The Mahoney Company failed to accrue Rent Revenue on 12/31/23. The error was discovered on 2/1/24, before any cash was collected and after the 2023 books were closed. On 2/1/24, Mahoney would record:

Answer:

Break-even point (dollars)= $275,040

Explanation:

Giving the following information:

Selling price per unit $120

Variable cost per unit $90

Fixed expense per month $68,760

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 68,760 / [(120 - 90)/120]

Break-even point (dollars)= $275,040

Answer:

Option A is the right answer.

Explanation:

Bonds seems to be debt security during which the lender is obliged to pay compensation at regular time intervals as well as pay the money back the balance of the shareholder at intellectual ability.

So that alternative A would be the appropriate choice.

Bonds are like IOUS with a promise to repay the amount borrowed, with interest, on a certain date. Thus, option A is correct.

Bonds appear to be a type of financial instrument where the lender is required to provide periodical payments of compensation as well as to reimburse the shareholder for their remaining amount at the investor's intellectual discretion.

An Iou-like financial obligation is a bond. By purchasing corporate bonds, investors are making a loan to the corporation issuing the connection.  Bonds usually provide investors with a fixed rate of interest that is paid over a specified period of time at periodic times. In general, bonds are a less risky investment. Therefore, option A is correct.

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Answer:

2.11%

Explanation:

From the information given; we use the Excel spreadsheet to compute the  difference between this bond's YTM(Yield to maturity) and its YTC(Yield to call).

From the diagram; we will see that the

YTM(Yield to maturity) = 8.91%

YTC(Yield to call).= 6.81%

Therefore the difference between this bond's YTM and its YTC = (8.91 - 6.81)%

the difference between this bond's YTM and its YTC = 2.11%

Answer:

$4,500,000

Explanation:

current market price per stock $20

total stocks outstanding 500,000

corporation's total value = 500,000 x $20 = $10,000,000

investor's offer to purchase 100% at $14,500,000

controlling interest premium = $14,500,000 - $10,000,000 = $4,500,000

new price per stock = $14,500,000 / 500,000 = $29

The controlling interest premium equals the difference between the current market price of the stock and the purchase offer.

Answer:

C

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 price per pound of sugar is above equilibrium price, as a result the supply of sugar would increase while the demand for sugar would decrease. this would lead to a surplus. because at $1, supply would exceed demand, there would be an increase in inefficiency

Answer:

A surplus of sugar will occur, increasing inefficiency.

Explanation:

When the price of sugar is set above the market equilibrium price, the quantity supplied will be greater than the quantity demanded by consumers. Therefore, a surplus of sugar occurs that increases the level of inefficiency.

Answer: Stock of D is correctly priced at 10.08%

( for the beta of Stock A and D, I guessed you meant  0.89 and 0.80 respectively as opposed to 89 and 80 you put, so i corrected and solved accordingly.)

Explanation:

Expected return = Rf + beta ( Rm - Rf )

Rf =Risk free return = 3.6

Rm-Rf = Market risk premium = 8.1%

A) Stock Beta , Expected Return=   0.89,  7.83%

Expected return = 3.6 + 0. 89 (8.1) = 10.809%-- its over priced

B) Stock Beta , Expected Return=   1.52 12.59%

Expected return = 3.6 +  1.52(8.1) = 15.912%---- its over priced

B) Stock Beta , Expected Return=   1.25 11.27%

Expected return = 3.6 +  1.25(8.1) = 13.725 %--- its overpriced

c) Stock Beta , Expected Return=   1.27 14.50%

Expected return = 3.6 +  1.27(8.1) = 13.887%---- Its underpriced

d) Stock Beta , Expected Return=    0.80 10.08%

Expected return = 3.6 + 0. 80(8.1) =  10.08%---- Correctly priced

Answer:

The market price if the bond has a par value of $2,000 is A. $1,790.11

Explanation:

The Market Price, PV of the Bond can be determined as follows :

PMT = $2,000 × 5.80% = - $116

P/yr = 1

YTM = 7 %

n = 14

Fv = - $2,000

Pv = ?

