Answer:Please see answers in explanation column
Explanation:
1A)To record amount payable for purchase of goods
Date Account Title Debit Credit
July 1 Purchase $60,000
Accounts Payable $60,000
Freight in $1,200
Cash $1,200
B)To record amount on damaged goods
Date Account Title Debit Credit
July 3 Accounts Payable $6,000
Return of Purchase $6,000
C)Journal to record payment of goods
Date Account Title Debit Credit
July 10 Accounts Payable $54,000
Purchase Discount $1,080
Cash $52,920
Calculations
Accounts payable Purchased Price - price of returned goods = 60000-6000 = $54,000
Discount on Purchases if paid within 10 days = 2% x $54,000 = $1,080
Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural challenges of doing global business. Which of the following suggestions acknowledge different values and respect the need for moral initiative?
a. Refuse alternatives,
b. Avoid reflex judgments.
c. Don't rationalize shady decisions.
d. Embrace transparency.
Answer:
Option C
Explanation:
In simple words, Seeking options, rejecting business where it contradicts your core beliefs, and preventing the rationalisation of shady decisions can help you negotiate sometimes vague cross cultural ethics comfortably. It is often prudent to explore alternate routes.
For instance, rather than caving in to federal payments, provide non financial public sector incentives, technological knowledge or extra customer support.
The economist Milton Friedman argued that
Answer:
APEX: Unemployment is natural and acceptable in an economy.
Explanation:
The economist Milton Friedman made several arguments throughout his career, but some of his notable viewpoints include:
Advocacy for free marketsMonetarism and the role of the Federal ReserveCritique of government interventionNegative income tax and welfare reformSchool choice and educational reformIt is important to note that these are only some of the viewpoints associated with Milton Friedman, and they represent a simplified overview of his ideas.
Friedman's economic theories and policy recommendations have been subjects of debate, with both proponents and critics discussing their implications and effectiveness.
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Normally, an adult at rest should have respirations that:___________.
Answer:
12 to 20 breaths per minute
Explanation:
According to most medical practitioners, an adult (someone from the ages of 18 upwards) at rest should normally have between 12 to 20 breaths per minute.
Note, the respirations refer to the number of breaths (in and out) a person takes per minute (60 seconds). Hence, if the respirations are lower than 12 or over 25 breaths per minute, it is considered abnormal.
Which of the following is a part of applying for a loan? A. Verifying your income B. Negotiating an interest rate C. Signing up for a credit card D. Completing a means exam
Answer:
A & B
Explanation:
Your income is a asset to value the estimations of your loan application. The loan length, the repayments and negotiate a fixed or flexible interest rate among the loan, depending on the type.
Answer:
Verifying your income
Explanation:
You will already have to have a credit card and to talk about interest rates, you would have to be approved first.
Which of the following statements is true of personnel management during the 1930s and 1940s?a. It was concerned almost exclusively with hiring first-line employees. b. It was concerned solely with structuring individual jobs to maximize efficiency and productivity. c. It was considered a function of line managers. d. It was seen as a critical function in most business organizations.
Answer: It was concerned almost exclusively with hiring first-line employees.
Explanation:
Personnel management has to do with the planning, integration, compensation, and maintainance of employees to achieve Individual or organizational goals.
Recently, personnel management is now called human resources management. Before then, personnel management during the 1930s and 1940s was concerned almost exclusively with hiring first-line employees who worked on issues relating to the company's future and achieving the company's goals
Why is a manufacturer's sales branch considered part of the wholesaling industry?
A. Because it is located at the producer's factory
B. Because it is a limited-function wholesaler
C. Because it does the work of a wholesaler
D. Because it is a type of warehouse club
Answer:
C
Explanation:
i believe the answer is C
The reason that the manufacturer's sales branch is considered part of the wholesaling industry is that it does the work of a wholesaler. Hence, Option C is correct.
Who is a wholesaler?An intermediary merchant who sells primarily to retailers, other merchants, or industrial, institutional, and commercial users, usually for resale or business use.
Retail and wholesale are two crucial steps in the distribution process in the supply chain sector. Any product that a business produces is first sold in bulk to the wholesaler, who then sells it to the retailer, who then sells it to the final consumers.
Hence, The reason that the manufacturer's sales branch is considered part of the wholesaling industry is that it does the work of a wholesaler. Option C is correct.
