Answer:
C. She believes that research and testing are an integral part of providing consumers with safe products.
Explanation: cognitive dissonance refers to the mental conflict that occurs when a person's behaviors and beliefs do not align. It may also happen when a person holds two beliefs that contradict one another. Cognitive dissonance causes feelings of unease and tension, and people attempt to relieve this discomfort in different ways.
When cognitive dissonance is unaddressed in the workplace, it causes the following effect: Withdrawal and Disengagement: When employees are stressed out, they become inactive. A stressed employee would stop bringing up their ideas and if they remain in that job, the function in employment preservation mode.
28. David is in the business of sharpening skates for college hockey teams. He signed a contract on August 1, 2019 for $28,000 with Bentley University ("Bentley") to sharpen the team’s skates for the 2019-2020 hockey season, which is played from the months of September 2019 through March 2020. The contract states that Bentley will pay David a deposit of $8,000 on August 31, 2019, $8,000 on October 31, 2019, $4,000 on December 31, 2019 and the remaining $8,000 on March 31, 2020. David performed the services as contracted throughout the hockey season. What was the amount of revenue David should recognize for year-end December 31, 2019 on the Bentley contract? A. $0 B. $16,000 C. $20,000 D. $28,000
Answer:
The correct answer is:
$20,000 (C.)
Explanation:
To calculate the revenue recognized for the year-end on the contract, the earnings and the period will be written out clearly as follows:
Total worth of contract = $28,000
August 31, 2019 revenue = $8,000
October 31, 2019 revenue = $8,000
December 31, 2019 revenue = $4,000
March 31, 2020 revenue = $8,000
Therefore, revenue recognized for year-end December 31, 2019 on the Bentley contract is the total revenue received between August and December 2019, and it is calculated below as:
8,000 + 8,000 + 4,000 = $20,000
On September 1, 2021, Daylight Donuts signed a $170,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2021. In recording the payment of the note plus accrued interest at maturity on March 1, 2022, Daylight Donuts would: (Do not round your intermediate calculations.) Multiple Choice Debit Interest Expense, $7,650. Debit Interest Expense, $5,100. Debit Interest Expense, $2,550.
Answer:
The correct answer is Debit Interest Expense, $5,100.
Explanation:
Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest expense on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest expense is $170,000 x 9%/12 x 6 months = $7,650.
Interest expense as at December 31, 2021 is therefore $7,650 / 6 x 4 = $5,100.
Sarah, Sue, and AS Inc. formed a partnership on May 1, 20X9, called SSAS, LP. Now that the partnership is formed, they must determine its appropriate year-end. Sarah has a 30 percent profits and capital interest while Sue has a 35 percent profits and capital interest. Both Sarah and Sue have calendar year-ends. AS Inc. holds the remaining profits and capital interest in the LP, and it has a September 30 year-end. What tax year-end must SSAS, LP, use for 20X9, and which test or rule requires this year-end
Answer:
The correct answer to the following question will be "12/31, majority interest taxable year".
Explanation:
Throughout the incident in question, all parties mostly in calendar year carry upwards of fifty percent and the result is 12/31, most interest taxing year.When all the participants in the calendar year have a mutual value of more than 50 percent so the same will be selected.They will vote for the 12/31 fiscal year minimum interest. And the solution to the above seems to be the right one.
Expand Your Critical Thinking 15-02 a1-a4 In the course of routine checking of all journal entries prior to preparing year-end reports, Betty Eller discovered several strange entries. She recalled that the president’s son Joe had come in to help out during an especially busy time and that he had recorded some journal entries. She was relieved that there were only a few of his entries, and even more relieved that he had included rather lengthy explanations. The entries Joe made were: (1) Work in Process Inventory 20,000 Cash 20,000 (This is for materials put into process. I don’t find the record that we paid for these, so I’m crediting Cash because I know we’ll have to pay for them sooner or later.) (2) Manufacturing Overhead 8,500 Cash 8,500 (This is for bonuses paid to salespeople. I know they’re part of overhead, and I can’t find an account called "Non-Factory Overhead" or "Other Overhead" so I’m putting it in Manufacturing Overhead. I have the check stubs, so I know we paid these.) (3) Wages Expense 108,000 Cash 108,000 (This is for the factory workers’ wages. I have a note that employer payroll taxes are $16,200. I still think that’s part of wages expense and that we’ll have to pay it all in cash sooner or later, so I credited Cash for the wages and the taxes.)
