Answer and Explanation:
The Journal entries are given below:-
1. Merchandise Inventory Dr, $2,200
To Accounts Payable $2,200
(Being merchandise purchase on account is recorded)
2. Accounts Payable Dr, $2,200
Merchandise Inventory Dr, $44 ($2,200 × 2%)
To Cash $2,244
(Being cash paid is recorded)
3. Cash Dr, $196 ($200 - ($200 × 2%)
To Merchandise Inventory $196
(Being cash received is recorded)
4. Merchandise Inventory Dr, $110
To Cash $110
(Being cash paid is recorded)
5. Accounts Receivable Dr, $2,376
To Sales $2,376
(Being sales is recorded)
6. Cost of goods sold Dr, $1,188
To Merchandise Inventory $1,188
(Being cost of goods sold is recorded)
7. Sales Returns and allowances Dr, $295
To Account Receivables $295
(Being sales return is recorded)
8. Merchandise Inventory Dr, $148
To Cost of goods sold $148
(Being cost return is recorded)
Self-disclosure is considered a major theme of interpersonal relations because
The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. Based on the following excerpt from the trial balance, prepare a statement of revenues, expenses, and changes in net position for the Breukelen RTS for the year ended December 31, 2019, using the appropriate format.
Revenues from fares $3,150,000
Train operating expenses 2,430,000
Track and train maintenance expenses 565,000
Depreciation 325,000
Investment income 50,000
Interest expense on long-term debt 320,000
Cash subsidy from the City of Breukelen 500,000
Net position, January 1, 2019 7,430,000
Answer:
The City of Breukelen
Breukelen RTS
Statement of revenues, expenses, and changes in net position
For the year ended December 31, 2019
Particulars Amount$ Amount$
Revenues
Operating Revenue 3,150,000
Operating Expenses
Train operating expenses 2,430,000
Track and maintenance expenses 565,000
Depreciation expenses 325,000
Total operating expenses 3,320,000
Operating loss (170,000)
Non-Operating revenue (Expenses)
Investment income 50,000
Interest expenses 320,000
Total Non-operating (expenses) (270,000)
Loss before transfer (440,000)
Transfer from City of B 500,000
Change in net assets 60,000
Total net position (beginning) 7,430,000
Total net position (ending) 7,490,000
Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll's recent income statement and balance sheet. Mark each item from the balance sheet as an asset (A), liability (L), or shareholders' equity (SE) and each item from the income statement as a revenue (R) or expense (E).
a. Notes payable to banks
b. General and administrative
c. Accounts payable
d. Dividends payable
e. Retained earnings
f. Cash and cash equivalents
g. Accounts receivable
h. Provision for income taxes[1]
i. Cost of goods sold
Answer:
Matching the financial statement items to financial statement categories:
Financial Statement Items Financial statement
a. Notes payable to banks Liability (L)
b. General and administrative Expense (E)
c. Accounts payable Liability (L)
d. Dividends payable Liability (L)
e. Retained earnings Shareholders' equity (SE
f. Cash and cash equivalents Asset (A)
g. Accounts receivable Asset (A)
h. Provision for income taxes[1] Expense (E)
i. Cost of goods sold Expense (E)
Professionalism is a skill necessary for......
Professional skills are career competencies that often are not taught (or acquired) as part of the coursework required to earn your masters or PhD.
Answer:
Professional skills such as leadership, mentoring, project management, and conflict resolution are value-added skills essential to any career.
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The risk-free rate of return is 5%. The standard deviation of the returns on the optimal risky portfolio is :_______
a. 25.5%
b. 22.3%
c. 21.4%
d. 20.7%
Answer:
Option c (21.4%) is the right approach.
