Explanation:
Some of the essential preparations when communicating to inform, persuade, and argue includes;
Determine what you know about the subject.Be mindful of what your audience already know about the subject and avoiding stating mainly what they know already; so they will be more interested in what you have to say.Use appropriate language and terms that your audience can easily understand.Make references to respectable outside sources that back your claim. Respectfully present your speech to your audience, and avoid been judgmental because of their differing views.The essentials that should be done when communicating with the aim to inform, persuade and argue includes:
You have to use your knowledge and also think about the knowledge of your audience You have to be straightforward and avoid the use of big and unnecessary language,You should remember to give due credit to the sources you got your speech from Remember the use of ethics in your presentation of information.If you are to use the media, use the one that is able to communicate your thoughts well to the audience.Read more on https://brainly.com/question/15169159?referrer=searchResults
borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdue Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made
Answer: $2 million in Current liabilities and $6 million in long-term liabilities
Explanation:
Current liabilities are those obligations that a company owes that will be settled in a period/ year.
The first payment of $2 million in 2016 has already been paid so the total amount remaining on the 31st of December is $8 million.
Of this $8 million, a payment of $2 million will be made in a year in 2017 so this will be recorded as Current liabilities as it is a year from 2016.
The remaining $6 million will be long-term as they will be paid in more than a year being 2018, 2019 and 2020.
On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis in the warehouse was $530,000. On March 12, 2017, NP received a $650,000 reimbursement from its insurance company. In each of the following cases: Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NP’s board of directors decided not to replace the warehouse. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On January 2, 2019, NP paid $700,000 to acquire a warehouse to store its inventory. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On February 8, 2020, NP paid $700,000 to acquire a warehouse to store its inventory.
Answer:
A. $120,000
B. $0
C. $120,000
Explanation:
A. Calculation to Determine NP’s recognized gain
Using this formula
Recognized gain =Insurance reimbursement-Adjusted basis
Let plug in the formula
Recognized gain =$650,000-$530,000
Recognized gain=$120,000
B. NP will not recognize the realized gain of the amount of $120,000 ($650,000-$530,000) reason been that NP have spent the amount of $650,000 on the replacement of property.
C. NP will have to recognize the whole amount of the gain realized gain which is $120,000 ($650,000-$530,000) reason been that replacement property was not acquired within the taxable year when the gain was been realized
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each. Exercise 6-4A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
Ending inventory = $3,440; Cost of goods sold = $24,370; Sales revenue = $31,500; and Gross profit = $7,130.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the represented question with the sorted data.
Explanation to the answer is now presented as follows:
Note: the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using FIFO.
First In, First Out (FIFO) can be described as an inventory accounting method in which inventory items that bought first are sold first, while the one that are bought last are the ones that are sold last.
In the attached excel file, since the inventory purchased on Oct. 6 is the one bought last, the number of unit of inventory purchased on Oct. 6 which are sold is calculated as follows:
by deducting the sum of the beginning
inventory and inventory purchased before Oct. 6 from the total inventory sold as follows:
Number of unit of inventory purchased on Oct. 6 that are sold = Total inventory sold – sum of the beginning inventory and inventory purchased before Oct. 6 = 450 - (60 + 140 + 210) = 4
The number of ending inventory is therefore calculated as follows:
Number of unit of ending inventory = Number of inventory purchased on Oct. 6 - Number of inventory purchased on Oct. 6 sold = 120 – 40 = 80
Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 450 * $70 = $31,500
From the attached excel file, we have:
Cost of goods sold = $24,370
Ending inventory = $3,440
Therefore, we have:
Gross profit = Sales revenue - Cost of goods sold = $31,500 - $24,370 = $7,130
During 2018, Sandeep had the following transactions:Salary$ 80,000Interest income on City of Baltimore bonds1,000Damages for personal injury (car accident)100,000Punitive damages (same car accident)200,000Cash dividends from Chevron Corporation stock7,000Sandeep's AGI is:
Answer: $287,000
Explanation:
Based on the information, Sandeep adjusted gross income will be:
Salary $80,000
Add: Punitive damages: $200,000
Add: Cash dividends: $7000
AGI = $80,000 + $200,000 + $7000
AGI = $287,000
Note that the interest income on City of Baltimore bonds and the damages for personal injury are both non taxable exclusion and therefore aren't added.
