Answer:
cash 33,860 debit (+assests)
common stock 33,860 credit (+equity)
---
no entry required
--
furniture 3,850 debit (+assets)
account payable 3,850 credit (+liabilities)
---
accounts receivables 10,620 debit (+assets)
commissions revenues 10,620 credit (+revenue / +equity)
---
cash 220 debit (+assets)
commissions revenues 220 credit (+revenue / +equity)
---
Accounts Payable 790 debit (- liaiblities)
cash 790 credit (- assets)
---
Salaries expense 2,610 debit (+ expense / - equity)
cash 2,610 credit (-assets)
Explanation:
We do the journal entries following the accounting rules
debit = credit
and we usethe accoutnign equation analysis
Assets + Expenses = Liablities + Equity + Revenues
DEBIT CREDIT DEBIT CREDIT
+ + + - - - - - - + + +
The left side increase from debit and decrease from credit
while the element of the right side increase through credit and decrease by debit
On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:
a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $17,500.
b. Purchased supplies on account, $2,300.
c. Earned sales commissions, receiving cash, $13,300.
d. Paid rent on office and equipment for the month, $3,000.
e. Paid creditor on account, $1,150. Paid dividends, $1,800.
f. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
g. Paid office salaries, $2,800.
Determined that the cost of supplies used was $1,050.
Answer:
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1, 800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Dr Salaries expense 2,800
Cr Cash 2,800
i. Dr Supplies expense 1,050
Cr Supplies 1,050
Explanation:
Preparation of Journal entry
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1, 800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
(1,500+400)
h. Dr Salaries expense 2,800
Cr Cash 2,800
i. Dr Supplies expense 1,050
Cr Supplies 1,050
Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown below. Best
Buy Co, Inc.
Balance Sheet
At January 28, 2017
($ in millions)
Assets
Current assets:
Cash and cash equivalents $2,240
Short-term investments 1,681
Accounts receivable (net) 1,347
Inventory 4,864
Other current assets 384
Total current assets 10,516
Long-term assets 3,340
Total assets $13,856
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $4,984
Other current liabilities 2,138
Total current liabilities 7,122
Long-term liabilities 2,025
Shareholders’ equity 4,709
Total liabilities and
shareholders’ equity $13,856
Best Buy Co, Inc.
Income Statement
For the Year Ended January 28, 2017
($ in millions)
Revenues $39,403
Costs and expenses 37,549
Operating income 1,854
Other income (expense) (38)
Income before income taxes 1,816
Income tax expense 609
Net income $1,207
Includes $72 of interest expense.
Required:
1-A. Calculate the current ratio for Best Buy for its fiscal year ended January 28, 2017.
1-B. Calculate the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017.
1-C. Calculate the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017.
1-D. Calculate the times interest earned ratio for Best Buy for its fiscal year ended January 28, 2017.
Answer
A)=1.47655 times
B)0.74 times
C)1.94 times
D)26.2 times
Explanation
The formulas and calculations are shown below:
1-A)the current ratio for Best Buy for its fiscal year ended January 28, 2017.
= Total Current assets ÷ total current liabilities=[10516 ÷ 7122]
=1.47655
1-B)the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated below as
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
=2240 + 1681 + 1347=5268
the current liabilities = 7122
If we substitute the values into the above expresion, we have
=$ 5652 ÷ $7122
= 0.74 times
1-C.) the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017.
Debt equity ratio = (Total debt ÷ Shareholders’ Equity)
where,
Total debt = Total current liabilities + Long-term liabilities
Total current liabilities =$ 9147
the Shareholders’ equity is $4709
If we substitute the values we have,
$9147 ÷$ 4709
= 1.94 times
1-D. Calculate the times interest earned ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated as
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
Earnings before interest and taxes = Income before income tax + Interest expense + income tax expense
$1854 - $38 + $72
=$1888
Interest expense=$72
Then substitute into above expresion, we have
=$ 1888 ÷$ 72
= 26.2 times
Which feature would clickstream analysis typically capture?
A.
eye color of the consumer
B.
typing speed of the consumer
C.
model of the mouse on the consumer’s machine
D.
last web page the consumer visited
Answer:
d
Explanation:
Answer:
D
Explanation:
Last web page the customer visited a click stream is an events of hyper link clicks that leave a paper trail behind. plus a good tip to always remember is that when something is free you are the product. and data sells
How have the evolving business environment and the emergence of free agent workers affected make-or-buy talent decisions?