Explanation:
As we know.
wA and wB = weights of the securities SDA and SDB = standard deviations Cor(A,B) = correlation coefficient.On applying the formula:
⇒ [tex]SD \ Portfolio = [wA^2\times SDA^2+wB^2\times SDB^2+2\times wA\times wB\times SDA\times SDB\times Cor(A,B)]^{0.5}[/tex]
On substituting the values, we get
⇒ [tex](0.29^2\times 39^2+0.71^2\times 20^2+2\times 0.29\times 0.71\times 39\times 20\times 0.4)^{0.5}[/tex]
⇒ [tex]21.40 \ Percent[/tex] (%)
There is a new country called Saffron where the people's political opinions lead them to divide themselves into five different groups, representing different outlooks on how the legislature should approach public policy. These five groups based on political convictions in turn result in the formation of five political parties (each named after a type of food). The five parties are listed below in order from most liberal to most conservative. In the first election for the legislature in this country the people vote for their candidates and their parties as follows, with the vote in the whole country being the same as the vote in every part of it:
Fruit 28%Soup 14%Bread 12%Meat 20%Vegetable 26%If after the first election process is complete the Vegetable party has some seats in the legislature and the Meat party has none, then the election system is which of the following?A. Proportional representation.B. Single member districts and majority winners.C. Single member districts and plurality winners.
Answer: B. Single member districts and majority winners.
Explanation:
This is a Single member district majoritarian system because that is the only way that Vegetable party would have some seats in the legislature and the Meat party would have none.
In a Single member district majoritarian system, only 1 member will be chosen per district and this would be the person with the majority of votes in the first election process.
In this case therefore, Vegetable party won the majority in some districts that it ran in and Meat did not win the majority in any.
A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building is $5,000/month and additional utilities cost $15,000/month. The production line is open 24 hours every day of the month (calculate with 30 days per month). Each day has three 8-hour shifts with 10 workers present in each of these snifts. All workers get paid $30/hour. The materials used for your product cost $2,500/product. Your accountant advises you that your corporate taxes are estimated to be $500/product.
Calculate, how many products you must make and sell in one month to make a $1,000,000 profit per month.
Answer:
Break-even point in units= 172 units
Explanation:
Fixed costs= 5,000 + 15,000= $20,000
Direct labor cost= [(10*8)*3]*30= $7,200
Tax= $500 per unit
Direct material= $2,500 per unit
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (20,000 + 7,200 + 1,000,000) / (9,000 - 500 - 2,500)
Break-even point in units= 172 units
Prove:
Sales= 172*9,000= 1,548,000
Variable costs= 172*3,000= (516,000)
Contribution margin= 1,032,000
Fixed costs= 27,200
Net income= 1,004,800
The president of the Super Sip Soda Corporation asks you, as the company economist, to forecast changes in consumer root beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $8.50 to $10.50, the quantity demanded will decrease from 2,500 units to 2,350 units a month
Answer:
the price elasticity of demand (midpoint formula) = % change in quantity demanded / % change in price = {(2,350 - 2,500) / [(2,350 + 2,500)/2]} / {(10.50 - 8.50) / [(10.50 + 8.50)/2]} = (-150 / 2,425) / (2 / 9.50) = -0.0619 / 0.2105 = -0.294 or |0.294| in absolute terms, price inelastic
this means that for every 1% that price increases, total quantity demanded will decrease by only 0.294%.
You can increase total revenue by increasing the price of beer:
previous revenue = $8.50 x 2,500 = $21,250
new revenue = $10.50 x 2,350 = $24,675
It is actually a very good idea to go ahead and increase the price.
Causwell Company began 2018 with 27,000 units of inventory on hand. The cost of each unit was $5.00. During 2018 an additional 45,000 units were purchased at a single unit cost, and 37,000 units remained on hand at the end of 2018 (35,000 units, therefore, were sold during 2018). Causwell uses a periodic inventory system. Cost of goods sold for 2018, applying the average cost method, is $192.500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.Required:1. Determine the cost of goods sold for 2018 using the FIFO method.2. Determine the cost of goods sold for 2018 using the LIFO method.
