Answer:
Income tax expense 567,000 debit
income tax liability 151,200 credit
income tax payable 415,800 credit
Explanation:
Income before taxes: 2,700,000
unfavorale temporary difference 240,000
favorable temporary difference 960,000
taxable income 1,980,000
income tax payable : 1,980,000 x 21% = 415,800
income tax expense: 2,700,000 x 21% = 567,000
960,000 - 240,000 = 720,000 net
as we are paying fewer taxes now, we are going to pay more in the future.
Therefore, we have a tax liaiblity:
720,000 x 21 = 151,200
The following information was reported in the December 31, 2012, financial statements of Southeast Airlines, Inc. (listed alphabetically, amounts in millions).Accounts Payable $4,155Accounts Receivable 700Aircraft Fuel Expense 9,900Cash 3,090Common Stock 1,280Dividends 15Equipment 15,810Income Tax Expense 310Interest Expense 250Landing Fees Expense 4,300Notes Payable 7,010Repairs and Maintenance Expense 2,400Retained Earnings (as of December 31, 2012) 7,895Salaries and Wages Expense 3,460Supplies 740Ticket Revenues 23,100Prepare an income statement for the year ended December 31, 2012.
Answer and Explanation:
The preparation of the income statement for the year ended Dec 31,2012 is shown below"
Southeast Airlines, Inc.
Income statement
For the year ended December 31, 2012
Revenue
Ticket Revenues $23,100
Total revenues $23,100 (A)
Less: Expenses
Aircraft Fuel Expense $9,900
Income Tax Expense $310
Interest Expense $250
Landing Fees Expense $4,300
Repairs and Maintenance Expense $2,400
Salaries and Wages Expense $3,460
Total expenses $20,620 (B)
Net income $2,480 (A- B)
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $19 per hour per employee. Each employee identifies an average of 4,100 potential leads a week from a list of 5,000. An average of 5 percent of potential leads actually sign up for the service, paying a one-time fee of $70. Material costs are $1,400 per week, and overhead costs are $9,300 per week.
Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Round your answer to 2 decimal places.)
Answer:
3.32
Explanation:
The computation of the multifactor productivity is shown below:
As we know that
Multifactor productivity = Output ÷ Input
where,
Output = (possible leads × no of workers × fee × Conversion percentage)
= 4100 × 3 × 70 × 5%
= $43050
And,
Input is
= Labor cost + Material cost + Overhead cost
where,
Labor cost = 3 × 40 × 19
= $2,280
Material cost = $1,400
And,
Overhead cost = $9,300
So,
Input = $2,280 + $1,400 + $9,300
= $12,980
Now
Multifactor productivity is
= $43,050 ÷ $12,980
= 3.32
The following information pertains to Marigold Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.Assets Cash and short-term investments $ 40,000Accounts receivable (net) 30,000Inventory 25,000Property, plant and equipment 215,000Total Assets $310,000Liabilities and Stockholders' Equity Current liabilities 60,000Long-term liabilities 95,000Stockholders' equity-common 155,000Total Liabilities and stockholders' equity $310,000Income Statement Sales $ 90,000Cost of goods sold 45,000Gross margin 45,000Operating expenses 20,000Net income $ 25,000Number of shares of common stock 6,000000Market price of common stock $40Dividends per share 1.00Cash provided by operations $40,000What is the rate earned on total assets for this company?A. 8.1%B. 6.8%C. 10.5%D. 16.1%
Answer:
Marigold Company
The rate earned on total assets for Marigold = Net Income/Total Assets * 100
= $ 25,000/$310,000 * 100
= 8.06%
Explanation:
a) Data:
Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 215,000
Total Assets $310,000
Liabilities and Stockholders' Equity
Current liabilities 60,000
Long-term liabilities 95,000
Stockholders' equity-common 155,000
Total Liabilities and stockholders' equity $310,000
Income Statement
Sales $ 90,000
Cost of goods sold 45,000
Gross margin 45,000
Operating expenses 20,000
Net income $ 25,000
Number of shares of common stock 6,000000
Market price of common stock $40
Dividends per share 1.00
Cash provided by operations $40,000
b) Marigold's Return on assets (ROA) indicates how profitable it is relative to its total assets. Its ROA gives a manager, investor, or analyst an idea as to how efficient Marigold's management is at using the company's assets to generate earnings. As a percentage, Marigold's Return on assets is 8.06%.