The evolving business environment and emergence of free agent workers affected have led to more rigorous processes before hiring workers.
What is Hiring?This is defined as the process of employing workers for different roles in an organization.
The increase in free agent workers and evolving business environment have led to more rigorous recruitment processes to get the best results.
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SNC is considering working with Nutrilife on a half-size contract for its herbal nutraceutical product line, with an incremental sales benefit to the top line of $2 million (a one-time 20% increase). In addition, Ayurveda Naturals, the India-based supplier of herbs for the Nutrilife contract, is offering very favorable payment terms: 2/30 net 60. In other words, SNC could lower its accounts payable liability to $153,000 by paying Ayurveda Naturals within 30 days, thereby realizing a 2% discount on raw materials. What would you like to do about this opportunity?Accept or Decline2013 2014 2015 Post 2015Incremental Summary Income Statement ($ in thousands)Sales $2,000 $2,000 $2,000 $2,000Cost of Sales $1,833 $1,833 $1,833 $1,833EBIT $167 $167 $167 $167Incremental Balance Sheet ($ in thousands)Accounts Receivable $603 $603 $603 $603Inventories $452 $452 $452 $452Accounts Payable $151 $151 $151 $151
Answer and Explanation:
Answer and explanation attached
Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
(Pairs per hour of labor) (Bushels per hour of labor)
Bellissima 8 16
Dolorium 5 20
Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Bellissima produces 8 million pairs of jeans and 48 million bushels of rye, and Dolorium produces 15 million pairs of jeans and 20 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn. Therefore, (Bellissima, Felicidad) has a comparative advantage in the production of jeans, and (Bellissima, Felicidad) has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per month, and the country that produces corn will produce _____ million bushels per month.
Answer:
Bellisima's opportunity cost:
Production of corn per million hours of labor = 8 / 16 = 0.5 pairs of jeans Production of jeans per million hours of labor = 16 / 8 = 2 bushels of ryeDolorium's opportunity cost:
Production of corn per million hours of labor = 5 / 20 = 0.25 pairs of jeans Production of jeans per million hours of labor = 20 / 5 = 4 bushels of ryeDolorium has a comparative advantage int he production of rye while Bellisima has a comparative advantage in the production of jeans.
If both countries specialize:
Dolorium will produce 80 million bushels of rye. Bellisima will produce 32 million pairs of jeans.Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 9 million pairs.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them
The potential cost of Bellisima is calculated as follows:
8/16 = 0.5 pairs of jeans were produced for every million hours of labor in the production of maize.
16/ 8 = 2 bushels of rye are produced for every million hours of work spent producing jeans.
The opportunity cost of delirium
The amount of maize produced for one million hours of work is 5/20, or 0.25 pairs of jeans.
20/5 = 4 bushels of rye are produced for every million hours of work spent producing jeans.
In the cultivation of rye, Dolorium has a comparative advantage, whereas Bellisima has a comparative advantage in the manufacture of jeans.
If both nations have specialized:
Eighty million bushels of rye will be produced at Dolorium.
32 million pairs of jeans will be produced by Bellisima.
Rye production has gone up by 12 million bushels overall.
Nine million additional pairs of jeans have been produced overall.
Making smarter decisions requires an understanding of the possible possibilities lost when a company or person chooses one investment over another.
Opportunity cost is the advantage that was lost because a particular alternative was not selected. It is necessary to examine the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs. Opportunity costs have a value that may help people and businesses make more lucrative decisions.
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We know that most decisions are in part, based on expectations of the future. Suppose we have two people who are trying to decide whether to consume today (assume it is currently January 2008) or save for the future and consume one year later, in January 2009. One person, let's call him Joe, is basing his decision on the ex-ante real rate of interest like most of us do. The other person who has a crystal ball, we'll call her Crystal, can see exactly what the actual rate of inflation is going to be and thus, has perfect foresight and bases her decision on the ex-post real rate. Look at the difference in the ex-ante and ex-post real rates you calculated in #25 and # 26 above. Who would be more likely to save and who would be more likely to spend? A. Both Joe and Crystal are savers. B. Both Joe and Crystal are spenders. C. Crystal saves, Joe spends. D. Crystal spends, Joe saves.
