Answer:
Date Account titles and Explanations Debit Credit
31 Dec Bad debts expense $5,000
Allowance for uncollectible accounts $5,000
(To record bad debts expense recorded)
5 Mar Allowance for uncollectible accounts $1,200
Accounts receivable $1,200
(To record account written off)
and Associates, a law firm, paid $30000 for 12 months' rent in advance on October 1 of the current year. The company's fiscal year-end is December 31. Prepare the journal entries for the rent payment on October 1 and the necessary adjusting journal entry on December 31. Omit explanations
Answer and Explanation:
The journal entries are shown below:
On Oct 1
Rent expense Dr $30,000
to cash $30,000
(being cash paid)
Here rent expense is debited as it increased the expense and credited the cash as it decreased the assets
On Dec 31
Rent expense Dr ($30,000 × 9 ÷ 12) $22,500
To prepaid rent $22,500
(being rent expense is recorded)
Here ent expense is debited as it increased the expense and credited the prepaid rent as it decreased the assets
The balance in a company's Cash account on August 31 was $18,800 before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found: Checks outstanding $ 3,300 NSF check 110 Note collected by bank for the Colt Company 1,650 Deposits outstanding 2,800 Bank service fees 220 What is the amount of cash that should be reported in the balance sheet as of August 31
Answer:
$20,340
Explanation:
The amount of cash to be recognize is the adjusted amount after considering the transactions that were omitted from the bank statement and cash book and properly recognizing the erroneous entries into the two books.
Considering the reconciling items,
Checks outstanding $ 3,300 - This has been recognized in the company's Cash account and as such need no adjustment in the company's books
NSF check 110 - This has been deducted from the company's cash book but was not honored by the bank as such, it will be added back to the company's cash book balance
Note collected by bank for the Colt Company 1,650 - This has been recognized by the bank and as such will be added to the company's cash book balance
Deposits outstanding 2,800 - This has been recognized in the company's Cash account and as such need no adjustment in the company's books.
Bank service fees 220 - This has been recognized by the bank and as such will be deducted as a charge to the company's cash book balance
Hence the amount of cash that should be reported in the balance sheet as of August 31 will be
= $18,800 + $110 + $1650 - $220
= $20,340
An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called: Customer orientation. Continuous improvement. Total quality management. Just-in-time manufacturing. Theory of constraints.
Answer:
Just-in-time manufacturing
Explanation:
just-in-time manufacturing can be regarded as Lean manufacturing
a production method that helps in
reduction of times within the production system and reduction in
response times from suppliers as well to to customers. It should be noted that the approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called Just-in-time manufacturing.
Technology: Multiple Choice Has replaced accounting. Has not improved the clerical accuracy of accounting. Reduces the time, effort and cost of recordkeeping. In accounting has replaced the need for decision makers. In accounting is only available to large corporations.
Answer:
Reduces the time, effort and cost of recordkeeping.
Explanation:
Advantages of technology in accounting
It has improved the clerical accuracy of accounting. The errors made have reduced. It reduces the time, effort and cost of recordkeeping.It has reduced the reliability of accounting information generated because of increased accuracyDespite the advantages of technology in accounting, technology is yet to replace man as decision makers because man is still needed to interpret the data generated by technology and take appropriate actions based on the interpretation of the generated data
Machinery was purchased for $340,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $60,000 salvage value at the end of its 5-year useful life. Annual depreciation expense using the straight-line method will be a. $78,800. b. $57,200. c. $66,800. d. $56,000.
Answer:
$66,800
Explanation:
Depreciation is used in expensing the cost of an asset
Depreciation reduces the value of an asset
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost = $340,000. + $14,000 + $40,000 = $394,000
($394,000 - $60,000) / 5 = $66,800
application of the principle of comparative advantage leads to
Answer:
proper allocation of time and resources.
Explanation:
Fair and successful trade.
Doanh nghiệp được trích trước tiền lương nghỉ phép của toàn bộ người lao động trong công ty. Đung hay sai
Answer:
sai
Explanation:
Answer:
Explanation:
Đúng
If the average annual rate of return for common stocks is 11.7 percent, and 4.0 percent for U.S. Treasury bills, what is the average market risk premium?