Answer:
Causwell Company
FIFO LIFO
Cost of goods sold $181,400 $203,000
Explanation:
Data and Calculations: Units Unit Cost Weighted FIFO LIFO
Beginning Inventory = 27,000 $5 $135,000 $135,000 $135,000
Purchases of inventory 45,000 $5.8 $261,000 $261,000 $261,000
Goods available 72,000 $396,000 $396,000 $396,000
Ending Inventory (37,000) $5.5 $203,500 $214,600 $193,000
Inventory Sold 35,000 $5.5 $192,500 $181,400 $203,000
Unit cost = $5.00
Computation of the Value of beginning inventory = $135,000 (27,000 x $5)
From the value of Inventory Sold (Cost of goods sold), determine the unit cost. This is applied to the ending inventory units, to ascertain its value. This value is added to the cost of goods sold, to determine the cost of goods available for sale, which is made up of the beginning inventory and purchases. From the Cost of Goods Available for Sale subtract the beginning inventory, to obtain the purchases in amount. Divide the value by units and you obtain the unit cost.
Hokies uses the following accounts:
Accounts Payable
Equipment
Supplies
Rent Expense
Notes Payable
Salaries
Expense
Accounts
Receivable
Utilities
Expense
Service
Revenue
Retained
Required:
Indicate which accounts should be debited and which should be credited for the following transactions of Hokies companies.
1. Pay a cash dividend.
2. Pay rent in advance for the next three months.
3. Provide services to customers on account.
4. Purchase office supplies on account.
5. Pay salaries for the current month.
6. Issue common stock in exchange for cash.
7. Collect cash from customers for services provided in (3) above.
8. Borrow cash from the bank and sign a note.
9. Pay for the current month's utilities.
10. Pay for office supplies purchased in (4) above.
Answer:
Transaction Account Debited Account Credited
1. Pay a cash dividend. Dividends Cash
2. Pay rent in advance for the next Prepaid Rent Cash
three months.
3. Provide services to customers Accounts Receivables Service revenue
on account.
4. Purchase office supplies on Supplies Accounts receivables
account.
5. Pay salaries for the current Salaries Account Payables
month.
6. Issue common stock in Cash Common stock
exchange for cash.
7. Collect cash from customers for Cash Account Receivables
services provided in (3) above.
8. Borrow cash from the bank Cash Notes payable
and sign a note.
9. Pay for the current month's utilities. Utilities Cash
10. Pay for office supplies purchased Account payables Cash
in (4) above.
Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records for the most popular item in inventory showed the following;Transactions Units Unit CostBeginning Inventory Jan 1, 2015 400 $3.00Transactions during 2015:a) Purchase, Jan 30 300 $3.40b) Purchase, May 1 460 $4.00c) Sale ($5 each) (160)d) Sale ($5 each) (700)Compute the amount of goods available for sale.Goods available for sale _____________Compute the amount of ending inventory and cost of goods sold at December 31 under Average cost, First-in, first-out, Last-in, first-out, Specific identification of the inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)Average Cost First-In, First Out Last-In, First-Out Specific IdentificationEnding Inventory Cost of goods sold
Answer:
Goods available for sale = 300 units
ending inventory under:
FIFO = $1,200LIFO = $900weighted average = $1,050specific identification = $981.60COGS under:
FIFO = $2,860LIFO = $3,160weighted average = $3,010specific identification = $3,078.40Explanation:
Transactions Units Unit Cost Total
Beginning Inventory Jan 1, 2015 400 $3.00 $1,200
a) Purchase, Jan 30 300 $3.40 $1,020
b) Purchase, May 1 460 $4.00 $1,840
c) Sale (160) $5.00 ($800)
d) Sale (700) $5.00 ($3,500)
total 300 $4,060
ending inventory under:
FIFO = 300 x $4 = $1,200
LIFO = 300 x $3 = $900
weighted average = ($4,060 / 1,160) x 300 = $1,050
specific identification = $4,060 - $3,078.40 = $981.60
COGS under:
FIFO = 300 x $4 = $4,060 - $1,200 = $2,860
LIFO = 300 x $3 = $4,060 - $900 = $3,160
weighted average = $4,060 - $1,050 = $3,010
specific identification = (160 x 2/5 x $3) + (160 x 3/5 x $3.40) + (240 x $3) + (460 x $4) = $3,078.40
The following selected accounts appear in the adjusted trial balance for Deane Company.Indicate the financial statement on which each account would be reported.Account (a) Accumulated Depreciation. (b) Depreciation Expense. (c) Retained Earnings (beginning). (d) Dividends. (e) Service Revenue. (f) Supplies. (g) Accounts Payable. Financial Statements:1. Balance Sheet2. Income Statement3. Retained Earnings Statement
Answer:
Accounts Financial Statements
(a) Accumulated Depreciation Balance sheet
(b) Depreciation Expense Income statement
(c) Retained Earnings (beginning) Retained earnings statement
(d) Dividends Retained earnings statement
(e) Service Revenue Income statement
(f) Supplies Balance sheet
(g)Accounts Payable Balance sheet