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object.Cost Cost Object Direct Cost Indirect CostEx. Catered food served to patients A particular patient x 1. The wages of pediatric nurses The pediatric department 2. Prescription drugs A particular patient 3. Heating the hospital The pediatric department 4. The salary of the head of pediatrics The Pediatric department 5. The salary of the head of pediatrics A particular pediatric patient 6. Hospital chaplain's salary A particular patient 7. Lab tests by outside contractor A particular patient 8. Lab tests by outside contractor A particular department
Answer:
1. Direct Cost
2. Direct Cost
3. Direct Costs
4. Direct Costs
5. Indirect Costs
6. Indirect Costs
7. Direct Costs
8. Indirect Cost
Explanation:
A cost object is where costs accumulates and the value needs to be determined.
Before classifying costs as direct or indirect it is very important to identify the cost object.
Direct costs can be traced directly through observation on the cost object whilst the Indirect costs can not be trace directly to the cost object.
The Mugger sells three types of mugs, flowers, dogs, and sports. The following information is available: Flowers Dogs Sports Total Sales Volume 25,000 100,000 50,000Selling Price $20 $25 $10Variable cost per unit 10 20 6Total fixed costs $500,000 REQUIRED: 1. What is the breakeven point for The Mugger? 2. Would you recommend promoting the change in product mix to 4 to 2 to 1 of flower mugs, dog mugs, and sports mugs? Why?
Answer:
See answer below
Explanation:
1. The break even point for flowers = Fixed costs / Contribution margin
Where contribution margin = Selling price per unit - Variable cost per unit
= $500,000 / ($20 - $10)
= $500,000 / $10
= 50,000 units
Therefore,
Break even point for the Mugger is 50,000 units.
Break even points for Dogs = Fixed costs ÷ Contribution margin
= $500,000 / ($25 -$20)
= $500,000 / $5
= 100,000 units
Break even points Sports = Fixed costs / Contribution margin
= $500,000 / ($10 - $6)
= $500,000 / $4
= 125,000 units
2. I can recommend that the mugger should change its product mix from 1:4:2 (Flowers, dogs, sports) to 4:2:1 (Flowers , dogs , sports)
• Because there is an increase in the break even points for each of the mugger.
Investment company advertising is prohibited from showing:_______
Answer: performance projections
Explanation:
Investment company advertising is prohibited from showing performance projections.
In 1994, The Securities and Exchange Commission approved amendments that hinders the members from using rankings in investment company in sales literature and advertisements unless some particular requirements are being met.
Although Janet has a Director (Communications) role within Zenith Fine Furnishings for the special project she is working on, her responsibilities include dealing directly with non-management employees and essentially acting as a liaison between management and non-management employees. These responsibilities indicate Janet is serving at which level of management?
a. top-level managet
b. middle-level manager
c. executive manager
d. frontline manager
e. strategeic manager
Answer: b. middle-level manager
Explanation: Middle level managers act as intermediate between the workers and the exec utives as evident in some of the responsibilities of Janet which include: dealing directly with non-management employees and essentially acting as a liaison between management and non-management employees. They are subordinate to and accountable to the senior management but above the lowest levels of operational workers to whom they provide guidance and inspiration to. These thus, is an indication that Janet is serving at the middle-level manager level of management.
The process of planning and managing a firm’s long-term assets is called:______.