Answer:
Sr. No Particulars Debit Credit
Given
1 Work in Process Inventory 20,000 Dr
Cash 20,000 Cr
2 Manufacturing Overhead 8,500 Dr
Cash 8,500 Cr
3 Wages Expense 108,000 Dr
Cash 108,000 Cr
Required
1. Work in Process Inventory 20,000 Dr
Materials 20,000 Cr
2. Selling (Salaries) Expenses 8,500 Dr
Cash 8,500 Cr
3. Wages Expense 108,000 Dr
Payroll Taxes 16,200 Cr
Cash 91 800 Cr
Rectified Entries Would be
1 Materials 20,000 Dr
Accounts Payable 20,000 Cr
As there is no record of payment for material
Cash 20,000 Dr
Materials 20,000 Cr
Materials will be credited as they have been put to work in process and cash will be debited to counter the effect of the original entry.
2. Cash 8500 Dr
Manufacturing Overhead 8500 Cr
The original entry will be reversed to counter its effect and a new correct entry will be passed.
Selling (Salaries) Expenses 8,500
Cash 8,500
3. Cash 16,200 Dr
Payroll Taxes 16,200 Cr
Cash will be debited with an amount equal to payroll taxes and payroll taxes will be credited to complete the original entry.
Conley Company has fixed costs of $17,802,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $180 $99 $81 Zoro 225 135 90
The sales mix for products Model 94 and Model 81 is 75% and 25%, respectively. Determine the break-even point in units of Model 94 and Model 81. If required, round your answers to the nearest whole number.
a. Product Model 94 units
b. Product Model 81 units
Answer:
Break-even point:
a. Product Model 94 units = 160,378.38 units
b. Product Model 81 units= 53,459.46 units
Explanation:
The break even point in units is the minimum units of each of the two products that Conley Company should sell in order for it to make no profit or loss.
At this units of sales, the sales revenue would produce a total contribution exactly equal to the fixed cost of $17,802,000.
The beak-even point (total units) = Total fixed cost / average contribution per unitAverage average contribution per unit = ( 81× 75%) + (90× 25%) = $83.25
Break-even point = $17,802,000/83.25 = 213,837.84 units
Product Model unit = 75%× 213,837.84 units
= 160,378.38 units
Product Model 81 units = 25% × 213,837.84
= 53,459.46 units
The break-even points are 160,411 units for Yankee and 53,471 units for Zoro.
The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:
Product Yankee: Selling Price $180, Variable Cost $99, Contribution Margin $81Product Zoro: Selling Price $225, Variable Cost $135, Contribution Margin $90The sales mix for products Yankee and Zoro is 75% and 25%, respectively. To determine the break-even point in units for each model, we need to use the weighted average contribution margin (WACM).
Step 1: Calculate the WACM
WACM = (75% × $81) + (25% × $90) = $60.75 + $22.50 = $83.25Step 2: Calculate the total break-even point in units
Total Break-even Point (units) = Total Fixed Costs / WACM Total Break-even Point = $17,802,000 / $83.25 = 213,882 units (rounded to nearest whole number)Step 3: Determine the break-even point in units for each product
Yankee: 75% of 213,882 units = 160,411 unitsZoro: 25% of 213,882 units = 53,471 unitsTherefore, the break-even points for Conley Company in units are 160,411 units for Model Yankee and 53,471 units for Model Zoro.
On January 22, Zentric Corporation issued for cash 76,000 shares of no-par common stock at $15. On February 14, Zentric issued at par value 8,000 shares of preferred 6% stock, $50 par for cash. On August 30, Zentric issued for cash 12,000 shares of preferred 6% stock, $50 par at $65. Journalize the entries to record the January 22, February 14, and August 30 transactions. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Zentric Corporation
Journal Entries:
January 22:
Debit Cash with $1,140,000
Credit Common Stock with $1,140,000
To record issue of 76,000 shares of no-par value common stock at $15 each.
February 14:
Debit Cash Account with $400,000
Credit Preferred 6% Stock with $400,000
To record the issue of 8,000 shares at $50 par.
August 30:
Debit Cash Account with $780,000
Credit Preferred 6% Stock with $600,000
Credit APIC - Preferred with $180,000
To record issue of 12,000 shares, $50 par at $65.
