$7,700
Explanation:
$18,500 - $6,000 - $4,800 = 7,700
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 28,000 shares of 6%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 22,000 shares of common stock on the open market as treasury stock paying $38 per share. Brisbane sold 5,800 treasury shares on September 30, 2021, for $43 per share. Net income for 2021 was $178,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 48,000 common shares at $38. The market price of the common shares averaged $48 during 2021.
Compute Brisbane's basic and diluted earnings per share for 2021.
Answer:
basic earnings per share = $1.14
diluted earnings per share = $1.02
Explanation:
net income = $178,905
preferred stocks = 28,000 x 6% x $50 = $84,000
January 1, 100,000 shares outstanding x 12/12 = 100,000
February 28, purchased -22,000 treasury stocks x 10/12 = -18,333
September 30, sold 5,800 treasury stocks x 3/12 = 1,450
total weighted average stocks = 83,117
diluted stocks = [($48 - $38) / $48] x 48,000 = 10,000
basic earnings per share = (net income - preferred dividends) / weighted average stocks = ($178,905 - $84,000) / 83,117 stocks = $1.14
diluted earnings per share = (net income - preferred dividends) / (weighted average stocks + diluted stocks) = ($178,905 - $84,000) / (83,117 + 10,000 diluted stocks) = $1.02
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:Sales $3,000,000Net operating income $150,000Average operating assets $750,000Consider each of the following requirements independently.Requirement 1:Compute the company's return on investment (ROI).Return on investment % ?Requirement 2:The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI?Return on investment % ?Requirement 3:The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring an $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the company's ROI in this scenario?Return on investment %?
Answer:
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
Explanation:
ROI is the proportion of capital invested that is earned as net operating income. It calculated as
Return on Investment = Net income/Average operating asset
= 150,000/750,000 × 100 = 20%
2.
ROI with a 50% increase in sales and 200% increase in average assets
ROI = (150%× 150,000)/(200%× 750,000)× 100= 15%
3.
ROI wth a 1,000,000 increase in sales
ROI = ( 150,000+200,000)/(250,000+ 750,000)× 100=35%
Answer
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
The following transactions of Sandy Cruz occurred during 2018: LOADING...(Click the icon to view the transactions.)
Requirements
1. Journalize required transactions, if any, in Cruz's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Requirement
1. Journalize required transactions, if any, in Cruz's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)
Apr. 30: Cruz is party to a patent infringement lawsuit of $ 220,000. Cruz's attorney is certain it is remote that Cruz will lose this lawsuit.
Jun. 30 Estimated warranty expense at 4% of sales of $360,000.
Jul. 28 Warranty claims paid in the amount of $6.400
Sep. 30 Cruz is party to a lawsuit for copyright violation of $150,000. Cruz's attorney advises that is probable Cruz will lose this lawsuit. The attorney estimates the loss at $150,000
Dec. 31 Cruz estimated warranty expense on sales for the second half of the year of $500,000 at Jun Choog Dec 31
Answer:
1.
April 30
No entry required
This is because Cruz's attorney is certain it is remote that Cruz will lose this lawsuit.
June 30
DR Warranty Expense $14,400
CR Warranty Liability $14,400
Working = 360,000 * 4%
= $14,400
July 28
DR Warranty Liability $6,400
CR Cash $6,400
September 30
DR Lawsuit Loss A/c $150,000
CR Lawsuit Loss Liability $150,000
December 21
DR Warranty Expense $20,000
DR Warranty Liability $20,000
Workings ( Original question says 4%.)
= 4% * 500,000
= $20,000
2. Balance on Estimated Warranty Liability Account
June 30 14,400
July 28 (6,400) -
Dec 21 20,000 +
= $28,000 Credit
The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: Sooner Market Portfolio Average return 20 % 11 % Standard reviations of returns 44 % 19 % Beta 1.8 1.0 Residual standard deviation 2.0 % 0.0 % The risk-free return during the sample period was 3%. Calculate the Jensen measure of performance evaluation for Sooner Stock Fund. Multiple Choice 4.00% 2.6% 8.67% 31.43% 37.14%
Answer:
The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%
Explanation:
In order to calculate the the Jensen measure of performance evaluation for Sooner Stock Fund we would have to calculate Jensen's Alpha as follows:
Jensen's Alpha = R(i) - [R(f) + {B x (R(m) - R(f))}]
Jensen's Alpha= 20% - [3% + {1.8 x (11% - 3%)}]
Jensen's Alpha= 20% - [3% + 14.4%] = 20% - 17.4%
Jensen's Alpha= 2.6%
The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Fatboy Screamer Total Number of units assembled 990 1,980 2,970 Materials cost per unit $ 2,600 $ 3,600 Other costs: Direct labor $ 3,207,600 Indirect materials 534,600 Other overhead 1,603,800 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
Answer:
Cost per Unit Fatboy= $ 27800
Screamer Cost per unit = $3779.80
Explanation:
Howrley-David, Inc.
