The requested transaction for June 8 involves Rashid Est. purchasing supplies for BD3,250 from Nader Est. on credit. We need to prepare the journal entry for this transaction.
The journal entry will reflect the appropriate debit and credit amounts to record the purchase of supplies on credit.
To record the June 8 transaction for Rashid Est., we need to prepare the journal entry with the proper debit and credit amounts. Since Rashid is purchasing supplies on credit for BD3,250, we will debit the Supplies account to reflect the increase in the company's assets. On the other side, we will credit the Accounts Payable account to record the liability owed to Nader Est.
The journal entry for the June 8 transaction would look as follows:
Dr: Supplies.................... BD3,250
Cr: Accounts Payable............ BD3,250
By debiting the Supplies account, we increase the company's asset value to reflect the acquisition of supplies. By crediting the Accounts Payable account, we record the liability owed to Nader Est. for the supplies purchased on credit.
This journal entry ensures that the financial records accurately reflect the purchase of supplies and the corresponding liability for Rashid Est. during June 2020.
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according to mckinsey and company, which position cannot be easily replaced with robots? multiple choice
a) repetitive factory jobs. b) clerks and bookkeepers. c) team managers. d) legal researchers.
Explanation:
According to McKinsey and Company, which position cannot be easily replaced with robots?
the correct option is c)team managers
If a special order results in a positive contribution margin of $8 when the contribution margin for regular orders is $15, which of the following decisions is the most likely to be chosen?
A.Accept the order
B. Reject the order
C. Accept the order, but only if the customer agrees to an increase in the selling price to match the $15 regular contribution margin.
D. Accept the order, but only if the customer agrees to an increase of $7 in the selling price
The most likely decision would be to accept the order, but only if the customer agrees to an increase in the selling price to match the $15 regular contribution margin.
The contribution margin represents the difference between the selling price and the variable costs per unit. In this case, the special order has a positive contribution margin of $8, which means that the selling price for the special order covers the variable costs and contributes an additional $8 towards covering fixed costs and generating profit.
Since the contribution margin for regular orders is $15, it is more profitable for the company to focus on regular orders. However, if the customer agrees to an increase in the selling price of the special order to match the regular contribution margin, the company would earn the same amount per unit from both regular and special orders. This would ensure that the company does not lose out on potential profit by accepting the special order at a lower contribution margin. Therefore, the most likely decision would be to accept the order, but only if the customer agrees to an increase in the selling price to match the $15 regular contribution margin. This decision allows the company to maintain consistency in contribution margins and maximize profitability.
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what role did the company’s chief financial officer play in creating the problems that led to enron’s financial problems?
Enron's financial collapse in 2001 was attributed to factors including Andrew Fastow's role in creating off-balance-sheet and manipulating financial statements.
Explanation:
Enron's financial collapse in 2001 can be attributed to various factors, including the role played by the company's chief financial officer, Andrew Fastow. Fastow devised the off-balance-sheet funding model and created Special Purpose Entities (SPEs) to manipulate Enron's financial statements. This allowed Enron to hide debt and portray a better financial situation than reality, leading to investors being unaware of the company's true financial condition.
Off-Balance-Sheet Funding Model: In the early 1990s, Fastow created a financial structure that enabled Enron to keep significant debt off its books. By utilizing complex transactions, Enron moved liabilities and assets to off-balance-sheet entities, giving the illusion of reduced debt and improved financial health.
Special Purpose Entities (SPEs): Fastow was responsible for establishing a series of partnerships known as SPEs. Enron used these entities to conduct transactions and shift debt and underperforming assets off the company's financial statements. This allowed Enron to maintain a favorable appearance to investors and analysts.
Deceptive Financial Reporting: The use of off-balance-sheet entities and SPEs helped Enron hide its true financial situation. By keeping debt hidden and inflating revenue figures, Enron presented misleading financial reports. This practice misled investors and analysts into believing that the company was performing well, when, in reality, it was facing significant financial difficulties.
Personal Benefit: Fastow personally gained from the use of these partnerships. He received substantial compensation and financial incentives for his involvement in the SPEs, which further motivated him to engage in these deceptive practices.
Ultimately, the use of off-balance-sheet funding models and SPEs, orchestrated by Andrew Fastow, played a crucial role in Enron's financial collapse. The deception surrounding Enron's financial statements shattered investor confidence, leading to the loss of trust and ultimately the company's bankruptcy.
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a business process has a process-capability-ratio cpk = 1.1. does this process performance meet the 3-sigma quality control standard?
This process performance meets the 3-sigma quality control standard.
A business process has a process-capability-ratio cpk = 1.1. Does this process performance meet the 3-sigma quality control standard?Solution:A Process Capability Index (Cpk) is a measurement of how well a method's output conforms to a client's or user's expectations.
The customer's requirements and specifications for the output are usually expressed in terms of tolerances, and Cpk compares these tolerances to the output variation that the process generates.A process is considered to be capable if it can generate output that meets the customer's requirements at a rate of at least 99.73 percent.
The Six Sigma quality management methodology emphasizes process capability as a method of attaining quality.A Cpk of 1.1 indicates that the method can generate output that meets the customer's requirements with 1.1 standard deviations of process variation on either side of the process mean. A Cpk of 1.1 is a very good level of capability, and it exceeds the 3-sigma quality control standard.In conclusion, a process-capability-ratio of Cpk = 1.1 exceeds the 3-sigma quality control standard.
Hence, this process performance meets the 3-sigma quality control standard.
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List two companies whose CEOs have left for reasons other than normal retirement in the past 12 months. Assess their company's performance following their departure. 1. Was the organization's stock price affected?
