Answer:
Erin's basic earnings per share for 2021 is $6.50 per share.
Explanation:
Basic earnings per share (EPS) refers to a measure that show investors the amount of the net income of a company that is allotted to one share of the common stock of the company.
In the calculation of the basic EPS, the dilutive effects of convertible securities are not to be considered.
Therefore, Erin's basic earnings per share for 2021 can be calculated using the following formula:
Earnings per share (EPS) = (Net income - Preferred dividend) / Number of shares of common stock ...................... (1)
Where;
Net income = $60,000,000
Preferred dividend = $1,500,000
Number of shares of common stock = 9,000,000
Substituting the values into equation (1), we have:
Earnings per share (EPS) = ($60,000,000 - $1,500,000) / 9,000,000 = $58,500,000 / 9,000,000 = $6.50 per share.
Therefore, Erin's basic earnings per share for 2021 is $6.50 per share.
The following transactions occurred during the month of June 2013 for the Stridewell Corporation. The company owns and operates a retail shoe store.a. Issued 100,000 shares of common stock in exchange for $500,000 cash.b. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.c. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.d. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.e. Paid $6,000 in rent on the store building for the month of June.f. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2013.g. Paid $120,000 on account for the merchandise purchased in transaction c.h. Collected $55,000 from customers on account.i. Paid shareholders a cash dividend of $5,000.j. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.k. Recorded the amount of prepaid insurance that expired for the month.Required:Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
Answer and Explanation:
The Journal entries are prepared below:-
1. Cash Dr, $500,000
To Common stock $100,000
To Paid in capital of par $400,000
(Being issue of shares in excess of par is recorded)
2. Furniture and fixtures Dr, $100,000
To Cash $40,000
To Notes payable $60,000
(Being purchase of furniture and fixtures is recorded)
3. Inventory Dr, $200,000
To accounts payable $200,000
(Being inventory on account is recorded)
4. Accounts receivable Dr, $280,000
Cost of goods sold Dr, $140,000
To Sales $280,000
To Inventory $140,000
(Being credit sales is recorded)
5. Rent expenses Dr, $6,000
To Cash $6,000
(Being rent paid is recorded)
6. Prepaid insurance Dr, $3,000
To Cash $3,000
(Being insurance paid for one year is recorded)
7. Accounts payable Dr, $120,000
To Cash $120,000
(Being purchase of goods is recorded)
8. Cash Dr, $55,000
To Accounts receivable $55,000
(Being collection from customers on account is recorded)
9. Dividend Dr, $5,000
To Cash $5,000
(Being cash dividend to shareholders is recorded)
10. Depreciation expense Dr, $2,000
To Furniture and fixtures $2,000
(Being depreciation furniture and fixtures is recorded)
11. Insurance expense Dr, $250
To Prepaid insurance $250
(Being insurance expense for the month is recorded)
on
Student loans can!
your options on
what you want to do in your life.
Answer:
try to get a high paying job to get that student loan out
Cooper Construction Company had a contract starting April 2021, to construct a $24,000,000 building that is expected to be completed in September 2023, at an estimated cost of $22,000,000. At the end of 2021, the costs to date were $10,120,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $4,800,000 and the cash collected during 2021 was 3,200,000. Cooper uses the percentage-of-completion method. At December 31, 2021 Cooper would report Construction in Process in the amount of: A. $ 920,000 B. $10,120,000 C. $11,040,000 D. $ 9,440,000
Answer:At December 31, 2021 Cooper would report Construction in Process in the amount of: C. $11,040,000
Explanation:
Particulars Amount
Total Contract Price $24,000,000
Expected Costs of Contract $22,000,000
Profit ($24millon -$22millon) $2,000,000
Profit in % of cost $2,000.000/$22,000,000 9.09%
Costs incurred in 2021 $10,120,000
Gross Profit = total gross profit on contract x Total % of completion in 2021 $10,120,000 x 9.09% $919,908
construction in process at 31 Dec 2021=
$10,120,000 + $919,908=$11,039,000 rounded up to $11,040,000
a store at the mall having a minimum age requirment for workers is an example of which catagory of employee rights
Answer:
wages and hours
Explanation:
A store at the mall having a minimum age requirement for workers is a wages and hours is the example of category of employee rights.