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The income statement for the Kingbird, Inc. for the month ended July 31 shows Service Revenue $19,520, Salaries and Wages Expense $8,620, Maintenance and Repairs Expense $2,920, and Income Tax Expense $1,240. The statement of retained earnings shows an opening balance for Retained Earnings of $24,290 and Dividends $1,600.
The income statement for the Kingbird, Inc. for th
(a) Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit Credit
July 31
Entry field with correct answerService Revenue
Entry field with correct answer19520
Entry field with correct answer
Entry field with correct answerIncome Summary
Entry field with correct answer
Entry field with correct answer19520
(To close revenue account)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer12780
Entry field with correct answer
Entry field with correct answerMaintenance and Repairs Expense
Entry field with correct answer
Entry field with correct answer2920
Entry field with correct answerIncome Tax Expense
Entry field with correct answer
Entry field with correct answer1240
Entry field with correct answerSalaries and Wages Expense
Entry field with correct answer
Entry field with correct answer8620
(To close expense accounts)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer6740
Entry field with correct answer
Entry field with correct answerRetained Earnings
Entry field with correct answer
Entry field with correct answer6740
(To close net income/(loss) to retained earnings)
July 31
Entry field with correct answerRetained Earnings
Entry field with correct answer1600
Entry field with correct answer
Entry field with correct answerDividends
Entry field with correct answer
Entry field with correct answer1600
(To close dividends to retained earnings)
(b) What is the ending balance in Retained Earnings?
Ending balance in Retained Earnings $
Answer:
The solution to the question is shown on the first, second, third , fourth uploaded image
Explanation:
what educational background or training rose lamont need?
Answer:
needed a master's in my field to teach at a California community college, so I have an M.S. in Applied Economics.
Explanation:
exactly what the link to the article said
Marketing objectives should be all of the following EXCEPT:________.
a. realistic
b. measurable
c. time specific
d. abstract
e. comparable against a benchmark
f. Marketing objectives should be all of these.
Answer:
d. abstract
Explanation:
Marketing objectives are the goals that a marketing team hope to achieve.
The Marketing objectives should be realistic, it should be an objective that should be achievable given the resources, circumstances of the product, marketing team and environment.
Marketing objectives should be measurable. There should b a yardstick against which objectives can be measured. e.g. a marketing team can have an objective to sell 50 of the company's product in a day
Time specific : there should be a time by which the marketing team hopes to achieve their objectives e.g. the team plans to sell the a company's product in a week.
If Marketing objectives is abstract, there would be no guideline for the marketing team to follow and the team wont achieve their objectives. Marketing objectives has to be clear, precise and concise.
Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pays $175 a month for utilities. Mr. Morgan owns a rental property for which he receives $680 per month.
Which is a liability?
the yearly salary
the commission
the mortgage
the rental property
Answer:
the mortgage.
Explanation:
If he has mortgage of $910 a month Mr. Morgan liability is mortgage.
What is mortgage?Mortgage can be defined as a loan which a person receive to buy a house with an agreement to pay within a stipulated period of time.
The mortgage of the amount of $910 per month is a liability for Mr. Morgan because it is debt and the property or home he purchase is a collateral for the amount borrowed in a situation where he fail to payback the mortgage.
Inconclusion if he has mortgage of $910 a month Mr. Morgan liability is mortgage.
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Acme Storage has a market capitalization of $100 million and debt outstanding of $40 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest rate of 7.5% on its debt and has a corporate tax rate of 35%. show calculations
a. If Acme's free cash flow is expected to be $7 million next year and is expected to grow at a rate of 3% per year, what is Acme's WACC?
b. What is the value of Acme's interest tax shield?
Answer:
1. The Value of a levered firm can be calculated using WACC which means that if you have the Value, you can compute WACC.
