer of contract rights or duties may be either the assignment or the delegation of contractual rights and responsibilities to a third party. While assignment involves the transfer of rights or benefits from the assignor to the assignee, delegation involves the appointment of another party to perform one's duties under a contract.
Opinion polling and market research are examples of stratified random sampling.
A
True
B
False
What is capital market
Answer:
Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions. Capital market consists of primary markets and secondary markets. ...
Explanation:
Suppose that Portugal and Germany both produce oil and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 barrels of oil while Germany's opportunity cost of producing a pound of cheese is 11 barrels of oil.
By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of oil.
Suppose that Portugal and Germany consider trading cheese and oil with each other. Portugal can gain from specialization and trade as long as it receives more than of oil for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than of cheese for each barrel of oil it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Germany and Portugal to gain from trade?
a. 7 barrels of oil per pound of cheese
b. 18 barrels of oil per pound of cheese
c. 2 barrels of oil per pound of cheese
d. 5 barrels of oil per pound of cheese
Answer:
Portugal and Germany and Comparative Advantage
a. Portugal
b. Germany
c. 3 barrels of oil
d. 1/11 barrels of cheese
e. 4 (11/3) barrels of oil per pound of cheese.
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of oil
Germany's opportunity cost of producing a pound of cheese = 11 barrels of oil
3/11 = 0.27
b) Portugal enjoys comparative advantage in the production of cheese while Germany enjoys comparative advantage in the production of oil because Portugal can produce cheese at lower costs than Germany while Germany can produce oil more efficiently than Portugal. When these two countries specialize in the production of the product that they enjoy comparative advantage, more goods will be produced in total, and they can exchange their surpluses with each other.
An Energy Star air conditioner unit costs $300 while a standard unit costs $200. The two units have the same cooling capacity. The Energy Star unit costs 5 cents per hour less to run. If you buy the Energy Star unit and run it for 12 hours per day for 6 months of the year, how long does it take to recover the $100 extra cost
Answer: 167 days
Explanation:
Energy star unit saves 5 cents per hour.
When run for 12 hours per day it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
Days it will take for $100 to be recovered:
= 10,000 / 60
= 166.67 days
= 167 days
In 6 months you would have saved:
= 60 cents * 180 days
= 10,800 cents
= $108
It will take a period of 167 days to recover the $100 extra cost.
Energy star unit saves 5 cents per hour and when its run for 12 hours per day, it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
The number of days it will take for $100 to be recovered:
Days = 10,000 / 60
Days = 166.67 days
Days = 167 days
In 6 months you would have saved::
Saved amount = 60 cents * 180 days
Saved amount = 10,800 cents
Saved amount = $108
In conclusion, It will requires a period of 167 days to recover the $100 extra cost.
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Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using a factor formula, and a single-cell spreadsheet function that includes an EFFECT function.
The equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per week is:_________
Answer:
$8,693
Explanation:
Effective annual interets rate: AI = (1+i/m)^n - 1
i = 3*2=6%, m = 26
AI = [1+6%/26]^26 - 1
AI = 1.0617 - 1
AI = 0.0617
Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000
30,000 = ∑[X/1.0617^n}
30,000 = 3.451 * X
X = 8693.132425383947
X = $8,693
Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years
The firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
What do you mean by present value?Present value(PV) is the present value of future cash flows or cash flows provided for a specified amount of return. Future cash flows are reduced by the discount rate, and when the discount rate is high, the present value of future cash flows decreases.
As per the given information:
[tex]\rm\,Effective \;annual \;interest \;rate: AI = (1+\frac{i}{m} )^{n} - 1\\\\i = 3\times2=6\%, \rm\,m = 26\\\\AI = [1+\dfrac{6\%}{26} ]^{26} - 1\\\\AI = 1.0617 - 1\\\\AI = 0.0617[/tex]
Let semi-annual income be $X.
So, the present value of four semiannual incomes will be aggregated to get principal invested money of $30,000
[tex]30,000 = \rm\,Summation[\frac{X}{1.0617} ^{n}]\\\\30,000 = 3.451 \times \rm\,X\\\\X = 8693.132425383947\\\\X = \$8,693[/tex]
Hence, the firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
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Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. Jackets can be sold as is to a secondhand clothing shop for $6 each.Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each.Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,000 jackets into only 3,000 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each.Required:1. Calculate the incremental income.
