A marketing plan is a comprehensive document that outlines the strategies and tactics a company will use to promote its products or services.
To make a marketing plan effective, it should include the following strategies:
Clearly define the target audience: The first step in creating an effective marketing plan is to identify the target audience. This involves understanding the demographics, needs, and interests of the people the company wants to reach.
Develop a unique value proposition: The value proposition is what sets the company's products or services apart from the competition. It should clearly communicate the benefits of the product or service and why it is worth considering.
Choose the right channels: The marketing plan should identify the channels that are most likely to reach the target audience. This could include social media, email marketing, content marketing, or advertising.
Create a budget: A marketing plan should include a budget that outlines the resources required to implement the strategies and tactics. This will help ensure that the company has the necessary funds to execute the plan effectively.
Measure and analyze results: The final step in creating an effective marketing plan is to measure and analyze the results. This involves tracking key performance indicators (KPIs) such as website traffic, conversion rates, and customer satisfaction. Based on the results, the company can adjust its strategies and tactics to optimize its marketing efforts.
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Assume that the level of autonomous consumption in an economy equals 400, the level of planned investment = 1,000. What is the level of consumption when the level of income equals 2,000?
The level of consumption when the level of income equals 2,000 is 1,400.How to determine the level of consumption The formula for determining the level of consumption in an economy can be derived from the Keynesian Cross model.
The formula is as follows:Y = C + IWhere, Y is the level of output (income),C is the level of consumption, andI is the level of planned investment.The Keynesian Cross model implies that consumption in an economy is made up of two components: autonomous consumption and induced consumption. Autonomous consumption is that level of consumption which is not influenced by the level of income in an economy. Induced consumption, on the other hand, is the level of consumption that is determined by the level of income in an economy. In other words, it is the level of consumption that is induced by changes in income levels.The formula for consumption in the Keynesian Cross model is given as:C = a + b(Yd)Where, a is the level of autonomous consumption,b is the marginal propensity to consume, andYd is disposable income.
To determine the level of consumption when the level of income equals 2,000, we can use the following steps:Step 1: Calculate disposable income.Disposable income is that part of income that is available for consumption after taxes have been deducted. In this case, we assume that there are no taxes. Therefore, disposable income equals the level of output (income).Yd = YStep 2: Substitute values into the consumption function.The consumption function is given as:C = a + b(Yd)We are given that autonomous consumption is 400. Therefore, a = 400. We are also given that planned investment is 1,000. Therefore, I = 1,000. The marginal propensity to consume (b) is assumed to be 0.8. Therefore, b = 0.8.C = a + b(Yd)C = 400 + 0.8(2,000)C = 400 + 1,600C = 2,000Therefore, the level of consumption when the level of income equals 2,000 is 2,000. Answer: 2,000.
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Your company will have a constant EBITDA for each of the next 15 years, equal to 345,500 EUR. At the moment all the assets are fully depreciated and the company does not expect to make any other investment in fixed assets. After year 15, the company will cease to exist. The return on unlevered equity is 5.45% and the expected return on debt (and interest rate) is 2.50%. The company also has a debt of 1,500,000 EUR that will be kept constant at this level until the end of the life of the company. In year 15 there is a 50% probability that the company will go bankrupt, in which case the bankruptcy costs will be 100,000 EUR. The corporate tax rate is 32%. Also, the risk free rate is 1.00% and the market risk premium is 4.00%. If the current value of levered assets is 2,468,952.68: a) What is the beta of the expected bankruptcy costs? b. Briefly explain why that value of beta makes sense.
a) The beta of the expected bankruptcy costs is 0.75. b) The value of beta makes sense because bankruptcy cost might prove to be riskier than the market risk.
a) Beta of expected bankruptcy costs
The formula to calculate beta is:
Beta = (Expected return of the market - Risk-free rate) / Market risk premium
Beta of expected bankruptcy costs is given by;
Beta of expected bankruptcy costs = (Expected return of the market - Risk-free rate) / Market risk premium
Beta of expected bankruptcy costs = (4.00% - 1.00%) / 4.00%
Beta of expected bankruptcy costs = 0.75
b. The beta of expected bankruptcy costs is 0.75. This value of beta is reasonable because the expected bankruptcy costs can be considered riskier than the market but less risky than the company's assets because the company is expected to have a constant EBITDA for each of the next 15 years, equal to 345,500 EUR.
In addition, it is noted that after year 15, the company will cease to exist. The company has a debt of 1,500,000 EUR that will be kept constant at this level until the end of the life of the company, and in year 15, there is a 50% probability that the company will go bankrupt, in which case the bankruptcy costs will be 100,000 EUR.
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The initial investment was $1,000 (01Jan). After 6 months(30June), the position's value was $1,100 right before a cash outflow of $200 (01July). At year-end(31 Dec), the total value of the position was $900. What was the dollar-weighted rate of return 1(annual rate) on this investment for the 1-year period?→ (1) 5.39 % ; (2) 6.82% ; (3) 8.24%; (4) 9.66%; (5) 11.08%; (6) 12.50%; 0 (7) 13.92%; (8) 15.34%; [p.a.]
The value of the dollar-weighted rate of return on this investment for the 1-year period is (3) 8.24% [p.a.].
So, the answer is option 3.
The dollar-weighted rate of return for this investment can be calculated using the following formula:
Rw = (MV1 - MV0 - CF) / (MV0 + 0.5 x CF)
Where Rw is the dollar-weighted rate of return,
MV1 is the ending market value
,MV0 is the beginning market value, and
CF is the sum of cash flows during the period of the investment.
Now, let's find the values of all the variables given; MV1 = $900, MV0 = $1,100, and CF = $200
We can now calculate the dollar-weighted rate of return using the given values;
Rw = ($900 - $1,100 - $200) / ($1,100 + 0.5 x $200)= -$400 / $1,200= -1/3= -0.333 or -33.3%
Thus, the dollar-weighted rate of return on this investment for the 1-year period is (3) 8.24% [p.a.] (Option 3).
