Hi, since this is an academic writing activity, I simply provided suggestions and explanations of key terms.
Explanation:
Basically writing an essay involves consulting good written sources of information that discuss the subject. The term accounting changes disclosure basically refers to the requirement for companies to disclose
any changes to its:
accounting principle, accounting estimates, or reporting entity.Citation (reference) is a term used in reasearch to describe a source or a list of sources (published and unpublished) where information or data was consulted and used in the research work.
For most firms, the cost of capital decreases to a low point as the firm ________ debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt ________.
Answer:
increases; decreases
Explanation:
In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in
evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most firms, the cost of capital decreases to a low point as the firm increases debt financing. At some point beyond this optimal level, the cost of capital increases as the amount of debt decreases
Which of the following best describes the "invisible hand" concept? Group of answer choices Ample regulation of business by the government will maximize the public's best interests. The market system works best when resources are free to move from one use to another. The problem of scarcity can best be overcome in a system of mixed capitalism. Self-interest in a market system will automatically promote the public interest as well
Answer:
Self-interest in a market system will automatically promote the public interest as well.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.
The "invisible hand" concept asserts that the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.
This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.
In conclusion, the invincible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.
The best description of the "invisible hand" concept is: "Self-interest in a market system will automatically promote the public interest as well."
What is the concept of "invisible hand"?The concept of the "invisible hand" is often associated with Adam Smith, a renowned economist and philosopher. According to Smith's theory, individuals pursuing their own self-interest in a competitive market will unintentionally benefit society as a whole.
Through the pursuit of profit and self-gain, individuals are motivated to produce goods and services that meet the needs and desires of others in the market. As a result, the market system, when left to its own devices, is believed to allocate resources efficiently and maximize overall societal welfare.
This concept implies that government intervention and regulation may not be necessary for the market to function optimally. Instead, the "invisible hand" suggests that individual self-interest, guided by market forces such as supply and demand, will naturally lead to desirable outcomes for society.
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Finance
Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company
ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm 8is planning dividend payout ratio of 60%. Calculate:
a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.
b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decisionm
[2] R6 386,16.
[3] R1 930,43.
[4] R3 897,29.
[5] none of the above
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Financial Math
Q198898
Deadline passed
Mr Mahlangu invests R20000 to play lobola. After 48 months he receives 65000. The interest on the investment is compounded quarterly. Determine the yearly interest rate at which money was invested. Give your answer as a percentage rounded to two decimal places.
Checking answer$1
Archive Tasks & Questions are stored in archive for 14 days
Biochemistry
Q198087
Deadline passed
11. Indicate which type of bonds are involved in the following
a. Formation of the primary structure of a protein
b. Stabilization of the alpha helix and beta pleated sheet structures of proteins
12.Identify the biomolecular composition of the following cells
a.Endoplasmic reticulum
b.Mitochondria
c.Cytoskeleton
d. Nucleus
13 Under aerobic catabolism of glucose ,in which compartment of the eukaryotic cell does the following reaction occurs?
a conversion of pyruvate to acetyl CoA
b.conversion of succinyl -CoA to succinate
c.conversion ofNADH to ATP.
d.conversion of phosphologlycerate to phosphoenolpyruvate.
14. Briefly outline how ATP is generated from glucose in the absence of oxygen. What is the importance of this pathway?
15. Briefly explain the process by which excess dietary carbohydrates and lipids are stored in the human body
Answer approved2$1
Finance
Q199880
Deadline: 28.05.21, 18:48
Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company
ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm is planning dividend payout ratio of 60%. Calculate:
a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.
b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether
dividend is to be declared or not.
Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged≡⇵∠⊅↓⇆°∞∴∴∵∵∵∴∴∵∵∴∴∵∴
∴∴≈↓∴↔∪∪∩⇄
Explanation:
If a government fixes the wage rate above the mar-
ket equilibrium rate it will lead to
(A) ex-
cess demand for labour (B) low supply of labour
(C) excess supply of labour (D) industrial strike ac-
tions
Answer:
Option B
Explanation:
Fixing the wage rate above the market equilibrium rate will disturb the demand and supply equilibrium of labor resource.
Wage rate above market will make labor as a resource costly for business and hence, there is possibility that the demand for labor will lower down. Thus, the supply of labor will get low.
Hence, option B is correct
On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%.
