Answer:
Presently there will be 18 A’s, in accumulation there will be 43 B’s, this can create 43 ÷ 3 = 14.3 A’s.
Moreover the 50 C’s might create 50 ÷ 2 = 25 A’s.
Thus 35 D’s might create 35 A’s.
Now B is a restriction.
Consequently a determined of 14.3 A’s might be prepared with the existing stocks in hand.
Therefore the entire A’s that might be distributed at the beginning of following week is 18 + 14.3 = 32 .3
Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of five years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods. a. Straight-line: First year $ Second year $ b. Units-of-activity (1,200 hours first year; 2,250 hours second year): First year $ Second year $ c. Double-declining-balance: First year $ Second year $
Answer and Explanation:
The computations is shown below;
a) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($360,000 - $10,000) ÷ (5 years)
= ($350,000) ÷ (5 years)
= $70,000
In this method, the depreciation is same for all the remaining useful life
Therefore for first year and second year the same depreciation i.e $70,000 is to be charged separately
(b) Units-of-production method:
= (Original cost - residual value) ÷ (estimated operating hours)
= ($360,000 - $10,000) ÷ (14,000 hours)
= ($350,000) ÷ (14,000 hours )
= $25 per hour
For the first year
= Operating hours in first year × depreciation per hour
= 1,200 hours × $25
= $30,000
And for the second year, it would be
= Operating hours in second year × depreciation per hour
= 2.250 hours × $25
= $56,250
(c) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 5
= 20%
Now the rate is double So, 40%
In year 1, the original cost is $360,000, so the depreciation is $144,000 after applying the 40% depreciation rate
And, in year 2, the ($360,000 - $144,000) × 40% = $86,400
A strategic plan is a carefully crafted set of steps that a firm intends to follow in order to be successful. The business model is a central element of a firm’s strategic plan and describes the process whereby a company hopes to earn profits and outperform the competition. The importance of an effective strategy cannot be overstated. With this in mind provide a substantive response to the questions below: Think about the best and worst companies you know. What is extraordinary (or extraordinarily bad) about these firms? Are their strategies clear and focused or difficult to define? Explain.
Answer:
A business model integrated with the well-developed and analytical strategic plan is essential for any company that plans to achieve market position, without these two tools it is impossible for a company to survive in the highly competitive market in the long term.
It is through the business model and strategic planning that the company identifies itself, outlines its mission, values and action plans to achieve the objectives.
The most successful companies in the world are well-organized companies, who know what direction they want to go, their identity, their strengths and weaknesses, their competitors, etc.
A company with clear and focused strategies is Apple, one of the largest technology companies in the world, which strategically sought to become the most important company in the world, therefore it developed innovative products that revolutionized the market and made the company a reference in the manufacture of cell phones, computers and electronic devices. Apple has created a value and consumer identity proposition for its products that was only possible thanks to analytical strategic decisions envisaged through effective planning.
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units): Direct materials $ 26 Direct labor 53 Variable overhead 21 Fixed overhead 49 Total $ 149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $38,500. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
Answer and Explanation:
The preparation of the total differential cost schedule is presented below
Schedule showing statement of total differential cost
Particulars Make the wheels Buy from trailblazers Differential cost
Offer of trailblazer $220,000 $220,000 Higher
(2000 × $110)
Material cost $52,000 $52,000 Lower
($26 × 2000)
Labor cost $106,000 $106,000 Lower
($53 × 2000)
Variable overhead $42000 $42,000 Lower
($21 × 2000)
Fixed overhead $98000 $59,500 $38,500 Lower
($49 × 2000) ($98,000 -$38,500)
Total cost $298,000 $279,500 ($18,500) Lower
By adding the total cost we can get the making cost, buying cost and differential cost
On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per share. For the previous year, Zack paid an annual dividend of $3.90 per share. Zack's gross revenues and net income was $5,000,000 and $2,500,000, respectively. The dividend yield for Zack Corporation would be_____. 8% 0.08% 39% 0.39%
Answer:
The dividend yield for Zack Corporation 8%,the first option
Explanation:
The dividend yield is a measure of business performance used by investors which compares the dividend paid by a stock to its market price(price paid by investors to acquire the stock)
dividend per share for Zack Corporation is $3.90
market price per share is $48
dividend yield =$3.90/$48*100=8.13%
The correct option is the first option 8% since the figure above was simply rounded down to whole number
Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed production approaches. If required, round percentages to one decimal place.