What is employee rights?Because of your race, color, religion, sexual orientation, gender identity, national origin, handicap, age, or genetic information, you won't encounter bullying or unfair treatment. For equivalent work, equal compensation is given.
Three rights for employees are established and made explicit by the Act: the "right to know" information about the risks related to their employment, the right to report workplace hazards to OSHA, and the right to be shielded from retribution for exercising OSHA-protected rights.
Elimination of all forms of forced or compulsory labor, effective outlawment of child labor, the elimination of employment and occupation-based discrimination, the right to associational freedom, and.
Thus, it is wages and hours.
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A production department's output for the most recent month consisted of 12,500 units completed and transferred to the next stage of production and 12,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 65% complete with respect to both direct materials and conversion costs. There were 1,500 units in beginning Work in Process inventory, and they were 85% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Answer:
20,625 units
Explanation:
Calculation for the equivalent units of production
Using this formula
Equivalent units of production=Units completed+Ending work in process inventory
Let plug in the formula
Equivalent units of production=12,500+(12,500×65%)
Equivalent units of production=12,500+8,125
Equivalent units of production=20,625 units
Therefore the equivalent units of production for the month is 20,625 units.
Suppose that the experiment to toss a balanced coin three times independently. Define the following events
• A is the event of getting at least one head
• B is the event of getting exactly two heads and one tail
• C is the event of getting all three coins with the same side
Please answer I have exam tomorrow and I don’t know how I answer
Answer:
Probability = 7/9
Probability = 3/9
Probability = 2/9
Explanation:
Total probability = 2³ = 9
Computation:
A is the event of getting at least one head
Probability = Event of getting at least one head / Total event
Probability = 7/9
B is the event of getting exactly two heads and one tail
Probability = 3/9
C is the event of getting all three coins with the same side
Probability = 2/9
Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Venn diagram, the separate circles contain characteristics unique to each item being compared and the intersection contains characteristics that are common to both items being compared. This is the Venn diagram that Shirine creates:
Which accurately labels the titles in Shirine's diagram?
A) Title 1 should be Investment Career Pathway, and Title 2 should be Banking Career Pathway
B) Title 1 should be Banking Career Pathway, and Title 2 should be Investment Career Pathway
C) Title 1 should be Banking Career Pathway, and Title 2 should be Financial Career Pathway
D) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Answer:
Explanation:
The answer is C.Title 1 should be Banking Career Pathway, and Title 2 should be financial management Career Pathway.
Answer:
C
Explanation:
Just did the test like 20 minutes ago
Joey realizes that he has charged too much on his credit card and has racked up $5,200 in debt. If he can pay $175 each month and the card charges 15 percent APR (compounded monthly), how long will it take him to pay off the debt
Answer:
it will take approximately 37.38 months to pay off the debt.
Explanation:
This can be calculated using the formula for calculating the present value (PV) of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value of the debt = $5,200
P = monthly repayment = $175
r = monthly APR = 15% / 12 = 0.15 / 12 = 0.0125
n = number of months required to pay off the debt = ?
Substitute the values into equation (1) and solve for n, we have:
$5,200 = $175 * ((1 - (1 / (1 + 0.0125))^n) / 0.0125)
$5,200 / $175 = (1 - (1 / 1.0125)^n) / 0.0125
29.7142857142857 = (1 - 0.987654320987654^n) / 0.0125
29.7142857142857 * 0.0125 = 1 - 0.987654320987654^n
0.371428571428571 = 1 - 0.987654320987654^n
0.987654320987654^n = 1 - 0.371428571428571
0.987654320987654^n = 0.628571428571429
Loglinearlizing both sides and solving for n, we have:
n log(0.987654320987654) = log(0.628571428571429)
n = log(0.628571428571429) / log(0.987654320987654)
n = -0.201645363528069 / -0.00539503188670629
n = 37.38
Therefore, it will take approximately 37.38 months to pay off the debt.
