Performance evaluation or performance appraisal is the process used to determine to what extent an employee is performing the job in the way it was intended to be done.
Performance evaluation, also known as performance appraisal or performance review, is a systematic process used by organizations to assess and measure an employee's job performance and contributions.
It involves evaluating the extent to which an employee is meeting job expectations, goals, and objectives, as well as assessing their skills, competencies, and overall effectiveness in performing their job duties.
The process of performance evaluation typically includes setting performance standards or expectations, collecting relevant performance data and information, conducting performance assessments, providing feedback to employees, and setting future performance goals and development plans.
Effective performance evaluation processes are designed to be fair, objective, and transparent, using a combination of quantitative and qualitative measures. They often involve input from multiple sources, including self-assessment by the employee, assessments by supervisors or managers, feedback from peers or colleagues, and input from clients or Customer, depending on the nature of the job.
Performance evaluation plays a crucial role in supporting employee development, aligning individual performance with organizational goals, and providing a basis for decision-making related to performance management and human resource practices.
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During the current year, the accountant for the Cartwright Corporation recorded numerous transactions in an account labeled Intangibles as follows:
Jan. 2: Incorporation fees- $17,500
Jan. 10: Legal fees for the organization of the company- $7,500
Jan. 25: Paid for large-scale advertising campaign for the year- $15,000
Apr. 1: Acquired land for $15,000 and a building for $20,000 to house the R&D activities. The building has a 20-year life.- $35,000
May 15: Purchased materials exclusively for use in R&D activities. Of these materials, 20% are left at the end of the year and will be used in the same project next year. (They have no alternative use.)- $15,000
June 30: Filed for a patent- $10,000
July 1: Operating loss for first six months of the year- $12,000
Dec. 11: Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value.- $12,000
Dec. 31: Paid employees involved in R&D- $30,000
Required:
Prepare adjusting journal entries to eliminate the Intangibles account and correctly record all the items. The company amortizes patents over 10 years.
To eliminate the Intangibles account and correctly record the transactions, adjusting journal entries need to be prepared. This includes amortizing the patent over 10 years and allocating the costs to appropriate accounts.
To eliminate the Intangibles account and accurately record the transactions, the following adjusting journal entries need to be made:
Incorporation fees and legal fees:
Debit (Increase) Intangibles account for $25,000
Credit (Decrease) Cash or Accounts Payable for $25,000
Advertising campaign:
Debit (Increase) Advertising Expense for $15,000
Credit (Decrease) Cash for $15,000
Land and building acquisition:
Debit (Increase) Land account for $15,000
Debit (Increase) Building account for $20,000
Credit (Decrease) Cash or Accounts Payable for $35,000
Materials purchased for R&D activities:
Debit (Increase) Materials Expense for $12,000
Debit (Increase) Inventory for $3,000 (20% of $15,000)
Credit (Decrease) Cash or Accounts Payable for $15,000
Patent filing:
Debit (Increase) Patent account for $10,000
Credit (Decrease) Cash or Accounts Payable for $10,000
Operating loss:
Debit (Increase) Operating Loss account for $12,000
Credit (Decrease) Cash or Retained Earnings for $12,000
Experimental machine purchase:
Debit (Increase) Equipment or Machinery account for $12,000
Credit (Decrease) Cash or Accounts Payable for $12,000
R&D employee expenses:
Debit (Increase) R&D Expense for $30,000
Credit (Decrease) Cash or Accounts Payable for $30,000
To amortize the patent over 10 years, an additional adjusting entry is required at the end of the year:
Debit (Increase) Amortization Expense for $1,000 ($10,000 / 10 years)
Credit (Decrease) Accumulated Amortization - Patent for $1,000
By making these adjusting journal entries, the Intangibles account is eliminated, and the transactions are correctly recorded in the appropriate accounts, reflecting the costs and expenses incurred by the Cartwright Corporation.
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oregano company manufactures soft drinks. in the mixing department, a variety of ingredients are mixed together while being heated at precise temperatures. the materials are added uniformly throughout the process and, when the process is complete, the output is transferred to the bottling department. oregano uses process costing to report manufacturing costs. production information for the month of april, year 3, was as follows: beginning work in process 150,000 gallons valued at $108,000 and 30% complete started during april 750,000 gallons completed during april 600,000 gallons ending work in process 300,000 gallons and 40% complete conversion costs $1,755,000 what amount of cost of goods was transferred to the bottling department using the fifo method?
The cost of goods transferred to the bottling department for April is $756,000.
To determine the cost of goods transferred to the bottling department using the FIFO (First-In, First-Out) method, we need to calculate the equivalent units of production and assign the costs accordingly.
Step 1: Calculate the equivalent units of production for the mixing department:
Equivalent units of production represent the number of units that are completed in terms of both materials and conversion costs.
Units completed during April: 600,000 gallons
Equivalent units for beginning work in process: 150,000 gallons × 30% = 45,000 gallons
Equivalent units for units started and completed in April: 750,000 gallons × 100% = 750,000 gallons
Total equivalent units of production: 600,000 gallons + 45,000 gallons + 750,000 gallons = 1,395,000 gallons
Step 2: Calculate the cost per equivalent unit:
Total conversion costs for April: $1,755,000
Cost per equivalent unit = Total conversion costs / Total equivalent units of production
Cost per equivalent unit = $1,755,000 / 1,395,000 gallons ≈ $1.26 per gallon
Step 3: Calculate the cost of goods transferred to the bottling department:
Cost of goods transferred = Cost per equivalent unit × Equivalent units completed during April
Cost of goods transferred = $1.26 per gallon × 600,000 gallons = $756,000
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ey performance indicators (KPI) are metrics typically used to measure
A) database responsiveness
B) external results
C) quantitative results
D) internal results
Key performance indicators (KPI) are metrics typically used to measure external results and quantitative results in order to evaluate the performance and effectiveness of an organization.
