Ross Island Co. issues 22,000 shares of no-par value preferred stock for cash at $66.00 per share. The journal entry to record the transaction will consist of a debit to Cash for $1,452,000 and a credit (or credits) to: _______
Answer:
it credited to preferred stock
Explanation:
The journal entry for issuance of the preferred stock is as follows:
Cash Dr $1,452,000
To Preferred stock (22,000 shares × $66) $1,452,000
(Being the issuance of the preferred stock is recorded)
Here the cash is debited as it increased the assets and credited the preferred stock as it increased the stockholder equity
Therefore it credited to preferred stock
A customer in the 28% tax bracket has $6,000 of capital gains and $9,000 of capital losses. How much unused loss is carried forward to the next tax year?
Answer:
Nill
Explanation:
Given that;
Capital gain tax = $6,000
Capital losses = $9,000
Net loss = Capital loss - Capital gain
Net loss = $9,000 - $6,000
Net loss = $3,000
Recall that maximum net loss deductible from taxes in a year is $3,000
Therefore,
Unsecured loss carried into next year
= Net loss - Deductible
= $3,000 - $3,000
= Nil
Alex and Tory are married and filing jointly. Their gross income is
$150,000. How much do they owe in federal taxes?
Answer:
$27,009.00
Explanation:
Please mark brainliest
Amount owe in federal taxes is $9,889
Tax based problem:Given that;
Gross income = $150,000
Married and filing jointly
Find:
Amount owe in federal taxes
Computation:
Taxable Income = Gross Income - Standard Deduction
Taxable Income = $150,000 - $24,800
Taxable Income = $125,200
Tax rate slab between [$80,250 to $171,050] is 22%
So,
Amount owe in federal taxes = 22%[125,200 - 80,250]
Amount owe in federal taxes = $9,889
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Ivanhoe Company issued $1520000 of 6%, 5-year bonds at 95, which pay interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds?a. $636,000.
b. $632,400.
c. $628,800.
d. $639,600.
Answer:
the journal entry to record bond issuance:
Dr Cash 1,444,000
Dr Discount on bonds payable 76,000
Cr Bonds payable 1,520,000
amortization of discount on bonds payable = $76,000 / 5 = $15,000
coupon payment = $91,200
total interest expense per year = $106,200
total interest expense for the 5 year period = $106,200 x 5 years = $531,000
On January 1, Reynolds Inc. issued four-year bonds with a face value of $100,000. The bonds have a stated interest rate of 5 percent. When the bonds were issued, the market interest rate was 4 percent. The bonds pay interest once per year on December 31. Over the entire life of the bond, how much Interest Expense will Reynolds recognize related to this bond?
Answer:
$16,350
Explanation:
Issuance price = Present value of interest*PVIAF (5%, 4) + Present value of maturity amount PVIF (4%, 4)
Issuance price = $100000*5%*3.630+100000*0.855
Issuance price = $103,650
Premium on bond issue = $103,650 - $100,000
Premium on bond issue = $3,650
Total interest payment = 100000*5%*4
Total interest payment = $20,000
Interest Expense entire life of the bond = Total interest payment-Premium on bond issue
Interest Expense entire life of the bond = $20,000 - $3.650
Interest Expense entire life of the bond = $16,350
Jonathon works for a U.S. company that doesn't produce goods domestically, but instead buys them from other countries and resells them in the United States. Jonathon's company illustrates the concept of
A. countertrade.
B. subcontracting
C. exporting
D. importing.
E. outsourcing
Answer:
A:countertrade.
brainlist answer
This illustrates the concept of importing. Therefore, Option (D) is the correct choice for this question.
What is importing?An import is an item or service that is purchased outside of its nation of origin. International trade is made up of imports and exports. A country has a negative trade balance, or a trade deficit if the value of its imports exceeds the value of its exports.
It entails bringing goods or services manufactured abroad for sale into a nation. Companies based in the United States who purchase goods abroad and bring them here for sale or for use in an American-made product are said to be importing.