Answer:
The value-added, non-value-added, total lead time, and the value-added ratio under the present production approaches is as follows:
value-added=20 minutes
non-value-added=905 minutes
total lead time=925 minutes
value-added ratio=2.2%
The value-added, non-value-added, total lead time, and the value-added ratio under the proposed production approaches is as follows:
value-added=20 minutes
non-value-added=50 minutes
total lead time=70 minutes
value-added ratio=28.6%
Explanation:
In order to calculate the the value-added, non-value-added, total lead time, and the value-added ratio under the present production approaches we would have to use the following formula:
value-added=Process times, step 1 +Process times, step 2+Process times, step 3+Process times, step 4
value-added=5+8+4+3
value-added=20 minutes
non-value-added=Total within batch wait time+movie time
non-value-added=(5+8+4+3)*(45-1)+25
non-value-added=905 minutes
total lead time= value-added+ non-value-added
total lead time=20+905
total lead time=925 minutes
value-added ratio=value-added/total lead time
value-added ratio=20/925
value-added ratio=2.2%
In order to calculate the the value-added, non-value-added, total lead time, and the value-added ratio under the proposed production approaches we would have to use the following formula:
value-added=Process times, step 1 +Process times, step 2+Process times, step 3+Process times, step 4
value-added=5+8+4+3
value-added=20 minutes
non-value-added=Total within batch wait time+movie time
non-value-added=(5+8+4+3)*(3-1)+10
non-value-added=50 minutes
total lead time= value-added+ non-value-added
total lead time=20+50
total lead time=70 minutes
value-added ratio=value-added/total lead time
value-added ratio=20/70
value-added ratio=28.6%
Movers Company manufactures sneakers. Production of its new sneakers for the coming three months is budgeted as follows: August 28,000 September 50,000 October 33,000 Each sneaker requires 2.5 hours of direct labor time. Direct labor wages average $16 per hour. Monthly variable overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the total overhead budgeted for the month of September
Answer:
Budgeted overhead cost =$1,250,000
Explanation:
Budgeted overhead for the month of September = Total labour hours × overhead rate per hour
Total labor hours = standard hours × budgeted production units
=2.5 hours × 40,000= 125,000
Budgeted overhead cost Total = $10× 125,000 =$1250000
Budgeted overhead cost =$1,250,000
Answer:
$1,254,500
Explanation:
Solution
Recall that:
Production of sneakers for three months budgets were :
August= 28000
September = 50,000
October = 33,000
Each sneakers requires labor time = 2.5 hours
Labor wages average = $16.
Now,
The total overhead budgeted for the month of September is calculated as follows:
The total overhead budgeted for the month of September = Variable overhead + Fixed overhead
= (50,000 units * 2.5 direct labor hours per unit * $10 per direct labor hour) + $4,500
= $1,254,500
Therefore, the total overhead budgeted for the month of September is $1,254,500
Flex-Tite manufactures plastic parts. The inventory policy at Flex-Tite is to hold inventory equal to 125% of the average monthly sales for its main product. Sales for the following year are expected to be 870,000 units. Based on the inventory policy, the budget calls for the production of 880,000 units. Required: What is the beginning inventory of the component?
Answer:
Beginning inventory = 80,650
Explanation:
Lets us use the following method to solve the given problem
Average Monthly Sales = 882000/12= 72,500
Required inventory = 72,500*127%= 90650
Beginning inventory of the component = 90650-(880,000-870,000) = 80,650
JB Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Answer:
$984,061.12
Explanation:
The computation of sales revenue under the worst-case scenario is shown below:-
Sales revenue under the worst-case scenario = Quantity sold × Price
= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)
= (1,600 - 48) × ($647 - 12.94)
= 1,552 × 634.06
= $984,061.12
Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.