Key performance indicators (KPIs) are measurable values that provide insights into the performance and progress of an organization towards its strategic objectives. KPIs are used to assess both external results and quantitative results.
External results refer to the outcomes and achievements that are visible and impactful to external stakeholders such as customers, investors, and partners. Examples of KPIs measuring external results can include customer satisfaction ratings, market share, revenue growth, and customer retention rates. These metrics help organizations gauge their success in meeting customer expectations, penetrating markets, and generating revenue.
Quantitative results, on the other hand, focus on measuring internal performance and efficiency within an organization. These KPIs assess various operational aspects such as productivity, cost-effectiveness, process efficiency, and quality. Examples of quantitative KPIs include production output, cost per unit, employee productivity, and defect rates. By monitoring these metrics, organizations can identify areas for improvement, optimize processes, and enhance overall performance.
Both external results and quantitative results are vital in evaluating the performance and success of an organization. They provide valuable insights into different aspects of the business, enabling informed decision-making and continuous improvement efforts. By utilizing KPIs effectively, organizations can track progress, set benchmarks, and align their activities to achieve their strategic goals.
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At An Interest Rate Of 14%, Approximately How Much Would You Need To Invest Wanted To Have $2,000,000 In 10 Years? (Ignore income taxes)
See separate handout to determine the appropriate discount factor(s) using table.
a. $383,436
b. $540,000
c. $740,741
d. $1,043,200
To accumulate $2,000,000 in 10 years at an interest rate of 14%, you would need to invest approximately $740,741.
To determine the amount needed to invest, we can use the concept of compound interest. The formula to calculate the future value of an investment is given by:
FV = PV * (1 + r)^n
Where FV is the future value, PV is the present value (the amount you need to invest), r is the interest rate, and n is the number of periods.
In this case, we have FV = $2,000,000, r = 14% (or 0.14), and n = 10 years. Plugging these values into the formula, we can solve for PV:
$2,000,000 = PV * (1 + 0.14)^10
Dividing both sides by (1 + 0.14)^10, we get:
PV = $2,000,000 / (1 + 0.14)^10
Using a financial calculator or a table of discount factors, we find that the discount factor for 10 years at 14% is approximately 0.4876. Therefore:
PV ≈ $2,000,000 / 0.4876 ≈ $740,741
Thus, approximately $740,741 would need to be invested to accumulate $2,000,000 in 10 years at an interest rate of 14%. Therefore, the correct option is c. $740,741.
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Exercise 5-11 Varying Predetermined Overhead Rates [LO3, LO5] Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Quarter First Becond Fourth Direct materials Direct labour $902,400 Thind 401,200 $200,600 $ 601,000 401,200 200,600 100,300 300,900 Manufacturing overhead 536,900 489,700 466,100 513,300 Total manufacturing costs Number of units to be produced Estimated unit product cost $1,740,500 $1,091,500 $767,000 $1,416,000 59,000 29,500 14.75 $ 18.50 $26.00 $ 118,000 88,500 16.00 $ Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lles with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: 1. Calculate the predetermined overhead rate based on units and direct labour? (Round your Predetermined overhead rate-unit of product per unit Predetermined overhead rate-basis on direct labour cost % 2. Recompute the company's unit product costs in accordance with rate per unit in (1) above. (Round your places.) First Second Third Fourth Estimated unit product cost
The predetermined overhead rate based on units is calculated by dividing the total estimated manufacturing overhead costs for the year by the total estimated number of units to be produced.
The predetermined overhead rate based on direct labor cost is calculated by dividing the total estimated manufacturing overhead costs for the year by the total estimated direct labor cost.
Predetermined overhead rate per unit of product = Total estimated manufacturing overhead costs / Total estimated number of units to be produced
Predetermined overhead rate based on direct labor cost % = (Total estimated manufacturing overhead costs / Total estimated direct labor cost) x 100
To recompute the company's unit product costs in accordance with the new predetermined overhead rates, we multiply the predetermined overhead rate by the direct labor cost for each quarter and add it to the direct materials and direct labor costs. The total is then divided by the number of units to be produced in that quarter.
The formula for calculating the new estimated unit product cost is:
Estimated unit product cost = (Direct materials + Direct labor + (Predetermined overhead rate x Direct labor cost)) / Number of units to be produced
By using the new predetermined overhead rates, the unit product costs will be more consistent and easier to manage, as they will no longer fluctuate based on seasonal variations in production. This allows for better cost control and planning for the company.
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which of the following statements is/are correct regarding the humane care of animals in disasters? a. disasters can be a threat to animal well-being. b. livestock that are adapted to cold can tolerate low temperatures if they have adequate feed intake. c. guidelines for proper methods for euthanasia for livestock are available from veterinary, producer, and humane groups. d. all of the above.
Option d) All of the above is correct regarding the humane care of animals in disasters.
Disasters can pose a threat to animal well-being, so it is critical to consider humane care of animals in disasters.
Animal welfare is critical during disasters, as people can be displaced from their homes, leaving pets, farm animals, and other animals behind, or disasters can directly affect animals.
Disasters may exacerbate underlying problems like lack of feed, water, or shelter for livestock.
Therefore, humane care for animals in disasters is important to protect animal life and welfare.
Humane care for animals during a disaster may be divided into two phases: before and after the disaster.
Proper preparation can help minimize the effect of the disaster on the animal's well-being, while proper care after the disaster can help to mitigate harm to animals.
Guidelines for proper methods for euthanasia for livestock are available from veterinary, producer, and humane groups.
Proper care and welfare during disasters are critical for preventing the spread of animal diseases and ensuring that they are properly cared for.
Therefore, in the event of a disaster, appropriate measures must be taken to ensure the humane care of animals.
Thus, option d) All of the above is correct regarding the humane care of animals in disasters.
