On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The market price of Michael Company's common stock was $75 per share on January 2, 2017. On the date of declaration, the retained earnings account should be decreased by
Answers
Answer:
the decrease in the value of the retained earning is $172,500
Explanation:
The computation of the decrease in the value of the retained earning is given below:
The dividend of the stock is
= (25,000 shares - 2,000 shares) × 10% × $75
= $172,500
Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500
Related Questions
The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments
Answers
Answer: $2,673
Explanation:
The amounts to be paid are constant so this is an annuity. The present value will therefore be the present value of an annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 3 periods, 6%
= 1,000 * 2.6730
= $2,673
Annual interest rate 4.00%
Loan Amount 4923275
Years 7
Grace Period 2 Years
Loan Period 5 Years
Total 7 Years
Project 1.5 years (development or initial investment period)
further 10 years of operation (life of the project)
Repayable in 5 equal installments.
I need figures for interest expense, interest paid, and principal repayment. Anyone can help me?
Answers
Answer:
formula is PRT÷10
Explanation:
so solve it
On January 2, 20X1, Ziegler Company issues a four-year note in exchange for a license agreement requiring four annual payments of $27,956. The market value of the four-year agreement is $100,000. The first payment is due on the day the agreement is signed. The effective interest rate is 8%. The second payment includes interest of:
Answers
Answer:
$5,763.52
Explanation:
1st payment is due on the day the agreement is signed.
The 2nd payment interest is computed as bellow:
=> ($100,000 - First payment) * 8%
=> ($100,000 - $27,956) * 8%
=> $72,044 * 8%
=> $5,763.52
So, the second payment includes interest of $5,763.52.
Which of the following are the best definitions of the decision variables? – finish time of activity , for – time to be crashed, i.e., saved, for activity ,for – start time of activity , for – time to be crashed, i.e., saved, for activity ,for – finish time of activity , for – start time of activity , for – start time of activity ,for – time finally used by activity i space, for i equals A comma B comma C comma D comma E comma F comma G comma H None of the above.
Answers
Answer:
None of the above.
Explanation:
A decision variable is a one that is not know in an optimization problem. The decision variable type is based on underlying optimizer of a model. The variable may decide the out-put.Jennifer is the sole beneficiary of an irrevocable trust created by her father. Income and principal may be distributed to her at the trustee's discretion. Jennifer has a 5-and-5 power of appointment over the trust. Jennifer died last month at which time the trust was valued at $2,500,000. She did not withdraw any money from the trust this year. How much of the trust was included in her estate at death
Answers
Answer:
$125,000
Explanation:
Calculation to determine How much of the trust was included in her estate at death
Since she has 5-and-5 power of appointment over the trust which means that she has the ability to withdraw the GREATER of 5% of fair market value (fmv) of the trust or the amount of $5,000.
Hence, the amount that was included in her estate at death will be $125,000 which is calculated as (5%*trust valued amount of $2,500,000)
Therefore How much of the trust was included in her estate at death is $125,000
A steam boiler is needed as part of the design of a new plant. The boiler can be fired by natural gas, fuel oil, or coal. A cost analysis shows that natural gas would be the cheapest at $30,000; for fuel oil it would be $55,000; and for coal it would be $180,000. If natural gas is used rather than fuel oil, the annual fuel cost will decrease by $7,500. If coal is used rather than fuel oil, the annual fuel cost will be $15,000 per year less. Assuming 8% interest, a 20-year analysis period, and no salvage value, which is the most economincal installation?
Answers
Answer:
Natural gas boiler
Explanation:
Alternative Installation cost Annual savings
natural gas $30,000 $7,500
fuel oil $55,000 not given
coal $180,000 $15,000
we need to find the PV of natural gas savings = $7,500 * 9.8181 (PVIFA, 8%, 20 periods) = $73,638
the PV of coal savings = $15,000 - 9.8181 (PVIFA, 8%, 20 periods) = $147,272
NPV of natural gas boiler = $73,638 - $30,000 = $43,638
NPV of coal boiler = $147,272 - $180,000 = -$32,728
Both Sue and Joe are students. Your friend Sue has $20,000 of credit card debt (25% interest charge compounded monthly). Sue plans on paying $400 per month over the next 10 years on this credit card. Your other friend Joe has $40,000 of student loan debt (15% interest charge compounded monthly). Joe plans on paying $645.34 each month for the next 10 years.
