Answer:
A. Journal Entries:
1. Debit Cash $7,000
Credit Common Stock $7,000
To record the issuance of stock.
2. Debit Rent Expense $750
Credit Cash $750
To record the payment of rent expense for December.
3. Debit Advertising Expense $500
Credit Account Payable $500
To record the accrued expense.
4. Debit Cash $15,000
Credit Notes Payable $15,000
To record the borrowing of cash from bank with a note payable.
5. Debit Cash $1,200
Credit Counseling Services Revenue $1,200
To record the receipt of cash for counseling services rendered.
6. Debit Accounts Receivable $6,800
Credit Counseling Services Revenue $6,800
To record revenue for counseling services rendered.
7. Debit Salary Expense $2,200
Cash Cash $2,200
To record the payment for secretary salary.
8. Debit Utilities Expense $370
Credit Cash $370
To record the payment of utilities expense for the month.
9. Debit Dividends $900
Credit Cash $900
To record the payment of dividends.
10. Debit Land $13,000
Credit Cash $13,000
To record the purchase of land for cash.
11. Debit Interest Expense $100
Credit Cash $100
To record the payment of interest on Note Payable.
B. T-accounts:
Cash
Account Titles Debit Credit
Common stock $7,000
Rent Expense $750
Note payable 15,000
Counseling Services 1,200
Salary Expense 2,200
Utilities Expense 370
Dividends 900
Land 13,000
Interest Expense 100
Accounts Receivable
Account Titles Debit Credit
Counseling Services $6,800
Land
Account Titles Debit Credit
Cash $13,000
Accounts Payable
Account Titles Debit Credit
Advertising expense $500
Notes Payable
Account Titles Debit Credit
Cash $15,000
Common Stock
Account Titles Debit Credit
Cash $7,000
Retained Earnings
Account Titles Debit Credit
Counseling Services Revenue
Account Titles Debit Credit
Cash $1,200
Rent Expense
Account Titles Debit Credit
Cash $750
Advertising Expense
Account Titles Debit Credit
Accounts Payable $500
Interest Expense
Account Titles Debit Credit
Cash $100
Salary Expense
Account Titles Debit Credit
Cash $2,200
Utilities Expense
Account Titles Debit Credit
Cash $370
Dividends
Account Titles Debit Credit
Cash $900
Explanation:
a) Data and Calculations:
Transactions Analysis:
1. Cash $7,000 Common Stock $7,000
2. Rent Expense $750 Cash $750
3. Advertising Expense $500 Advertising Payable $500
4. Cash $15,000 Notes Payable $15,000
5. Cash $1,200 Counseling Services Revenue $1,200
6. Accounts Receivable $6,800 Counseling Services Revenue $6,800
7. Salary Expense $2,200 Cash $2,200
8. Utilities Expense $370 Cash $370
9. Dividends $900 Cash $900
10. Land $13,000 Cash $13,000
11. Interest Expense $100 Cash $100
Which part/phrase in the passage hints at a disadvantage that Gary suffers as a franchisee?
Gary entered a franchise contract with a manufacturing company a year back.
He has to sell the company's products under its trademark. He
has been learning the company's management techniques as per the contract.
He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence.
He has to pay royalties and a small percentage of his sales revenue to the franchisor every month.
Answer:
I believe it is "He cannot pitch new ideas to his franchisor since the contract
restricts his creativity and independence." because he can't help his business grow when he can't make new ideas.
Answer:
2nd sentence
Explanation:
g Congratulations, you've just won the $2,200,000 state lottery! The lottery commission offers you the choice of $98,000 per year for 30 years or a one-time, lump-sum payment of $880,000 If your intensions are to save all of the lottery winnings (regardless of annual cash flow or lump-sum) for retirement in an account that earns 3.00% annually, which payment option should you choose
Answer:
the choice of $98,000 per year for 30 years
Explanation:
To determine the option i would prefer, i have to find the present value of fiest opotion and compare it with the value of the second option.
To find the present value of the first option, the future value has to be determined first.