Using a financial calculator, the Market Price, PV is $1,790.1088 or $1,790.11.

A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)

Answer:

$4230

Explanation:

Given that, the sales revenue to the dishwashers is equal to $94,000

Also the company estimated  warranty expense cost is equal to 4.5% of revenues,

Thus, the estimated warranty payable can be determined by the following formula:

Annual sales revenue for the dishwashers * warranty expense revenues

= $94,000 * 4.5% = $94,000 * 0.045

= $4230

Hence, the total estimated warranty payable of A Plus Appliances as of December​ 31, 2019 = $4230

Answer:

Future Value of Annuity = $5279.94

Explanation:

An annuity is a series of cash flows that are constant, occur after equal intervals of time and are for a definite and limited time period. The future value of an annuity is calculated using the attached formula,

Future Value of annuity = 900 * [((1+0.08)^5 - 1) / 0.08]

Future Value of Annuity = $5279.94

Answer: False

Explanation:

Bond interest is determined in part by the riskiness of the Issuer of the bond. The United States is one of the most trust-worthy countries in the world and this is reflected by the US T-bills being considered a risk-free asset the world over.

The less risky an asset is, the less interest it has to pay as it does not have to compensate its investors for more added risk. A United States Bond is definitely safer than an Eastern European Government bond who are not as developed as the Western Europeans speaking in an unbiased manner. Therefore the US Bond will pay a lower interest relative to a bond of an Eastern European government.

Answer:

The interest on notes is calculated as follows

Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)

= $695,000 * 6% * 9/12

=$31,275

Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account

                                 General Entry

Date         Account Title and Explanation     Debit            Credit

30 Sep.    Notes payable                                $695,000

                Interest payable                              $31,275

                Cash                                                                      $726,275

                (To record the amount to be paid at maturity)

Answer:

the amount of money that must be invested now is $21068.87

Explanation:

Given that:

Nominal interest = 10%

Annuity = 7000

n = 8 years

The Effective interest rate is calculated by using the formula:

Effective interest rate = [tex]( 1 + \dfrac{r}{100 \times n})^n-1[/tex]

Effective interest rate = [tex]( 1 + \dfrac{10}{100 \times 8})^8-1[/tex]

Effective interest rate = 0.1045

Effective interest rate = 10.45 %

Thus ; the the amount of money that must be invested now​  is the present value with the annuity of ​$7, 000 per year for 12 ​years, starting eight years from now.

[tex]PV = 7000(\dfrac{(1+ 0.1045)^{12}-1}{0.1045(1 + 0.1045)^{12}})( \dfrac{1}{(1+ 0.1045)^8})[/tex]

PV = 7000 × 6.666056912 × 0.4515171371

PV = $21068.87

Thus; the amount of money that must be invested now is $21068.87

Answer:

Equivalent units= 486 units

Explanation:

Giving the following information:

Units completed= 450

Ending work in process= 60 units

The ending inventory is 20% complete for materials and 60% complete for labor and overhead.

To calculate the equivalent units of production, we need to use the following formula:

Units started and completed = units completed - beginning WIP

Ending work in process completed= Ending WIP* %completed

=Number of equivalent units

Units started and completed = 450 - 0= 450

Ending work in process completed= 60*0.6= 36

= 486 units

Answer:462

Explanation:

Answer:

Its quick purchase and distribution of products and impeccable marketing.

Other retailers could implement or borrow are their branding strategies and eliminate costly and expensive management steps.

Explanation:

One of the main elements of Costo's success is its efficient and extremely competitive marketing strategy. In addition to this, product management strategies were also extremely effective in this company. This is because Costo manages the purchase and distribution of its products very quickly, preventing their shortages. This is done through purchases made in direct contact with suppliers, who send the products directly to the company's warehouses, which causes numerous steps in the supply process (made by producers and intermediaries) to be eliminated, thus ensuring speed and less economic expense.