A) Which person, Sue or Joe, do you feel will pay the most interest expense and why?
B) Which person (Joe or Sue) has the worst debt situation?
Answers
Answer:
A)
Joe will pay the most interest expense because he is paying more interest than Sue.
B)
Sue has the worst debt situation because he is paying a higher interest rate as compared to Joe.
Explanation:
A)
First Calculate the interest payment of both as follow
Interest Payment = Total Installment Payment - Debt Value
Sue
Interest Payment = ( $400 per month x 10 years x 12 months per year ) - $20,000 = $48,000 - $20,000 = $28,000
Joe
Interest Payment = ( $645.34 per month x 10 years x 12 months per year ) - $40,000 = $77,440.8 - $40,000 = $37,440.8
Joe will pay more interest expense as compared to Sue.
B)
Sue has the worst debt situation because he is paying a higher interest rate as compared to Joe.
Zimmer, Inc. started the month of January with beginning finished goods inventory of $20,000. The cost of goods manufactured during the month was $120,000 and the ending finished goods inventory was $50,000. What is the unadjusted cost of goods sold for January
Answers
Answer:
$90,000
Explanation:
Calculation to determine the unadjusted cost of goods sold for January
Using this formula
Unadjusted cost of goods sold= beginning finished inventory + cost of goods manufactured - ending finished inventory
Let plug in the formula
Unadjusted cost of goods sold= 20,000 + 120,000 - 50,000
Unadjusted cost of goods sold= $90,000
Therefore the Unadjusted cost of goods sold is $90,000
The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $8 per unit. Its variable cost is $3 per unit, and its fixed cost per unit is $1.50. Management would like the fastener division to transfer 12,000 of these zippers to another division within the company at a price of $3. The fastener division could avoid $0.20 per zipper of variable packaging costs by selling internally.
Determine the minimum transfer price:
(a) Assuming the fastener division is not operating at full capacity, and
(b) Assuming the fastener division is operating at full capacity.
Answers
Answer:
a. $2.80b. $7.80Explanation:
a. Assuming the fastener division is not operating at full capacity
When the division is not operating at full capacity, they have space to take on the production requests for other divisions and so won't incur any opportunity costs from not producing for outside customers.
Minimum transfer price = Net Variable cost
= Variable cost - cost saving if sold internally
= 3 - 0.2
= $2.80
b. Assuming the fastener division is operating at full capacity.
At full capacity the division does not have space to produce for internal divisions without incurring losses from not selling outside. The transfer price will therefore be the selling price to customers less the variable cost savings:
= Selling price - variable cost savings
= 8 - 0.2
= $7.80
Cash Dividends King Tut Corporation issued 19,000 shares of common stock, all of the same class; 12,000 shares are outstanding and 7,000 shares are held as treasury stock. On December 1, 2019, King Tut's board of directors declares a cash dividend of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019. Required: Prepare the appropriate journal entries for the (a) date of declaration, (b) date of record, and (c) date of payment. If no entry is required, choose "No entry required" and leave the amount boxes blank. (a) fill in the blank 2 fill in the blank 4 (b) fill in the blank 6 fill in the blank 8 (c) fill in the blank 10 fill in the blank 12
Answers
Answer:
King Tut Corporation
Journal Entries:
December 1, 2019
Debit Cash dividend $2,500
Credit Dividend Payable $2,500
To record the declaration of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019.
December 10, 2019 No journal entry
December 15, 2019
Debit Dividend Payable $2,500
Credit Cash $2,500
To record the payment of dividends.