Fatboy Screamer Total
Units Assembled 990 1,980 2,970
Materials cost per unit $ 2,600 $ 3,600
Material Costs 2574000 7128000
Other costs:
Direct labor $1069200 2138400 $ 3,207,600
Indirect materials 534, 600
Other overhead 1,603,800
FoH 712800 1425600 2138400
Total Costs 2752,2000 7484000
No of units 990 1980
Cost per Unit 27800 3779.80
The total costs have been added and then divided with the number of units to get the cost per unit.
Direct Labor Costs =Total Direct Labor Costs/ Total number of units* required number of units
DLC for Fatboy= $ 3,207,600 /2970 *990= $1069200
DLC for Screamer= $ 3,207,600 /2970 *1980= 2138400
FActory Overheads = Total Factory Costs/ Total Units ( Required Units)
FOH for Fatboy= 534, 600 +1,603,800/2970 * 990= 712800
FOH for Screamer = 534, 600 +1,603,800/2970 * 1980= 1425600
Chipper Payroll Services knows the demand for its services during the current year is around 50,000 workerhours and with current operations covers all customer demand (i.e., Chipper’s capacity currently is 50,000 worker-hours). Chipper is planning on a 5% growth rate each year. Chipper’s current office space and staff will eventually outgrow demand. Expanding the office space and staff depends mostly on the hours that will be worked total in the facility. If we let x=total worker-hours, Chipper will incur a one- time cost of $15x to expand [i.e., if Chipper goes from 50,000 worker-hour capacity to 70,000 worker-hour capacity, it will incur a cost of $15x(70,000-50,000) = $300,000]. Chipper needs to expand its current space and staff, since any new business will be lost to its competitors if it cannot accommodate the new customers. Each customer serviced incurs a variable cost of $3.00 per worker-hour. It also costs Chipper $6.00 per worker-hour of capacity per year (i.e., if Chipper has 70,000 worker hours total then Chipper incurs $6x70,000 = $420,000 per year in costs). Chipper garners $25 per worker hour from its customers.
Required:
Determine what the projected revenue, costs, and potential profits would be over the next 10 years based on the current capacity, 50,000 worker-hours, an expansion to 70,000 workerhours, and an expansion to 90,000 worker hours.
Answer: ..,,..
Explanation:
All sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Answer:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Explanation:
Calculation for estimated bad debts expense:
Explanation
Accounts receivable * Sales uncollectible
$445,000×0.025
=11,125
Hence:
11,125 +Allowance for Doubtful Accounts 1,350
=$12,475
Therefore the estimated bad debt will be:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Equity method for stock investment Obj. 3 Show Me How icon At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Journalize the entries by Herrera Corporation to record the following information: Tran Corp. reports net income of $600,000 for the current period. A cash dividend of $0.50 per common share is paid by Tran Corp. during the current period. Pencil Why is the equity method appropriate for the Tran Corp. investment
Answer and Explanation:
The journal entries are shown below:
1 Investment in Tran Corp $210,000
To Investment Income (280,000 ÷ 800,000 × $600,000) $210,000
(Being the investment in Tran corp. is recorded)
For recording this we debited the investment in tran corp as it increased the assets and credited the investment income as it also increased the revenue
2 Cash (280,000 × $0.50) $140,000
To Investment in Tran Corp $140,000
(Being the payment of cash dividend is recorded)
For recording this we debited the cash as it increased the assets and credited the investment in tran corp as it decreased the assets
(B) The equity method is appropriate as the Herrera owns 35% which come from
= $280,000 ÷ $800,000
= 35%
And it can be exercised when there is a significant influence or effect over the investor
Allocating Joint Costs Using the Weighted Average Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples: Grades Pounds Weight Factor Grade A 1,600 4.0 Grade B 4,000 2.0 Slices 9,000 1.0 Applesauce 5,400 0.5 Total 20,000 Total joint cost is $21,000. Required: 1. Allocate the joint cost to the four grades of apples using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A $ 5,149.4253 Grade B Slices Applesauce Total $ (Note: The joint cost allocation does not equal $21,000 due to rounding.) 2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 3.0
Answer:
Explanation:
The above problem is solved in the picture attached below. I could not make use of the table in this tool that is why i made use of paper and pen and the solution is much explanatory. Thank you
Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,800. The company is considering different depreciation methods that could be used for financial reporting purposes.
