Answer and Explanation:
The journal entry to record the issuance of the stock in exchange of the land and the building is as follows:
Land $235,000
Building $380,000
To Common stock, $8 par value (26,000 shares × $8) $208,000
To Paid-in capital in excess of par value, common stock $407,000
(To record the issuance of the stock in exchange of the land and the building)
Here the land and building is debited as it increased the assets and the common stock and its paid in capital is credited as it also increased the stockholder equity
Gemco Inc. uses the retail inventory method and has the following information available concerning its most recent accounting period:_________. Cost Retail Sales $1,200,000 Purchases $677,400 1,229,800 Beginning inventory 148,600 245,200 What is Gemco's estimated cost of ending inventory?
Answer:
$10,000
Explanation:
Estimated cost of ending inventory is calculated as;
= Retail beginning inventory + Purchase - Ending inventory - Sales
Retail beginning inventory = $148,600
Sales = $1,200,000
Purchases = $1,299,800
Ending inventory = $245,200
Cost of ending inventory = $148,600 + $1,299,800 - $245,200 - $1,200,000
Cost of ending inventory =
A car and a computer are examples of what?
Answer:
A car and a computer are both examples of secondary needs.
Explanation:
According to F.A. Hayek, what is the fundamental economic problem facing society?
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
A job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is _________
Answer:
functional job analysis.
Explanation:
Functional job analysis can be regarded as the analysis used in the knowing information as far as a job is concerned , this could based on employee's behavior which could be used to give the decription of the job.It should be noted that job analysis approach that utilizes an inventory of various types of work activities that can constitute any job is functional job analysis.
The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal profit margin. The original cost of the inventory item is below the net realizable value less the normal profit margin.Under the lower of cost or market method, the inventory item should be valued at:___________
A. Net realizable value.
B. Net realizable value less the normal profit margin.
C. Original cost.
D. Replacement cost.
Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
Marigold Lake Corporation’s accounting records show the following at year-end December 31, 2017:
Purchase Discounts
$5,960
Beginning Inventory
$33,550
Freight-In
8,710
Ending Inventory
28,600
Freight-Out
10,940
Purchase Returns and Allowances
3,810
Purchases
163,210
Assuming that Marigold Lake Corporation uses the periodic system, compute cost of goods purchased and cost of goods sold.
Cost of goods purchased ______________________
Cost of goods sold ___________________________
Answer:
Cost of Goods Purchased;
= Purchases - Purchase Returns and Allowances - Purchase Discounts + Freight-In
= 163,210 - 3,810 - 5,960 + 8,710
= $162,510
Cost of Goods Sold
= Beginning Inventory + Cost of Goods Purchased - Ending Inventory
= 33,550 + 162,510 - 28,600
= $167,100
hiii can someone pretty pls help me with this :D
Select an industry of your choice. Use online sources to find the most recent data available on the following aspects related to the industry that you select:
-economic indicators
-employment statistics
-top three competitors in the industry, by sales volume
Employment statistics.
You would need these if you are going to work in a business. After all, an business needs workers!
The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?
Answer:Safety stock= 26 units
Explanation:
Annual demand = 1,000
Working days = 250 days per year
Demand per day = 1000/ 250 = 4 units per day
Lead Time demand = Lead time x Average sales per day
= 6 days lead time x 4 units per day = 24 units
reorder point= Lead time demand + Safety stpock
Safety stock = Reorder point - lead time demand
= 50 - 24 units
Safety stock= 26 units
The risk of employee opportunism, on behalf of agents, is exacerbated by the concept of:________
a. competitive advantage.
b. stakeholder analysis.
c. information asymmetry.
d. corporate governance.
Answer:
c. information asymmetry.
Explanation:
Information asymmetry also called Information failure, is a state of affairs wherever there is an imperfect information, this happens wherever one party has completely different information than the other party. It is also when the party possess greater economic transaction about than the other party. An example is concerning an automotive manufacturer and buyer, the owner is probably going to own full information regarding its service history and its chance to break-down than the buyer.
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 7 percent. If the required rate of return is 15.50 percent, what is the current value of the stock?
Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
r is the required rate of return g is the constant growth rate in dividends n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
Firms colluding: a. Earn short run normal profits. B. Increase competition by firms through advances in technology. C. Earn short run economic losses. D. Earn short run economic profits
Answer:
D. Earn short run economic profits
Explanation:
A cartel can be defined as a formal agreement reached (collusion) in an oligopolistic industry between two or more business firms that are saddled with the responsibility of producing goods and services in order to make price and output decisions such as price regulation, total level of output or supply, allocation of customers, market shares, territory allocation, division of profits, collusive bidding etc.
This ultimately implies that, when a group of independent firms in an oligopolistic industry collude by reaching a formal agreement to regulate supply, as well as manipulate or regulate prices, they do so to increase their profits and market dominance.
Hence, firms colluding earn short run economic profits.
Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8 percent of sales. For the period, the firm paid $4,700 in interest. What is the profit margin if the tax rate is 34%?a. â2.43%.b. 1.56%.c. 3.33%.d. â5.29%.e. â6.11%.
Answer:
Net Profit margin = 0.015637 or 1.5637% rounded off to 1.56%
Option b is the correct answer
Explanation:
The profit margin which is also known as the Net Profit margin the amount of net profit after tax expressed as a percentage of the sales revenue. To calculate the net profit margin, we must first calculate the net profit after tax. Net Profit after tax can be calculated as follows,
We know that sales revenue is $137000 and Earnings before Interest and taxes (EBIT) are 5.8% of sales revenue, then the EBIT is:
EBIT = 137000 * 0.058 = $7946
If we deduct the interest expense from EBIT, we will get Net Profit before tax.
Net profit before tax = 7946 - 4700 = $3246
The tax expense is = 3246 * 0.34 = $1103.64
So, Net Profit after tax = 3246 - 1103.64 = $2142.36
Net profit margin = 2142.36 / 137000
Net Profit margin = 0.015637 or 1.5637% rounded off to 1.56%
Should a 16 year be able to contract? Why?
General Electric manufactures turbines and provides the following annual data. How many turbines were transferred to finished goods during the year?
Beginning Work in Process (30% complete, $1,300) 220 units
Ending inventory of work in Process (70% complete) 420 units
Total units started during the year 3,400 units
a. 3,392 uns.
b. 3,400 units.
c. 3.200 uniks.
d. 3,848 units.
Which is associated with process cost accounting but is not normally associated with job cost accounting?
A. Determining cost of goods sold.
B. Identifiable units of production.
C. Use of Job Cost Sheet.
D. Equivalent units of production.
Answer:
a. 3,200 units
D. Equivalent units of production.
Explanation:
The computation of the number of units transferred to finished goods is as follows:
= Opening work in progress+ Total units started during the year - Closing work in progress
= 220 units + 3,400 units - 420 units
= 3,200 units
The equivalent unit of production deals with the process costing but not with the job costing
In the case of process costing, the work in process should be considered
While on the other hand, the job costing, the production does not held on a continuous basis
Bonita Industries purchased equipment for $46400. Sales tax on the purchase was $2784. Other costs incurred were freight charges of $696, repairs of $406 for damage during installation, and installation costs of $774. What is the cost of the equipment?a. $12,000.00.
b. $13,530.00.
c. $12,600.00.
d. $13,110.00.
What is the term used to describe the dollar amount of a physical damage claim paid by the policyholder?A. Coinsurance clause.
B. Floater.
C. Deductible.
Answer:
C. Deductible.
Explanation:
Variable universal life insurance is insurance that provides permanent insurance coverage as whole life does; however the policyholder, not the insurance company, takes on the investment risk.
A Variable universal life insurance is a type of permanent life insurance policy which avails the holder the opportunity of investing the cash component of the plan (policy) for a much greater returns and as such the investment risk associated with the policy lies completely on the policy holder and not the insurance company.
Additionally, a group life insurance policy can be defined as a single contract plan that covers a group of people by providing life insurance coverage. An employer may opt for a group life insurance policy which would cover the lives of his or her employees.
Deductible is the term used to describe the dollar amount of a physical damage claim paid by the policyholder.
If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?
Answer: 89%
Explanation:
Calculate the dividend pay-out ratio.