Explanation:
a) Data and Calculations:
Issued 19,000 shares of common stock, all of the same class;
12,000 shares are outstanding and
7,000 shares are held as treasury stock.
December 1, 2019, Cash dividend $2,500 Dividend Payable $2,500
$0.50 per share payable on December 15, 2019, to stockholders of record on
December 10, 2019 No journal entry
December 15, 2019, Dividend Payable $2,500 Cash $2,500
a. Billed customers for fees earned, $112,700.
b. Purchased supplies on account, $4,500.
c. Received cash from customers on account, $88,220.
d. Paid creditors on account, $3,100.
e. On October 12, fees earned on account were $14,600.
Required:
Journalize this transaction.
Answers
Answer:
C.
Explanation:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answers
Answer:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Explanation:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
the answer is demand for a good can be inelastic at a low price, but elastic at a high price.
Explanation:
Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the demand curve B. equal to the lowest price the firm can charge and still make a normal profit C. equal to average variable cost where it intersects the demand curve D. equal to average total cost where it intersects the demand curve.
Answers
Answer: A. equal to marginal cost where it intersects the demand curve
Explanation:
In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.
In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.
The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.
Required information
A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry .
Answers
Answer:
Date Account Title Debit Credit
June 30 Cash $150
Interest revenue $150
Explanation:
Interest earned is considered to be revenue so it will be credited to the interest revenue account.
Cash will be debited because the interest revenue increased it and assets are debited when they increase.
Which of the following is not a standard organizational structure
Answers
Question Completion with Options:
i. Line Organisation
ii. Staff Organisation
iii. Functional Organisation
iv. Committee Organisation Code
Answer:
The option that is not a standard organizational structure is:
iv. Committee Organisation Code
Explanation:
The organizational structure adopted by an entity reflects how some of its rules, roles, and responsibilities are directed between organizational levels in order to achieve its goals. The organizational structure also shows the information flows between different levels within the entity. Traditionally, organizations maintained hierarchical, functional, divisional, matrix, and flat organizational structures. Given current digitalization with its internet of things (IoT), more decentralized, network, and team-based organizational structures have emerged.
Refer to the supply and demand data for a certain elective surgical procedure. Without health insurance, the equilibrium price and quantity would be: Group of answer choices $3,000 and 7,000. $2,000 and 11,000. $5,000 and 2,000. $4,000 and 4,000.
Answers
Answer:
$3,000 and 7,000
Explanation:
Please find attached the table used in answering this question
Equilibrium price is the price at which quantity demand equal quantity supplied.
Equilibrium quantity is the quantity that equates quantity demand with quantity supplied.
Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded. As a result of the surplus, price would fall until equilibrium is reached.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied. As a result of the shortage, price would rise until equilibrium is reached
The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department.
a. Indicate the weak link in internal control in the handling of cash receipts.
b. How can the weakness be corrected?
Answers
Answer:
a. There is weak control measure by sending the remittance advice to the cashier
b. To remedy this weakness in control the mailroom can send the remittance advice directly to the accounting department
Explanation:
In the given scenario the mailroom sends remittance advice to the cashier who then processes deposit and sends the remittance advices and duplicate deposit slips to the Accounting Department.
Given the opportunity the cashier can divert some of the remittance advice without the accounting department knowing since the mailroom does not report anything to the accounting department.
To avoid this risk in operations it will be better for the mailroom to send the remittance advise to the accounting department.
The accounting department can now forward to the cashier for processing
Many people have strong negative reactions to pop-up, pop-behind, interstitial, and rich media ads. Assume you are the director of an advertising agency that specializes in creating and placing these ads. You see an opinion article in your local online newspaper that harshly criticizes these ads as intrusive and unnecessary. Write a details rejoinder to post in the comments section of this article in which you explain, from the advertiser’s viewpoint, why these ads can be more effective advertising media than text ads.