Answer:

Forecasted contribution margin income statement for 2020

Sales (10,400 units at $280 each)                   $ 2,912,000

Variable costs (10,400 units at $202 each)   ($ 2,100,800)

Contribution margin                                              $ 811,200

Fixed costs ($567,000 + $44,500)                    ($ 611,500)

Pretax Income                                                      $199,700

Explanation:

Adjust the 2019 Contribution Income Statement by :

Answer: discount rate

Explanation:

It should be noted that the discount rate is the rate that is charged by the Federal Reserve when any of its member banks borrow money from it.

Therefore, Federal Reserve member bank, the Bank of Bramblewood will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the discount rate.

Answer: $100M

Explanation:

This is a bit of a trick question but when you come into contact with such questions remember this, stock splits do not change the total Market Capitalization. Market Cap is the total cash value of the company's stock in the market. A split would increase the number of shares outstanding but the market cap will remain the same because the shares will decrease in value.

Answer:

The required reserve ratio is $17500 million.

Explanation:

The given deposit with the banks = $500 million

Required reserves = $35 million

We already have the deposits with the bank and the required reserves.  Now we have to calculate the required reserve ratio and it can be calculated by multiplying the bank deposit with required reserves.

Required reserve ratio = Bank deposits × Required reserve

= 500  × 35

= $17500 million

Answer and Explanation:

The journal entries are shown below:

On Mar 1

Notes Receivable $60,000  

        To Accounts Receivable  $60,000

(Being the note receivable is recorded)

On Mar 18

Notes Receivable $25,000  

       To Accounts Receivable  $25,000

(Being the note receivable is recorded)

On Apr 30

Accounts Receivable $60,600  

         To Notes Receivable  $60,000

         To Interest Revenue ($60,000 × 2 ÷ 12 × 6%) $600

(Being the note receivable and interest revenue is recorded)

On May 17

Accounts Receivable $25,375  

          To Notes Receivable  $25,000

          To Interest Revenue ($25,000 × 9% × 2 ÷ 12)  $375

(Being the note receivable and interest revenue is recorded)

On Jul 29

Cash $61,812  

          To Accounts Receivable  $60,600

          To Interest Revenue (60,600 × 8% × 90 ÷ 360) $1,212

(Being the note receivable and interest revenue is recorded)

On Aug 23

Allowance for Doubtful Accounts $25,375  

        To Accounts Receivable  $25,375

(Being the allowance for doubtful debts is recorded)

Answer and Explanation:

Respected Sir,

Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions

As per your requirement please find the explanation below:

Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.

Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.

Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.

The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.

Regards

ABC

Answer:

Consolidated Balance Sheet:

Balance Sheet

                                                     Parent          Subsidiary   Consolidated

Assets

Cash                                           $910,500      $201,600     $1,112,100

Accounts receivable                   384,000         417,600        801,600

Inventory                                     582,000        536,400     1,118,400  

Equity investment                   2,200,000                            0

Property, plant and

equipment (PPE), net             2,799,600      1,492,400      4,292,000

License Agreement                                         250,000        250,000

Customer List                                                   100,000         100,000

Goodwill                                                                               1,000,000

Total Assets                           $6,876,100 $2,998,000     $8,674,100

Liabilities & stockholders' equity

Accounts payable                     $188,100      $127,000           315,100

Accrued liabilities                     220,800        221,000           441,800

Long-term liabilities               1,000,000       600,000       1,600,000

Unrealized gain from fair value:

Building                                                           500,000       500,000

License Agreement                                       250,000       250,000

Customer List                                                 100,000        100,000

Common stock                        220,000        120,000        220,000

APIC                                       3,740,000        150,000     3,740,000

Retained earnings                 1,507,200       930,000      1,507,200

Total liabilities and equity   $6,876,100  $2,998,000  $8,674,100

Explanation:

a) Data:

Balance Sheet

                                                     Parent             Subsidiary

Assets

Cash                                           $910,500           $201,600

Accounts receivable                   384,000              417,600

Inventory                                     582,000             536,400

Equity investment                   2,200,000

Property, plant and

equipment (PPE), net             2,799,600            992,400

Total Assets                           $6,876,100        $2,148,000

Liabilities & stockholders' equity

Accounts payable                     $188,100           $127,000

Accrued liabilities                     220,800             221,000

Long-term liabilities               1,000,000            600,000

Common stock                        220,000             120,000

APIC                                       3,740,000             150,000

Retained earnings                 1,507,200            930,000

Total liabilities and equity   $6,876,100        $2,148,000

b) For the consolidated balance sheet, the assets and liabilities of the parent and subsidiary are consolidated based on their fair values.  The investment in the subsidiary is eliminated.  If the assets increased in their fair values, unrealized gains on fair values are created for the revalued assets.  On the equity side, the subsidiary's equity is eliminated.  Any difference is attributed to Goodwill on acquisition.