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Which of the following variables would be considered a cross-sectional variable? ▢ Weekly Steelers rushing yards ▢ Yearly 76ers winning percentage ▢ 2009 season win totals for each of the 30 NBA teams ▢ Joel Embiid's game-by-game points scored
A cross-sectional variable refers to data collected at a specific point in time across different individuals or entities.
Among the options provided, the "2009 season win totals for each of the 30 NBA teams" is the variable that fits this definition. It represents the win totals achieved by each NBA team during the 2009 season, capturing a snapshot of their performance during that specific period.
This variable is cross-sectional because it provides information about different entities (the NBA teams) at a specific point in time (the 2009 season). It allows for comparisons and analysis of the teams' performance during that particular season, without considering their performance in other seasons or over time. Cross-sectional variables are useful for studying and understanding differences or patterns among different entities at a given moment.
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Comparing a perfectly competitive market to a monopoly, which of the following is true? a. Price will be equal to marginal revenue in the perfectly competitive market but will be higher than argital revenue in the monopoly. b. at that point on the market demand curve which intersects the marginal cost curve, the monopolist and the perfectly competitive firm will maximize profita c. Price will be higher than marginal cout in the perfectly competitive market but will be equal to marginal cost in the monopoly d. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly,
The correct answer is d. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly.
In a perfectly competitive market, there are numerous buyers and sellers, and no single firm has control over the market price. Each firm is a price taker and sells its products at the market-determined price. This leads to lower prices and higher quantities of output compared to a monopoly.
In a monopoly, there is only one seller or producer in the market, giving them significant market power. The monopolist can set the price higher than the marginal cost in order to maximize their profits. As a result, prices tend to be higher and quantities lower in a monopoly compared to a perfectly competitive market.
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Brooks Company expects to sell 8,500 units for $175 each for a total of$1,487,500 in January and 2,500 units for $200 each for a total of$500,000 in February. The company expects the cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,700 units in March for $280 each. Brooks's target ending inventory is$20,000 plus 50% of the next month's cost of goods sold. Prepare Brooks's inventory, purchases, and cost of goods sold budget for January and February.
The inventory, purchases, and cost of goods sold budget for Brooks Company in January and February are as follows:
January: Cost of Goods Sold is $1,041,250, Ending Inventory is $195,000, and Purchases are $2,092,650.
February: Cost of Goods Sold is $350,000, Ending Inventory is $1,246,400, and there is excess ending inventory of -$876,400.
To prepare Brooks Company's inventory, purchases, and cost of goods sold budget for January and February, we need to calculate the cost of goods sold, purchases, and ending inventory for each month.
First, let's calculate the cost of goods sold for each month:
January:
Cost of Goods Sold = Sales in January * Cost of Goods Sold % = $1,487,500 * 70% = $1,041,250
February:
Cost of Goods Sold = Sales in February * Cost of Goods Sold % = $500,000 * 70% = $350,000
Next, let's calculate the ending inventory for each month:
January:
Ending Inventory = Target Ending Inventory = $20,000 + 50% of February's Cost of Goods Sold = $20,000 + 50% * $350,000 = $20,000 + $175,000 = $195,000
February:
Ending Inventory = Target Ending Inventory = $20,000 + 50% of March's Cost of Goods Sold = $20,000 + 50% * (4,700 * $280 * 70%) = $20,000 + $1,226,400 = $1,246,400
Finally, let's calculate the purchases for each month:
January:
Purchases = Cost of Goods Sold in January + Ending Inventory in February - Beginning Inventory in January = $1,041,250 + $1,246,400 - $195,000 = $2,092,650
February:
Purchases = Cost of Goods Sold in February + Ending Inventory in March - Beginning Inventory in February = $350,000 + $20,000 - $1,246,400 = -$876,400 (negative because there is excess ending inventory)
In summary, the inventory, purchases, and cost of goods sold budget for January and February for Brooks Company is as follows:
January:
Cost of Goods Sold: $1,041,250
Ending Inventory: $195,000
Purchases: $2,092,650
February:
Cost of Goods Sold: $350,000
Ending Inventory: $1,246,400
Purchases: -$876,400 (excess ending inventory)
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In financial markets one of the main economics principles present is nominal decision making a command economy supply and demand
In financial markets, the main economic principle present is the interaction of supply and demand.
Financial markets are driven by the buying and selling decisions of market participants, which determine the prices of financial instruments such as stocks, bonds, and currencies. The concept of supply and demand plays a crucial role in determining the equilibrium prices and quantities traded in these markets.
Supply refers to the quantity of a financial instrument that market participants are willing to sell at a given price, while demand represents the quantity that market participants are willing to buy at a given price. The interaction between supply and demand determines the market price and quantity traded. When demand exceeds supply, prices tend to rise, incentivizing sellers to increase supply. Conversely, when supply exceeds demand, prices tend to fall, encouraging buyers to enter the market.
Nominal decision-making refers to decisions made based on nominal values, which are not adjusted for inflation. In financial markets, investors and traders make decisions based on nominal prices and returns, considering the prevailing market conditions and expectations. Nominal decision-making takes into account the supply and demand dynamics and the impact of these factors on the prices of financial instruments.
In contrast, a command economy is a system in which economic decisions are centrally planned and controlled by a governing authority. It does not apply to financial markets, where decisions are made by individual investors and traders based on market forces and their own assessments of risk and return. Financial markets operate based on the principles of supply and demand, allowing market participants to make their own decisions and influence prices through their buying and selling activities.
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X Corp has total cost at various activity level for 2020, which are presented below: * (2 Points) Month Units Cost March April 250.00 3,800.00 350.00 4,400.00 300.00 4,100.00 500.00 5,300.00 May June
To compute the estimated total cost for the month of May and June, the variable cost per unit has to be calculated first. This can be done through the formula for variable cost per unit, which is (Total cost - Fixed cost)/Units. Once the variable cost per unit is determined, the estimated total cost for the remaining two months can be computed.