Required:
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Purchasing price= $288,000
Useful life= 4 years
Salvage value= $33,800
First, we will calculate the depreciation expense using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (288,000 - 33,800)/4
Annual depreciation= $63,550
Now, using the double-declining balance:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*63,550= 127,100
Year 2= [(254,200 - 127,100)/4]*2= $63,550
Year 3= [(127,100 - 63,550)/4]*2= $31,775
Year 4= [(63,550 - 31,775)/]*2= $15,887.5
According to Heidi Ganahl, the founder of Camp Bow Wow, organizational culture: a.does not involve tapping into employees' creativity and innovation. b.does not involve being a great friend but only doing the right thing for the company. c.is what the outside world perceives of the company and brand. d.is one where employees are allowed to act as they seem fit.
Answer:
C
Explanation:
According to Heidi Ganahl , Organizational culture is defined as what the outside world perceives of the company and its brand.
In other words , it is believed that a company and its brand is the reflection of the value , belief and the attitudes shared by the employees , as well as the internal control system of the organization which represents the view it portrays to the general public .
Nick is going to be graduating in December and has already accepted a position with a major accounting firm. His employer will provide either a 401k plan with a 2 for 1 match or a lump sum annuity that he can use to invest on his own. Nick chooses the 401k with match. Which reason below validates his rationale?
1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.
2. The annuity may accompany fees, which could reduce the cost of his overall investment.
3. The employer match provides free money from his employer for his retirement.
4. All of the Above are valid reasons
Answer:
1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.
Explanation:
A 401k plan allows an individual to save money for retirement without paying income taxes for each contribution that he/she makes to the retirement plan. The individual will pay income taxes only after he/she retires and starts withdrawing out of the 401k plan (it is a tax deferred account). Employer's matching of 401k contributions are also taxed once you start withdrawing money. The tax free contributions allow the 401k account to grow faster and earn more money.
Camrim Inc., experienced the following events in 2018, its first year of operation: Performed counseling services for $21,700 on account. On May 1, 2018, paid $5,600 cash to rent office space for the next 12 months.. Adjusted the accounts to reflect the amount of rent used during the year. Based on these three events, net income is
Answer:
Net income is $ 17,966.67
Explanation:
The net income for the year is the revenue for counselling services of $21,700 minus the eight-month rent expense which is from May 2018 to December 2018, even though rent was paid for 12 months, only eight months relate to the current year.
Net income=$21,700-($5,600*8/12)=$21,700-$3,733.33 =$ 17,966.67
The net income after deducting rent expense related to the current year from the counselling revenue is $ 17,966.67
A one-month European call option on Bitcoin is with the strike price of $8,505, $8,705, and $8,905 are trading at $600, $500, and $415, respectively. An investor implements a butterfly spread (i.e., she buys one call with the strike price of $8,505, sells two calls with the strike price of $8,705, and buys one call with the strike price of $8,905. If at the maturity, the Bitcoin price is $8,605, what is the investor's profit
Answer:
The investor profit will be $85
Explanation:
Kindly check attached picture for detailed calculation
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let’s assume the following facts. The hybrid will initially cost an additional $6,000 above the cost of a traditional vehicle. The hybrid will get 30 miles per gallon of gas, and the traditional car will get 20 miles per gallon. Also, assume that the cost of gas is $2.40 per gallon. Using the facts above, answer the following questions.
a. What is the variable gasoline cost of going one mile in the hybrid car? What is the variable cost of going one mile in the traditional car?
b. Using the information in part (a), if "miles" is your unit of measure, what is the "contribution margin" of the hybrid vehicle relative to the traditional vehicle? That is, express the variable cost savings on a per-mile basis.
c. How many miles would you have to drive in order to break even on your investment in the hybrid car?
d. What other factors might you want to consider?