Required:
What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction?
Answer:
$85,558.34
Explanation:
The Transaction Price will be the Present Value of the amount to be received in 5 years.
We can simply calculate the Present Value (PV) using a financial calculator as follows :
FV= - $120,000
I = 7 %
N = 5
P/YR = 1
PMT = $0
PV = ?
Entering the data as above gives a Present (PV) as $85,558.34
therefore,
Millipede will recognize an amount of sales revenue of $85,558.34
Walt performs the steps below while saving Excel file “My Data.”
Click File → Click Save As → Choose Text (Tab delimited) → Click Save
What is Walt most likely trying to do with the Excel file?
A export data from the Excel file to a Notepad file
B export data from a Notepad file to the Excel file
C import data from the Excel file to an XML data file
D import data from an XML data file to the Excel file
Answer:
A. export data from the Excel file to a Notepad file
Explanation:
Normative and positive statements
The following table contains statements that provide some analysis of policies that address taxes. Categorize each of these statements as either positive or normative.
Statement Positive Normative
Taxes are too high.
In some circumstances, if taxes are lowered,
government revenues actually increase.
It is immoral for a government to redistribute money
from one person to another.
When the government increases taxes, rates of
tax evasion increase.
Answer:
Normative
Positive
Normative
Positive
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the statement , In some circumstances, if taxes are lowered,
government revenues actually increase, can be tested and it has it basis in economic theory
Normative economics is based value judgements, opinions and perspectives. For example, the statement - taxes are too high - is based on opinion. To some it is too high while to others it would be too low
Herman Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2009. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Herman uses the straight-line method of amortization.
What is the carrying value of the bonds on January 1, 2011?
a) $200,000
b) $190,800
c) $197,700
d) $189,650
14. On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 19,000 miles. Nick uses the double-declining balance method of depreciation. What amount of depreciation expense should Nick record for the first year
Answer: $12000
Explanation:
The amount of depreciation expense that Nick should record for the first year will be:
The depreciation will be:
= 1/no. of years
= 1/10
= 10%
Then, the rate of depreciation for double-declining will be:
= 10% × 2
= 20%
Then, the depreciation for the first year will be:
= $60000 × 20%
= $60000 × 0.2
= $12000
Therefore, the amount of depreciation expense that Nick should record for the first year is $12000.
Depreciation expense should Nick record for the first year is $12000
summer nights sells bottles of bug spray for 9.00 eaqch variable costs are 3.00 per bottle while fixed costs are 50000 per month for volumes up to 40,000 bottles of spray and 59000 per month for volumes above 40,000 bottles of spray. The flexible budget would reflect monthly operating income for 18,000 bottles of spray 33,000 bottles of spray of what dollar amounts
Answer: $58000; $148000
Explanation:
Sales = 18000 × $9.00 = $162000
Less: Variable cost = 18000 × $3 = $54000
Contribution margin = $108000
Less: Fixed cost = $50000
Operating income = $58000
Sales = 33000 × $9.00 = $297000
Less: Variable cost = 33000 × $3.00 = $99000
Contribution margin = $198000
Less: Fixed cost = $50000
Operating Income = $148000
SmartSC purchases from Supplier A are priced at $30 each and used at the rate of 600 units per month. Components purchased from supplier B are priced at $6 each and are used at the rate of 3000 units per year. The annual holding cost is 30 percent of the item’s value. If SmartSC purchases separately from the two suppliers, the fixed ordering cost for supplier A is 40 dollars each time. What is the economic order quantity for supplier A?
a) 125
b) 200
c) 253
d) 367
Answer:
SmartSC
The economic order quantity (EOQ) for Supplier A is:
= c) 253
Explanation:
a) Data and Calculations:
Supplier A Supplier B
Price per unit $30 $6
Annual unit demand 7,200 3,000
Annual holding cost $9 $1.80 ($6 * 30%)
Ordering cost $40
Economic order quantity for Supplier A = square root of (2 * D * S)/H
where D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit
= square root of (2 * 7,200 * $40)/$9
= square root of 64,000
= 253
The rate that a company must pay to obtain funds from creditors and stockholders is known as the Select one: a. hurdle rate. b. cost of capital. c. cutoff rate. d. All of these answers are correct.
Answer:
B)cost of capital.