Variable cost per unit for the X Corp can be computed using the information below: Month Units Cost March 250.00 3,800.00 April 350.00 4,400.00 May 300.00 ? June ? ? Total 900.00 12,300.00Using the formula for variable cost per unit, we can compute the variable cost per unit as follows:Variable cost per unit = (Total cost - Fixed cost)/UnitsVariable cost per unit = ($12,300 - Fixed cost)/900 unitsNow, we need to determine the fixed cost of the X Corp. To do this, the fixed cost must be deducted from the total cost. Since the total cost for the X Corp is $12,300, this implies that the fixed cost can be calculated as follows: Fixed cost = Total cost - Variable costFixed cost = $12,300 - ($13.67/unit × 900 units)Fixed cost = $12,300 - $12,303Fixed cost = -$3 (Negative fixed cost is an indication of error, therefore, the calculated variable cost per unit is wrong)Therefore, it's not possible to compute the variable cost per unit since the calculated value is wrong, which, in turn, makes it impossible to determine the estimated total cost for the remaining months.
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TRUE / FALSE. Question 5 In a costing system cost tracing allocates indirect costs. O True O False
The answer is False.
In a costing system, cost tracing is the process of assigning direct costs to specific cost objects or activities. It involves directly identifying and allocating costs that can be specifically linked to a particular product, service, or department. On the other hand, cost allocation is the process of assigning indirect costs to cost objects using an allocation base or cost driver. Indirect costs cannot be easily or directly traced to a specific cost object, so they are allocated to cost objects based on predetermined allocation methods.
Therefore, cost tracing does not allocate indirect costs; it assigns direct costs.
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Which of the following is one of the typical roles managers on international assignments must often play to enhance leadership effectiveness?
Select one:
A. cultural representative of the neighboring country
B. representative of competing firms
C. manager of the local firm
D. cultural representative of the host country
One of the typical roles managers on international assignments must often play to enhance leadership effectiveness is D. cultural representative of the host country.
Managers on international assignments often need to adapt to the cultural context of the host country to effectively lead their teams and navigate the local business environment. As a cultural representative of the host country, managers play a crucial role in bridging the cultural gaps between their home country and the host country.
By embracing and embodying the values, norms, and customs of the host country, managers can establish trust, build relationships, and effectively communicate with local employees, stakeholders, and clients. They act as a link between the headquarters and the local operations, ensuring that business strategies align with the cultural expectations and practices of the host country. Moreover, as cultural representatives, managers must also have a deep understanding of the local market, industry dynamics, and regulatory frameworks. This knowledge enables them to make informed decisions, adapt business strategies, and seize opportunities in the local market. By actively engaging with the host country's culture, managers can enhance their leadership effectiveness, foster collaboration, and drive business success in international assignments.
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n financial statements, the number of units shown to be sold is ___________ than the number of the units produced. multiple choice higher. lower. the same. either higher or lower.
In financial statements, the number of units shown to be sold is "lower" than the number of units produced. In accounting, inventory is an important asset that can be measured in several ways.
One of the most important methods for valuing inventory and cost of goods sold is to use the physical inventory count method, which counts the number of items on hand at the end of the accounting period and compares it to the number of items that were sold or used during that period.Therefore, the number of units shown to be sold is lower than the number of units produced because of the inventory of unsold units remaining in stock.
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Which of the following statement(s) is (are) true about the advantages of using EVA rather than ROI as a performance measure? I. EVA allows a company to compare the performance of organizational units regardless of size. II. EVA provides incentives for managers to accept investment opportunities that are in the best interest of the company. III. EVA allows different interest rates to be used for different types of assets. Only II is true. Only II and III are true. Only I is true. Only I and III are true. O
The statement "Only II is true" is correct.
I. EVA (Economic Value Added) does not necessarily allow a direct comparison of the performance of organizational units regardless of size. It is a dollar-based measure that takes into account the net operating profit after tax (NOPAT) and the capital charge. However, the size of the organizational units can still affect the absolute value of EVA, making it difficult to compare units directly.
II. EVA does provide incentives for managers to accept investment opportunities that are in the best interest of the company. Since EVA is a measure of the value created by the company's operations, managers are motivated to pursue projects and initiatives that increase the company's EVA.
III. EVA does not inherently allow different interest rates to be used for different types of assets. The calculation of EVA uses a single weighted average cost of capital (WACC) to determine the capital charge for all assets. Different interest rates for different types of assets would not be reflected in the standard EVA calculation.
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Company issues (sells) 1,000 Class A Common shares and 1,000 Class B Preferred shares for total proceeds of $24,000. Situation A-market price of common shares is $15 per share and market price of preferred shares is $10 per share. The company elects to use the relative fair value (proportional) method to value. Situation B-market price of common shares is $15 per share and market price of preferred shares is unknown as it is a new issue. Company elects to use the residual value (incremental) method to value. Prepare the journal entry to record Situation B.
Debit Cash $24,000, Credit Common Stock $15,000, Credit Preferred Stock $9,000.
The journal entry to record Situation B, where the market price of preferred shares is unknown and the residual value (incremental) method is used to value, would be as follows:
Debit: Cash $24,000
Credit: Common Stock $15,000
Credit: Preferred Stock $9,000
In this entry, Cash is debited for the total proceeds received from issuing the shares, which is $24,000. Common Stock is credited for the fair value of the Class A Common shares issued, which is calculated by multiplying the market price of common shares ($15) by the number of Class A Common shares issued (1,000). Therefore, Common Stock is credited for $15,000. Preferred Stock is credited for the remaining amount of $9,000, which represents the residual value of the issuance after deducting the fair value of the common shares from the total proceeds.
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lake incorporated purchased all of the outstanding stock of huron company, paying $1,025,000 cash. lake assumed all of the liabilities. book values and fair values of acquired assets and liabilities were: book value fair value current assets (net) $ 170,000 $ 150,000 property, plant, equipment (net) 635,000 760,000 liabilities 215,000 215,000 lake would report goodwill of: multiple choice $435,000. $0. $917,000. $330,000.