The formula for determining the future value of an annuity is :
The formula for calculating future value = A (B / r)
A = amount
B = annuity factor
r = interest rate
Annuity factor = {[(1+r)^n] - 1} / r
n = number of years
$98,000 x[ (1.03)^30 - 1 ] / 0.03 = $4,662,390.74
Now we determine the present value
PV = FV x ( 1+r)^-n
$4,662,390.74 x (1.03)^-30 = $1920,843.25
The payoff of the first option is greater than that of the second so i would choose the first
preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation. If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:
An outside supplier has offered to sell the component for $17. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on income would be:
Answer:
C. a $10,000 decrease.
Explanation:
Calculation for what the effect on income would be
First step is to calculate Make
Make=$100,000 + $160,000 + $60,000
Make = $320,000
Second step is to calculate Buy
Buy= $20,000 × $17 = $340,000 – $10,000
Buy = $330,000
Now let calculate the effect on income
Effect on income = $320,000 – $330,00
Effect on income = –$10,000 decrease
Therefore the effect on income would be –$10,000 decrease
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $127,800. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:_______.
Budgeted Production Volume Direct Labor Hours Per Unit
Flutes 2,100 units 0.8
Clarinets 800 1.4
Oboes 1,300 1.0
If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead rate.
$ per direct labor hour
b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products.
Total
Factory Overhead Cost Per Unit
Factory Overhead Cost
Flutes $ $
Clarinets
Oboes
Total $
Answer:
A.$31.2 per hour
B. Factory Overhead Cost Per Unit
Flutes $24.96
Clarinets $43.68
Oboes $32.74
Factory Overhead Cost
Flutes 52,416
Clarinets 34,944
Oboes 40,560
Explanation:
A. Calculation to Determine the single plantwide overhead rate.
First step is to calculate the Total Hours
Total Direct Labor Hours
Flutes 2100 units *0.8 hour per unit= 1,680
Clarinets 800 units *1.4 hours per unit = 1,120
Oboes 1300 units *1.0 hour per unit= 1,300
Total Hours 4,100
Now let calculate the Plantwide overhead rate using this formula
Plantwide overhead rate = Total Overhead Cost / Total labor hours
Let plug in the formula
Plantwide overhead rate=$127,800/4,100
Plantwide overhead rate=$31.2 per hour
Therefore Plantwide overhead rate will be $31.2 per hour
B. Calculation to determine the amount of total and per-unit overhead allocated to each of the three products.
Product Total Labor Hours Total Overhead Overhead Per Unit
Flutes 1,680 52,416 (1,680*31.2) $24.96 (52416/2100)
Clarinets 1,120 34,944(1,120*31.2) $43.68 (34,944/800)
Oboes 1,300 40,560
(1,300*31.2) $32.74 (40,560/1,300)
Total 4,100 127,920 $101.38
Therefore Factory Overhead Cost Per Unit and Factory Overhead Cost Will be:
Factory Overhead Cost Per Unit
Flutes $24.96
Clarinets $43.68
Oboes $32.74
Factory Overhead Cost
Flutes 52,416
Clarinets 34,944
Oboes 40,560
Sandier company had no treasury stock transactions. Then, on June 1, the company paid $5,000 to purchase 100 shares common stock on the open market. On July 1, the company sold 50 of these shares at $52 per share. Then, on August 1, the company sold remaining 50 shares at $46 per share. Complete the journal entry for the sale of the treasury stock on July 1.
Answer:
July 1
Debit : Treasury Stock (50 shares x $52) $2,600
Credit: Cash (50 shares x $52) $2,600
Explanation:
Purchase of Company`s own shares is known as Treasury Stock this purchase is done at cost.
The Sale however is done at the selling prices on the respective sales dates and number of shares. This sale results in Cash increase and Decrease in Treasury Stock as shown above for July 1 Sale.
Which of the following statements is true? (Select the best choice below.) A. Westlake Corporation generated a positive cash flow from operations (), but it experienced a large reduction in cash (). B. Westlake Corporation generated a negative cash flow from operations (), but it was off-set by the sale of fixed assets (). C. Westlake Corporation generated a positive cash flow from operations (), but an even a greater amount was used to invest in fixed assets (), resulting in a need to raise funds through financing activities. D. Westlake Corporation generated a positive cash flow from operations (), but it was off-set by the negative cash flows from investing activities (
Answer: C. Westlake Corporation generated a positive cash flow from operations , but an even a greater amount was used to invest in fixed assets , resulting in a need to raise funds through financing activities.
Explanation:
From the Cashflows of Westlake shown here, we see that the cashflow from operations is $592. This means that there was a positive cashflow from operations.
$1,066 was however used to invest in fixed assets which is higher than the cash generated from operating cashflow.