Answer:
A) 0.08; 0.12
B) 0.04
C) 150,000 miles
D) Insurance cost, carbon emission, Second hand value, Licensing fee, E. t. C
Explanation:
A)
What is the variable gasoline cost of going one mile in the hybrid car?
The variable gasoline cost = ( cost per gallon / total miles per gallon)
Cost per Gallon = $2.40
Miles per gallon(hybrid car) = 30
Variable gasoline cost(hybrid car) =( 2.40/30) = 0.08
What is the variable cost of going one mile in the traditional car?
The variable gasoline cost = ( cost per gallon / total miles per gallon)
Cost per Gallon = $2.40
Miles per gallon(traditional car) = 20
Variable gasoline cost(hybrid car) =( 2.40/20) = 0.12
B.) variable cost savings on a per-mile basis.
Variable cost difference (0.12 - 0.08) = 0.04
C.) break even point in miles
(additional fixed cost / cost saving per mile)
(6000 / 0.04) = 150,000 miles
D) other factors may include ;
Insurance cost
carbon emission
Second hand value
Licensing fee and so on
The variable gasoline cost in the hybrid car and traditional car is $0.09 and $0.12 per miles.
Case: 1
The variable gasoline cost in the hybrid car = $2.40/30
The variable gasoline cost in the hybrid car = $0.08 per mile
The variable gasoline cost in the traditional car = $3.60/20
The variable gasoline cost in the traditional car $0.18
Case: 2
Savings per mile = The variable gasoline cost in the hybrid car - The variable gasoline cost in the traditional car
Savings per mile = ($0.18 – $0.08).
Savings per mile = $0.10
Case: 3
Break even point = Fixed cost / Savings per mile
Break even point = 6,000 / 0.10
Break even point = 600,000 miles
Case: 4
You should also examine a number of other elements in your analysis. Do the cars' estimated maintenance bills, insurance prices, licensing fees, or final resale value differ. In addition, several jurisdictions and corporations provide subsidies for hybrid car purchases.
Non-financial considerations, such as a desire to cut emissions, may also impact your decision.
Learn more:
https://brainly.com/question/22871926?referrer=searchResults
business sofware programs make it possible to
Answer:
increase productivity in office setting
Clinton Corporation has two decentralized divisions, Alpha and Beta. Alpha always has purchased certain units from Beta at $95 per unit. Beta plans to raise the price to $133 per unit, the price it receives from outside customers. As a result, Alpha is considering buying these units from outside suppliers for $95 per unit. Beta’s costs follow: Variable costs per unit $ 88 Annual fixed costs $ 140,000 Annual production of these units sold to Alpha 10,000 units Required: a. If Alpha buys from an outside supplier, the facilities that Beta uses to manufacture these units will remain idle. What will be the result if Clinton enforces a transfer price of $133 per unit between Alpha and Beta?
Answer:
a. As a result of this policy the Clinton corporation will loss the contribution margin
Contribution Margin = (Selling price – variable cost) * Number of units
= (95 – 88) * 10,000
= $77,000
b.The cost incurred by Clinton corporation by following this policy is Opportunity cost which is cost of forgone opportunity.
Opportunity cost = (Outside selling price – variable cost ) Number of units
=(133 – 88) * 10,000
= $450,000.
Caneer Corporation produces and sells a single product. Data concerning that product appear below:
Selling price per unit $ 240.00
Variable expenses per unit $ 81.60
Fixed expense per month $ 997,920
The unit sales to attain the company's monthly target profit of $44,000 is closest to: (Round your intermediate calculations to 2 decimal places.)
a. 12,769
b. 6,578
c. 4,341
d. 7,896
Answer:
Break-even point in units= 6,578 units
Explanation:
Giving the following information:
Selling price per unit $ 240.00
Variable expenses per unit $ 81.60
Fixed expense per month $ 997,920
Desired profit= $44,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (997,920 + 44,000) / (240 - 81.6)
Break-even point in units= 6,578 units
research the telemedicine industry and describe two companies offering services . what are the pros and cons of offering medical services this way , and is there government or industry guidance for this industry ? ( aacsb : communication ; reflective thinking )
Answer:
Telemedicine is a tool that is used for medical information change from one area to another area through electronic communications fro the improvement of clinical health status of the patient.
The Two companies that offers Telemedicine are CC and CADo
CC it involves practicing physicians that are board certified to provide various range of Telemedicine services around the world. some services that CC cover s are primary care, home care, urgent care.