Please see attachment for full question
Answer and Explanation:
please see attachment for answer and explanation
Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost. Case 1 Case 2 Case 3Direct material used 15,000 14,100Direct labor 18,000 Manufacturing overhead applied 11,500 Total current manufacturing costs 27,500 28,500Beginning work in process inventory 9,900 8,000Ending work in process inventory 5,900 9,900 Cost of goods manufactured 44,000 26,001Beginning finished goods inventory 4,700 12,000 Ending finished goods inventory 7,600 6,200Cost of goods sold 41,000 36,000Required:Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.)
Answer:
For Case 1:
Manufacturing overhead applied = 27,000
Total current manufacturing costs = 60,000
Cost of goods manufactured = 64,000
Cost of goods sold = 61,100
For Case 2:
Direct labor = 7,667
Direct material used = 8,333
Beginning work in process inventory = 26,400
Ending finished goods inventory = 15,000
For Case 3:
Direct labor = 5,760
Manufacturing overhead applied = 8,640
Ending work in process inventory = 10,499
Beginning finished goods inventory = 16,199
Explanation:
Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the table with the computed figure in bold red color.
In the attached excel file, the following calculations are employed:
For Case 1:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:
Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000
Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000
Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000
Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100
For Case 2:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:
Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667
Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333
Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400
Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000
For Case 3:
Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:
Direct labor = x
Therefore, we have:
Manufacturing overhead applied = x * 150%
Since,
Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)
Where;
Total current manufacturing costs = 28,500
Direct material used = 14,100
We can therefore substitute the relevant values into equation (1) and solve for x as follows:
28,500 = 14,100 + x + 1.5x
28,500 - 14,100 = 2.5x
14,400 = 2.5x
x = 14,400 / 2.5
x = 5,760
Therefore;
Direct labor = x = 5,760
and
Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640
Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499
Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199
Several transactions for Trolley, Inc. are presented below. The company adjusts its books only at year-end.
a. On August 1, the company rented some land from another company for $2,660 for a three-year time period. Trolley charged an expense account on August 1.
b. On February 1, Trolley received $8,000 for a four-year technical service contract. Trolley is performing the services evenly over the four-year period. The company credited a liability account, Unearned Service Revenue, on February 1.
c. On May 1, Trolley loaned $3,400 to another company on a 12%, one-year note.
d. The weekly (five-day) payroll of Trolley amounts to $2,500. All employees are paid at the close of business each Friday. December 31 falls on a Thursday.
Required:
Prepare the adjusting entries for December 31.
Answer: See explanation
Explanation:
It should be noted that adjusting entries are normally made at the conclusion of an accounting period so that the income and expenditure will be allocated to the particular period when they took place.
Prepaid rent is calculated as:
= 2660 × (36-5)/36
= 2660 × 31/36
= 2290.56
Unearned revenue:
= 8000 × 11/48
= 1833.33
Accrued interest:
= 3400 × 12% × 8/12
= 3400 × 0.12 × 8/12
= 272
Salary expense:
= 2500 × 4/5
= 2000
The adjusting entry has been attached.
You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T T+1 A 1,000,000 60 80 B 10,000,000 20 35 C 30,000,000 18 25 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.c. Briefly discuss the difference in the results for the two indexes.
Answer and Explanation:
Please find answer and explanation attached
Suppose that both the number of buyers and the number of sellers increase. Which of the following will occur?
a. The equilibrium quantity will increase and the equilibrium price will increase.
b. The equilibrium quantity will increase and the effect on the equilibrium price is undetermined.
c. The total effect on equilibrium price and quantity is undetermined.
d. The equilibrium price will increase and the effect on the equilibrium quantity is undetermined.
e. The equilibrium quantity will increase and the equilibrium price will decrease.
Answer:
The answer is B.
Explanation:
If both the number of buyers and the number of sellers increase in a market for a specific product, this results in the equilibrium quantity's increase because of the increase in both supply and demand.
The equilibrium price however depends on other variables and factors so it cannot be determined in this example.
So the correct answer is B.
I hope this answer helps.
You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: tt & t Inc. and Phonez Corp. corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis:
TT &T Inc. Phonz Crop.
EBIT $175,000 $124,600
Depreciation $70,000 $49,840
Total operating capital $1,029,000 $802,900
Net investment in operating capital $490,000 $259,000
WACC 8.84% 11.50%
In your analysis, you want to look for several characteristics-one of them being the return on invested capital (ROIC). Using the information available, complete the following statements:
TT&T inc. has a ______________free cash flow than Phonez Corp. does. The net operating profit after tax (NOPAT) for tt&t inc. is___________, whereas the NOPAT for Phonez Corp. is_________. TT&T inc. has a return on invested capital of_________, whereas, Phonez Corp. has a return on invested capital of___________
Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true?
a. If ROIC is less than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value.
b. If ROIC is greater than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value.