As a result, the company did not have enough cash to finance the fixed assets and so they raised money through financing activities by acquiring debt of $643.
The following information was taken from the accounting records of Eb8-L4z Company for the year ended December 31, 2027:
Patent $59,000
Cost of goods sold $46,000
Inventory $55,000
Retained earnings $42,000 (at January 1, 2027)
Service revenue $37,000
Notes payable . ?
Land $88,000
Accounts receivable . $73,000
Rental revenue . ?
Utilities payable . $21,000
Salaries expense . $51,000
Accounts payable . $62,000
Equipment . $60,000
Utilities expense . $91,000
Supplies . $31,000
Income tax expense . $18,000
Dividends . $25,000
Common stock . $13,000
Cash . $82,000
Required:
Calculate the amount of gross profit reported in Eb8-L4z Company' s 2027 income statement.
Answer:
Amount of Gross Profit reported in Eb8-L4z Company 2027 Income Statement is $45,000
Explanation:
Note: "Correct question is attached as picture below"
Particulars Amount
Sales revenue $91,000
Cost of goods sold $46,000
Gross Profit $45,000
We covered various methods to identify the preferred alternative. For example, the rate-of-return (ROR) method states that the base alternative is the one that instructs us to use incremental analysis to compare the base alternative to the next smallest investment cost alternative. Meaning, if the change in IRR is greater than or equal to MARR, eliminate the base and move on to the next comparison. If the change in IRR is less than MARR, keep the base and move on to the next comparison. Discuss this decision rule.
Answer:
The rate of return (RoR) of an investment calculates the net gain or loss of the investment over a period of time. Then this gain or loss is expressed as a percentage of the investment's initial cost. This return of return can be calculated as either the Internal Rate of Return (IRR) or the Minimum Acceptable Rate of Return.
The decision rule is based on ascertaining the economic attractiveness of a project. The rule states that if the IRR exceeds the MARR, it shows that the investment is economic and beneficial. If the IRR is less than the MARR, the investment is not economically beneficial. When the IRR equals the MARR, it implies that the benefits from the investment equal the costs.
The purpose of this decision rule is to ensure that beneficial economic decisions are during investment planning.
Explanation:
The IRR (internal rate of return) of a project calculates the discount rate at which the net present value (NPV) of all cash flows from a project equals zero. The MARR (minimum acceptable rate of return) or the hurdle rate is the lowest rate of return that the project must earn to offset the investment costs of the project. Therefore, the rate of return is a determination of the percentage change in the value of the investment at the beginning of the period and at the end.
PLEASE HELP!!!!
How is a check treated by the US government?
a. as currency
b. as a legal contract
c. as a negotiable instrument
d. as a promise from the payee to the payer
Answer:
legal contract
Explanation:
should be it or currency
Sheffield Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition, the following items were not included in the physical count. Sheffield, Inc. determined that $95500 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39500 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Sheffield report as inventory at the end of the year
Answer:
$980,000
Explanation:
Calculation for What amount should Bell report as inventory at the end of the year
Goods on hand $845,000
Add Goods in transit $95,500
Add Goods out on consignment $39,500
Ending Inventory $980,000
($845,000+$95,500+$39,500)
Therefore the amount that Bell should report as inventory at the end of the year will be $980,000
Marvin had the following transactions: Salary $50,000 Interest on City of Chicago bonds $250 Bank loan (proceed to buy personal auto) $10,000 Alimony payment to ex-wife (Divorce was finalized in 2018) $12,000 Child support payment $6,000 Gift received from aunt $20,000 Marvin's AGI is: A. $32,000 B. $38,000 C. $44,000 D. $56,000 E. $64,000
Answer:
B. $38,000
Explanation:
Calculation for Marvin's AGI
Salary $50,000
Less Alimony payment to ex-wife $12,000
AIG $38,000
($50,000-$12,000)
Therefore Marvin's AGI is $38,000
Caradonna Company has 100,000 shares of $5 par common stock issued and outstanding as of January 1, year 8. The shares were originally issued for $22 per share. On February 3, year 8, Caradonna repurchased 5,000 shares at $19 per share for the purposes of retiring them. On April 10, year 8, Caradonna repurchased an additional 2,000 shares at $25 per share. No other transactions involving common stock occurred during the year. What will be the balance in additional paid in capital from retired stock as a result of those transactions?
