Answer:
Carlos’ goal is to reduce average loan processing by fifteen percent within the next 6 months. - REVIEWED GOALS
Reviewed goals are those that can be juxtaposed against previous performance to see if a better performance was put in. Carlos will review his performance at the end of 6 months.
Michelle is a salesperson. Her goal is to increase the number of sales calls made to potential customers. - RELEVANT GOALS
Relevant goals are those that relate to the job they are made for. Michelle is a salesperson so her having a goal of increasing calls to potentials is relevant to her job.
Sam has been reviewing customer accounts at a rate of two per day. His goal is to double that rate. That is possible, but he’ll have to work hard and be creative to reach this goal. - ACHIEVABLE GOALS.
Acheivable goals are just that, acheivable. Sam's goal to double his reviewing rate is said to be possible so it is achievable.
Chen has been given a project, and his manager clearly communicated the quantity and quality expectations to him. SPECIFIC GOALS.
Specific goals have set targets that should be met and in giving Chen clearly communicated quantity and quality expectations, Chen's manager has given him specific goals.
Elizabeth has just been given a project which needs to be completed within 6 weeks. TIME-FRAME GOALS.
Time-frame goals as implied are goals that have to be completed within a certain time period. Elizabeth has to complete this project in 6 weeks so this is a time-frame goal.
Kelly is most excited about adopting goals because it means she’ll finally have a clear measure of how well she is doing. MEASURABLE GOALS.
Measurable goals relate with the name and can be measured or enable one to measure something else. Kelly will be able to measure how she is doing with these goals of hers so they are measurable goals.
A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:______.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 175,000 4 %
0-60 days past due $ 40,000 10 %
61-120 days past due $ 10,000 30 %
More than 120 days past due $ 5,000 60 %
Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment, which of the following would be recorded in the year-end adjusting entry?
Answer: $14,000
Explanation:
Estimated Uncollectible = (4% * 175,000) + ( 10% * 40,000) + ( 30% * 10,000) + (60% * 5,000)
= 7,000 + 4,000 + 3,000 + 3,000
= $17,000
The credit balance on the Allowance account will be used to account for some of the uncollectibles. The remaining amount will be the year-end adjusting entry;
= 17,000 - 3,000
= $14,000
On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end. In its December 31, 2013, balance sheet, Rigsby would report:
a. Realized gross profit of $100,000.
b. Deferred gross profit of $100,000.
c. Installment receivables (net) of $3,200,000.
d. Installment receivables (net) of $4,
Answer:
a. Realized gross profit of $100,000.
Explanation:
In 2013, Rigsby Sales Co would realize:
Gross profit percentage = ($4,500,000 - $3,600,000) /4,500,000
Gross profit percentage = 0.20
Gross profit percentage = 20%
Gross profit to be realized is
Gross profit = Installment received * Percentage of gross profit
Gross profit = $500,000*20%
Gross profit = $100,000
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation service for the windows The installation process does not involve changes in the windows, so this service can be performed by other vendors. Kingbird enters into the following contract on July 1, 2017, with a local homeowner.
The customer purchases windows for a price of $2,470 and chooses Kingbird to do the installation. Kingbird charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $580. The customer pays Kingbird $1,940 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Kingbird completes installation on October 15, 2017, and the customer pays the balance due.
Prepare the journal entries for Kingbird in 2017.
Answer:
Kingbird Windows
July 1, 2017:
Debit Cash Account $1,940
Credit Unearned Sales Revenue $1,940
To record the receipt of cash from customer.
Sept. 1, 2017:
Debit Unearned Sales Revenue $1,940
Credit Sales Revenue $1,940
To record the sale of windows.
Debit Inventory $1,050
Credit Cost of Goods Sold $1,050
To record the cost of goods sold.
Oct. 15, 2017:
Debit Cash Account $530
Credit Service Revenue $530
To record the service revenue earned for installation of windows.
Explanation:
The data state that Kingbird Window's selling price is equal to $1,940, which its customer pays in advance of performance. Therefore, this amount is taken as the sales revenue. The stand-alone price of installation is estimated to be $580, but only $530 is recorded as revenue for the installation since the difference had been captured under the actual costs.
Learning design software, applying to college and creating a website to showcase work are examples of ______ that lead to a career as a graphic artist?