On November 1 of the current year, Rob Elliot invested $30,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150 and total stockholders' equity of $37,785.
Cash Accounts Accounts Common Retained Fees Supplies
Recivable Land Payable Stock Earnings Dividends Earned Expense
$8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00
Utilities Wages Miscellaneous
Expense Expense Expense
$4,625.00 $1,220.00 $400.00
Balance Income Retained Earnings
Sheet Statement Statement Amount
1. What is the amount reported for total
liabilities and stockholders' equity on
December 31? $54,400.00
2. What is the retained earnings amount
reported on December 31? $8,455.00
3. How much does GGE Enterprises Inc.
owe to its creditors?
4. How much cash is being held by GGE
Enterprises Inc.? $30,550.00
5. By what amount did retained earnings
increase or decrease during the period?
6. What is the amount of profit or loss during
December?
7. What were the total expenses for December? $9,205.00
8. How much was paid for utilities?
Answer:
1. What is the amount reported for total liabilities and stockholders' equity on December 31?
$56,150 (same as total assets)
2. What is the retained earnings amount reported on December 31?
= total equity - common stock = $37,785 - $30,000 = $7,785
3. How much does GGE Enterprises Inc. owe to its creditors?
accounts payable = $56,150 - $37,785 = $18,365
4. How much cash is being held by GGE Enterprises Inc.?
cash = $56,150 - $8,350 - $15,500 = $32,300
5. By what amount did retained earnings increase or decrease during the period?
$7,785 - $5,000.00 from Nov. = $2,785
6. What is the amount of profit or loss during December?
profit = increase in retained earnings + dividends = $2,785 + $5,750 = $8,535
7. What were the total expenses for December?
total expenses = fees earned - December's profit = $27,250 - $8,535 = $18,715
8. How much was paid for utilities?
$18,715 - $6,450 - $4,625 - $1,220 - $400 = $205
Explanation:
the numbers are all mixed, so I looked for a similar question:
Cash ? = $56,150 - $8,350 - $15,500 = $32,300
Accounts Receivable $8,350.00
Land $15,500.00
Accounts Payable ? = $56,150 - $37,785 = $18,365
Common Stock ? $30,000
Retained Earnings = $37,785 - $30,000 = $7,785 ($5,000.00 from Nov. + $2,785 from Dec.)
Dividends $5,750.00
Fees Earned $27,250.00
Supplies Expense $6,450.00
Utilities Expense ?
Wages Expense $4,625.00
Rent Expense $1,220.00
Miscellaneous Expense $400.00
Your younger sister is just starting high school, and 5 years from today she should be entering college. Your father plans to start a college fund for her, beginning today. He will invest $5,000 per year in a mutual fund, beginning today, and he expects to earn an annual return of 8%. What is the expected value of the college fund when your sister enters college?
Answer:
FV= $29,333
Explanation:
Giving the following information:
Number of periods= 5 years
Annual investmemnt= $5,000
Interest rate= 0.08
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.08^5) - 1]} / 0.08
FV= $29,333
Considering the following labor markets. A slightly different feature of labor markets is that employees are the suppliers of labor and firms are the demanders of labor. Assuming an identical inward shift of the demand curve, which market will cause a higher level of unemployment due to the demand shift, as measured by the number of jobs lost due to the demand shift (not the absolute number of jobs)? Note: We are assuming we are in an industry with market power. While this is not necessarily the best assumption for a labor market, it is reasonable in the presence of a strong labor union.
Answer:
i added the graph of both markets as an attachment
The answer is market B or 2. This market a higher level of unemployment.
When elasticity of supply increases, we have it that the suppliers would have greater market power.
In market B, we have it that the elasticity of supply is bigger than that if A. This means that the supplier has more market power in this market than in market A.
Since the elasticity us greater in this market, then we would have change in unemployment due to a fall in demand to be more here than in A.