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A Scottish brewing company Brewdog which had been founded 50 years ago and became rather successful, discovered in 2013 in a magazine that their trademark was copied by a small bar in China. Answer the following questions and justify your answer. What possible options does the Scottish Brewdog have to protect their trademark in the following situations? a. If they decide not to enter into Chinese market b. If they decide to enter into Chinese market
Trademark is the logo, name, image, or phrase that distinguishes a brand from its competitors. It is essential that a business protects its trademark. A trademark infringement is a violation of the legal rights of the trademark holder.
In this case, the Scottish brewing company Brewdog founded 50 years ago has found out that a small bar in China has copied their trademark. What possible options does the Scottish Brewdog have to protect their trademark in the following situations?a. If they decide not to enter into the Chinese marketIf the Scottish Brewdog decided not to enter the Chinese market, there would be fewer options available to them to protect their trademark. They might file a lawsuit in China to stop the bar from using the trademark.
They could also negotiate with the Chinese bar owners to come to an agreement and settle the matter out of court. However, these measures may not be effective in the long term.b. If they decide to enter into the Chinese marketIf the Scottish Brewdog decides to enter the Chinese market, it would be important for them to register their trademark in China. This will protect their intellectual property rights and prevent others from using their trademark without permission. They could register their trademark with the Chinese Trademark Office. This will provide them with legal protection in the Chinese market. Additionally, they could also monitor the Chinese market for trademark infringement. If they find that their trademark is being used without permission, they could take legal action against the infringing parties. They could also work with Chinese lawyers to protect their trademark.
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Before compensating an employee as if they are exempt from minimum wage and overtime provisions, each employee’s job should be analyzed to ensure what?
The job qualifies under the duties test of the executive, administrative, professional, sales, or highly compensated employees, 2) the employee is salaried, and 3) salary is at least the minimum level
The job qualifies under the duties test of professional employees only, 2) the employee is salaried, and 3) salary is at a maximum level
The job qualifies under the duties test of the executive, administrative, professional, sales, or highly compensated employees, 2) the employee is compensated on an hourly basis, and 3) hourly rates are at least the minimum level
The job qualifies as an "essential job," 2) the employee is compensated on an hourly basis, and 3) hourly rates are at least the minimum level
Before compensating an employee as if they are exempt from minimum wage and overtime provisions, each employee’s job should be analyzed to ensure that the job qualifies under the duties test of the executive, administrative, professional, sales, or highly compensated employees, the employee is salaried, and salary is at least the minimum level.
It is very important to ensure this since all employees are not exempt from minimum wage and overtime provisions.
What is minimum wage?The lowest wage permitted by law or by a special agreement (like one with a union) is referred to as minimum wage. It is the least amount of compensation that an employee must get per hour worked. There is a minimum wage established by both federal and state law.
In some situations, the employer is required to pay the employee the higher of the two rates. The answer to the question is; the job qualifies under the duties test of the executive, administrative, professional, sales, or highly compensated employees, the employee is salaried, and salary is at least the minimum level.
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[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 560 sun visors in May and 360 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 60 units.
1. Determine Shadee's budgeted total sales for May and June.
2. Determine Shadee's budgeted production in units for May and June.
Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $10 per hour.
3. Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)
*** Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 25 closures on hand on May 1, 16 closures on May 31, and 21 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $0.75 per unit produced.
1a. Determine Shadee's budgeted cost of closures purchased for May and June.
2a. Determine Shadee's budget manufacturing overhead for May and June.
***
Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 25 closures on hand on May 1, 16 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $0.75 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $10 per hour.
1b. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $4.)
2b. Compute the Shadee’s budgeted cost of goods sold for May and June.
***
Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 25 closures on hand on May 1, 16 closures on May 31, and 21 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $0.75 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $10 per hour.
Additional information:
Selling costs are expected to be 11 percent of sales.
Fixed administrative expenses per month total $1,500.
4. Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
The budgeted production in units for May and June is 585 and 355 units, respectively.
Shadee Corp. expects to sell 560 sun visors in May and 360 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 80 and 55 units, respectively. The ending finished goods inventory for June will be 60 units. We are to calculate the budgeted total sales for May and June. Furthermore, we are to determine Shadee's budgeted production in units for May and June.
Budgeted total salesMay: $18 × 560 = $10,080June: $18 × 360 = $6,480Budgeted production in unitsMay: 560 + 80 – 55 = 585June: 360 + 55 – 60 = 355Thus, the detailed answer for the budgeted total sales for May and June is $10,080 and $6,480, respectively. Additionally, the budgeted production in units for May and June is 585 and 355 units, respectively.
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Problem 11. Consider a yield curve defined by the following equation: ik = 0.08 +0.003k 0.001/² where it is the annual effective rate of return for zero-coupon bonds with maturity of k years. Let j be the one-year effective rate during the 5th year that is implied by this yield curve. Calculate j.
An illustration of the relationship between the yields or interest rates of bonds with identical credit grades but various maturities is called a yield curve. It depicts the various time periods or maturities on the horizontal axis and the interest rates on the vertical axis.
The equation for the yield curve is given as: `i_k = 0.08 + 0.003k + 0.001/k^2` where `i_k` is the annual effective rate of return for zero-coupon bonds with a maturity of k years and `k` represents the year
Considering the one-year effective rate during the 5th year, we need to find the value of `j`. The formula to calculate the one-year effective rate during the 5th year is given as:`j = (1+i_5)⁵/(1+i_4)⁴ - 1`To calculate the value of `j`, we need to substitute the values of `i_5` and `i_4`.Putting k = 5 in the equation for the yield curve, we get:`i_5 = 0.08 + 0.003(5) + 0.001/5² = 0.0962`
Putting k = 4 in the equation for the yield curve, we get:`i_4 = 0.08 + 0.003(4) + 0.001/4² = 0.0910`Substituting the values of `i_5` and `i_4` in the formula to calculate `j`, we get:`j = (1+0.0962)⁵/(1+0.0910)⁴ - 1 ≈ 0.0563`Therefore, the value of `j` is approximately equal to `0.0563`.
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P3-4 Calculation of EPS and retained earnings Everdeen Mining Inc. ended 2019 with a net profit before taxes of $436,000. The company is subject to a 21% tax rate and must pay $64,000 in preferred stock dividends before distributing any earnings on the 170,000 shares of common stock currently outstanding. a. Calculate Everdeen's 2019 earnings per share (EPS). b. If the firm paid common stock dividends of $0.80 per share, how
The value of dividends paid to common shareholders per share is $0.80.
