In the given consumption function equation, C represents consumption, C0 represents autonomous consumption, MPC represents the marginal propensity to consume, and Yd represents disposable income.
We are given:
C = $4,312.5
MPC = 0.75
Yd = $5,350
Substituting these values into the consumption function equation, we have:
$4,312.5 = C0 + 0.75($5,350)
To find the value of autonomous consumption (C0), we need to isolate it on one side of the equation. Let's solve for C0:
$4,312.5 - 0.75($5,350) = C0
$4,312.5 - $4,012.5 = C0
$300 = C0
Therefore, autonomous consumption (C0) equals $300.00.
So, the correct answer is option C: $300.00.
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Consider the following statement from a (fictional) economist named Primo: ""Central banks should not be allowed to act as lenders of last resort. When they do so they are only wasting public money bailing out insolvent banks"". Discuss the merits of Primo’s point of view.
Primo's viewpoint that central banks should not act as lenders of last resort and that doing so wastes public money bailing out insolvent banks can be debated based on its merits.
While there may be valid concerns about moral hazard and the potential misuse of public funds, there are several reasons why acting as lenders of last resort can be considered necessary and beneficial.
Firstly, during times of financial crisis or systemic stress, the stability of the entire financial system can be at risk. By providing liquidity and support to insolvent banks, central banks can prevent panic and contagion from spreading, which could have severe consequences for the economy and the general public.
Secondly, central banks play a critical role in maintaining overall economic stability. By acting as lenders of last resort, they can help stabilize financial markets, maintain confidence, and prevent severe disruptions in credit flows, which are essential for businesses and individuals to function effectively.
Moreover, the concept of lender of last resort is often accompanied by strict conditions and safeguards to ensure that public funds are not misused and that insolvent banks are held accountable for their actions. Central banks typically impose conditions, such as restructuring or recapitalization plans, to mitigate moral hazard and promote responsible behavior.
In summary, while Primo's concerns about wasting public money and moral hazard are valid, the role of central banks as lenders of last resort is crucial for maintaining financial stability and preventing systemic crises. The implementation of proper safeguards and conditions can help strike a balance between mitigating risks and ensuring the overall health of the economy.
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As your text suggests, sellers alone do not set prices and buyers alone do not set prices. It is the interaction of buyers and sellers that sets prices.
Explain where the market equilibrium occurs.
How do we show equilibrium graphically?
Share an example from your own experience when the market was not in equilibrium for a product or service.
Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium.
Market equilibrium occurs when the price of a good or service balances the quantity demanded by buyers and the quantity supplied by sellers. It is determined by the intersection of the demand and supply curves.Graphical representation of market equilibriumIn graphical representation, the market equilibrium occurs at the point where the demand curve intersects the supply curve.
At this point, the quantity demanded by the buyers equals the quantity supplied by the sellers. At any other point, there would be either a surplus or a shortage.
Example of a product or service when the market was not in equilibriumA few months back, the demand for hand sanitizers increased rapidly due to the COVID-19 pandemic. Many people started buying hand sanitizers in bulk leading to a shortage of hand sanitizers in the market.
Due to the shortage, the sellers increased the prices of hand sanitizers. This caused the market to be out of equilibrium. There was an increase in price, but the quantity demanded was still high, and the quantity supplied was low.
What needed to be done to bring the market back to equilibrium.To bring the market back to equilibrium, the supply of hand sanitizers needed to increase. This could have been done by increasing the production or importing hand sanitizers from other countries. Once the supply had increased, the price of hand sanitizers would have decreased, and the market would have reached equilibrium.
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Case Study A global company, X3T Ltd., is developing a software tool for the travel industry. The project team consists of 22 members located in South Korea and 28 members located in several Canadian
X3T Ltd. must utilize virtual communication tools, establish clear objectives, hold regular team meetings, promote cultural sensitivity, facilitate knowledge sharing, ensure effective leadership, and conduct performance reviews to manage its diverse project team across South Korea and Canada.
Case Study:
X3T Ltd., a global company, is currently working on the development of a software tool for the travel industry. The project team comprises 22 members based in South Korea and 28 members located in various cities across Canada.
With such a diverse team spread across different locations, effective collaboration and communication are essential for the success of the project. To ensure seamless coordination, the company should consider the following strategies:
1. Virtual Communication Tools: Utilize video conferencing platforms, instant messaging, and project management software to facilitate real-time communication and collaboration among team members. This enables regular updates, progress tracking, and effective decision-making.
2. Clear Project Objectives and Roles: Establish clear project objectives and define the roles and responsibilities of each team member. This helps in avoiding confusion, promoting accountability, and ensuring everyone is aligned with the project's goals.
3. Regular Team Meetings: Conduct regular team meetings, both at the regional and cross-regional levels, to discuss project progress, address challenges, and share best practices. These meetings can be held virtually to accommodate the diverse locations of the team members.
4. Cultural Sensitivity and Awareness: Foster an environment of cultural sensitivity and awareness, considering the different cultural norms, values, and communication styles within the team. Encourage open dialogue and respect for diverse perspectives.
5. Efficient Documentation and Knowledge Sharing: Implement a centralized system for documentation and knowledge sharing, ensuring that project-related information, resources, and best practices are accessible to all team members. This promotes consistency, reduces duplication of efforts, and enhances overall project efficiency.
6. Effective Leadership and Team Management: Appoint experienced project managers who can effectively lead and manage the team, providing guidance, support, and motivation to ensure a cohesive and productive working environment.
7. Regular Performance Reviews: Conduct regular performance reviews and feedback sessions to monitor individual and team performance, identify areas for improvement, and recognize achievements. This encourages continuous growth and development within the team.
By implementing these strategies, X3T Ltd. can effectively manage its diverse project team located in South Korea and Canada, fostering collaboration, communication, and successful completion of the software tool for the travel industry.
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Problem 19-1A (Algo) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3
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At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs.
At June 30 Job 5 Job 6 Job 7
Direct materials $ 18,000 $ 34,500 $ 28,500
Direct labor 11,000 17,200 24,000
Overhead applied 5,500 8,600 12,000
Additional Information
Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $7,500; direct labor, $3,300; and applied overhead, $2,400. Job 5 was finished in June.
Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July.
Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months.
Problem 19-1A (Algo) Part 2
2. What is the total cost of direct labor used in June?
The total cost of direct labor used in June is $17,200.
To determine the total cost of direct labor used in June, we need to sum up the direct labor costs for Job 6 and Job 7.
From the given information, the direct labor cost for Job 6 is $17,200, and Job 7 is not yet completed, so there is no direct labor cost for Job 7 in June.
Therefore, the total cost of direct labor used in June is $17,200.
It's important to note that the direct labor cost for Job 5 is not included in the total for June because it was assigned to Job 5 in May, not June. We are specifically calculating the direct labor cost used in June, so only the direct labor costs for jobs started and completed in June are considered.
Direct labor cost represents the wages and salaries paid to the workers directly involved in the production of goods or services. It is an essential component of the total manufacturing cost and is used to calculate the overall cost of production for a specific period.
In this case, the total direct labor cost used in June provides information about the labor expenses incurred during that month. It is an important factor in evaluating the profitability and efficiency of production operations for Ace Roofers in June.
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McConnell Corporation has bonds on the market with 11 years to maturity, a YTM of 6.0 percent, a par value of $1,000, and a current price of $1,196.50. The bonds make semiannual payments. What must th
The coupon rate on the bond must be 4.96%
Given,Face value of bond= $1000
Number of years to maturity=11 years
Semiannual payments= 2 (i.e., every six months
)Price of the bond=$1196.50
Yield to Maturity (YTM) = 6%
First, let us find out the periodic payments for the bond.
Annual coupon payments=Coupon rate * face value
= C * $1000,
where C is the annual coupon rate.
Payment every six months=C/2 * $1000
= $5C * $1000
= 2 * $5C
= $10C
Now, the current price of the bond is given by,
PV of all future cash flows= Payment every six months / (1+ YTM/2) + Payment every six months / (1+ YTM/2)2+ Payment every six months / (1+ YTM/2)3+... + Payment every six months + Face value / (1+ YTM/2)n
Since the bond makes semi-annual payments, we have n = 2 * 11 = 22.
Therefore, the current price of the bond is,
$1196.50 = $10C / (1+ 0.06/2) + $10C / (1+ 0.06/2)2+ $10C / (1+ 0.06/2)3+... + $10C + $1000 / (1+ 0.06/2)22
Using financial calculator or Excel solver function,
we get,Coupon rate (C) = 4.96% approximately.
Thus, the coupon rate on the bond must be 4.96%.
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Following are transactions of Leduc Company:
2020
Dec. 11 Accepted a $18,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account.
31 Made an adjusting entry to record the accrued interest on the Fred Calhoun note.
31 Closed the Interest income account.
2018
Jan. 10 Discounted the Fred Calhoun note at the bank at 7%.
Feb. 10 The Fred Calhoun note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Mar. 5 Accepted a $7,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed.
29 Discounted the Donna Reed note at the bank at 7.5%.
May 7 The Donna Reed note had been received by the bank and paid by Donna Reed.
June 9 Accepted a $9,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller.
Aug. 8 Received payment of the maturity value of the Jack Miller note.
11 Accepted an $11,000, 60-day, 5% note dated this day in granting Roger Addison a time extension on his past-due account.
31 Discounted the Roger Addison note at the bank at 6.5%.
Oct. 12 The Roger Addison note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Nov. 19 Received payment from Roger Addison of the maturity value of his dishonoured note, the fee, and interest on both for 40 days beyond maturity at 5%.
Dec. 23 Wrote off the Fred Calhoun account against Allowance for Doubtful Accounts.
Required:
Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Following are transactions of Leduc Company:
2020
Dec. 11 Accepted a $18,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account.
31 Made an adjusting entry to record the accrued interest on the Fred Calhoun note.
31 Closed the Interest income account.
2018
Jan. 10 Discounted the Fred Calhoun note at the bank at 7%.
Feb. 10 The Fred Calhoun note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Mar. 5 Accepted a $7,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed.
29 Discounted the Donna Reed note at the bank at 7.5%.
May 7 The Donna Reed note had been received by the bank and paid by Donna Reed.
June 9 Accepted a $9,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller.
Aug. 8 Received payment of the maturity value of the Jack Miller note.
11 Accepted an $11,000, 60-day, 5% note dated this day in granting Roger Addison a time extension on his past-due account.
31 Discounted the Roger Addison note at the bank at 6.5%.
Oct. 12 The Roger Addison note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Nov. 19 Received payment from Roger Addison of the maturity value of his dishonoured note, the fee, and interest on both for 40 days beyond maturity at 5%.
Dec. 23 Wrote off the Fred Calhoun account against Allowance for Doubtful Accounts.
Required:
Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Based on the provided information, let's prepare the general journal entries to record the transactions of Leduc Company:
2020
Dec. 11: Accepted a $18,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account.
Debit: Notes Receivable - Fred Calhoun $18,000
Credit: Accounts Receivable - Fred Calhoun $18,000
Dec. 31: Made an adjusting entry to record the accrued interest on the Fred Calhoun note.
Debit: Interest Receivable - Fred Calhoun $180 ([$18,000 * 0.06 * 60]/365)
Credit: Interest Income $180
Dec. 31: Closed the Interest income account.
Debit: Interest Income $180
Credit: Income Summary $180
2018
Jan. 10: Discounted the Fred Calhoun note at the bank at 7%.
Debit: Cash $17,820 ([$18,000 - $180] * (1 - 0.07))
Debit: Discount on Notes Receivable $180
Credit: Notes Receivable - Fred Calhoun $18,000
Feb. 10: The Fred Calhoun note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Debit: Notes Receivable - Fred Calhoun $18,000
Debit: Discount on Notes Receivable $180
Debit: Loss on Dishonored Note $30
Credit: Cash $18,150 ($18,000 + $30 + $120)
Mar. 5: Accepted a $7,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed.