Answer:
Long term goals
Explanation:
goals are later on
Answer:
Long term goals
Explanation:
hopes this helps<3
Lina Martinez wants to buy a new high-end audio system for her car. The system is being sold by two dealers in town, both of whom sell the equipment for the same price of $2,000. Lina can buy the equipment from Dealer A, with no money down, by making payments of $118.28 a month for 18 months; she can buy the same equipment from Dealer B by making 36 monthly payments of $70.31 (again, with no money down). Lina is considering purchasing the system from Dealer B because of the lower payment.
Find the APR for Dealer A.
Use the financial calculator and Find the APR for Dealer B
Answer:
dealer A:
total interest charged = ($118.28 x 18 months) - $2,000 = $129.04
APR = [($129.04 / $2,000) / 1.5 periods] x 100% = 4.3%
dealer B:
total interest charged = ($70.31 x 36 months) - $2,000 = $531.16
APR = [($531.16 / $2,000) / 3 periods] x 100% = 8.85%
The APR charged by dealer A is much lower than the APR charged by dealer B. Even thought the monthly payments are much lower for dealer B, the total amount of interest charged is much higher.
If the expected sales volume for the current period is 9,000 units, the estimated the beginning inventory is 200 units and the desired ending inventory is 300 units, calculate the production budget for the current period.Group of answer choices9,0008,9008,7009,100
Answer:
Production= 9,100 units
Explanation:
Giving the following information:
Sales= 9,000 units
Beginning inventory= 200 units
Desired ending inventory= 300 units
To calculate the budgeted production for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 9,000 + 300 - 200
Production= 9,100 units
Landhill Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2020, Sandhill took part in the following selected transactions.
1. Issued 4,500 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,900.
2. Issued 1,100 shares of stock for land appraised at $49,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance.
3. Purchased 470 shares of treasury stock at $41 per share. The treasury shares purchased were issued in 2016 at $38 per share.
Required:
a. Prepare the journal entry to record item 1.
b. Prepare the journal entry to record item 2.
c. Prepare the journal entry to record item 3 using the cost metho
Answer: Please see answer in explanation column
Explanation:
1. Journal to record common stock issued
Account title Debit Credit
Cash $210,400
Common stock $22,500
Paid in capital in excess of par $187,900
common stock
Calculation:
Cash = 4,500 x $45 + $7900= $210,400
Common stock =4,500 x $5=$22,500
Paid in capital in excess of par common stock = Cash - Common stock =$210,400-$22,500=$187,900
2) To reccord Land purchased in exchange of common stock
Account title Debit Credit
Land $50,600
Common stock $ 5,500
Paid in capital in excess of par $45,100
common stock
Calculation:
Land= 1,100 x $46 = $50,600
Common stock =1,100 x $5=$5,500
Paid in capital in excess of par common stock = 1100 x (46-5)$41=45,100
3) To record purchase of treasury stock
Account title Debit Credit
Treasury stock $19,270
Cash $19,270
Calculation:
Treasury stock = 470 shares x$41= $19,270
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
During May, the department operated at 9,080 hours, and the factory overhead costs incurred were indirect factory wages, $42,268; power and light, $22,064; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.
Required:
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours.
Answer:
Tiger Equipment Inc.
Factory Overhead Cost Variance Report
1 Variable costs: Actual Flexible Variance
2 Indirect factory wages $42,268.00 $41,768 500.00 U
3 Power and light 22,064.00 21,792 272.00 U
4 Indirect materials 18,700.00 18,160 540.00 U
5 Total variable cost $83,032.00 $81,720 1,312.00 U
6 Fixed costs:
7 Supervisory salaries $19,800.00 $19,800 $0 None
8 Depreciation of plant and equipment 35,700.00 35,700 $0 None
9 Insurance and property taxes 18,450.00 18,450 $0 None
10 Total fixed cost 73,950.00 73,950 $0 None
11 Total factory overhead cost $156,982.00 $155,670 $1,312 U
Explanation:
Welding Department's
Factory Overhead Cost Budget
For the month of May:
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
b) Flexing the variable cost:
1 Variable costs: Flexible
2 Indirect factory wages $40,020/8,700 * 9,080 = $41,768
3 Power and light 20,880 /8,700 * 9,080 = $21,792
4 Indirect materials 17,400/8,700 * 9,080 = $18,160
5 Total variable cost $78,300/8,700 * 9,080 = $81,720
Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the children. Tommy is a hard worker and strives to provide for his family, although his skills are limited. Tommy has been a butcher for his entire career. He has been with his present company, a large retail grocer, for the past six years performing the same job. There are twelve people in the meat department, and each one specializes in cutting certain types of meat. Tommy's job is to cut ribeye steaks. Cutting ribeye steaks is very precise and requires holding and using a knife in the same way every day. This requirement has started to cause Tommy pain in his right hand. Although Tommy still likes his work, he is getting a little bored of the repetition and is bothered by the pain.
The quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored. What could they do to keep him better engaged?
a. Purchase special ergonomic mats to help with the pain associated with standing on the hard floor every day.
b. Motivate Tommy by giving him feedback about how skilled he is in cutting ribeye and explain that customers visit the store for his custom steaks.
c. Offer Tommy more money because he is so good at cutting meat.
d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
e. Administer a work personality quiz to Tommy to see if there is another area in the store where he could move to, such as the produce department.
Answer: d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
Explanation:
Since the quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored, the thing that could be done to keep him better engaged is to cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa. Cross training helps the workers in the company appreciate the workers of others in other department and shows workers flexibility.
You are analyzing two companies that manufacture electronic toys--Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $200,000 each. You've gathered up company data to compare Like Games and Our Play. Last year, the average sales for industry competitors was $510,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You've collected data from the companies' financial statements. This information is listed as follows:
Like Games
Accounts receivable: 5,400
Net fixed assets: 110,000
Total assets: 190,000
Our Play
Accounts receivable: 7,800
Net fixed assets: 160,000
Total assets: 250,000
Industry Average
Accounts receivable: 7,700
Net fixed assets: 433,500
Total assets: 469,200
Using this information, complete the following statements in your analysis.
1. A _____ days of sales outstanding represents an efficient credit and collection policy. Between the two companies, _____ is collecting cash from its customers faster than _____, but both companies are collecting their receivables less quickly than the industry average.
2. Our Play's fixed assets turnover ratio is _____ than that of Like Games. This could be because Our Play is a relatively new company, so the acquisition cost of it fixed assets is _____ that the recorded cost of Like Games's net fixed assets.
3. Like Games's total assets turnover ratios is _____, which is _____, than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Answer:
1. A LOWER days of sales outstanding represents an efficient credit and collection policy. Between the two companies, LIKE GAMES is collecting cash from its customers faster than OUR PLAY, but both companies are collecting their receivables less quickly than the industry average.
2. Our Play's fixed assets turnover ratio is LOWER than that of Like Games. This could be because Our Play is a relatively new company, so the acquisition cost of it fixed assets is HIGHER that the recorded cost of Like Games's net fixed assets.
3. Like Games's total assets turnover ratios is 1.05, which is LOWER than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Explanation:
DSO = (accounts receivable / credit sales) x 365
DSO industry = (7,700 / 510,000) x 365 = 5.5 days
DSO Like Games = (5,400 / 200,000) x 365 = 9.9 days
DSO Our Play = (7,800 / 200,000) x 365 = 14.2 days
Fixed asset turnover ratio = net sales / average fixed assets
Fixed asset turnover ratio industry = 510,000 / 433,500 = 1.18
Fixed asset turnover ratio Like Games = 200,000 / 110,000 = 1.82
Fixed asset turnover ratio Our Play = 200,000 / 160,000 = 1.25
Total asset turnover ratio = net sales / average total assets
Total asset turnover ratio industry = 510,000 / 469,200 = 1.09
Total asset turnover ratio Like Games = 200,000 / 190,000 = 1.05
Total asset turnover ratio Our Play = 200,000 / 250,000 = 0.8
Freeport-McMoRan Copper & Gold Inc., headquartered in Phoenix, Arizona, is a leading international mining company of copper, gold, and molybdenum. Its revenues were over $16 billion with net income of nearly $2 billion in a recent year.
Assume that in February 2020, Freeport-McMoRan paid $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1,000,000 total cubic yards could be extracted economically. During 2020, 60,000 cubic yards were extracted. During January 2021, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit.
