Answer:
$7,500
Explanation:
Calculation to determine How much is Clark's 2019 bad debt expense
First step is to calculate the Allowance for Doubtful Accounts balance
Allowance for Doubtful Accounts balance=
$181,000-$170,000
Allowance for Doubtful Accounts balance=$11,000
Second step is to calculate the amount to be written off
Written off=$16,000-$12,500
Written off=-$3,500
Now let calculate the bad debt expense
Bad debt expense=$11,000-$3,500
Bad debt expense=$7,500
Therefore How much is Clark's 2019 bad debt expense is $7,500
On January 1, 2017, Alexis Company purchased a delivery truck for $60,000. They estimated the useful life of the truck to be 6 years, and the salvage value to be $12,000. On July 1, 2022, they sold the truck for a loss of $1,200. Assuming the company uses straight line depreciation, what was the selling price of the truck
Answer:
$14,800
Explanation:
The computation of the selling price of the truck is shown below:
The depreciation expense is
= ($60,000 - $12,000) ÷ 6 years
= $8,000
Now the depreciation for 5.5 years is
= $8,000 × 5.5 years
= $44,000
Now book value is
= $60,000 - $44,000
= $16,000
ANd, finally the selling price of the truck is
= $16,000 - $1,200
= $14,800
Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $18 billion in the second round of the process. Instructions: Round your answers to 1 decimal place. a. What is the MPC in this economy
Answer: 0.9
Explanation:
The marginal propensity to consume (MPC) is calculated by using the formula:
= Change in consumption / Change in income
where,
Change in consumption = $18 billion
Change in income = $20 billion
MPC = Change in consumption / Change in income
= $18 billion / $20 billion
= 0.9
Therefore, MPC is 0.9.
Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents Which could be the heading of Carrie's balance sheet?
Carrie's Balance Sheet (January 1, 2021)
Carrie's Balance Sheet (January)
Carrie's Balance Sheet (Friday, January 3) Carrie's Balance Sheet (January 2011 - January 2021)
Answer: Carrie's Balance Sheet (January 1, 2021)
Explanation:
The heading of the balance sheet should include as much as possible, the month and year of the balance sheet. It can also include the exact date.
This is done so that the Balance sheet can have a particular reference date such that stakeholders who use the balance sheet can know relate the financial performance of the company as of a certain day which would enable for better analysis.
The heading of Carrie's balance sheet is: Carrie's Balance Sheet (January 2021).
What is balance sheet?Balance sheet help to summarize a company or an organization financial position or financial statement.
Since she is preparing the balance sheet for herself, what will be the heading of the balance sheet is Carrie's Balance Sheet (January 2021).
Therefore the heading of Carrie's balance sheet is: Carrie's Balance Sheet (January 2021).
Learn more about Balance sheet here:https://brainly.com/question/1113933
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Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 220 $ 920 5/5 Purchase 320 $ 1,020 8/10 Purchase 420 $ 1,120 10/15 Purchase 260 $ 1,170 During the year, Lauer sold 1,050 laptop computers. What was ending inventory using the FIFO cost flow assumption
Answer:
$198,900
Explanation:
Ending inventory units = Available units for sale - Units sold
Ending inventory units = 220 + 320 + 420 + 260
Ending inventory units = 1,220.
Units sold = 1,050.
Ending inventory units = 1,220 - 1,050
Ending inventory units = 170
As per the FIFO cost flow assumption, sales comprise of units from beginning inventory and earlier purchases. Hence, ending inventory comprises units from latest purchases.
So, ending inventory of 170 units would be valued at the price from 10/15 purchases.
10/15 purchase price per unit = $1,170
Ending inventory value = 170 units x $1,170
Ending inventory value = $198,900
Help soon! Its Sunday and i have too much over due homework ;-;
Answer:
the first one at the left goes with the third one on the left.
the second on the left goes with the second one .
the third one goes with the first one
and the last one goes with the last one
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Metlock, Inc. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $34,500 and sales taxes $1,725. 2. Carla Vista Co. does not segregate sales and sales taxes. Its register total for April 15 is $24,804, which includes a 6% sales tax. Prepare the entries to record the sales transactions and related taxes for Metlock, Inc. and Carla Vista Co..