Debit: Notes Receivable - Donna Reed $7,500
Credit: Accounts Receivable - Donna Reed $7,500
Mar. 29: Discounted the Donna Reed note at the bank at 7.5%.
Debit: Cash $7,372.50 ([$7,500 * (1 - 0.055)] * (1 - 0.075))
Debit: Discount on Notes Receivable $127.50 ($7,500 - $7,372.50)
Credit: Notes Receivable - Donna Reed $7,500
May 7: The Donna Reed note had been received by the bank and paid by Donna Reed.
Debit: Cash $7,500
Credit: Notes Receivable - Donna Reed $7,500
June 9: Accepted a $9,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller.
Debit: Notes Receivable - Jack Miller $9,750
Credit: Accounts Receivable - Jack Miller $9,750
Aug. 8: Received payment of the maturity value of the Jack Miller note.
Debit: Cash $9,750
Credit: Notes Receivable - Jack Miller $9,750
Aug. 11: Accepted an $11,000, 60-day, 5% note dated this day in granting Roger Addison a time extension on his past-due account.
Debit: Notes Receivable - Roger Addison $11,000
Credit: Accounts Receivable - Roger Addison $11,000
Aug. 31: Discounted the Roger Addison note at the bank at 6.5%.
Debit: Cash $10,818.50 ([$11,000 * (1 - 0.05)] * (1 - 0.065))
Debit: Discount on Notes Receivable
$181.50 ($11,000 - $10,818.50)
Credit: Notes Receivable - Roger Addison $11,000
Oct. 12: The Roger Addison note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Debit: Notes Receivable - Roger Addison $11,000
Debit: Discount on Notes Receivable $181.50
Debit: Loss on Dishonored Note $30
Credit: Cash $11,211.50 ($11,000 + $30 + $181.50)
Nov. 19: Received payment from Roger Addison of the maturity value of his dishonoured note, the fee, and interest on both for 40 days beyond maturity at 5%.
Debit: Cash $11,211.50
Credit: Notes Receivable - Roger Addison $11,000
Credit: Discount on Notes Receivable $181.50
Credit: Interest Receivable - Roger Addison $29 ($11,000 * 0.05 * 40/365)
Dec. 23: Wrote off the Fred Calhoun account against Allowance for Doubtful Accounts.
Debit: Allowance for Doubtful Accounts $18,000
Credit: Accounts Receivable - Fred Calhoun $18,000
These are the general journal entries to record the transactions of Leduc Company. It's important to note that the amounts used in the entries are based on the given information and rounded to two decimal places. Actual amounts may vary based on specific calculations and accounting policies.
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If a put option is exercised, the writer of the option will ____ the underlying asset at the ____.
a. buy; strike price
b. sell; strike price
c. buy; stock market price
d. sell; stock market price
e. buy; put premium
The writer of the put option will be required to purchase the underlying asset at the strike price when a put option is exercised. An option contract allows the owner the right, but not the obligation to buy or sell the underlying asset at a specific price (strike price) on or before a certain date.
A put option is a financial contract between two parties where the buyer has the right, but not the obligation, to sell an agreed-upon quantity of a financial asset at a predetermined price (strike price) to the option seller on or before a specific date.A put option provides protection to the holder against the drop in the underlying asset's value.
The writer (seller) of the put option has the obligation to buy the underlying asset at the strike price if the option is exercised. If the stock price drops below the strike price, the option owner would likely exercise the option. When this happens, the option seller will be forced to buy the stock from the owner at the strike price.In conclusion, if the put option is exercised, the writer (seller) of the option will have to buy the underlying asset at the strike price.
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your thrift account is expected to generate a $2,000 profit at the end of year 1, and profit will increase by 8% per year through year 5. If you can earn 12% annual interest compounded annually, what is the present value of all your profits over the next 5 years? SHOW A "ROUGH" CASH FLOW DIAGRAM
The present value of all your profits over the next 5 years is approximately $8,814.88. To calculate the present value of all your profits over the next 5 years, we need to discount each year's profit back to the present using the annual interest rate of 12% compounded annually.
Here is the cash flow diagram representing the profits over the next 5 years:
Year 1: $2,000
Year 2: $2,000 * (1 + 8%) = $2,160
Year 3: $2,160 * (1 + 8%) = $2,332.80
Year 4: $2,332.80 * (1 + 8%) = $2,519.46
Year 5: $2,519.46 * (1 + 8%) = $2,721.33
To calculate the present value, we will discount each year's profit back to the present. The formula to calculate the present value of a future cash flow is:
Present Value = Cash Flow / (1 + Interest Rate)^n where n is the number of years.
Calculating the present value for each year:
PV1 = $2,000 / (1 + 12%)^1 = $1,785.71
PV2 = $2,160 / (1 + 12%)^2 = $1,773.62
PV3 = $2,332.80 / (1 + 12%)^3 = $1,762.27
PV4 = $2,519.46 / (1 + 12%)^4 = $1,751.63
PV5 = $2,721.33 / (1 + 12%)^5 = $1,741.65
The present value of all your profits over the next 5 years is the sum of the present values:
Present Value = PV1 + PV2 + PV3 + PV4 + PV5
Present Value = $1,785.71 + $1,773.62 + $1,762.27 + $1,751.63 + $1,741.65
Present Value = $8,814.88
Therefore, the present value of all your profits over the next 5 years is approximately $8,814.88.
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Leslie, who is 18 years old, has just completed high school. He has made the decision to work full- time rather than continuing on with his education. His parents, Michael and Melissa, were saddened to learn of Leslie's decision particularly since they have struggled to set aside funds in an RESP for him for the past several years. The RESP is currently valued at $62,000 and is comprised of: $43,800 in principal contributions, $4,200 in CESGS and $14,000 in investment returns (on both the CESG and principal contributions). Assuming, Michael and Melissa do not have any more RRSP contribution room for this year, when they terminate the RESP, what statement is true? O a) Michael and Melissa must include their principal contributions to the RESP as part of their total incomes for the year; this amount will be subject to taxation at their respective marginal tax rates. Ob) The $14,000 in investment earnings can be rolled over to either Michael or Melissa's RRSP as an accumulated income payment. Oc) Michael and Melissa must include the $14,000 in investment earnings as part of their total income for the year. In addition, a 20% penalty will apply. Od) Michael and Melissa can withdraw the CESGS paid into the RESP as an education assistance payment provided it is used towards the education of a blood relative of Leslie.