Required:
a. Compute the acquisition cost of the deposit in 2020.
b. Compute depletion for 2020.
c. Compute the net book value of the deposit after payment of the January 2021 developmental costs.
Answer:
A. $ 870,000
B. $52,200
C. $823,800
Explanation:
a. Computation for acquisition cost.
Using this formula
Acquistion cost= 800,000 +70,000
Acquistion cost=$ 870,000
2. Computation for depletion
Depletion for 2020=
(870,000/1,000,000)*60,000
Depletion for 2020=0.87*60,000
Depletion for 2020= $52,200
3. Computation for the net book value
Net book value =$870,000 -$52,200 +$6,000
Net book value=$823,800
Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson, president of the company, anticipates a 15 percent increase in the cost per unit of direct labor on January 1 of next year. He expects all other costs and expenses to remain unchanged. Wilson has asked you to assist him in developing the information he needs to formulate a reasonable product strategy for next year.
You are satisfied that volume is the primary factor affecting costs and expenses and have separated the semivariable costs into their fixed and variable segments. Beginning and ending inventories remain at a level of 1,000 units. Current plant capacity is 20,000 units. The following are the current-year data assembled for your analysis.
Sales price per unit $100
Variable costs per unit:
Direct materials $10
Direct labor $20
Manufacturing overhead and selling and administrative expenses 30 60
Contribution margin per unit (40%) $40
Fixed costs $390,000
Required:
a. What increase in the selling price is necessary to cover the 15 percent increase in direct labor cost and still maintain the current contribution margin ratio of 40 percent?
b. How many units must be sold to maintain the current operating income of $350,000 if the sales price remains at $100 and the 15 percent wage increase goes into effect?
c. Wilson believes that an additional $700,000 of machinery (to be depreciated at 20 percent annually) will increase present capacity (20,000 units) by 25 percent. If all units produced can be sold at the present price of $100 per unit and the wage increase goes into effect, how would the estimated operating income before capacity is increased compare with the estimated operating income after capacity is increased? Prepare schedules of estimated operating income at full capacity before and after the expansion.
Answer:
a. What increase in the selling price is necessary to cover the 15 percent increase in direct labor cost and still maintain the current contribution margin ratio of 40 percent?
estimated production costs per unit:
direct materials $10
direct labor $23
overhead $30
total $63
if we want contribution margin to remain at 40%, then selling price = $63 / (1 - 40%) = $105
to verify our answer, contribution margin = $105 - $63 = $42 / $105 = 40%
b. How many units must be sold to maintain the current operating income of $350,000 if the sales price remains at $100 and the 15 percent wage increase goes into effect?
if sales price doesn't change, then contribution margin = $37 (not $40)
units sold to keep profit at $350,000 = ($350,000 + $390,000) / $37 = 20,000 units per year
c. Wilson believes that an additional $700,000 of machinery (to be depreciated at 20 percent annually) will increase present capacity (20,000 units) by 25 percent. If all units produced can be sold at the present price of $100 per unit and the wage increase goes into effect, how would the estimated operating income before capacity is increased compare with the estimated operating income after capacity is increased? Prepare schedules of estimated operating income at full capacity before and after the expansion.
working at full capacity, sales price $100 (unchanged) and direct labor costs increasing by 15%
capacity 20,000 capacity 25,000
sales revenue $2,000,000 $2,500,000
direct labor $460,000 $575,000
direct materials $200,000 $250,000
overhead $600,000 $750,000
fixed costs $390,000 $670,000
operating revenue $350,000 $255,000
The expansion will result in lower operating profits ($95,000 less) so it should be discarded.
If the price level increases by 2 percent each year, the inflation rate is increasing. a. True b. False
Answer: False
Explanation:
Inflation refers to the general rise in prices of goods and services in an economy. It erodes the value of currency because with inflation, one is able to buy less goods.
If the inflation rate increases by 2% each year then the inflation rate is not increasing. The inflation rate is remaining constant at 2%. The inflation rate would be increasing if the prices increased by 2% then by 4% then by 6%. That way the inflation rate would be increasing by 2% every year.
If the rate at which prices are increasing is constant then, the inflation rate is the same.
Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.