Company has a capital structure of 30% which means that 30% of the capital budget of $88 million has to come from retained earnings;
= 30% * 88
= $26.4 million will come from retained earnings
The amount left for dividends will therefore be;
= 240 - 26.4
= $213.6 million
Dividend Payout ratio;
= Dividend / Net income
= 213.6/240
= 89%
A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The annual depreciation is $3,850 and the tax rate is 35 percent. What is the annual operating cash flow?
a) $31,450
b) $27,600
c) $44,248
d) $59,548
e) $19,288
Low return investments are sometimes a better option than high return investments because :
Answer:
D.) They are less likely to cause the investor to lose money.
Explanation:
Its on ApX
Answer:
Low return investments are sometimes a better option than high return investments because :
Answer:
D.) They are less likely to cause the investor to lose money.
Explanation:
The above assertion depends on the risk appetite of the investor concerned. Another investor with high risk profile may prefer a high risk, high return investment to a low return investment. Risk cannot be removed from the return of an investment because there is a trade-off. The higher the risk involved in an investment, the higher the expected returns. The converse is also true. What decides the chosen option is the investor's risk appetite and the availability and type of investments.
Answer: They are less likely to cause the investor to lose money.
Explanation:
Earnings available to common shareholders are divided by the average number of shares actually outstanding during the accounting period. Identify which of the reporting methods this statement describes:_______.
Answer: Earnings per share
Explanation:
There are no options but this should be the correct answer.
Earnings per share are calculated by dividing the earnings available to shareholders which is usually the Net income by the average number of share outstanding during the accounting period.
Earnings per share therefore shows how profitable a company is and how profitable it is to invest in a company with higher EPS ratios being more desired than lower.
You want to buy your dream car which will cost you $5900. If you could invest your entire savings of $3500 at an annual interest of12%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car?
Answer:
t = 4.607742347 years rounded off to 4.61 years
Explanation:
To calculate the number of years it will take an investment of $3500 to grow to $5900 at an annual interest rate of 12%, we will use the formula for the future value of cash flows. The formula can be written as follows,
Future value = Present value * (1+i)^t
Where,
i is the interest ratet is the time in yearsPlugging in the values for future value, present value and i, we can calculate the t to be,
5900 = 3500 * (1+0.12)^t
5900 / 3500 = (1.12)^t
1.685714286 = 1.12^t
Taking log on both sides.
Ln(1.685714286) / Ln(1.12) = t
t = 4.607742347 years rounded off to 4.61 years
Journalize each correcting entry discovered during August of the current year: Use page 15 of the journal. Transactions: Aug. 1 Discovered that a transaction for this expense was journalized and posted in error as a debit to Repairs Expense instead of Utilities Expense, $530.00, MG6. 5 Discovered that a cash investment by Vivian Lynum, owner, was joumalized and posted in error as a credit to Sales Instead of Vivian Lynum, Capital, $1.200.00 M67. GENERAL JOURNAL DATE ACCOUNT TITLE DOC. NO POST DEBIT CREDIT 1 Aug. 1 Utilities Expense M66 530.00 Repairs Expense 530.00 5 Sales M67 1.200.00 Vivian Lynum, Capital 1.200,00It was also discovered that two posting errors were made in the Supplies account. The July 6 entry amount should have been $160.00. The July 30 entry included a credit to the Supplies account for $140.00 that should have been a debit. Determine what amount should be entered in each lettered cell. (If a cell should have a zero balance, it should be left blank.)
Answer:
Journalizing correcting entries:
Aug. 1
Debit Utilities Expense $530
Credit Repairs Expense $530
To correct wrong posting.
Aug. 5:
Debit Sales Revenue $1,200
Credit Vivian Lynum, Capital $1,200
To correct wrong posting.
July 30:
Debit Supplies Account $280
Credit Suspense Account $280
To correct the wrong posting.
Explanation:
The July 6 entry is difficult to decide the correcting entry since the wrong amount was not given. There is nothing that can be done with the $160 supplied in the question.
The functions of management can be performed best when a firm's ________ and culture are integrated.
A) finances
B) business model
C) profits
D) external environment
E) strategy
Answer: strategy
Explanation:
The functions of management can be performed best when a firm's strategy and culture are integrated.
A strategy has to do with the actions and the decisions that a particular organization or business will have to take in order for the organization to be able to accomplish its reach its goals, maximize profit and also be competitive.