Answers
Answer:
Im on a private jet eating popeyes chicken, i be flexing like im eating popeyes spinach
Explanation:
plato users
The stock brokerage firm of Blank, Leibowitz, and Webber has analyzed and recommended two stocks to an investor. The investor was interested in factors such as short-term growth, intermediate growth, and dividends rates. The data on each stock is as follows: STOCK ($) FACTOR LOUISIANA GAS AND POWER TRIMEX INSULATION COMPANY Short-term growth potential, per dollar invested 0.36 0.24 Intermediate growth potential (over next 3 years), per dollar invested 1.80 1.50 Dividend rate potential 4% 8%The investor has the following goals: an appreciation of no less than $720 in the short term, an appreciation of at least $5000 in the next three years, and a dividend income of at least $200 per year. What is the smallest investment the investor can make to meet these three goals.
Answers
If you want to increase your purchasing power by investing in a bond, then: _____________
a. you must purchase that bond at a discount.
b. the nominal rate of return on that bond must be less than the inflation rate.
c. you should purchase a premium bond.
d. the nominal rate of return must equal or exceed the rate of inflation.
e. you must earn a positive real rate of return on that bond.
Answers
Answer:
b. the nominal rate of return on that bond must be less than the inflation rate
convenient product is the product that is relatively inexpensive item that merits little shopping effort. Is it true or false?
Answers
Answer: True
Explanation:
A convenient product is the product that is relatively inexpensive item that merits little shopping effort.
A convenient product refers to an inexpensive product which requires a little amount of effort from the consumer to purchase it. Some examples of convenience products include soft drink, bread, coffee.
Therefore, the statement given is true.
Example Payback period of a new machine Let’s say that the owner of Perfect Images Salon is considering the purchase of a new tanning bed. It costs $10,000 and is likely to bring in after-tax cash inflows of $4,000 in the first year, $4,500 in the second year, $10,000 in the 3rd year, and $8,000 in the 4th The firm has a policy of buying equipment only if the payback period is 2 years or less. Calculate the payback period of the tanning bed and state whether the owner would buy it or not. Calculate the discounted payback period of the tanning bed, stated in Example 1 above, by using a discount rate of 10%.
Answers
Answer:
Payback PeriodPayback period = Year before payback + Amount left to be paid back / Cashflow in year of payback
In year 2, the bed would have paid back:
= 4,000 + 4,500
= $8,500
Would be left with:
= 10,000 - 8,500
= $1,500
Payback period = 2 + 1,500 / 10,000
= 2.15 years
Company will not buy as payback period is more than 2 years.
Discounted payback period.Discount the cashflows first:
Year 1 = 4.000 / 1.1 = $3,636.36
Year 2 = 4,500 / 1.1² = $3,719
Year 3 = 10,000 / 1.1³ = $7,513.15
Year 4 = 8,000 / 1.1⁴ = $5,464.11
Discounted payback period = Year before payback + Amount left to be paid back / Cashflow in year of payback
= 2 + (10,000 - 3,636.36 - 3,719) / 7,513.15
= 2 + 2,644.64 / 7,513.15
= 2.35 years
When a company receives payment from a customer whose account receivable was previously written off, the company a. reinstates the customer's account to the balance of both gross receivables and the allowance. b. records a decrease in bad debt expense. c. records an increase in net revenue. d. records a gain from unexpected collections.
Answers
Answer: a. reinstates the customer's account to the balance of both gross receivables and the allowance.
Explanation:
When a company receives payment from a customer whose debt had been written off, the first step is to reinstate the account. This will be done by debiting the Accounts Receivable account and crediting the Allowance for doubtful debt accounts.
The accounts receivable account will then be credited to show that it is reducing. The cash account will be debited to show that cash was received from the customer.
M. Poirot wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate of 11.28% with bond interest payable semiannually. Six years ago, $979 was paid for the bond. At least a 12% return (yield) on the investment is desired. The minimum selling price must be: Enter your answer as follow: 1234.56
Answers
Answer:
M. Poirot
The minimum selling price must be:
= $2,065.09.