Answer:
7.7%
Explanation:
Risk premium is the return an investor would want for holding a risky bond. It is the excess return earned over holding a risk free bond
Risk premium = return on risky asset - return on U.S. Treasury bills
The U.S. Treasury bills is considered to be risk free because the US government cannot default
On the other hands, stocks are risky because companies can default on payment of dividends due to various reasons e.g. insolvency
11.7 - 4 = 7.7%
On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥2,915 per share on Monday, June 6, 2016. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the ¥/$ exchange rate was ¥107.65/$1.00. (Round your answer to 2 decimal places.) At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?
Answer:
$27.08
Explanation:
Calculation to determine the no-arbitrage U.S. dollar price of one ADR
Using this formula
No-arbitrage U.S. dollar price of one ADR=Stock closed per share /Exchange rate
Let plug in the formula
No-arbitrage U.S. dollar price of one ADR=¥2,915 / ¥107.65
No-arbitrage U.S. dollar price of one ADR=$27.078
No-arbitrage U.S. dollar price of one ADR=$27.08 (Approximately)
Therefore the no-arbitrage U.S. dollar price of one ADR is $27.08
Components of the master budget are the operating budget, the capital expenditures budget, and the financial budget. Group of answer choices True False
Answer: True
Explanation:
A master budget refers to the lower-level budgets that is within an organization, and the financial plan, the cash flow forecasts, and the budgeted financial statements.
The master budget consists of three main components which are the operating budget, financial budget and the capital expenditures budget.
Therefore, the statement is true.
Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the revised equity beta for Zonk based on the new capital structure.
Answer: 4.35
Explanation:
The revised equity beta for Zonk based on the new capital structure will be gotten as follows:
= 1.13 × [1 + (1 - 35%)][70% /30%]
= 1.13 × [1+(1-0.35)][0.70/0.30]
= 1.13 × [1 + 0.65][2.33]
= 1.13 × (1.65)(2.33)
= 4.35
Therefore, the revised equity beta for Zonk is 4.35.
As part of a strategic planning process, Midwest Power's senior executives determined positive findings from their SWOT analysis: (1) New regulations will
provide tax credits for renewable ("green") power sources. (2) Their customers will pay higher prices for green power. (3) A competing power utility that
owns renewable power sources is struggling and might be a target to be acquired by Midwest Power. (4) As compared to their competitors, Midwest
Power's management team is one of the best in the industry. A strength of Midwest Power, per the SWOT analysis, is that
Answer:
4) As compared to their competitors, Midwest Power's management team is one of the best in the industry.
Explanation:
The strategic planning process is a documentation that establishes a direction for the small business by assenting where you are asserts the mission and mission along with the long term goals.If the price of oil, a close substitute for coal, increases then:
a. the demand curve for coal will shift to the right.
b. equilibrium price and quantity of coal will not change.
c. supply curve for coal will shift to the right.
d. demand curve for coal will shift to the left.
e. supply curve of coal will shift to the left.
Answer:
A
Explanation:
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
If the price of oil increases, it becomes cheaper to buy coal. As a result, there would be a rightward shift of the demand curve for coal. As a result, the equilibrium price and quantity would increase
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt=rS, where r is the annual rate of interest.
a) Find the amount of money accrued at the end of 5 years when $6000 is deposited in a savings account drawing 534% annual interest compounded continuously. (Round your answer to the nearest cent.)
b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
c) Use a calculator to compare the amount obtained in part a) with the amount S=6000(1+14(0.0575))5(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
Answer:
See explanation
Explanation:
Given that;
A = P(1 + r/n)^nt
Where;
P= $6000
r = 5 3/4%
t = 5 years
n= 1
A = 6000(1 + 0.0575)^5
A= $ 7935
b) What time will A become $12,000
12000 = 6000(1 + 0.0575)^t
12000/6000 = (1 + 0.0575)^t
2 = (1 + 0.0575)^t
Take logarithm of both sides
log2 = t log(1 + 0.0575)
t= log2/log(1 + 0.0575)
t= 0.3010/0.0243
t = 12 years
c) when compounded quarterly;
S= 6000(1 + 1/4(0.0575))^(5)(4)
S= $7982
The amount when interest is compounded quarterly is higher than when it is compounded annually because the interest increases as the number of compounding periods increases.