Answer:
1. Metlock, Inc.
Dr Cash $36,225
Cr Sales revenue $34,500
Cr Sales Tax Payable $1,725
2. Carla Vista Co
Dr Cash $24,804
Cr Sales revenue $24,082
Cr Sales Tax Payable $722
Explanation:
Preparation of the entries to record the sales transactions and related taxes for Metlock, Inc. and Carla Vista Co..
1. Metlock, Inc.
Dr Cash $36,225
($34,500+$1,725)
Cr Sales revenue $34,500
Cr Sales Tax Payable $1,725
2. Carla Vista Co
Dr Cash $24,804
Cr Sales revenue $24,082
($24,804/1.06)
Cr Sales Tax Payable $722
($24,804-$24,082)
Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,400 every six months over the subsequent eight years, and finally pays $2,700 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6% compounded semi-annually. What are the current price of bond M and bond N?
Answer:
um
Explanation:
Periods 10% 11% 12% 13% 14% 1 0.909 0.901 0.893 0.885 0.877 2 1.736 1.713 1.690 1.668 1.647 3 2.487 2.444 2.402 2.361 2.322 4 3.170 3.102 3.037 2.974 2.914 5 3.791 3.696 3.605 3.517 3.433 6 4.355 4.231 4.111 3.998 3.889 7 4.868 4.712 4.564 4.423 4.288 8 5.335 5.146 4.968 4.799 4.639 Knowledge Check 01 You are expecting a series of annual cash flows of $25,000 for six years. What is the present value of this annuity if the discount rate is 12%
Answer:
Present value of annuity = $102,785.2
Explanation:
An annuity is a series of cashflow expected to be received or paid yearly for a certain number of years
The present value of annuity = A×( 1 - (1+r)^(-n) )/r
Where A is the annual cash flow= 25,000
n- number of years = 6
r- rate per period = 12%
25,000 × 1- (1.12)^(-6)/0.12
25,000× 4.111=$102,785.2
Present value of annuity = $102,785.2
Paid $54,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $270 cash per truck for the cost of their annual tune-ups. Paid $216 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $303,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.
Answer:
see explanation
Explanation:
revenue expenditure is cost that improves a capital asset
capital expenditure is cost incurred to maintain daily operations
You are the project manager for the KLN Project. You had 19 stakeholders on this project. You have added three team
members to the project. How many more communication channels do you have now than before?
out of
O a. 171
O b. 60
O c. 1
O d. 231
Analyse the benefits of employee training to a business.
Explanation:
Boosts Employee Performance. ...
Improve Morale and Job Satisfaction. ...
Ensures Opportunities for Learning. ...
Opportunity to Identify Weaknesses. ...
Provide a Framework to Develop Strengths. ...
Encourages Innovation and Risk Acceptance. ...
Boosts Adherence to Quality Standards
Your credit card statement had your interest rate at 16.5%. When you open your statement the rate went up to 18.2%. Can the credit card company do that without notifying you?
Answer:
Definitely not
Explanation:
I mean, it's YOUR account; they can't just do that, to my inderstanding.
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $9 per pound $45
Direct labor: 3 hours at $14 per hour 42
Variable overhead: 3 hours at $8 per hour 24
Total standard cost per unit $111
The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs:
a. Purchased 180,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production.
b. Direct laborers worked 69,000 hours at a rate of $15 per hour.
c. Total variable manufacturing overhead for the month was $565,200.
Required:
a. What raw materials cost would be included in the company's planning budget for March?
b. What raw materials cost would be included in the company's flexible budget for March?
c. What is the materials price variance for March?
Answer:
Preble Companya. The raw materials cost for the planning budget for March is:
= $1,260,000
b. The raw materials cost included in the company's flexible budget for March
= $1,530,000
c. The materials price variance for March is:
= $90,000
Explanation:
a) Data and Calculations:
Standard Cost Card Per Unit:
Direct materials: 5 pounds at $9 per pound $45
Direct labor: 3 hours at $14 per hour 42
Variable overhead: 3 hours at $8 per hour 24
Total standard cost per unit $111
Planning budget production and sales for March = 28,000 units
Actual production and sales for March = 34,000 units
Purchase of 180,000 pounds of raw materials / 5 = 36,000 units
Purchase cost = $8.50 per pound
Price variance = $0.50 per pound favorable ($9.00 - $8.50)
Total purchase cost = $1,530,000
Direct labor worked = 69,000
Standard labor hours = 34,000 * 3 = 102,000 hours
Direct labor volume variance = 33,000 hours (102,000 - 69,000)
Standard variable manufacturing overhead = $816,000 (34,000 * $24)
a. The raw materials cost for the planning budget for March is:
= $1,260,000 ($9 * 5 * 28,000)
b. The raw materials cost included in the company's flexible budget for March
= $1,530,000 ($9 * 5 * 34,000)
c. The materials price variance for March is:
= $90,000 ($9 - $8.50)180,000
Using information from the news article you read and your knowledge of economics, compose a paragraph in response to the article. Your comment on the article should state your opinion on government intervention. Use economic analysis to guide your opinions. In your writing, be sure to use proper grammar as well as a topic sentence and introductory and concluding statements.