2. Why might a CEOs departure affect company performance?
Two companies whose CEOs have left for reasons other than normal retirement in the past 12 months include:Uber's CEO Dara Khosrowshahi: He replaced former CEO Travis Kalanick in August 2017. The company's stock prices have been up and down since the leadership change, but it has been showing improvement lately.
In the past 12 months, two companies whose CEOs have left for reasons other than normal retirement include Uber and WeWork. Uber's former CEO, Travis Kalanick, was replaced by Dara Khosrowshahi in August 2017. The company's stock prices have been up and down since the leadership change, but it has been showing improvement lately. Khosrowshahi has been focused on improving Uber's corporate culture and financial performance, which has contributed to the company's improved stock prices and investor confidence.WeWork's former CEO, Adam Neumann, stepped down in September 2019 following a failed IPO attempt. The company's stock price has decreased since his departure, as investors were concerned about the company's financial health and future prospects without Neumann's leadership. The company has also been struggling with its business model and operations, leading to layoffs and office space closures.A CEO's departure can significantly affect a company's performance in several ways. CEOs have a significant influence on a company's operations and decision-making processes, and their departure can lead to instability and uncertainty. Additionally, investors and other stakeholders may be concerned about the company's future without the CEO, leading to decreased stock prices and loss of trust in the company. A CEO's departure can also negatively impact employee morale and lead to talent loss, which can further impact company performance.
In conclusion, a CEO's departure can have a significant impact on a company's performance, depending on the circumstances of their departure and the company's overall health. While some companies may recover and improve following a CEO's departure, others may struggle with instability and uncertainty, leading to decreased investor confidence and stock prices.
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Prepare the December 31 entry for Grouper Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3.520. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Tities and Explanation Debit Credit 1 On July 1, 2020, Grouper Corporation purchased Young Company by paying $253,500 cash and issuing a $139,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $208,000 $50,900. Accounts payable 90,600 Stockholders' equity Accounts receivable 243,400 Inventory 110,000 $451.400 Land 41.800 Buildings (net) 75,700 Equipment (net) 71,400 Trademarks 11.000 $451,400 The recorded amounts all approximate current values except for land (fair value of $64.300), inventory fair value of $127.000), and trademarks (fair value of $16,880).
On December 31, Grouper Corporation records an entry to amortize intangibles. The trademark, with a useful life of 4 years and a residual value of $3,520, is being amortized.
To record the amortization of intangibles on December 31, Grouper Corporation will make the following entry:
Amortization Expense $2,370
Accumulated Amortization - Trademarks $2,370
The amortization expense is debited for the estimated amortization amount of $2,370, representing the portion of the trademark's value that is being expensed in the current period. The accumulated amortization account is credited to reduce the carrying value of the trademark by the same amount.
The trademark has an estimated useful life of 4 years, so the total amortization expense over its useful life would be $11,880 ($2,370 per year). The residual value of $3,520 represents the estimated value of the trademark at the end of its useful life.
Amortization is the systematic allocation of the cost of an intangible asset over its useful life. In this case, the trademark is being amortized over 4 years, with an equal annual amount of $2,370. This process recognizes the consumption of the asset's economic benefits over time. As each year passes, the accumulated amortization increases, and the carrying value of the trademark decreases until it reaches its residual value.
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At the end of its 2021 fiscal year, a triggering event caused Janero Corporation to perform an impairment test for one of its manufacturing facilities. The following information is avallable: The manufacturing facility is:
Janeiro Corporation is required to perform an impairment test for one of its manufacturing facilities due to a triggering event. The triggering event could be a significant decline in the fair value of the asset, a change in the use of the asset, or a significant change in the economic environment.
The impairment test will determine whether the carrying amount of the asset is greater than its recoverable amount. If the carrying amount is greater than the recoverable amount, an impairment loss will be recorded. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Fair value is the price that a willing buyer would pay for an asset in an arms-length transaction. Costs to sell are the direct costs incurred to sell an asset, such as brokerage fees and legal fees. Value in use is the present value of the future cash flows expected to be generated by the asset.
To calculate the fair value of fewer costs to sell, Janeiro Corporation would need to obtain an appraisal of the manufacturing facility. The appraisal would consider the current market conditions, the age and condition of the facility, and the potential uses for the facility. To calculate the value in use, Janeiro Corporation would need to estimate the future cash flows expected to be generated by the manufacturing facility. The cash flows would be discounted to present value using a discount rate that reflects the risk of the cash flows.
If the carrying amount of the manufacturing facility is greater than its recoverable amount, an impairment loss will be recorded. The impairment loss will be calculated as the difference between the carrying amount and the recoverable amount. The impairment loss will be reported on Janeiro Corporation's income statement.
An impairment test is a significant event that can have a material impact on Janeiro Corporation's financial statements. The impairment loss will reduce Janeiro Corporation's net income and its assets. The impairment loss could also lead to a decrease in Janeiro Corporation's stock price.
