Answer: Please see answer in explanation column
Explanation:
a) Journal entry to write off an uncollectible amount.
Date Account Debit Credit
Jan 31st Allowance for doubtful accounts $2,100
Accounts receivable—C. Green $2,100
b) Journal to record recovery of the bad debt.
Date Account Debit Credit
Mar 9 Accounts receivable—C. Green $1,600
Allowance for doubtful accounts $1,600
c) Journal to record payment on account.
Date Account Debit Credit
Mar 9 Cash $1,600
Accounts receivable—C. Green $1,600
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 2,400 2,900 3,900 Per unit sales value at split-off $ 21.00 $ 24.00 $ 24.00 Added processing costs per unit $ 3.00 $ 5.00 $ 5.00 Per unit sales value if processed further $ 25.00 $ 25.00 $ 30.00 The cost of the joint raw material input is $77,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes no B) yes no yes C) no yes no D) no yes yes
Answer:
WP Corporation
Which of the products should be processed beyond the split-off point? Product X Product Y Product Z
B) yes no yes
Explanation:
a) Data and Calculations:
Budgeted data for the next month:
products X Y Z
Units produced 2,400 2,900 3,900
Per unit sales value at split-off $ 21.00 $ 24.00 $ 24.00
Added processing costs per unit $ 3.00 $ 5.00 $ 5.00
Per unit sales value if processed further $ 25.00 $ 25.00 $ 30.00
Added profit after further processing $ 1.00 ($4.00) $ 1.00
Further processing of the products X, Y, and Z will yield further or added profit of $1.00 from products X and Z, but a loss of $4 from product Y. Therefore, product Y should not be processed further, unless its cost structure is such that there is a more than $4 profit to be generated and its further processing is necessary for the other two to be sold, that is if the three products must be sold jointly. In such a case, management could take further analysis to reduce the cost for consumers.
Until yesterday, J. J. worked for his father's company and was covered by the company's large group health plan. He stopped working to go to college. He is 26 years of age and wants to keep the same coverage until he earns his degree in approximately 24 months. Which of the following statements is true?
A. A good option for J.J. is to exercise the COBRA option under his father's group plan
B. J.J. can obtain coverage under COBRA, but it won't be the same coverage he had under his father's group plan
C. As a student, J.J. is still covered under his father's group plan
D. J.J.'s only option is to buy a personal plan of coverage
Answer: A good option for J.J. is to exercise the COBRA option under his father's group plan
Explanation:
Consolidated Omnibus Budget Reconciliation Act (COBRA) option provides the workers and their families the right thing continue enjoying and using the group health benefits after they have lost their health benefits.
It should be noted that this is for a certain period of time under some circumstances like job loss or going to college as in J.J case.
Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full-time stay-at-home mom. Use the easy method to estimate the family’s life insurance needs.
Answer:
$367,500
Explanation:
Estimation of the family’s life insurance needs
Using the easy method
Based on the information given we were told that Mark gross salary is $75,000 while is wife
Parveen is a stay-at-home mom this means that we would be using the easy method to estimate the family’s life insurance needs based on Mark gross salary of $75,000 because he is the only one that earn on a monthly basis.
Insurance need =$75,000 x 7 years x 70%
Insurance need = $367,500
Therefore the family’s life insurance needs will be $367,500
Boards of directors have responded to financial crises, corporate scandals, regulator obligations, and investor requests for structural changes. In looking at the 2011 Harvard Business Review study of the changes in configuration of boards since 1987, which change has been brought about by government legislation?
Answer: Percentage of the directors that are independent has increased.
Explanation: The response from board of directors, regarding financial crises, corporate scandals and regular obligations. brought about an increase in the percentage of board of directors who are independent. This has been due to government laid down legislations. This independent board of directors are not executive directors, but directors who hold shares of the organization.
Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?
Answer:
$2,061
Explanation:
DATA:
Number of employees = 15 employees
Number of hours worked = 40 hours
Earning per hour = $30
Tax Rate = 15%
Unemployment tax rate = 3.8%
FICA tax rate = 7.65%
Solution
Employer's total payroll tax expense can be calculated by adding the FICA tax and unemployment tax from the employee's Basic pay.
Calculation
Basic Pay (15x40x30) = $18,000
FICA (18,000 x 7.65%) = $1,377
Unemployment tax ( 18,000 x 3.8%) = $684
Employer's total payroll tax expense = $2,061
S&P Enterprises has scheduled direct material purchases of $120,000 in April, $140,000 in May and $160,000 in June. The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase. Calculate the expected cash disbursements for t
Answer:
Results are below.