How does your income affect other aspects of your lifestyle?
Answer:
please mark brainliest!
Explanation:
More income may mean more stress and less fun, other studies have associated higher incomes with higher levels of stress, increased likelihood of divorce, and less enjoyment of small activities.
Chris purchases a living room furniture set for $4,345 from Halloran Gallery. She has a one-year, no interest, no money down, deferred payment plan. She does have to make a $15 monthly payment for the first 11 months. b. How much must Chris pay in the last month of this plan
Answer: $4180
Explanation:
From the question, we are told that Chris purchases a living room furniture set for $4,345 and has a one-year, no interest, no money down, deferred payment plan. We are further told that She he made a $15 monthly payment for the first 11 months.
The total amount paid for the first 11 months will be:
= $15 × 11
= $165
Since he has to pay the total amount for 12 months, the amount that Chris will pay in the last month of this plan will be:
= $4345 - $165
= $4180
The journal entry to record the transfer of units to the next department in process accounting is a(n):
Answer:
Decrease in one asset and an increase in another asset
Explanation:
The journal entry to record the transfer of units to the next department in process accounting is a(n):
i. Decrease in one asset
ii. Increase in another asset
Which of the following statements is true? Group of answer choices If current Real GDP is greater than Natural Real GDP, the economy is in a recessionary gap. If current Real GDP is less than Natural Real GDP, the economy is in long-run equilibrium. Wages are flexible if the economy is self-regulating. Wages rise but prices remain constant in long-run equilibrium. All economists believe the economy is self-regulating.
Answer: Wages are flexible if the economy is self-regulating.
Explanation:
Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.
For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.
For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.
Suppose that there are two types of tickets to a show: advance and same-day. The combined cost of one advance ticket and one same-day ticket is $60. For one performance, 40 advance tickets and 30 same-day tickets were sold. The total amount paid for the tickets was $2200. What was the price of each kind of ticket?
Answer: price of advance ticket = $40
and price of same day ticket= $20
Explanation:
let one advance ticket be x
let one same day ticket be y
The combined cost of one advance ticket and one same-day ticket is $60
so we have that
x + y = $60
For one performance, 40 advance tickets and 30 same-day tickets were sold of which the tota;l amount was $2,200
40x +30y= 2220
we have
x + y = $60... eqn 1
40x +30y= 2220... eqn 2
by substitution,
x+y = 60
y = 60-x
putting the value of y in equation 2
40x + 30(60-x) =2200
40x + 1800-30x=2200
40x-30x= 2200-1800
10x=400
x = 400/10 = 40
to get y
x+y =60
40 + y=60
y = 60-40 =20
Therefore price of advance ticket,x = $40
and price of same day ticket, y = $20
CDF Appliances has assembly plants in Atlanta and Fort Worth where it produces a variety of kitchen appliances, including a 12-cup coffee maker and a cappuccino machine. In each hour at the Atlanta plant, 160 of the coffee makers and 200 of the cappuccino machines can be assembled, and the hourly cost is $600. In each hour at the Fort Worth plant, 800 of the coffee makers and 200 of the cappuccino machines can be assembled, and the hourly cost is $2400. CDF Appliances expects orders each week for at least 80,000 of the coffee makers and at least 28,000 of the cappuccino machines. How many hours per week should each plant be operated in order to provide inventory for the orders at minimum cost
Answer:
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
Total costs associated to operating the facilities = ($2,400 x 100) + ($600 x 140) = $324,000
Explanation:
Since there is not constraint regarding the total number of labor hours that each plant can operate, then we must choose the plant that operates at the lower cost. The only restriction is total time = 7 days x 24 hours = 168 hours per week:
production costs Atlanta:
coffee maker = $600 / 160 = $3.75 per unit
cappuccino machine = $600 / 200 = $3 per unit
production costs Fort Worth:
coffee maker = $2,400 / 800 = $3 per unit
cappuccino machine = $2,400 / 200 = $6 per unit
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed Internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night because the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with the urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $350 per month.