CADo refers to a service that assist in connecting patient with related doctors via phone and online. this company is specialized to offer basic medical services which does not require visits in person.
The pros of Telemedicine are that,(1) it helps patient to save health care costs (2) It increases patient engagement.
The cons are (1) It requires equipment and technical training. (2)It reduces in persons interactions with the related doctors.
Yes there are some governmental or industrial rules for Telemedicine industry. it helps this industry to broaden their traditional practice of medicine towards outside the wall of a typical medical practice.
Explanation:
Solution
Telemedicine is a technique that is used for medical information interchange from one area to another area through electronic communications for the improvement of clinical health status of the patient.
Telemedicine has a variety of growing applications and services that uses email, two way videos, wireless tools, smart phones and other types of telecommunication technology.
Two companies that offers Telemedicine is given below:
(1) CC: CC was established in the year 2010. it works with practicing physicians that are board certified to provide various range of Telemedicine services around the world. some services that CC cover s are primary care, home care, urgent care.
(2) CADo : It is a service that helps to connect patient with doctors though phone and online. this company is specialized to offer basic medical services which does not require visits in person
Pros and Cons of Telemedicine is as follows:
Pros:
It is more accessible and convenient health care for the patientsIt helps patient to save health care costsIt increases patient engagementIt provide better quality of patient careCons:
It requires equipment and technical trainingIt reduces in persons interactions with the related doctorsIn this service come Telemedicine models reduce care continuityYes there are some governmental or industrial guidance for Telemedicine industry. it helps this industry to extend their traditional practice of medicine towards outside the wall of a typical medical practice.
Assume Ava Co. has the following purchases of inventory during the first month of operations Number of Units Cost per unit First Purchase 338 2.1 Second Purchase 188 4.1 Assuming Ava Co sells 253 units at $10 each, what is the ending balance in the inventory account if they use LIFO?
Answer:
$573.30
Explanation:
The computation of the ending inventory using the LIFO is shown below:
Given that
First purchase units = 338 units at $2.1
The Second purchased units = 188 units at $4.1
Sells units = 253 units at $10 each
Based on the above information, the ending inventory is
= (First purchased units + second purchased units - sells units) × cost per unit
= (338 units + 188 units - 253 units) × $2.1
= $573.30
Esposito, Inc. uses a just-in-time costing system. During the month, Esposito incurred $700,000 as direct labor and $8000 as overhead. Wages were not paid. Which of the following is the correct journal entry to record the conversion costs?A.Conversion Costs 708,000 Wages Payable 708,000B.Manufacturing Overhead 708,000 Conversion Costs 708,000C.Conversion Costs 708,000 Wages Payable, Accumulated Depreciation, etc. 708,000D.Conversion Costs 708,000 Accounts Payable 708,000
Answer:
C.Conversion Costs 708,000 Wages Payable, Accumulated Depreciation, etc. 708,000
Explanation:
The Journal entry is shown below:-
Conversion Costs Dr, 708,000
To Wages Payable, Accumulated Depreciation, etc. $708,000
(Being conversion costs is recorded)
Here to record the conversion costs we simply debited the conversion costs as it increased the expenses and we credited the Wages Payable, Accumulated Depreciation, etc. as it increased the liabilities and decreased the assets
what are the "marketable" characteristics of snails?
ANSWER: The major marketable characteristics of snail is it's nutritional value to our body. And the lesson we learn from them, when we feel depressed and anxious.
EXPLANATION: The snail is a very nutritious meat that contains protein, fat and oil, minerals, and vitamins. It protein content is more higher than that of birds egg. The slime from snail helps to treat dehydration, dry skin, stretch marks, damage tissues in the body, and many more. The snail has much value in markets, as it has become a boast to our daily nutritional content.
Some people buy snail, to help them meditate daily or during depression. This helps them to calm down their emotions as they watch the snail, because snail teaches a lesson of patience (in it's movement) and articulation ( in the fast way it responds by retreating into it's shell, when it sense strange signal).
Purchases and Cash Payments Journals
Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $210.
3. Purchased cleaning supplies on account from Brite N' Shine Products Inc., $130.
8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,140.
12. Purchased cleaning supplies on account from Porter Products Inc., $180.
15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $110.