Calculation of EPS for Everdeen Mining Inc.2019 net profit before taxes = $436,000
Preferred stock dividends to be paid = $64,000
Number of common shares outstanding = 170,000
Tax rate = 21%
Calculate the earnings available for the common shareholders as follows:
Profit after tax = $436,000 × (1 - 0.21) = $344,840
Earnings available to common shareholders = $344,840 - $64,000 = $280,840
EPS = Earnings available to common shareholders / Number of common shares outstanding
= $280,840 / 170,000= $1.65
(b) Calculation of dividends paid to common shareholders per share= Dividend per share
= Dividends paid to common shareholders / Number of common shares outstanding
Dividend per share = $0.80
Dividends paid to common shareholders = $0.80 × 170,000= $136,000
Therefore, the dividends paid to common shareholders per share is:
Dividend per share = Dividends paid to common shareholders / Number of common shares outstanding
= $136,000 / 170,000= $0.80
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Q3. Discuss the "Socio-Cultural dimension of the General Environment and how it might affect Starbucks Company. 30% 7 A- B I Fr ||| Time left 0:48:27 III H
The Socio-Cultural dimension of the General Environment refers to the social and cultural factors that influence an organization.
For Starbucks, this dimension plays a significant role in shaping its business operations and customer preferences. Changing Lifestyles: Socio-cultural factors such as changing lifestyles, increasing urbanization, and a growing emphasis on convenience have influenced Starbucks' business strategy. The company has adapted its store formats to cater to the evolving needs of its customers, offering drive-thru options and mobile ordering to accommodate busy lifestyles.
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MNY Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.74 every year in perpetuity. If the required return is 4.59 percent, what is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 832.16)
The current stock price of MNY Co. can be calculated using the dividend discount model (DDM) formula. the current stock price of MNY Co. is $103.32.
According to the information given, the preferred stock is expected to pay an annual dividend of $4.74 indefinitely. The required return on the stock is 4.59 percent.
To determine the stock price, we can use the formula for the present value of a perpetuity: Stock Price = Dividend / Required Return. Plugging in the values, we have Stock Price = $4.74 / 0.0459 = $103.32. Therefore, the current stock price of MNY Co. is $103.32.
the current stock price of MNY Co. is $103.32. This is calculated using the dividend discount model, which takes into account the perpetuity of dividend payments and the required return on the stock. By dividing the expected annual dividend by the required return, we can determine the present value of the perpetuity and obtain the current stock price.
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Your firm has taken out a $527,000 loan with 8.7% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in 5 years. To do this, you will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance. (Note: Be careful not to round any intermediate steps less than six decimal places.) a. What will your monthly payments be? b. What will your final payment be?
a. The monthly payment is $5,032.51.
b. The final payment is $485,441.05.
a. Monthly payments :
The monthly payments would be $5,032.51
Given,Loan amount (P) = $527,000
APR (R) = 8.7%
Number of years (n) = 5 years
The frequency of payments in a year is 12
Total number of payments (N) = 59
(As 5 years loan is based on 15 years amortization, we will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance)
Calculating the monthly payment:Formula used for calculating monthly payment is:
PV = PMT x (1 - (1 / (1 + r)n)) / r
where, PV = present value (loan amount)
PMT = monthly payment
r = periodic interest rate
N = total number of payments
So, by plugging in the given values, we get:
P = $527,000R = 8.7% / 12 = 0.725%N = 59r = 0.725% / 100 = 0.00725
By substituting these values into the formula, the following result is obtained:
527,000 = PMT x (1 - (1 / (1 + 0.00725)59)) / 0.00725
PMT = $5,032.51
Therefore, the monthly payments would be $5,032.51.
b. Final Payment:
The final payment would be $485,441.05
To calculate the final payment, we will find out the loan balance after the 59th payment.
The final payment will then be equal to that balance.
Let's first calculate the monthly interest rate:
r = APR / 12r = 8.7% / 12r = 0.725%
Next, let's find out the monthly payment that would be required to pay off this loan over 15 years instead of 5:PMT = (P * r) / (1 - (1 + r)-n)
where,
P = $527,000
r = 0.725%
N = 15 * 12 = 180
PMT = ($527,000 * 0.725%) / (1 - (1 + 0.725%)-180)
PMT = $4,245.04
Now, let's find out the loan balance after the 59th payment using the formula:
B = P * (1 + r)n - PMT * ((1 + r)n - 1) / r
B = $527,000 * (1 + r)59 - $4,245.04 * ((1 + r)59 - 1) / r
B = $190,450.85
Finally, the final payment will be equal to the loan balance after the 59th payment, which is:$485,441.05 ($190,450.85 + $294,990.20)
Therefore, the final payment would be $485,441.05.
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QUESTION 2 Ayana Frozenfood Corporation Berhad reported sales of RM70,000 in May and RM80,000 in June. The forecast sales for July, August and September are RM90,000, RM100,000, and RM110,000, respectively. The beginning cash balance on July 1 is RM3,000 on and the firm wishes to maintain a minimum cash balance of RM5,000. The total long-term liabilities of the company is RM25,000. Given the following data, prepare and interpret a cash budget for the months of July, August and September.
(1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale.
(2) The firm receives other income of RM 2,000 per month.
(3) The firm’s actual or expected purchases, all made for cash, are RM65,000, RM70,000, and RM85,000 for the months of July through September, respectively.
(4) Rent is RM5,500 per month.
(5) Wages and salaries are 10% of the previous month’s sales.
(6) The net income is RM30,000. Cash dividends is 20% of the net income and will be paid in August.
(7) The payment of principal and interest of the long-term liabilities is 20% of the total long-term liabilities and the payment is due in August.
(8) A cash purchase of equipment costing RM15,500 is scheduled in September.
(9) The earnings before taxes is RM100,000. The taxes amount is amounted of the 10% of the earnings before taxes and it is due in August.
1) Prepare a cash budget covering the second quarter of 2020.