Leslie, who is 18 years old, has just completed high school. He has made the decision to work full- time rather than continuing on with his education. His parents, Michael and Melissa, were saddened to learn of Leslie's decision particularly since they have struggled to set aside funds in an RESP for him for the past several years.
The RESP is currently valued at $62,000 and is comprised of: $43,800 in principal contributions, $4,200 in CESGS and $14,000 in investment returns (on both the CESG and principal contributions). Assuming, Michael and Melissa do not have any more RRSP contribution room for this year, when they terminate the RESP, what statement is true?The correct option is
(a) Michael and Melissa must include their principal contributions to the RESP as part of their total incomes for the year; this amount will be subject to taxation at their respective marginal tax rates.
A Registered Education Savings Plan (RESP) is a special savings account that is registered with the Canadian government to encourage families to save for their children's post-secondary education by offering tax-free investment returns.
When an RESP is terminated, the accumulated earnings on both the contributions and the Canadian Education Savings Grant (CESG) must be withdrawn. The contributions to the RESP account are not taxable when withdrawn, but the accumulated earnings and grants paid out are taxable in the hands of the beneficiary.
If Michael and Melissa terminate the RESP, then they must include their principal contributions to the RESP as part of their total incomes for the year. This amount will be subject to taxation at their respective marginal tax rates. Therefore, option (a) is true.
The $14,000 in investment earnings cannot be rolled over to either Michael or Melissa's RRSP as an accumulated income payment (Option b is not true). Michael and Melissa must include the $14,000 in investment earnings as part of their total income for the year if they terminate the RESP. In addition, a 20% penalty will apply (Option c is incorrect).
Michael and Melissa cannot withdraw the CESGS paid into the RESP as an education assistance payment provided it is used towards the education of a blood relative of Leslie (Option d is incorrect).
Therefore, option (a) is the correct statement.
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Discuss the following statement:
"Institutional equilibria mean that underdeveloped
countries will never be advanced economies"
According to this statement, institutional equilibria mean that underdeveloped countries will never become advanced economies because their institutional equilibria prevent them from doing so, the argument is based on the assumption that the institutional equilibria in underdeveloped countries are fundamentally flawed, and that these flaws prevent them from becoming advanced economies.
Institutional equilibria refers to the balance of power between institutions within a society. It is based on the idea that the rules and norms governing a society create an equilibrium that is difficult to change. These flaws might include corruption, political instability, lack of property rights, and weak rule of law. There is some truth to this argument, it is true that many underdeveloped countries have institutional equilibria that are not conducive to economic growth.
However, it is also true that many of these countries are making progress in overcoming these obstacles. They are working to strengthen their institutions, promote transparency, and create a more favorable environment for business and investment. Therefore, while institutional equilibria can be a barrier to economic development, they are not an insurmountable barrier. Underdeveloped countries can overcome their institutional weaknesses and become advanced economies if they take the necessary steps to reform their institutions.
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on+july+4,+cullumber's+restaurant+accepts+a+visa+card+for+a+$800+dinner+bill.+visa+charges+a+4%+service+fee.
To calculate the total amount charged by Visa, including the 4% service fee, for the $800 dinner bill,
we can follow these steps:
1. Calculate the service fee charged by Visa:
Service Fee = 4% of $800
Service Fee = 0.04 * $800
Service Fee = $32
2. Determine the total amount charged by Visa:
Total Amount Charged = Dinner bill + Service Fee
Total Amount Charged = $800 + $32
Total Amount Charged = $832
Therefore, Visa would charge a total of $832, which includes the $800 dinner bill and the 4% service fee, for the transaction at Cullumber's Restaurant on July 4th.
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On July 4, Cullumber's Restaurant accepts a Visa card for a $800 dinner bill. Visa charges a 4% service fee?
Nafal Contracting and Trading Co. LLC is providing specialized services in the field of building, concrete repair, corrosion protection, insulation work and the supply and erection of scaffolding. The company management approached you to assess the effectiveness of the internal control system. a) What will be the objectives of assessing the internal control system of the company? b) Discuss steps you will follow to assess the internal control system of the company?
The objectives of assessing the internal control system of Nafal Contracting and Trading Co.
LLC would be:Identify weaknesses and vulnerabilities: The assessment aims to identify any weaknesses or vulnerabilities in the internal control system that could expose the company to risks, such as fraud, errors, or inefficiencies.Evaluate compliance: The assessment will determine the extent to which the internal control system aligns with applicable laws, regulations, and industry best practices. This includes assessing whether the company is adhering to its own policies and procedures.Safeguard assets: The assessment will ensure that the internal control system effectively safeguards the company's assets, including financial resources, physical assets, and intellectual property, from theft, misuse, or damage.Enhance operational efficiency: The assessment will evaluate the effectiveness of the internal control system in promoting operational efficiency and effectiveness. It will identify any bottlenecks or inefficiencies that may hinder the company's ability to achieve its objectives.Ensure reliable financial reporting: The assessment will focus on the internal controls related to financial reporting, ensuring accuracy, completeness, and timeliness of financial information. This objective is crucial for maintaining transparency and integrity in financial reporting.
To assess the internal control system of Nafal Contracting and Trading Co. LLC, the following steps can be followed:Understand the internal control framework: Familiarize yourself with the company's internal control framework, policies, and procedures. This includes reviewing relevant documentation, such as internal control manuals, process flows, and organizational charts.Identify control objectives and risks: Determine the key control objectives for each functional area, such as building, concrete repair, corrosion protection, insulation work, and scaffolding. Identify the associated risks that could affect the achievement of these objectives.Evaluate control design: Assess the design of the internal controls by reviewing the segregation of duties, authorization processes, documentation requirements, and access controls. This involves analyzing whether controls are properly designed to mitigate identified risks.Test control effectiveness: Perform testing procedures to evaluate the operating effectiveness of the internal controls. This can include reviewing transactional data, conducting interviews with employees, and performing sample testing to verify compliance with control procedures.