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I want solve directly such as A , B and C QUESTION 5 The following items were taken from the financial statements of Panda Hypermarket Company. All dollars are in thousands. Common stock $2,826 Cash $1,728 Prepaid expenses 1,366 Accumulated depreciation equipment 3,547 Equipment 6,705 Accounts payable 1,344 Investments-Long term 2,847 Note payable -Long term 810 Retained earnings 6,896 Investments Short-term 1,743 Accounts receivable 1,277 Income taxes payable 243 Instructions Prepare a classified balance sheet in good form as of December 31,2009 and answer the questions below 1.Find the total current assets: A.6,114. B.4.371. C.4,837. D.4,748. 6.Total long-term liability A.1,250. B.810. C.1.350. D.1,450. 2.Find the total of property.plant and cquipment A.6,705. B.3,158. C.3,858. D.5,535. 7.Total of shareholder cquity A.10.000. B.8.722. C.9,722. D.7,500. 8.Total liabilities and shareholder equity: A.13,119 B.12.590. C.13,590. D.12,119, 3.Long term Assets: A.3,750. B.2,750. C.2,847. D.3.500. 4.Total Assets A.13.119 B.12,590. C.13.590. D.12,119. 9. Calculate the liquidity by using current ratio: A.3.85. B.0.26. C.All above. D.None above. 5.Total current liability A.1,587. B.1,450. C.1,687. D.2,000. 10.Calculate the (Solvency ratio) debt to total assets ratio; A.39.2% B.35% C.45% D.50%
Total Liabilities and Shareholders Equity is calculated as follows:Total Current Liability 1,587Total Long Term Liability 810Total Shareholders Equity 9,722Total Liabilities and Shareholders Equity = Total Current Liability + Total Long Term Liability + Total Shareholders Equity = 1,587+810+9,722 = $12,119Thus, the option D is correct.
Given data:Common stock $2,826Cash $1,728Prepaid expenses 1,366Accumulated depreciation equipment 3,547Equipment 6,705Accounts payable 1,344Investments-Long term 2,847Note payable -Long term 810Retained earnings 6,896Investments Short-term 1,743Accounts receivable 1,277Income taxes payable 243Instructions:Prepare a classified balance sheet in good form as of December 31, 2009.1. Total Current assets are calculated as follows:Cash 1728Accounts Receivable 1277Prepaid Expenses 1366Short Term Investments 1743Total Current Assets = 1728+1277+1366+1743 = $6,114Thus, the option A is correct.2. Total of Property, Plant, and Equipment are calculated as follows:Equipment 6705Accumulated Depreciation (Equipment) 3547Total of Property, Plant and Equipment = Equipment - Accumulated Depreciation = 6705-3547 = $3,158Thus, the option B is correct.3. Long term assets are calculated as follows:Long Term Investments 2847Total Long Term Assets = Long Term Investments = $2847Thus, the option C is correct.4. Total assets are calculated as follows:Total Current Assets 6114Total Long Term Assets 2847Total Assets = Total Current Assets + Total Long Term Assets = 6114+2847 = $8,961Thus, the option is B correct
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Martinez Corporation had 2020 net income of $1.169,000, During 2020, Martinez paid a dividend of $2 per share on 87,850 shares of preferred stock. During 2020, Martinez had outstanding 301,000 shares of common stock Compute Martinez's 2020 earnings per share. (Round answer to 2 decimal places a 35
To calculate Martinez Corporation's 2020 earnings per share (EPS), you need to divide the net income by the weighted average number of shares outstanding during the year. Here's how you can calculate it:
1. Calculate the weighted average number of shares outstanding:
Weighted Average Shares = (Number of Preferred Shares * Dividend per Share) + Number of Common Shares
Weighted Average Shares = (87,850 shares * $2) + 301,000 shares
Weighted Average Shares = 175,700 + 301,000
Weighted Average Shares = 476,700
2. Calculate the earnings per share:
Earnings per Share = Net Income / Weighted Average Shares
Earnings per Share = $1,169,000 / 476,700
Earnings per Share ≈ $2.45
Therefore, Martinez Corporation's 2020 earnings per share is approximately $2.45.
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A consumer's preferences are given by the following utility function: u(x,y) = 2 x+y a. Assume Px = 12, Py = 2, and I = 72. What is the quantity demanded of x and y? ** (12, 2, 72) y* (12, 2, 72) Рx b. Now, suppose we don't know Px. Py, or 1. If z >Py what is the quantity demanded for x and y? * (PxPy!) y (Px Py.) PX c. Suppose we don't know Px. Py, or l. If
A. Px = 12, Py = 2, and I = 72, the quantity demanded of x and y can be determined by maximizing utility subject to the budget constraint. B. When we don't know the values of Px, Py, C. Similarly, without knowing the values of Px, Py
a, Using the utility function u(x,y) = 2x + y, and the budget constraint Px * x + Py * y = I, we can solve for the optimal quantities. By substituting the given values, we have 12x + 2y = 72. Solving this equation, we find the quantity demanded of x is x = 4 and the quantity demanded of y is y = 24.
b. When we don't know the values of Px, Py, or I, it is not possible to determine the specific quantities demanded for x and y. Without knowing the price of x (Px) and the price of y (Py), along with the consumer's income (I), we cannot solve the utility maximization problem or determine the quantity demanded.
c. Similarly, without knowing the values of Px, Py, or I, it is not possible to determine the quantities demanded for x and y. In order to determine the specific quantities, we need information on the prices and the consumer's income to construct the budget constraint and solve the utility maximization problem.
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assuming that we focus on the desire for fitness technology functionality, what market do you think would benefit most from our of:___
The fitness technology functionality could benefit markets such as fitness enthusiasts and health and wellness industries, offering advanced tracking features, personalized coaching, and data-driven insights.
Assuming the focus is on the desire for fitness technology functionality, the market that would benefit the most can vary based on several factors. However, some potential markets that could benefit from fitness technology functionality include:
Fitness Enthusiasts: This market consists of individuals who are actively engaged in fitness activities, such as gym-goers, athletes, and fitness enthusiasts. They are likely to value advanced tracking features, performance metrics, training programs, and personalized coaching offered by fitness technology.