Many small firms import goods that are not economically feasible to manufacture in the United States, such as shoes, apparel, crafts, and larger products like furniture, which are then sold at a high profit to local customers.
Hence, Option (D) is the correct one.
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On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting entries have been recorded, ABC's adjusting entry at December 31 would include a:________.
a. debit to Interest Expense of $3,000.
b. debit to Interest Expense of $2,250.
c. debit to Interest Expense of $1,000.
d. debit to Interest Expense of $750.
Answer:
c. debit to Interest Expense of $1,000.
Explanation:
The adjusting entry is as follows:
Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000
To Interest payable $1,000
(Being the interest expense is recorded)
Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities
Therefore the correct option is c.
: IAS 2 Inventories allows producers of gold and silver to measure inventories of those commodities at selling price, even before they have sold it, which means a profit is recognised at production. In nearly all other industries, however, profit is recognised only when the inventories are sold to outside customers. What concept(s) in the Conceptual Framework might the IASB have looked to with regard to accounting for gold and silver production
Answer:
Not only does IAS 2 norm allow this, also US GAAP allows this. I believe that the reasoning behind that is the following:
Holding precious metals in inventory is actually considered an investment. Precious metals are commodities, and since they can be easily traded around the world, just having them increases a company's wealth. The revenue recognition principle (top of the inverted pyramid) applies here even to any individual that finds gold nuggets by accident in the country side (no need to be a mining business). The fact that you possess gold increases your personal assets and net wealth. The same applies to other precious metals. This happens because gold or other precious metals can be easily converted into cash (extremely liquid), e.g. this same individual can go to a local jewelry or or a pawn shop and sell the gold nuggets he found.
If finding a gold nugget increases an individual's net worth, then imagine what holding a ton of gold does to a company. What makes gold and silver so special is that they are accepted everywhere. Remember that until the early 1970s, the worlds' currencies were based on the price of gold (gold standard). Most central banks in the wold hold gold reserves and they also follow this same logic. Price of gold increases, the wealth of the nation increases.
A company paid $326,000 for property that included land, land improvements, and a building. The land was appraised at $175,000, the land improvements were appraised at $70,000, and the building was appraised at $105,000. What is the allocation of property costs to the three assets purchased and what is the journal entry to record this transaction?a) Land, $150,000. Land Improvements, S60,000; Building, $90,000 b) Land, $163,000; Land Improvements, $65,200; Building, $97,800 c) Land, $150,000; Land Improvements, $61,600; Building, $92,400 d) Land, $159,000; Land Improvements, $65,200; Building, $95,400 e) Land, $175,000; Land Improvements, $70,000; Building, $105,000
Answer: b) Land, $163,000; Land Improvements, $65,200; Building, $97,800
Explanation:
First add up their appraised values;
= 175,000 + 70,000 + 105,000
= $350,000
Allocate costs based on proportion of total appraised value;
Land
= 175,000/350,000 * 326,000
= $163,000
Land Improvements
= 70,000/350,000 * 326,000
= $65,200
Building
= 105,000/350,000 * 326,000
= $97,800
Journal Entry
Details Debit Credit
Land $163,000
Land Improvements $65,200
Building $97,800
Cash $326,000
Suppose that the inflation rate is 2% and the real interest rate is 4%. What is the nominal interest rate?
Answer:
nominal interest rate= 0.07= 7%
Explanation:
Giving the following information:
Inflation rate= 3%
Real interest rate= 4%
To calculate the nominal interest rate, we need to use the following formula:
Real interest rate= nominal interest rate - inflation rate
0.04 = nominal interest rate - 0.03
0.07= nominal interest rate
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Answer:
that is really good
Explanation:
You are planning a trip to the United Kingdom and expect that you will spend 2,200 pounds. How much will your spending be in U.S. dollars if the exchange rate is .7269 pounds per dollar?A. $2,579.82.B. $3,892.16.C. $5,597.29.D. $5,890.01.E. $6,044.04.