Answer:
ALTERNATIVE 1 $30,000
ALTERNATIVE 2 $28,000
ALTERNATIVE 3 $33,000
Explanation:
Calculation for the incremental income
ALTERNATIVE 1 Sell as it is
Incremental revenue $30,000
(5,000*$6)
Incremental costs $0
Incremental Income $30,000
ALTERNATIVE 2 Disassemble and sell to recycler
Incremental revenue $60,000
(5,000*$12)
Incremental costs $32,000
Incremental Income $28,000
ALTERNATIVE3 Rework and turn into good jackets
Incremental revenue $135,000
(3,000*$45)
Incremental costs $102,000
Incremental Income $33,000
Therefore based on the above calculation the company should choose ALTERNATIVE 3 of the amount of $33,000
Which of the following does not represent trade talks or a "round" of negotiations?
the Doha Round
the Paris Round
the Kennedy Round
the Tokyo Round
Answer:
The Paris Round
Explanation:
Just finished.
Answer:
The paris round
Explanation:
I DID THIS PROBLEM
Pro-tech Software acquired all of the outstanding stock of Reliable software for $14 million. The book value of Reliable's net assets( assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.
Answer:
$ 3,200,000
Explanation:
Calculation for the amount paid for goodwill.
Goodwill = $ 14,000,000 - ($8,300,000 + $ 2,500,000)
Goodwill = $ 14,000,000 -$10,800,000
Goodwill= $ 3,200,000
Therefore the amount paid for goodwill is $ 3,200,000
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:
Cash 7,500
Noncash assets 105,000
Liabilities 27,500
Anna capital 45,000
Brian capital 15,000
Cole capital 25,000
112,500 112,500
The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for 150,000, the liabilities were paid, and the remaining cash was distributed to the partners.
(A) Prepare a statement of partnership liquidation.
(B) Assume the facts as in (A) except that noncash assets were sold for 45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership, prepare a statement of partner liquidation
Answer:
The Partnership of Anna, Brian, and Cole
A) Statement of Partnership Liquidation:
Available cash for distribution = $157,500
Payment of liabilities = 27,500
Cash available for distribution $130,000
Distribution to partners:
Anna 67,500
Brian 30,000
Cole 32,500
Total distributed $130,000
B) Statement of Partnership Liquidation:
Available cash for distribution = $52,500
Payment of liabilities = 27,500
Cash available for distribution $25,000
Capital accounts balances = 85,000
Deficiency = $60,000
Distribution of deficiency to partners:
Anna 3/6 30,000
Brian 20,000
Cole 10,000
Total distributed $60,000
Explanation:
a) Data and Calculations:
Cash 7,500
Noncash assets 105,000
Total assets 112,500
Liabilities 27,500
Anna capital 45,000
Brian capital 15,000
Cole capital 25,000
112,500
Profit sharing ratio = 3:2:1
Sales proceeds from noncash assets = $150,000
Total cash available = $157,500 ($150,000 + 7,500)
Total capital repaid $85,000
Balance to be redistributed: $45,000
Partners Excess Capital Total
Anna 3/6 22,500 45,000 $67,500
Brian 2/6 15,000 15,000 30,000
Cole 1/6 7,500 25,000 32,500
A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold to customers. The customers all signed contracts agreeing to pay half the amount owed in February 2012 and the remaining half in March 2012. At the time of sale, the company was reasonably sure the customers would pay the amount owed. The furniture company pays its salespeople a commission on each sofa sold, with commissions for December 2011 sales paid in January 2012. The furniture company paid $3,000 for advertising that ran in the local newspaper in November 2011. In which month should advertising costs be expensed
Answer:
November 2011
Explanation:
Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?
a. These managers are paid higher salaries than the low-performing managers.
b. These managers have external locus of control.
c. The employees within their departments tend to compete to reach productivity goals, which boosts performance.
d. The employees within their departments score high on agreeableness.
e. The employees within their departments are highly skilled and very knowledgeable about their jobs.