No Chart of Accounts was provided for exact wording of account titles.
Explanation:
1. No-par common stock: When shares are issued at no-par, it means that there is no set par value. Par value is the nominal value of a share. Issuing at no-par implies that the amount realized from the sale would be credited to the Common Stock without any to the Additional Paid-in Capital (APIC).
2. Issue of preferred 6% stock at par value: This means that the stock was issued without additional paid-in capital. The stock was issued at the nominal value without premium.
3. Issue of preferred 6% stock, $50 par at $65: This stock was issued at a premium. More was charged above the par value. There is additional paid-in capital of $15 per share. This additional is credited to Additional Paid-in Capital - Preferred.
Mariposa Inc is considering improving its production process by acquiring a new machine. There are two machines management is analyzing to determine which one it should purchase. The company requires a 14% rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of $290,000, annual operating costs of $8,000, and a 3-year life. Machine B costs $180,000, has annual operating costs of $12,000, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Mariposa purchase and why?
Answer:
Machine B should be purchased because it has a lower equivalent annual cost
Explanation:
To determine the better of the two options, we would compare the equivalent annual cost of each options using a discount rate of 14% per annum
Equivalent annual cost = Total PV of cost /Annuity factor
Total PV of cost = Initial cost + PV of annual operating cost
PV of annual operating cost= Annual operating cost × Annuity factor
Annuity factor = (1- (1+r)^(-n))/r
r- rate , n- years
Machine A
PV of annual operating cost = 8,000 × (1- 1.14^(-3)/0.14= 18573.05622
PV of total cost = 290,000 +18573.05622 = 308,573.06
Uniform Annual cost = 308,573.06 /2.321632027 = 132,912.13
Equivalent annual cost = $132,912.13
Machine B
PV of annual operating cost = 12,000 × (1- 1.14^(-2)/0.14= 19759.92613
PV of total cost = 180,000 + 19759.92613 = 199,759.93
Equivalent annual cost = 199,759.93 /1.6466=$121,312.15
Equivalent annual cost = $121,312.15
Machine B should be purchased because it has a lower equivalent annual cost
Total PV of cost
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
Year 1 Sold $1,345,434 of merchandise (that had cost $975,000) on credit, terms n/30.
Wrote off $18,300 of uncollectible accounts receivable.
Received $669,200 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be ______.
The estimated bad debt at the end of Year 1 for the Liang Company is calculated as 1.5% of the remaining accounts receivable ($657,934), which results in $9,869.01.
Explanation:The Liang Company ended its first year with some transactions that involved credit sales, account receivable payments, and bad debts. The company sold $1,345,434 of merchandise from which $18,300 was written off as bad debts and $669,200 was received in cash. To calculate the potential bad debts at the end of the year, we apply the bad debt estimation rate, which is 1.5%. This rate is applied to the total amount of accounts receivable left (which is the initial credit sales minus the cash received and the bad debts).
Here is the step-by-step process:
Calculate the total receivables at the end of the year: $1,345,434 (credit sales) - $18,300 (write offs) - $669,200 (cash received) = $657,934. Apply the estimated bad debt rate on the remaining receivable amount: 1.5% of $657,934 = $9,869.01. This value represents the estimated bad debts. Learn more about Bad Debts Estimation here:
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Final answer:
Liang Company will calculate the estimated bad debts at 1.5% of the adjusted total accounts receivable, which must be derived from the credit sales minus collections and write-offs.
Explanation:
The student's question is about how to account for the estimation of bad debts at the end of the fiscal year. Liang Company estimated that 1.5% of accounts receivable would be uncollectible. To calculate this, Liang Company needs to determine the total accounts receivable at the end of the year, which includes sales on credit, minus any collections and write-offs. If they have not provided the year-end total accounts receivable, the company would take the credit sales made during the year and adjust it for any cash received and any write-offs. The estimation of bad debts would then be 1.5% of the adjusted accounts receivable total.
New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. It also sells an extended warranty which provides an additional two years of protection. On May 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. The journal entry to record this transaction would include
a. a credit to Service Revenue of $5,050.
b. a credit to Service Revenue of $1,200.
c. a credit to Sales of $3,850 and a credit to Service Revenue of $1,200
d. a credit to Unearned Service Revenue of $1,200
Answer:
D. credit to Unearned Warranty Revenue of $1,400
Explanation:
Unearned extended warranty revenue can be defined as the way in unearned revenues is reflected in accrued liabilities in the balance sheets which in turn lead to the revenue from separately priced as well as self-insured service contracts to be deferred at the point of sale.