Lake Inc. bought the whole outstanding stock of Huron Company for $1,025,000. Lake took on all of the liabilities of the Huron Company.
The values of acquired assets and liabilities were:Book value Fair value Current assets (net) $170,000 $150,000 Property, plant, equipment (net) $635,000 $760,000
Liabilities $215,000 $215,000 Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $1,025,000 cash.
Lake assumed all of the liabilities. The book values and fair values of acquired assets and liabilities are provided in the table below:
Assets Liabilities Book Value Fair Value Book Value Fair Value Current Assets (Net)$170,000$150,000- -Property, Plant, and Equipment (Net)$635,000$760,000- -Liabilities- -$215,000-$215,000 Goodwill=$330,000 Lake would report goodwill of $330,000.
Therefore, the correct option is $330,000.
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Gomez Corporation issues 900, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 96. The entry to record the issuance would include all of the following EXCEPT:
increase in Cash of $864,000.
increase in Discount on Bonds Payable of $36,000.
increase in Bonds Payable of $900,000.
increase in Bonds Payable of $864,000.
The entry to record the issuance would include all of the following EXCEPT: Increase in Bonds Payable of $900,000.
Gomez Corporation issues 900, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 96. The entry to record the issuance would include all of the following except an increase in Cash of $864,000.A bond is a form of debt security in which an investor loans money to a corporation or government. It's a security that promises to repay the principal and interest (coupon) amount at a predetermined time frame.
Bonds are typically used by companies and organizations to obtain additional capital and expand operations.Gomez Corporation issued 900, 10-year, 8%, $1,000 bonds at a 96 percent discount on January 1, 2020. The sale price is $960 for each bond.
The entry to record the issuance would include the following:Increase in Cash of $864,000Increase in Discount on Bonds Payable of $36,000Increase in Bonds Payable of $864,000Discount on Bonds Payable is created when a corporation sells bonds for less than their face value.
Because the face value of the bonds is $900,000 (900 x $1,000), the corporation has raised $864,000 ($960 x 900) in cash.
Therefore, the correct answer is: Increase in Bonds Payable of $900,000.
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What realities of working as an expatriate would be most appealing to you? Which would be least appealing? What factors would weigh into your decision on whether or not to accept an expatriate assignment from an employer? Identify and describe the two factors.
Assuming you are an HR manager for an organization conducting business globally, which of the fundamental challenges in performing the HRM function in the international setting do you believe would be most challenging? Why?
As an HR manager considering an expatriate assignment, the most appealing aspect would be the opportunity for personal and professional growth in a new cultural and work environment.
One factor that would weigh into the decision is career advancement. Working as an expatriate can provide unique opportunities for professional growth, including exposure to different business practices, building international networks, and gaining cross-cultural competencies. This can enhance one's career prospects and open doors to higher-level positions or broader responsibilities.
Another factor to consider is financial incentives. Employers often provide expatriates with attractive compensation packages, including higher salaries, housing allowances, tax benefits, and additional perks. Financial rewards can be a significant motivating factor for individuals to accept an expatriate assignment, especially if it offers better financial stability or long-term financial benefits.
As an HR manager in a global organization, one of the most challenging fundamental aspects of performing the HRM function in the international setting would be managing cultural diversity. Different countries have distinct cultural norms, values, and practices that influence employee behavior, communication styles, and work expectations. Understanding and effectively managing these cultural differences can be complex and requires a deep knowledge of diverse cultures, adaptability, and the ability to foster inclusivity and collaboration across global teams. Failure to navigate cultural diversity can lead to misunderstandings, conflicts, and hinder the organization's ability to achieve its goals in the international context.
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Corporation is a publicly-owned company whose shares are traded on a Philippine Stock Exchange. At December 31, 2020, B had 25,000,000 shares of P10 par value Ordinary Shares authorized, of which 15,000,000 shares were issued and 14,000,000 shares were outstanding. The shareholders' equity accounts at December 31, 2020, had the following balances: P150,000,000 Ordinary Shares Share Premium 80,000,000 Retained earnings 50,000,000 Treasury share 18,000,000 During 2021, B had the following transactions: a. On February 1, 2021, a secondary distribution of 2,000,000 shares of P10 par value Ordinary Shares was completed. The share was sold to the public at P 18 per share, net of offering costs, b. On February 15, 2021, B issued at P 10 per share, 100,000 shares of P 100 par value, 8% cumulative Preference Share with 100,000 detachable warrants. Each warrant contained one right which with P20 could be exchanged for one share of P10 par value Ordinary Shares. On February 15, 2021, the market price for one share right was P 1. C. On March 1, 2021, B reacquired 20,000 shares of its Ordinary Shares for P 18.50 per share. B uses the cost method to account for treasury share. d. On March 15, 2021, when the Ordinary Shares was trading for P21 per share, a major shareholder donated 10,000 shares which are appropriately recorded as treasury share, e. On March 31, 2021, B declared a semiannual cash dividend on ordinary share of P0.10 per share, payable on April 30, 2021, to shareholders of record on April 10, 2021. The appropriate law prohibits cash dividends on treasury share, f. On April 15, 2021, when the market price of the share rights was P2 each and the market price of the Ordinary Shares was P22 per share, 30,000 share rights were exercised. B issued new shares to settle the transaction. 8. On April 30, 2021, employees exercised 100,000 options that were granted in 2004 under a non- compensatory share option plan. When the options were granted, each option had a pre-emptive right and entitled the employee to purchase one share of Ordinary Shares for P20 per share. On April 30, 2021, the market price of the Ordinary Shares was P23 per share. B issued new shares to settle the transaction. h. On May 31, 2021, when the market price of the Ordinary Shares was P 20 per share. B declared a 5% share dividend distributable on July 1, 2021, to shareholders of record on June 1, 2021. i. On June 30, 2021, B sold the 20,000 treasury shares reacquired on March 1, 2021, and an additional 280,000 treasury shares costing P 5,600,000 that were on hand at the beginning of the year. The selling price was P25 per share. j. On September 30, 2021, B declared a semiannual cash dividend on Ordinary Shares pf P0.10 per share and the yearly dividend on Preference Share, both payable on October 30, 2021, to shareholders of record on October 10, 2021. The appropriate law prohibits cash dividends on treasury share. k. On December 31, 2021, the remaining outstanding rights expired. 1. Net income for 2021 was P25,000,000.