Document findings and recommendations: Document the assessment findings, including any weaknesses or deficiencies identified in the internal control system. Provide recommendations for improvement, such as implementing additional controls, modifying existing procedures, or enhancing employee training.
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walt jr. is composing a song and wants to protect it from being copied. which intellectual property law would best protect walt jr's song?
Walt Jr. is composing a song and wants to protect it from being copied. Copyright Law would best protect Walt Jr.'s song.
Copyright law is a type of intellectual property law that protects original works of authorship, such as books, music, movies, and software. It grants exclusive rights to the creator of an original work and provides legal protection against unauthorized copying, distribution, and public performance of the work.
The protection provided by copyright law is automatic, meaning that as soon as the work is created, it is automatically protected. Copyright protection provides the owner with a bundle of exclusive rights, including the right to reproduce, distribute, and display the work. The term of protection for copyrighted work varies depending on the type of work. Generally, the term lasts for the life of the author plus a certain number of years after their death.
By obtaining copyright protection, Walt Jr. would have the exclusive right to reproduce his song, create derivative works based on it, distribute copies of it, and publicly perform or display it. This would enable him to control the use of his song and take legal action against anyone who infringes on his rights by copying or using his work without permission.
To obtain copyright protection, Walt Jr. should consider registering his song with the appropriate copyright office in his country. While copyright protection generally exists automatically upon the creation of an original work, registering the copyright provides additional legal benefits and evidence of ownership, making it easier to enforce his rights in case of infringement.
It's worth noting that copyright protection typically covers the expression of ideas, not the underlying concepts or facts. So, if Walt Jr.'s song includes unique lyrics, melody, and arrangement, copyright law would be the most suitable intellectual property law to protect his creation.
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The mean monthly rent of students at Oxnard University is $840 with a standard deviation of $232.
(a) John’s rent is $1,325. What is his standardized z-score? (Round your answer to 3 decimal places.)
z
(b) Is John’s rent an outlier?
Yes
No
(c) How high would the rent have to be to qualify as an outlier?
John’s rent would have to be $ or higher to be considered an outlier.
The standardized z-score of John's rent is 1.973.(b) John's rent is not an outlier. The answer is No. (c) John's rent would have to be $1,536 or higher to be considered an outlier.
(a) The standardized z-score of John's rent, which is $1,325, can be calculated as follows:z = (x - μ) / σWhere, x = John's rent, μ = mean rent = $840, and σ = standard deviation = $232.z = (1,325 - 840) / 232z = 1.973Therefore, John's standardized z-score is 1.973, rounded to 3 decimal places.
(b) To determine whether John's rent is an outlier or not, we need to compare his z-score with a certain threshold value. Generally, any z-score beyond 3 in absolute value is considered an outlier. Since John's z-score is 1.973, which is less than 3 in absolute value, his rent is not an outlier. Therefore, the answer is No.
(c) To qualify as an outlier, John's rent would have to be $1,536 or higher. This value is calculated as follows:x = μ + 3σWhere, x = threshold value for outliers, μ = mean rent = $840, and σ = standard deviation = $232.x = 840 + 3(232)x = 840 + 696x = 1,536Therefore, John's rent would have to be $1,536 or higher to be considered an outlier. Hence, the answer is $1,536.
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Do
you know any company or organization fit the characteristics of any
of the four types in OCAI? Please describe it.
One company that fits the characteristics of Clan Culture in OCAI is Googgle.
Googgle is known for promoting a collaborative and employee-focused environment, where the focus is on employee engagement and empowerment.
Their approach is to treat their employees as family members and encourage them to take on new challenges and tasks to help them grow both professionally and personally.
Employees at Googgle are given a high degree of autonomy, which allows them to work independently and make decisions on their own, which in turn leads to high levels of motivation and productivity.
Googgle is also known for its innovative culture and risk-taking attitude, which aligns with the entrepreneurial and innovative traits that are typically associated with Clan Culture.
In conclusion, Googgle fits the characteristics of Clan Culture in OCAI as it is employee-focused, collaborative, and promotes innovation and risk-taking.
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On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $21 per share. On March 1, a dividend of $3 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? b. What is the dividend paymeny c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $15 per share? d. What is the value of your account on April 1?
a. The proceeds from the short sale (net of commission) amount to $2,099.50. b. The dividend payment received is $300. c. The total cost, including commission, to cover the short sale by buying the stock at a price of $15 per share is $1,551.50. d. The value of the account on April 1 is $547.
a. To calculate the proceeds from the short sale (net of commission), we start with the sale price of $21 per share. Since you sold 100 shares, the total sale amount is $2,100. Subtracting the commission of $0.50 per share (100 shares * $0.50 = $50), the net proceeds amount to $2,050. Therefore, the proceeds from the short sale (net of commission) are $2,099.50 ($2,050 + $49.50).
b. The dividend payment received is given as $3 per share, and since you sold 100 shares short, the dividend payment amounts to $300 ($3 * 100).
c. To calculate the total cost, including commission, to cover the short sale by buying the stock at $15 per share, we multiply the buy price by the number of shares, which gives $1,500 (100 shares * $15). Adding the commission of $0.50 per share for the buy transaction (100 shares * $0.50 = $50), the total cost including commission is $1,550. Therefore, the total cost, including commission, to cover the short sale is $1,551.50 ($1,550 + $1).
d. The value of the account on April 1 can be calculated by subtracting the total cost, including commission, from the proceeds from the short sale. Therefore, the value of the account on April 1 is $547 ($2,099.50 - $1,551.50).
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Presented below are the components in determining cost of goods sold.
Determine the missing amounts.
Beginning Inventory Purchases Costs of Goods available for sale Ending Inventory Cost of Goods sold
$84,100 $101,500 $112,000
$53,100 $116,000 $37,000 $115,000 $156,000 $30,500
The missing amounts are: Ending Inventory = $30,500 and Cost of Goods Sold = $155,100.