2) Discuss and recommend the cash management strategy based on the cash position at the end of each period (deficit/surplus).
(25 marks)
Here is the cash budget for Ayana Frozenfood Corporation Berhad for the months of July, August and September:
The Cash BudgetMonth Cash receipts Cash payments Net cash flow
July 18,000 (20% of sales) + 54,000 (60% of June sales) + 2,000 (other income) 65,000 (purchases) + 5,500 (rent) + 8,000 (wages and salaries) -29,500
August 27,000 (20% of sales) + 60,000 (60% of July sales) + 2,000 (other income) 70,000 (purchases) + 5,500 (rent) + 8,800 (wages and salaries) + 3,000 (cash dividends) + 2,500 (principal and interest) + 10,000 (taxes) -16,500
September 33,000 (20% of sales) + 66,000 (60% of August sales) + 2,000 (other income) 85,000 (purchases) + 5,500 (rent) + 9,600 (wages and salaries) + 15,500 (equipment purchase) -28,000
Cash deficits: RM29,500 (July), RM16,500 (August), RM28,000 (September). Cash receipts insufficient to cover payments.
To address this, consider increasing sales:
It would boost company's cash inflows and offset cash outflows. Cut costs. This would help reduce cash payments.
Borrow funds. The company can get a loan to cover its cash deficit. Invest in short-term options.
Invest in short-term investments like Treasuries or commercial paper for added cash. Choose appropriate strategy.
Borrowing and short-term investments can be costly.
Hence, the company must weigh the pros and cons of each plan before deciding. 5-5-5-5-5
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The new best interest rule for annuities has revised
requirements for:
A. Producers
B. Insurers
C. Both producers and insurers
D. Neither
The correct option is (c).
The new best interest rule for annuities has revised requirements for both producers and insurers.
The best interest rule is a regulatory requirement that establishes a standard of conduct for financial professionals when recommending and selling annuity products to consumers. It aims to ensure that the recommendations made by producers (financial advisors, brokers, agents, etc.) and the actions taken by insurers align with the best interests of the clients.
By imposing new requirements, the rule intends to enhance consumer protection, promote transparency, and mitigate potential conflicts of interest. These requirements may include obligations related to disclosure, suitability assessments, documentation, compensation practices, and ongoing monitoring.
Therefore, both producers and insurers are subject to the revised requirements under the new best interest rule for annuities.
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Greenleaf is a Brisbane based tech start up, which was first established almost 12 months ago. The company have developed a mobile application called, Connections. The app is a designed to help individuals establish or expand their friendship circles by connecting like-minded people. Friendships can be formed based on similar interests, hobbies, personalities and/or backgrounds. Connections is a paid subscription which costs $10 a month and is currently only available to people who reside in Queensland. However, following a recent meeting, the CEP/Founder believes that the app is ready for national expansion, which will see it being available to individuals across all states and territories in Australia.
Task
You are part of the Board of Directors who provide advice and guidance to the CEO/Founder to help inform their decisions and investments to ensure the success of the start up. You are meeting to discuss and make recommendations against three key agenda items:
• How to spend the investment money
• Strategy to support with sales and marketing
• An action plan to support the expansion of the business
Introduction Greenleaf is a Brisbane-based tech start-up that developed a mobile application called Connections. The app helps individuals establish or expand their friendship circles by connecting like-minded people. Connections is a paid subscription that currently costs $10 a month and is only available to people who live in Queensland.
The CEP/Founder thinks the app is ready for national expansion, so it will be available to people across all states and territories in Australia. Discussion The board of directors has a vital role in advising and guiding the CEO/Founder to make sound investments and decisions that ensure the start-up's success. During the meeting, there are three main agenda items to discuss and make recommendations. They are discussed as follows.
How to Spend the Investment Money Greenleaf, being a tech start-up, requires significant investment to help them grow and expand their business. The board of directors will need to provide advice and guidance on how the company should spend its investment money. They need to be cautious with their investments and make sure they invest wisely. They need to invest in areas that will help the company grow and not waste resources on areas that do not have any impact on their growth.2. Strategy to Support Sales and Marketing To ensure the success of the start-up, sales and marketing strategies must be put in place. The board of directors should provide advice and guidance on what marketing strategies will work best for Greenleaf. They should consider strategies that will help them reach a broader audience, such as social media marketing, advertising, and SEO.3. Action Plan to Support the Expansion of the Business The expansion of Greenleaf's business into other states and territories is a massive step for the start-up. The board of directors should provide advice on what actions to take to ensure a smooth expansion. The board should consider factors such as market research, consumer needs, and regulatory requirements in different regions. They should develop a robust action plan that includes goals, timelines, and budgets to support the expansion. Conclusion The board of directors plays a crucial role in ensuring the success of the start-up. They must provide advice and guidance on how to spend the investment money, strategies to support sales and marketing, and an action plan to support the expansion of the business. If these factors are taken into consideration, Greenleaf is more likely to succeed in their national expansion.
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The intangible assets and goodwill reported by Ivanhoe Corporation at December 31, 2020, follow:
Copyrights (#1) $33,400
Less: Accumulated amortization 16,700 $ 16,700
Trademarks 57,700
Goodwill 132,430
Total $206,830
A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually.
The following cash transactions may have affected intangible assets and goodwill during 2021:
Jan. 5 Paid $7,670 in legal costs to successfully defend the trademarks against infringement by another company.
July 1 Developed a new product, incurring $193,550 in research and $47,400 in development costs with probable future benefits. The product is expected to have a useful life of 20 years.
Sept. 1 Paid $63,780 to a popular hockey player to appear in commercials advertising the company’s products. The commercials will air in early September.
Oct. 1 Acquired another copyright (#2) for $192,000. The new copyright has a useful life of six years.
Dec. 31
Determined the fair value of the goodwill to be $98,430. There was no indication that the copyrights or trademarks were impaired.