Answer:
I commend the governments of Peachtree City and Fayette County for their recent intervention, which will be beneficial to our economy. Earlier, the city reduced the water level in the lake so that people who live on the lake could maintain the shoreline. When the council started to refill the lake, city staff noted problems with the dam and spillway and brought it to the attention of Fayette County. There were financial constraints to completing this project, but the Peachtree City government decided to spend additional money to finish the project. That was the right course of action. The residents’ properties (and property values) have been restored, and the lake will once again draw visitors to the town to enjoy the lake and spend money in our town’s businesses.
Explanation:
PLATO word for word, just in case <3
you observe thundering herd common stoc k selling for $40.00 per share. the next dividen is ecoected to be $2.00, and is expected to grow at a 4% annual rate forever. If your requir4ed rate of return is 12%, you should purchase the stock? A. Yes, because the presemt value of the expected future cash flows is greater than $40 g
Answer:
no, because the present value of the expected future cash flows is less than $40
Explanation:
The computation of the share price present value is given below:
= Next dividend ÷ (Required rate of return - growth rate)
= $2 ÷ (12% - 4%)
= $25
As we can see that the share price present value would be $25 but the stock selling price is $40 so the present value would be lower than $40 that means the stock should not be purchased
C Corporation is investigating automating a process by purchasing a machine for $808,200 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,800. The annual depreciation on the new machine would be $89,800. The simple rate of return on the investment is closest to (Ignore income taxes.): Multiple Choice 11.28% 5.28% 6.52% 16.88%
Answer:
6.52%
Explanation:
According to the scenario, computation of the given data are as follows,
New machine cost = $808,200
Scrap sold = $22,800
Cost of investment = $808,200 - $22,800 = $785,400
Saving from new machine = $141,000
Annual depreciation of machine = $89,800
Net operating income = $141,000 - $89,800 = $51,200
Now we can calculate the rate of return by using following formula,
Simple rate of return = Net operating income ÷ Cost of Investment
= $51,200 ÷ $785,400
= 6.52%
The answer should be C. Bc clip art can have text illustrations etc!
DJH Enterprises has 3 departments. Operating results for 2019 are as follows:
Department 1 Department 2 Department 3
Sales $670,000 $322,000 $856,000
Variable costs 445,000 287,000 602,000
Contribution margin $225,000 $35,000 $254,000
Direct fixed expenses $120,000 $27,000 $163,000
Common fixed expenses 75,000 30,000 94,000
Total fixed expenses $195,000 $57,000 $257,000
Operating income (loss) $30,000 ($22,000) ($3,000)
DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 2 have on DJ H's total operating income?
Answer:
DJH Enterprises
The effect of eliminating Department 2 will increase the total operating income to $27,000 from $5,000.
Explanation:
a) Data and Calculations:
Operating Results for 2019 for the three departments:
Department 1 Department 2 Department 3 Total
('000)
Sales $670,000 $322,000 $856,000 $1,848
Variable costs 445,000 287,000 602,000 1,334
Contribution margin $225,000 $35,000 $254,000 $514
Direct fixed expenses $120,000 $27,000 $163,000 $310
Common fixed expenses 75,000 30,000 94,000 199
Total fixed expenses $195,000 $57,000 $257,000 509
Operating income (loss) $30,000 ($22,000) ($3,000) $5
Loss-making departments eliminated:
Department 1 Department 3 Total
Sales $670,000 $856,000 $1,526,000
Variable costs 445,000 602,000 1,047,000
Contribution margin $225,000 $254,000 $479,000
Direct fixed expenses $120,000 $163,000 $283,000
Common fixed expenses 75,000 94,000 169,000
Total fixed expenses $195,000 $257,000 $452,000
Operating income (loss $30,000 ($3,000) 27,000
Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)
Answer:
the cash that should be freed up is $267
Explanation:
The computation of the cash that would be freed up is shown below:
As we know that
The inventory turnover is
= Cost of goods sold ÷ average inventory
12 = $14,800 ÷ average inventory
So, the average inventory is 1,233
Now the cash that should be freed up is
= 1,500 - 1,233
= $267
hence, the cash that should be freed up is $267
1. Which of categories are Internal controls are grouped?
A. Effective operations, financial reporting, and compliance.
B. Efficient operations, financial analysis, and compliance.
C. Efficient operations, financial analysis, and management reporting.
D. Production and operations, financial reporting, and management reporting
Answer: A. Effective operations, financial reporting, and compliance.
Explanation:
Internal controls are meant to promote the effectiveness of operations in a company so as to bring about maximum profitability.
Internal controls also fall under financial reporting because they are sometimes done to ensure that the information presented by a company is accurate and complete.
There are compliance controls as well to ensure that the company is complying with the various regulations that apply to them be it federal, state, local or private.
During the year, Walt who is self-employed travels from Seattle to Tokyo, Japan, on business. His time was spent as follows: two days travel (one day each way), two days business, and two days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion): Airfare $3,000 Lodging 2,000 Meals 1,000 Presuming no reimbursement, Walt's deductible expenses are: a.$3,500. b.$6,000. c.$4,500. d.$5,500.
Answer:
d.$5,500.
Explanation:
The computation of the deductible expense is shown below:
= Airfare + lodging + 50% of meals
= $3,000 + $2,000 + 50% of $1,000
= $3,000 + $2,000 + $500
= $5,500
hence, the deductible expense is $5,500
Here we take 100% of airfare & lodging but we took 50% for the meals
hence, the option d is correct
Prepare general journal entries to record the following transactions.Omit explanations.
Jan.
3 Paid office rent, $1,600.
4 Bought a truck costing $50,000, making a down of $7,000
6 Paid wages, $3,000.
7 Received $1 6,000 cash from customers for services performed.
10 Paid $4,100 owed on last month's bills.
12 Billed credit customers, $5,300
17 Received $1 ,800 from credit customers.
19 Taylor Gordon, the owner, withdrew $1,700.
23 Paid $700 on amount owed for truck
29 Received bill for utilities expense, $255.
Answer:
Jan 3
Debit : Rent $1,600
Credit : Cash $1,600
Explanation:
if there is no immediate payment of cash raise a liability - accounts payable
Commercial paper. Criss-Cross Manufacturers will issue commercial paper for a short-term cash inflow. Criss-Cross must raise $, and the paper will have a maturity of days. If this paper has a maturity value of $ and is selling at an annual interest rate of , what are the proceeds from each paper; that is, what is the discount rate on the commercial paper? What is the discount rate on the commercial paper? nothing% (Round to two decimal places.)
Answer:
Proceeds from Commercial paper $48,035.92
Discount rate on commercial paper 3.93%
Explanation:
Calculation to determine the proceeds from eachpaper
First step is to calculate 182 days rate
182 days rate = 0.082 * 182/365
182 days rate= 0.040887671
Now let calculate the Proceeds from Commercial paper using this formula
Proceeds from Commercial paper = Par value * 1/(1+i for time of issue)
Let plug in the formula
Proceeds from Commercial paper =$50,000 *1/(1+0.040887671)
Proceeds from Commercial paper=$48,035.92
Therefore The proceeds from commercial paper is $48,035.92
Calculation to determine the discount rate on the commercialpaper
First step is to calculate the Discount
Discount = $50,000-$48035.92
Discount=$1,964.02
Now let calculate the Discount rate on commercial paper
Discount rate on commercial paper =$1964.02./50000
Discount rate on commercial paper = 0.039282*100
Discount rate on commercial paper= 3.93%
Therefore the Discount rate on commercial paper is 3.93%
A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
t or f
Answer:
True
Explanation:
A warantee is a written assurance that some product or service will be provided or will meet certain specifications.
