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Label each description with the appropriate term. Any label can be used more than once, but each description requires only one term. The reward a saver expects on loaned funds: The cost a borrower pays for loaned funds: The difference between the real interest rate and the nominal interest rate: The percentage of disposable income that is kept as personal savings: The term that indicates why most people need to be incentivized to save: The result of consumption exceeding income over a particular period:
Answer Bank
inflation rate
savings rate
interest rate
dissaving
time preferences
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Answer:
inflation rate - The difference between the real interest rate and the nominal. The term that indicates why most people need to be incentivized to save
Inflation rate is the general increase in the price of goods and services within an economy over time. The real interest rate is the nominal interest rate minus inflation rate. Inflation incentivizes people to save, because if they save, they can invest their money at an interest rate higher than inflation, otherwise, their money will end up losing value.
savings rate - The percentage of disposable income that is kept as personal savings
Savings rate is simply the percentage of income that is left for saving. If a person earns 1,000 and saves 200, the savings rate is 20%.
interest rate - The reward a saver expects on loaned funds
The interest rate is the price of borrowing. The loaner accepts to give temporary control of his or her money to another person, in exchange for an extra payment, the interest rate.
dissaving - The result of consumption exceeding income over a particular period
Dissaving occurs when people spend more than they earn. Dissaving can be very harmful not only for household economies, but also for the economy as a whole, because it does not allow investment to flourish, and could lead to actual destruction of wealth via overconsumption.
An inflation rate, savings rate, interest rate, dissaving and time preferences are all important terms in finance field.
What is an inflation rate?The inflation rate is the difference between the real interest rate and the nominal rate.
What is saving rate?The savings rate is the percentage of disposable income that is kept as personal savings.
What is an interest rate?An interest rate is the reward a saver expects on loaned funds
What is dissaving?A dissaving occurs as a result of consumption exceeding income over a particular period.
What is time preference?A time preference is a theory that indicates why most people need to be incentivized to save as its explain the time value of money.
In conclusion, the inflation rate, savings rate, interest rate, dissaving and time preferences are all important terms in finance field.
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Speedy Bikes could sell its bicycles to retailers either assembled or unassembled.
The cost of an unassembled bike is as follows:
Direct materials $150
Direct labor 70
Variable overhead (70% of direct labor) 49
Fixed overhead (30% of direct labor) 21
Manufacturing cost per unit $290
The unassembled bikes are sold to retailers at $450 each.
Speedy currently has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity can be used to assemble the bikes and sell them at $495 each. Assembling the bikes will increase direct materials by $5 per bike, and direct labor by $10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes.
Additional variable overhead will be incurred at the normal rates but there will be no additional fixed overhead as a result of assembling the bikes.
Required:
a. Prepare an incremental analysis for the sell-or-process-further decision.
b. Should Speedy sell or process further?
Why or why not?
Answers
Answer:
Speedy Bikes
a. Incremental Analysis for the sell-or-process-further decision:
Cost of an Cost an Difference
unassembled bike assembled bike
Alternative 1 Alternative 2 Increment
Sales price of unassembled bike $450 $495 $45
Manufacturing cost per unit $290 $312 (22)
Net operating income $160 $183 $23
b. Speedy should process the bikes further.
c. It will generate an incremental net operating income of $23 per bike.
Explanation:
a) Data and Calculations:
Cost of an Cost an
unassembled bike assembled bike
Direct materials $150 $155
Direct labor 70 80
Variable overhead (70% of direct labor) 49 56 ($80 * 70%)
Fixed overhead (30% of direct labor) 21 21
Manufacturing cost per unit $290 $312
Janet and James purchased their personal residence 15 years ago for $300,000. For the current year, they have an $80,000 first mortgage on their home, on which they paid $5,750 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $150,000. They paid interest on the home equity loan of $9,000 for the year.
Required:
Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year.
Answers
Answer: $5750 ; $6000
Explanation:
The amount of their deduction for interest paid on qualified residence acquisition debt will be the interest paid on the first mortgage of their home which is: = $5750
The amount of the deduction paid on qualified home equity debt will be calculated as:
= (100000/150000) × 9000
= $6000
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.
Year 1
a. Sold $1,352,600 of merchandise (that had cost $976,400) on credit, terms n/30.
b. Wrote off $20,100 of uncollectible accounts receivable.
c. Received $674,300 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable would be uncollectible.