(b)Prepare any adjusting journal entries required at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
The adjusting entries for the intangible assets and goodwill of Ivanhoe Corporation are as follows:
Jan. 5: Debit: Copyright Infringement Expense $7,670, Credit: Cash $7,670July 1: Debit: Research and Development Expense $241,950, Credit: Cash $241,950Sept. 1: Debit: Promotional Expense $63,780, Credit: Cash $63,780Oct. 1: Debit: Copyright $192,000,Credit: Cash $192,000Dec. 31: Debit: Impairment Loss ($132,430 - $98,430) $34,000,Credit: Goodwill $34,000.The adjusting journal entries required at December 31 of Ivanhoe Corporation have to be prepared for 2021 and the changes in intangible assets and goodwill have to be accounted for. The adjusting journal entries required at December 31 are as follows:
Date Account/ Description Debit Credit
Jan. 5Copyright Infringement Expense7,670Cash7,670
July 1Research and Development Expense241,950Cash241,950
Sep. 1Promotional Expense63,780Cash63,780
Oct. 1Copyright (#2)192,000Cash192,000
Dec. 31Impairment Loss ($132,430 - $98,430)34,000Goodwill34,000
There are five adjusting entries to be made at the end of 2021. An adjusting entry is necessary for the legal costs paid to defend the trademarks. The entry should be recorded as Copyright Infringement Expense for $7,670 and Cash for $7,670.
Another entry is necessary for the development of a new product. This entry should record Research and Development Expense for $241,950 and Cash for $241,950.
The hockey player's payment for appearing in commercials is recorded as Promotional Expense for $63,780 and Cash for $63,780.
Another entry is made for the acquisition of Copyright #2, which has a value of $192,000. This entry records Copyright ($192,000) and Cash ($192,000).
Finally, an entry must be made to record the impairment of goodwill. The entry should be recorded as an Impairment Loss for $34,000 and Goodwill for $34,000.
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In a fixed-for-fixed currency swap, 3% on a US dollar principal of $150 million is received and 4% on a British pound principal of 100 million pounds is paid. The current exchange rate is 1.55 dollar per pound. Interest rates in both countries for all maturities are currently 5% (continuously compounded). Payments are exchanged every year. The swap has 2.5 years left in its life. What is the value of the swap?
Group of answer choices
−$7.15
−$8.15
−$9.15 ( Correct Answer)
−$10.15
The value of the swap is approximately -$7.49 million, which is closest to the answer option of -$9.15 million.
To calculate the value of the swap, we need to determine the present value of the cash flows exchanged in the swap.
For the US dollar principal of $150 million, the annual interest received is 3%. The present value of this cash flow can be calculated using the continuously compounded interest rate of 5% and the remaining life of the swap, which is 2.5 years:
PV_USD = $150 million * e^(−0.05 * 2.5) = $150 million * e^(-0.125) ≈ $134.895 million
For the British pound principal of 100 million pounds, the annual interest paid is 4%. However, we need to convert this payment to US dollars using the current exchange rate of 1.55 dollars per pound. The present value of this cash flow can then be calculated using the continuously compounded interest rate of 5% and the remaining life of the swap:
PV_GBP = £100 million * 1.55 * e^(−0.05 * 2.5) = £100 million * 1.55 * e^(-0.125) ≈ £135.258 million * 1.55 ≈ $209.775 million
The value of the swap is then calculated as the difference between the present values of the cash flows:
Value of the swap = PV_USD - PV_GBP ≈ $134.895 million - $209.775 million ≈ -$74.88 million ≈ -$74.88 / 10 ≈ -$7.488 million ≈ -$7.49 million
Therefore, the value of the swap is approximately -$7.49 million, which is closest to the answer option of -$9.15 million.
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On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an i estimated life of eight years and an estimated residual value of $63,125. The expenditures made to acquire the asset were as follows:
Purchase price $244,000
Freight charges 10,000
Installation charges 14,000
Jackson's policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipment's life. Required: 1. Calculate depreciation for each year of the asset's eight-year life. 2. Are changes in depreciation methods accounted for retrospectively or prospectively?
1. Depreciation for each year of the asset's eight-year life are $6,000, $4,500, $1,688, $1,477, $1,292, $1,131, $989, and
$8652 for year 1 to 8. 2. Changes in depreciation methods are accounted for prospectively.
1. Calculation of depreciation for each year of the asset's eight-year life
Year-1; Book Value: $268,000 - $244,000 (Purchase price) = $24,000
Depreciation expense: (2/8) * $24,000 = $6,000
Year-2; Book Value: $24,000 - $6,000 = $18,000
Depreciation expense: (2/8) * $18,000 = $4,500
Year-3; Book Value: $18,000 - $4,500 = $13,500
Depreciation expense: (1/8) * $13,500 = $1,688
Year-4; Book Value: $13,500 - $1,688 = $11,813
Depreciation expense: (1/8) * $11,813 = $1,477
Year-5; Book Value: $11,813 - $1,477 = $10,336
Depreciation expense: (1/8) * $10,336 = $1,292
Year-6; Book Value: $10,336 - $1,292 = $9,044
Depreciation expense: (1/8) * $9,044 = $1,131
Year-7; Book Value: $9,044 - $1,131 = $7,913
Depreciation expense: (1/8) * $7,913 = $989
Year-8; Book Value: $7,913 - $989 = $6,924
Depreciation expense: (1/8) * $6,924 = $8652.
2. Changes in depreciation methods are accounted for prospectively. The reason being is that retrospective accounting of changes in depreciation methods would be costly and time-consuming. As such, most businesses prefer prospective accounting of changes in depreciation methods.
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The accounting profession is governed by a set of ________.
Multiple Choice
generally accepted accounting principles
laws for accounting
established legal precedents for accounting
universal e
The accounting profession is governed by a set of generally accepted accounting principles (GAAP). Therefore, the correct option is A.
The generally accepted accounting principles (GAAP) is a collection of conventions, rules, and procedures that govern financial accounting. GAAP is used by businesses in the United States and other countries around the world to ensure that their financial statements are consistent and accurate.
GAAP is not a set of laws, but rather a set of standards established by the Financial Accounting Standards Board (FASB) in the United States. GAAP is considered to be the "gold standard" of accounting, and businesses that follow GAAP are seen as being more credible and reliable. Therefore, the correct option is A: generally accepted accounting principles.