Answer:
E) The employees within their departments are highly skilled and very knowledgeable about their jobs.
Explanation:
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. In this case , the statement that regards high-performing managers is that The employees within their departments are highly skilled and very knowledgeable about their jobs. skilled employees are ones that posses special skills as well as knowledge and training that are needed in their various departments or section of work. They tends to make things easier for their manager since they know more about their work.
Khaled is a preschool teacher working at a public school, but he is considering quitting his job to start a daycare facility of his own. Indicate which of the four types of interdependency is most relevant to each factor in Khaled's decision. Use the market for daycare facilities as Khaled's market of interest.
A. Khaled knows there are few daycare facilities in the area, but many families looking for daycare.
B. An increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wages of teachers.
C. If Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license. In addition, Khaled will not be able to take a long vacation in the summer if he runs a daycare center.
D. Khaled is up for a raise in the next 6 months at his teaching job.
It should be noted that since Khaled knows there are few daycare facilities in the area, but many families looking for daycare, this illustrates an example of dependencies between people or business in the same market.
Interdependencies.It should be noted that an increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wage of teachers is an example of dependencies between markets.
In a scenario where Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license but will not be able to take a long vacation in the summer if he runs a daycare center, this is dependencies between each of your individual choices.
Lastly, when Khaled is up for a raise in the next 6 months at his teaching job, this scenario is an example of dependencies through time.
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You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 8% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 8% on his investment. Calculate the annual payment and complete the following capital recovery schedule:
Answer:
Payment = Pmt(8%, 4, -30000) = $9,057.62
Interest Paid = Beginning amount * 8%
Principal paid = Payment - Interest Paid
End Balance = Beg Amount - Payment
Payment Beg Amount Payment Interest paid Principal paid End Balance
1 30,000 $9,057.62 2,400 6,657.64 23,342.38
2 23,342.38 $9,057.62 1,867.39 7,190.23 16,152.14
3 16,152.14 $9,057.62 1,292.12 7,765.45 8,386.69
4 8,366.39 $9,057.62 670.94 8,386.69 -
What type of business organization generates the most total sales
Answer:
probably the medical field
Boxer Company owned 24,000 shares of King Company that were purchased in 2019 for $350,000. On May 1, 2021, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 46,000 shares of Boxer stock outstanding. The market price of the King stock was $20 per share on the date of declaration and $39 per share on the date of distribution. By how much is retained earnings reduced by the property dividend
Answer:
$92,000
Explanation:
Calculation for By how much is retained earnings reduced by the property dividend
Using this formula
Reduction in Retained earnings=(Boxer stock outstanding/Declared property dividend )×King stock market price)
Let plug in the formula
Reduction in Retained earnings=(46,000/10 shares ) x $20
Reduction in Retained earnings= $92,000
Therefore By how much is retained earnings reduced by the property dividend is $92,000
Stosch Company's balance sheet reported assets of $117,000, liabilities of $30,000 and common stock of $27,000 as of December 31, Year 1. If Retained Earnings on the balance sheet as of December 31, Year 2, amount to $78,000 and Stosch paid a $29,000 dividend during Year 2, then the amount of net income for Year 2 was which of the following?
a. $47,000
b. $60,000 $
c. 29,000
d. $18,000
Answer:
See below
Explanation:
With regards to the following, recall that;
Retained earning at end = Beginning retained earning + Net income - dividend earned
$78,000 = Net income - $29,000
Net income = $78,000 + $29,000
Net income = $107,000
Therefore, the net income for year 2 would be $107,000
Falisari Corporation has computed the following unit costs for the year just ended:
Direct material used $ 25
Direct labor 19
Variable manufacturing overhead 35
Fixed manufacturing overhead 40
Variable selling and administrative cost 17
Fixed selling and administrative cost 32
Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?