Year 2
a. Sold $1,552,800 of merchandise (that had cost $1,325,200) on credit, terms n/30.
b. Wrote off $31,300 of uncollectible accounts receivable.
c. Received $1,282,200 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 2.80% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liang's year 1 and year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.)
Answers
Answer:
Liang Company
Journal Entries:
a. Debit Accounts receivable $1,352,600
Credit Sales revenue $1,352,600
To record the sale of goods on credit, terms n/30.
Debit Cost of goods sold $976,400
Credit Inventory $976,400
To record the cost of goods sold.
b. Debit Allowance for Uncollectible Accounts $20,100
Credit Accounts receivable $20,100
To write-off uncollectible accounts.
c. Debit Cash $674,300
Credit Accounts receivable $674,300
To record the receipt of cash on account.
d. Debit Bad Debts Expense $38,530
Credit Allowance for Uncollectible $38,530
To record bad debts expense and bring the ending balance of the Allowance for Uncollectible accounts to a credit balance of $18,430 (2.80% of accounts receivable ($658,200))
Year 2
a. Debit Accounts receivable $1,552,800
Credit Sales revenue $1,552,800
To record the sale of goods on credit, terms n/30.
Debit Cost $1,325,200
Credit Inventory $1,325,200
To record the cost of goods sold on account.
b. Debit Allowance for Uncollectible Accounts $31,300
Credit Accounts receivable $31,300
To write-off uncollectible accounts.
c. Debit Cash $1,282,200
Credit Accounts receivable $1,282,200
To record the receipt of payment on account.
d. Debit Bad Debts Expense $38,000
Credit Allowance for Uncollectible $38,000
To record bad debts expense and bring the ending balance of the Allowance for Uncollectible Accounts to a credit balance of $25,130 (2.80% of accounts receivable ($897,500))
Explanation:
Data and Analysis:
Year 1:
a. Accounts receivable $1,352,600 Sales revenue %1,352,600
on credit, terms n/30.
Cost of goods sold $976,400 Inventory $976,400
b. Allowance for Uncollectible Accounts $20,100 Accounts receivable $20,100
c. Cash $674,300 Accounts receivable $674,300
d. Bad Debts Expense $38,530 Allowance for Uncollectible $38,530 ending balance $18,430 (2.80% of accounts receivable ($658,200))
Year 2
a. Accounts receivable $1,552,800 Sales revenue $1,552,800
on credit, terms n/30.
Cost $1,325,200 Inventory $1,325,200
b. Allowance for Uncollectible Accounts $31,300 Accounts receivable $31,300
c.Cash $1,282,200 Accounts receivable $1,282,200
d. Bad Debts Expense $38,000 Allowance for Uncollectible $38,000
Ending balance $25,130 2.80% of accounts receivable ($897,500)
Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
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Question Completion:
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:
Inventory, by Per Unit Net Realizable
Product Category Quantity Cost Value
Tools:
Hammers 100 $5.00 $5.50
Saw 200 10.00 9.00
Screwdrivers 300 2.00 2.60
Paint products:
1-gallon cans 500 6.00 5.00
Paint brushes 100 4.00 4.50
Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
Answer:
Almaden Hardware Store1. The carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to
(a) individual products:
= $5,800
(b) product categories:
= $6,050
(c) total inventory:
= $6,080
2. Inventory write-down as a line item in the income statement, for each of the LCNRV applications for:
(a) individual products:
Debit Cost of goods sold $700
Credit Inventory $700
To record the inventory write down based on LCNRV.
(b) product categories:
Debit Cost of goods sold $450
Credit Inventory $450
To record the inventory write down based on LCNRV.
(c) total inventory:
Debit Cost of goods sold $420
Credit Inventory $420
To record the inventory write down based on LCNRV.