18. Purchased supplies on account from Bio Safe Supplies Inc., $240.
20. Purchased electrical repair services from Bowman Electrical Service on account, $90.
26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
31. Issued Check No. 61 in payment of salaries, $4,110.
Wisk Away Cleaning Services Inc. uses the following accounts:
Cash 11
Cleaning Supplies 14
Equipment 18
Accounts Payable 21
Salary Expense 51
Electrical Service Expense 53
Prepare a purchases journal and a cash payments journal to record the above transactions in chronological order. If an amount box does not require an entry, leave it blank and select "No entry required" from the dropdown.
Answer and Explanation:
The preparation is shown below:
PURCHASES JOURNAL
DATE Account Post. Accounts Cleaning Other Post. Amt
Credited Ref Payable Cr. Supplies Dr. Accounts Dr. Ref.
20Y5
May 3 Brite N' Shine Products Inc. ✔ $130 $130 No entry required
May 12 Porter Products Inc. ✔ $180 $180 No entry required
May 18 Bio Safe Supplies Inc. ✔ $240 $240 No entry required
May 20 Bowman Electrical Service ✔ $90 Electrical Service Expense 53 $90
May 31 Total $640 $550
$90
($21) ($14)
CASH PAYMENT JOURNAL
DATE Ck. No Account Post. Other Account Cash
Debited Ref Accounts Dr. Payable Dr. Cr.
May 1 57 Bio Safe Supplies Inc. ✔ $210 $210
May 8 58 Equipment 18 $2,140 $2,140
May 15 59 Bowman Electrical Service ✔ $110 $110
May 26 60 Brite N' Shine Products Inc. ✔ $130 $130
May 31 61 Salary Expense 51 $4,110
May 31 Total $6,250 $450 $2,590
(21) (11)
Adams Corp., a merchandising company, has 30,000 units in its inventory on December 31. Just before closing for the day, the company ships 2,000 units to a customer. The company also receives a notice from its supplier that an order of 10,000 units has been shipped. The terms for the sale and the purchase were f.o.b. shipping point. How many units of merchandise should be included in Adam's ending inventory
Answer:
28,000 Units
Explanation:
The inventory that we actually have possession or the point at which the risk and reward associated with the inventory are shifted towards the company then it must recognize it. So this means, the inventory that is ordered and yet not received on board and hence must not be included in the inventory.
Closing Inventory = Opening Inventory + Inventory Received - Inventory Despatched
Here
Inventory Received is Zero Units
Inventory Despatched is 2,000 Units
Opening Inventory 30,000 Units
By putting the values, we have:
Closing Inventory = 30,000 Units + 0 Units - 2,000 Units
Closing Inventory = 28,000 Units
Assuming you are risk neutral, first answer the following two questions about your preferences: Scenario A: You are given $5,000 and offered a choice between receiving an extra $2,500 with certainty or flipping a coin and getting $5,000 if heads or $0 if tails. Which option do you prefer? A. Both options have identical payoffs, so I am indifferent between the two options. B. The possibility of the $5,000 payoff is more valuable to me than the certain $2,500, I choose to flip a coin. C. The certain $2,500 is more valuable than the uncertain $5,000, I would choose the $2,500.
Answer:
B. The possibility of the $5,000 payoff is more valuable to me than the certain $2,500, I choose to flip a coin.
Explanation:
A risk neutral person is a person that is indifferent to risk. She doesn't consider risk when making an investment risk.
Because the possibility of earning $5000 is greater than earning $2500, a risk averse person would choose to toss a coin.
A risk neutral person contrasts with a risk averse person who avoids risk. A risk averse person would choose the $2500 because there's no risk .
I hope my answer helps you
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5,000 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000.
Required:
a. For each tire sold, what is the expected cost of the promotion?
b. What is the probability that Grear will refund more than $50 for a tire?
Answer:
1. The expected cost of production for each tire sold is $0.013 per tire.
2. Probability that Grear will refund more than $50 for a tire is 0.0107
Explanation;
1. Mileage is 36,500 miles
Standard deviation is 5,000 miles
Observed miles is 30,000 miles
100 miles failed at $1
Therefore;
(36,500 - 30,000) /5,000 = 1.3
To get the cost of production,
Since 100 miles equals $1 if fail
1.3 × 1 / 100
= $0.013 per tire.