Evaluate the statement “Accounting is all about numbers.". Using the definition of accounting to justify your answer.
Explanation:
Accounting is not all about numbers. For accounting is characterized as the entire process of recording financial transactions of an organization.
Some of the accounting activities are the summary and analysis of accounting information to economic entities, as well as communicating non-financial information such as those that can impact people and the environment.
You are an experienced small business owner who would like to become a franchisee of Quick Burger, a nationwide franchise of fast food restaurants. There are some Quick Burger restaurants in your area, but not so many that another franchise would be profitable. Before joining the franchise, you want to make sure that the essential terms are clear to both parties. Discuss potential issues you would need to resolve before entering into a franchise contract with Quick Burger.
Answer:
In the situation in question, there are various things that need to be settled until the license contract is signed into. The first problem is the clarification on the territorial features of the company when separate branches of the very same network run which that create friction.
The second problem is the range, vocabulary, and style of franchise marketing strategies as heavy marketing, may damage one another's franchise consumers, and may harm the company in general. The third problem is the localisation-based exchange of information with both the franchise.
Whether it be the unified business center or customers that decide. Not considering it, could hurt the new franchisor. The fourth problem seems to be the exchange with other franchises of company data or data from my current customer base to support them.
Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement:
O+ a. Increase in accounts payable
F- b. Payment of dividends
O- c. Decrease in accrued liabilities
F+ d. Issuance of common stock
O- e. Gain on sale of building
O+ f. Loss on sale of land
O+ g. Depreciation expense
O- h. Increase in merchandise inventory
O+ i. Decrease in accounts receivable
I- j. Purchase of equipment
Answer:
O+ a. Increase in accounts payable
F- b. Payment of dividends
O- c. Decrease in accrued liabilities
F+ d. Issuance of common stock
O- e. Gain on sale of building
O+ f. Loss on sale of land
O+ g. Depreciation expense
O- h. Increase in merchandise inventory
O+ i. Decrease in accounts receivable
I- j. Purchase of equipment
Explanation:
The requirement of the question is to indicate whether each of the items is an addition to addition to net income (O+) or subtraction (O-) under operating activities section, investing activity (cash inflow I+), (cash outflow I-),financing activity (cash inflow F+), (cash outflow F-) and activity not used to prepare the cash flows.
All the signs above are correct.
The standards for product V28 call for 8.2 pounds of a raw material that costs $19.00 per pound. Last month, 2,100 pounds of the raw material were purchased for $39,480. The actual output of the month was 230 units of product V28. A total of 2,000 pounds of the raw material were used to produce this output.The direct materials purchases variance is computed when the materials are purchased.Required:a. What is the materials price variance for the month
Answer:
$420 favorable
Explanation:
The computation of the material price variance is shown below:
Material price variance = Actual quantity × (Actual price - standard price)
= 2,100 pounds × ($39,480 ÷ 2,100 pounds - $19)
= 2,100 pounds × ($18.8 - $19)
= 2,100 pounds × $0.20
= $420 favorable
Since the standard price is greater than the actual price so it would lead to favorable variance
Windsor Co. is building a new hockey arena at a cost of $2,420,000. It received a down payment of $510,000 from local businesses to support the project, and now needs to borrow $1,910,000 to complete the project. It therefore decided to issue $1,910,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%.
Prepare the journal entry to record the issuance of the bonds on January 1, 2019.