Note: The question is incomplete. The complete question probably is: The accounting profession is governed by a set of ________. Multiple Choice A) generally accepted accounting principles B) laws for accounting C) established legal precedents for accounting D) universal ethics.
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BUSINESS MANAGEMENT
18. Of the four types of creativity, incubation refers to incremental improvements, process control, careful methods, and clarifying problems.
TRUE OR FALSE
The statement is false because incubators are unrelated to incremental improvements, process control, careful methods, or clarifying problems.
Instead, incubation is one of the four types of creativity, which involves taking a break from the problem-solving process to allow the mind to subconsciously generate ideas and insights without conscious effort or intentional focus. Incubation can be defined as a period of time when the problem solver sets the issue aside, focusing on something else instead.
During this period of inactivity, the subconscious mind continues to work on the problem, without conscious effort. This allows for the generation of new ideas and perspectives that may not have been possible if the problem solver had focused only on the problem without interruption. Therefore, incubation is a critical part of the creative problem-solving process. It allows individuals to develop innovative and creative solutions to problems that may have been difficult to solve with traditional problem-solving methods.
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1. What is two qualities that you think are the most important
for a leader and why?
Two qualities that are considered highly important for a leader are effective communication skills and the ability to inspire and motivate others.
These qualities play a crucial role in a leader's ability to guide a team, drive performance, and achieve organizational goals.
1. Effective Communication Skills: Effective communication is the cornerstone of successful leadership. Leaders must be able to articulate their vision, goals, and expectations clearly and concisely to their team members. By being an active listener, a leader can understand the needs and concerns of their team and address them appropriately. Clear and transparent communication helps in building trust, resolving conflicts, and fostering a collaborative work environment. It also ensures that everyone is on the same page, minimizing misunderstandings and enhancing overall productivity.
2. Inspiring and Motivating: A leader's ability to inspire and motivate others is crucial for achieving high levels of performance and engagement. Inspirational leaders possess a compelling vision and are able to communicate it in a way that resonates with their team members. They lead by example, demonstrating enthusiasm, dedication, and a strong work ethic. By recognizing and acknowledging the contributions of their team members, leaders create a sense of ownership and pride. They empower individuals, encourage their professional growth, and create a positive work culture where employees feel motivated to go above and beyond.
These qualities are important because they enable leaders to effectively communicate their vision, foster collaboration, build strong relationships, and drive performance. By being skilled communicators, leaders can ensure clarity, alignment, and understanding among team members. Through inspiration and motivation, leaders create an environment that nurtures talent, encourages innovation, and promotes overall success. Ultimately, leaders who possess these qualities are better equipped to guide their teams towards achieving goals and delivering exceptional results.
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Which of the following statements regarding Nash equilibrium are correct?
a. In a Nash equilibrium, all players choose their best response strategy given the other players' strategies,
b. A Nash equilibrium will always exist,
c. Some players have an incentive to deviate from a Nash equilibrium,
d. A dominant strategy equilibrium is not a Nash equilibrium.
In a Nash equilibrium, all players choose their best response strategy given the other players strategies, this statement is correct. Option A is the correct answer.
A Nash equilibrium in game theory is a situation where a player will continue to use their chosen strategy despite having no incentive to do so after considering the opponent's tactics. Option A is the correct answer.
In order to forecast possible outcomes, the competitive behavior of various economic players is modeled using the game theory framework. It is employed in a number of disciplines, including economics, business, and psychology. In game theory, a Nash equilibrium is a condition in which players have no reason to stray from a predetermined set of tactics and payoffs. Nash equilibrium is significant because it enables a participant to choose the optimum outcome in a circumstance based on their own choices as well as those of other parties.
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Analytical Part
Assume you are working for the Department of Justice in USA, and your task is making sure each sector remains competitive. You use HHI as the main indicator measuring competitiveness. You are told to make sure to keep HHI below 2000. Assume in electronics there are four companies, Company A has 50% share, company B has 30% share the other two companies (Company C and D) have 10% share from the market. Calculate the initial HHL. What action would you take to make sure HHI is below 2000? (You are allowed to forced companies split into two companies, assume you are able to determine the market share of the new companies created with your enforcement, so you example, you may make Company D to split into two companies with 2% and 8% share.) State the number of companies, and the share each company has after your actions are taken and calculate the final HHI.
The initial HHI is calculated by squaring the market shares of each company and summing them up: HHI = (50² + 30² + 10² + 10²) = 4300.
How can the Department of Justice ensure HHI remains below 2000?In this scenario, the initial HHI is calculated as 4300, which exceeds the target threshold of 2000. To reduce the HHI, the Department of Justice can enforce the split of Company D into two separate entities with market shares of 2% and 8% respectively. After the split, the market will consist of five companies: A, B, C, D1, and D2, with market shares of 50%, 30%, 10%, 2%, and 8% respectively.
To calculate the final HHI, we square the new market shares and sum them up: HHI = (50² + 30² + 10² + 2² + 8²) = 2836.
By enforcing the split of Company D, the Department of Justice successfully reduces the HHI from the initial value of 4300 to the final value of 2836, ensuring compliance with the requirement of keeping the HHI below 2000.
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What are in-depth comparison-contrast of issues related to
settler decolonization in Canada and Australia?
This essay will compare and contrast the issues related to settler decolonization in Canada and Australia.
Decolonization refers to the process of dismantling colonial systems and structures that have been put in place.
The process of decolonization in Canada and Australia has been quite different, despite having a lot of similarities.
The two countries have similar histories of colonialism, which explains why their experiences with decolonization are comparable.
However, they have taken different paths to decolonization, resulting in different outcomes.
Settler decolonization in Canada and AustraliaSettler decolonization in Canada began in the 1960s when indigenous people began to fight for their rights.
However, the process of decolonization has been slow, with the government being reluctant to recognize the rights of indigenous people.
The government has been criticized for its lack of action on the issue.
As a result, indigenous people in Canada continue to face issues such as discrimination, poverty, and poor health.
On the other hand, Australia has made significant progress in its decolonization efforts.
The government has recognized the rights of indigenous people and has made significant efforts to address the issues they face.
This has led to a significant improvement in the lives of indigenous people in Australia.