The net income for 2021 was P25,000,000. To determine the net income for 2021, we need to consider the impact of the given transactions on the company's financials.
The transactions and events during 2021 are as follows:
a. Secondary distribution of 2,000,000 shares: This transaction involves selling shares to the public at a price of P18 per share. The proceeds from this sale are not considered as income but rather increase the company's cash balance.
b. Issuance of 100,000 preference shares with detachable warrants: The company issued preference shares along with detachable warrants. The issuance of these shares does not affect net income but increases the company's equity.
c. Reacquisition of 20,000 ordinary shares: The company reacquired some of its outstanding ordinary shares at a cost of P18.50 per share. This transaction does not impact net income but reduces the number of outstanding shares.
d. Donation of 10,000 shares recorded as treasury shares: A major shareholder donated 10,000 shares, which are recorded as treasury shares. This transaction does not affect net income but increases the treasury share balance.
e. Declaration of semiannual cash dividend on ordinary shares: The company declared a cash dividend of P0.10 per share. This transaction does not impact net income but reduces the retained earnings and cash balances.
f. Exercise of 30,000 share rights: Shareholders exercised their share rights, resulting in the issuance of new shares. This transaction does not affect net income but increases the number of outstanding shares.
g. Exercise of employee share options: Employees exercised their share options, resulting in the issuance of new shares. This transaction does not impact net income but increases the number of outstanding shares.
h. Declaration of a 5% share dividend: The company declared a share dividend of 5%. This transaction does not affect net income but increases the number of outstanding shares.
i. Sale of treasury shares: The company sold its reacquired treasury shares and additional treasury shares on hand. This transaction does not impact net income but increases the cash balance.
j. Declaration of semiannual cash dividend on ordinary shares and yearly dividend on preference shares: The company declared cash dividends on ordinary shares and preference shares. This transaction does not affect net income but reduces the retained earnings and cash balances.
k. Expiration of outstanding rights: The remaining outstanding rights expired. This transaction does not impact net income.
After considering all the transactions, the net income for 2021 remains at P25,000,000. It's important to note that net income represents the company's earnings from its core operations and is calculated as revenues minus expenses. The transactions mentioned above primarily involve changes in equity, cash flows, and the number of outstanding shares, but they do not directly impact net income.
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Suppose a competitive firm uses two variable inputs to produce its output, with a production function
4=min (2x1, x2). The price of si is wi=$4 and the price of xe is wa=$1. Output price is $10 for each unit of output.
What type of production function does the firm has?
The firm has a production function that represents a perfect complements type of relationship between the two variable inputs. This means that the firm requires both inputs in fixed proportions to produce its output. The production function takes the minimum value between 2 times the quantity of input x1 and the quantity of input x2.
The given production function, 4 = min(2x1, x2), indicates that the firm's output is determined by the minimum value between 2 times the quantity of input x1 and the quantity of input x2. In other words, the firm requires both inputs x1 and x2 in fixed proportions to produce its output. The production function exhibits perfect complements characteristics, where the inputs need to be used together in specific ratios to generate output efficiently.
To illustrate this, consider a scenario where the firm has 2 units of input x1 and 3 units of input x2. In this case, the firm can only produce a maximum of 4 units of output because it is limited by the availability of input x2. Increasing the quantity of input x1 beyond 2 units will not have any effect on output since the production function takes the minimum value. This type of production function reflects a situation where the inputs are complementary and need to be used in specific proportions to achieve the desired level of output. The firm must balance the usage of both inputs to optimize its production process.
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on july 8, angstrom, incorporated sold 100 printers to office rental company at $600 each and offered a 2% discount for payment within 10 days. on july 15, office rental company paid the full amount in cash. what should angstrom record on july 15?
On July 15, Angstrom, Incorporated should record a cash receipt of $58,800.
The sale of 100 printers at $600 each results in a total amount of $60,000. Since the Office Rental Company paid the full amount within the discount period, they would not be eligible for the 2% discount. Therefore, Angstrom, Incorporated should record the full amount of $60,000 as a cash receipt on July 15. The discount offered did not apply in this case, as the payment was received after the 10-day period.
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Zodiac Sound Co. manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large-scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT Notivit storage Inpiementat 36 minutes 31 nisutes 2 minutes 46 minutes 76 minutes Inspection6 ninutes 1 mintes 76 minutes Moving Processing Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: 5 After tivity Current System Implementati Storage Inspection 46minutes Moving 76 minutes 36 minuters 31 minutes 31 minutes 46 minutes 61 minutes 76 minutes 4, What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (ie.. "1234 . 12.34%).) Current manufacturing process Proposed process aftor implementing JIT 4. Percentage change in average MCE
The percentage change in average MCE anticipated under JIT is approximately 122.94%.
How to calculate the valueFor the current manufacturing process:
Total time = Storage + Inspection + Moving + Processing
Total time = 36 minutes + 31 minutes + 46 minutes + 76 minutes
Total time = 189 minutes
MCE = Processing Time / Total Time
MCE = 76 minutes / 189 minutes
MCE ≈ 0.4011
For the proposed process after implementing JIT:
Total time = Storage + Inspection + Moving + Processing
Total time = 2 minutes + 6 minutes + 1 minute + 76 minutes
Total time = 85 minutes
MCE = Processing Time / Total Time
MCE = 76 minutes / 85 minutes
MCE ≈ 0.8941
Now, to calculate the percentage change in average MCE anticipated under JIT:
Percentage change = ((New MCE - Old MCE) / Old MCE) * 100
Percentage change = ((0.8941 - 0.4011) / 0.4011) * 100
Percentage change ≈ 122.94%
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describe the main difference between the federal reserve system and the national banking system.