Answer:
$9,000
Explanation:
Common Stock Add. Paid in Capital
Additional Paid in capital on $35,000 $119,000
issued of 7000 Shares (7,000*$5) (7,000*$17)
Total Amount collected in $119,000
additional paid in capital (A)
Repurchase 5000 Shares at $19 $25,000 $70,000
(5000*5) (5,000*14)
Repurchase 2000 Shares at $25 $10,000 $40,000
(2000*5) (2,000*20)
Total Amount Paid on Additional $110,000
Paid in capital (B)
Balance in Additional paid in Capital (A-B) $9,000
Prepare the Income Statement from the Adjusted Trial Balance. Within each section of the statement, use the drop-down menus to enter the accounts and select the account balances. SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 14,000 Accounts Receivable 7,700 Office Supplies 100 Prepaid Rent 9,300 Furniture 16,300 Accumulated Depreciation--Furniture 5,600 Accounts Payable 1,800 Salaries Payable 400 Interest Payable 200 Unearned Revenue 4,600 Notes Payable 6,500 Common Stock 9,100 Retained Earnings 9,300 Dividends 23,900 Service Revenue 42,500 Depreciation Expense--Furniture 1,800 Interest Expense 200 Rent Expense 2,800 Salaries Expense 3,200 Supplies Expense 700 Total 80,000 80,000 Revenue: Expenses:
Answer:
Smart Touch Learning
SMART TOUCH LEARNING Income Statement December 31, 2016
Service Revenue 42,500
Depreciation Expense--Furniture 1,800
Interest Expense 200
Rent Expense 2,800
Salaries Expense 3,200
Supplies Expense 700
Total Expenses 8,700
Net Income $33,800
Explanation:
a) Data and Calculations:
SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit
Cash 14,000
Accounts Receivable 7,700
Office Supplies 100
Prepaid Rent 9,300
Furniture 16,300
Accumulated Depreciation--Furniture 5,600
Accounts Payable 1,800
Salaries Payable 400
Interest Payable 200
Unearned Revenue 4,600
Notes Payable 6,500
Common Stock 9,100
Retained Earnings 9,300
Dividends 23,900
Service Revenue 42,500
Depreciation Expense--Furniture 1,800
Interest Expense 200
Rent Expense 2,800
Salaries Expense 3,200
Supplies Expense 700
Total 80,000 80,000
b) The income statement of Smart Touch Learning shows the difference between its revenue and expenses for a given accounting period. It is used to determine the net income that the company has generated over a particular period.
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 84,000 $ 47,000 Work in process 73,000 49,000 Finished goods 122,000 107,000 Other information Direct materials purchases $ 331,000 Cost of goods available for sale 964,000 Actual factory overhead costs 267,000
The amount of underapplied or overapplied overhead is:______.
Solution :
The cost of the manufactured goods = cost of the available goods for sale - beginning of finished goods
= 964,000 - 122,000
= $ 842,000
Total cost of manufacturing = cost of the goods manufactured + ending work in process - beginning work in process
= 842,000 + 49,000 - 73,000
= $ 818,000
The direct material used = 84,000 + 331,000 - 47,000
= $ 368,000
Now, the direct materials used + direct labor cost + factory overhead applied = the total material cost
368,000 + direct labor cost + 125% of direct labor = 818,000
225% of the direct labor cost = 818,000 - 368,000
= $ 450,000
Direct labor = [tex]$\frac{450,000}{225}$[/tex]% = $ 200,000
Therefore the factory overhead applied = 200,000 x 125%
= [tex]$\$ 250,000$[/tex]
The underapplied overhead = [tex]$\text{actual overhead} - \text{applied overhead}$[/tex]
= [tex]$\$ \ 260,000 - \$ \ 250,000$[/tex]
= $ 10,000
Dexter Industries purchased packaging equipment on January 8 for $108,000. The equipment was expected to have a useful life of three years, or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Year 2, and 8,100 hours in Year 3.
Required:
Determine the amount of depreciation expense for the three years ending December 31, by:
(a) the straight-line method,
(b) the units-of-activity method, and
(c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Round the final answers for each year to the nearest whole dollar.
Answer:
a.
Year 1 = $34,200
Year 2 = $34,200
Year 3 = $34,200
Total = $102,600
b.
Year 1 = $41,040
Year 2 = $30,780
Year 3 = $30,780
Total = $102,600
c.