The formula is;
Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)
Value of leveraged firm = Value of Equity + Value of Debt
= 100 + 40
= $140 million
Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)
140 = 7 ( WACC - 3%)
140 * WACC - 4.2 = 7
WACC = 0.08
= 8%
2. Interest tax shield = Value of leveraged firm - Value of unleveraged firm
Value of unleveraged Firm = Free Cash Flow/ WACC before tax - Growth rate
WACC before tax = WACC + (Debt/(Debt + Equity))*Cost of Debt*(Tax Rate)
= 8% + (40/ 140) * 7.5%(35%)
= 8.75%
Value of unleveraged Firm = Free Cash Flow/ WACC before tax - Growth rate
= 7 /( 8.75% - 3%)
= $121.74 million
= $122 million
Interest tax shield = Value of leveraged firm - Value of unleveraged firm
= 140 - 122
= $18 million
Suppose that you have a choice of working during the summer or taking summer classes. Summer tuition and books are $2,000. If you work, you could make $10,000. Your rent is $4,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is therefore equal to:_________.
a. $14,000
b. $12,000
c. $2,000
d. $10,000
Classify each resource used in production as land, labor, capital, or entrepeneurs.
1. Aunt Sandy's Jammin' Jellies (the business)
2. Anika, a server at Sonic Drive-In
3. Your favorite bartender
A. Land
B. Labor
C. Capital
D. Entrepreneurs
Answer:
1. Aunt Sandy's Jammin' Jellies (the business) - Entrepreneurs
Entrepreneurship refers to the process of bringing together the various other factors of production to be able to produce goods and services. Aunt Sandy's as a business is an entrepreneur as it brought together factors of production to make Jellies.
2. Anika, a server at Sonic Drive-In - Labor
Labor refers to the actual people who contribute to the business. Anika is a server at the Drive- In and so works there contributing to the success of the business so she is Labor.
3. Your favorite bartender - Labor
Like Anika above, your favorite bartender is also a person contributing to the success of the bar so is considered labor.
Aunty Sandy's Jammin Jellies is an Entrepreneurs
The entrepreneurship is the factor that brings the other factors of production (land, labor and capital) together.Anika, who is server at Sonic Drive-in is an example of Labor.
The Labor is the factor that helps tp produce the goods and services.The favorite bartender is an example of Labor
The Labor is the factor that helps or contribues to the production of goods and services.Read more about factor of production
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Below are the account balances for Cowboy Law Firm at the end of December.Accounts BalancesCash $4,300Salaries expense 1,650Accounts payable 2,300Retained earnings 4,250Utilities expense 1,000Supplies 12,700Service revenue 8,200Common stock 4,900Required:Use only the appropriate accounts to prepare an income statement.COWBOY LAW FIRMIncome StatementExpenses: Total expenses Net income
Answer:
$5,550
Explanation:
Preparation of an Income statement
REVENUE :
Service revenue $8,200
Less EXPENSES:
Salaries expense $1,650
Utilities expense $1,000
Total Expenses($2,650)
($1,650+$1,000)
Net income $5,550
($8,200-$2,650)
Therefore the Net income amount for the income statement will be $5,550
Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the net income of the investor under each of the following accounting methods?
Fair Value Method Equity Method
a. No Effect Decrease
b. Increase Decrease
c. No Effect No Effect
d. Increase No Effect
Answer:
d. Increase - No Effect
Explanation:
Under the fair value method, cash dividends are considered revenue. E.g. a $10,000 dividend will increase net income by $10,000 - taxes.
Under the equity method, cash dividends are not considered revenue (have no effect on income statement) and instead they decrease the assert account. Investment revenue takes place when the company reports net income for the year.
Woodwick Company issues 9%, five-year bonds, on December 31, 2014, with a par value of $96,000 and semi-annual interest payments.Semi-annual Period-End Unmortized Premium Carrying value 0) 12/31/2816 $8,031 $104,0311) 6/3e/2817 7,228 183,2282) 12/31/2817 6,425 182,425 Use the above straight-line bond amortization table and prepare journal entries for the following A) The issuance of bonds on December 31, 2016.B) The first interest payment on June 30, 2017.C) The second interest payment on December 31, 2017.
Answer:
A) The issuance of bonds on December 31, 2016.
Dr Cash 104,031
Cr Bonds payable 96,000
Cr Premium on bonds payable 8,031
B) The first interest payment on June 30, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
C) The second interest payment on December 31, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
G. Gram invested $43,000 cash in the company in exchange for its common stock.
May:
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,910 of office equipment on credit.