A. Capital Budgeting
B. Agency Cost Analysis
C. Capital Structure
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.(a) Indicate the missing amount. Case 1 2Direct materials used $9,700 $Direct labor 5,100 8,100Manufacturing overhead 8,400 4,100Total manufacturing costs 16,100Beginning work in process inventory 1,100 Ending work in process inventory 3,100Sales revenue 25,000 Sales discounts 2,600 1,500Cost of goods manufactured 17,100 22,100Beginning finished goods inventory 3,400Goods available for sale 22,100 Cost of goods sold Ending finished goods inventory 3,500 2,600Gross profit 7,100Operating expenses 2,800 Net income 5,100
Answer:
Incomplete manufacturing costs:
Case 1 Case 2
Direct materials used $9,700 $3,900
Direct labor 5,100 8,100
Manufacturing overhead 8,400 4,100
Total manufacturing costs 23,200 16,100
Beginning work in process inventory 1,100 9,100
Ending work in process inventory 7,200 3,100
Sales revenue 25,000 31,500
Sales discounts 2,600 1,500
Cost of goods manufactured 17,100 22,100
Beginning finished goods inventory 5,000 3,400
Goods available for sale 22,100 25,500
Cost of goods sold 18,600 22,900
Ending finished goods inventory 3,500 2,600
Gross profit 3,800 7,100
Operating expenses 2,800 2,000
Net income 1,000 5,100
Explanation:
To work out the missing figures involves some manoeuvres of the figures, working up or down as the case may be. For example, to calculate the cost of goods sold in Case 1, I deducted the ending inventory of finished goods from the Goods available for sale. With this figure, it becomes possible to work out the Gross profit and the Net income.
The following transactions were incurred by Stoncius Fabricators during January, the first month of its fiscal year. i (Click the icon to view the transactions) Requirements 1. Record the proper journal entry for each transaction 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much? a. $170,.000 of materials was purchased on account. Record the entry (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Credit a. Raw Materials Inventory Accounts Payable 170000 170000 b. $162,000 of materials was used in production, of this amount, $143,000 were used on speciffe obs. Record the entry. ournal Entry Date Accounts Debit Credit b. Work in Process Invento Manufacturing Overhead Raw Materials Inventory 143000 19000 162000 c. Manufacturing labor and salaries for the month totaled $220,000. A total of $200,000 of manufacturing labor and salaries was traced to specific jobs, and Journal Entry Date Accounts Debit Credit
Answer:
Journal entries are given
Explanation:
Raw materials used for special jobs will be allocated to work in process and the remaining used in production will be allocated to manufacturing overhead.
Requirement 1
A (Materials was purchased on account)
DEBIT CREDIT
Raw Material Inventory $170,000
Accounts Payable $,170,000
B (Materials was used in production)
DEBIT CREDIT
Work In process Inventory $143,000
Manufacturing Overhead $19,000
Raw Material Inventory $162,000
C (Manufacturing labor and salaries for the month)
DEBIT CREDIT
Work In process Inventory $200,000
Manufacturing Overhead $20,000
Wages payable $220,000
Requirement 1
There NO such information available in the question to determine whether manufacturing overheads are over-allocated or under-allocated.
Klara wants to compare the price of a wallet she saw at Nordstrom Rack with other stores that may have the same wallet. She locates the product of three different websites, including Amazon. Klara’s quest is an example of how customers are using __________ to solve problems.
This question is incomplete because the options are missing, here is the missing part:
Klara’s quest is an example of how customers are using __________ to solve problems.
A. Price shopping
B. Databases
C. Information technology
D. Social networking
The answer to this question is C. Information technology
Explanation:
Webpages and the internet are part of Information technology because these two tools allow users to obtain or share information by using technologies such as mobile phones or computers. Moreover, nowadays, information technologies help an essential role in the process of selling and buying products because through these companies can advertise their products and customers can obtain information about them or even buy them.
The use of information technology in buying and selling is exemplified by Kiara because she used the internet as a tool to find the web pages that sold a specific wallet and then know the price. Also, the use of this information technology helps Kiara make the best buying decision.
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $17,500.
March 5 Obtain $8,300 loan from the bank by signing a note.