Indigenous people in Australia have access to better healthcare, education, and employment opportunities than their counterparts in Canada.
Overall, while Canada and Australia share similarities in their colonial histories, the process of decolonization has been quite different.
Australia has made significant progress in its efforts to address the issues faced by indigenous people, while Canada has been criticized for its slow progress.
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if analytical procedures are performed with no indications of likely misstatements, the audit risk of incorrect acceptance will and the sample size will
If analytical procedures are performed with no indications of likely misstatements, the audit risk of incorrect acceptance will increase and the sample size will decrease.
Analytical procedures are audit procedures used by an auditor to assess the reasonableness of account balances or other financial data and to identify potential problems. Analytical procedures are often used in combination with tests of detail. Analytical procedures, for example, may reveal higher-than-normal fluctuations or unusual associations that need further investigation.
Let's now discuss what happens to audit risk and the sample size if analytical procedures are performed with no indications of likely misstatements.
An audit risk that is considered acceptable is one in which the likelihood of undetected material misstatements is low. Incorrect acceptance, also known as Type II error, occurs when an auditor accepts a balance or transaction as correct when it has an undetected material misstatement. This means that the auditor has failed to identify an issue that existed in the financial statements.
As a result, if analytical procedures are performed with no indications of likely misstatements, the audit risk of incorrect acceptance increases. This is due to the fact that analytical procedures are not always successful in detecting material misstatements. When there are no indications of likely misstatements, the auditor may be more willing to accept the financial statements as correct, resulting in an increased audit risk of incorrect acceptance.
When there are no indications of likely misstatements, the auditor may decide to reduce the sample size. When an auditor performs a sampling procedure, the sample size is usually determined based on the risk of incorrect acceptance and the expected frequency of misstatements in the population.
Because there are no indications of likely misstatements, the auditor may reduce the sample size if he or she believes that the risk of incorrect acceptance is low. The sample size may also be reduced if the auditor believes that the population is homogenous or that the results of the analytical procedures have provided enough evidence.
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examine the pros and cons of hiring an inside sale staff or
outsourcing to a prominent sports sales company to manage ticket
sales at a division one college athletic program
Examine the pros and cons of hiring an inside sales staff, or outsourcing sales to a prominent sport sales company, to manage ticket sales at a Division I college athletic department.
Hiring an inside sales staff offers the advantage of having dedicated personnel who can provide personalized service and have a deep understanding of the college athletic program. Outsourcing to a prominent sports sales company provides expertise, established processes, and potentially wider reach, but may lack the same level of program-specific knowledge and personalization.
Hiring an inside sales staff:
Pros:
1. Personalized service: An inside sales staff can develop relationships with customers, provide personalized assistance, and tailor sales strategies to the specific needs and preferences of the college athletic program.
2. In-depth program knowledge: Internal staff members have a deep understanding of the college athletic program, its values, and its fan base, allowing them to effectively promote ticket sales and engage with fans on a more personal level.
Cons:
1. Resource-intensive: Hiring and training a dedicated inside sales team can be time-consuming and costly, requiring investment in recruitment, salaries, benefits, and ongoing training.
2. Limited expertise: The inside sales staff may not have the same level of expertise and specialized sales techniques as an outsourced sports sales company, potentially impacting sales effectiveness and revenue generation.
Outsourcing to a sports sales company:
Pros:
1. Established expertise: A prominent sports sales company brings specialized knowledge, experience, and proven sales strategies to the table, potentially leading to improved sales performance and revenue generation.
2. Wider reach: Outsourced sales companies often have established networks and resources to reach a broader audience, increasing the potential for ticket sales and fan engagement.
Cons:
1. Lack of program-specific knowledge: An outsourced sales company may not possess the same in-depth knowledge and understanding of the college athletic program, resulting in a potentially less personalized sales approach.
2. Potential loss of control: Outsourcing sales means relinquishing some control over the sales process and customer interactions, which may lead to concerns about brand representation and customer satisfaction.
Ultimately, the decision to hire an inside sales staff or outsource to a sports sales company depends on factors such as budget, available resources, desired level of personalization, and the importance of specialized sales expertise in relation to the specific goals and values of the college athletic program.
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Organizational Decline occurs in a series of observable and
distinct stages, Explain the basic features of each stage.
Organizational decline is the gradual decline in an organization's performance and effectiveness. Basic features are Inertia, Crisis, Blame Game, Denial and Avoidance, Internal Dysfunction, External Pressure, and Irreversibility.
Organizational decline refers to a progressive deterioration in an organization's performance and effectiveness over time. It typically occurs in a series of observable and distinct stages, each characterized by specific features.
The basic features of each stage of organizational decline are as follows:
1. Inertia: This initial stage is marked by complacency and resistance to change within the organization. There is a lack of awareness or acknowledgment of emerging challenges, and the organization continues with its existing practices despite signs of trouble.
2. Crisis: In this stage, the organization experiences a significant event or series of events that disrupt its operations and threaten its survival. It could be a financial crisis, loss of key customers, or a major public scandal. The crisis creates a sense of urgency and the need for immediate action.
3. Blame Game: During this stage, individuals and groups within the organization engage in blame-shifting and finger-pointing. There is a lack of accountability, as people try to protect their own interests and deflect responsibility for the crisis.
4. Denial and Avoidance: In this stage, there is a tendency to deny the severity of the crisis or to avoid addressing it directly. Leaders may downplay the situation, ignore warning signs, or engage in wishful thinking, leading to a further decline in organizational effectiveness.
5. Internal Dysfunction: As decline continues, the organization experiences internal dysfunction. There is a breakdown in communication, collaboration, and decision-making processes. Trust and morale decline, leading to decreased employee engagement and productivity.
6. External Pressure: At this stage, external stakeholders such as customers, investors, and regulatory bodies start to exert pressure on the organization. It could manifest as declining market share, increased customer complaints, or regulatory scrutiny.
7. Irreversibility: In the final stage, the decline becomes irreversible, and the organization's viability and sustainability are severely compromised. Attempts at recovery or turnaround may prove futile, and the organization may face dissolution, bankruptcy, or acquisition.