Explanation:
a) Data and Calculations:
Inventory, by Per Unit Net Realizable LCNRV Inventory
Product Category Quantity Cost Value Value
Tools:
Hammers 100 $5.00 $5.50 $5.00 $500
Saw 200 10.00 9.00 9.00 1,800
Screwdrivers 300 2.00 2.60 2.00 600
Paint products:
1-gallon cans 500 6.00 5.00 5.00 2,500
Paint brushes 100 4.00 4.50 4.00 400
Inventory amount (LCNRV rule applied to individual products) $5,800
Inventory amount (LCNRV rule applied to product categories)
Tools: Cost value = (100 * $5) + (200 * $10) + (300 * $2) = $3,100
NRV value = (100 * $5.50) + (200 * $9) + (300 * $2.60) = $3,130
LCNRV = $3,100 for tools
Paint products: Cost value = (500 * $6) + (100 * $4) = $3,400
NRV value = (500 * $5) + (100 * $4.50) = $2,950
LCNRV = $2,950 for paint products
Total LCNRV = $6,050 ($3,100 + $2,950)
Inventory amount (LCNRV rule applied to total inventory):
Cost value = (100 * $5) + (200 * $10) + (300 * $2) + (500 * $6) + (100 * $4)
= $6,500
NRV value = (100 * $5.50) + (200 * $9) + (300 * $2.60) + (500 * $5) + (100 * $4.50) = $6,080
Year-end Adjustments for each of the LCNRV applications in requirement 1:
(a) individual products:
Cost of Inventory = $6,500
LCNRV = 5,800
Inventory write down $700
(b) product categories:
Cost of Inventory = $6,500
LCNRV = 6,050
Inventory write down $450
(c) total inventory:
Cost of Inventory = $6,500
LCNRV = 6,080
Inventory write down $420
Why is real estate often a great investment?
A.
The initial investment is considerably lower than most other investments.
B.
Over time, houses can increase in value while also serving as a dwelling for the investor.
C.
It is a liquid investment that allows homeowners access to their cash immediately.
D.
Renting real estate takes all of the responsibility off of the investor.
Answers
The correct option is B). Over time, houses can increase in value while also serving as a dwelling for the investor.
What is Real estate investment?Real estate investing refers to the investment that involves the purchase, sale or rental of real estate for profit.
Real estate investment potentially offer more competitive returns as compared to the stocks and bonds.
Investment in real state is often profitable as it offers tax benefits, cash flow, appreciation, and passive income.
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Exercise 10-2 Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,700,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
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Answer:
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Explanation:
Record the entry for the first semiannual interest payment and the second semiannual interest payment.
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in the tax return later when cash is received. This results in a deferred tax liability because taxable income is _______ than financial income in the year of sale, and _______ than financial income in later years when collected. Multiple choice question. higher; lower higher; higher lower; lower lower; higher
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Answer:
lower; higher.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).
This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.
Jane Dough Pizza's manager is now getting detailed costs for offering delivery service and needs to properly categorize them as either fixed or variable costs.
Please indicate whether each of the following items is a fixed cost or a variable cost.
a. Boxes for pizzas being delivered
b. Mileage reimbursement for delivery drivers
c. Monthly salary of programmer in charge of e-commerce website
d. Cost of raw materials for pizzas that get delivered
e. Monthly building lease
Answers
Answer:
variable costs.
variable costs.
fixed cost
variable costs.
fixed cost
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
If no pizzas are delivered, there would be no need for boxes. thus boxes of pizza is a variable cost
the salary of the programmer is not dependent on the level of output. thus it is a fixed cost
a. variable costs.
b. variable costs.
c. fixed cost
d. variable costs.
e. fixed cost
The following information should be considered:
Fixed costs are costs that do not vary with output such as rent, mortgage payments Variable costs are costs that vary with production
So based on this, the above are the answers.
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3. The price elasticity of demand for wine is estimated to be 1 at all possible quantities. Currently, 200 million gallons of wine are sold per year, and the price averages $6 per bottle. Assuming that the price elasticity of supply of wine is 1 and the current tax rate is $1 per bottle, calculate the current excess burden of the tax on wine. Suppose the tax per bottle is increased to $2 per bottle. What will happen to the excess burden of the tax as a result of the tax increase
Answers
Answer:
The excess burden would quadruple to $33,333
Explanation:
In order to calculate the excess burden as a result of the tax increase, we first calculate the excess burden at current tax rate which is $1 per bottle. Excess burden is calculated using the following formulae:
W = 1/2(T)²(Q/P) x (Es x Ed / (Es - Ed))
where:
T = Tax per unit
Q = Total Quantity
P = Price per unit
Es = Elasticity of Supply
Ed = Elasticity of Demand
W = 1/2(1)² (200,000/6) x (1 x 1 / (1 - (-1)))
W = 1/2 (33.333) x (1/2)
W = $8,333
Now after-tax rate goes up to $2, the excess burden would as follow:
W = 1/2(2)² (200,000/6) x (1 x 1 / (1 - (-1)))
W = 2 (33.333) x (1/2)
W = $33,333 per year
Hence, the excess burden is $33,333 after the increase in tax.
Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:
Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.
Mar. 17 Reinstated the account of Shawn McNeely and received $1,000.
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Answer:
Mar. 17
Dr Cash $275
Dr Allowance for uncollectible accounts $1,000
Cr Accounts receivables $1,275
July 29
Dr Accounts receivables $1,000
Cr Bad Debts expense $1,000
Dr Cash $1,000
Cr Accounts receivables $1,000
Explanation:
Preparation of the journal entries using the direct write-off method of accounting for uncollectible receivables
Mar. 17
Dr Cash $275
Dr Allowance for uncollectible accounts $1,000
Cr Accounts receivables $1,275
($275+$1,000)
July 29
Dr Accounts receivables $1,000
Cr Bad Debts expense $1,000
Dr Cash $1,000
Cr Accounts receivables $1,000
A CFO of a start-up company is evaluating the timing of a significant capital expenditure. He was previously at a mature company that used a discount rate of 8% so he used the same rate at the start-up company. Which of the following would be impacted if the discount rate were raised to reflect the risk of the start-up company?
a) Internal rate of return
b) Payback period
c) Return on investment
d) Net present value
Answers
Answer:
d) Net present value
Explanation:
The net present value is the value that shows the difference between the initial investment present value and the cash flows present value. If the present value cash flows is more than the initial investment present value so the project should be accepted else rejected
So here in the given situation, the net present value would be effected in the case when the discount rate would be raised in order to present the start up company risk
Hence, the option d is correct
maximum amount willing to payGenesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60. The maximum amount the Cologne Division would be willing to pay for each bottle transferred would be:
Answers
Answer: $2.60
Explanation:
Based on the information given in the question, the maximum amount that the Cologne Division would be willing to pay for each bottle transferred would be the amount that the company can purchase the containers in the external market which is given in the question as $2.60.
That's the highest amount that they can but the containers for. Therefore, the answer is $2.60
The owner of land owes which of the following duties to a trespasser? *
to refrain from doing the trespasser intentional harm
to warn them of known dangers
to conduct reasonable searches for dangers
all of the above
Answers
Answer:
All of the above
hope it helped you
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following
Machine A could be purchased for $27,000. It will last 10 years with annual maintenance costs of $900 per year. After 10 years the machine can be sold for $2,835.
Machine B could be purchased for $22,500. It also will last 10 years and will require maintenance costs of $3,600 in year three, $4,500 in year six, and $5,400 in year eight. After 10 years, the machine will have no salvage value.
Required: Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase?
Answers
Answer: Esquire should purchase Machine B because it has a lower present value.
Explanation:
Present value cost of Machine A:
= Initial investment + Present value of costs - Present value of sales amount
Present value of cost = 900 * Present value annuity factor, 10 years, 8%
= 900 * 6.7101
= $6,039
Present value of sales amount = 2,835 / (1 + 8%)¹⁰
= $1,313.15
Present value cost = 27,000 + 6,039 - 1,313.15
= $31,725.85
Present value of Machine B:
= 22,500 + 3,600 / 1.08³ + 4,500 / 1.08⁶ + 5,400 / 1.08⁸
= 30,198.18
Esquire should purchase Machine B
art of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most likely associated with cultural differences between markets or technical differences. 1. A number of languages may be spoken in a country and even in countries where only one language is used, a word's meaning can change from one region to the next.
Answers
Answer:
1. Cultural differences between markets.
Explanation:
There are many language across the world. There are even many languages spoken in a single country. People living in one region will speak different language than those who live in other nearby region of the same country. The meanings of many words also changes in different languages. The word of English language have some meaning and same words may have different meaning in other languages.