Year 1 = $71,993
Year 2 = $24,002
Year 3 = $6,605
Total = $102,600
Explanation:
Straight Line Method
Depreciation Expense = Cost - Residual amount ÷ Estimated useful life
therefore,
Depreciation Expense = ($108,000 - $5,400) ÷ 3 = $34,200
This charge will be the same from Year 1 through Year 3 because its straight line !
Units-of-activity method
Depreciation Charge = Activity rate x activity during the period
where,
Activity rate = Cost - Residual amount ÷ Estimated operating hours
= ($108,000 - $5,400) ÷ 27,000 hours
= $3.80
Year 1
Depreciation Charge = $3.80 x 10,800 hours = $41,040
Year 2
Depreciation Charge = $3.80 x 8,100 hours = $30,780
Year 3
Depreciation Charge = $3.80 x 8,100 hours = $30,780
Double Declining Balance Method
Depreciation Charge = 2 x SLDP X BVSLDP
where,
SLDP = 100 ÷ number of years
= 100 ÷ 3
= 33.33 %
Year 1
Depreciation Charge = 2 x 33.33 % x $108,000
= $71,992.80
Year 2
Depreciation Charge = 2 x 33.33 % x ($108,000 - $71,992.80)
= $24,002
Year 3
Depreciation Charge = 2 x 33.33 % x ($108,000 - $71,992.80 - $24,002)
= $8,002.67
However
In Year 3 depreciation will decrease the book value of the asset below its salvage value :
Do the Test :
Year 2 Book Value $12,005
Less Year 3 Depreciation ($8,003)
Year 3 Book Value $4,002
With double-declining-balance method, Depreciation will only be allowed to the point where :
Book Value = Salvage amount
Therefore, Depreciation for year 3 will be :
Year 2 Book Value $12,005
Less Salvage amount ($5,400)
Year 3 Depreciation $6,605
Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun's operations for last year: Unit product cost under variable costing $ 5.20 per unit Fixed manufacturing overhead cost for the year $ 260,000 Fixed selling and administrative expense for the year $ 180,000 Units (calculators) produced and sold 400,000 What is Shun's absorption costing unit product cost for last year
Answer:
$5.85
Explanation:
Calculation for Shun's absorption costing unit product cost for last year
Absorption costing unit product cost =$5.20+ (260,000/400,000)
Absorption costing unit product cost =5.20+ 0.65
Absorption costing unit product cost =$5.85
Therefore the absorption costing unit product cost for last year is $5.85
Absorption cost is a managerial accounting approach that covers both variable and fixed overhead costs associated with the production of a specific product. Shun's absorption costing unit product cost is $5.85.
What is absorption costing unit product cost for last year?Shun's absorption costing unit product cost calculation for the previous year is shown below.
[tex]\text{Absorption costing unit product cost} = 5.20+ (\frac{260,000}{400,000} )\\\\\text{Absorption costing unit product cost} = 5.20+ 0.65\\\\\text{Absorption costing unit product cost} = 5.85[/tex]
As a result, the cost of absorption costing unit product last year was $5.85.
For more information about absorption costing, refer below
https://brainly.com/question/26276034
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $11,000.
March 5 Obtain $7,000 loan from the bank by signing a note.
March 10 Purchase construction equipment for $15,000 cash.
March 15 Purchase advertising for the current month for $1,200 cash.
March 22 Provide construction services for $16,000 on account.
March 27 Receive $11,000 cash on account from March 22 services.
March 28 Pay salaries for the current month of $4,000.
Required:
Record each transaction. Bearcat uses the following accounts:
Cash,
Accounts Receivable,
Notes Payable,
Common Stock,
Service Revenue,
Advertising Expense, and Salaries Expense.
Answer:
Date Account Titles & Explanations Debit Credit
1 Mar Cash $11,000
Common stock $11,000
(Issue of common stock)
5 Mar Cash $7,000
Notes payable $7,000
(Issue of notes payable recorded)
10 Mar Equipment $15,000
Cash $15,000
(Purchase of equipment recorded)
15 Mar Advertising expenses $1,200
Cash $1,200
(Advertising expenses recorded)
22 Mar Account receivables $16,000
Service revenue $16,000
(Service revenue recorded)
27 Mar Cash $11,000
Account receivable $11,000
(Cash receipt for customers recorded)
28 Mar Salaries expenses $4,000
Cash $4,000
(Salaries expenses recorded)
Mijka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $30,400, (2) paid cash expenses of $13,800, and (3) paid a $2,100 cash dividend to its stockholders. These were the only events that affected the company during Year 1.