Business-process outsourcing (BPO) is a type of outsourcing that consists of contracting operations and responsibilities of a specific business process (e.g.,human resources) to a third party service provider. Such outsourcing generally began with manufacturing firms outsourcing your supply chain but has grown into a much wider range of process, including marketing, finance, sales, and accounting. According to a recent Frobes articles, the revenue of the globe outsourced services Industry rose from 45 billion in 2000 to nearly 100,000,000,000 in 2012. Competition among firms in that BPO market is strong. Companies based in the United States include HP enterprise services, affiliated come to Peterson services, an automated data processing (ADP). A number of Indian companies, however, also provide worldwide BPO services, such as Infosys, Wipro, and Genpact. An article in business wk. suggested that BPL can save and users anywhere from 15 to 85%. International BPO service providers are particularly attractive says offshore labor I first an additional 25 to 30% cost savings. Furthermore, approximately 25% of the cost savings result from BPO firms proprietary products. The remaining 10% to 30% in cost reduction accrues from consolidated operations. Suppose you are the manager of a U.S.-based company and must decide whether to outsource your human resources department. Based on the above information and your study, please outline arguments supporting and opposing a decision to outsource this function of your business. Please explain from a purely business standpoint, any issues that might arise from contracting with an international-based versus U.S.-based BPO service firm? Explain.
Answer and Explanation:
A good number of problems usually arise with outsourcing from outside the country.
1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.
2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.
3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.
4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China
5. Problems and Applications Q5 In the 1990s and the first two decades of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring. True or False: It was better for the United States not to receive this foreign investment because it shrank the capital stock. True False True or False: It's best for Americans that China and Japan, rather than Americans themselves, made the investment, so that Americans can have more to spend on consumption. True False
Answer:
False FalseExplanation:
The investment from China and Japan would have increased the capital stock because it would mean that there was more cash for investment products in the United States. It would be false therefore to say that the investments shrank capital stock.
On the other hand, it would have been best that Americans and not the Chinese or the Japanese made the investments because when investments yield returns, those returns are sent to the investors which in this case are in Japan and China which means that more money will be flowing out the United States.
Prepare the journal entries to record the following transactions on Sunland Company's books using a perpetual inventory system.
a. On March 2, Splish Brothers Company sold $885,600 of merchandise to Sunland Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.
b. On March 6, Sunland Company returned $110,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,000.
c. On March 12, Splish Brothers Company received the balance due from Sunland Company.
Answer:
a. March 2, 202x, merchandise purchased on account from Splish Brothers, credit terms 2/10, n/30
Dr Merchandise inventory 885,600
Cr Accounts payable 885,600
b. March 6, 202x, defective/wrong merchandise returned to Splish Brothers
Dr Accounts payable 110,200
Cr Merchandise inventory 110,200
c. March 12, 202x, paid invoice to Splish Brothers within discount term
Dr Accounts payable 775,400
Cr Cash 759,892
Cr Purchase discounts 15,508
purchase discount = purchase balance x 2% = $775,400 x 2% = $15,508
The manager of a computer help center needs to determine a shift schedule for
his sta . The center is open from 8am until midnight (12am), and is divided into four shifts. The number of employees needed on each shift is as follows: 4 on the rst shift (8am-12pm), 10 on the second shift (12pm-4pm), 8 on the third shift (4pm-8pm), and 6 on the last shift (8pm-12am). Two types of employees can be hired to sta the computer center: full-time employees and part-time employees. Full-time employees must be hired for two consecutive shifts, and can be hired to start in the rst, second or third shift. Part-time employees are hired for a single shift. Full-time employees are paid $14 an hour, while part-time employees are paid $12 an hour. Lastly, during each of the shifts, there must be at least two full-time employees sta ed for every part-time employee.