At Bargain Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 3,180 units at $26 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Reject Accept Net Income
Order Order Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income
Answer and Explanation:
The computation is shown below:
Particulares Reject accept increase
order order (decrease)
Revenues 0 $82,680 $82,680
(3,180 × $26)
Cost- manufacturing 0 -$60,420 -$60420
(3,180 × $26)
shipping 0 -$12,720 -$12,720
(3,180 × $4)
net income 0 $9,540 $9,540
Therefore the special order is accepted
Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $22,300
Trademarks 12,700
Discount on bonds payable 35,300
Deposits with advertising
agency for ads to promote
goodwill of company 10,300
Excess of cost over fair
value of net identifiable
assets of acquired subsidiary 75,300
Cost of equipment acquired for
research and development projects;
the equipment has an alternative future use 85,300
Costs of developing a secret formula for a
product that is expected to be marketed for
at least 20 years 79,600
On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.
Answer:
$88,000
Explanation:
Computation of the total amount to be reported as intangible assets on its balance sheet
Using this formula
Total amount to be reported as intangible assets = Trademarks + Excess of cost over fair value of net assets of acquired subsidiary
Let plug in the formula
Total amount to be reported as intangible assets = $12,700 + $75,300
Total amount to be reported as intangible assets = $88,000
Therefore the total amount to be reported as intangible assets on its balance sheet bat year end will be $88,000
El Centro Company began the year with owner's equity of $30000. During the year, El Centro received additional owner
investments of $42000 recorded expenses of $120000, and had owner drawings of $8000. If El Centro's ending owner's equity was
$112000, what was the company's revenue for the year?
Answer:
$168,000
Explanation:
Equity = Assets - liabilities.
In the case of El Centro, the increase in equity will be a result of profits or losses realized in the year. Since equity increased to $112,000, then revenue for the period will be determined as follows.
$112,000 = (30,000 + 42,000)( equity) + revenue -( 120,000+ 8,000) expenses
$112,000 = $72,000 + revenue - $128,000
$112,000 = -56,000 + revenue
Revenue = 112,000 + 56,000
Revenue =$168,000
Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data.
Rounded Edge Squared Edge Total
Direct materials $ 9,500 $ 21,600 $ 31,100
Direct labor 6,200 11,800 18,000
Overhead (300% of direct labor cost) 18,600 35,400 54,000
Total cost $ 34,300 $ 68,800 $ 103,100
Quantity produced 10,500 ft. 14,000 ft.
Average cost per ft. (rounded) $ 3.27 $ 4.91
Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information.
Overhead Cost Category (Activity Cost Pool) Cost
Supervision $ 2,160
Depreciation of machinery 28,840
Assembly line preparation 23,000
Total overhead $ 54,000
She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)
Usage
Overhead Cost Category (Activity Cost Pool) Driver Rounded Edge Squared Edge Total
Supervision Direct labor cost ($) $ 6,200 $ 11,800 $ 18,000
Depreciation of machinery Machine hours 400 hours 800 hours 1,200 hours
Assembly line preparation Setups (number) 32 times 93 times 125 times
Required:
Use this information to (1) assign these three overhead cost pools to each of the two products using ABC, (2) determine average cost per foot for each of the two products using ABC, and (3) compare the average cost per foot under ABC with the average cost per foot under the current method for each product. For part 3, explain why a difference between the two cost allocation methods exists.
Answer:
Overhead Cost Category (Activity Cost Pool) Cost
Supervision $2,160
Depreciation of machinery $28,840
Assembly line preparation $23,000
Total overhead $54,000
Supervision
Direct labor cost ($) $6,200 $11,800 $18,000
Depreciation of machinery
Machine hours 400 hours 800 hours 1,200 hours
Assembly line preparation Setups (number)
32 times 93 times 125 times
1)
overhead costs assigned to Rounded Edge
supervision = $2,160 x ($6,200 / $18,000) = $744
depreciation = $28,840 x (400 / 1,200) = $9,613
assembly line preparation = $23,000 x (32/125) = $5,888
total overhead costs = $16,245
overhead costs assigned to Squared Edge
total overhead costs = $54,000 - $16,245 = $37,755
2)
total costs assigned to Rounded Edge
materials $9,500
direct labor $6,200
overhead $16,245
total $31,945
cost per foot = $31,945 / 10,500 = $3.0424 per foot
total costs assigned to Squared Edge
materials $21,600
direct labor $11,800
overhead $37,755
total $71,155
cost per foot = $71,155 / 14,000 = $5.0825 per foot
3) The average cost per foot of Rounded Edge decreased because lower overhead costs were allocated to their production.