Explanation:
Giving the following information:
Purchases:
April= $120,000
May= $140,000
June= $160,000
The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase.
We can calculate the cash disbursement for each month:
April:
Purchase from April= 120,000*0.75= 90,000
May:
Purchase from May= 140,000*0.75= 105,000
Purchase from April= 120,000*0.25= 30,000
Total= 135,000
June:
Purchase from May= 140,000*0.25= 35,000
Purchase from June= 160,000*0.75= 120,000
Total= 155,000
Q 7.24: A small grocery store has three employees working each shift, but they only have one checkout register. Depending on which employee is available when a customer is ready to check out, all three employees use the same register at various times of the day. Which principle of control activities does this grocery store violate
CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,000, how many laptops must CompuTop sell to generate a target income of $66,667?
Answer:
$9,166.70
Explanation:
The computation of the number of laptop need to sell is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $30 - $20
= $10
And, the fixed cost is $25,000 + profit is $66,667
Now putting these values to the above formula
So, the number of laptops sells is
= ($25,000 + $66,667) ÷ ($10 per unit)
= $9,166.70
what is one of the effects that the internet has had on bussiness?
If my friend asks me for 20 dollars i said tommorow you have to give me 25. IS THIS BIG BRAIN
Answer:
kinda
Explanation:
You'll obviously expect a little interest .
If i were you though i'll give the person up to 3 days to pay back before adding a little interest to it.
PLEASE add your loving THANKS
A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed costs for the Buffs would be $7500 and the variable costs per egg would be a dime per egg. The Reds would have a fixed cost of $6000 and a variable cost of fifteen cents. At what level of egg production would the poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons
Answer:
30,000
Explanation:
$7500 + 0.1x = $6000 + 0.15x
collect like terms and solve for x
$7500 - $6000 = 0.05x
x = 30,000
Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. List fixed and variable expenses separately.
Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Fixed Budget Actual Results Variances 144 150 72 80 $180,000 $186,000 $6,000 F 36,000 41,200 5,200 F 156,000 163,880 7,880 U $ 60,000 $ 63,320 $3,320 F
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
Answer:
Explanation:
Desk Chairs Total
Sales 187,500 40,000 227,500
Fixed sales /fixed sales unit
Desk
180000/144 = 1250
150 units = 1250*150
Chair
36,000/72= 500
80 units 500*80 =40,000
Variable expenses 112,500
Desk
Budgeted variable expenses /Budgeted units
108,000/144 = 750
150 units = 750*150= 112,500 20,000 132,500
Chairs
18000/72 =250
250*80=20,000
Flexible performance report
Flexible budget Actual result variance
Desk Sales 187,500 186,000 1,500 U
Chairs 40,000 41,200 1,200 F
Variable Exp ( 132,500 ) ( 132,880 ) 380 U
Contribution 95,000 94,320 680 U
Fixed Exp. (30,000) ( 31,000 ) 1,000 U
Income 65,000 63,320 1,680 U
Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock (g) Depreciation expense (c) Increase in interest receivable (h) Payment of dividends (d) Purchase of land (i) Decrease in utilities payable (e) Decrease in accounts payable (j) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows
Answer:
(a) Decrease in accounts receivable
(g) Depreciation expense
Explanation:
Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted
Based on the above explanation, the items which are to be added in the operating activities are
(a) Decrease in account receivable
(g) depreciation expense
Out of all Other items would be deducted and all other items belong to investing and financing activity
When a single firm can supply a product to an entire market at a lower cost than could two or more firms, the industry is called a a. resource industry. b. exclusive industry. c. government monopoly. d. natural monopoly.
Answer:
D. Natural Monopoly
Explanation:
Natural Monopoly occurs when a single firm can supply a product to an entire market at a lower cost than could two or more firms. A natural monopoly is based on economies of scale.
Economies of scale act as a barrier to entry because one large firm can produce the market output at a lower average cost than several small firms.
A natural monopoly is created by substantial economies of scale.
Natural monopoly is a type of monopoly that exists due to the high starts-up cost or powerful economies of scale.
In March 2012, the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI) be clearly labeled with a cancer warning. Because of this, both Pepsi and Coke changed their formula to eliminate 4-MI as an ingredient. If Pepsi and Coke did NOT change their formula, holding all else constant, what would have happened to the demand for these goods, assuming Pepsi and Coke were in a competitive market
Answer:
The demand curve for Pepsi and Coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.