Amber, a publicly held corporation, had been paying its chief executive officer (CEO) an annual salary of $900,000. Amber instituted a performance-based compensation plan, effective January 1, 2017, that increased the CEO's 2017 compensation by $300,000. It is anticipated that the plan will provide an additional $350,0000 in 2019. Prepare a letter to Amber's board of directors explaining how much of the CEO's 2019 compensation is deductible and the consequences of any changes that might be made to the compensation plan in 2019. Address the letter to the board chairperson, Angela Riddle, whose address is 100 James Tower, Cleveland, OH 44106. Dear Ms. Riddle:
I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president. The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan. In 2017, the president earned an additional $300,000 under her revised contract. This amount increased to $350,000 in 2018 and 2019, and it is projected that she will increase her earnings by $350,000 under this plan in 2020.
In general, any salary paid to the president in excess of $_______ is deemed excessive executive compensation and not deductible. Before 2018, compensation earned under a performance-based compensation option was not subject to this limitation. Therefore, in 2017, Amber deducted $________ as compensation.
Answer:
Amber
October 8, 2020
Attn: Angela Riddle
The Board Chairperson
Amber Corporation
100 James Tower
Cleveland, OH 44106
Dear Ms. Riddle,
Re: President's Performance-based Compensation
I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president.
The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan.
In 2017, the president earned an additional $300,000 under her revised contract. This amount increased to $350,000 in 2018 and 2019, and it is projected that she will increase her earnings by $350,000 under this plan in 2020.
In general, any salary paid to the president in excess of $_1 million______ is deemed excessive executive compensation and not deductible. Before 2018, compensation earned under a performance-based compensation option was not subject to this limitation. Therefore, in 2017, Amber deducted $__1.2 million______ as compensation.
I hope that the above clarifies the issue.
Yours sincerely,
Tony Ohagwam, FCCA
Chief Finance Officer
Explanation:
This is an official letter to the Chairperson of the Board of Directors of Amber Corporation. In this letter, the issue of the President's compensation and the tax deduction for the corporation is clearly presented. It is the writer's hope that the subjects of the enquiry are adequately resolved.
The difference between the revenue from selling inventory and the cost of that inventory is measured as:
Answer:
Gross Profit
Explanation:
Gross Profit is calculated as Selling Price less Cost of Goods Sold. Gross Profit is found in Trading Account.
What is market demand?
a. The subtraction of the individual quantities demanded by each buyer in a market at each price.
b. The addition of the individual prices of the product at each level of quantity.
c. The multiplication of the prices of each product by the individual quantities demanded by each buyer in a market.
d. The division of the total spending by an individual buyer by the prices paid for the product.
e. The addition of the individual quantities demanded by each buyer in a market at each price
Answer:
e. The addition of the individual quantities demanded by each buyer in a market at each price
Explanation:
Among the options given above, the selected is the best explanation to what a market demand happens to be. The quantity of goods demanded by each individuals when added together gives an idea of what the market demand is for that particular goods.
Hentzel Landscaping commenced its business on January 1, 20X1. During its first year of operations, Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1. On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue. The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made. The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2. On January 1, 20X1, the company purchased 10 lawnmowers at $3,000 each. It debited fixed assets. The lawnmowers are expected to last for three years with no salvage value. On December 31, 20X1, Hentzel did not record any adjusting entries with respect to these transactions.
Required:
Prepare all adjusting entries necessary to prepare financial state.
Answer:
Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1.
December 31, 20x1, supplies expense adjusting entry
Dr Supplies expense 9,000
Cr Supplies 9,000
On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue.
December 31, 20x1, deferred revenue adjusting entry
Dr Deferred landscaping revenue 6,000
Cr Landscaping revenue 6,000
The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made.
December 31, 20x1, gasoline expense adjusting entry
Dr Gasoline expense 2,500
Cr Gasoline payable 2,500
The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2.
December 31, 20x1, interest expense adjusting entry
Dr Interest expense 1,875
Cr Interest payable 1,875
On January 1, 20X1, the company purchased 10 lawnmowers at $3,000 each. It debited fixed assets. The lawnmowers are expected to last for three years with no salvage value.
December 31, 20x1, depreciation expense adjusting entry
Dr Depreciation expense 1,000
Cr Accumulated depreciation, lawnmowers 1,000
Preparation of all adjusting entries necessary to prepare financial statement.
Hentzel Landscaping
Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1.
December 31, 20x1, supplies expense adjusting entry
Dr Supplies expense 9,000
Cr Supplies 9,000
On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue.
December 31, 20x1, deferred revenue adjusting entry
Dr Deferred landscaping revenue 6,000
Cr Landscaping revenue 6,000
The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made.