2. P(Z<25,000 - 36,500/5,000)
= P(Z<-11,500/5,000)
=Z<2.3
Therefore,
1-0.9893
=0.0107
The probability that Grear will refund more than $50 for a tire is 0.0107
Moody Farms just paid a dividend of $3.05 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 12 percent for the first three years, a return of 10 percent for the next three years, and a return of 8 percent thereafter. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
The price of the stock today is $96.06
Explanation:
The price of a stock whose earnings are expected to grow at a constant rate forever can be calculated using the dividend discount model which bases the price of a stock on the present value of the expected future dividends from the stock.
As the required rate of return is changing, we will calculate the price in three stages.
The formula for price today under this model is in the given situation is,
P0 = D1 / (1+r1) + D2 / (1+r1)^2 + D3 / (1+r1)^3 + D4 / (1+r2)^4 + D5 / (1+r2)^5 +
D6 / (1+r2)^6 + [ D7 / (r3 - g) ] / (1+r2)^6
Where,
D1, D2, ... D7 represents the dividend in year 1,2, ... 7 (till Year 7)r represents the required rate of returnr1 is 12%r2 is 10%r3 is 8%So, price of the stock today is,
P0 = 3.05 * (1+0.05) / (1+0.12) + 3.05 * (1+0.05)^2 / (1+0.12)^2 +
3.05 * (1+0.05)^3 / (1+0.12)^3 + 3.05 * (1+0.05)^4 / (1+0.10)^4 +
3.05 * (1+0.05)^5 / (1+0.10)^5 + 3.05 * (1+0.05)^6 / (1+0.10)^6 +
[3.05 * (1+0.05)^7 / (0.08 - 0.05)] / (1+0.10)^6
P0 = $96.06
At an activity level of 3,000 units, North Corporation's total variable cost is $15,000 and its total fixed cost is $20,000. For the activity level of 3,500 units, compute the variable cost per unit.
Answer:
$5 per unit.
Explanation:
At an activity level of 3,000 units, we have:
Variable cost per unit = Total variable cost / Units produced = $15,000 / 3,000 = $5
Since the variable cost per unit must be equal at both lowest and highest level of activities, theerefore, the variable cost per unit at 3,500 is also $5 per unit.
The variable cost per unit is $5 per unit.
The calculation is as follows:At an activity level of 3,000 units, we have:
Variable cost per unit = Total variable cost ÷ Units produced
= $15,000 ÷ 3,000
= $5
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At December 31, 2018, you obtained the following data relating to supplies. Unadjusted balance in Supplies on December 31, 2018 $ 1,813 Unadjusted balance in Supplies Expense on December 31, 2018 7,271 Supplies on hand, counted on December 31, 2018 310 What amount should be reported on the 2018 income statement as Supplies Expense?
Answer:
The supplies expense to be reported on Income Statement for 2018 is $8774
Explanation:
To calculate the supplies expense, we first need to adjust the balance in the supplies account by deducting the supplies expense that has not been deducted yet. This can be calculated by taking the difference between the supplies balance in supplies account and the supplies on hand balance at 31 December 2018.
Supplies expense yet to be adjusted = 1813 - 310 = $1503
This expense will be recorded to the supplies account and will increase the balance of supplies expense account to:
Supplies expense adjusted = 7271 + 1503 = $8774
On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal entry required" in the first account field.)
Answer and Explanation:
The Journal entries are shown below:-
1. Cash Dr, $600,000
To Bonds Payable $600,000
(Being Bonds issued is recorded)
Here we debited the cash as increased the assets and we credited the bonds payable as it also increased the liabilities
2. Interest Expense Dr, $21,000 ($600000 × 7% × 6 ÷ 12)
To Cash $21,000
(Being first semi annual interest paid is recorded)
Here we debited the interest expenses as it increased the expenses and we credited the cash as it decreased the assets
3. Interest Expense Dr, $21,000 ($600,000 × 7% × 6 ÷ 12)
To Cash $21,000
(Being second semi annual interest paid is recorded)
Here we debited the interest expenses as it increased the expenses and we credited the cash as it decreased the assets
Here, we are going to prepare the entry for the bond in the question.
Date Accounts title and explanation Debit Credit
01-Jan-21 Cash $600,000
Bonds Payable $600,000
(Bonds issued)
30-Jun-21 Interest Expense $21,000
[600000 x 7% x 6/12]
Cash $21,000
(First semi annual interest paid)
31-Dec-21 Interest Expense $21,000
[600000 x 7% x 6/12]
Cash $21,000
(Second semi annual interest paid)
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