Explanation:
As in the question it is mentioned that the if the Pepsi and Coke do not change the formula and all other things being constant so the demand for the goods in case of the competitive market is that the demand curve is shifted to the left which results in a decrease in the price of both goods also due to price falls the profits for both companies dropped.
The listening gap is understood to be the difference between ________. Group of answer choices A. The speed of sound and the speed of reception B.A customer explaining a problem and a customer service representative understanding it C.The speed at which the brain can comprehend communication and the speed at which the average adult speaks D.The speech rate of 125 to 150 words per minute and the thought rate of 80 to 100 words per minute
Answer: the speed at which the brain can comprehend communication and speed at which the average adult speaks
Explanation:
Listening is a primary skill that is used by most individuals to gather information.
The listening gap is understood to be the difference between the speed at which the brain can comprehend communication and speed at which the average adult speaks.
10. In earned value analysis (EVA), we found: SV = -$7,800 at certain point. If the project has a total budget = $65,000 and total duration of 25 days. The project is: a. On schedule b. Ahead of schedule by 0.33 day c. Ahead of schedule by 3 days d. Behind schedule by 0.33 day e. Behind schedule by 3 days
Answer:
3.5
Explanation:
Jenco Co. imports raw materials from Japan, invoiced in U.S. dollars. The price it pays is not expected to change for the next several years. If the Japanese yen appreciates, Jenco’s imports from Japan will probably ____ and if the Japanese yen depreciates, its imports from Japan will probably ____.
Answer:
stay the same; stay the same
Explanation:
Since in the question it is mentioned that Jenco Co. imported the raw material from Japan and the price is not changed as predicted now if the Japanese yen rises so the imports would remain the same and the same case with the decline i.e the imports from Japan would also stays the name
Therefore there would be no change in case of appreciation and depreciation
Combines technology with manual employee effort to identify trends, perform comparisons and highlight opportunities in supply chain processes, even when large amounts of data are involved. Group of answer choices Supply chain analytics Supply Chain Collaboration Commodization Small Business
Answer:
Supply chain analytics
Explanation:
Supply chain analytics combines technology with manual employee effort to identify trends, perform comparisons and highlight opportunities in supply chain processes, even when large amounts of data are involved.
When supply chain analytics is used to analyze customers by gathering information from them, it would help an organization to better predict future customer demands, needs or want.
Generally, if properly harnessed it also helps business entities to decide what products should be minimized when they are becoming less beneficial, profitable to the business. Additionally, supply chain analytics assist firms to understand what a particular customer's needs could be after their initial order of a product or service. Visual representation tools such as graphs or charts are used in the supply chain analytics.
_ are best described as the ethical standards and norms that govern the behavior of individuals within a firm. Organizational core values Corrective controls Job descriptions Customs duties
Answer:
organisational core values
_______ is a term referencing the concept that a sufficient interest must exist on the part of an insured in order to take out a policy of insurance. Multiple Choice Insurable interest Pecuniary interest Financial concern Financial effect Profit impact
Answer:
Insurable interest
Explanation:
The insurance interest is the interest of the insurer while taking the policy so that the risk of the loss is reduced also it is an important requirement that makes the firm or the event to be legal, valid, enforceable, and protected against any harmful acts done intentionally
Therefore according to the given situation, the concept in which enough interest must exist on the part of the insurer while taking the policy is known as the insurer interest
Hence, the first option is correct
Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a(n):
Answer: Certificate of deposit
Explanation: Herbs investment with Applebottom Bank and Trust Company represents a certificate of deposit which differs from the usual savings deposit due to the the high interest it pays and the fact that it is time bound. The depositor enters into an agreement with the financial institution issuing the certificate of deposit and a fixed term of deposit is agreed with a better interest than usually attached to other deposit accounts. This restricts the depositor from being able to withdraw any amount from his / her account before the stipulated date.
People choose to hold a larger quantity of money if a. the interest rate rises, which causes the opportunity cost of holding money to rise. b. the interest rate falls, which causes the opportunity cost of holding money to fall. c. the interest rate falls, which causes the opportunity cost of holding money to rise. d. the interest rate rises, which causes the opportunity cost of holding money to fall.
Answer:
b. the interest rate falls, which causes the opportunity cost of holding money to fall.