Various financial data for the past two years follow. LAST YEAR THIS YEAR Output: Sales $ 200,200 $ 202,000 Input: Labor 30,005 40,005 Raw materials 34,500 44,500 Energy 5,000 6,100 Capital 48,990 48,990 Other 2,000 3,005 a. Calculate the total productivity measure for this company for both years.
Answer:
The total productivity measures for this company for both years are:
LAST YEAR THIS YEAR
Total productivity 1.66 1.42
Explanation:
a) Data and Calculations:
LAST YEAR THIS YEAR
Output: Sales $ 200,200 $ 202,000
Input: Labor 30,005 40,005
Raw materials 34,500 44,500
Energy 5,000 6,100
Capital 48,990 48,990
Other 2,000 3,000
Total input 120,495 142,595
Total productivity = Output/Input
= $ 200,200/120,495 $ 202,000/142,595
= 1.66 1.42
A machine costing $56,894 with a 6-year life and $51,236 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.
Answer:
$8539
Explanation:
Depreciation is a method of expensing the cost of an asset.
Yearly deprecation expense =depreciable cost / useful life
depreciable cost = cost of the machine - salvage value
51,236 / 6 = $8539.33
8539
To round off to the nearest dollar, look at the first number after the decimal, if it is less than 5, add zero to the units term, If it is equal or greater than 5, add 1 to the units term.
Over the last two decades the reduced importance of certain institutions in the primary mortgage market has been largely offset by an expanded role for others. Which has diminished, and which has expanded
Answer:
Thrifts role have decreased whereas, mortgage and commercial banks roles have increased.
Explanation:
In simple words, Credit unions and cooperative savings banks are examples of thrifts that offer a multitude of deposits and lending services. Thrifts are different from conventional institutions in that organizations may draw money through the Federal Home Loan Bank Network, allowing them to charge greater interest to its members.
The ease of doing business and less documentation with commercial banks promoted their growth.
After examining the records of Theta Company for the month of October, the following information is obtained: Beginning cash balance $2,700 Cash receipts 56,000 Cash payments 36,000 Minimum cash balance 1,000 Loan repayments 10,000 Based on the given information, calculate Theta's cash surplus (deficiency) for the month of October.
Answer:
the surplus of the cash is $21,000
Explanation:
The computation of the cash surplus (deficiency) for the month of October is given below:
Cash surplus is
= opening balance + cash receipt - cash payment - minimum cash balance
= $2,700 + $56,000 - $36,000 - $1,000
= $21,000
hence, the surplus of the cash is $21,000
In the short run, open-market purchases a. increase investment and real GDP, and decrease interest rates. b. increase real GDP and interest rates, and decrease investment. c. increase investment and interest rates, and decrease real GDP. d. decrease investment, interest rates, and real GDP.
Answer: a. increase investment and real GDP, and decrease interest rates.
Explanation:
During an Open Market Purchase, the central bank of the country would be buying back securities from the public which means that it would be infusing money into the economic system.
With an increased amount of money in the economy, people will be able to save more which means that interests rate will drop because there are now more loanable funds. This drop in interest rates will encourage more companies and people to borrow cash for investment which will then lead to a higher GDP.
In the short run, in the open-market purchase, there has been an increase in investment and real GDP and decreased interest rates. Thus option A is correct.
The interest rate has been the amount of interest lent onto the principal sum. The GDP has been the gross domestic product that has been the market value of the final products.
In the open-market purchase, there has been an increase in the amount of money in the market. The government has been buying the securities and results in the market flow of money. The market flow will eventually result in an increase in the GDP with the decreased interest rates.
Thus in the short run, in the open-market purchase, there has been an increase in investment and real GDP and decreased interest rates. Thus option A is correct.