March 10 Purchase construction equipment for $21,500 cash.
March 15 Purchase advertising for the current month for $1,000 cash.
March 22 Provide construction services for $17,300 on account.
March 27 Receive $12,300 cash on account from March 22 services.
March 28 Pay salaries for the current month of $5,300.
Required:
Record each transaction. Bearcat uses the following accounts: Cash, Accounts Receivable, Notes Payable, Common Stock, Service Revenue, Advertising Expense, and Salaries Expense.
Answer:
Bearcat Construction
General Journal
March 1
Cash $17,500 (debit)
Common Stock $17,500 (credit)
Cash Received in Exchange of Common Stock
March 5
Cash $8,300 (debit)
Note Payable $8,300 (credit)
Cash received from Bank Loan
March 10
Equipment (debit)
Cash (credit)
Purchase of Equipment by Cash
March 15
Advertising Expenses (debit)
Cash (credit)
Advertising Expense paid in Cash
March 22
Accounts Receivable $17,300 (debit)
Service Revenue $17,300 (credit)
Service Rendered on Credit
March 27
Cash $17,300 (debit)
Accounts Receivable $17,300 (credit)
Cash Received from Accounts Receivables
March 28
Salaries Expense $5,300 (debit)
Cash $5,300 (credit)
Salaries paid in Cash
Explanation:
See the Journal Entries and Narrations that i have prepared above.
Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be backed at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8.00 per hour. In addition to the labor cost, Charles has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.40.
1. Current multi-factor productivity for 640 work hours per month =_____.
2. After increasing the number of work hours to 864 per month, the multi-factor productivity =______.
3. The percentage increase in productivity =______.
Answer:
1) $0.27 per loaf of bread
2) $0.28 per loaf of bread
3) 3.7%
Explanation:
current production = 1,800 loaves per month
current labor expense = $8 per hour
constant utility cost = $800
ingredients per loaf = $0.40
multi-factor productivity = total output / (labor + materials + overhead)
current multi-factor productivity = 1,800 loaves / ($5,120 + $800 + $720) = $0.27 per loaf of bread
new output level = 1,800 x 1.35 = 2,430 loaves
new multi-factor productivity = 2,430 loaves / ($6,912 + $800 + $972) = $0.28 per loaf of bread
% increase = ($0.28 - $0.27) / $0.27 = 3.7%
A registered investment adviser and its representatives have been registered in a State for the past 5 years. The current registration manager of the adviser resigns in November and the firm retains an executive search firm to find a new registration manager. The position is filled in June of the following year and the new registration manager finds that registration renewals has not been filed. Which statement is TRUE?
a. The registered investment adviser must re-register in the State, but not the investment adviser representatives
b. The investment adviser representatives must re-register in the State, but not the investment adviser
c. Both the investment adviser and the investment adviser representatives must re-register in the State
d. Neither the investment adviser nor the investment adviser representatives are required to re-register in the State
Based on the given information, the statement which is true is Neither the investment adviser nor the investment adviser representatives are required to re-register in the State. Thus the correct option is D.
What is a manager?
A manager refers to a person who is responsible head of any project and helps in arranging the resources, checking the progress, and timely completion of it in order to achieve the vision and goal of the organization.
In the given case, it is explained that For the last five years, a registered investment adviser and its agents have been registered in a State. The adviser's existing registration manager resigns in November, and the company hires an executive search agency to locate a replacement.
The State does not need the investment adviser or the investment adviser representatives to re-register according to the given information.
Therefore, option D is appropriate.
Learn more about Managers, here:
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The journal entry to record a credit sale is:______.a) cash; service revenue.
b) accounts receivable: sales.
C) accounts receivable: sales return and allowances.
d) cash; sales.
Answer:
b) accounts receivable: sales.