Therefore the journal entry to record this transaction would include:
credit to Unearned Warranty Revenue of $1,400
A bank has book value of $5 million in liquid assets and $95 million in nonliquid assets. Large depositors unexpectedly withdraw $9.5 million in deposits. To cover the withdrawals the bank sells all of its liquid assets at book value. To raise the additional funds needed the bank sells the necessary amount of nonliquid assets at 80 cents per dollar of book value. As a result, the bank's equity will _____________.
Answer:
The equity will reduce by $1,125,000 or 1.125 M
Explanation:
Liquid assets needed to mange the withdraw = Withdrawal amount - Existing Liquid asset
Liquid assets needed to mange the withdraw = $9,500,000 - $5,000,000
Liquid assets needed to mange the withdraw = $4,500,000
Required Sale of Non-liquid assets = Liquid assets needed to mange the withdraw / Ratio of sale to book value
Required Sale of Non-liquid assets = $4,500,000 / 80%
Required Sale of Non-liquid assets = $5,625,000
Change in Bank Equity = Required Sale of Non-liquid assets - Liquid assets needed to mange the withdraw
Change in Bank Equity = $5,625,000 - $4,500,000
Change in Bank Equity = $1,125,000
The equity will reduce by $1,125,000 or 1.125 M
Symon's Suppers Co. has announced that it will pay a dividend of $4.25 per share one year from today. Additionally, the company expects to increase its dividend by 4.5 percent annually. The required return on the company's stock is 10.7 percent. What is the current share price
Answer:
$68.55
Explanation:
The computation of the current share price is shown below:
Current price = Today dividend price per share ÷ (Required rate of return-Growth rate)
= $4.25 ÷ (0.107-0.045)
=$68.55
We simply applied the above formula after considering all the three items given in the question so that the correct value could come
The accounting records of Baddour Company provided the data below. Net loss $ 4,625 Depreciation expense 6,125 Increase in salaries payable 495 Decrease in accounts receivable 2,175 Increase in inventory 2,320 Amortization of patent 490 Reduction in discount on bonds 390 Prepare a reconciliation of net income to net cash flows from operating activities.
Answer:
Net cash flows from operating activities $2,730
Explanation:
Cash flows from operating activities:
Net loss($4,625)
Adjustments for non cash effects:
Depreciation expense $6,125
Amortization of patent $490
Changes in operating assets and liabilities:
Increase in salaries payable $495
Decrease in accounts receivable $2,175
Increase in inventory($2,320)
Decrease in discount on bonds $390
Net cash flows from operating activities $2,730
Sandy's Sauces, which produces stir-fry sauces, is developing direct material standards. Each bottle of sauce requires 0.70 kilograms of base. The allowance for waste is 0.05 kilograms per bottle, while the allowance for rejects is 0.09 kilograms per bottle. What is the standard quantity of base per bottle? Group of answer choices
A. 0.75 kilograms
B. 0.70 kilograms
C. 0.84 kilograms
D. 0.79 kilograms
Answer:
C) 0.84 kilograms
Explanation:
The standard material quantity = kilograms per bottle + allowance for waste + allowance for rejects = 0.70 kg + 0.05 kg + 0.09 kg = 0.84 kg
The standard material quantity is the budgeted (estimated) amount of direct materials needed to produce one unit of output. The total standard quantity = standard material quantity times total units produced.
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 $1,900 every six months over the subsequent eight years, and finally pays $2,200 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 12 percent compounded semiannually.
In a company's standard costing system, direct labor-hours are used as the base for applying variable manufacturing overhead costs. The standard direct labor rate is twice the variable overhead rate. Last period the labor efficiency (quantity) variance was unfavorable. From this information one can conclude that last period the variable overhead efficiency (quantity) variance was:
Answer:
From this information one can conclude that last period the variable overhead efficiency (quantity) variance was unfavorable.
Explanation:
The variable overhead efficiency variance measures the difference between the actual and budgeted hours worked with respect to standard variable overhead rate per hour.
Variable overhead efficiency variance can be calculated thus:
Actual labor hours less budgeted labor hours x Hourly rate for standard variable overhead
If the time it takes to manufacture a product and the time budgeted for it matches or performs well, the labor efficiency is favorable.