Explanation:
a) Data and Calculations:
Face value of bond = $1,000
Interest rate = 11.28%
Interest payment = semiannually
Price of bond six years ago = $979
Desired return (yield) rate = 12%
Minimum selling price can be determined as follows:
N (# of periods) 12
I/Y (Interest per year) 12
PV (Present Value) 979
PMT (Periodic Payment) 5.64
Results
FV = $2,065.09
Sum of all periodic payments $67.68
Total Interest $1,018.41
Jenson Co. just paid a $10.18 dividend. The company's dividends are expected to grow at a consistent rate of 6% indefinitely. Given a required rate of return of 12%, what should be the price of Jenson's stock
Answers
Answer:
$179.85
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
10.18 (1,06) / (0.12 - 0.06) = 179.85
Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.
Answers
Answer:
See below
Explanation:
Given the above information
Return on assets = Net income / Average total assets
Net income = $98,000
Average total assets = ($409,000 + $459,000) / 2 = $434,000
= $98,000 / $434,000
= 22.58%
Therefore, return on assets = 22.58%
The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.
a. process; specific job
b. specific job; process
c. process; department
d. department; process
Answers
Answer:
B. Hope it helps:)
Explanation:
Answer: C. Process;Department
Explanation: the cost object in a job order system is the specific job and the cost object in a process costing system is the process.
It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:_________
A) monopoly situations
B) both the short run and long run
C) the long run
D) the short run
Answers
Answer:
B.both the short run and long run.
Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations. Standard Custom Direct labor costs $60,000 $103,000 Machine hours 1,400 1,290 Setup hours 96 400 Total estimated overhead costs are $300,000. Overhead cost allocated to the machining activity cost pool is $195,000, and $105,000 is allocated to the machine setup activity cost pool.
1. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.)
2. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.)
3. Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.)
Answers
Answer:
Saddle Inc.
1. Overhead rate using the traditional (plantwide) approach is:
= $1.84
2. The overhead rates using activity-based costing approach are:
Machining = $72.49
Machine setup = $211.69
3. The difference in allocation between the two approaches:
Differences:
ABC approach $121,808 $178,188 $299,996
Using plantwide $110,400 $189,520 $299,920
Differences $11,408 -$11,332 $76
Explanation:
a) Data and Calculations:
Total estimated overhead costs = $300,000
Machining activity = $195,000
Machine setup activity = $105,000
Standard Custom Total
Direct labor costs $60,000 $103,000 $163,000
Machine hours 1,400 1,290 2,690
Setup hours 96 400 496
Overhead rate based on direct labor costs = $1.84 ($300,000/163,000)
Overhead rates using activity-based costing approach:
Machining = $72.49 ($195,000/2,690)
Machine setup = $211.69 ($105,000/496)
Allocation of overhead costs:
Standard Custom Total
Using plantwide $110,400 $189,520 $299,920
Using ABC:
Machining $101,486 $93,512 $194,998
Machine setup 20,322 84,676 104,998
Total costs $121,808 $178,188 $299,996
Differences:
ABC approach $121,808 $178,188 $299,996
Using plantwide $110,400 $189,520 $299,920
Differences $11,408 -$11,332 $76
The information necessary to conduct a bottom-up estimate of project time and cost starts with the ___________. Multiple Choice work package level 5 elements of the PBS milestones level 4 elements of the WBS planning horizon
Answers
The information necessary to conduct a bottom-up estimate of project time and cost starts with the work package.
Bottom-up estimate builds detailed cost and time estimates from the lowest level of detail for the work package. This process improves the project's ability to be achieved within the estimated amounts of money and time.
The work package encompasses the required steps to complete the building blocks of the work breakdown structure and so actualize the project objectives.
In project management, the work requirements are broken down into work packages. Such breakdown enables various teams to simultaneously or sequentially work on the different project components.
Thus, information required for conducting a bottom-up estimate of project time and costs starts with the work package and not level 5 PBS elements or level 4 WBS elements.
Learn more about the importance of work packages in project management here: https://brainly.com/question/19866249