The cost of goods sold formula determines the cost of goods sold, and includes the beginning inventory, the cost of goods purchased, and the cost of goods available for sale.
To determine the missing amounts, we use the formula Cost of goods available for sale - ending inventory = cost of goods sold.
Beginning Inventory = $84,100
Purchases = $101,500
Cost of goods available for sale = $84,100 + $101,500
= $185,600
Ending Inventory = $30,500
Cost of goods sold = $185,600 - $30,500 = $155,100
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Styles 9-10 (11--12--13-14-15-16 -17 En QUESTION 2: a) As a newly appointed IT auditor for a financial institution, describe four (4) techniques you will adopt to understand the control environment 10
Styles 9-10 (11--12--13-14-15-16 -17 En relates to the APA citation style. However, as per the given question, the newly appointed IT auditor for a financial institution must adopt four techniques to understand the control environment.
Four techniques that the IT auditor should adopt to understand the control environment are listed below: Risk assessment: The IT auditor should review the institution's risk assessment methodologies to understand how the risks are identified, assessed, and addressed.Internal Controls: The IT auditor should review internal controls that are in place within the organization. This will help the IT auditor identify the areas where controls are not effective, and new controls are needed.
Information and Communication: The IT auditor should understand how information flows within the institution. This will help the IT auditor identify the key individuals within the organization who are responsible for ensuring that information is accurate, timely, and complete. It will also help the IT auditor identify the communication channels that exist within the organization. Training and Awareness: The IT auditor should understand the training and awareness programs that exist within the institution. This will help the IT auditor identify any gaps in the training programs and identify opportunities for improving employee awareness of internal controls.
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You have been entrusted with the task of training entrepreneurs under a special program to create young ethical entrepreneurs. Select any ONE (1) legal and any ONE (1) financial condition that entrepreneurs must be aware of to achieve a data driven enterprise. Prepare a summary of your training in not more than 1000 words.
In order to achieve a data driven enterprise, entrepreneurs must be aware of General Data Protection Regulation which is a legal condition, and economic value of data which is a financial condition.
As an entrepreneur, one must be aware of the legal and financial conditions to achieve a data-driven enterprise. Following are one legal and one financial condition that an entrepreneur must know to create young ethical entrepreneurs.
Legal Condition: GDPR or General Data Protection Regulation is a legal requirement that every entrepreneur must know and follow. It's a regulation in the EU law on data protection and privacy. GDPR improves and unifies data privacy rights of the people of the European Union, making it easier for businesses to understand the legal requirements for conducting business in the European Union.Financial Condition: One of the critical financial conditions that entrepreneurs must be aware of is the economic value of data, which is essential to a data-driven company. Economic value is determined by the data's usefulness to the business, either by allowing it to enhance its services, provide insights into customer behavior, or improve operations. Data monetization refers to the process of generating revenue from data that a business collects, processes, and analyzes.Therefore, an entrepreneur must be aware of these conditions to achieve a data-driven enterprise.
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lease answer asap, will thumbs up. When a per unit tax is imposed on the sale of a product of a uniform or single price monopolist with a linear downward sloping demand curve and a MC that is upward or downward sloping; the new eguilibrium price will be than the old equilibrium price and the new equilibrium quantity will be -than the old equilibrium quantity O higher, higher O higher, lower. O None of the other alternatives are correct O lower,higher
When a per-unit tax is imposed on the sale of a product of a uniform or single-price monopolist with a linear downward-sloping demand curve and an MC that is upward or downward-sloping, the new equilibrium price will be higher than the old equilibrium price, and the new equilibrium quantity will be lower than the old equilibrium quantity.
Equilibrium refers to a state of balance. When supply equals demand, the economy is in equilibrium. At equilibrium, the market is at rest, with no incentives for buyers or sellers to alter their buying or selling habits. The diagram below illustrates the new equilibrium position after the imposition of the per-unit tax: Equilibrium and per-unit tax:In the above graph, the monopolist's demand curve has a linear downward slope, and the MC curve is upward sloping. The monopolist's profit-maximizing price and quantity would be Q1 and P1 before the per unit tax is imposed. On the demand curve, the new equilibrium price after the imposition of a per unit tax is represented by P2. The tax, which is the distance between P2 and P1, will be paid entirely by the buyer since the monopolist's marginal cost has not altered.
The monopolist's new revenue is the region ABCK, which is equal to the amount paid by the buyer plus the tax paid to the government. When the monopolist imposes the tax, the price increases from P1 to P2. As a result, the quantity demanded decreases from Q1 to Q2. This, in turn, lowers the equilibrium quantity, resulting in a lower equilibrium quantity than the original one.
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How do we make the best use of the available resources? (500 word)
Sustainability should be a key word when you are allocating resources.
What is resource allocation?Establish your aims and objectives out front. Prioritize the essential resources needed to achieve those objectives according to their impact and importance. By doing this, you can be sure that resources are assigned to tasks that complement your strategic priorities.
Resources should be distributed according to the demands and specifications of each task and project. When allocating human resources, take into account the accessibility, abilities, and knowledge of certain people or groups. Aim to maximize resource usage and reduce waste when allocating non-human resources like tools, money, or technology.
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Which of the following statements is false?
Group of answer choices
Regular C corporations cannot offset passive losses against active income.
Personal service corporations cannot offset passive losses against active income and portfolio income.
Closely-held corporations cannot offset passive losses against portfolio income.
Closely-held corporations can offset passive losses against active income.
The statement that is false is: Closely-held corporations cannot offset passive losses against portfolio income (Option C)..
Closely-held corporations are allowed to offset passive losses against active income, which means they can use passive losses to reduce the taxes owed on their active business income. However, they cannot offset passive losses against portfolio income, such as interest, dividends, or capital gains from investments. This restriction is specific to closely-held corporations and does not apply to regular C corporations, which can offset passive losses against active income. Personal service corporations also cannot offset passive losses against active income and portfolio income. Therefore, the false statement is that closely-held corporations cannot offset passive losses against portfolio income.
Option C is the correct answer.
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Which one of the following statements is NOT true?
A)The airway bill is usually non-negotiable.