Answer:
This technique is called "bait and switch", it is illegal and is considered false advertising. A seller cannot falsely advertise a product and then simply say that they do not have it on stock. It is a type of sales fraud and it is prohibited by the Lanham Act.
In order for this situation to be considered legal, the seller must have advertised and sold a certain amount of coats, but it didn't sell any. I.e. the seller runs out of stock because it already sold the 3 coats.
The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010. The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.
Economy Real Income per Person in 1960 Real Income per Person in 2010 Annual Growth Rate
(Dollars) (Dollars) (Percent)
Canada 12,946 35,810 2.06
United Kingdom 11,884 32,034 2.00
Korea 1,610 28,702 5.93
Hong Kong 4,518 44,070 4.66
Guatemala 1,985 3,859 1.34
Indicate which economy satisfies each of the following statements.
Statement Canada Guatemala Hong Kong Korea Niger United Kingdom
This economy had the highest level of real income per person in the year 2010.
This economy experienced the fastest rate of growth in real income per person from 1960 to 2010.
Consider the following list of four economies. Which economy began with a level of real income per person in 1960 that was well below that of the United Kingdom and grew fast enough to catch up with and surpass the United Kingdom's real income per person by 2010?
a. Canada
b. Guatemala
c. Hong Kong
d. Korea
The economy began with a level of real income per person in 1960 that was well below that of the United Kingdom and grew fast enough to catch up with and surpass the United Kingdom's real income per person by 2010 is Korea. Thus the correct option is D.
What is the Economy?The economy of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.
In the given report one can observe that the real income per person in the year 1960 in the United Kingdom was 11,884 with the Real Income per Person in 2010 being 32,034.
Based on the information from the table, it is concluded that Korea is the economy that grew fast enough to catch up with and surpass the United Kingdom's real income per person by 2010.
As of 1960, Korea has Real Income per Person was 1,610 which grew to 28,702 in 2010 showing quick development.
Therefore, option D is appropriate.
Learn more about the Economy, here:
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discuss the importance of diversity in all its forms in an organization and provide specific examples/scenarios.
Answer:
Explanation below
Explanation:
Workplace diversity can be attained when people from different races, ethnic groups, ages, languages, nationalities, gender and religions are well represented within the company.
Diversity benefits the company in different ways.
When it comes to the marketing of company products and services, a diverse workforce can be able to build trust in the company’s brand with a diverse market they are targeting.
When your product development team have diverse individuals that is in sync with your target market, they can be able to create new products and services that can satisfy the needs of the market they are targeting
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $3,000,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $4,800,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $20,000,000.
Required
A. Prepare the journal entry to account for the development of this product in 2020.
B. Prepare the journal entry to record the amortization of capitalized computer software development costs in 2021.
C. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs?
At December 31, 2021, the unamortized software intangible asset totals ______. This is equal to _____ originally capitalized less amortization in 2021 of _______. The amount charged to expense as amortization of software intangible asset in 2021 was ______. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Answer:
Answer:
PC Software Inc.
A. Journal Entry to account for the development of software in 2020:
Debit Software $1,200,000
Debit Development Expenses $1,800,000
Credit Cash Account $3,000
To capitalize 40% software development costs.
B. Journal Entry to amortize Capitalize Computer Software Development in 2021:
Debit Amortization Expense $240,000
Credit Accumulated Amortization - Software $240,000
To record the amortization of the capitalized software.
C. At December 31, 2021, the unamortized software intangible asset totals _$960,000_____. This is equal to _$1,200,000____ originally capitalized less amortization in 2021 of _ $240,000______. The amount charged to expense as amortization of software intangible asset in 2021 was _$240,000_____. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Explanation:
The choice is for PC Software Inc. to follow the US GAAP rule, which states that development costs incurred for an internally-generated software should be capitalized only when the software is commercially feasible. Based on this, only 40% of the software expenditures are capitalized.
Exercise 2-8 Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics Aug. 1 Madison Harris, the owner, invested $6,see cash and $33,509 of photog company paid $2,100 cash for an insurance policy covering the next 24 month:s s The company purchased office supplies for $888 cash. 20 The company received $3,331 cash in photography fees earned. 31 The company paid $675 cash for August utilities.