For more information about the open market purchase, refer to the link:
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At the beginning of the year, a company had accounts receivable of $700,000 and an allowance for doubtful accounts with a credit balance of $60,000. During the current year, sales on account were $195,000 and collections on account were $115,000. Also during the current year, the company wrote off $11,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $72,000 credit balance so the company records the appropriate year-end adjusting entry. How much did the cash realizable value change during the current year
Answer:
$77,000
Explanation:
Calculation to determine How much did the cash realizable value change during the current year
First step
Ending accounts receivables = Beginning accounts receivables + Sales on account - collections on account - Write offs
Ending accounts receivables = $700,000 + $195,000 - $95,000 - $11,000
Ending accounts receivables= $789,000
Second step
Ending cash realizable value = Ending accounts receivables - Ending allowance for doubtful accounts
Ending cash realizable value = $789,000 - $72,000
Ending cash realizable value= $717,000
Now let determine the Change in cash realizable value
Change in cash realizable value = Ending cash realizable value - Beginning cash realizable value
Change in cash realizable value= $717,000 - 640,000
Change in cash realizable value= $77,000
Therefore How much did the cash realizable value change during the current year will be $77,000
Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $42,000 was purchased on September 1. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a five-year life. What is the total depreciation expense for the current year
Answer: $2,533.33
Explanation:
First you need to calculate the annual depreciation:
= (Cost of asset - Salvage value) / Useful life
= (42,000 - 4,000) / 5
= 38,000 / 5
= $7,600
The asset was bought on September 1 and needs to be depreciated for the months of the year it was in the business. That would be September to December which is 4 months.
Depreciation for that year is:
= 7,600 * 4/12 months
= $2,533.33
Company A produces paper and sells it to Company B for a total of $183. Company B uses the paper to make books and then sells the books to consumers for a total of $342.What is the value of GDP in this simple economy?
Answer:
$159
Explanation:
Value = cost of books - cost of paper
342 - 183 = 159
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
the cost of paper is not included because it is an intermediate good and not a final good.
An intermediate good is a good that is used in the production of the final good.
If it is added to GDP, it would result in double counting
The value of GDP in this simple economy is $159.
A 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
The formula for GDP is Consumption spending by households + Investment spending by businesses + Government spending + Net export
Note that "the cost of paper is not included because it is an intermediate good and not a final good and an intermediate good is a good that is used in the production of the final good"
The value of GDP = Cost of books - Cost of paper
The value of GDP = 342 - 183
The value of GDP = 159
In conclusion, the value of GDP in this simple economy is $159.
Read more about gross domestic product
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You discover that many consumers want easy access to pens in their cars, so you decide to produce a steering wheel that has a pen tucked inside that can conveniently pop out whenever someone needs it. The steering wheels become very popular with car companies. Developing this product is an example of what
Answer: c. Allocative efficiency
Explanation:
When an economy is experiencing allocative efficiency, it means that goods in the economy are being produced according to consumer preferences. This means that if consumers want a certain good in a certain quantity, the economy will produce that good in that quantity.
This is the case here. You saw that consumers wanted a good and you went ahead and produced it therefore giving consumers what they wanted.
he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return
Answer:
16.74%
Explanation:
Current Price = Expected Dividend / (Required Return - Growth Rate)
Required Return = (Expected Dividend / Current Price) + Growth rate
Required Return = ($5.05 / $43) + 5%
Required Return = 0.1174419 + 0.05
Required Return = 0.1674419
Required Return = 16.74%
of $3.00 per unit. The variable cost to manufacture is $2.00 per unit. The monthly fixed costs are $8000. Its current sales are 29,000 units per month. If the company wants to increase its operating income by 20%, how many additional units must it sell
Answer: 33,200 units
Explanation:
Current operating income = Sales - Variable costs - fixed costs
= (29,000 * 3) - (29,000 * 2) - 8,000
= $21,000
An increase of 20% would be:
= 21,000 * 1.20
= $25,200
The number of units that must be sold is:
= (Fixed costs + Required profit) / Contribution margin
Contribution margin = Selling price - Variable cost
= 3 - 2
= $1
Number of units to be sold is:
= (8,000 + 25,200) / 1
= 33,200 units
Which of the following are wholesale and which are retail?