Debbie has $223,188.4 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?
Answer:
6.20 years
Explanation:
Use Followingformula to calculate the time period to exhaust the fund
PV of Annuity = Annuity Payment X ( 1 - ( 1 + interest rate )^-n ) / interest rate
Where
PV of Annuity = $223,188.4
Annuity payment = $40,000
Interest rate = 3%
$223,188.4 = $40,000 X ( 1 - ( 1 + 3% )^-n ) / 3%
$223,188.4 / $40,000 = ( 1 - ( 1 + 3% )^-n ) / 3%
5.57971 = ( 1 - ( 1 + 3% )^-n ) / 3%
5.57971 X 3% = ( 1 - ( 1 + 3% )^-n )
0.1673913 = ( 1 - ( 1 + 3% )^-n )
1 / 1.03^n = 1 - 0.1673913
1 / 1.03^n = 0.8326087
1.03^n = 1 / 0.8326087
1.03^n = 1.2010
n log 1.03 = log 1.2010
n = log 1.2010 / log 1.03
n = 6.20 years
Please help I have no clue how to do accounting
Answer:
the picture not working
Explanation:
Slotkin Products purchased a machine for $65000 on July 1, 2020. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5000. Depreciation for 2020 to the closest dollar is:___________. a. $32500
b. $8125
c. $14219
d. $16250
Answer:Depreciation for 2020 to the closest dollar is:_b. $8125
Explanation:
Straight-line depreciation rate is given as = 1 / Useful life
1 / 8 = 0.1250 or 12.50%
Also the Double-declining-balance depreciation rate = 2 x Straight-line depreciation rate = 2 x 12.50%
Double-declining-balance depreciation rate = 25%
Given That the
Cost of Machine = $65,000
Depreciation for 2020 = Cost of machine x depreciation rate x period ( July - December
$65,000 x 25 % x 6/12
= $8,125
Unlike other forms of persuasion, manipulation involves:_________
a. emotion a call to action.
b. rationales.
c. deductive reasoning.
d. deception.
Which of the following is an example of a positive-sum game?A. Working with someone to build a house. B. A war between two countries. C. Racing against someone to get in line at the grocery store before them. D. Buying an apple at a store.
Answer:
working with someone to build a house
Explanation:
Out of all of the options listed the one that is an example of a positive-sum game is working with someone to build a house. This is because you are collaborating with another individual equally and all decisions and actions affect both of you equally. Therefore, if you win/profit you would both be winning/profiting at the same time, the same goes for losses. In such a game you one would not profit without the others profiting as well.
The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent based on semiannual compounding. How many years is it until this bond matures? a. 10.49 years b. 13.77 years c. 12.64 years d. 11.08 years e. 15.42 years
Answer:
13.77 years
Explanation:
The maturity period is the period taken for the Bonds' Market Price equals its Face Value.
Calculation of the maturity period :
PV = - $394.47
PMT = $0
YTM = 6.87 %
P/YR = 2
FV = $1,000
N = ?
Using a financial calculator to input the values as above, the number of periods interest is accrued on the bond (N) is 27.54 thus the number of years will be 13.77 (27.54 ÷ 12) .
Calculate the value of x (the implied forward rate on one-year maturity Treasuries to be delivered in one year). A. 6.53 percent. B. 10.83 percent. C. 5.75 percent. D. 6.925 percent. E. 1.017 percent.
Answer:
The value of X is A. 6.53 percent.
The value of Y is B. 10.83 percent
Explanation:
Note: See the full question as attached as picture below
Spot 1 Year Spot 2 Year Forward 1 Year (1-year maturity)
Treasury 3.0% 4..75% x
BBB Corporate Debt 7.5% 9.15% y
The formula to calculate the forward rate is: F1.1 = [(1+S2)² / (1+S1)] - 1
For treasury
F1.1 = [(1+4.75%)² / (1+3.0%)] - 1
F1.1 = 1.09725625 / 1.03 - 1
F1.1 = 6.53%
For BBB Corporate Debt
F1.1 = [(1+9.15%)² / (1+7.5%)] - 1
F1.1 = 1.19137225 / 1.075 - 1
F1.1 = 10.83%