Explanation:
When sales are made on credit, no cash is received, hence, the appropriate entries would be to record expectation of future cash receipt by debiting accounts receivable while sales revenue is credited because sales are recorded when entity has delivered goods to the customer and not necessarily when cash in respect of the sales has been received
Workplace technology is relied upon by businesses to increase _____________. Employee turnover Philanthropy Efficiency and effectiveness Malfunction and futility
Answer:
Workplace technology is relied upon by businesses to increase _____________.
Efficiency and effectiveness
Explanation:
Workplace technology including the use of computer systems, internet, and other communication and information devices has propelled manufacturing and eased communication. Technology has exponentially improved the rate of production and speed at which business occurs. Technology in the workplace has helped factory and administrative workers to become more efficient than ever before with the automation of the many processes. As efficiency is increased, so has effectiveness in the production of desired results been improved tremendously. For instance, a process or set of processes that used to take hours now can take only minutes.
In the month of June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,320 and variable costs were 40% of sales. Instructions:A. Determine the contribution margin in dollars, per unit, and as a ratio.B. Compute the break-even point in units and dollars.C. How much can sales decline before Bedford Company experiences a loss? D. What would be the sales dollars and number of units sold if Bedford Company wishes to have a target profit of $4,000?
Answer:
Results are below.
Explanation:
Giving the following information:
In June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,320 and variable costs were 40% of sales.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 34*0.4= $13.6
Now, we can determine the contribution margin per unit and the contribution margin ratio:
contribution margin per unit= selling price - unitary variable cost
contribution margin per unit= 34 - 13.6= $20.4
contribution margin ratio= contribution margin per unit/selling price
contribution margin ratio= 20.4/34
contribution margin ratio= 0.6
To calculate the break-even point in units and dollars, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,320/20.4
Break-even point in units= 310 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 6,320/0.6
Break-even point (dollars)= $10,533
To calculate the margin of safety, we will use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 350*34 - 10,533
Margin of safety= $1,367
Finally, the desired profit is $4,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (6,320 + 4,000) / 20.4
Break-even point in units= 506 units
Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio
Break-even point (dollars)= 10,320/0.6
Break-even point (dollars)= $17,200
If a firm is a price taker in both the labor market and the output market, it will:______.a. exceeds the marginal revenue product of labor.b. equals the marginal revenue product of labor.c. is less than the marginal revenue product of labor.d. equals the marginal physical product of labor.
Answer:
(C)
Explanation:
First, what does it mean for a firm to be a price-taker and then in 2 market places?
If a firm is a price-taker, this means that the firm accepts the price presented by the other group. The other group in this case is either laborers (labor market) or customers/other firms (output market).
A firm that is a price-taker does not set or use its own desired price and this is usually for business reasons.
The labor market is a resource market; since labor is one of the resource inputs or factors used in production.
A price-taker firm in the labor market is one that accepts the price at which labor(ers) chooses to work. This price could be lower or higher than what the firm is willing and able to pay.
The output market is the market for buying and selling of finished or semi-finished goods/products. It is the final market; where manufactured goods are made available to their various consumers.
A price-taker firm in the output market is one that accepts the price set by other firms in the industry or the price agreed upon by consumers. Again, this price could be higher or lower than the price at which the producer is willing to give the product away.
Now, what happens to the income statistics of firm that is a price-taker in both the labor market and the output market?
The firm will be running on less than the marginal revenue product of labour.
The mission of the National Association of Advertising (NAA) is to improve and strengthen the ad agency business, to advocate advertising, to influence public policy, to resist advertising-related legislation that it regards as unwise or unfair, and to work with government regulators to achieve desirable social and civic goals
a. True
b. False
Answer: False
Explanation:
The above statement is wrong as the function described is that of the American Association of Advertising Agencies which is a trade association for the advertising agencies in the United States.
The goal of the American Association of Advertising Agencies is to strengthen and also improve advertising agency business and to also help its member agencies to enjoy more profit and be more effective and efficient.
The primary functions of accounting are to:_________
Answer:
c. measure a company's activities.
e. communicate information to decision makers.
Explanation:
Accounting's main purpose is to record the activities of a company because record keeping is very important as it primarily shows whether the company is making a profit or a loss.