5 The company paid $740 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,900 cash.
12 The company provided $2,600 of consulting services for a client on credit.
15 The company paid $770 cash for an assistant’s salary for the first half of this month.
20 The company received $2,600 cash payment for the services provided on May 12.
22 The company provided $3,900 of consulting services on credit.
25 The company received $3,900 cash payment for the services provided on May 22.
26 The company paid $1,910 cash for the office equipment purchased on May 3.
27 The company purchased $75 of office equipment on credit.
28 The company paid $770 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $250 cash for this month’s utilities.
31 The company paid $2,000 cash in dividends to the owner (sole shareholder).
Required:
Prepare income statement for May.
Answer:
Explanation:
Income statement for the month ended May 31
Revenue
Consulting services
(5,900+2,600+3,900) 12,400
Expenses
Rent 2,200
Cleaning 740
Salary 770
Salary 770
Telephone 300
Utilities 250
Total expenses 5,030
Net Income 7,370
The office equipment are assets which are meant to be recorded in the statement of financial position. However , a proportionate depreciation are supposed to be charged to the income statement as expenses , but the detailed information concerning that was not given.
The dividends payout shout be recorded in the statement of retained earning for the month.
Kendra decided to leave her job in the city and move to the country where she plans to start her own business selling homemade preserves, soaps, lotions, and candles. Kendra’s business would be:___________.A. a sole proprietorship.B. a partnership.C. a private investment.D. employee owned.E. owned by stockholders.
Answer:
A
Explanation:
A sole proprietorship is a type of business that is owned by one person
Characteristics
it is owned by one person the business has unlimited liabilitythe business has limited access to capitalthe business usually lacks continuity. this type of business usually ceases to exist when the owner diesthe business is usually not separated from the ownerTrade and cash discounts; the gross method and the net method compared [LO7-3].Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2016. The units have a list price of $550 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the gross method of accounting for cash discounts is used. Transaction listA. Record the sale of 200 units with a list price of $550, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the gross method. B. Record the cash collection on November 26.2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 26, 2016, assuming that the gross method of accounting for cash discounts is used.
Answer and Explanation:
The Journal entries are shown below:-
1. Within discount period
Nov 17
Accounts receivable Dr, $82,500
To Sales revenue $82,500 (200 × $550 × 75%)
(Being sales revenue is recorded)
Nov 26
Cash Dr, $80,850
Sales discount Dr, $1,650 ($82,500 × 2%)
To Accounts receivable $82,500
(Being cash collection is recorded)
2. Beyond discount period
Nov 17
Accounts receivable Dr, $82,500
To Sales revenue $82,500 (200 × $550 × 75%)
(Being sales revenue is recorded)
Dec 15
Cash Dr, $82,500
To accounts receivable $82,500
(Being cash collection is recorded)
Determine the following:_______.a. The stockholders' equity of a corporation that has assets of $435,000 and liabilities of $326,000.b. The assets of a corporation that has liabilities of $250,000, common stock of $100,000, and retained earnings of $85,000.
Answer:
a. $109,000
b. $435,000
Explanation:
a. The calculation of Stockholder equity is shown below:-
Stockholder equity = Assets - Liabilities
= $435,000 - $326,000
= $109,000
b. The calculation of assets is shown below:-
Assets = Liabilities + Common stock + Retained earnings
= $250,000 + $100,000 + $85,000
= $435,000
Therefore for computing thr stockholder equity and assets we simply applied the above formula.
The Mugger sells three types of mugs, flowers, dogs, and sports. The following information is available:________.
Total Sales Volume Selling Price Variable cost per unit Total fixed costs Flowers 25,000 $20 10 Dogs 100,000 $25 20 Sports 50,000 $10 6 $500,000
REQUIRED (show all supporting calculations):________.
1. What is the breakeven point for The Mugger?
2. Would you recommend promoting the change in product mix to 4 to 2 to 1 of flower mugs, dog mugs, and sports mugs? Why?