The average cost per foot of Squared Edge increased because higher overhead costs were allocated to their production.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 45,500 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $819,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 57,330 games next year (an increase of 11,830 games, or 26%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year
Answer:
1.a. Magic Realm
Income Statement
For the year ended December 31, 202x
Sales revenue $2,957,500
Variable costs ($2,047,500)
Contribution margin $910,000
Period costs ($819,000)
Operating income $91,000
1.b. degree of operating leverage = contribution margin / operating income = $910,000 / $91,000 = 10
2.a. a 26% increase in net sales should increase operating income by 26% x 10 (operating leverage) = 260%
total operating income for next year = $91,000 + ($91,000 x 260%) = $327,600
GDP is calculated as the total market value of all final goods and services produced in a country during a year. (1) Suppose that in 2019, geologists discover large reserves of oil in Alaska which have a market value estimated at $50 billion at current oil prices. (2) Oil companies rush in and spend $1 billion to hire workers and position equipment to begin exploratory pumping during the same year. (3) One company accidentally spills some oil into a bay and by the end of the year pays $1 billion to other companies to clean it up. (4) The oil spill kills thousands of birds, seals, and other wildlife. What would be the effect of each of these 4 events on the US GDP for 2019 and why
Answer:
$2 billion
The amounts that would be included in GDP include the cost of hiring workers and the cost of cleaning up the spill.
1 billion + 1 billion = $2 billion
The negative effects of the oil spill would not be included in GDP because effects of population is not included in GDP.
Also, the value of the oil discovered would not be included in GDP because it was not sold in the current year.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
services not rendered to oneself
Activities not reported to the government
illegal activities
sale or purchase of used products
sale or purchase of intermediate products
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Pacific Independent School District issued $100 million of general obligation bonds to finance the construction of new schools. The bonds were issued at a premium of $0.6 million. Prepare the capital projects fund journal entries to record the issue of the bonds and the transfer of the premium to an appropriate fund. Suppose, instead, that the bonds were issued at a discount of $0.6 million but that the project will still cost $100 million. Prepare the appropriate entries. Contrast the entries in this part with those in part 1. Indicate the options available to the school district, and state how they would affect the entries required of the district. Suppose that the government chose to finance the balance of the project with general revenues. Prepare the appropriate capital projects fund entry.
Answer:
1. Dr Cash$100,600,000
Cr Bond proceeds (Face value amount )$100,000,000
Cr Bond proceeds (Bond premium amount )$600,000
Dr Nonreciprocal transfer of bond premium to debt service fund $600,000
Cr Due to debt service fund/Cash $600,000
2a. In a situation where bonds are been issued out at a discount the debt services will have unavailable resources to send to the capital project fund.
2b. Both Bonds premiums as well as discount will tend to be an issue reason been that the uncertainly of the amount of cash that are in excess will have to be disposed off as well as the ways of compensating for cash deficiency
3. Dr Due from the general fund $600,000
Cr Other financing use- nonreciprocal Transfer from the general fund $600,000
Explanation:
1.Preparation of the capital projects fund journal entries
Dr Cash$100,600,000
($100,000,000+$600,000)
Cr Bond proceeds (Face value amount)$100,000,000
Cr Bond proceeds (Bond premium amount)$600,000
(To record issuance of bonds sold at a premium)
Dr Nonreciprocal transfer of bond premium to debt service fund $600,000
Cr Due to debt service fund/Cash $600,000
(To record the premium payable to the debt service fund)
2. Preparation of the Journal entries.
suppose the bonds were issued at a discount of $0.6 million in which the project will still cost $100 million.
Dr Cash $994,000,000
($100,000,000-$600,000)
Cr Other financing sources-bond proceeds(Bond discount)$600,000
Dr Other financing sources-bond proceeds(Face value)$100,000,000
(To record the issue of bonds at a discount)
2a. When Contrasting the Journal entries in this part with those in part 1 this means that in a situation where bonds are been issued out at discount the debt services will have unavailable resources to send to the capital project fund.