December 31, 20x1, gasoline expense adjusting entry
Dr Gasoline expense 2,500
Cr Gasoline payable 2,500
The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2.
December 31, 20x1, interest expense adjusting entry
Dr Interest expense 1,875
Cr Interest payable 1,875
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The rate of flow of a continuous income stream (in thousands of dollars per day) is given by Find the total income produced during the first ten days of operation. Round to the nearest dollar.
Answer: $2397.9
Explanation:
Here is the complete question:
The rate of flow of a continuous income stream (in thousands of dollars per day) is given by f(t) = 1/t+1. Find the total income produced during the first ten days of operation.
The total Income is gotten as $2397.9. Check the attachment for further explanation.
1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the Income Statement for 2017.
The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.
Marketing and advertising costs $24,000
Merchandise inventory, January 1, 2011 45,000
Shipping of merchandise to customers 2,000
Building depreciation $4,200
Purchases 260,000
General and administrative costs 32,000
Merchandise inventory, December 31, 2011 52,000
Merchandise freight-in 10,000
Purchase returns and allowances 11,000
Purchase discounts 9,000
Revenues 320,000
Answer and Explanation:
1. The computation is shown below:
(a) For the cost of goods purchased
Purchases $260,000
Add: Merchandise freight-in $10,000
Less: Purchase returns
and allowances $(11,000)
Purchase discounts $(9,000)
Cost of goods purchased $250,000
(b) For the cost of goods sold
Merchandise inventory, January 1, 2011 $45,000
Add: Cost of goods purchased $250,000
Goods available for sale $2,95,000
Less: Merchandise inventory,
December 31, 2011 $ ($52,000)
Cost of goods sold $243,000
2. Now the preparation of the income statement is presented below:
Marvin department store
Income statement
year ended December 31, 2017
(In thousands)
Revenues $320,000
Less:
Cost of good sold (see above) ($243,000)
Gross Margin $77,000
Less:
Operating costs:
Marketing and advertising cost ($24,000)
Shipping of merchandise to customers (2,000)
Building depreciation ($4,200)
General and administrative costs ($32,000)
Total operating cost ($62,200)
Operating income $14,800
Which of the following is not a measure of variability?
a. range
b. variance
c. standard deviation
d. regulated differences
Answer:
regulated differences
The option that is not regarded as a measure of variability in the question is Regulated difference.
Variability can be regarded as the extent to which a distribution can be stretched or the extent it can be squeezed. Variability express spread scores in a distribution out, it gives the amount of spread of the scores around the mean. For instance, distributions that has same mean can have different amounts of variability.Examples of measures of variability includes variance standard deviation interquartile range.variance can be regarded as expectation of the squared deviation of a random variable gotten from its sample mean. Variance can be explained as measure of dispersion.Standard deviation can be regarded as a measure of the amount of variation in a set of values. when there is low standard variation, then the value is closer to the meanRange can be regarded as the difference in the highest and lowest value as regards a sample.Therefore, option D is right.
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What countries are Canada’s top ten service import partners?
Answer:
Canada’s top 10 service import partners are:-
This is a list of the largest trading partners of Canada. Canada is considered to be a trading nation as its total trade is worth more than two-thirds of its GDP.
Explanation:
See the list of largest trading partners of Canada:
1. United States
2.European Union
3. China
4. Mexico
5. United Kingdom
6. Japan
7. Germany
8. South Korea
9. Italy
10. France
Wildhorse Co. entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $33,000 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $26,900 from Ladd on account.
3. Paid $3,100 cash for May rent on storage space.
4. Performed computer services worth $15,300 on account.
5. Performed computer services for Wharton Construction Company for $3,500 cash.
6. Paid Western States Power Co. $8,700 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $3,400 on account.
9. Received $11,100 cash from customers for contracts billed in (4).
Required:
Using a tabular analysis, show the effect of each transaction on the accounting equation. Provide explanations for changes to Stockholders' Equity.
Answer and Explanation:
Find answer and explanation attached
Flint Corporation provides security services. Selected transactions for Flint Corporation are presented below.
Oct.