Health and Wellness Industry: The health and wellness industry, including fitness centers, wellness retreats, and spas, can benefit from incorporating fitness technology functionality into their offerings. It can enhance the user experience, provide data-driven insights, and enable personalized fitness programs for their clients.
Corporate Wellness Programs: Many companies are investing in employee wellness programs to improve the health and well-being of their workforce. Fitness technology functionality can be integrated into these programs to track employee activity, provide incentives for physical fitness, and promote a healthier lifestyle among employees.
Healthcare and Rehabilitation: Fitness technology with advanced functionality can be beneficial in healthcare settings for monitoring patient activity levels, tracking progress during rehabilitation, and promoting physical activity as part of a treatment plan.
Aging Population: As the population ages, there is a growing focus on healthy aging and maintaining an active lifestyle. Fitness technology functionality can cater to this market segment by providing features specifically designed for seniors, such as fall detection, activity reminders, and health monitoring.
It's important to note that the success of fitness technology in these markets will depend on factors such as affordability, ease of use, data privacy, and the ability to deliver accurate and meaningful insights to users. Market research and understanding the specific needs and preferences of the target audience would be crucial in determining the most beneficial market for fitness technology functionality.
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Which of the following are benefits of decentralization? A manager of a division has greater decision making control over his/her division. Coordination among autonomous managers is highly effective.
Two benefits of decentralization are greater decision-making control for division managers and highly effective coordination among autonomous managers.
Decentralization refers to the distribution of decision-making authority and responsibility to lower levels within an organization. One of the benefits of decentralization is that division managers have greater control over decision-making in their respective divisions. This allows them to tailor decisions and strategies to the specific needs and circumstances of their division, leading to more efficient and effective operations.
Another benefit of decentralization is the effective coordination among autonomous managers. When decision-making authority is delegated to different managers or departments, they can make decisions independently based on their expertise and knowledge. This autonomy fosters quick decision-making, adaptability, and innovation. Additionally, decentralized managers can coordinate and collaborate with each other to ensure alignment and synergy across different divisions or units.
Overall, decentralization empowers division managers, promotes effective decision-making, and enhances coordination among autonomous managers, leading to improved organizational performance and responsiveness to market conditions.
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Early in 2020, Buffalo Equipment Company sold 500 Rollomatics at $5,500 each. During 2020, Buffalo spent $22,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis.Prepare 2020 entries for Buffalo assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $61,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $22,000. Estimate revenues to be recognized on a straight-line basis. (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 amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to 0 decimal places, e.g. 5,125. Record journal entries in the order presented in the problem.)
To record the warranty costs incurred in 2020 for Buffalo Equipment Company, an entry would be made to recognize the expense.
Since the warranties are not an integral part of the sale, the warranty costs are treated separately. The journal entry for Buffalo Equipment Company to record the warranty costs incurred in 2020 would be as follows:
Date Account Titles Debit Credit
Dec 31, 2020 Warranty Expense $22,000
Cash $22,000
The entry debits the Warranty Expense account for $22,000 to recognize the expense incurred for servicing the warranties. The corresponding credit is made to the Cash account to indicate the payment made for the warranty servicing costs.
To estimate revenues to be recognized on a straight-line basis, we need to determine the total expected revenue from the warranty contracts and divide it equally over the warranty period. In this case, we are not given the warranty period, so we'll assume it to be 2 years.The total revenue from warranty contracts is given as $61,000. Since the warranty period is 2 years, the annual revenue recognition would be $61,000 divided by 2, which equals $30,500.
The journal entry to recognize the revenue on a straight-line basis would be made at the end of each year. Assuming the warranty period starts in 2020, the entry would be made on December 31, 2020, as follows:
Date Account Titles Debit Credit
Dec 31, 2020 Warranty Revenue $30,500
Unearned Warranty Revenue $30,500
This entry credits the Unearned Warranty Revenue account for $30,500 to defer the revenue until it is earned over the warranty period. The Warranty Revenue account is debited for the same amount to recognize the revenue for the first year.
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if the price of electrical energy is 0.12 per kilowatt-hour what is the cost of using electrical energy to heat the waterin a swimming pool (12x9x1.5) from 16 to 26
To calculate the cost, we need to determine the energy consumption. However, without information on the heating element or time, we cannot provide an accurate cost estimate.
First, let's calculate the volume of water in the pool:
Volume = length × width × depth
Volume = 12 ft × 9 ft × 1.5 ft
Volume = 162 cubic feet
Next, let's convert the volume from cubic feet to gallons:
1 cubic foot = 7.48 gallons
Volume = 162 cubic feet × 7.48 gallons/cubic foot
Volume = 1,209.76 gallons
To calculate the energy required to heat the water, we'll use the formula:
Energy = mass × specific heat capacity × temperature change
The mass of water can be calculated by multiplying the volume by its density:
The density of water = 8.34 pounds/gallon
Mass = Volume × Density
Mass = 1,209.76 gallons × 8.34 pounds/gallon
The specific heat capacity of water is approximately 1 BTU/pound/°F.
Now, let's calculate the temperature change:
Temperature change = Final temperature - Initial temperature
Temperature change = 26°F - 16°F
Finally, we can calculate the energy required:
Energy = Mass × Specific heat capacity × Temperature change
Once we have the energy required, we can convert it to kilowatt-hours using the conversion factor:
1 BTU = 0.000293071 kilowatt-hours
To find the cost, we multiply the energy (in kilowatt-hours) by the cost per kilowatt-hour:
Cost = Energy × Cost per kilowatt-hour
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Phil is confident that if he studies the procedural manual he can list every single step in his company's manufacturing process. Phil's belief that his effort to study the manufacturing steps will result in successfully naming the steps is an example of
Phil's belief that his effort to study the manufacturing steps will result in successfully naming the steps is an example of self-efficacy.