Hope this helps! <3
in damselflies a basal quadrangular cell in the wing venation is called
A hospital needs 2,900 units of a medicine throughout the year. The purchasing cost varies with the size of the order. If the number of units of the medicine that the hospital orders is below 100, the supplier charges $30 per unit; if it is between 100 and 499, the price is $27 each; and if they order 500 units and above, it is $26 per unit. The holding cost per unit per year is $30, as the medicine must be kept in a special device to prevent spoilage. The ordering cost is $10.
Required:
a. How many units of medicine should the hospital order to minimize their total annual cost?
b. What is the minimum annual total cost?
Answer:
a. 100 units are ordered
b. Minimum Total annual cost = 80090
Explanation:
Given that,
D=2900.
C = $30 IF q<100
= $27 IF 100<Q<499.
= $26 IF Q>500.
C(H) = $30
C(O) = $10.
EOQ = √(2*D*C(O)/C(H))
= √( 2*2900*10/30)
= √( 1933.3333)
= 43.97
TAC if 44 units are ordered = (2*D*C(O)*C(H))+D*C
= 2*2900*10*30+ 2900*30
= 1319.09+ 87000 = 88319.09
TAC if 100 units are ordered = 2900/100*10+ 100/2*30+ 2900*27
= 29*10+ 50*30+2900*27
= 290+1500+78300
= 1790 + 78300 = 80090
if 500 units are ordered = 2900/500*10+ 500/2*30+2900*26
= 58+ 7500+75400= 82958.
∴ we get
100 units are ordered
Minimum Total annual cost = 80090.
The D. Dorner Farms Corporation is considering purchasing one of two fertilizer-herbicides for the upcoming year. The more expensive of the two is better and will produce a higher yield. Assume these projects are mutually exclusive and that the required rate of return is 10 percent. Given the following free cash flows:
Product A Product B
Initial outlay -$5000 -$5000
Inflow year 1 700 6,000
Required:
a. Calculate the NPV of each project.
b. Calculate the PI of each project.
c. Calculate the IRR of each project.
d. If there is no capital-rationing constraint, which project should be selected? If there is a capital-rationing constraint, how should the decision be made?
Question Correction:
The question stated that there is a more expensive fertilizer-herbicide. Therefore, their initial outlays cannot be equal as stated. Instead, the correct cash flows, including initial outlays are:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 700 6,000
Answer:
The D. Dorner Farms Corporation
Product A Product B
a. NPV = $136 $454
b. PI = 1.272 1.091
c. IRR = 27.2% 9.08%
d. If there is no capital-rationing constraint, Project B should be chosen despite its poor PI and IRR performances, but for returning a larger NPV.
e. If there is a capital-rationing constraint, Project A should be chosen because of its more impressive PI and IRR performances.
Explanation:
a) Data and Calculations:
Required rate of return for the projects = 10%
Present factor of 10% for 1 year = 0.909
Free cash flows:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 700 6,000
Present values:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 636 5,454
NPV = $136 $454
b) PI (Profitability Index) is a useful tool in capital budgeting which measures the profit potential of a project in order to ease decisions. It is computed by dividing the present value of cash inflows by the initial investment cost. Another formula is: 1 + (NPV/Initial outlay).
Therefore, the PI for each project is calculated as follows:
PI = 1+ (NPV/Initial outlay)
Product A Product B
PI = 1 + ($136/$500) 1 + ($454/$5,000)
= 1.272 1.091
IRR (Internal Rate of Return) = NPV/Initial Outlay
Product A Product B
IRR = $136/$500 * 100 $454/$5,000 * 100
= 27.2% 9.08%
Recording Entries for an Installment Note Payable On January 1, 2020, a borrower signed a long-term note, face amount, $70,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $27,162 each December 31 (which is also the end of the accounting period for the borrower). Required a. Compute the cash received by the borrower and prepare a debt amortization schedule. Note: Round your answer to the nearest whole dollar.
Answer:
A. $56,000
B. Jan 1, 2020 $70,000
Dec 31, 2020
$27,162 $5,600 -$21,562 $48,438
Dec 31, 2021
$27,162 $3,875 -$23,287 $25,150
Dec 31, 2022
$27,162 $2,012 -$25,150 $0
Total $81,486 $11,487, $70,000
B. Jan 1, 2020
Dr Cash $56,000
Dr Discount on Note Payable $14,000
Cr Note Payable $70,000
Dec 31, 2020
Dr Interest Expense $5,600
Dr Note Payable $21,562
Dr Cash $27,162
Dec 31, 2021
Dr Interest Expense Dr $3,875
Dr Note Payable Dr $23,287
Cr To Cash $27,162
Dec 31, 2022
Dr Interest Expense $2,012
Dr Note Payable $25,150
Cr To Cash $27,162
Explanation:
A. Computation for the cash received by the borrower
Cash received by the borrower=70000*8%/10%
Cash received by the borrower=$56,000
Therefore The Cash received by the borrower is $56,000
B.Preparation of a debt amortization schedule.