The amount associated with the free parking that Tim must include in his gross income per month is?
Answer:
$80 (in 2020)
Explanation:
I will assume that this question takes place during the current year (2020). An employee is required to include as income all transportation benefits that exceed $270 per month. In this case, free parking is considered a transportation benefit and Tim must report $350 - $270 = $80 as taxable benefits. The exclusion amount varies depending on the year, e.g. it was $265 in 2019.
The amount that should be included in the gross income per month should be $80.
Calculation of the amount:The employee should needed to involved the income in terms of transportation benefits that should be more than $270 per month. Since the free parking should be considered as the transportation benefit
So here the amount associated should be
= $350 - $270
= $80
hence, The amount that should be included in the gross income per month should be $80.
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Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2019. What is their allowable child and dependent care credit considering their pre-credit tax liability
Answer:
$0
Explanation:
The computation of the their allowable child and dependent care credit is shown below:
In the case when the income is below $35,000 than full 35% would be allowed
But the qualified child expense would be limited to $6,000
So, here the amount would be
= $6,000 × 35%
= $1,860
Already there is a pre credit tax liability so $0 should be considered as it would not received any credit
Key comparative figures for Apple and Google follow.
Apple Google
Current Current
$ millions Year Prior Year Year Prior Year
Accounts receivable $15,754 $16,849 $14,137 $11,556
Net sales 215,639 233,715 90,272 74,989
Required:
a. Compute days’ sales uncollected for (a) Apple and (b) Google for the current and prior years.
b. Which company had more success collecting receivables?
Answer:
1. Apple
Current year Days sales uncollected = Account receivables/Net sales * 365
= 15754 / 215639 * 365 = 27 days
= 16849 / 233715 * 365 = 26 days
Current year Days sales uncollected = Account receivables/Net sales * 365
= 14137 / 90272 * 365 = 57 days
Prior years Days sales uncollected = Account receivables/Net sales * 365
= 11556 / 74989 * 365 = 56 days
2. Base on the computation above, Apple had more success collecting receivables.
Four key marketing decision options are price (P), advertising (A), transportation (T), and product quality (Q). Consumer demand (D) is influenced by these variables. The simplest model for describing demand in terms of these variables is
Answer: D= k-pP + aA + tT +qQ
Explanation:
The simplest model for describing demand in terms of these variables will be given as D= k-pP + aA + tT +qQ
where,
D = Consumer demand
P = Price
A = Advertising
T = Transportation
Q = Product quality
Based on the model, when there's a rise in the price, there'll be a reduction in the demand while when there is an increase in advertisment, product quality and transportation, this will bring about an increase in the demand.
The simplest model for describing demand in terms of these variables is D= k-pP + aA + tT +qQ
Model for demand:The simplest model for explaining demand in terms of these variables will be given as
D= k-pP + aA + tT +qQ
Here
D = Consumer demand
P = Price
A = Advertising
T = Transportation
Q = Product quality
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A company wrote a check on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should:_____.A) Deduct the check from the bank statement balance.B) Send the bank a credit memorandum.C) Deduct the check from the September 30 book balance and add it to the October 1 book balance.D) Add the check to the book balance of cash.E) Add the check to the bank statement balance.
Answer:
Deduct the check from the bank Statement balance
Explanation:
In the given scenario when a bank writes a check on September 30 and the beneficiary does not cash the check, it will not be deducted from the company's balance.
So it will not appear on the end of month statement.
When reconciling the company's accounts the check will need to be considered as cash given out already.
The value of the cheque will need to be deducted from the statement balance to show the funds were given out.
Halifax Technologies primarily relies on 100% equity financing to fund projects. A good opportunity is available that will require $250,000 in capital. The Halifax owner can supply the money from personal investments that currently earn an average of 8.5% per year. The annual net cash flow from the project is estimated at $30,000 for the next 15 years. Alternatively, 60% of the required amount can be borrowed for 15 years at 9% per year. Using a before-tax analysis and setting the MARR equal to the WACC, determine which plan, if either, is better.