B)Air carrier can claim exemption for damage of good during the transit based on force majeure.
C)Air carrier can claim exemption for damages caused by delay based on act of war.
D)Air carrier cannot claim navigation fault for exemption.
The statement which is not true is D) Air carrier cannot claim navigation fault for exemption.
The airway bill is an essential document that is used to identify the shipment and identify the cargo. It is a receipt for the goods and contains information about the origin, destination, route of the cargo, and other details. The airway bill is a non-negotiable document that cannot be sold or transferred to another party. It is a document that proves ownership of the goods.Air carriers can claim exemption for damages caused by delay based on act of war. War is an unforeseeable circumstance that is beyond the control of the carrier, and therefore, the carrier cannot be held responsible for any damages caused by delay. However, air carriers cannot claim exemption for navigation faults. Navigation faults are errors made by the carrier while transporting the cargo. These can include delays, wrong routing, or even lost cargo. The carrier is responsible for any damages caused by these faults.The air carrier can claim exemption for damages of good during transit based on force majeure. Force majeure is an unforeseeable circumstance that is beyond the control of the carrier. This can include natural disasters, strikes, or even acts of terrorism. The carrier cannot be held responsible for any damages caused by force majeure.
In conclusion, the statement which is not true is D) Air carrier cannot claim navigation fault for exemption. Navigation faults are errors made by the carrier while transporting the cargo. The carrier is responsible for any damages caused by these faults.
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If a tax of $1 a can is imposed on the buyers of sugary drinks, the demand for sugary drinks___ and the price that buyers pay.
A. decreases; rises by more than $1 a can
B. doesn't change; doesn't change
C. decreases; rises by less than $1 a can
D. doesn't change; rises by $1 a can
If a tax of $1 a can is imposed on the buyers of sugary drinks, the demand for sugary drinks decreases and the price that buyers pay rises by less than $1 a can. Correct option is C.
An excise tax is the tax imposed on a particular commodity by the government. The excise tax can be paid by the manufacturer or producer of the commodity or passed on to the consumer. In this case, a tax of $1 a can is imposed on the buyers of sugary drinks.
The tax falls on the buyers or consumers, and this means that the tax is included in the price paid by the buyers. The imposition of the tax means that the price paid by the buyers of sugary drinks increases. The increase in the price paid by buyers is by an amount that is less than $1 a can.
The exact amount by which the price increases will depend on the price elasticity of demand for sugary drinks. The higher the price elasticity of demand for sugary drinks, the lower the increase in the price paid by buyers. The imposition of a tax on sugary drinks reduces the demand for sugary drinks.
Consumers are likely to switch to substitutes like water, fruit juice, or tea. The extent to which the demand for sugary drinks reduces will depend on the price elasticity of demand for sugary drinks. The higher the price elasticity of demand for sugary drinks, the greater the reduction in the quantity of sugary drinks demanded by consumers.
Therefore, the demand for sugary drinks decreases and the price that buyers pay increases by less than $1 a can. The answer is option C.
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TRUE / FALSE. "X1 is an inferior good. If the price of X1
increases, the substitution effect will cause the quanity of
X1 purchased to decrease. true or false?"
False. If X1 is an inferior good and its price increases, the substitution effect would typically cause the quantity of X1 purchased to increase rather than decrease. This is because as the price of X1 increases, consumers tend to switch to relatively cheaper substitute goods, leading to a decrease in the consumption of X1.
The income effect, on the other hand, may result in a decrease in the quantity of X1 purchased due to the decrease in purchasing power resulting from the price increase.
However, the substitution effect generally dominates for inferior goods, leading to an overall increase in the quantity demanded of the inferior good when its price rises.
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1.) In 2020, Greg Goodrich had taxable income of $100,000. This amount included short-term capital losses of $1,000 and long-term capital losses of $12,000. Greg had no other capital transactions in prior years. What is Greg’s capital loss carryover to 2021?
a.) $5,000
b.) $7,000
c.) $8,000
d.) $10,000
e.) $13,000
To determine Greg's capital loss carryover to 2021, we need to calculate the allowable capital loss deduction for the current year and then carry over any unused losses to the next year.
In 2020, Greg had short-term capital losses of $1,000 and long-term capital losses of $12,000. The maximum allowable capital loss deduction for the year is $3,000 for individuals ($1,500 for married individuals filing separately).
Since Greg's total capital losses exceed the maximum allowable deduction, we can deduct the maximum allowable amount and carry over the remaining losses to the next year.
First, we deduct the maximum allowable capital loss deduction from Greg's total capital losses:
$1,000 (short-term) + $12,000 (long-term) = $13,000
Maximum allowable deduction: $3,000
$13,000 - $3,000 = $10,000
Therefore, Greg's capital loss carryover to 2021 is $10,000.
Answer: d.) $10,000
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WACC: Determine the weighted average cost of capital for a firm given the following information: (10 pts.) A corporation has 20,000 bonds outstanding with a 8% annual coupon rate, 12 years to maturity, a $1,000 face value, and a $1,100 market price. Assume semiannual coupon payments. The company's 60,000 shares of preferred stock pay a $1.50 annual dividend, and sell for $20 per share. The company's 1,200,000 shares of common stock sell for $25 per share and have a beta of 1.15. The risk-free rate is 3%, and the market return is 13%. Assuming a 21% tax rate, what is the company's WACC? WACC = (E/V) x R4+ (P/V) x Rp + (D/V) x R. (1-T)
To calculate the weighted average cost of capital (WACC), we need to determine the cost of each component of the company's capital structure and weight them according to their respective proportions.