Variable overhead efficiency variance is deemed unfavorable when it takes the company more time than budgeted to produce. This also shows labor efficiency variance was unfavorable.
Baxter International Inc. can obtain funds for future investments through retained earnings, new issues of common stock, and issuance of debt. Baxter's stock currently sells for $18 per share, paid a dividend of $1.20 last year(D0=$1.20), has a growth rate of 6% that is expected to continue, and new issues carry flotation costs of7%. Baxter's bonds sell for $945, pays a 7% annual coupon, matures in 30 years, and new issues carry3% flotation costs. Baxter's tax rate is 30%.9.What is Baxter's after-tax cost of debt
Answer:
The multiple choices are:
a. 7.72%
b. 5.40%
c. 5.22%
d. 7.46%
e. 4.90%
Option B is the correct answer,5.40%
Explanation:
In order to determine the after tax cost of Baxter's debt,we need to first of all calculate the pretax cost of debt which is by applying the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the number of coupon payments the bond would make which is 30
pmt is the annual coupon interest on the bond=7%*$1000=$70
pv is the current price of the bond minus the flotation cost=$945*(1-3%)=$916.65
The fv is the face value of $1000 per bond
=rate(30,70,-916.65,1000)
pretax cost of debt=rate=7.72%
After tax cost of debt=pretax cost of debt*(1-t)
t is th tax rate of 30% 0or 0.30
after tax cost of debt=7.72%*(1-.3)=5.40%
n the long run a company that produces and sells popcorn incurs total costs of $1,150 when output is 60 canisters and $1,100 when output is 90 canisters. The popcorn company exhibits a. diseconomies of scale because total cost is rising as output rises. b. economies of scale because total cost is rising as output rises. c. economies of scale because average total cost is falling as output rises. d. diseconomies of scale because average total cost is rising as output rises.
Answer:
Option (c)
Explanation:
As per the data given in the question,
A company exhibits economy when average total cost falls as output rises and company exhibits dis economy of scale when total cost rises as output rises.
In case of 60 canisters,
Average total cost = Total cost ÷ output
=$1,150÷60
=$19.17
In case of 90 canisters,
Average total cost = Total cost ÷ output
=$1,100 ÷ 90
=$12.22
Which indicates Economies of scale since total average cost decreasing as output increases.
The popcorn company exhibits economies of scale because average total cost is falling as output rises.
Given that,
When output is 60 canister, total cost is $1,150.When output is 90 canister, total cost is $1,100.We need to find the economies of scale.According to the scenario, computation of the given data are as follows,
Output = 60 canister
Total cost average = Total cost [tex]\div[/tex] output
= $1,150 [tex]\div[/tex] 60 = $19.17
When, Output = 90 canisters
Total cost average = Total cost [tex]\div[/tex] output
= $1,100 [tex]\div[/tex] 90
= $12.22
This shows, average total cost is falling as output rises.
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Fulfillment Fulfillment costs represent those costs incurred in operating and staffing our fulfillment and customer service centers, including costs attributable to receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; credit card fees and bad debts costs, including costs associated with our guarantee for certain third-party transactions; and responding to inquiries from customers. Fulfillment costs also include amounts paid to third parties that assist us in fulfillment and customer service operations. Certain of our fulfillment-related costs that are incurred on behalf of other business, such as Toysrus, Inc. and Target Corporation, are classified as cost of sales rather than fulfillment. (a) What type of cost is Amazon’s cost of sales, a product or a period cost?
Answer:
Cost of sales is a product cost since it is directly associated to the production of services by Amazon.
Explanation:
Another term for cost of sales is cost of goods sold. Even though Amazon provides services, it doesn't manufacture any goods, its cost of sales (or COGS) is directly related to the providing of the sales service.
Period costs are not directly associated to the production of goods or services, instead they are incurred as time passes, e.g. rent or interests.
Amazon's cost of sales is considered a product cost. It forms a crucial part of their business model, which combines economies of scale and technology to maintain low fulfillment costs.
Explanation:Amazon's cost of sales is generally categorized as a varietal product cost. Product costs are directly linked to the manufacturing or purchasing of the goods that a company sells, which does represent a significant portion of Amazon's business model. In contrast, period costs are not directly tied to the production process and typically include expenses like administrative and selling costs.