1 Issued common stock in exchange for $75,200 cash from investors.
2 Hired part-time security consultant. Salary will be $2,300 per month. First day of work will be October 15.
4 Paid 1 month of rent for building for $2,300.
7 Purchased equipment for $20,500, paying $4,600 cash and the balance on account.
8 Paid $2,300 for advertising.
10 Received bill for equipment repair cost of $480.
12 Provided security services for event for $3,600 on account.
16 Purchased supplies for $470 on account.
21 Paid balance due from October 7 purchase of equipment.
24 Received and paid utility bill for $169.
27 Received payment from customer for October 12 services performed.
31 Paid employee salaries and wages of $5,800.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the previous part. For accounts with zero balance select "Balance" from the list and enter "0" or leave it blank.)
Prepare a trial balance at October 31, 2017.
Answer:
Date Account Titles Debit Credit
1-Oct Cash $75,200
Common Stock $75,200
2-Oct No entry required $0
4-Oct Rent Expenses $2,300
Cash $2,300
7-Oct Equipment $20,500
Cash $4,600
8-Oct Advertising expenses $2,300
Cash $2,300
10-Oct Repair expenses $480
Account payable $480
12-Oct Account Receivables $3,600
Service revenue $3,600
16-Oct Supplies $470
Account Payable $470
21-Oct Accounts payable $15,900
Cash $15,900
24-Oct Utility expenses $169
Cash $169
27-Oct Cash $3,600
Account receivables $3,600
31-Oct Salaries & Wages Ex $5,800
Cash $5,800
Lendell Company has these comparative balance sheet data:
Lendell Company
Balance Sheets
December 31
2020 2019
Cash $ 16,000 $ 29,000
Accounts receivable (net) 71,000 61,000
Inventory 61,000 51,000
Plant assets (net) 200,000 176,000
$348,000 $317,000
Accounts payable $50,000 $59,400
Mortgage payable (15%) 106,000 106,000
Common stock, $10 par 143,000 115,000
Retained earnings 49,000 36,600
$348,000 $317,000
Additional information for 2020:
1. Net income was $25,200.
2. Sales on account were $415,300. Sales returns and allowances amounted to $19,300.
3. Cost of goods sold was $196,000.
4. Net cash provided by operating activities was $44,400.
5. Capital expenditures were $26,200, and cash dividends were $8,900.
Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.)
a. Current ratio
b. Accounts receivable turnover
c. Average collection period
d. Inventory turnover
e. Days in inventory
Answer:
Lendell Company
a. Current ratio = Current assets/Current liabilities
= $148,000/50,000
= 2.96
= 3
b. Accounts Receivable Turnover = Net Sales/Average Accounts Receivable
= $396,000/66,000
= 6 times
c. Average collection period = Average Accounts Receivable/Net Sales * 365 days
= $66,000/$396,000 * 365
= 60.8 days
d. Inventory turnover = Cost of Goods Sold/Average Inventory
= $196,000/56,000
= 3.5 times
e. Days in inventory = 365/3.5
104.3 days
Explanation:
a) Data and Calculations:
Lendell Company
Balance Sheets
December 31
2020 2019 Average
Cash $ 16,000 $ 29,000 $ 22,500
Accounts receivable (net) 71,000 61,000 66,000
Inventory 61,000 51,000 56,000
Current assets $148,000 $141,000 $144,500
Plant assets (net) 200,000 176,000 188,000
$348,000 $317,000 $332,500
Accounts payable $50,000 $59,400 $54,700
Mortgage payable (15%) 106,000 106,000 106,000
Common stock, $10 par 143,000 115,000 129,000
Retained earnings 49,000 36,600 42,800
$348,000 $317,000 $332,500
Additional information for 2020:
1. Net income was $25,200.
2. Sales on account were $415,300.
Sales returns and allowances amounted to $19,300.
Net Sales $396,000
3. Cost of goods sold was $196,000.
4. Net cash provided by operating activities was $44,400.
5. Capital expenditures were $26,200
Cash dividends were $8,900
Answer:
Lendell Company
a. Current ratio = Current assets/Current liabilities
= $148,000/50,000
= 2.96
b. Accounts Receivable Turnover = Net Sales/Average Accounts Receivable
= $396,000/66,000
= 6 times
c. Average collection period = Average Accounts Receivable/Net Sales * 365 days
= $66,000/$396,000 * 365
= 60.8 days
d. Inventory turnover = Cost of Goods Sold/Average Inventory
= $196,000/56,000
= 3.5 times
e. Days in inventory = 365/3.5
104.3 days
Explanation:
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $525 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $420. If Nitai works over the weekend, he will have to pay the $420 to have his car repaired, but he will earn $525. Assume Nitai’s marginal tax rate is 12 percent rate.