3. An executive summary is required.
Answer:
Flowers Dogs Sports Total
sales volume 25,000 100,000 50,000
selling price $20 $25 $10
variable cost $10 $20 $6
total fixed costs $500,000
contribution margin $10 $5 $4
weighted contribution margin = [(25,000 x $10) + (100,000 x $5) + (50,000 x $4)] / 175,000 = ($250,000 + $500,000 + $200,000) / 175,000 = $5.428571
break even point in units = $500,000 / $5.428571 = 92,105.26 ≈ 92,106 units
flowers: (25/175) x 92,106 = 13,158 units
dogs: (100/175) x 92,106 = 52,632 units
sports: (50/175) x 92,106 = 26,316 units
total = 92,106 units
break even point in $
flowers: 13,158 units x $20 = $263,160
dogs: 52,632 units x $25 = $1,315,800
sports: 26,316 units x $10 = $263,160
total = $1,842,120
currently total contribution margin is:
flowers: 25,000 units x $10 = $250,000
dogs: 100,000 units x $5 = $500,000
sports: 50,000 units x $4 = $200,000
total = $950,000
operating profit = $950,000 - $500,000 = $450,000
if the change is successful, then total contribution margin would be:
flowers: 100,000 units x $10 = $1,000,000
dogs: 50,000 units x $5 = $250,000
sports: 25,000 units x $4 = $100,000
total = $1,350,000
new operating profit = $1,350,000 - $500,000 = $850,000
So yes, I would recommend promoting the change in product mix to increase the sales of flower mugs in order to increase operating profit.
Including the change control system within the ________ is a key to a successful project.A. Work Breakdown Structure.B. Project Baseline.C. Risk Management Plan.D. Work Breakdown Structure and Proect Baseline.
Answer:
The correct answer is C) Risk Management Plan
Explanation:
Change Control System is a key component of the Risk Management Framework/Strategy.
Many times, a project will change midway thus altering significantly the expected results, costs and even purpose of the project. This usually poses a lot of challenges to Project Managers.
Factors or sources of changes to a project include but are not limited to:
Project Owner;Extraneous risks;Customer to Project Owner etc.Cheers!
When the changes are implemented in a process or a system they are ensured by a change control system.
It follows, surveys and accepts the changes before the product or the process are influenced by the change.
The correct answer is:
Option C) Risk Management Plan
This can be explained as:
Risk management is mainly controlled by the change control system.Many times, a project get altered thus concerning the anticipated results, expenses and even direction of the project. This usually feigns a lot of difficulties to managers.A change in the project affects the owner, risks, and the customers.Therefore, risk management is a key to changing the control system.
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Mitchell Inc. issued 40, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each July 1, and December 31, and were issued to yield 7%. Debt issuance costs were $800. The bonds mature December 31, 2022, and the company uses the effective interest method to amortize bond discounts and debt issuance costs.Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization schedule for the full bond term. c. Prepare journal entries on the following dates. 1. January 1, 2020, bond issuance. 2. June 30, 2020, interest payment. 3. December 31, 2020, interest payment.
Answer:
a. Determine the selling price of the bonds.
we can use the approximate yield to maturity formula to determine the price of the bonds:
0.035 = {30 + [(1,000 - MV) / 5]} / [(1,000 + MV) / 2]
0.035 x [(1,000 + MV) / 2] = 30 + [(1,000 - MV) / 5]
0.035 x (500 + 0.5MV) = 30 + 200 - 0.2MV
17.5 + 0.0175MV = 230 - 0.2MV
0.2175MV = 212.5
MV = 212.5 / 0.2175 = $977
b. Prepare an amortization schedule for the full bond term.
I used an excel spreadsheet because there is not enough room here
c. Prepare journal entries on the following dates.