Formulate a linear programming model to satisfy the stang requirements at minimum cost.
Explanation:
we have to define certain variables in ordet for us to formulate the linear programming model
[tex]aj =[/tex] the number of full time staff hired at time j
[tex]bj=[/tex] number of full time staff hired at time j
1 full time emploer 8hrs x 14$
= 112 dollars
1 part time worker = 4hrs x $12
= 48 dollars
we set up the model as:
[tex]minimize 112(a_{1} +a_{2} +a_{3} )+48(b_{1} +b_{2} +b_{3})[/tex]
[tex]a_{1} + b_{1} = 4[/tex]
[tex]a_{1} +a_{2} +b_{2} = 10[/tex]
[tex]a_{2} +a_{3} +b_{3} =8[/tex]
[tex]a_{3} +b_{4} =6[/tex]
[tex]a_{1} >2b_{1}[/tex]
[tex]a_{1} +a_{2} \geq 2b_{2}[/tex]
[tex]a_{2} +a_{3} \geq 2b_{3}[/tex]
[tex]a_{3} \geq 2b_{4}[/tex]
[tex]a_{j} ,b_{j} \geq 0[/tex]
∀j
At December 31, 2019, Concord Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 107,956 shares $10,795,600
Common stock, $5 par, 4,068,220 shares 20,341,100
During 2020, Concord did not issue any additional common stock. The following also occurred during 2020.
Income from continuing operations before taxes $22,234,700
Discontinued operations (loss before taxes) $3,457,200
Preferred dividends declared $1,079,560
Common dividends declared $2,404,100
Effective tax rate 35%
Compute earnings per share data as it should appear in the 2020 income statement of Concord Corporation.
Answer:
Concord Corporation
Income Statement
31-Dec-20
Particulars Amount
Net Income:
Income from continuing operation $22,234,700
before income tax
Income Tax (35%) $7,782,145
Income from continuing operation $14,452,555
Discontinued operations
Losses before taxes $3,457,200.00
Less: Income tax (35%) $1,210,020.00 $2,247,180
Net Income $12,205,375
Preferred dividend declared $1,079,560
Weighted average common share outstanding 4,068,220
Earning per share = Income from continuing operation - Discontinued operation, net of tax
Where Income from continuing operation = ($14,452,555 - $1,079,560) / 4068220 = $3.29. Discontinued operation, net of tax = ($2,247,180/4068220) = -$0.55
Earning per share = $3.29 - $0.55
Earning per share = $2.74
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials $15,300
Indirect labor 133,000
Property taxes, factory 8,300
Utilities, factory 73,000
Depreciation, factory 152,100
Insurance, factory 10,300
Total actual manufacturing overhead costs incurred $392,000
Other costs incurred:
Purchases of raw materials (both direct and indirect) $403,000
Direct labor cost $63,000
Inventories: Raw materials, beginning $20,300
Raw materials, ending $30,300
Work in process, beginning $40,300
Work in process, ending $70,300
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year.
Required:
a. Compute the amount of under-applied or over-applied overhead cost for the year.
b. Prepare a schedule of cost of goods manufactured for the year.
Answer:
See explanations below.
Explanation:
a. It is over applied overhead cost because applied overhead cost is more than the actual overhead cost.
Applied overhead cost = 20,000 hours × $20 = $400,000.
b. Please find attached schedule of cost of goods manufactured as requested.
What is a green thumb?