Answer: $3,026.55
Explanation:
If US$1 is to £0.7269 then that means that the pound is stronger than the dollar because a dollar buys less than a pound in which case £2,200 will be more than $2,200.
It will be;
= 2,200/0.7269
= $3,026.55
Options seem to be for a variant of this question.
Parker Corp., which operates on a calendar year, expects to sell 3,000 units in October, and expects sales to increase 10% each month thereafter. Sales price is expected to stay constant at $10 per unit. What are budgeted revenues for the fourth quarter?
Answer:
total revenue = is 99300
Explanation:
given data
expects to sell in October = 3,000 units
expects sales to increase = 10%
Sales price stay constant = $10 per unit
solution
we get revenue hereby the sum of revenue of oct + nov + dec
revenue = price × quantity .........................1
total revenue = is 99300
Consider the restaurant Jack in the Box. As a student, you visit Jack in the Box every week. After graduating college, you (and many other students) started a job paying more than $60,000 per year. Assuming that the number of graduating students is large enough to influence the market, what will happen to the equilibrium price and quantity of Jack in the Box burgers
Answer:
well there is many factors that can effect this. the burgers will go up because that's what you are used to eating and find comfort in. and the other college students will also eat there.
what is the purpose of work teams ?
Answer:
The purpose of creating teams is to provide a framework that will increase the ability of employees to participate in planning, problem-solving, and decision-making to better serve customers. Increased participation promotes: A better understanding of decisions.
l a fixed asset for $72,376 when its book value is $43,070. If your company's marginal tax rate is 25 percent, what will be the after-tax cash flow of this sale?
Answer:
Cash flow= $64,847
Explanation:
Giving the following information:
Sellin price= $72,376
Tax rate= 25%
Book value= $43,070
First, we need to calculate the gain from the sale and the tax:
Gain= 72,376 - 43,070= $29,036
Tax= gain*tax rate
Tax= 29,036*0.25= $7,259
Now, we can calculate the after-tax cash flow:
Gain= 29,036
Tax= (7,259)
Book value= 43,070
Cash flow= $64,847
Excey Corp. has 7 percent coupon bonds making annual payments with a YTM of 6.2 percent. The current yield on these bonds is 6.55 percent.
How many years do these bonds have left until they mature? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
12.64 years
Explanation:
Coupon rate is 7%
Current yield is 6.55%
Then the current price = 7 / 0.0655 = $106.87 per $100 par value.
Now calculating the no of years these bonds have left until they mature:
106.87 = 7*PVIFA(6.2%,n) + $100*PVIF(6.2%,n)
N = 12.64 years
On January 1, 2017, Banek Inc. issued $350,000 of 8%, 9-year bonds for $309,086, which implies a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year. a.Show computations to confirm the bond issue price. b.Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual inter- est payment and discount amortization on June 30, 2017, and (3) semiannual interest payment and discount amortization on December 31, 2017.
The Bond issuance, semiannual interest payment, and semiannual interest payment and amortization are:
Amortization refers to an accounting methodology that is employed to lower the book value of a loan or an intangible asset over a set period of time, in a periodic fashion.
It is important because it helps the decision makes to comprehend and predict or forecast or anticipate their future costs over a space of time.
The calculations are as follows:
1) . PV of principal = 350,000 x (0.04 x 18)
PV of principal = 350,000 x 0.41552
PV of principal = $145,432
PV of interest = 350,000 x 0.08/2 x (0.05, 18)
PV of interest = 350,000 x 0.04 x 11.68959
PV of interest = $163,654
Issue price = 145,432 + 163,654
Issue price = $309,086
2) Recall that Interest payable = Principal amt. x rate x time period
Interest payable = 350,000 x 0.08 x 6/12 (semiannual)
Interest payable = $14,000
Interest expense = bond carrying amt. x rate x time
Interest expense = 309,086 x 0.08 x 6/12
Interest expense = $15,454
3. Amortization = Interest expense-Interest payable
Amortization = 15,454-14,000
Amortization = $1,454;
Interest expense = (309,086+1,454) x 0.10 x 6/12
Interest expense = $15,527.