Explanation:
In economics as well as accounting, the cost of capital can be regarded as
cost of funds of a company i.e debt and equity. From investor's point of view it can be regarded as rate of return required on a company existing securities portfolio, and this is utilized I evaluation of new projects of a company. It should be noted that the rate that a company must pay to obtain funds from creditors and stockholders is known as cost of capital..
Which of the following is a common role adjustment for a couple during the empty nest stage? *
You just won the lottery! As your prize you will receive $1,200 a month for 100 months starting today. If you can earn 8% on your money, what is this prize worth to you today
Answer: $87,380.23
Explanation: n = 100
I/Y = 8%/12
PMT = 1,200
AVP = 1,200 × (1-(1/(1+0.08/12)^100))/(0.08/12) = 1,200 × 72.816858 = 87,380.23
The prize worth to a person today is $87,380.23 approx, if the person wins a lottery.
What is the present value?A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation.
It contrasts the purchasing power of one dollar today with that of one dollar in the future, present value\ is computed by the following formula:
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\[/tex]
whereas:
A= Annuity
i= Interest rate
n= Number of periods
m= Periodicity
Computation of present value of the price:
Apply the given values in (1),
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\\text{Present Value} = $1,200\times {\dfrac{1-(1+\dfrac{0.08}{12})^(8.33 \times 12)}{\dfrac{0.08}{12}}[/tex]
Present Value = $87,380.23 approx.
Therefore, the prize worth to a person today is $87,380.23 approx.
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A major U.S. manufacturer of children's toys believes its main competitive advantage lies in its continuing the creation of innovative toys and games. The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs. The LAST function this firm should consider outsourcing is: Group of answer choices research and development. operations. supply-chain management. distribution.
Answer:
research and development
Explanation:
Since in the given situation, it is mentioned that the company faced the increased in the competition and also it considered an outsourcing in order to offshore the firm so that the cost can be minimized so here the last function the firm should considered outsourcing is the research and development as there is the outsourcing so there would be the research and development also it deals with innovation & introduction of new products & services
"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? Use the average from CAPM and Dividend Growth Model calculations."
Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity
Answer and Explanation:
The computation of the nominal, periodic, and effective interest rates for this investment opportunity is shown below:
The Nominal rate is 4.40%
The Periodic rate is = 4.40% ÷ 4 = 1.10%
And,
The Effective annual rate is
= (1+1.10%)^4 - 1
= 4.473%
hence, the same is relevant
On April 1, 2019, Waterway Industries purchased new machinery for $480000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2021, should be
Answer:
$288,000
Explanation:
Sum-of-the-years'-digits method provide for higher depreciation to be charged early in the life of the asset with lower depreciation in the later year.
Sum of digits = 5 + 4 + 3 +2 +1 = 15
2020
Depreciation = 5 / 15 x $480000
= $160,000
2021
Depreciation = 4 / 15 x $480000
= $128,000
therefore,
Accumulated depreciation = $160,000 + $128,000 = $288,000
thus
The accumulated depreciation on this machinery at March 31, 2021, should be $288,000.
Karen, a driver for Domino's Pizza, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck moves forward and crashes into a nearby electrical pole igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on Frank, a bystander, and injures him.
Required:
What must Frank show to recover damages from Domino's for the tort of negligence
Answer:
The answer is given in detail below.
Explanation:
In the negligence case, the damages would be recovered if Frank (injured party) as a plaintiff would be able to prove that the Company's driver (Karen) owed him a duty of care, that the duty was breached by the company's driver, that the plaintiff (Frank) was injured and that the injury was caused due to the breach of the duty of care.
In the following case, the crane falling on Frank was the reason for his injury. Therefore, to prove that the duty of care was breached, Frank would have to connect the breach to the injury caused to him. This would require doing the foreseeability test, which questions the fact that the person who caused the injury could have reasonably foreseen the results of the action caused by them due to his or her misconduct. In this problem, the company's driver did breach the duty of reasonable care.
Marshall Manufacturing issues a $1,000 bond with an interest rate of 10%, and a maturity date of 2031. This creates a liability for Marshall Manufacturing to pay the bondholder: a. an interest payment equal to the dividend payment distributed to the common stockholders. b. $1,100 annually until the year 2031. c. 10% of the selling price of the bond. d. $100 interest per year and $1,000 in the year 2031.
Answer:
The correct option is d. $100 interest per year and $1,000 in the year 2031.