Required:
1. Post the transactions to the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics. Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Post the transactions to the T-accounts Cash ies Balance
Answer:
All requirements solved
Explanation:
For different accounts, debits and credits may translate to increases or decreases, but the debit side must always lie to the left of the T outline and the credit entries must be recorded on the right side.
T-Accounts
Cash
Date Description Debit Credit
1-Aug M Harris, Capital $6,500
2-Aug Prepaid Insurance $2,100
5-Aug Office Supplies $880
20-Aug Fees Earned $3,331
31-Aug Utilities Expense $675
31-Aug Balance $6,176
Total $9,831 $9,831
Office Supplies
Date Description Debit Credit
5-Aug Cash $880
31-Aug Balance $880
Total $880 $880
Prepaid Insurance
Date Description Debit Credit
2-Aug Cash $2,100
31-Aug Balance $2,100
Total $2,100 $2,100
Photography Equipment
Date Description Debit Credit
1-Aug M Harris, Capital $33,500
31-Aug Balance $33,500
Total $33,500 $33,500
M Harris, Capital
Date Description Debit Credit
1-Aug Cash $6,500
1-Aug Photography Equipment $33,500
31-Aug Balance $40,000
Total $40,000 $40,000
Utilities Expense
Date Description Debit Credit
31-Aug Cash $675
31-Aug Balance $675
Total $675 $675
Photography Fees Earned
Date Description Debit Credit
20-Aug Cash $3,331
31-Aug Balance $3,331
Total $3,331 $3,331
Trial Balance
Debit Credit
Cash $6,176
Office Supplies $880
Prepaid Insurance $2,100
Photography Equipment $33,500
M Harris, Capital $40,000
Photography Fees Earned $3,331
Utilities Expense $675
Totals $43,331 $43,331
A deposit of $10,000 is made a year from now, a second deposit of $10,000 is made at the end of the year 5, and a deposit of $3000 is made at the end of year 8. The account earns 6% interest. You want to withdraw an equal amount, X at the end of each year for the next 10 years. What is the amount of X if the goal is to empty the account
Answer:
$4068.77
Explanation:
We calculate the Future value of all the three deposits at the end of year 8
FV = CF1 *(1+r)^8-1 + CF5*(1+r)^8-5 + CF8 * (1+r)^8-8
FV = 10000 *(1+0.06)^7 + 10000*(1+0.06)^3 + 3000 * (1+0.06)^0
FV = 15,036.30 + 11,910.16 + 3,000
FV= $29,946.46
We have to calculate the annuity payments that have a Present value = $29,946.46
PV = PMT * 1-(1+r)^-n / r
PV = 29,946.46, PMT= ?, r = 6%, n = 10
29,946.46 = PMT * 1-(1+0.06)^-10 / 0.06
29,946.46 = PMT * 1 - 1.06^-10 / 0.06
29,946.46 = PMT * 1 - 0.558395 / 0.06
29,946.46 = PMT * 0.441605 / 0.06
29,946.46 = PMT * 7.36008
PMT = 29,946.46/7.36008
PMT = 4068.768274257889
PMT = $4068.77
Thus, amount of X is $4068.77 if the goal is to empty the account.
Dale takes out a loan of $8,000 with a 15.2% interest rate that is compounded semi-annually.
If he pays off the loan in 3 years, how much will he end up paying?
Round your answer to the nearest cent.
DO NOT round until you have calculated the final answer.
Answer:
$12,415.48
Explanation:
The formula for calculating compound interest is
FV = PV × (1+r)^ n.
For Dale , FV = the amount he will pay?
PV = $8,000
r = 15.2%
n =3 years
Since interest is compounded semi-annually, the applicable r will be 15.2% divided by 2, n will be 3 years x 2
Fv= $8,000 x ( 1 + {15.2 %/ 2}^6
Fv = $8,000 x (1+ 7.6/100) ^ 6
Fv= $8,000 x ( 1.076) ^6
Fv = $8000 x 1.551934858492184
Fv=$12,415.482
Fv= $12,415.48
Dale will end up paying $12,415.48
Answer: 12,415.48
Explanation:
Use the compund interest formula for calculating the future value, A=P(1+rn)n⋅t where A is the unknown future value, P is the principal, so P=$8,000, r is the rate written as a decimal, so r=0.152, n is the number of periods of compounding which is 2 when compounded semi-annually,so n=2, and t is the time in years, so t=3. Substitute the values into the formula.