Amazon has been able to succeed largely due to its effective use of economies of scale, keeping its fulfillment costs low by storing inventories in vast, technologically advanced warehouses in areas with lower rent. This approach, in addition to their online business model, enables Amazon to reduce the average cost per sale and maintain competitive pricing.
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HyperNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 125 for each connector and fixed costs of $ 9 comma 500 per month. HyperNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 77 connectors at a total cost of $ 20 comma 000. HyperNet's total flexible budget cost for 77 connectors per month is
Answer:
$ 2,875 U
Explanation:
HyperNet Systems
Standard cost = (77 * 125 ) + 9,500
9,625+9,500
$ 19,125
Variance =actual -standard
22,000 - 19,125
$ 2,875 U
Crane Company purchased $1080000 of 8%, 5-year bonds from Swifty, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1129896 at an effective interest rate of 7%. Using the effective interest method, Crane Company decreased the Available-for-Sale Debt Securities account for the Swifty, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $3048 and $3192, respectively. At December 31, 2021, the fair value of the Swifty, Inc. bonds was $1164000. What should Crane Company report as other comprehensive income and as a separate component of stockholders’ equity? $40344
Answer: $27,864
Explanation:
The amount that should be recorded as other comprehensive income is the fair value less the sales price and the amortized premiums to reflect the true value of the investment,
= 1,164,000 - 1,129,896 - 3,048 - 3,192
= $27,864
$27,864 is the amount Crane Company should report as other comprehensive income and as a separate component of stockholders’ equity.
Classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash investing and financing activity. 1. Common stock is sold for cash above par value. Select an option 2. Bonds payable are issued for cash at a discount. Select an option 3. Interest on a short-term note receivable is collected. Select an option 4. Merchandise is sold to customers for cash.
Answer:
1. Common stock is sold for cash above par value. Financing activity
2. Bonds payable are issued for cash at a discount. Financing activity
3. Interest on a short-term note receivable is collected. Operating activity
4. Merchandise is sold to customers for cash. Operating activity
Explanation:
Operating activity
Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.
Interest on Account receivables and Sale of Merchandise are operating activities.
Investing activity
All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.
There is no Investing activities in this question
Financing activity
Cash flow from financing activities is the cash inflows and outflows related to the Financing of the business. It includes the cash flows related to Financing from common stock, preferred stock, Debt etc.
Proceeds from issuance of common stock and bond is classified as cash flow from Financing activities.
Answer:
he/she is right
Explanation:
i got the same answer
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $21,500. Its estimated residual value was $6,500 at the end of an estimated 5-year life. The company expects to produce a total of 10,000 units. The company produced 850 units in 2018 and 1,300 units in 2019. Required: Calculate depreciation expense for 2018 and 2019 using the straight-line method. Calculate the depreciation expense for 2018 and 2019 using the units-of-production method. Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.
Answer:
Explanation:
Cost of acquisition - $21,500
Residual value - $6,500
Depreciable amount - 21500-6500 =15,000
Useful life = 5 years
Total units produced = 10000
Depreciation rate = 1/5*100 = 20%
Double depreciation raate = 40%
Depreciation 2018 2019
Straight line 20%*15000 3000 3000
Units of production
850/10000*15000 1275
1300/10000*15000 1950
Double declining balance method
2018 = 40%*21500 = 8600
2019 =(21500-8600) *40%= 5160
2020 (12900 -5160)*40% = 3096
2021 (7740-3096) *40% =1858
2022 (4644-1858)*40% = 1114
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly. What is the difference in the present value of these two sets of payments?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
Martha:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
Stewart:
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Final answer:
The difference in present value for Martha and Stewart's payments stems from receiving payments at the beginning versus the end of the month, with Martha's payments having a slightly higher present value due to earlier investment potential.
Explanation:
The question relates to the calculation of present value of annuity payments, received at different times, under a certain discount rate. Martha receives her payments at the beginning of the month, and Stewart receives his at the end of the month, both over a 30-year period with a 9 percent discount rate, compounded monthly. The present value difference between their payments arises because of the time value of money; Money received earlier is worth more because it can be invested to earn interest.
To calculate the present value of the payments for both Martha and Stewart, we would use the present value of an annuity formula considering the timing of their payments. As Martha receives her payments at the beginning of the month, her valuation would be slightly higher than Stewart's, who receives payments at the end of the month, due to Martha being able to invest each payment a month earlier over the 30-year period.