Required:
a. Record the effects of each accounting event under the appropriate general ledger account headings.
b. Prepare an income statement, statement of changes in stockholdersâ equity, and a balance sheet dated December 31, 2018, for Mijka Company.
Answer:
Mijka Company
a. Journal Entries
Debit Cash $30,400
Credit Service Revenue $30,400
To record the proceeds for services provided.
Debit Expenses $13,800
Credit Cash $13,800
To record the payment of cash for services.
Debit Dividend $2,100
Credit Cash $2,100
To record the payment of cash dividend.
b. Income Statement for the year ended December 31, 2018:
Service Revenue $30,400
Expenses 13,800
Net Income $16,600
Dividends (2,100)
Retained earnings $14,500
Statement of Changes in Stockholders' Equity as of December 31, 2018:
Retained Earnings $14,500
Balance Sheet as of December 31, 2018:
Assets:
Cash $14,500
Equity:
Retained Earnings $14,500
Explanation:
a) Data and Calculations:
Cash revenue $30,400
Cash expense (13,800)
Cash dividend (2,100)
Cash balance $14,500
Below, you are provided with four groups of different goods. These goods are differentiated by the number of likely substitutes that each has, and by the fraction of income that consumers spend on each. You will rank the goods within each group by their expected price elasticities of demand.
Consider the following three goods:
1. a red convertible car
2. a car
3. a convertible car.
Rank the demand of these three goods by their expected price elasticities of demand from most elastic to least elastic.
Answer and Explanation:
The red and the convertible cars would be considered similar i.e. they are perfect substitutes also the car and the convertible car would be the substitutes but it is not a perfect as the convertible car would be the subset of the car group plus the expenditure made on the convertible car would be high so here the elasticity is more
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement
Price Control
Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
selector 1
Price ceiling
Price floor
selector 2
Binding
Non-binding
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
selector 3
Price ceiling
Price floor
selector 4
Binding
Non-binding
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
selector 5
Price ceiling
Price floor
selector 6
Answer:
Price ceiling binding
price floor binding
price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price. The legal minimum price is above $3. Thus, it is a binding price floor
As a result of the minimum price legislation, labour can't be hired. This is an example of a binding price floor
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price. The government sets the maximum price has $2.50. This is below the equilibrium price. thus, it is a binding price ceiling
(01.02 MC)
Economics is defined as a study of the (5 points)
a
properties of money
Ob
ways people obtain their wants with limited resources
Ос
ways businesses and government operates
Od
best ways to increase the profits of a company
Answer:Ob
---ways people obtain their wants with limited resources
Explanation:
Economics as defined by Lionel Robbins is the science that studies human behavior as a relationship between ends and scarce means which have alternative uses.
The economy generally is filled with people having unlimited wants but the resources( land, labour, capital and enterpreneur) to satisfying these wants are Limited and scarce . Economics studies how the society (government and businesses)use these scarce resources to satisfy or meet its unlimited wants by providing variety of goods and services from the scarce resources so that people can have choices to choose from in satisfying their limitless wants in order of preferences.
Answer:
b: ways people obtain their wants with limited resources
Explanation:
is proud to work for a company with a strong __________ because he knows the organization supports ethical behavior.
Answer:
Ethical climate.
Explanation:
An ethical climate can be defined as a collection of behaviors that are considered to be acceptable and correct within an organization or business firm. Also, an ethical climate provides the human resources management of an organization with a framework or benchmark on how employee behavioral issues or ethical problems are to be managed or handled within the organization.
Thus, an organization with a strong ethical climate is generally considered to have an effective, conducive, just and optimum working standards for its employees and as such would significantly increase employee trust and commitment.
Hence, we can easily say Epicgible is proud to work for a company with a strong ethical climate because he knows the organization supports ethical behavior.
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files:
Cost of goods sold $88,250
Work in process inventory, January 1, 2016 21,800
Work in process inventory, December 31, 2016 17,250
Selling and Administrative Expenses 20,400
Net Income 35,500
Factory overhead 21,650
Direct materials inventory, January 1, 2016 28,200
Direct materials inventory, December 31, 2016 15,375
Cost of goods manufactured 107,350
Finished goods inventory, January 1, 2016 35,675
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount in the finished goods inventory at December 31, 2016?