Variable Costing Absorption Costing
A. $ 79 $ 119
B. $ 79 $ 151
C. $ 96 $ 119
D. $ 96 $ 151
E. None of the answers is correct.
Answer:
A. $ 79 $ 119
Explanation:
Calculation for the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing
Calculation for Variable costing using this formula
Variable costing = Direct materials + Direct labor + Variable Manufacturing Overhead
Let plug in the formula
Variable costing = = $25 + $19 + $35
Variable costing = $79
Calculation for Absorption costing using this formula
Absorption costing = Direct materials + Direct labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead
Let plug in the formula
Absorption costing= $25 + $19 + $35 + $40
Absorption costing= $119
Therefore the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing are :$ 79 $ 119
The monetary unit assumption: Multiple Choice Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Means that we can express transactions and events in monetary, or money, units. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Means that a business is accounted for separately from other business entities, including its owner. Prescribes that a company record the expenses it incurred to generate the revenue reported.
Answer:
Means that we can express transactions and events in monetary, or money, units.
Explanation:
monetary unit assumption: Means that we can express transactions and events in monetary, or money, units.
Going concern assumption - accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
Time period assumption - Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
Business entity assumption - Means that a business is accounted for separately from other business entities, including its owner
Matching principle - Prescribes that a company record the expenses it incurred to generate the revenue reported.
why do banks charge transaction fee?
Answer:
To make a profit and pay operating expenses,
Heinz Company began operations on January 1, 2017, and uses the first in, first out (FIFO) method in costing its raw material inventory. Management is contemplating a change to the last in, first out (LIFO) method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2017 2018 FIFO $640,000 $ 712,000 LIFO $560,000 $636,000 Net Income (computed under the FIFO method) $980,000 $1,030,000 Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of ________. Group of answer choices $1,070,000 $1,030,000 $954,000 $950,000
Answer:
C. $954,000
Explanation:
Final inventory FIFO LIFO Difference
2017 640,000 560,000 80,000
2018 712,000 636,000 76,000
Note: When method is changed to LIFO in 2018, it will effect ending inventory of 2018 only.
Net income as per FIFO $1,030,000
Decrease in income due to decrease -$76,000
in the ending inventory as per LIFO
Net income as per LIFO $954,000
So, a change to the LIFO method in 2018 would result in net income for 2018 of $954,000
Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable (due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Accounts Payable 37,000
Notes Payable (due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
During the year, the company had the following summarized activities:
a. Purchased equipment that cost $21,000; paid $5,000 cash and signed a two-year note for the balance.
b. Issued an additional 2,000 shares of common stock for $20,000 cash.
c. Borrowed $50,000 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $4,000 cash.
e. Built an addition to the factory buildings for $41,000; paid $12,000 in cash and signed a three-year note for the balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
Required:
Analyze transactions to determine their effects on the accounting equation.
Answer:
Performance Plastics Company (PPC)
Analysis of Transactions to determine their effects on the Accounting Equation:
Assets = Liabilities + Equity
a. Assets (Equipment +$21,000 Cash -$5,000) = Liabilities (Notes Payable +$16,000) + Equity
b. Assets (Cash +$20,000) = Liabilities + Equity (Common Stock +$20,000)
c. Assets (Cash +$50,000) = Liabilities (Bank Loan +$50,000) + Equity
d. Assets (Supplies +$4,000 Cash -$4,000) = Liabilities + Equity
e. Assets (Factory Building +41,000 Cash -$12,000) = Liabilities (Notes Payable +$29,000) + Equity
f. N/A
Explanation:
a) Data and Calculations:
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable
(due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Total assets $317,000
Accounts Payable 37,000
Notes Payable
(due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
Total liabilities +
equity $317,000
b)The accounting equation is an important accounting concept that describes the double-entry basis of accounting. It shows that at every given time and after every business transaction, the assets are always equal to the liabilities and the equity balance. This implies that the assets are funded from the contributions of creditors and owners.
Qtr5g66677
Math problem
Answer:
The dot over a number signifies that it is a repeater which would go on for ever, as when we endeavor to describe 1/3 decimally as 0.33333 . . . . (etc)
With a series of numbers we place the dot over the first and last, as with 0.97979797979 . . . (etc)
The remarkable feature being that a proper fraction divided by 9s e.g. 46/99 is exactly equal to the numerator with the repeater sign followed by the decimal.