Suppose that a telecommunications company controls a large share of the national market. The government believes that the economies of scale in this industry are not significant, and, therefore, multiple smaller firms would be able to provide lower prices. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?Do nothing at all.Regulate the firm's pricing behavior.Use antitrust laws to increase competition.Turn the company into a public enterprise.
Answer: Use antitrust laws to increase competition.
Explanation:
If the aim of the Government really is to.improve competition then they should use Anti-trust laws to increase competition.
This question is rooted in the concept of Capitalism and focuses on its good side which is that competition is good.
With such a law coming into effect, the large market share of the big company can be redistributed to the smaller firms which would enable competition amongst them and the large company as well. Competition at base level is good for the Economy for two main reasons;
1. It will make companies more efficient as they strive to better than each other. They'll produce better products and be more cost effective.
2. The citizens and consumers gain better service at cheaper costs because again, the companies would be competing amongst themselves and introducing newer and better ways to capture market share.
Answer:
Turn the company into a public enterprise.
Explanation:
Base on the scenario been described in the question, the policy options might most effectively enable the government to achieve its objectives in this situation is turn the company into a public enterprise.
If the government belief that the economies of scale in this industry are not significant, and therefore, multiple smaller firms would be able to provide lower prices is true, it would be profitable for the market, When a natural monopoly, such as an electric utility, is forced to sell itself to a public institution, the private monopoly will become a public enterprise. Such a policy option, which might be chosen by a government that views electricity as a public good, is generally the European approach to providing utilities. A potential drawback of this approach is that government managers may have little incentive to keep costs down
Rexford Corporation produces three products, with costs and selling prices as follows: Product A Product B Product C Machine hours per unit 3 1 2
Maximum demand 500 units
Selling price per unit $30 $20 $15
Variable costs per unit $18 $15 $ 6
Contribution Margin per unit $12 $ 5 $ 9
Machining is the bottleneck. The total machine time available is 2,100 hours. What is the maximum contribution margin that Rexford can earn by optimal use of the constrained resource?
Answer:
$9,400
Explanation:
For computing the maximum contribution margin we need to do following calculations
Contribution Margin
Product A = ($12 ÷3) = 4
Product B = ($5 ÷ 1) = 5
Product C = ($9 ÷ 2) = 4.50
So, the ranking order would be product B > product C > product A
Now
Total machine hours available = 2,100 hours
And,
Time for making 500 units of B
= 500 × 1
= 500 hours
For making 500 units of C, the time taken is
= 500 × 2
= 1000 hours
So the remaining hours left is
= 2,100 hours - 1,000 hours - 500 hours
= 600 hours
So, for A the manufactured is
= 600 ÷ 3
= 200
And, finally the Maximum contribution margin is
= (200 × $12) + (500 × 5) + (500 × 9)
= $2,400 + $2,500 + $4,500
= $9,400
Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $51; postage expenses, $73; and miscellaneous expenses, $141. The petty cashier could not account for a $13 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $460.
Answer and Explanation:
The Journal entry is shown below:-
September 9
Petty cash fund Dr, $400
To Cash $400
(Being establishment of petty cash fund is recorded)
Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.
September 30
Merchandise Inventory Dr, $51
Postage expense Dr, $73
Cash Short and over Dr, $13
Miscellaneous Dr, $141
To Petty Cash $278
(Being reimburse of petty cash find is recorded)
Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.
October 1
Petty cash fund Dr, $60
($460 - $400)
To Cash $60
(Being increase in petty cash fund is recorded)
Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.
Final answer:
The student needs three journal entries to manage the petty cash transactions: establishing the fund, reimbursing it, and increasing its total. These transactions involve various accounts such as Petty Cash, Cash, and specific expense accounts.
Explanation:
To assist the student with their accounting question regarding petty cash transactions, here are the journal entries needed:
Establishing the Petty Cash Fund on September 9:The receipts and cash shortfall are used to determine how much to reimburse the petty cash to bring it back up to the established amount of $400 on September 30. Then, the fund's size is increased from $400 to $460 on October 1 with additional cash.
Which of the following statements is true regarding the cognitive evaluation theory? This theory is based on three needs: need for achievement, need for power, and need for affiliation. This theory hypothesizes that extrinsic rewards will reduce intrinsic interest in a task. This theory proposes that employees inherently dislike work and must therefore be directed or even coerced into performing it. This theory states that the factors that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction. This theory is also called motivation-hygiene theory.