Answer:
$54,775
Explanation:
The computation of the finished goods inventory is shown below:
As we know that
Cost of Goods sold = Cost of goods manufactured + Opening stock of Finished goods - Closing stock of Finished goods
Now
Ending Stock of Finished goods = Cost of goods manufactured + Opening stock of Finished goods - Cost of Goods sold
So,
Ending Stock of Finished goods is
= $107,350 + $35,675 - $88,250
= $54,775
2. Damaged batteries need to be placed in an acld-resistant container or tub Immediately.
A) True
B) False
Yes, Damaged or broken batteries need to be placed in an acid-resistant container.
Batteries are hazardous items that require specific handling and care while being stored, disposed of, and so on.If necessary, temporarily store the battery or gadget in a non-flammable material such as soil or kitty litter.Learn more:
https://brainly.com/question/19937973?referrer=searchResults
In recent years, the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies. Also, the costs of extracting the copper increased due to higher energy prices. As a result, we observed:
Answer:
With this combination of events, we can expect to observe higher equilibrium copper prices.
Explanation:
The reasons is that there are two economic forces pushing the market-clearing price upwards: the economic growth in China shifting the demand curve rightwards, and the higher production costs raising the supply curve.
Because of the higher production costs, firms will have to raise the selling price of copper, and at the same time, the higher demand from China will prevent any fall in demand due to the higher prices, actually driving the price even higher.
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results: Sample SERVICE LIFE 49 525 470 500 515 480 505 500 505 513 460 470
1. What is the sample mean service life for sample 2?
A) 460 hours
B) 495 hours
C) 515 hours
D) 525 hours
2. What is the mean of the sampling distribution of sample means for whenever service life is in control?
A) 250 hours
B) 470 hours
C) 495 hours
D) 500 hours
E) 515 hours
3. If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?
A) sample 1
B) sample2
C) sample 3
D) both samples 2 and 3
E) all samples are in control
Answer:
1) 515 hours
2) 495 hours
3) Sample 3
Explanation:
As given,
Sample Service life
1 495 500 505 500
2 525 515 505 515
3 470 480 460 470
a.)
Sample mean service for sample 2 = [tex]\frac{525+515+505+515}{4} = \frac{2060}{4}[/tex] = 515
Correct option is C.
b.)
Mean of the sampling distribution = Average of all the samples
Average of sample 1 = [tex]\frac{495+500+505+500}{4} = \frac{2000}{4}[/tex] = 500
Average of sample 2 = [tex]\frac{525+515+505+515}{4} = \frac{2060}{4}[/tex] = 515
Average of sample 3 = [tex]\frac{470+480+460+470}{4} = \frac{1880}{4}[/tex]= 470
Now,
Mean of the sampling distribution = [tex]\frac{500+515+470}{3} = \frac{1485}{3}[/tex] = 495
Correct option is C.
c.)
For the sample to be in control, the Average has to be lie in between the upper and lower control limit
As
470 does not lie between 480 and 520
∴ we get
Sample 3 will be out of control.
Correct option is C.
Air Atlantic has leased out a 3-year old jet under a 10-year arrangement. The lease requires the lessee to pay Air Atlantic annual payments of $450,000 beginning next year. If Air Atlantic can invest at 10 percent annually, what is the lease arrangement worth to it
Answer:
$2,513,582.06
Explanation:
what is grants related to assets
Answer:
A government grant may take the form of a transfer of a non-monetary asset, such as land or other resources, for the use of the entity. In these circumstances it is usual to assess the fair value of the non- monetary asset and to account for both grant and asset at that fair value.
Explanation:
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The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 7,800 Units sold 5,500 Sales $ 1,100,000 Materials cost $ 156,000 Variable conversion cost used $ 78,000 Fixed manufacturing cost $ 702,000 Indirect operating costs (fixed) $ 110,000 The absorption costing operating income is:
Answer:
See below
Explanation:
Material cost
$156,000
Add:
Variable conversion cost used
$78,000
Add:
Fixed manufacturing cost
$702,000
Total manufacturing cost
$936,000
Unit product cost
= Total manufacturing cost / Units produced
= $936,000/7,800
= $120
Ending inventory in unit produced
= Units produced - Units sold
= 7,800 - 5,500
= 2,300 units
Ending inventory under absorption costing
= 2,300 units × $120
= $276,000