Given:
Bonds:
Number of bonds (N) = 20,000
Annual coupon rate (C) = 8% (coupon payment as a percentage of face value)
Years to maturity (T) = 12 years
Face value (F) = $1,000
Market price (P) = $1,100
Preferred Stock:
Number of shares (N) = 60,000
Dividend per share (D) = $1.50
Market price (P) = $20
Common Stock:
Number of shares (N) = 1,200,000
Market price (P) = $25
Beta (β) = 1.15
Risk-free rate (Rf) = 3%
Market return (Rm) = 13%
Tax rate (T) = 21%
First, we calculate the cost of debt:
Coupon payment per bond (C) = 8% * $1,000 / 2 = $40 (since it is a semiannual coupon payment)
Current yield to maturity (YTM) = ($40 / $1,100) * 2 = 0.0727 or 7.27%
After-tax cost of debt (Rd) = YTM * (1 - Tax rate) = 0.0727 * (1 - 0.21) = 0.0575 or 5.75%
Next, we calculate the cost of preferred stock:
Dividend per share (D) = $1.50
Market price per share (P) = $20
Cost of preferred stock (Rp) = D / P = $1.50 / $20 = 0.075 or 7.5%
Finally, we calculate the cost of equity using the Capital Asset Pricing Model (CAPM):
Risk-free rate (Rf) = 3%
Market return (Rm) = 13%
Beta (β) = 1.15
Cost of equity (Re) = Rf + β * (Rm - Rf) = 0.03 + 1.15 * (0.13 - 0.03) = 0.1245 or 12.45%
Now we can calculate the WACC:
Weight of debt (D/V) = (20,000 * $1,000) / ($20 * 60,000 + $25 * 1,200,000 + $20 * 60,000) = 0.115
Weight of preferred stock (P/V) = ($20 * 60,000) / ($20 * 60,000 + $25 * 1,200,000 + $20 * 60,000) = 0.022
Weight of common stock (E/V) = ($25 * 1,200,000) / ($20 * 60,000 + $25 * 1,200,000 + $20 * 60,000) = 0.863
WACC = (E/V) * Re + (P/V) * Rp + (D/V) * Rd * (1 - T)
WACC = 0.863 * 0.1245 + 0.022 * 0.075 + 0.115 * 0.0575 * (1 - 0.21)
WACC ≈ 0.107 + 0.002 + 0.0523
WACC ≈ 0.1613 or 16.13%
Therefore, the company's weighted
average cost of capital (WACC) is approximately 16.13%.
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Suppose the exchange rate at the start of the year was £.6525/$. Since the start of the year, the pound has appreciated 6%. What is the exchange rate today? Keep the $ as the base currency and the £ as the terms currency. (4 decimal places like the original exchange rate)
Exchange Rate today is £0.69165/$.
To calculate the exchange rate today, we need to apply the 6% appreciation to the original exchange rate of £0.6525/$.
To determine the appreciation, we can use the formula:
Appreciation = Original Value x Rate of Appreciation
Applying the values:
Appreciation = £0.6525/$ x 0.06
Appreciation = £0.03915/$
To find the exchange rate today, we need to add the appreciation to the original exchange rate:
Exchange Rate today = Original Exchange Rate + Appreciation
Exchange Rate today = £0.6525/$ + £0.03915/$
Exchange Rate today = £0.69165/$
Rounding to 4 decimal places, the exchange rate today is £0.6917/$.
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6. All of the following are responsibilities of the Fed EXCEPT:
A) control the monetary base. B) mint bills and coins.
C oversee and regulate the banking system.
D) set the interest (referred to as the discount) rate.
The correct answer is B) Mint bills and coins, as that responsibility lies with the United States Department of the Treasury.
A) Control the monetary base: This is indeed one of the primary responsibilities of the Fed. It conducts monetary policy to influence the money supply and ensure price stability and economic growth.
B) Mint bills and coins: This responsibility falls under the purview of the United States Department of the Treasury, not the Federal Reserve. The Treasury is responsible for coinage and currency production.
C) Oversee and regulate the banking system: This is another important responsibility of the Fed. It supervises and regulates banks to maintain the stability and soundness of the financial system.
D) Set the interest (referred to as the discount) rate: This is also a responsibility of the Fed. It sets the discount rate, which influences borrowing costs and helps manage the overall monetary policy.
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3 20 points Skipped Book Print References On October 10, the stockholders' equity of Sherman Systems appears as follows. Common stock-$10 par value, 85,000 shares authorized, issued, and outstanding P
a. Journal entry to record the purchase of 5,900 shares of common stock:
Date: October 11
Debit: Treasury Stock (common stock) - $34 per share x 5,900 shares = $200,600
Credit: Cash - $34 per share x 5,900 shares = $200,600
b. Journal entry to record the sale of 1,225 treasury shares:
Date: November 1
Debit: Cash - $40 per share x 1,225 shares = $49,000
Credit: Treasury Stock (common stock) - $34 per share x 1,225 shares = $41,350
Credit: Paid-in Capital in Excess of Par Value, Common Stock - ($40 - $34) per share x 1,225 shares = $7,650
c. Journal entry to record the sale of all remaining treasury shares:
Date: November 25
Debit: Cash - $29 per share x (5,900 - 1,225) shares = $146,525
Credit: Treasury Stock (common stock) - $34 per share x (5,900 - 1,225) shares = $166,375
Credit: Paid-in Capital in Excess of Par Value, Common Stock - ($34 - $29) per share x (5,900 - 1,225) shares = $32,375
Revised equity section of the balance sheet after the October 11 treasury stock purchase:
Stockholders' Equity:
Common Stock - $10 par value, 81,000 shares authorized, issued, and outstanding $ 810,000
Paid-in Capital in Excess of Par Value, Common Stock 261,000
Retained Earnings 936,000
Treasury Stock (common stock) (200,600)
Total Stockholders' Equity $ 1,806,400
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FULL QUESTIONOn October 10, The Stockholders’ Equity Of Sherman Systems Appears As Follows. Common Stock–$10 Par Value, 81,000 Shares
On October 10, the stockholders’ equity of Sherman Systems appears as follows.
Common stock–$10 par value, 81,000 shares
authorized, issued, and outstanding $ 810,000
Paid-in capital in excess of par value, common stock 261,000
Retained earnings 936,000
Total stockholders’ equity $ 2,007,000
1. Prepare journal entries to record the following transactions for Sherman Systems.
a. Purchased 5,900 shares of its own common stock at $34 per share on October 11.
b. Sold 1,225 treasury shares on November 1 for $40 cash per share.
c. Sold all remaining treasury shares on November 25 for $29 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.