An ability to care for animals
An ability to climb trees
An ability to care for plants
An interest in the environment
Please help
Answer:
It is the ability to care for plants.
Explanation:
Prepare the necessary adjusting entries at December 31, 2019 for the Washington Apple Company. Assume that no adjustments were made during the year. Use the journal below.
a. On October 1, 2019 the company purchased for cash a one year fire policy for $4000.
b. The company had depreciation on equipment of $12,500 for the year.
c. On December 28, 2019 the company received $4000 cash for products. The entire $4000 was counted as revenues for the year when the transaction was made. One half of the product was shipped on December 30, 2019 and the other half won't be produced and shipped until mid-January.
Answer:
Entries are given
Explanation:
Fire policy will be debited as it is an asset for the company. Depreciation is always debited as it is a non-cash expense and accumulated depreciation will be credited related to the equipment depreciated. Revenue will be recognized to the extent of value the company has provided as a service or a product.
DEBIT CREDIT
Fire policy $4,000
cash $4,000
Depreciation expense $12,500
Accumulated depreciation (equipment) $12,500
Cash $4.000
Revenue $2,000
Unearned revenue $2.000
A company understated its ending inventory balance by $4,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022?
Answer:
Cost of goods sold will be overstated by $4,000 in 2021.
Gross profit will be understated by $4,000 in 2022.
Explanation:
If ending inventory is underestimated, then the cost of goods sold would increase by same amount of underestimated inventory I.e $4,000.
However, since cost of goods would increase by $4,000 in 2021, the gross profit will be underestimated by $4,000 in 2022. This is because the overstatement of cost goods sold have eroded the extra profit that should have been added to the gross profit.
1. What are the different types of economic measurements used to analyze most
economies?
Answer:
Government borrowing/national debt.
Real disposable incomes.
Income inequality (Gini coefficient)
Labour productivity.
Investment levels.
Exchange rate.
Misery index (inflation rate + Unemployment rate)
Poverty levels.
Explanation:
hope this helps :)
and i did it on a test and got it right! pls make me Brainiest!!!!
A company had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $ 109,500 $ 46,943
End of the year 169,000 68,445
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,450 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $1,450 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases:
(Decreases in equity should be indicated with a minus sign.)
a. b. c. d.
Beginning of the year
Answer: Check attachment
Explanation:
Note that the beginning of the year equity was calculated as:
= 109500 - 46943
= 62557
Ending of the year equity was calculated as:
= 169000 - 68445
= 100555
Check attachment for further analysis
Assume these events happened to Bakko, Inc. in Year 4. Bakko uses December 31 for the annual reporting period. At the beginning of Year4, Bakko owns 12 donut stores and 30 gas stations. Each of the 42 businesses is a separate business component. Bakko sells 2 donut stores in Year4 on October 1. The disposition is not considered to be a strategic shift. Bakko sells 6 gas stations in urban areas on May 1. The disposition is considered to be a strategic shift.
Match each of the following descriptions to where it would most likely be reported on Bakko's corporate income statement for Year 4.
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4.
4. Operating results through April 30,Year 4 for the gas stations that were sold.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1.
A. Part of income from continuing operations.
B. As a discontinued operation.
C. Not part of net income for Year 4.
Answer:
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4. - Part of income from continuing operations.
The gas station is still owned by Bakko so the gain received will form part of income from continuing operation.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5. - Not part of net income for Year 4
As per the Revenue Recognition principle of Accounting, revenue is only to be recorded when earned which means that this revenue will be in the Year 5 income.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4. - As a discontinued operation.
The gas station has been sold and so is a discontinued operation.
4. Operating results through April 30,Year 4 for the gas stations that were sold. - As a discontinued operation.
The gas station has been sold and so is a discontinued operation. Will be reported in the Income statement as such.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1. - As a discontinued operation.