1. January 1, 2020, bond issuance.
Dr Cash 38,280
Dr Credit issuance cost 800
Dr Discount on bonds payable 920
Cr Bonds payable 40,000
2. June 30, 2020, interest payment.
Dr Interest expense 1,368
Dr Debt issue expense 146
Cr Cash 1,200
Cr Discount on bonds payable 168
Cr Credit issuance cost 146
[($40,000 - $920) x 3.5%] - $1,200 = $168
($168 / $920) x $800 = $146
3. December 31, 2020, interest payment.
Dr Interest expense 1,374
Dr Debt issue expense 151
Cr Cash 1,200
Cr Discount on bonds payable 174
Cr Credit issuance cost 151
[($40,000 - $752) x 3.5%] - $1,200 = $174
($174 / $920) x $800 = $151
Evaluate the internal controls in each situation as strong or weak.Cash receipts: Samson Auto Parts has______internal controls. There is______.a. a good separation of duties.b. a good system of documenting transactions.c. not a good separation of duties.d. not a good system of documenting transactions.The following situations describe two cash payment situations and two cash receipt situations. In each pair, one set of internal controls is better than the other. Requirement: Evaluate the internal controls in each situation as strong or weak.Cash receipts: Samson Auto Parts has_____internal controls. There is:____.A. Different people receive cash, record the cash, and deposit the cash.B. The accountant should maintain detailed records of the accounts receivable that are collected C. The cash collected is properly summarized and recorded by the accountant. D. The same person receives cash, records the cash, and deposits the cash.A) At Samson Carpet Mill, cash received by mail goes straight to the bookkeeper, who debits Cash and credits Accounts Receivable to record the collections from customers. The bookkeeper then deposits the cash in the bank. B) Cash received by mail at Liberty Dermatology Clinic goes to the mailroom, where a mail clerk opens envelopes and totals the cash receipts for the day. The mail clerk forwards customer checks to the cashier for deposit in the bank and forwards the remittance advices to the accounting department for posting credits to customer accounts. Cash payments: A) Scott Construction policy calls for construction supervisors to request the equipment needed for their jobs. The home office then purchases the equipment and has it shipped to the construction site. B) Remington Home Construction's policy calls for project supervisors to purchilse the equipment needed for jobs. The supervisors then submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment quickly and keep
Answer:
1. Samson Auto Parts has weak internal controls. - c. not a good separation of duties.
Samson Auto has weak internal controls because the same person being the bookkeeper, receives cash, records it and deposits it. This gives the bookkeeper the opportunity to commit fraud.
2. Liberty Dermatology Clinic has strong internal controls. - There is a good separation of duties.
There are various people handling the cash so Liberty has stronger controls. The mail clerk receives the money, the cashier deposits it and the accounting department records it. There is therefore less chance of fraud.
3. Scott Construction has strong internal controls. - Good separation of duties.
Construction supervisors first request equipment they need, and the home office does the purchasing and shipping. This separation of duties will help reduce fraud as the supervisors will not make fraudulent claims that will be untraceable.
4. Remington Home Construction has weak internal controls. Poor separation of duties.
At Remington, the supervisors may be able to commit fraud due to the lack of separation of their duties. They can purchase equipment needed and then get reimbursed when they do. This opens the door for fraudulent claims on the part of the supervisors so Remington does indeed have weak controls.
Maria Gomez owns and manages a consulting firm called Accel, which began operations on December 1. She asks us to assist her with some financial reporting questions
Question Completion:
Financial data:
Unearned revenue 3,600
Notes payable 2,800
Accounts payable 4,800
Advertising expense 2,800
Rent expense 4,000
Salaries expense 6,000
Utility expense 2,400
Consulting revenue 34,000
Rental revenue 7,000
Accounts receivable 10,000
Cash 12,000
Equipment 10,200
Notes receivable 5,000
Prepaid insurance 2,000
Supplies 3,000
Common Stock 9,200
Dividends 4,000
Prepare Income Statement, Statement of Retained Earnings, and Balance Sheet as of December 31.
Answer:
Accel Consulting Firm (owned and managed by Maria Gomez)
a. Income Statement for the month ended December 31:
Consulting revenue $34,000
Rental revenue 7,000
Total Revenue $41,000
Less expenses:
Advertising expense 2,800
Rent expense 4,000
Salaries expense 6,000
Utility expense 2,400 15,200
Net Income $25,800
b. Statement of Retained Earnings for the month ended December 31:
Net Income $25,800
Dividends 4,000
Retained earnings, Dec. 31 $21,800
c. Balance Sheet as of December 31:
Assets:
Cash $12,000
Accounts receivable 10,000
Notes receivable 5,000
Prepaid insurance 2,000
Supplies 3,000
Equipment 10,200
Total Assets $42,200
Liabilities:
Unearned revenue $3,600
Notes payable 2,800
Accounts payable 4,800
Total Liabilities $11,200
Common Stock 9,200
Retained earnings 21,800
Total liabilities + Equity $42,200
Explanation:
Accel's income statement is a summary of the temporary accounts, which are not carried forward in the next accounting period. They are used to calculate the profit performance of the consulting firm. They include the revenues and the expenses incurred for generating the revenue.