Explanation:
Bond can be described as a financial instrument showing that certain amount of money is being owed to the holder. The bondholder has to be paid periodic interest at a specific rate and bond value has to paid back to the holder at the maturity date.
From the question, we have:
Bond value = $1,000
Interest rate = 10%
Maturity date = 2031
Therefore, we have:
Interest per year = Interest rate * Bond value = 10% * $1,000 = $100 per year
This implies that this creates a liability for Marshall Manufacturing to pay the bondholder $100 interest per year and $1,000 in the year 2031.
Therefore, the correct option is d. $100 interest per year and $1,000 in the year 2031.
____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics
Answer:
d) Social media monitoring
Explanation:
Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers
So, as per the given situation, it is a social media monitoring
A not-for-profit art museum that has elected to capitalize its art collection receives a donation of a rare piece of Native-American art. The donor paid $10,000 for the piece several years ago. Today the piece has an estimated value of $50,000. What entry should the museum make upon receipt of this donation
Answer and Explanation:
No journal entry is required as the art museum has been elected so it is not capitalized also the value is increased i.e. from $10,000 to $50,000 so we should not capitalized it
So for this there is no requirement of passing the journal enry
Hence, the same is to be considered
In 2009, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2011, when Winn acquired some of the issued shares for $32 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?
a. 2018 net income is decreased.
b. Additional paid-in capital is decreased.
c. 2018 net income is increased.
d. Retained earnings is increased.
Answer: b. Additional paid-in capital is decreased.
Explanation:
Assume Winn sold 100 shares.
The entry would have recorded Common stock at $100 because the par value is $1.
Additional paid-in capital would have been:
= (35 - 1) * 100
= $3,400
When the stock was now required, it was required at $32. Assuming 50 were reacquired:
Common stock would be = 100 - 50 = $50
Additional paid-in capital would be = 3,400 - ((32 - 1) * 50) = $1,850
Additional paid-in capital would therefore decrease when the shares are reacquired.
Gains from trade are the: Multiple Choice increase in welfare in both countries that results from specialization and trade. transfer of surplus by the receiving country that results from trade. deadweight loss by the losing country that results from trade. increased skills and human capital that results from specialization and trade.
Answer:
The answer is "the increase in welfare in both countries that result from specialization and trade".
Explanation:
Commercial gains imply benefits that are benefitted by specialization and division of work from various countries participating in international trade.
Its profits of trade are the positive benefits of trade instead of creating, meaning as advantage benefits via trade rather than producing advantage oneself.
The whole form of profit is usually called gain. Those gains are indeed the advantages of shifting production factors.
Static trade gains:
Production maximisationNational income increaseIncreased social securityReduced cost of scale savingsEnhanced variety of productsExcess sheddingDuring February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balance of Accounts Payable was $32,310, determine the account balance on February 1.
Answer:
$45,000
Explanation:
Given the above information, the account balance on February 1 is computed below;
Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account
= $59,900 + $186,500 - $201,400
= $45,000
Therefore, the account balance on February 1 is $45,000
Investing activities do not include the: Multiple Choice Purchase of plant assets. Loaning of money in exchange for notes receivable. Issuance of common stock. Sale of plant assets. Sale of short-term investments other than cash equivalents.
Answer:
Issuance of common stock.
Explanation:
(CRM) system uses customer contact information for targeted _____. a. management b. inventory control c. marketing d. budgeting
Answer:
c. marketing
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving customer service, sales support, marketing communications, and technical assistance, so as to bring satisfaction to the customers and increase sales for the company.
Typically, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.
Hence, CRM system uses customer contact information for targeted marketing such as sending weekly letters, promotional messages, survey, etc.
The MOST common method of distributing funds provided by a construction loan is a:Single lump sum of money at the closing of the loanSingle lump sum of money at the end of the construction project to reimburse the developer for the project's expenses and profitSeries of payments throughout the construction project to reimburse the developer for costs incurred since the previous paymentSeries of payments throughout the construction project to reimburse the developer for anticipated expenses in the upcoming period
Answer:
Series of payments throughout the construction project to reimburse the developer for costs incurred since the previous payment
Explanation:
The common method for allocating the funds that are given by the construction loan is that the payment series via the constuction project in order to reimbursed it for the developer as the cost is spend because of the last payment made
Therefore as per the given situtation, the third option is correct
Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through
50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the
answer to question 45, and so on:
Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
45. The average issue price per share of preferred stock must have been:
A) $20.00
B) $50.00
C) $70.00
D) $35.00
E) $45.00
46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?