Answer: True

Explanation:

Output is always maximised where Marginal Benefit is above Marginal Cost. Ideally speaking, Marginal Benefits should be equal to Marginal Costs but Marginal Benefits being greater than cost is still a good thing because it means that there is still room for expansion until such a point as the MB = MC.

However, if it starts costing more per unit to gain a benefit per unit MB < MC, the decision makers can know to limit the activity because this will cause losses. This is why it is better to make decisions at a Marginal level so that one may know when output is maximised as well as when to rein in production.

Answer:

1. Ordinary maintenance and repairs.

a) Adding refrigerant to an air conditioning system.

b) Fixing damage due to a car accident.

e) Exterior and interior painting.

2. Assets improvements

c) Installing a new air conditioning system in an old building.

d) Paving a new parking lot.

h) New landscaping.

3. Extra ordinary repairs.

f) Overhauling an engine in a large truck.

g) Resurfacing a pool in an apartment building.

Explanation:

Assets improvements: this are improvements carried out on an assets for comfort and ease of use of such assets. Example is the installation of air conditioning unit in an old building.

Ordinary maintenance and repairs: this are maintenance and repairs carried out on machines, equipment and tools to bring them to the required working conditions or standard.

Extraordinary repairs: unlike ordinary maintenance and repairs this requires overhauling or changing of heavy components parts of a machine or equipment.

Answer:

APR = 2.43%

EAR = 2.46%

Explanation:

(a) What is the APR on this loan?

Annual percentage rate (APR) is the yearly interest rate that a borrower pays or an investor earns. It is expressed in percentage term without taking compounding into consideration.

This can be calculated using the Annual Percentage Rate (APR) formula as follows:

APR = {[(Fees + Interest amount) / Principal / n] * 365} * 100 ……………… (1)

Where;

APR = ?

Fees = 0

Interest amount = Interest rate * Purchase price = 85% * $3,350,000 = $2,847,500

Principal = Purchase price = $3,350,000

n = Number of days in the mortgage term = 365 days * 35 years = 12,775 days

Substituting the values into equation (1), we have:

APR = {[(0 + 2,847,500) / 3,350,000 / 12,775] * 365} * 100

APR = 2.43%

(b) What is the EAR on this loan?

The Effective Annual Rate (EAR) refers to the interest rate earned by an investor in a year after the compounding has been adjusted for over a specified period.

This can be calculated using the Effective Annual Rate (EAR) formula as follows:

EAR = (1 + i/n)^n – 1 ..................... (2)

Substituting the values into equation (2), we have:

i = Stated annual interest rate = APR = 2.43%, or 0.0243

n = Number of compounding periods = 12

EAR = (1 + 0.0243/12)^12 – 1

EAR =  0.0246, or 2.46%

Answer:

The current bond price (PV) is $878.16.

Explanation:

The current bond price (PV) can be calculated by compiling the following data :

FV = -$1,000

n = 10

Pmt = $1,000 × 8.20% = -$82

P/yr = 1

YTM = 10.20%

Pv = ?

Using a Financial Calculator, the current bond price (PV) is $878.1575 or $878.16.

Answer: 18.18% decease

Explanation:

The Midpoint formula uses the average Price (as denominator) to calculate the change in price instead of the original price by the following formula;

% Decrease in price = Change in price / Average price

= (50 - 60) / ((60 + 50)/2)

= -10 / (55)

= -0.1818

= -18.18%

Using the midpoint formula, a decrease in price from $60 to $50 per bathing suit represents an 18.18% decrease in price.