Accel's statement of retained earnings shows the difference between the net income generated over the years for a business that has been in operation for years and the payouts from the net income in form of dividends to stockholders. For Maria Gomez's consulting business, the retained earnings statement shows what is remaining after paying dividend for the month of December to Gomez.
Accel's balance sheet is the final financial statement that is needed to be prepared to show the financial position of the firm. It shows what the firm owns as assets and the value that the firm owes other creditors for services not paid for or not yet rendered and the equity value for the stockholder, Maria.
Which of the following describes a likely outcome when teams effectively plan for data collection?a. The team may not collect enough datab. Team members may collect data using different operational definitionsc. The data may not be validd. Process participants are interested in the results of the data collection
Answer:
b. Team members may collect data using different operational definitions
Explanation:
when teams effectively plan for data collection, they plan to collect data collect efficiently in order to achieve the aim of the data collection
An operational definition is how a researcher decides to measure variables.
when teams effectively plan for data collection, they can collect data using different operational definitions to be able to conduct their research more robustly
Outcomes of teams not planning efficiently for data collection
a. The team may not collect enough data
b. The data may not be valid
A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. what mode of end?
Answer:
Celebrity endorsement.
Explanation:
The complete question is...
A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. what mode of end? What mode of endorsement are these clothing companies trying to achieve?
Celebrity endorsement uses a celebrity's fame or social status to promote a product, brand or service. It is mostly associated with the fashion and beauty brands, and the goal is that the positive image of the celebrity be reflected onto the product or the brand. Celebrity endorsement has been used by some brands to promote their businesses into a multi-billion dollar company, and is also very lucrative for the celebrity, whose contract deals can run into hundreds of millions of dollars.
If IBM manufactures a computer in the United States and sells it to a French business firm in Paris, it will cause an increase in:_________a. Net exports.b. Imports.c. Both investment and net exports.d. Government expenditures.e. Consumption.
Answer:
B
Explanation:
When goods produced in a country are sold to other countries, it is known as export.
When a country purchases a foreign produced good, it is known as import
the difference between export and import is known as net export.
Net export increases when export increases and decreases when import decreases.
As a result of the sale of the computer, US net export would increase and France's net export would decrease.
The company could issue preferred stock. The stock sells for RM105, however if new stock is issued, the company would receive only RM88. The par value of the stock is RM100 and the dividend is RM10. What is the cost of capital for the preferred stock to the company?
Answer: 11.36%
Explanation:
The Cost of capital is calculated as;
= (Dividend rate / Net Stock price) * 100
= (10 / 88) * 100
= 11.36%
Net Stock price is used as it shows a more accurate depiction of the cost of capital since it uses the actual amount that the company received.
Answer:
11.36%
Explanation:
Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of $125,000, a life of 8 years, a $5000 salvage value, an operating cost of $40 per day, and an annual maintenance cost of $2000. Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of $125 per dumpster per site and a daily charge of $20 per day per dumpster. An estimated 45 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is 12% per year, how many days per year must the equipment be required to justify its purchase?
Answer:
If the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.
Explanation:
alternative 1:
initial outlay = $125,000
useful life 8 years
depreciation per year = ($125,000 - $5,000) / 8 = $15,000
costs:
$40 per day
maintenance $2,000 per year
total annual costs = $40x + $2,000
alternative 2:
$125 x 45 sites = $5,625
$20x
total annual costs = $5,625 + $20x
how large does x need to be in order for alternative 1 to be better using a 12% discount rate
cash flows
year 0 = ($125,000)
year 1 = $40x + $2,000 - $5,625 - $20x = $20x - $3,625
year 2 = $20x - $3,625
year 3 = $20x - $3,625
year 4 = $20x - $3,625
year 5 = $20x - $3,625
year 6 = $20x - $3,625
year 7 = $20x - $3,625
year 8 = $20x - $3,625 + $5,000 = $20x + $1,375
I used the present value of an annuity formula, to determine the value of cash flow:
the PV annuity factor for 12% and 7 periods is 4.5638, so:
24,756.20 x 4.5638 = $112,982
$29,756.20 / (1.12⁸) = $12,018
total = $125,000
$20x - $3,625 = 24,756.20
$20x = $28,381.20
x = $28,381.20 / $20 = 1,419.06 days (including all 45 sites)
That means that if the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.