The donut store was sold and is no longer a part of Bakko so is a discontinued operation.
how do you determine a bond premium or discount
a. If you will be making equal deposits into a retirement account for 20 years (with each payment at the end of the year), how much must you deposit each year if the account earns 8% compounded annually and you wish the account to grow to $5,000,000 after 40 years (in time 40)?
b. How does your answer to part (a) change if the account pays interest compounded monthly at an annual rate of 8%?
Answer:
A) we can use the future value of an annuity formula:
future value = annual contribution x FV annuity factor
future value = $5,000,000FV annuity factor, 8%, 40 periods = 259.05652annual contribution = $5,000,000 / 259.05652 = $19,300.81
B) we need to calculate the effective annual interest rate:
= (1 + 0.08/12)¹² - 1 = 8.3%
future value = annual contribution x FV annuity factor
future value = $5,000,000FV annuity factor, 8.3%, 40 periods = 280.40756annual contribution = $5,000,000 / 280.40756 = $17,831.19
your annual contribution will decrease by $1,469.62
Taco Bell processes on average 1,500 customers per day (15 hours). On average there are 75 customers in the restaurant (waiting to place the order, waiting for the order to arrive, eating, etc.). How long does an average customer spend at Taco Bell and what is the average customer turnover
Answer:
1.333 customers per hour
Explanation:
The computation of average customer turnover is shown below:-
number of customers processed per hour = 1,500 ÷ 15
= 100 customers per hour
Now,
Average time spend by the customer is given as the ratio I/R = 75 ÷ 100
= 0.75 hours
or
= 45 minutes
Customer turnover = 100 ÷ 75
= 4/3
or
= 1.333 customers per hour
The PE ratio is useful because it measures: A. how much an investor is willing to pay for $1 of earnings. B. how much a stock is expected to earn. C. how much earnings are going to grow.
Answer:
A. how much an investor is willing to pay for $1 of earnings.
Explanation:
The formula used to calculate the price earnings ratio (PE) = market price of the stock / earnings per stock. E.g. a company that earns $2 per stock and its stock is worth $50 has a PE ratio = $50 / $2 = 25.
The higher the PE ratio, the higher the expected growth rate. Earnings of a company that has a PE ratio of 25 should grow at a much higher rate than a company with a PE of 10.
A very high PE ratio can mean that:
the company's growth rate is very highthe company's stock is overvaluedInvestors generally compare a company's PE ratio against the industry's average, e.g. the average PE ratio of companies that list in the S&P 500 is between 13-15.
Businesses in the United States are governed by laws that provide rights to all citizens regardless of their race, color, religion, gender, or country of origin. The U.S. Constitution established three branches of government to ensure that no one group or individual could control all the power. The three branches—legislative, executive, and judicial—act as a system of checks and balances. The goal of this activity is to determine which branch of government regulates each human resource management issue. The three branches of government in the United States influence human resource management (HRM) practices such as recruitment, selection, compensation, and performance management. This activity is important because Individuals need to be aware of the legal system and legislation governing HRM practices in the workplace.
Match the brach of the Fedral goverment with the followings.
a. Retirement
b. Best Buy
c. Labor Relations
d. Affirmative Action
e. Ford
f. Education
g. Oil Pipeline
h. Starbucks
i. Equal Employment
1. Judicial Branch
2. Executive Branch
3. Legislative Branch
Answer:
Executive Branch: Affirmative Action, Oil Pipeline, Equal Employment
Judicial Branch: Labor Relations, Best Buy, Starbucks
Legislative Branch: Ford, Education, Retirement
A company issued 800 shares of $4 par value preferred stock for $5 per share. What is true about the journal entry to record the issuance
Answer:
This question is incomplete. I tried looking for the full question but i could not find it.
However, I have provided the notes below to help you with important principles on the issuance of Par Value stated Preference Stock.
Notes :
It is important to remember that any amount paid in excess of par value when it comes to par value stated stocks is accounted for in a stock premium reserve.
Journal Entry to record issuance of preferred stock is :
Cash $4,000 (debit)
Preference Stock $3,200 (credit)
Paid In Excess of Par $800 (credit)
Thus, of the $5 , 1$ was paid in excess and the total to go in the reserve is $800.