The records can then be submitted to decision makers and stakeholders who will then use the information given to guide decisions that they will make for themselves, the company or both.
Which source of law takes priority in the following situations, and why?
a) A federal statute conflicts with the U.S. constitution.
b) A federal statute conflicts with a state constitutional provision.
c) A state statute conflicts with the common law of that state.
d) A state constitutional amendment conflicts with the U.S. constitution.
Answer:
a) A federal statute conflicts with the U.S. constitution.
b) A federal statute conflicts with a state constitutional provision.
Explanation:
As per the Article Vi of the United States constitution, the constitution represents the supreme law of the land if there is any kind of violation that would be declared as non-constitutional and hence not enforced irrespective of what source should be enforced
Also the statutes of the federal state took pattern over the provision of state constitution
Hence, the a and b are correct
Prepaid items on financial statements
Therapy Inc. experienced the following events in 2013, its first year of operation:
1. Performed counseling services for $18,000 cash.
2. On February 1, 2013, paid $12,000 cash to rent office space for the coming year.
3. Adjusted the accounts to reflect the amount of rent used during the year.
Required
Based on this information alone
a. Record the events under an accounting equation.
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
c. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2014?
Answer:
a. Record the events under an accounting equation (I divided the accounting equation in 2)
assets = liabilities + equity
cash prepaid rent
1) 18,000 0 0 18,000
2) -12,000 12,000
3) 0 -11,000 0 -11,000
revenue - expenses = net income cash flow type
1) 18,000 0 18,000 18,000 OA
2) 0 0 0 -12,000 OA
3) 0 11,000 -11,000 0 OA
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
Therapy Inc.
Income Statement
For the year ended December 31, 2013
Service revenue $18,000
Rent expense ($11,000)
Net income $7,000
Therapy Inc.
Income Statement
For the year ended December 31, 2013
Assets:
Cash $6,000
Prepaid rent $1,000
Total assets $7,000
Liabilities $0
Equity
Retained earnings $7,000
Total liabilities and equity $7,000
Therapy Inc.
Cash Flow Statement
For the year ended December 31, 2013
Cash flows from operating activities
Net income $7,000
Adjustments to net income:
Increase in prepaid rent ($1,000)
Net cash flow from operating activities $6,000
Cash flows from investing activities: $0
Cash flows form financing activities: $0
Net increase in cash $6,000
Beginning cash balance $0
Ending cash balance $6,000
c. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2014?
If they continue to rent the same office, the rent expense for 2014 should be $12,000 (assuming that rent didn't change)
The flow rate of customers at a state fair is 100 per hour. The fair is open from 8 a.m. to 8 p.m. How many customers come through the fair during that time?
Answer:
1,200 customers
Explanation:
Calculation for how many customers come through the fair during that time
Based on the information given about the time the fair is open, we were told that they do open from 8am in the morning to 8pm in the night which means that 8am to 8pm will give us 12 hours
Now let calculate for the numbers of customers that come through the fair during that time Using this formula
Numbers of customers =Flow rate of customers per hr×Numbers of hours
Let plug in the formula
Numbers of customers =100 customers per hr x 12 hrs
Numbers of customers == 1,200 customers
Therefore the numbers of customers that come through the fair during that time will be 1,200 customers.
The primary source of information to be reported about litigation, claims, and assessments is the:_________
Answer:
Client's management
Explanation:
Client's management in business can be explained as the act of maintaining the positive relationship between the client and the company in order to have a productive interaction so that the company can deliver the quality of service required by the client and for lasting relationship between them.
This is important in business to keep your client from getting their service/ product elsewhere. It should be noted that the primary source of information to be reported about litigation, claims, and assessments is the Client's management
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $168,120. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $22,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $168, 120 Implicit interest rate (Also lessee's incremental borrowing rate) 88 Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Complete Question
The complete question is shown on the first uploaded image
Answer:
Now the calculation of this question and its solution is shown on the second and third uploaded image
Explanation:
For this question we will be making use of the excel formula
Now note since the installment is paid at the beginning of each quarter, there will be no interest charged in the first quarter and the whole amount paid will be adjusted against the outstanding lease balance.