Using the midpoint formula, a decrease in price from $60 to $50 per bathing suit represents a 18.18% decrease in price.

It calculates the percentage change in price of a good by dividing change in price to the average price of the good.

Following is the formula

% Decrease in price = Change in price / Average price

Solution:

old price = 60, new price = 50, Change in price = -10

⇒  (50 - 60) / ((60 + 50)/2)

⇒ -10 / (55)

⇒ -0.1818

⇒ -18.18%

Hence, by using the midpoint formula, we can say that bathing suit represents a -18.18% decrease in price.

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Answer:

Earnings of Workers:

                             Rates Systems

Worker  Straight Piece   Merrick's Differential Piece

A                $35.10                   $28.08

B                $40.50                  $32.40

C               $54.00                  $64.80

Explanation:

a) Data:

Normal rate per hour: Rs. 5.40

Standard time per unit: 1 minute

Output per day is as follows.

Worker A – 390 units  

Worker B – 450 units

Worker C – 600 units

Working hours per day are 8

b) Calculations:

i) Standard units per day = 8 x 60 minutes = 480 units

ii) Earnings per day is as follows.

Worker A – 390 units :

Straight piece Wages = 390 / 60 x $5.40 = $35.10

Merrick's Earnings = 390/60 x $5.40 x 0.8 = $28.08

Worker B – 450 units :

Straight piece Wages = 450 / 60 x $5.40 = $40.50

Merrick's Earnings = 450/60 x $5.40 x 0.8 = $32.40

Worker C – 600 units:

Straight piece Earnings = 600 / 60 x $5.40 = $54

Merrick's Earnings = 600/60 x $5.40 x 1.2 = $64.80

c) The factor for multiplying the rate is obtained by dividing the units produced by the number of minutes in an hour, in order to convert output to a rate based on the hour.

d) The standard output per day helps Merrick in calculating the weights to be assigned to each worker and differentiate the slow worker from the superior worker (hence, the name: Merrick's Differential Piece Rate).  The slow workers (those who produce below the standard output) are paid a rate lower than the standard rate by adding a weight of 0.8  as a punishment while the superior worker is assigned a weight of 1.20 as a reward for good performance.  Meanwhile, a standard performer who produced 480 units will be paid the normal rate or weighed as 1.0.  

Answer:

The answer is B. 8.4%

Explanation:

To solve this, we will use Capital Asset Pricing Model(CAPM)

Stock’s annual expected return=

Rf + beta(Rm-Rf)

Rf is the risk free rate

Risk premium is (Rm-Rf) - the difference between market interest rate and the risk free rate.

Rf is 3.7%

Risk premium is 5.6%

Beta is 0.84

3.7% + 0.84(5.6%)

3.7% + 4.7%

= 8.4%

Answer:

16,002

Explanation:

A company has the following budget information

Sales = $118,000

COGS= $48,500

Depreciation expense= $1,500

Interest expense= $250

Other expense= $41,880

The company budgets 40% for income tax expense

= 40/100

= 0.4

The first step is to calculate the total expense incurred in the company

Total expense= COGS+depreciation expense+Interest expense+Other expenses

= $48,500+$1,500+$250+$41,880

= $92,130

The next step is to calculate the pre-tax income

Pre-tax income= Sales-total expenses

= $118,800-$92,130

= $26,670

The next step is to calculate the income tax expense

Income tax expense= $26,670×0.4

= $10,668

Therefore, the budgeted net income can be calculated as follows

Budgeted net income= Pre-tax income-income tax expense

= 26,670-10,668

= 16,002

Hence the budgeted net income is 16,002

Answer:

$308,500.85

Explanation:

$181,000 eight years ago in real dollars was $181,000 / 162 = $111,728.40

new boiler with a 1.42X capacity x capacity factor = 1.42 x 0.8 = 1.136 (the price of the new boiler is 1.136 times the old boiler)

current price of the new boiler in real dollars = 1.136 x $111,728.40 = $126,923.46

real dollars converted to current nominal dollars = $126,923.46 x 2.21 = $280,500.85

price of the new boiler + additional optional features = $280,500.85 + $28,000 = $308,500.85