Answer:
100% equity financing from personal investments is better
Explanation:
100% equity financing option.
Expected annual return on the project = $30,000
Lost investment opportunity = 8.5% * 250,000 = $21,250.
Therefore incremental return from 100% equity financing option = $30,000 - $21,250 = $8,750 annually.
60% debt and 40% equity financing option.
Expected annual return on the project = $30,000
Lost investment opportunity = 8.5% * 40% * 250,000 = $8,500.
Interest rate on debt = 9% * 60% * 250,000 = $13,500.
Therefore incremental return = $30,000 - $8,500 - $13,500 = $8,000 annually.
Since the 100% financing gives a higher return than the debt-equity option, the 100% financing option is better.
For each of the statements below, use the dropdown box to select the response that completes the sentence correctly. Knowledge Check 01 When the units produced are equal to the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. is greater than is less than is equal to Knowledge Check 02 When the units produced exceed the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. is greater than is equal to is less than Knowledge Check 03 When the units produced are less than the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. is equal to is greater than is less than
Answer:
01 When the units produced are equal to the units sold, the net operating income computed using the variable costing method is EQUAL TO the net operating income using the absorption costing method.
02 When the units produced exceed the units sold, the net operating income computed using the variable costing method is LOWER THAN the net operating income using the absorption costing method.
03 When the units produced are less than the units sold, the net operating income computed using the variable costing method is HIGHER THAN the net operating income using the absorption costing method.
Explanation:
The basic difference between variable costing and absorption costing methods is that when you use variable costing, the ending inventory only carries variable costs. While under absorption costing, the ending inventory carries both variable and fixed costs. That means that ending inventory under variable costing is worth less than ending inventory under absorption costing (remember that one period's ending inventory is the beginning inventory of the next period).
__________ rates indicate the exchange rate of one currency in units of another currency immediately. Multiple Choice Cross Spot Current Forward
Answer:
__The Spot________ rates indicate the exchange rate of one currency in units of another currency immediately.
Explanation:
For an immediate settlement on a commodity, a security, or a currency, the spot rate is used. It is the current market value of an asset at the moment of the transaction using the current market exchange rate. It reflects the current supply and demand for an asset in the current market. It contrasts with the Forward rate, which is future-oriented or forward-looking.
Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.84%. If Janet sold the bond today for $994.79, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
33.8%
Explanation:
Purchase price of the bond will be computed using the formula below.
[tex]p=\frac{A(1-(1+r)^{-n} }{r} + \frac{F}{(1+r)^{n} }[/tex]
where A = annual coupon = 10% * 1000 = 100
r = yield to maturity = 0.1384
n = time to maturity = 20 years
F = face value = $1,000
p = price of the bond.
[tex]p=\frac{100(1-1.1384^{-20} }{0.1384} + \frac{1,000}{(1.1384)^{20} }\\p = 668.4721 + 74.8346\\p = 743.31[/tex]
Therefore, if Janet sold the bond a year later for $994.79,
the profit on sale = [tex]\frac{994.79}{743.31} -1=0.3383[/tex]
= 33.8% profit (rate of return).
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due to:_________
a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.
Answer:
e. None of the above.
Explanation:
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.
Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to
Answer and Explanation:
The journal entry to record the estimation of the uncollectible accounts is shown below:
Bad debt expense XXXX
To Allowance of doubtful debts XXXX
(Being the estimation of the uncollectible account is recorded)
Here the bad debt expense is debited as it increases the expenses account and credited the allowance as it decreased the assets
Hence, the same is to be considered
Consider a firm with production function F(K, L)=3L+8K. Assume that capital is fixed at K=12. Assume also that the rental rate (price) of capital r=10 and the wage rate (price) of labor w=3. The cost of production is the total expenditure on capital (fixed cost) and labor (variable cost). Then the cost of producing q units is__.