Use the compound interest formula and substitute the given values: A=$8,000(1+0.1522)2(3). Simplify using the order of operations: A=$8,000(1.076)6=$8,000(1.551935358)≈$12,415.48.
A check register shows a balance of $152.34. The bank statement shows that a check for $75.00 deposited by the account owner was drawn against insufficient funds and was returned. A charge for $2.00 was also deducted by the bank because of the return. Compute the adjusted cash balance of the check register.
Answer:
$150.34
Explanation:
The $75 check has been drawn against insufficient funds and has been returned so this check won't be included in the adjusted cash balance of the check register.
A charge for $2.0 will be deducted from the balance shown by the cash register above to calculate the adjusted cash balance of the check register.
Adjusted cash balance of the check register = $152.34 - $2
Adjusted cash balance of the check register = $150.34
Promises Made in Consideration of Marriage. After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement. They both acknowledged that the agreement had stated that each would keep his or her own property and anything derived from that property. Robert came into the marriage owning farmland, while Mary Lou owned no real estate. During the marriage, ten different parcels of land, totaling about six hundred acres, were acquired, and two corporations, Tuttle Grain, Inc., and Tuttle Farms, Inc., were formed. A copy of the prenuptial agreement could not be found.
Required:
Can the court enforce the agreement without a writing? Why or why not?
Answer:
Explanation:
From the question, we are informed about Promises Made in Consideration of Marriage. And After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement.
In this case with the rest information from the question, that A copy of the prenuptial agreement could not be found, then the court cannot enforce the agreement without a writing Prenuptial agreements.
Reason behind this is that a Prenuptial agreements can only be enforced if it is writing.Prenuptial agreements is usually signed before two people marry each other, so in case of death or divorce in the future, the ownership of their asset would have been defined.
Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year. This means that Ms. Sawyer's real income has ____________ since last year.
Answer:
Increased
Explanation:
Based on the information given we were told Ms. Sawyer's salary is the amount of $35,000, up from the amount of $31,000 last year which means that Ms. Sawyer's salary had INCREASED from $31,000 last year to $35,000 this year
Secondly we were told that the CPI is 187.5 this year which is up from 180 last year which means that Ms. Sawyer's CPI had INCREASED
from 180 last year to 187.5 this year.
Therefore this simply means that Ms. Sawyer's real income has INCREASED since last year.
A movie ticket cost $0.5 in 1970. The CPI (1970) and the CPI (2011) was 38.8 and 218.8 respectively. How much money would you have needed in 2011 to buy a movie ticket?
help please
Answer:
$2.82
Explanation:
The CPI is the measure of the average changes in prices of consumer goods and services. The CPI compares current prices and prices at the base year.
CPI is expressed as a percentage. It represents the cost of goods in a given year divided by the cost of goods in the base year multiplied by 100.
In 1970, the movie price was $0.50, and CPI was 38.8%
in 2011, CPI was 218.8%; the movie price will be?
in 1970: $0.50 =38.8%
in 2011: ? = 218.8%
?= 218.8/38.8 x $0.50
?=5.6392 x 0.50
=$2.81896
=$2.82
All of the following are forms of cognitive bias except:_____.
A. Confirmation bias: This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions.
B. Anchoring: This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information.
C. Shifting: This is the bias involved in shifting perspectives too rapidly, thereby forgoing objectivity and sound reasoning.
D. Halo effect: This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related.
E. Overconfidence bias: This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.
Answer:
Option C would be the correct answer.
Explanation:
Throughout objective reasoning, cognitive bias seems to be a weakness that has been triggered by that of the human brain's propensity to interpret knowledge through a prism of individual perspective including interests. The types of cognitive bias but for the remaining change.
The types of cognitive bias are almost as follows:
Overconfidence biasConfirmation bias Halo effect Anchoring biasThe latter considerations provided are not closely linked to the case provided. So, the answer above is the right one.
In the official government National Income and Product Accounts (NIPA), what component of investment includes purchases of new houses?