DEBT AMORTIZATION SCHEDULE
Date Cash Interest Expense Reduction in N.P Carrying Value
Jan 1, 2020 $70,000
Dec 31, 2020
$27,162 $5,600 -$21,562 $48,438
($70,000*8%=$5,600)
($27,162-$5,600=21,562)
($70,000-$21,562=$48,438)
Dec 31, 2021
$27,162 $3,875 -$23,287 $25,150
(8%*$48,438=$3,875)
($27,162-$3,875=$23,287)
($48,438-$23,287=$25,150)
Dec 31, 2022
$27,162 $2,012 -$25,150 $0
(8%*$25,151=$2,012)
($27,162-$2,012=$25,150)
($25,151-$25,150)
Total
Jan 1, 2020 $70,000
Dec 31, 2020
$27,162 $5,600 -$21,562 $48,438
Dec 31, 2021
$27,162 $3,875 -$23,287 $25,150
Dec 31, 2022
$27,162 $2,012 -$25,150 $0
Total $81,486 $11,487, $70,000
b. Preparation of the required entries for the borrower for the issuance of the note on January 1, 2020, and the interest payments in 2020, 2021, and 2022
Jan 1, 2020
Dr Cash $56,000
Dr Discount on Note Payable $14,000
($70,000-$56,000)
Cr Note Payable $70,000
Dec 31, 2020
Dr Interest Expense $5,600
Dr Note Payable $21,562
Dr Cash $27,162
($21,562+$5,600)
Dec 31, 2021
Dr Interest Expense Dr $3,875
Dr Note Payable Dr $23,287
Cr To Cash $27,162
($3,875+$23,287)
Dec 31, 2022
Dr Interest Expense $2,012
Dr Note Payable $25,150
Cr To Cash $27,162
($2,012+$25,150)
Suppose a Geographic Information Systems (GIS) research firm is approached by the state legislature and asked to provide data about vehicle movement within the state for all cars that can be tracked with direct GPS or through the owner's smartphone. Based on the movement of the cars (and phones) over a certain time, the police can decide when a car was speeding. They intend on using this data to send speeding tickets to those who moved too far, too fast. Also, if an underage driver spends too long parked by an adult only establishment, police will be notified to investigate. If you are the research firm, would you supply the data?
Answer:
No. I would not supply the data.
Explanation:
Was the GIS research firm commissioned by the state legislature? The state lacks the authority to demand the GIS information. Moreover, the data subjects did not give their consent for the information to be used for this purpose. It will be a violation of data privacy rules to provide the data when the consents of the data subjects were not obtained.
Residual Income The operating income and the amount of invested assets in each division of Otte Industries are as follows: Operating Income Invested Assets Retail Division $ 8,000,000 $40,000,000 Commercial Division 12,750,000 75,000,000 Internet Division 270,000 1,800,000 Assume that management has established a 10% minimum acceptable rate of return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Operating income $8,000,000 $12,750,000 $270,000 Minimum acceptable operating income as a percent of invested assets fill in the blank 1 fill in the blank 2 fill in the blank 3 Residual income $fill in the blank 4 $fill in the blank 5 $fill in the blank 6
Answer: See explanation
Explanation:
The residual income for each division will be calculated as follows:
Retail division:
Operating income = $8,000,000
Less: Minimum acceptable operating income as a percentage of invested assets = 10% × $40,000,000 = $4,000,000
Residual income = $4,000,000
Commercial division:
Operating income = $12,750,000
Less: Minimum acceptable operating income as a percentage of invested assets = 10% × $75,000,000 = $7,500,000
Residual income = $5,250,000
Internet division:
Operating income = $270,000
Less: Minimum acceptable operating income as a percentage of invested assets = 10% × $1,800,000 = $180,000
Residual income = $90,000
From the information above, we can also see that the commercial division has the highest residual value.