Self-efficacy refers to an individual's belief in their ability to successfully perform a specific task or achieve a desired outcome. It is closely related to self-confidence and is influenced by factors such as past experiences, knowledge, skills, and social support.
In this scenario, Phil's confidence in his ability to list every single step in the company's manufacturing process indicates a high level of self-efficacy. He believes that his effort, specifically studying the procedural manual, will lead to the desired outcome of accurately naming the steps. This belief in his own competence and effectiveness in studying and understanding the manufacturing process contributes to his motivation and willingness to undertake the task.
Self-efficacy plays a crucial role in goal setting, task performance, perseverance, and overall success. It influences an individual's level of effort, their approach to challenges, and their ability to overcome obstacles. Phil's confidence in his ability to master the manufacturing process through studying the procedural manual can positively impact his performance and increase the likelihood of successfully identifying the steps.
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Big Corporation enters into a 6-year lease of equipment with Tiny Company, receiving annual lease payments of $9,500, payable at the end of each year. Tiny provides a residual value guarantee of $13,000. The equipment has a 9-year estimated remaining economic life, a carrying amount of $54,000, and a fair value of $62,000 at the commencement date. Big expects the residual value of the equipment to be $20,000 at the end of the 6-year lease term. The lease does not transfer ownership of the underlying asset to Tiny or contain an option for Tiny to purchase the underlying asset. Big incurs $2,000 in initial direct costs in connection with obtaining the lease, and no amounts are prepaid by Tiny to Big. The rate implicit in the lease is 5.5 percent. However, Big Corporation has serious concerns as to the collectability of the lease as the lessee intends to make the lease payments primarily from income from the business in which the equipment will be used. There is considerable competition in the industry and Tiny Company has limited experience. a. Upon the inception of the lease, how should Big classify this lease? (Please provide a citation that supports your conclusion.) b. At the end of year 1, Tiny makes the first payment, but it is still not probable that all payments will be collected. How is this payment recorded? c. At the end of year 4, Tiny makes the annual payment and collectability on the remainder of the lease is now likely. How should Big record this transaction?
In this scenario, Big Corporation enters into a 6-year lease with Tiny Company for equipment. The lease payments are $9,500 annually, with a residual value guarantee of $13,000.
The equipment has an estimated remaining economic life of 9 years, a carrying amount of $54,000, and a fair value of $62,000. Big expects the residual value of the equipment to be $20,000 at the end of the lease term.
The lease does not transfer ownership or contain a purchase option. Big incurs $2,000 in initial direct costs, and there are concerns about collectability. The implicit rate in the lease is 5.5 percent.
a. Upon the inception of the lease, Big should classify this lease as an operating lease. According to ASC 842-10-25-2, an operating lease is a lease that does not transfer ownership of the underlying asset to the lessee and does not contain a purchase option.
In this case, Big does not gain ownership of the equipment, and there is no option to purchase. The lease term is shorter than the economic life of the equipment, further supporting the classification as an operating lease.
b. At the end of year 1, when Tiny makes the first payment but collectability of all payments is still not probable, Big should record the payment as "Lease Receivable" and recognize any associated interest income.
However, given the concerns about collectability, Big should also assess the lease receivable for impairment under ASC 842-30-35-3.
c. At the end of year 4, when collectability on the remainder of the lease is now likely, Big should record the annual payment received as "Lease Receivable" and recognize interest income.
Additionally, Big should reassess the collectability of the lease payments and adjust the allowance for doubtful accounts if necessary.
It is important for Big Corporation to follow the guidance provided by ASC 842, Lease Accounting, and consider the specific circumstances and criteria outlined in the standard to ensure accurate classification and recording of the lease transactions.
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At year-end December 31, Chan Company estimates its bad debts as 0.60% of its annual credit sales of $989,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $495 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list 1 Record the estimated bad debts expense. > 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account. 4 Record the cash received on account. Credit
The company should prepare the following journal entries:
1. Record the estimated bad debts expense.Amount of bad debts expense = 0.60% of $989,000= $5,934.Dr. Bad Debt Expense $5,934Cr. Allowance for doubtful accounts $5,934
2. Wrote off P. Park's account as uncollectible.Dr. Allowance for doubtful accounts $495Cr. Accounts receivable – P. Park $495
3. Reinstated Park's previously written-off account.The reinstatement of the account would be based on the assumption that the entry made when the account was written off is still open and the reinstatement is not to be recorded using reversing entries.Dr. Accounts receivable – P. Park $495Cr. Allowance for doubtful accounts $4954. Record the cash received on account.Dr. Cash $495Cr. Accounts receivable – P. Park $495
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the ________ section of the statement of cash flows includes increases and decreases in longterm assets.
The section of the statement of cash flows that includes increases and decreases in long-term assets is the investing activities section.
The investing activities section provides information about the cash flows related to the acquisition, disposal, and changes in long-term assets such as property, plant, and equipment, investments in other companies, and loans made to other entities.
In this section, cash flows are reported as either inflows or outflows depending on the nature of the transaction. For example, cash inflows may occur when a company sells a piece of equipment, sells investments, or collects principal payments on loans made to other entities. On the other hand, cash outflows may occur when a company purchases new property, plant, and equipment, buys investments, or provides loans to other entities.
By analyzing the investing activities section, stakeholders can gain insights into the company's capital expenditures, investment decisions, and long-term asset management. It helps assess the company's ability to invest in future growth, maintain its assets, and generate returns on its long-term investments.