A plaintiff in a high profile legal suit was offered the following out of court settlement: We the defendent will pay the lump sum of $200 to the plaintiff in exactly 11 years. Or alternatively, we will negotiate a lump sum payment today. According to time value of money, what lump sum amount today will have the same present value as the offered settlement if the interest rate of 4.2%?$______ Place your answer in dollars and cents. Do not include a dollar sign or a comma. Work your analysis out with at least 4 decimal places of accuracy.
A company that loans money to an organization is a(n):______.a. supplier.b. lender.c. shareholder.d. investor.
Answer:
lender.
Explanation:
A lender is an individual or company that makes funds available another com[any. Lenders receive fixed payments based on a predetermined rate at an agreed time.
A shareholder is the owner of a company. A shareholder is a person who buys the stock of a publicly traded company
Supplier provides raw materials needed for production to a company
An investor can either be a lender or shareholder
Which of the following statements about the income and substitution effects of an income tax rate increase is true? A. The income and substitution effects are contradictory behavioral reactions. B. From the government's perspective, the substitution effect is more desirable than the income effect. C. Faith in the income effect is the foundation for supply-side economic theory. D. Dynamic forecasts of incremental tax revenues must consider the potential income effect but not the potential substitution effect of a rate increase.
Answer:
D. Dynamic forecasts of incremental tax revenues must consider the potential income effect but not the potential substitution effect of a rate increase.
Explanation:
This is because, an increase in taxes would affect the incomes of the people thereby decreasing the disposable income available to people while on the other-hand, there will be no substitution available for them unlike if the situation where to be with regards to goods and services.
Answer:
A, C, and D!!!
Explanation:
100% on edge :)
Perpetual Inventories The following summary data are from the job order cost sheets of Castle Company: Dates Total costs Assigned Total Production Job Started Finished Shipped at September 30 Costs Added in October 1 9/10 9/20 10/11 $9,000 2 9/17 9/29 10/22 6,600 3 9/25 10/11 10/27 3,500 $7,100 4 9/27 10/19 11/4 4,400 5,700 5 10/14 11/10 11/18 3,200 6 10/23 11/17 11/29 4,900 Using the above data,
compute:
(a) the finished goods inventory at October 1 and October 31,
(b) the work in process inventory at October 1 and October 31, and
(c) the cost of goods sold for October. Castle began operations with Job 1.
a. Finished goods inventory at October 1: ____________
Finished goods inventory at October 31: _____________
b. Work in process inventory at October 1: ___________
Work in process inventory at October 31: ____________
c. Cost of goods sold for October:__________
Answer and Explanation:
The computation of each point is shown below:-
a. The finished goods inventory at October 1 = $9,000 + $6,600
= $15,600
the finished goods inventory at October 31 = $4,400 + 5,700
= $10,100
b. the work in process inventory at October 1 = $3,500 + $4,400
= $7,900
the work in process inventory at October 31 = $3,200 + $4,900
= $8,100
c. the cost of goods sold for October.
Castle start operations with Job 1
= $9,000 + $6,600 + $3,500 + $7,100
= $26,200
Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some goods.a) trueb) false
Answer:
True
Explanation:
the country with the lower opportunity cost in producing a good is more efficient in production and should specialise in production of that good. While the country with the higher opportunity cost is inefficient in the production of the good and should import from the country with the lower opportunity cost.
Let's illustrate with an example
Scenario A
Country X's opportunity cost in the production of good A = 12 units of B
Country Y's opportunity cost in the production of good A = 2 units of B
Country Y is more efficient and should specialise in the production of good A
Scenario B
Country X's opportunity cost in the production of good A = 12 units of B
Country Y's opportunity cost in the production of good A = 12 units of B
Both countries have the same opportunity cost, so, we can't decide which country should specialise