(a ) large-scale deposites made by Firms at negotiated rates of in interest. ...........(retail to wholesales)
(b) Loans made by high Street banks at published rates of interest........ (retail (wholesales)
(c) Deposite in savings accounts high street banks .................(retail /wholesales)
(d) Deposite in savings accounts in building Societies ............. (retail/Wholesale)
(e) Large-scale loans to industry syndicated through several banks........... (retail/ Wholesale)
E=whole sale
B=retail
D=retail
A=whole sale
C=whole sale
Draw a demand for dollars curve. Label it D. Draw a supply of dollars curve. Label it S. Draw a point at the equilibrium quantity and equilibrium exchange rate. Draw an arrow between the D and S curves that indicates a price at which there is a surplus of dollars. Label it. What happens in the foreign exchange market when a surplus of dollars exists? When there is a surplus of dollars in the foreign exchange market, _____
Answer:
The forces of demand and supply in the market will pull the foreign exchange market into equilibrium.
Explanation:
When there is a surplus of dollar in the foreign exchange market the forces of demand and supply will pull the foreign exchange market into equilibrium. i.e. The exchange rate will be reduced to bring the exchange market to equilibrium. without change in demand or supply.
attached below is the required graph.
Nissan has flexible agreements with its suppliers and transporters to accommodate unexpected surges in demand without disruptions in service or in customer satisfaction. This is an example of the _______ process.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Product development and commeercialization.
b) Supplier-relationship management.
c) manufacturing flow management.
d) Returns management.
The correct answer is the option B: Supplier-relationship management.
Explanation:
To begin with, in the business management field the concept known as "Supplier-relationship management" refers to the system used by the managers of a company with the purpose of improving the relationships specifically with the suppliers of it, therefore that it seeks for the better arrengements with them and how to develop better strategic ways of improving both parties benefits in their contracts. That is why that the SRM is focus on maximizing the value of the interactions between the company and its suppliers so therefore that the case presented by Nissan is related to the process of using an excellent SRM.
Gotiable sells straw hats for $24 each. The April inventory purchases are summarized below. Gotiable sold 142 hats at a hat festival on April 28. Units Cost each Dollars Beg. Inv. 84 3 252 April 2 75 4 300 April 14 66 7 462 April 23 52 8 416
Assume that Gotiable uses the average cost method for inventory costing.
1. What is the average cost of one hat? (Round to the nearest penny (2 decimal points)).
2. What will be the dollar value of the inventory on the April 30th balance Sheet? (Round to the nearest dollar)
3. What will Gotiable report as Gross margin for the hats for the month of April? (Round to the nearest dollar)
Answer and Explanation:
The computation is shown below:
1.
Particulars Units Unit Cost Dollars
Beg. Inv. 84 $3 $252
Apr-02 75 $4 $300
Apr-14 66 $7 $462
Apr-23 52 $8 $416
Total 277 $1,430
Average cost of one hat is
= Total cost of purchases ÷ Units purchased
= $1,430 ÷ 277 units
= $5.16
2.
Ending Inventory in Units = Units purchased - Units sold
= 277 units - 142 units
= 135 units
Now
Value of Ending Inventory = Units in Ending Inventory × Average cost per unit
= 135 units × $5.16
= $696.60
= $697
3
Gross Margin = Units sold × (Selling Price - Cost of goods sold)
= 142 units × ($24 - $5.16)
= $2,675.28
= $2,675
During a risk brainstorming session a team member identifies a risk. This particular risk does not seem to belong to any of the categories in you Risk Breakdown Structure (RBS). How should you respond
Answer:
Record it in the risk register, discuss potential responses and make a note to update the RBS.
Explanation:
Risk management is the process by which the management of an organisation identifies, assessed, and controls threats that may affect the company's capital or earnings.
The risks can be as a result of natural disasters, management error, financial uncertainty, or accidents.
In the given instance if a risk is not on any of the categories in you Risk Breakdown Structure (RBS), there is need to record it in the risk register, discuss potential responses and make a note to update the RBS.