Answer:
This theory hypothesizes that extrinsic rewards will reduce intrinsic interest in a task.
Explanation:
Cognitive evaluation theory: In psychology, the term "cognitive evaluation theory" is described as one the different theories that are being designed to determine the specific effects associated with external consequences on an individuals' internal motivation. However, the cognitive evaluation theory describes that an individual is being encountered with two distinct types of motivation i.e, the extrinsic and the intrinsic motivation that generally corresponds to two types of motivators.
The cognitive evaluation theory suggests that extrinsic rewards can reduce intrinsic motivation. It is based on three psychological needs and proposes that job satisfaction and dissatisfaction are separate factors.
Explanation:The cognitive evaluation theory is a psychological theory that suggests that the introduction of extrinsic rewards can decrease intrinsic motivation. This theory is based on the idea that people have three psychological needs: the need for achievement, the need for power, and the need for affiliation. The theory proposes that when individuals receive external rewards for performing a task, it can undermine their internal motivation and interest in that task.
However, the cognitive evaluation theory does not state that employees inherently dislike work or need to be coerced into performing it. Rather, it focuses on how different types of rewards can affect intrinsic motivation. Additionally, the theory also suggests that factors leading to job satisfaction are separate from those leading to job dissatisfaction, indicating that they are distinct constructs.
The cognitive evaluation theory is sometimes referred to as the motivation-hygiene theory, but it is important to note that it is different from Herzberg's Two-Factor Theory of Motivation, which specifically focuses on job satisfaction and dissatisfaction.
Learn more about Cognitive Evaluation Theory here:https://brainly.com/question/31537915
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Poseidon Co. holds 70% of the common stock of Saturn Co. In the current year, Poseidon report sales of $2,400,000 and cost of goods sold of $1,800,000. For this same period, Saturn has sales of $900,000 and cost of goods sold of $540,000. During the current year, Saturn sold merchandise to Poseidon for $300,000. Poseidon still possesses 40% of this inventory at the end of the current year. Saturn had established the transfer price based on its normal markup. What are consolidated sales and cost goods sold
Final answer:
Consolidated sales are $3,300,000 and consolidated cost of goods sold are $2,340,000.
Explanation:
Consolidated sales and cost of goods sold are calculated when a parent company owns a significant percentage of the common stock of another company. In this scenario, Poseidon Co. holds 70% of the common stock of Saturn Co. To calculate consolidated sales, we need to add the sales of both companies. In this case, Poseidon reported sales of $2,400,000 and Saturn reported sales of $900,000. Therefore, consolidated sales would be $2,400,000 + $900,000 = $3,300,000.
To calculate consolidated cost of goods sold, we need to add the cost of goods sold of both companies. Poseidon reported a cost of goods sold of $1,800,000 and Saturn reported a cost of goods sold of $540,000. Therefore, consolidated cost of goods sold would be $1,800,000 + $540,000 = $2,340,000.
Suppose that real GDP is currently $13.22 trillion and potential real GDP is $14.0 trillion, or a gap of $800800 billion. The government purchases multiplier LOADING... is 10.010.0, and the tax multiplier is 9.09.0. Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP
Answer:
Change in government purchase needed = $40
Explanation:
Multiplier denotes the extent to which, change in an autonomous variable leads to multiple change in economy income.
Multiplier 'k' = Change in Income 'ΔY' / Change in autonomous variable 'ΔG', as autonomous variable = government purchase here.
ΔY needed = 200 billion , k = 5 , ΔG = ?
k = ΔY / ΔG
5 = 200 / ΔG
ΔG = 200 / 5
ΔG = 40
Change in government purchase needed = $40
fitness center is planning to invest in specialized exercise equipment. This equipment is highly effective, but the club members could be injured if the equipment is used incorrectly. The fitness center sends its exercise instructors to a certified training program to learn how to use these machines correctly. This is best classified as ____________________________. a. career training b. job and technical training c. problem-solving training d. developmental training
Answer:
b. job and technical training
Explanation:
The job and the technical training is the training which is to be provided by the company or the centers to the workers or the people who want to trained in a particular service or specialized in a service in order to get a better and satisfying job through which they can build their career in a better way
In the given situation, the fitness center send the instructors to the certified training program to learn how to use these machines correctly that reflects the job and technical training