2b. The options that are available to the school district and how they would affect the entrees required of the district is that both Bonds premiums as well as discount will tend to be an issue reason been that the uncertainly of the amount of cash that are in excess will have to be disposed off as well as the the ways of compensating for cash deficiency
c. Preparation of the appropriate capital projects fund Jounal entry
Dr Due from the general fund$600,000
Cr Other financing use- nonreciprocal Transfer from the general fund $600,000
Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1). (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.)
Investment A1
Initial investment $(350,000)
Expected net cash flows in the year (excluding salvage value):
1 $130,000
2 $136,000
3 $123,000
Required:
Compute these investment's net present value.
Net Cash Flows Present Value of 1 Present Value of Net Cash Flows
Year1
Year 2 0.7972
Year 3
Totals $0 $0
Amount invested
Net present value $0
Answer:
-$37,952.40
Explanation:
The computation of the net present value is shown below:
Particulars Cash flows Discount factor at 12% Present value
Year 1 $130,000 0.8929 $116,077
Year 2 $136,000 0.7972 $108,419.20
Year 3 $123,000 0.7118 $87,551.40
Amount
invested ($350,000) 1 ($350,000)
Net present value -$37,952.40
eck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 10,300 Purchases 47,500 Avail. for use 57,800 DM used 51,000 End. Inv. 6,800 Work in Process Inventory Begin. Inv. 17,000 DM used 51,000 Direct labor 34,500 Overhead 64,000 Manuf. costs 166,500 Cost of goods manuf. 153,000 End. Inv. 13,500 Finished Goods Inventory Begin. Inv. 20,200 Cost of goods manuf. 153,000 Avail. for sale 173,200 Cost of Goods Sold 152,300 End. Inv. 20,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
A.$153,000
B.152,300
Explanation:
A. Preparation for the schedule of cost of goods manufactured for the year
Schedule cost of goods manufactured
Direct material 51,000
Direct labor 34,500
Overhead 64,000
Total manufacturing cost 149,500
Beginning work in process 17,000
Total Cost of work in process 166,500
Less: Ending work in process (13,500)
Cost of goods manufactured $153,000
(166,500-13,500)
B. Computation for cost of goods sold for the year.
Schedule of cost of goods sold
Beginning finished goods 20,200
Cost of goods manufactured 153,000
Cost of goods available for sale 173,200
(153,000+20,200)
Less; Ending finished goods (20,900)
Cost of goods sold $152,300
(173,200-20,900)
Therefore the schedule of cost of goods manufactured for the year will be $153,000 while the cost of goods sold for the year will be $152,300
What is considered a liability in finance and why is it being used?
A liability is something a person or company owes, usually a sum of money. ... In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date
Answer:
A liability is something a person or company owes, usually a sum of money. In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date.
Explanation:
g A company is evaluating a project requiring an initial cash outflow of $2 million. The investment will generate cash flows for a period of 5 years. If the firm launches the project immediately, then the after-tax cash flows will be $1 million per year. Alternatively, if the firm delays the launch by one year, then there is a 65% likelihood that the annual after-tax cash flows will be $1.5 million and a 35% likelihood that they will be $500,000. Using a discount rate of 10%, what is the value of the option to wait
Answer:
Explanation:
NPV of first option = - 2 + 1 / 1.1 + 1 / 1.1² + 1 / 1.1³ + 1 / 1.1⁴ + 1 / 1.1⁵
= -2 + .909 + .826+ .751+.683+ .620 = $1.789
NPV of the second option :--
NPV when annual cash flow is 1.5 million
-2 / 1.1 + 1.5 /1.1² + 1.5/1.1³ + 1.5 / 1.1⁴ + 1.5 / 1.1⁵ + 1.5 / 1.1⁶
= -1.818 + 1.239 + 1.127+1.024+.931+.846
= -1.818 + 5.167
= 3.349
NPV when annual cash flow is 0.5 million
-2 / 1.1 + .5 /1.1² + .5/1.1³ + .5 / 1.1⁴ + .5 / 1.1⁵ + .5 / 1.1⁶
= - 1.818 + 1.722 = $ -0 .096
NPV = .65 x 3.349 - .35 x .096
= 2.177 - .0336
= $2.1434
value of option wait = $2.1434 - $1.789
= $ 0.3544
onald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2019: Real estate taxes $1,800 Mortgage interest 1,600 Utilities 1,200 Repairs (first floor) 1,400 Painting (second floor) 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)
Answer:
$3,300
Explanation:
The computation of the total amount of the expenses is shown below:-
Total amount of the expense = Real estate taxes + Mortgage interest + Utilities + Repairs + Paintings + Repairing
= ($1,800 ÷ 2) + ($1,600 ÷ 2) + ($1,200 ÷ 2) + 0 + ($2,000 ÷ 2)
= $900 + $800 + $600 + $0 + $1,000
= $3,300
So, we have applied the above formula.
Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2015 a customer asked Beloit to quote a price for a custom-designed doughnut machine to be delivered by the end of 2015. Once purchased, the customer intends to place the machine in service in January 2016 and will use it for four years. The expected annual operating net cash flow is estimated to be $120,000. The expected salvage value of the equipment at the end of four years is about 10% of the initial purchase price. To expect a 15% required rate of return on investment, what would be the maximum amount that should be spent on purchasing the doughnut machine
Answer:
$363,375.20
Explanation:
initial outlay = X
useful life = 4 years
salvage value = 0.1X
NCF years 1 - 4 = $120,000
discount rate = 15%
NPV = 0
X = $120,000/1.15 + $120,000/1.15² + $120,000/1.15³ + ($120,000 + 0.1X)/1.15⁴ =
X = $104,347.83 + $90,737.24 + $78,901.95 + $68,610.39 + 0.05718X
X = $342,597.41 + 0.05718X
0.94282X = $342,597.41
X = $342,597.41 / 0.94282 = $363,375.20
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $40 million at the end of 2022. Taxable income is $200 million. Prepare the appropriate journal entry to record income taxes in 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Answer:
Journal Entries - Ryan Management (In millions)
Date Particulars and Explanation Debit Credit
31-Dec-22 Income tax expense $ 52.5
To Income tax payable $50.0
($200 * 25%)
To Deferred tax asset $2.5
[($50 - $40)*25%]
(To record income tax expense and reversal of DTA)
How does the format of a memo differ from that of an e-mail? please answer asap
(high school not collage)
Memos use an indirect opening instead of a direct opening.
Memos omit a closing signature.
Memos include a subject
Answer: Memos omit a closing signature.
(I took the test and this was the answer)
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430. Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430.Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.Sydney pays Troy for the amount owed. Troy receives the cash immediately.
#2 - You are organizing an exploratory meeting with engineering representatives from a dozen manufacturers from around the world to discuss updates to a technical standard that all the companies' products must adhere to. The representatives have a wide range of firmly held opinions on the subject because the changes could help some companies and hurt others. They can't even agree on what should be addressed in the first meeting, so you need to develop a minimum level of consensus on what should be on the agenda. Which combination of media and channels would you use to move the conversation forward and finalize the agenda? Each company has one representative, and any discussions need to be kept confidential. PreviousNext
Answer:
Written media and digital channel
Explanation:
In the stated problem been faced by the organizing committee or the convener of the meeting, the best combination of media and channel would be the use of written media and Digital channel.
This combination is the best because in the use of written media the ideas about the updates to a technical standards would be better represented and the advantages and disadvantages can also be highlighted clearly for the various representative to study and come to a consensus as well.
The digital channel is the best channel because it provides more security to data and easy access as well.
note : every confidential document must as well be written and stored using a digital channel hence the above choice.
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $28,300 of the total joint costs of $49,000. A total of 2,300 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,300 and then sold for $14 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Answer:
Gain from selling at the split-off point = $12 * 2,300
Gain from selling at the split-off point = $27,600
Gain from Processing further = $14 * 2,300 - Processing cost ($10,300)
Gain from Processing further = $ 32,200 - $10,300
Gain from Processing further = $21,900
Overall profit
= $27,600 - $21,900
= $5,700 (Decrease in overall profit )
Hence, if product QI is processed further and sold, then overall profit will be decreased by $5,700
Andrew lives in New York City and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer, a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also if Andrew does not operate this boat business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom a the $15,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Andrew's costs in the following table as either an implicit cost or an explicit cost of selling boats.