Answer:
Residential
Explanation:
National Income and Product Accounts often referred to as NIPA are a form of details obtained and released by the United States Bureau of Economic Analysis of the Department of Commerce. The purpose is to depict the different elements of national income and output in the economy in a given period of time. However, under national product accounts, a component of investment that includes purchases of new houses is "RESIDENTIAL"
a stock will pay dividend of $4 at the end of the year. it sells today for $104 and it its dividends are expected grow at a rate of 9%. what is the implied rate of return on this stock
Answer:
the implied rate of return on the stock is 14.80%
Explanation:
The computation of the implied rate of return is shown below:
The Rate of return is
= (Dividend at year 1 ÷ share price) + growth rate
= ( $6 ÷ 104) + 0.09
= 0.058 + 0.09
= 14.80%
We simply applied the above formula
And, the same is to be considered
hence, the implied rate of return on the stock is 14.80%
CAM charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of 2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is a common area, which the landlord believeswill require $8 per square foot to maintain and operate each year. If the owner is to cover total CAM charges, how much will in-line tenants have to pay per square foot?
Answer:
$3.08 per square foot
Explanation:
Calculation for how much will in-line tenants have to pay per square foot
First step is to find the common area
Common area = 2,800,000−800,000−1,300,000 Common area= 700,000
Second step is to find Common area operating costs
Common area operating costs = 700,000×8
Common area operating costs= $5.6 million
Third step is to find the Operating costs charged to in-line tenants
Operating costs charged to in-line tenants = 5,600,000−800,000×2
Operating costs charged to in-line tenants = 4,000,000
Last step is to calculate the In-line CAM charges using this formula
In-line CAM charges=Operating costs charged to in-line tenants -In-line tenants square feet
Let plug in the formula
In-line CAM charges = 4,000,000 ÷ 1,300,000
In-line CAM charges= $3.08
Therefore the amount that in-line tenants have to pay per square foot will be $3.08 per square foot.
f Europe has a real GDP growth rate of 5%, and the United States has a real GDP growth rate of 6%, while money growth in Europe is 7%, and money growth in the United States is 5%, what would the monetary exchange rate model predict for exchange rates in the long run
Answer:
the dollar will appreciate by 3% against the euro
Explanation:
long run change in the exchange rate = (growth rate money supply Europe - growth rate money supply US) - (growth rate real GDP Europe - growth rate real GDP US) = (7% - 5%) - (5% - 6%) = 2% - (-1%) = 2% + 1% = 3%
This is a very simplistic approach to the monetary exchange rate model, but since we are given only this information, it's all that we can use.
Stylon Co., a women’s clothing store, purchased $70,300 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $9,000, receiving a credit memo.
Required:
Journalize Stylon’s entries to record:
a. The purchase
b. The merchandise return
c. The payment within the discount period of 10 days
d. The payment beyond the discount period of 10 days.
Answer:
a. Dr Inventory 68,894
Cr Accounts Payable 68,894
b.Dr Accounts Payable 8,820
Cr Inventory 8,820
c. Dr Accounts payable 60,074
Cr cash 60,074
d.
d1. Dr Inventory 1,201
Cr Accounts payable 1,201
d2. Dr Accounts payable 58,872
Cr Cash 58,872
Explanation:
Preparation of Journal entries
a. The purchase Journal entry
Dr Inventory 68,894
Cr Accounts Payable 68,894
[70,300(1-.02)]
[To record inventory net of discount if payment made within discount period amounting to 2% recorded]
b.The merchandise return Journal entry
Dr Accounts Payable 8,820
Cr Inventory 8,820
[9,000(1-.02)]
c. Journal entry to record the Payment within the discount period of 10 days
Dr Accounts payable 60,074
Cr cash 60,074
(68,894-8,820 = 60,074)
[To record payment to accounts payable due made within discount period]
d. Journal entry to record the payment that was made beyond the discount period of 10 days.
d1. Dr Inventory 1,201
Cr Accounts payable 1,201
[To record discount forfeited ]
d2. Dr Accounts payable 58,872
Cr Cash 58,872
Calculation for Net amount due for payment =68,894-8,820 = 60,074)
Gross amount = 60,074/(1-.02) = 58,872
Calculation for Discount forfeited
Discount forfeited= Gross amount *discount %
Discount forfeited= 60,074 *2%
Discount forfeited = 1,201