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Juanita was involved in an auto accident in which she was at fault. Her own car sustained $1,248 damages and the other vehicle cost $1,500 to repair.Juanita was not injured, but the driver of the other car required medical treatment costing $17,606 and a passenger's injuries totaled $11,995. Juanita's policy includes 10/20/5 liability, $500 deductible collision and $100 deductible comprehensive. How much of the damages must Juanita pay (in $)?
Juanita must pay $17,349 towards the damages.
To determine how much of the damages Juanita must pay, we need to consider the liability coverage limits and deductibles of her insurance policy. Given the information provided, here's how we can calculate the amount Juanita must pay:
Liability Coverage:
The liability coverage limits in Juanita's policy are 10/20/5, which represent:
$10,000 coverage for bodily injury per person
$20,000 coverage for bodily injury per accident
$5,000 coverage for property damage per accident
Since the total medical treatment costs for the driver and passenger exceed the bodily injury coverage limits, Juanita will be responsible for the remaining amount.
Property Damage:
The property damage coverage limit for Juanita's policy is $5,000. Since the total cost to repair the other vehicle exceeds this limit, Juanita will be responsible for the additional property damage amount.
Calculation:
Juanita's total responsibility will include:
Juanita's car damages ($1,248)
Excess property damage to the other vehicle ($1,500 - $5,000)
Excess medical treatment costs for the driver ($17,606 - $10,000)
Medical treatment costs for the passenger ($11,995)
Juanita's total responsibility = $1,248 + ($1,500 - $5,000) + ($17,606 - $10,000) + $11,995
Juanita's total responsibility = $1,248 + (-$3,500) + $7,606 + $11,995
Juanita's total responsibility = $17,349
Therefore, Juanita must pay $17,349 towards the damages.
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Which of the following does not accurately describe the presentation of software development
costs on the statement of cash flows? A. The presentation of software development costs is based upon the determination of technological
feasibility. B. GAP contains bright-line criteria for determining technological feasibility which provides an
opportunity for management to distort or manipulate results. C. Reclassifying software development costs from the investing to the operating section of the cash
flow statement improves interfirm comparability. D. Reclassifying software development costs undoes the misleading effects for any firm that attempts to improve operating cash flows by lowering the technological feasibility threshold in
the current period relative to prior periods.
C. Reclassifying software development costs from the investing to the operating section of the cash flow statement improves interfirm comparability.
Reclassifying software development costs from the investing to the operating section of the cash flow statement does not necessarily improve interfirm comparability. It can actually introduce inconsistencies and make it difficult to compare the financial performance of different companies. Reclassifying them inconsistently can make it challenging to compare the financial performance of companies within the same industry.
The accurate presentation of software development costs on the statement of cash flows should be based on the determination of technological feasibility and should not be manipulated or distorted by management.
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a project _____ negotiates with users who might have conflicting requirements or want changes that would require additional time or expense. a.coordinator c.manager d.reporter
Answer:
project Manager
Explanation:
I believe the correct answer is project Manager. as he/she has to manage the project.
A project manager negotiates with users who might have conflicting requirements or want changes that would require additional time or expense. They play a crucial role in managing stakeholders' expectations, resolving conflicts, and finding compromises to ensure project success.
The correct answer is "c. manager." A project manager is responsible for overseeing the entire project and ensuring its successful completion. As part of their role, they interact with various stakeholders, including users or clients who have requirements and expectations for the project.
Users may have conflicting requirements or requests that can impact the project's timeline, budget, or scope. The project manager acts as a mediator and negotiator, working with these users to understand their needs, assess the feasibility and impact of their requests, and find solutions that balance the stakeholders' interests with the project's objectives.
The project manager uses effective communication and negotiation skills to engage in discussions with users, managing their expectations, and seeking mutually beneficial outcomes. They analyze the implications of potential changes, considering factors such as time, resources, and costs, and work with the project team to evaluate the feasibility of accommodating user requests.
By negotiating with users, the project manager aims to find a balance between meeting stakeholder needs and ensuring the project's success within the defined constraints. Their role is vital in managing conflicts, facilitating collaboration, and making informed decisions to keep the project on track and achieve the desired outcomes.
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Investigators dealing with youths they suspect may be engaging in cult-related activities should inquire into which of the following?
a. the music the youths listened to
b. whether the youths dabbled in astrology
c. whether the youths played with Ouija boards or tarot cards
d. all of these choices
When investigating youths suspected of engaging in cult-related activities, investigators should inquire into d. all of these choices.
All of the s mentioned— the music the youths listened to, whether they dabbled in astrology, and whether they played with Ouija boards or tarot cards—can provide valuable insights and clues about potential
the youths listen to: Certain music genres or specific bands may be associated with or promote cult-like ideologies or beliefs. Investigating the music preferences of the youths can help identify any potential influence from such sources.
2. Dabbling in astrology: Cults or cult-like groups may incorporate astrology or other forms of pseudoscience into their beliefs or practices. Investigating whether the youths are involved in astrology can provide information about their exposure to potentially manipulative or controlling ideologies.
3. Playing with Ouija boards or tarot cards: Ouija boards and tarot cards are often associated with occult practices and can indicate an interest in or involvement with alternative spiritual or mystical beliefs. Investigating whether the youths engage in these activities can help determine if they are exploring cult-like practices.
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Consider the following: You are a partner in a prestigous audit firm. You have been auditing Shams Co. since 2008. What ethical principle threat may be raised? a. Self-Interest O b. Self-review threat O c. Familiarity threat O d. Advocacy threat
The ethical principle threat that may be raised in the given scenario is the "Familiarity threat" (c).