A) Preferred $20,000, Common $0
B) Preferred $8,000, Common $12,000
C) Preferred $18,000, Common $2,000
D) Preferred $14,000, Common $6,000
E) Preferred $12,000, Common $8,000
47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.
The journal entry to record the exchange will cause Total Contributed Capital to:________
A) increase by $10,000
B) increase by $100,000
C) increase by $90,000
D) increase by $80,000
E) remain unchanged
48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
B) credit Common Stock Dividend Distributable, $15,000
C) credit Contributed Capital in excess of par, Common Stock, $21,000
D) credit Common Stock Dividend Distributable, $10,500
E) credit Contributed Capital in excess of par, Common Stock, $7,500
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:_________
A) debit Retained Earnings,$100,000
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
D) credit Common Stock Dividend Distributable, $100,000
E) Since this is considered a stock split, no journal entry is made
50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for
$15 per share. The journal entry required on March 1 will include:_______
A) credit Contributed Capital, Treasury Stock, $1,800
B) debit Retained Earnings for $1,800
C) debit Retained Earnings for $2,800
D) debit Contributed Capital, Treasury Stock, $2,800
E) debit Contributed Capital, Treasury Stock, $1,80040.
Answer:
Marcy Company
45. The average issue price per share of preferred stock must have been:
C) $70.00
46. The dividends paid to preferred and common stockholders in 2006 are:
B) Preferred $8,000, Common $12,000
47. The journal entry to record the exchange will cause Total Contributed Capital to:________
C) increase by $90,000
48. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
49. The entry to record this dividend will:_________
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
50. The journal entry required on March 1 will include:
Debit Cash $6,000
Credit Treasury stock $2,000
Credit Contributed Capital in excess of par value $4,000
Explanation:
a) Data and Calculations:
Preferred Stock:
6% cumulative, $20 par value, 10,000 shares authorized,
5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock:
$5 par value, 20,000 shares authorized,
10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
Average issue price per share of preferred stock = $70 ($100,000 + $250,000)/5,000
2005 2006
Total dividends declared $4,000 $20,000
Preferred dividend 6,000 6,000
Cumulative dividend -2,000 2,000
Common stock dividend $0 $12,000
Journal Entry:
Debit Building $100,000
Credit Common stock $10,000
APIC - common stock $90,000
January 1, 2005: Treasury stock $5,000 Contributed Capital in excess of par value $17,000 Cash $22,000
February 1, 2005: Cash $15,000 Treasury stock $3,000 Contributed Capital in excess of par value $12,000
March 1, 2005: Cash $6,000 Treasury stock $2,000 Contributed Capital in excess of par value $4,000
n 2019, the top 4 customers of Brady Corp provided the following revenue. Jenny: $400 Svetlana: $300 Kerry: $900 Maria: $1,200 Brady Corp reported the following for 2019: Total Third Party Revenue. $6,000 Total Intersegment Revenue $9,000 Total Expenses $4,000 Under the major customer test, which customers must Brady Corp provide disclosure about. a. Kerry and Maria b. No customer disclosure required c. Kerry, Maria, Jenny, Svetlana d. Maria only e. Kerry, Maria and Jenny
Answer:
Brady Corporation
Under the major customer test, the customers that Brady must provide disclosure about are:
b. No customer disclosure required.
Explanation:
a) Data and Calculations:
Revenue by top 4 customers:
Jenny: $400
Svetlana: $300
Kerry: $900
Maria: $1,200
Brady Corp Income Statement Details:
Total Third Party Revenue $6,000
Total Intersegment Revenue $9,000
Total company revenue $15,000 (10% of $15,000 = $1,500)
Total Expenses $4,000
Total net operating income $11,000
b) The major customer test requires that if 10 percent or more of the revenue of Brady Corp is derived from sales to any single customer, this fact and the amount of revenue from each such customer shall be disclosed. In this case, there is no customer that gives Brady Corp 10% of its total revenue of $15,000 (or $1,500). It is only Maria that comes close to $1,500. Therefore, this major customer disclosure will not be made by Brady Corp. in 2019.