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The risk-free rate is 3.8 percent and the market expected return is 11.5 percent. What is the expected return of a stock that has a beta of 1.23?
Answer:Expected return=13.27%
Explanation:
Using the CAPM, capital asset pricing model formula
we have that
Expected return = Risk free rate + Beta ( Market risk premium)
Expected return = Risk free rate + Beta ( Market expected return - Risk free rate
Er = rf +β( rm - rf )
Expected return=3.8% + 1.23 ( 11.5% -3.8%)
Expected return=0.038 + 1.23 (0.115-0.038)
Expected return = 0.038 + 1.23 x 0.077
Expected return = 0.038 +0.09471
Expected return = 0.13271 x 100 = 13.27%
What is the value today of receiving $4,500 at the end of each year for the next four years, assuming an interest rate of 12% compounded annually?
Answer: The correct answer should be: a. $118.
References: Solution: A = P(A/P , i, n)
A = 4,500(A/P, 1%, 48) = (4,500)(0.0263) = $118.35
(im sorry if im wrong)
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the
Answer:
Part a
Cash $645 (debit)
Cost of Sales $375 (debt)
Sales Revenue $645 (credit)
Merchandise $375 (credit)
Part b
Cash $432 (debit)
Cost of Sales $195 (debt)
Sales Revenue $432 (credit)
Merchandise $195 (credit)
Part c
Trade Receivables $670 (debit)
Cost of Sales $438 (debt)
Sales Revenue $670 (credit)
Merchandise $438 (credit)
Explanation:
The Perpetual Inventory system keeps record of the value of stock and records the cost of goods sold after every transaction. This is contrary to the the periodic inventory system which measures stock and cost of sales after a period.
For the Journal entries, note that we are recording from the perspective of Evans Company.
Individuals can choose to purchase Microsoft stand-alone software packages, such as the Home and Student versions of Word, Excel, and PowerPoint, for $119.99 each. However, they may choose to purchase the Office Home and Student suite, which has all of these applications in the same package, for a price of $149.99. Microsoft is using a __________ pricing strategy.
A) penetration
B) prestige
C) bundle
D) odd-even
E) standard mark-up
Answer: C) bundle
Explanation:
Bundle pricing is a practice by companies where they sell individual products bundled together at a lower price than a customer would have had to pay if they had bought the products individually which is what Microsoft is doing in this scenario.
This strategy is used by companies to increase profits because it inspires customers to spend more than they would have as they would think that they are making savings.
Joseph Turner and Sons has 125,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurchase 25,000 of its shares. What type of offer is the firm making?
Answer:
D. Tender offer
Explanation:
A. Rights offer
B. Secondary issue
C. Targeted repurchase
D. Tender offer
E. Private issue
We are informed about Joseph Turner and Sons who has 125,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurchase 25,000 of its shares. In this case the type of offer is the firm making is tender offer. Tender offer can be regarded as a kind of public takeover bid to all shareholders, so that they can sell out their shares at a specific price during a particular time.
It is usually made public, and this time the investors do give out higher price per share compare to the stock price of the company, which give room to shareholders in selling their own share.
Question 5 of 10
A bank analyzes potential borrowers' debt-to-income ratio in order to find out:
O A. whether they have ever failed to make timely payments on other
loans.
OB. how much money they owe in other debts compared to how much
they earn.
O c. the value of their house and car, which can be used as collateral
for a loan.
O D. the total amount of debt they have accumulated and paid off over
a lifetime.
SUBMIT
The bank analyzes potential borrowers' debt-to-income ratio in order to find out option b. how much money they owe.
What is the debt to income ratio?It is the rato that shows in the percentage form with respect to the gross income to the paying debts.
So at the time when the bank analyzes potential borrower so here the money that owe should be compared with the earning amount.
Hence, the option b is correct.