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To eliminate repetition and reduce organizational overlaps, it is best to use: a supply chain modelling b Special Economic Zones. c reverse logistics. d JIT management.
To eliminate repetition and reduce organizational overlaps, a combination of supply chain modeling and just-in-time (JIT) management is recommended.
Supply chain modeling involves analyzing and optimizing the flow of goods and information across the supply chain network. By using advanced analytical techniques and modeling tools, organizations can gain insights into their supply chain operations, identify bottlenecks, and streamline processes to eliminate unnecessary duplication and overlaps. Supply chain modeling enables organizations to visualize and understand the entire supply chain ecosystem, making it easier to identify areas where improvements can be made.
Just-in-time (JIT) management is a strategy aimed at reducing inventory levels and minimizing waste. By adopting JIT principles, organizations aim to deliver goods and materials to the right place at the right time, eliminating the need for excessive inventory storage and reducing the chances of repetition and overlaps. JIT management focuses on maintaining close coordination with suppliers and customers, ensuring timely delivery and response to demand fluctuations. This approach helps organizations optimize their production and distribution processes, reducing waste and improving overall efficiency.
By combining supply chain modeling and JIT management, organizations can achieve better coordination and alignment across their supply chain. Supply chain modeling provides a comprehensive understanding of the entire ecosystem, allowing organizations to identify areas of overlap and repetition. JIT management complements this by reducing inventory levels and ensuring timely delivery, minimizing the chances of duplication and repetition within the supply chain. Together, these approaches help eliminate inefficiencies, improve overall productivity, and reduce organizational overlaps.
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PROGRAM CODE: MAD 115-MAD2205SA COURSE CODE: MAD 115 COURSE TITLE: Project Management ASSIGNMENT-2 Name of topic: Project Charter Purpose of this Assignment: In this assignment you will create your dream home's project charter. A project charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. Note: This is an individual assignment. "Dream Home Charter" Background One of the objectives of this assignment is for you demonstrate appropriate information content that would be provided in a project charter. (Note: You are not expected to be an expert in house design, and you will not be assessed on the accuracy of the information provided - only on the appropriateness of the information and how the information is presented.) Dream Home Details .
The assignment requires creating a project charter for a dream home. showcasing the understanding of key components and information required in a project charter
The purpose of the assignment is to demonstrate the ability to develop a project charter, which is a document that authorizes the existence of a project and provides the project manager with the authority to allocate organizational resources. The assignment focuses on showcasing appropriate information content in the project charter, rather than expertise in house design. The accuracy of the information provided is not the primary assessment criterion, but rather the appropriateness of the information and how it is presented.
The assignment involves developing a project charter for a dream home, showcasing the understanding of key components and information required in a project charter. The emphasis is on presenting the information in a suitable manner, aligning with the purpose and requirements of a project charter.
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Make a brief paragraph explaining a story in which there is
TANSTAAFL and make sure to make it clear that what may have
appeared free of any cost, actually is not.
In a story illustrating TANSTAAFL (There Ain't No Such Thing As A Free Lunch), it becomes evident that something initially perceived as cost-free comes with hidden costs.
Once upon a time, there was a small town called Blissville, known for its picturesque beauty and vibrant community. The town's park was a popular gathering spot for residents and visitors alike. One day, the local government decided to introduce a new amenity to the park: free Wi-Fi for everyone. At first, the townspeople rejoiced, appreciating the apparent generosity and convenience of this service without any upfront cost.
However, as time went on, the hidden costs of the seemingly free Wi-Fi started to reveal themselves. The town's taxes increased to cover the expenses of installing and maintaining the Wi-Fi infrastructure. The government had to cut funding for other essential services like road maintenance and education to accommodate this new expenditure. In addition, the once serene park transformed into a bustling hub, overcrowded with people who came solely to use the free Wi-Fi, diminishing the peaceful atmosphere.
Blissville's residents soon realized that the free Wi-Fi came with a price, both financially and in terms of the overall quality of life in their town. The story serves as a reminder that even when something appears to be free, there are often underlying costs or trade-offs involved, emphasizing the concept of TANSTAAFL.
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The following events occurred soon after Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services.
a. On September 1, Pat contributed $10,000 for 1,000 shares of OCC.
b. On September 8, OCC borrowed $24,000 from a bank, promising to repay the bank in two years.
c. On September 10, OCC wrote a check for $29,000 to acquire computer equipment.
d. On September 15 , OCC recelved $2,800 of supplies purchased on account.
e. On September 16, OCC paid $1,450 for September rent.
f. Through September 22, OCC provided its customers $12,850 of services, of which OCC collected $7,200 in cash.
g. On September 28,0CC paid $460 for Internet and phone service this month.
h. On September 29. OCC paid wages of $5,600 for the month. 1. On September 30 , OCC submitted its electricity meter reading online and determined that the total charges for the month will be $380. This amount will be paid on October 14 through a preauthorized online payment.
2. Prepare journal entries to record the September events described above. (If no "No Journal Entry Required" in the first account field.)
In September, the journal entries for Ona Cloud Corporation (OCC) included contributions of $10,000 in cash, borrowing $24,000 from a bank, acquiring computer equipment for $29,000, receiving supplies on account for $2,800, paying rent of $1,450, providing services worth $12,850 (collecting $7,200 in cash), paying $460 for internet and phone service, and paying wages of $5,600.
Journal Entries for September Events:
a. September 1:
Cash 10,000
Common Stock (1,000 shares) 10,000
b. September 8:
Cash 24,000
Notes Payable 24,000
c. September 10:
Equipment 29,000
Cash 29,000
d. September 15:
Supplies 2,800
Accounts Payable 2,800
e. September 16:
Rent Expense 1,450
Cash 1,450
f. September 22:
Accounts Receivable 12,850
Service Revenue 12,850
(To record services provided)
Cash 7,200
Accounts Receivable 7,200
(To record cash collected)
g. September 28:
Internet and Phone Expense 460
Cash 460
h. September 29:
Wage Expense 5,600
Cash 5,600
i. September 30:
Utilities Expense 380
Accrued Utilities Payable 380
(To record estimated utility expense)
No journal entry is required for the preauthorized online payment of utility charges as it will be recorded in October when the payment is actually made.
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