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 8,000 computers: Actual: Variable factory overhead $101,750 Fixed factory overhead 180,000 Standard: 8,000 hrs. at $31 248,000 If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 8,000 standard hours was $284,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $18 per hour. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Variance Amount Favorable/Unfavorable Controllable $fill in the blank 1 Volume fill in the blank 3 Total factory overhead cost variance $fill in the blank 5
Answers
Answer:
Yes sir I am so so confused why you don’t want me to tell him I love lol you know that I’m a little bit scared you like I just want to see that you’re going crazy you ain’t doing anything wrong with your hair you are not even home I just want you to go see me again you have a lot been going on your phone and your mom you know that I’m going crazy lol oh my gosh you don’t look like and I’m sorry I’m sorry but you have no reason I just wanted to see if your dad would have you do you have any questions or you don’t want me too bad you know what
Explanation: what do I mean by your phone or your name on the sun and your name on the woods again I mean yyyyou and
The cafeteria of a prominent university in Carson, California hires students to assist in its three shifts of operations: breakfast, lunch, and dinner. In order to provide good customer service, the cafeteria has a policy that the number of students hired for the lunch shift must exactly equal (no more and no less) to the combined total number of students hired for the other two (that is, breakfast AND dinner) shifts. Based on these information, if Bis the number of students hired for the breakfast shift, L is the number of students hired for the lunch shift, and is the number of students hired for the dinner shift, then the constraint used in a Linear Programming (LP) problem to describe this situation is :________
A. B = L + D
B. L - B + D
C. D - B + L
D. Not enough information given to answer this question
E. None of the above please continue on the next page
Answers
Answer:
B. L - B + D
Explanation:
There are three different shifts of operation, Lunch, breakfast and dinner. The liner programming constraint is that lunch total must be equal to the sum of other two shifts. The constraint equation is formed to identify the number of students need to be hired for each shift.
C.S. Sandhill Company had the following transactions involving notes payable. July 1, 2022 Borrows $62,000 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $65,000 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answers
Answer:
C.S. Sandhill Company
Journal Entries:
July 1, 2022
Debit Cash $62,000
Credit 9-month, 8% Notes Payable (First National Bank) $62,000
To record signing of a 9-month 8% notes payable for cash borrowed.
Nov. 1, 2022
Debit Cash $65,000
Credit 3-month, 6% Notes Payable (Lyon County State Bank) $65,000
To record the signing of a 3-month 6% notes payable for cash borrowed.
Dec. 31, 2022
Debit Interest Expense $3,130
Credit Interest Payable $3,130
To record interest expense for the two notes. See calculations below.
Feb. 1, 2023
Debit 3-month, 6% Notes Payable (Lyon County State Bank) $65,000
Debit Interest Payable $650
Debit Interest Expense $325
Credit Cash $65,975
To record the repayment of the notes payable with interest due.
Apr. 1, 2023
Debit 9-month, 8% Notes Payable (First National Bank) $62,000
Debit Interest Payable $2,480
Debit Interest Expense $1,240
Credit Cash $65,720
To record the repayment of the notes payable with interest due.
Explanation:
a) Data and Analysis:
July 1, 2022 Cash $62,000 9-month, 8% Notes Payable (First National Bank) $62,000
Nov. 1, 2022 Cash $65,000 3-month, 6% Notes Payable (Lyon County State Bank) $65,000
Dec. 31, 2022 Interest Expense $3,130 Interest Payable $3,130 ($62,000 * 8% * 6/12) + ($65,000 * 6% * 2/12)
Feb. 1, 2023 3-month, 6% Notes Payable (Lyon County State Bank) $65,000 Interest Payable $650 Interest Expense $325 Cash $65,975 (Interest expense = $325 ($65,000 * 6% * 1/12)
Apr. 1, 2023 9-month, 8% Notes Payable (First National Bank) $62,000 Interest Payable $2,480 Interest Expense $1,240 Cash $65,720 (Interest expense = $1,240 ($62,000 * 8% * 3/12)
how much should a charm bracelet be with 1 tassel and mermaid tail.
Answers
Answer: The cost should be around $6 at least
Explanation:
Answer:
any where from 10 to 24 dollars. If it super lux maybe 50 something
Explanation:
can you help with 1040 form for acct 130 class
Answers
Answer:
what is the question lol? I could probably help you out !
Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Complete the cost schedule above. Round costs per unit to the nearest cent.
Answers
Answer:
Third World Gamer Inc.