The familiarity threat arises when a long-standing or close relationship with a client impairs objectivity and professional skepticism. In this case, since the auditing firm has been auditing Shams Co. since 2008, there is a potential risk that the familiarity with the client may compromise the auditor's ability to maintain professional skepticism and independence.
It is important for auditors to maintain an appropriate level of professional distance and objectivity to ensure the integrity and credibility of the audit process. The familiarity threat may arise due to personal relationships, extensive tenure, or overreliance on a client's representations. Auditors must actively manage and mitigate familiarity threats to uphold ethical principles and maintain the necessary independence and objectivity required for conducting high-quality audits.
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Match each of the numbered descriptions with the term or phrase it best reflects. Indicate your answer by
writing the letter for the term or phrase in the blank provided.
A. Audit
B. GAAP
C. Ethics
D. Tax accounting
E. SEC
F. Public accountants
G. Net income
H. IASB
________ 1. An examination of an organization's accounting system and records that adds credibility to financial statements.
________ 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues.
________ 3. An accounting area that includes planning future transactions to minimize taxes paid.
________ 4. Accounting professionals who provide services to many clients.
________ 5. Principles that determine whether an action is right or wrong.
1. Audit is match with the term (A).
2. Net income is match with the term (G).
3. Tax accounting is match with the term (D)
4. Public accountants is match with the term (F)
5. Ethicsis match with the term (C)
1. Audit: An audit refers to the examination of an organization's accounting system and records. It is conducted to verify the accuracy and reliability of financial statements and provide credibility to the information presented.
2. Net income: Net income is the amount of profit earned by a business after deducting all expenses and costs associated with its sales and revenues. It represents the final financial result of the company's operations.
3. Tax accounting: Tax accounting involves planning future transactions and financial activities with the aim of minimizing the amount of taxes paid by a business. It focuses on understanding and applying tax laws and regulations to optimize tax liabilities.
4. Public accountants: Public accountants are accounting professionals who offer their services to multiple clients. They work independently or as part of accounting firms and provide various accounting, auditing, tax, and consulting services to businesses, organizations, and individuals.
5. Ethics: Ethics refers to the principles and standards that guide moral behavior and decision-making. In the context of accounting, ethics play a crucial role in ensuring integrity, objectivity, confidentiality, and professional conduct in financial reporting, auditing, and other accounting practices.
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the demand curve for money shifts to the right when responses the nominal interest rate decreases the nominal interest rate decreases the nominal gross domestic product increases the nominal gross domestic product increases the real gross domestic product decreases the real gross domestic product decreases inflation decreases inflation decreases the velocity of money increases
The demand curve for money shifts to the right when the nominal interest rate decreases, the nominal gross domestic product increases, inflation decreases, or the velocity of money increases.
A decrease in the nominal interest rate leads to a lower opportunity cost of holding money, making money more attractive compared to other assets. This causes individuals and firms to increase their demand for money, shifting the demand curve to the right.
When the nominal gross domestic product increases, there is a greater volume of transactions in the economy, requiring a higher demand for money to facilitate those transactions. As a result, the demand curve for money shifts to the right.
A decrease in inflation reduces the need for individuals and firms to hold larger amounts of money to compensate for rising prices. This leads to a decrease in the demand for money, causing the demand curve to shift to the right.
Finally, an increase in the velocity of money, which refers to the speed at which money circulates in the economy, means that money changes hands more frequently. This implies that a smaller quantity of money is needed to support a given level of economic activity, resulting in a rightward shift of the demand curve for money.
In summary, shifts in the demand curve for money can occur due to changes in the nominal interest rate, nominal gross domestic product, inflation, or the velocity of money. These factors influence individuals and firms' willingness to hold money and their demand for it in the economy.
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What is the zero lower bound? Describe two ways policy makerscould escape the zero lower bound
Zero lower bound is the lowest level interest rates can reach in a given economy. In other words, it's the lower limit below which the central bank cannot reduce interest rates.
If the inflation rate is low or negative, and the economy is in a recession, zero lower bound poses a significant risk to the economy. When interest rates hit the zero lower bound, it becomes tough to put economic policies that require lower interest rates to work since the central bank can no longer reduce rates. The zero lower bound policy impacts an economy negatively as it limits the effectiveness of monetary policies. This can lead to long-lasting recessions, higher unemployment rates, and reduced demand for goods and services. As such, policy-makers need to identify ways to escape the zero lower bound.
Two ways policymakers can do this include:
1. Raising the Inflation Target Inflation target is the average rate at which the central bank aims to maintain inflation. By raising the target, policy-makers can promote a higher inflation rate, hence reducing the likelihood of hitting the zero lower bound. This strategy works because as the inflation rate increases, the interest rate also increases, and the central bank can use monetary policy to control inflation.
2. Quantitative Easing Quantitative easing involves injecting money into the economy to boost economic growth and investment. The central bank buys financial assets such as treasury bills and government bonds from banks to increase the money supply. With more money circulating in the economy, banks can reduce the interest rates they charge for loans.
This allows more people to borrow and invest, boosting economic growth. Quantitative easing, therefore, helps reduce the risk of the zero lower bound while promoting economic growth.
Zero lower bound is the minimum level that interest rates can reach. When an economy is in a recession or experiencing low inflation rates, the central bank usually intervenes by lowering interest rates. However, the zero lower bound makes it difficult for the central bank to reduce interest rates further, and this limits the effectiveness of monetary policies. Hitting the zero lower bound is a significant risk to an economy since it can lead to a long-lasting recession, higher unemployment rates, and reduced demand for goods and services.
To escape the zero lower bound, policy-makers have identified two strategies.