A. C(q)=114+(9q/8).
B. C(q)=24+39.
C. C(q)=88+(q/12).
D. C(q)=24+ q.
E. C(q)=24+q2
Question attached
Answer and Explanation:
Answer and explanation attached
Jason Jones has been asked to assemble an eight-member self-managed work team of experienced employees to work on a project that combines the functional areas of research, production, marketing, and distribution. Jason is apprehensive about managing a team so large; he knows from prior experience that larger teams do not always result in greater productivity. Jason has also been informed by the management that this team is being established as the project must progress according to the predetermined timeline. The work lagging behind by one division will cause a cumulative delay in all the successive stages of the project's execution. Which of the following measures, if adopted by Jason, would best ensure that the team members are working efficiently?
A) instructing the team members to finalize the plan for the project right at the beginning and ensuring that it is implemented without any changes
B) discouraging team members from restricting themselves to their own functional areas by experimenting with and learning the jobs done by other members of the team
C) implementing a group-based incentive he has planned for this team
D) implementing a training program to provide the team members with the necessary technical and human relations skills for the project
E) assigning the specific tasks of the project to each team member by keeping in mind their preferences and abilities
The correct answer is E) Assigning the specific tasks of the project to each team member by keeping in mind their preferences and abilities.
Explanation:
One of the most effective techniques to work efficiently in a group, especially in big groups is to divide the total work or assignment. This implies each of the members of the group would focus on specific tasks or stages of the project rather than on all the assignments.
This strategy is recommended in the situation described because it makes the process to be efficient as each member can use his/her abilities to better develop specific tasks and this would save time. Moreover, this strategy is ideal for Jason Jones because he can better monitor all the work and make sure each of the stages and all the project is finished on time as he will know who is responsible for each stage. According to this, the correct answer is E.
How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.
Answer:
I will discuss how taxes affect the financial planning of individuals, not businesses.
The whole idea of responsible financial planning is to maximize an individual's wealth, and in order to be able to do this you generally need to minimize your tax liabilities. It doesn't mean that you shouldn't pay your taxes, but rather that the taxes that you owe should be lower.
An example about how this works is when you you invest in stocks. All dividends are taxed as ordinary income, but if you hold a stock for more than one year and then sell it making a profit, you will be taxed at a much lower rate. That is why it is always a good idea to hold stocks long enough for long term capital gains rate to apply. E.g. if you are married and your ordinary taxable income is less than $80,000, you pay 0 taxes for long term capital gains. Even couples earning up to $496,600 will pay only 15%, while their marginal tax rate on ordinary income is 35%. Remember that every cent that you save on taxes, increases your wealth, and a 20% difference is a lot.
Another example are IRA accounts. Contributions to traditional IRA accounts lower your taxable income, which is great. Any interest gained by the account will not be taxed until you retire. This allows your money to grow tax free. E.g. you have $100,000 to invest and you an earn 8% per year. If you do not pay any taxes, in 10 years you will have $100,000 x 1.08¹⁰ = $215,894.50. But if you pay a 24% tax rate on your gains, then you will only have $100,000 x [1 + (0.08 x 0.76)]¹⁰ = $180,441.
In order to reduce your taxes, you might sometimes need to postpone or accelerate some expenses or donations. E.g. you generally donate $3,000 to church, it is December and you are getting ready to sign a check. But you then realize that your current tax bracket is 12%, but since you got a raise, next year you will pay 24%. It is a good idea to write the check on January 2, since you will save $3,000 x (24% - 12%) = $360 in future taxes.
Personal financial planning method of planning, financing, and investing activities, the taxes help us in meeting our goals and desires.
Taxation affects the planning as it created a need and demand for money at the time of retirement. As proper planning is influenced by the taxes and they help to decide more clearly the person's finances and things you want.Hence they help in planning cautiously and adequately.
Learn more about the taxes influence responsible financial planning.
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Penguin LLC operates a large apparel store with several employees and substantial debt. Each LLC member is active in the business and receives compensation from the LLC. The LLC invests its excess cash in government and corporate bonds, blue chip stocks, and a global mutual fund. It owns property that is subject to accelerated depreciation. What types of information must Penguin accumulate and report on its Schedule K
Answer:
Penguin LLC
The types of information that Penguin LLC must accumulate and report on its Schedule K include information on each partner's income, losses, deductions, credits, dividends received from other investments. Penguin LLC is expected to submit this schedule with the detailed information as specified while each business partner in Penguin LLC, a partnership or S corporation collaborates the information by filling their own K-1.