Cost Schedule
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 900,000 1,200,000
Total fixed costs 600,000 600,000 600,000
Total costs $1,200,000 $1,500,000 $1,800,000
Cost per unit:
Variable cost per unit $1.20 $1.20 $1.20
Fixed cost per unit $1.20 $0.80 $0.60
Total cost per unit $2.40 $2.00 $1.80
Explanation:
a) Data and Calculations:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Variable cost per unit = $1.20 ($600,000/500,000)
On December 31, 2020, Nash Inc. has a machine with a book value of $958,800. The original cost and related accumulated depreciation at this date are as follows. Machine $1,326,000 Less: Accumulated depreciation 367,200 Book value $958,800 Depreciation is computed at $61,200 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Answers
Answer:
a. Depreciation expense = $40,800
b. Depreciation expense = $15,300
c. Depreciation expense = $35,700
Explanation:
Note: This question is not complete as the independent situations are omitted. The 3 independent situations are therefore provided to complete the question as follows:
a. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $438,600 was received for this casualty. Assume the settlement was received immediately.
b. On April 1, 2021, Marigold sold the machine for $1,060,800 to Yoakam Company.
c. On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,122,000.
The explanation of the answers is now provided as follows:
Note: See the attached excel file for the journal entry for each of the 3 independent situations.
In the attached excel file, the depreciation for each situation are calculated as follows:
a. Depreciation expense = $61,200*8/12 = $40,800
b. Depreciation expense = $61,200*3/12 = $15,300
c. Depreciation expense = $61,200*7/12 = $35,700
QS 7-5 (Algo) Allowance method for bad debts LO P2 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer, C. Green. On March 9, it receives a $2,300 payment from Green. 1. Prepare the journal entry for January 31. 2. Prepare the journal entries for March 9; assume no additional money is expected from Green.
Answers
Answer:
1. Jan 31
Dr Allowance for doubtful accounts $2,800
Cr Accounts receivable—C. Green $2,800
2. Mar 09
Dr Accounts receivable—C. Green $2,300
Cr Allowance for doubtful accounts $2,300
3. Mar 09
Dr Cash $2,300
Cr Accounts receivable—C. Green $2,300
Explanation:
1. Preparation of the journal entry for January 31.
Jan 31
Dr Allowance for doubtful accounts $2,800
Cr Accounts receivable—C. Green $2,800
2. Preparation of the journal entry for March 9
Mar 09
Dr Accounts receivable—C. Green $2,300
Cr Allowance for doubtful accounts $2,300
3. Mar 09
Dr Cash $2,300
Cr Accounts receivable—C. Green $2,300
what does NBT
stand for
Answers
The meaning of the abbreviation NBT is the National Benchmark Test.
National Benchmark TestThe meaning of the abbreviation NBT is the National Benchmark Test.
The National Benchmark Tests (NBTs) are assessments for first-year applicants into higher education institutions.
It is crucial in order to assess a candidate's ability, academic literacy as well as his or her quantitative and Mathematics ability
Learn more on National Benchmark Test here: https://brainly.com/question/22257700
Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,862.1. What is the amount of the discount on these bonds at issuance
Answers
Answer:
Tano Company
The amount of the discount on these bonds at issuance is:
= $9,138.
Explanation:
a) Data and Calculations:
Face value of bonds issued = $180,000
Proceeds from sale of bonds 170,862
Discount on bonds = $9,138
Bonds' contract rate = 8%
Market rate on date of issuance = 10%
b) The bonds were issued at a value that is less than the face or par value. This implies that there are discounts on the bonds, totaling $9,138. This is the difference between the face value of the bonds and the actual proceeds received from the issuance of the bonds. This also explains why the bonds are paying 8% interest when the prevailing market rate is 10%. The discounts compensate the bondholders for the reduced interest rate by selling at a discount.
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
On December 31, calculated the payroll, which indicates gross earnings for wages ($64,000), payroll deductions for income tax ($6,400), payroll deductions for FICA ($4,800), payroll deductions for American Cancer Society ($2,400), employer contributions for FICA (matching), and state and federal unemployment taxes ($560). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded.
Collected rent revenue of $5,700 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 12 to January 10 and was credited in full to Deferred Revenue.
Required:
1. & 2. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on December 31.
3. Show how any of the liabilities related to these items should be reported on the company’s balance sheet at December 31.
Answers
Answer: Check attachment and explanation.