Required:
a. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is deductible for AGI?
b. Given the answer in a above, by how much is Nitai better or worse off?
Answer:
A) $12.6 B)He will have earned $92.4 extra.
Explanation:
A) Assuming that the $420 is not included when calculating the 12 percent tax, that means the tax that he will pay for the $525 is 12 percent of $105 which is (105 x 12) / 100 = $12.6
B) If Nitai does not work and instead fixes the car himself without spending the $420, he will save that money. But if he works and gets the car fixed at Autofix, he will have earned $92.4 over the weekend and still get his car fixed.
I hope this answer helps.
Presented below are certain account balances of Sheridan Products Co.
Rent revenue $6,510 Sales discounts $8,390
Interest expense 13,340 Selling expenses 99,470
Beginning retained earnings 114,860 Sales revenue 401,600
Ending retained earnings 134,870 Income tax expense 24,627
Dividend revenue 71,020 Cost of goods sold 174,271
Sales returns and allowances 12,900 Administrative expenses 80,940
Allocation to noncontrolling interest 17,960
From the foregoing, compute the following:
(a) Total net revenue $
(b) Net income $
(c) Dividends declared $
(d) Income attributable to controlling stockholders $
Answer:
a. $457,840
b. $65,192
c. $45,182
d. $47,232
Explanation:
a. Total net revenue = Sales revenue - sales discount - Sales return and allowances + Rent revenue + Dividend
= $401,600 - $8,390 - $12,900 + $6,510 + $71,020
= $457,840
b. Net income = Total net revenue - Cost of goods sold - Administrative expenses - Selling expenses - Interest expense - Income tax expense
= $457,840 - $174,271 - $80,940 - $99,470 - $13,340 - $24,627
= $65,192
c. Dividends declared
Ending retained earnings = Beginning retained earnings + Net income - Dividend
$134,870 = $114,860 + $65,192 - Dividend
Dividend = $45,182
d. Income attributable to controlling stockholders = Net income - Allocation to non controlling interest
= $65,192 - $17,960
= $47,232
P purchased a machine on January 1, 2018 for $53656 At the time of purchase, the machine was expected to have a useful life of 16 years and a residual value of $4292 P uses straight-line depreciation At the beginning of 2026, P estimated the machine had a remaining useful life of 11 years with no residual value. Determine the following amounts
1. The depreciation expense for the year ending December 31, 2018:
2. The carrying value of the machine on January 1, 2026:
3. The depreciation expense for the year ending December 31, 2026:
4. The carrying value of the machine on December 31, 2026:
Answer:
Jan' 18 to Dec' 25 estimated annual depreciation = 3085, Jan'26 onwards estimated annual depreciation = 4878
1) 3085, 2) 28976, 3) 4878, 4) 24098
Explanation:
Annual Depreciation = (Cost - Scrap Value) / Useful Years
On Jan 2018, Estimated Annual Depreciation = (53656 - 4292) / 16 = 3085
On Jan 2026, Estimated Annual Depreciation = (53656 - 0) / 11 = 4878
1. The depreciation expense for the year ending December 31, 2018 = 3085
2. The carrying value of the machine on January 1, 2026 = Cost - Dep 8 years (2018 - 2025) = 53656 - (3085) 8 = 53656 - 24680 = 28976
3. The depreciation expense for the year ending December 31, 2026 = 4878
4. The carrying value of the machine on December 31, 2026 = Carrying capacity Jan'2026 - depreciation for year ending Dec'2026 = 28976 - 4878 = 24098
Constructing and Assessing Income Statements Using Cost-to-Cost Method Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $840 million. The contract price of $1,050 million is to be paid as follows: $350 million at the time of signing; $350 million on December 31, 2016; and $350 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $336 million in 2016 and $504 million in 2017.
Required:
Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Answer:
Year Costs % Total cost Revenue Income
incurred excepted costs recognized
$'million $'million $'million $'million
2016 336 40% 420 84
2017 504 60% 630 126
Total 840 100% 1,050 210
Workings
1. % Total cost excepted costs
2016 = 336 / 840 = 0.4 = 40%
2017 = 504/840 = 0.6 = 60%
2. Revenue recognized
2016 = 1,050 * 40% = 420
2017 = 1,050 * 60% = 630
3. Income = Revenue recognized - Cost incurred