Explanation:
the demand for money (the declension to hold money) is inversely related to interest rate. if interest rate is high, individuals would prefer to hold bonds and the demand for money would fall. if interest rate is low, individuals would prefer to hold money.
the opportunity cost of holding money is what would have been earned if money was invested. if interest rate is low, individuals would prefer to hold more money because the amount that would be earned if money was invested in bonds would be low, so the opportunity cost of holding money would be low
if a firm prices low worldwide in an attempt to build global sales volume as rapidly as possible, even it this means taking large losses initially, what kind of strategy is it pursuing?
Answer: Experience curve pricing
Explanation: The experience curve pricing principle aims to explain the relationship between the unit price of production and marketing and the experience possessed by the marketing and production company or firm on that product. In a bid to acquire more depth in experience in production and marketing, forms tend to sell at prices below the average selling price which may culminate in losses in the early stage
However, with increase in experience in the production and marketing of the product attained as a result of cumulative production, the unit production cost begins to decline.
A company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000. The amount to be reported under cash flows from financing activities is _____. $(8,000) $(60,000) $12,000 $40,000 $(52,000)
Answer: $(60,000)
Explanation:
From the question, we are told that a company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000.
The amount to be reported under cash flows from financing activities will be $60,000. This is the amount from the question that the bonds are retired for.
Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competencies. This is primarily because the source for the company's success has been unclear. The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions. Gene Electronics Inc. has been protected from losing its competitive advantage as a result of
Answer:
Causal Ambiguity
Explanation:
In this specific scenario, it can be said that they have been protected from losing its competitive advantage as a result of Causal Ambiguity. This term refers to a situation where it is hard or even impossible to relate the consequences or effects of a phenomenon to its initial states or causes. This is the case because Gene Electonics Inc's success (phenomenon) cannot be traced back to an initial cause, which makes it impossible to replicate. Therefore, no other company can compete.
Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 (p=0.4) with each of the other stocks. If the weighted average of the risk (standard deviation) of the individual securities in the partially diversified portfolio of four stocks is 39%, the portfolio's standard deviation most likely is ________ 39%.
a. equal to,
b. more than,
c. less than
Answer:
c. less than
Explanation:
As in the question, it is mentioned that the correlation coefficient is 0.4 which is less than one
Now if the weighted average of an individual of four stock is 39% so the portfolio standard deviation is less than 39% due to the correlation coefficient which is less than one
Hence, the correct option is c.
Sparrow Products Industries stock is currently selling for $80. It just paid its annual dividend of $2 after reporting an ROE of 15%. The firm pays out 50% of its earnings as dividends. What is the expected return of this stock?
Answer:
Expected return on stock = 9.68%
Explanation:
Cost of equity can be ascertained using the dividend valuation model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.
Ke=( Do( 1+g)/P ) + g
g- growth rate in dividend, P- price of the stock, Ke- required return, D- dividend payable in now
DATA
D0- 2, g- ?, P- 80
Note that the growth rate in dividend is missing so we wold work it out as follows:
g = dividend retention rate ×Return on equity
g = 0.15*0.5 = 7%
Expected return on stock
= (2× (1+0.07)/80) + 0.07 = 0.09675
Expected return on stock = 0.09675 × 100 = 9.675
Expected return on stock = 9.68%
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $19.2 million in iTunes gift cards in November, and customers redeem $12.2 million of the gift cards in December.
Required:
1. Record the receipt of cash for gift cards.
2. Record the revenue earned from redemption of gift cards.
3. What is the ending balance in Deferred revenue?
Answer and Explanation:
The Journal entries are shown below:-
1. Cash Dr, $19,200,000
To Deferred revenue $19,800,000
(Being receipt of cash for gift cards is recorded)
2. Deferred revenue Dr, $12,200,000
To Sales revenue $12,800,000
(Being revenue recognized from the redemption of gift cards is recorded)
3. The computation of ending balance in Deferred revenue is shown below:-
Ending balance in Deferred revenue = Sold apples - Redeem amount of the gifts
= $19,200,000 - $12,200,000
= $7,000,000
If prices are inflexible, monetary policy: Multiple Choice affects real income but not nominal income. affects both nominal and real income. does not affect real or nominal income. affects nominal income but not real income.
Answer:
Option b (affects both nominal and real income) is the correct answer.
Explanation:
Monetary policy seems to be the mechanism through which a contractionary economic legislative power, usually the bank but rather monetary system panel, controls whether another extremely minimum-term borrowing costs or perhaps the money supply, often setting certain inflation or monthly payment to maintain market stability maintaining generalized commodity trust.Monetary policies aren't exclusive to monetary policies, which are enforced by government international trade and economic growth.The alternatives given should not be in relation to the case in question. So option b seems to be the right one.