Explanation:
a. The question has been solved. Check the attachment.
b. LAKEVIEW COMPANY
Balance sheet (Partial)
December 31
Current liabilities
FICA Payable=$4800 + $4800= $9600
Charitable contribution payable = $2400
Withheld income tax payable = $6400
State and Federal unemployment tax payable = $560
Unearned rent revenue = $5700 - $3800 = $1900
Total current liabilities = $20860
On January 1, 2020, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $448,000 consideration. At the acquisition date, the fair value of the 20 percent noncontrolling interest was $112,000, and Rockne's assets and liabilities had a collective net fair value of $560,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $170,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $230,000 in 2020 and $330,000 in 2021. Approximately 30 percent of the inventory purchased during any one year is not used until the following year.
Requied:
a. What is the noncontrolling interest's share of Rockne's 2021 income?
b. Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers
Answers
Answer:
(A). $32,800
(B). Entries are shown below.
Explanation:
(A) According to the scenario, computation of the given data are as follows,
Net income of Rockne Company in 2021 = $170,000
Unrealized profit 2020 = $230,000 × 30% × 20% = $13,800
Unrealized profit 2021 = $330,000 × 30% × 20% = $19,800
So, Total income = $170,000 + $13,800 - $19,800 = $164,000
Now, noncontrolling interest's share of Rockne's 2021 income can be calculated as follows,
NCI share of Rockne's 2021 income = Total income × 20%
= $164,000 × 20%
= $32,800
(B). Journal entries for the given data are as follows,
1. Retained Earnings A/c Dr. $13,800
To, COG sold A/c. $13,800
( Being event *G entry is recorded)
2. Sales A/c Dr. $330,000
To, COG sold A/c. $330,000
( Being event TI entry is recorded)
3. COG sold A/c Dr. $19,800
To, Inventory A/c. $19,800
( Being event G entry is recorded)
emiannual coupon bonds with the same risk (Aaa) and maturity (20 years) as your company's bonds have a nominal (not EAR) yield to maturity of 9%. Your company's treasurer is thinking of issuing, at par, some $1,000 par value, 20-year, quarterly payment bonds. She has asked you to determine what quarterly interest payment, in dollars, the company would have to set in order to provide the same effective annual rate (EAR) as those on the 20-year, semiannual payment bonds. What would the quarterly, dollar interest payment be
Answers
Answer:
quarterly coupon payment = $22.25
Explanation:
effective annual interest rate of current bonds = (1 + 9%/2)² - 1 = 9.2025%
if the new bonds will have quarterly payments, then the nominal interest rate should be:
1.092025 = (1 + r/4)⁴
⁴√1.092025 = ⁴√(1 + r/4)⁴
1.02225 = 1 + r/4
0.02225 = r/4
r = 8.9% annual
quarterly rate = 2.225%
quarterly coupon payment = $22.25
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $467,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $67,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $28,500 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the physical count. A third purchase, shipped from a supplier FOB shipping point on December 28, 2021, did not arrive until January 3, 2022. The merchandise, which cost $97,000, was not included in the physical count and the purchase has not yet been recorded.
The company uses a periodic inventory system.
Required:
a. Determine the correct December 31, 2021, inventory balance and, assuming that the errors were discovered after the 2021 financial statements were issued, analyze the effect of the errors on 2021 cost of goods sold, net income, and retained earnings. (Ignore income taxes.)
b. Prepare a journal entry to correct the errors.
Answers
Answer:
Tog Company
a. The correct December 31, 2021 balance of Inventory is
= $592,500.
b. The error increased the cost of goods sold, thereby reducing the net income and the retained earnings.
c. Journal Entries to correct errors:
Debit 2021 Inventory $67,000
Credit 2022 Inventory $67,000
To correct the error.
December 31, 2021
Debit Purchase $97,000
Credit Accounts Payable $97,000
To record the purchase of merchandise, shipped FOB shipping point on December 28, 2021.
Explanation:
a) Data and Calculations:
Physical count Inventory = $467,000
FOB shipping point 2021 = 28,500
December 28 FOB shipping point = 97,000
December 31, 2021 balance = $592,500
The error would increase the cost of goods sold, thereby reducing the net income and the retained earnings.
Journal Entries to correct errors:
December 31, 2021
a. 2021 Inventory $67,000 2022 Inventory $67,000. The records should be for 2021 and not 2022.
b. This only affects the physical count and not the records.
c. Purchase $97,000 Accounts Payable $97,000. Both the physical count and the records were omitted.