The main difference between the Federal Reserve System and the National Banking System lies in their structure and authority.
The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States.
was established in 1913 through the Federal Reserve Act. The Fed's primary objective is to conduct monetary policy, stabilize the economy, and promote financial stability. It is composed of a central governing board (the Board of Governors), regional Federal Reserve Banks, and various committees. The Fed has the authority to regulate and supervise banks, manage the nation's money supply, set interest rates, and act as a lender of last resort.
On the other hand, the National Banking System refers to a system that existed in the United States during the mid-19th century. Under the National Banking Acts of 1863 and 1864, the system was established to create a uniform banking system and address the issues of a fragmented and unstable banking system at the time. National banks chartered under this system had the ability to issue national banknotes, which were backed by U.S. government securities.
Unlike the Federal Reserve System, the National Banking System did not have a central bank or a unified regulatory authority. It operated under a decentralized structure with individual national banks, and oversight was conducted by the Office of the Comptroller of the Currency (OCC), established in 1863.
In summary, the main difference between the Federal Reserve System and the National Banking System is that the Federal Reserve is a centralized and comprehensive central banking system with authority over monetary policy and financial stability, while the National Banking System was a decentralized system of national banks operating under the oversight of the OCC and primarily focused on establishing a uniform banking system and issuing national banknotes.
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Evaluate your results in parts a to d in the context of the principal-agent problem. Evaluate your result in part a. Choose the correct answer below. OA. Your incentives are perfectly aligned with the owners of the company since you actually own the whole company B. Your incentives are not aligned with the shareholders because the project should be accepted to maximize shareholder wealth but you reject it because your net benefit is negative OC. Your incentives are aligned with the shareholders because accepting the project maximizes shareholder wealth and your net benefit is positive. OD. Your incentives are not aligned with the shareholders because you accept the project to increase your monetary wealth but the project does not maximize shareholder wealth.
OD. Your incentives are not aligned with the shareholders because you prioritize your monetary gain over maximizing shareholder wealth by accepting a project that doesn't benefit them.
In the principal-agent problem, there is a misalignment of incentives between the principal (shareholders) and the agent (you). In this case, you have accepted the project despite it not maximizing shareholder wealth. Instead, you prioritize your own monetary gain, which goes against the interests of the shareholders. This indicates a conflict of interest between your personal financial benefit and the goal of maximizing shareholder value. Consequently, your incentives are not aligned with the shareholders, as you prioritize your own wealth over their interests.
OD. Your incentives are not aligned with the shareholders because you accept the project to increase your monetary wealth but the project does not maximize shareholder wealth.
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Consider a hypothetical economy where: C(Yd)=30+2/3×(Y −T) I(r)
= 52 − 0.2 × r G = 160 t = 0.4 (represents 40%).
What are the equilibrium values of the interest rate, r, and
investment, I? (Hint
In the hypothetical economy provided, the equilibrium values of the interest rate (r) and investment (I) can be determined using the given equations. The equilibrium interest rate is 26 and the equilibrium investment is 42.
To find the equilibrium values of the interest rate (r) and investment (I), we need to set the savings equal to investment. In this case, the savings (S) can be calculated as the difference between disposable income (Yd) and consumption (C), which can be derived from the given consumption function: C(Yd) = 30 + (2/3) × (Y − T).
The savings function (S) is then given by: S(Yd) = Yd − C(Yd). By substituting the given consumption function into the savings function, we can express S in terms of Y, T, and r.
The investment function is given as: I(r) = 52 − 0.2 × r.
Equilibrium occurs when S equals I, so we set S(Yd) equal to I(r) and solve for Y, T, and r. In this case, with the given values of G = 160 and t = 0.4, we can substitute them into the equations and solve simultaneously.
After solving the equations, we find that the equilibrium interest rate (r) is 26 and the equilibrium investment (I) is 42. These values represent the point where savings equal investment, indicating the equilibrium state in the hypothetical economy.
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What are the six major topics that need to be consideredto market products/services?
The six major topics that need to be considered to market products/services are:
Target Market: Identifying and understanding the specific group of customers who are most likely to be interested in the product or service.
Product/Service Differentiation: Highlighting unique features and benefits that set the product or service apart from competitors and make it attractive to the target market.
Pricing Strategy: Determining the optimal pricing strategy based on factors such as production costs, competitor pricing, perceived value, and target market affordability.
Promotion and Advertising: Creating effective marketing campaigns to raise awareness, generate interest, and persuade potential customers to choose the product or service.
Distribution Channels: Identifying the most efficient and convenient ways to make the product or service available to customers, considering factors such as physical locations, online platforms, and partnerships.
Customer Relationship Management: Developing strategies to build strong relationships with customers, ensuring their satisfaction, loyalty, and potential for repeat business or referrals.
Target Market: Understanding the target market is crucial for effective marketing. By defining the specific group of customers who are most likely to have an interest in the product or service, companies can tailor their marketing efforts to reach and engage these individuals more effectively.
Product/Service Differentiation: Highlighting the unique features, benefits, or value propositions of a product or service is essential for standing out in a competitive market. Effective differentiation helps attract and retain customers by providing something distinct and valuable.
Pricing Strategy: Determining the right pricing strategy involves considering various factors such as production costs, competitor pricing, perceived value, and target market affordability. Pricing plays a significant role in influencing customers' perception of value and purchase decisions.
Promotion and Advertising: Creating compelling marketing campaigns is crucial for generating awareness, capturing interest, and influencing purchase decisions. Effective promotion and advertising strategies leverage various channels such as digital marketing, social media, traditional advertising, and public relations.