Explanation:
The purpose of Schedule K and K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits to the US Internal Revenue Service.
Imagine that Scott has asked your opinion about whether Barcelona should try to reduce involuntary turnover. What is an advantage of the current practice of firing a large percentage of employees?
a. Barcelona can replace less effective performers with better performers.
b. Barcelona can develop a monoculture in which all employees behave similarly.
c. Barcelona saves money on training costs.
d. Barcelona can gain valuable feedback about deficiencies in the company by conducting exit interviews.
Answer:
a. Barcelona can replace less effective performers with better performers.
Explanation:
As per the conversation i.e. you cant give the training to the people for enthusiastic them as you want to hire them also it is a transient business
So here you need to fire the old employees who are less effective and hire new employees who are enthusiastic that ultimately benefits the company
Therefore option a is correct
and the same is to be considered
JFK Corp. factors $300,000 of accounts receivable with LBJ Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to LBJ Finance, which will receive the collections. LBJ Finance assesses a finance charge of 1.5% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.
a) Prepare the journal entry on July 1, 2020, for JFK Corp. to record the sale of receivable without recourse
b) Prepare the journal entry on July 1, 2020, for LBJ Finance Corporation to record the purchase of receivables without recourse.
Answer:
Please see below
Explanation:
A. Journal entry for JFK Corp, July 1, 2020 to record the sale of receivable without recourse.
Cash. Dr.
[(100 - 4 - 1.5) × 300,000]. $283,500
Due from factor Dr
(0.4 × 300,000) $12,000
Loss on sale of receivable. Dr
(0.015 × 300,000) $4,500
To Accounts receivable Cr $300,000
B. Journal entry for LBJ finance Corporation on July 1, 2020 to record the purchase of receivables without recourse.
Accounts receivable Dr $300,000
To due from factor Cr $12,000
To Financing revenue Cr $4,500
To cash account Cr $283,500
Jen Rogers withdrew a total of $15,000 from her business during the current year. The entry needed to close the withdrawals account is:_________
A. Debit Income Summary and credit Cash for $31,000.
B. Debit Jen Rogers, Withdrawals and credit Cash for $31,000 Debit Income Summary and credit Jen Rogers, Withdrawals for $31,000.
C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $31,000.
D. Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $31,000.
Answer: C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $15,000
Explanation:
The options do not match the question. Correct answer is posted.
When closing the Withdrawal account at the end of the period, the withdrawals need to be accounted for from the capital invested by the investor because the withdrawals would reduce the capital balance.
To do this the Capital account should be debited to signify that it is reducing. The opposing entry therefore will be to credit the Withdrawals account.
If a buyer accepts defective goods and wants to hold the seller liable, the buyer must give the seller notice of the defect:______.
a. within a reasonable time after detecting the defect.
b. within the same financial year of the purchase.
c. when the contract is made.
d. only in writing.
Answer:
A. within a reasonable time after detecting the defect.
Explanation:
If a buyer accepts defective goods and wants to hold the seller liable, the buyer must give the seller notice of the defect within a reasonable time after detecting the defect.
If the buyer takes a longer time to notify the seller, the buyer may be held responsible for damaging the goods and deprived of any refund or compensation attached to defective goods.
The formula for computing Ordering cost Error factor is represented by:
A: Estimated ordering cost / Actual ordering cost
B: Estimated demand / Actual ordering cost
C: Actual ordering cost / Estimated ordering cost
D: Actual ordering cost / Estimated demand
Answer:
A: Estimated ordering cost / Actual ordering cost
Explanation:
The above is the correct formular. This is because, inorder to determine the error factor, it is best if the person determine the estimated ordering cost. Later, the actual and exact cost would be taken inorder to for the both ordering cost to be divided. The ratio happens to be the ordering cost error.