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Firms that make investment decisions based on the payback rule may be biased toward rejecting projects:__________
a. with short lives.
b. with long lives.
c. with late cash inflows.
d. that have negative NPVs.
Answer:
c. with late cash inflows.
Explanation:
The Payback method focus on the time it takes for the Cash Inflows of the Project to equal the Initial investment made into the project. This means that projects which takes a short period (early cash flows) are preferred over those that take a long period (late cash flows) for the cash flows to equal the initial cost.
On January 1, Sheffield Corp. issues $3600000, 5-year, 12% bonds at 94 with interest payable on January 1. What is the carrying value of the bonds at the end of the third interest period?\
Answer:
$3,513,600
Explanation:
The computation fo the carrying value of the bond at the end of third interest period is shown below:
But before that the value of the bond is
= $3,600,000 × 94%
= $3,384,000
Now the difference in amount is
= $3,600,000 - $3,384,000
= $216,000
The interest amount per year would be
= $216,000 ÷ 5 years
= $43,200
For three years it would be
= $43,200 × 3 years
= $129,600
And, finally the carrying value of the bond is
= $3,384,000 + $129,600
= $3,513,600
A consumer has a choice of spending $20,000 on a Honda or $14,000 on a Kia. She was observed buying a Kia during the weekend. Does this mean the consumer prefers the Kia to the Honda?
Answer: Not necessarily
Explanation:
Consumer purchase decisions are dependent on multiple factors such as price, income and preference. It could be that the customer purchased the Kia because the price was less than that of the Honda and so she wanted to save and costs and bought the less expensive choice.
It could also mean that the Kia was all she could afford based on her income so she bought that. It could however also mean that the Kia is her preference as compared to the Honda so she chose that instead.
It is therefore not a foregone conclusion that she bought the Kia simply because she preferred it. More information would be needed to reach that conclusion definitively.
gold mine is projected to produce $20,000 during its first year of operation, $19,000 the second year, $18,000 the third year, and so on. If the mine is expected to produce for a total of 10 years, and the effective annual interest rate is 6%, what is its present worth?
Answer:
malamang ang sagot ay 14% have
Explanation:
The Federal Reserve will tend to tighten monetary policy with the goal is to stabilize the economy when a. it thinks the unemployment rate is too high. b. it thinks inflation is too high today, or will become too high in the future. c. the growth rate of real GDP is quite sluggish. d. interest rates are rising too rapidly.
Answer: b. it thinks inflation is too high today, or will become too high in the future.
Explanation:
Tightening monetary policy means to reduce the amount of money in the country. This is done by the Fed if they think that inflation is too high or will be too high and so want to keep it in check.
Reducing the amount of money in the nation reduces inflation in theory because it reduces the amount of money that people have available to buy goods and services and as people react by buying less goods and services, prices will fall to match this reduced demand.
Government is known to have some amount of hold on monetary policy. Federal Reserve will tend to tighten monetary policy when it thinks inflation is too high today, or will become too high in the future.
Monetary policy is simply known to be the control of the quantity of money that is present in an economy and the links through which new money is supplied.
The central bank tightens policy through the increase of short-term interest rates through policy that alters the discount rate and federal funds rate.
Conclusively, if inflation is increases in a faster rate, or when the economy is growing faster than expected, the FED will then increases the interest rates.
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How long will it take you to triple your money if you have your money invested on a trust that promises a guaranteed 7% annual rate of interest, with monthly compounding?
Answer:
the number of years for triple the money is 15.74 years
Explanation:
The computation of the number of years for triple the money is shown below:
Here we used the NPER which is
Given that
RATE = 7% ÷ 12 = 0.58333%
Assuming
Present value be $1,000
And, future value be $1,000 × 3 = $3,000
PMT = $0
The formula is shown below:
= NPER(RATE;PMT;-PV;FV;TYPE)
The present value comes in positive
After applying the above formula
The number of years is
= 188.8833850497 ÷ 12
= 15.74 years
hence, the number of years for triple the money is 15.74 years