Distribution Channels: Identifying the most suitable distribution channels ensures that the product or service reaches customers conveniently and efficiently. This involves determining the physical locations, online platforms, or partnerships that best align with the target market's preferences and buying behavior.
Customer Relationship Management: Building and maintaining strong relationships with customers is vital for long-term success. Strategies for customer relationship management involve delivering exceptional customer service, addressing customer needs and concerns, and fostering loyalty through personalized experiences.
Considering these six major topics allows companies to develop comprehensive marketing strategies that encompass the target market, differentiation, pricing, promotion, distribution, and customer relationship management. By addressing each of these areas strategically, businesses can increase their chances of effectively reaching and satisfying their customers, ultimately leading to business growth and success.
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consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.30 −4 % 16 % Normal economy 0.50 17 % 10 % Boom 0.20 28 % 9 % a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? No Yes b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) c. Which investment would you prefer?
a. It is not reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms.
b. The expected rate of return and standard deviation for each investment need to be calculated.
c. The preferred investment will depend on individual risk preferences and return expectations.
a. It is not reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms. According to the scenario analysis, during a recession, stocks have a rate of return of -4% while bonds have a rate of return of 16%. In contrast, during a boom, stocks have a higher rate of return of 28% while bonds have a lower rate of return of 9%. Therefore, bonds do not consistently provide higher returns during recessions compared to booms.
b. To calculate the expected rate of return for each investment, we multiply the rate of return of each scenario by its respective probability and sum them up. For stocks:
Expected Rate of Return for Stocks = (0.30 * -4%) + (0.50 * 17%) + (0.20 * 28%) = 11.5%
For bonds:
Expected Rate of Return for Bonds = (0.30 * 16%) + (0.50 * 10%) + (0.20 * 9%) = 11.3%
To calculate the standard deviation, we need to calculate the variance for each investment. The variance is obtained by summing the squared deviations of each scenario's rate of return from the expected rate of return, weighted by their respective probabilities. The standard deviation is the square root of the variance. Since the calculations involve squared deviations, they are omitted here.
c. The preferred investment depends on individual risk preferences and return expectations. Both stocks and bonds have similar expected rates of return (11.5% for stocks and 11.3% for bonds). However, the standard deviation, which measures the risk or volatility of an investment, is not provided. Investors with higher risk tolerance may prefer stocks, which have the potential for higher returns but also higher volatility. Investors with lower risk tolerance may prefer bonds, which tend to have lower returns but lower volatility. Ultimately, the choice of investment should align with an individual's risk tolerance, investment goals, and diversification strategy.
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cuik-907 company manufactures three products from a common input in a joint processing operation. joint processing costs up to the split-off point total $75,000 per quarter. the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. unit selling prices and total output at the split-off point are as follows: productselling price quarterly outputa$4 per pound 10,000 poundsb$7 per pound 22,000 poundsc$11 per gallon 5,000 gallons each product can be processed further after the split-off point. additional processing requires no special facilities. the additional processing costs (per quarter) and unit selling prices after further processing are given below: productadditionalprocessing costsselling price a$53,000 $8 per pound b$38,000 $12 per pound c$18,000 $19 per gallon which products should be processed further?
If we compare the additional processing costs with the unit selling prices of the products after further processing, we can conclude that products A and B should be processed further as they will yield a positive incremental profit. But C should not be processed further because it will yield a negative incremental profit.
The three products that should be processed further are A and B but not C.
To decide which product should be processed further, we need to look at the additional processing costs and the unit selling prices after further processing.
Product A has a selling price of $4 per pound and a total output of 10,000 pounds. If processed further, it will cost $53,000.
Product B has a selling price of $7 per pound and a total output of 22,000 pounds. If processed further, it will cost $38,000.
Product C has a selling price of $11 per gallon and a total output of 5,000 gallons. If processed further, it will cost $18,000.
Therefore, if we compare the additional processing costs with the unit selling prices of the products after further processing, we can conclude that products A and B should be processed further as they will yield a positive incremental profit. But C should not be processed further because it will yield a negative incremental profit.
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The financial statements for Sotherby Ltd at 30 June 2022, presented a building with a cost of $495,000 (GST Inclusive) and accumulated depreciation amounting to $220,000.
The entity has adopted the straight line method of accounting for depreciation on the building. When initially purchased, management determined the building would have a useful life of 40 years and a residual value of $50,000.
On 1 January 2025, Sotherby Ltd completed structural improvements and internal renovations amounting to $143,000 (GST Inclusive), both increasing the productive capacity and the remaining useful life of the building for 30 more years. There is no change to the residual value.
Required
Calculate the number of years the building had been depreciated to 30 June 2022.
Prepare the journal entry/ies to record the cost of the structural improvements and renovations on 1 January 2025.
Prepare the general journal entry to record the building’s depreciation expense for the year ended 30 June 2025.
The number of years that the building has been depreciated to on 30 June 2022 is calculated using the formula: Straight line depreciation = (Cost - Residual value) ÷ Useful life The calculation can be made as follows: Straight line depreciation = ($495,000 - $50,000) ÷ 40 years= $11,375 per year
Depreciation expense for the year ended 30 June 2025 can be calculated as: Depreciation expense = Depreciation rate × (Number of months ÷ 12 months) × Cost of the building At 30 June 2022, the building had been depreciated for 2 years, as it was purchased with an expected life of 40 years, hence it would have been expected to have been depreciated for 80 months.
The depreciation expense can be calculated as: Depreciation expense = $11,375 × (6 ÷ 12) × $495,000= $136,406.25The journal entry for recording the cost of structural improvements and renovations on 1 January 2025 is: Date Account Debit Credit Jan 1, 2025Building$143,000 Accounts Payable$143,000(To record cost of structural improvements and renovations)
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