Implicit Cost Explicit Cost
The wages and utility bills that Andrew pays
The rental income Andrew could receive if he choose to rent out his showroom
The salary Andrew could earn if he worked as a financial advisor
The wholesale cost for the boats that Andrew pays the manufacturer
Complete the following table by determining Andrew's accounting profit of his boat business.
Profit (Dollars)
Accounting Profit
Economic Profit
Answer:
the solutions are below.
Explanation:
1. The wages and utility bills that Andrew pays is explicit cost
2. The rental income Andrew could receive if he choose to rent out his showroom is implicit cost
3. The salary Andrew could earn if he worked as a financial advisor s an implicit cost
4. The wholesale cost for the boats that Andrew pays the manufacturer is an explicit cost.
accounting profit = revenue - explicit cost
= 793000-[430000+301000]
=$62000
Economic profit = revenune - [explicit cost + implicit cost]
= 793000-[430000+301000+50000+15000]
= 793000-796000
= -$3000
Tamarisk, Inc. began operations on April 1 by issuing 51,000 shares of $4 par value common stock for cash at $20 per share. On April 19, it issued 2,000 shares of common stock to attorneys in settlement of their bill of $26,300 for organization costs. In addition, Tamarisk issued 900 shares of $2 par value preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.
Answer:
Tamarisk, Inc.
Journal Entries:
April 1:
Debit Cash Account $1,020,000
Credit Common Stock $204,000
Credit Paid-in Capital In Excess $816,000
To record the issue of 51,000 $4 par value common stock shares at $20 per share.
April 19:
Debit Organization Expense $26,300
Credit Common Stock $8,000
Credit Paid-in Capital In Excess - Common Stock $18,300
To record the issue of 2,000 shares in settlement of attorneys' organization costs.
April 19:
Debit Cash Account $5,400
Credit Preferred Stock $1,800
Credit Paid-in Capital In Excess -Preferred Stock $3,600
To record the issue of 900 shares of $2 par value preferred stock for $6 cash.
Explanation:
Tamarisk, Inc. uses the general journal entries to record business transactions as they occur on a daily basis. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $708,050 $1,155,000 Estimated direct labor hours for year 15,400 Estimated machine hours for year 20,230 Actual factory overhead costs for March $56,680 $100,080 Actual direct labor hours for March 1,390 Actual machine hours for March 1,580 a. Determine the factory overhead rate for Factory 1. $ per machine hour b. Determine the factory overhead rate for Factory 2. $ per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $ Factory 2 $
Answer:
The answer to this question can be defined as follows:
Explanation:
In point a:
[tex]\text{Factory Overhead Rate 1} = \frac{\text{Expected administrative overhead to factory}}{\text{Estimated period time to machine}}[/tex]
[tex]=\frac{12900000}{ 600000 }\\\\ = \$ \ 21.50[/tex]
In point b:
[tex]\text{Factory overtime rate 1} = \frac{\text{overhead costs estimated expense}}{\text{Specific hours of work estimated for the year}}[/tex]
[tex]= \frac{10,200,000 }{250000} \\\\ = \$ \ 40.80[/tex]
In point c:
Daily paper
Number Name of account Debit Credit
1. Working [tex](610000 \times $21.50)[/tex] [tex]\$ \ 13115000[/tex]
Plant Overhead [tex]\$ \ 13115000[/tex]
2. Job under way [tex](245000\times $40.80)[/tex] [tex]\$ \ 9996000[/tex]
Overhead plant [tex]\$ \ 9996000[/tex]
In point d:
[tex]\text{Factory 1} = 12,990,000 - 13,115,000[/tex]
[tex]= 125000 \ Overapplied\ credit[/tex]
[tex]\text{Factory 1} = 10,090,000 - 9,996,000[/tex]
[tex]= $94000 \ Underapplied \ Debit[/tex]
whats your purpose of living?
Answer:
you can you know the purpose of living when you know the meaning of living