One of the strategies is raising the inflation target. When the central bank increases the inflation target, it promotes a higher inflation rate, which increases the interest rate. As such, policy-makers can use monetary policy to control inflation.
The second strategy is quantitative easing. Quantitative easing involves injecting money into the economy to boost economic growth and investment. By buying financial assets from banks, the central bank increases the money supply, and this allows more people to borrow and invest, hence boosting economic growth. Quantitative easing helps reduce the risk of the zero lower bound while promoting economic growth.
The zero lower bound is the lowest level of interest rates that an economy can reach. When an economy hits the zero lower bound, it becomes tough for the central bank to reduce interest rates, and this limits the effectiveness of monetary policies. To escape the zero lower bound, policy-makers can use two strategies: raising the inflation target or quantitative easing. These strategies are crucial as they help reduce the risk of the zero lower bound while promoting economic growth.
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Which statement accurately describes the reach of Affinity Audiences’ targeting?
It reaches TV-like audiences, based on their lifestyles, interests, and passions.
It reaches people who have the intent to purchase, updated in real time.
It reaches past visitors as they browse network websites and use network apps.
It reaches people while they’re actively browsing, researching, or comparing products and are close to a conversion.
The statement "It reaches people while they're actively browsing, researching, or comparing products and are close to a conversion" accurately describes the reach of Affinity Audiences' targeting.
Affinity Audiences is a targeting feature that allows advertisers to reach specific groups of people based on their interests, behaviors, and online activities. The statement implies that Affinity Audiences targets individuals who are in the consideration or decision-making stage of their customer journey. These individuals are actively engaged in browsing, researching, or comparing products and are more likely to convert or make a purchase. By targeting these audiences, advertisers can effectively reach potential customers who are actively interested in a particular product or service. This targeting strategy can improve the relevance and effectiveness of advertising campaigns, as it focuses on reaching users who are closer to taking action.
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Which of the following statements are true of transactional leaders? O All of the above O Transactional leaders can inspire followers to transcend their own self-interest for the good of the organization O Transactional leaders appeal to followers' ideals and moral values and inspire them to think about problems in new or different ways O Transactional leaders guide followers in the direction of established goals by clarifying role and task requirements
Transactional leadership is a leadership style in which the leader rewards or punishes followers based on performance. This type of leader is often concerned with maintaining the status quo and making sure that things run smoothly.
Which of the following statements are true of transactional leaders?The correct option is: Transactional leaders guide followers in the direction of established goals by clarifying role and task requirements and Transactional leaders can inspire followers to transcend their own self-interest for the good of the organization.
Transactional leaders guide followers in the direction of established goals by clarifying role and task requirements. They use contingent rewards such as incentives and bonuses to motivate followers. They have a clear vision of what they want to achieve, and they know how to get there.
Transactional leaders can inspire followers to transcend their own self-interest for the good of the organization. These leaders promote teamwork, collaboration, and mutual trust to help followers achieve their goals. They are focused on the bigger picture and are not just concerned with their own self-interest.
Transactional leaders appeal to followers' ideals and moral values and inspire them to think about problems in new or different ways. This statement is incorrect because it is a characteristic of transformational leadership, not transactional leadership. In conclusion, statements one and two are true of transactional leaders.
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Which of the following areas represents the consumer surplus from this profit-maximizing monopolist?
a. ABE
b. BCFE
c. EFG
d. ACG
The consumer surplus for a profit-maximizing monopolist can be represented by the difference between the willingness to pay (WTP) of a consumer and the price charged by the monopolist. The following areas represent the consumer surplus from a profit-maximizing monopolist:Area A represents the total amount that consumers are willing to pay for the monopolist's product. Area B represents the revenue earned by the monopolist for selling the product at a given price. Area C represents the producer surplus, which is the profit that the monopolist earns. Area D represents the deadweight loss or the loss of social welfare due to the monopoly pricing power. Area E represents the consumer surplus, which is the benefit that consumers receive by purchasing the product at a price lower than their WTP. Therefore, area E represents the consumer surplus from this profit-maximizing monopolist.The consumer surplus is a measure of the welfare that consumers derive from consuming a good or service. It is the difference between the amount that consumers are willing to pay for the good or service and the actual price they pay. The consumer surplus is an important concept in economics because it helps to measure the efficiency of markets.
Consider a duopoly in which each firm has a best response function given by: 9 = 200 - (1/2)9, where q; is the output of firm i and 9 is the output of the other firm. Suppose the firms form a cartel, whereby each firm agrees to produce one half the monopoly output. In this case, given the other firm colludes, each firm has an incentive to cheat and produce which of the
following output levels?
Select one:
O a. 100
O b. 150
O c. 125
O d. none of the other choices
In the given scenario, a duopoly is there, in which each firm has a best response function. In this scenario, the output levels that firms are supposed to produce in collusion are to be found out.
So, first of all, we find the output levels of the two firms based on their best response function. The best response function of each firm is given by:9 = 200 - (1/2)9Where q;
is the output of firm i and 9 is the output of the other firm.Putting the value of the other firm's output as 9 in the above equation, we get:9 = 200 - (1/2)99 = 100Now, the firms form a cartel in which each firm agrees to produce half of the monopoly output. So, the total output produced by the cartel would be double the monopoly output.
So, the total output produced would be:2 * (100 + 100) = 400The output produced by each firm would be:400 / 2 = 200Now, since each firm has an incentive to cheat and produce more than the other firm, the firm that produces more output would have an advantage in terms of profits.
Therefore, the output levels that firms are most likely to produce are 125 and 125. Thus, the correct answer is option C: 125.
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