Answer:
Dr Cash $2,032,577.26
Cr premium on bonds payable $122,577.26
Cr bonds payable $1,910,000
Explanation:
First and foremost the proceeds received from the bond issuance needs to determine the pv formula in excel as follows:
=-pv(rate,nper,pmt,fv)
rate is the yield to maturity of 9%
nper is the number of annual coupons payable by the bond which is 10
pmt is the amount of annual coupon i.e $1,910,000*10%=$191000
fv is the face value of the bond which is $1,910,000
=-pv(9%,10,191000,1910000)=$2,032,577.26
premium on bonds issuance= 2,032,577.26-1,910,000.00= $122,577.26
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:
Answer:
Dr Cash 105,600
Dr Compensation Expense 14,400
Cr Common Stock 10,000
Cr Paid-In Capital – Excess of Par 110,000
Explanation:
KL Corp Journal entry
Dr Cash 105,600
Dr Compensation Expense 14,400 (10,000*12*12%)
Cr Common Stock 10,000 (10,000*1)
Cr Paid-In Capital – Excess of Par 110,000
(10,000*(12-1))
Cost per click is a measure in which
a. a fixed amount of money is paid to a site for posting an ad for a finite amount of time.
b. a fixed amount of money is paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser's website.
c. a fixed amount of money is paid to the site for every sale that originated from an ad posted on that site.
d. a fixed amount of money is paid for every 1,000 times an ad load, up to $100 a month.
e. a fixed discount is given to a visitor for clicking on an ad.
Answer:
A fixed amount of money is paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser's website.
Explanation:
Cost per click is the amount of money that is paid to an advertiser each time somebody clicks on their ad. It is as a result of the various charges that are incurred when a particular user clicks on an advertisement found on search engine pages and is then directed to website of the advertiser.
Creating an effective marketing strategy is very important inorder to be one step ahead of the various competitors. Google ad is responsible for taking decisions on how helpful an ad is to individuals searching for a particular keyword. This helps to determine the amount that will be charged on each cost per click.
Every time a visitor clicks on an ad and navigates from that page to the advertiser's website, the website receives a set amount of money. Hence option B is correct.
The sum of money given to an advertiser each time someone clicks on their ad is known as the cost per click. It is due to the numerous fees that are incurred when a specific user clicks on an advertisement that is displayed on search engine results pages and is then forwarded to the advertiser's website.
To stay one step ahead of the competition, it is crucial to have an effective marketing strategy. The decision-making authority for determining how useful an advertisement is to those looking for a specific keyword is G. Ad.
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Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory costing $620 for $960 on account?A. Inventory 620Cost of Goods Sold 620Sales Revenue 960Accounts Receivable 960B. Accounts Receivable 960Sales Revenue 960Cost of Goods Sold 620Inventory 620C. Inventory 620Gain 340Sales Revenue 960D. Accounts Receivable 960Sales Revenues 620Gain 340
Answer:
B. Accounts Receivable 960
Sales Revenue 960
Cost of Goods Sold 620
Inventory 620
Explanation:
Under perpetual inventory system the sale is recorded separately by sale value and the cost of the sold inventory is deducted from the inventory and added in the cost of goods sold.
Ne benefit of $340 (960-620) is automatically recorded and it will be measure at end of the period by formatting the income statement. It does not need to be recorded separately.
On May 1, 2020, Riverbed Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $990 in advance on May 15, 2020. Kickapoo pays Riverbed on May 15, 2020, and Riverbed delivers the mower (with cost of $648) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Riverbed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer and Explanation:
The journal entries are shown below:
On May 1
No journal entry is required as the Riverbed Inc entered into a contract for delivering of the specialty mowers to Kickapoo Landscaping Co which do not required any kind of entry because there is no need to record the entry that contains any type of contract entered
Demand for consumer goods is necessarily variable. Forecasting the demand for consumer goods is an important business activity, as all businesses have to plan ahead. Manufacturer of consumer goods has been studying the demand for one of their products and the level of demand is given in the following stem and leaf plot, where stem unit is 100 and leaf unit is 10. Stem Leaf 1 1, 2, 3, 4.5, 5, 6, 7, 7, 9, 9.5 2 0, 0, 0, 0, 0, 0, 0, 0, 1, 1, 2, 4, 5, 7, 9 3 0, 0, 0, 2, 8 4 5 0 6 7 8 0 9 10 11 12 0 The outer fences are ___________.
Answer:
7.5 to 467.5.
Explanation:
Please note that In order to be fast, I make use of excel during the Calculation.
So, the first thing to do is to make sure that the observation is arranged in an increasing order.
Step one: Calculate the value for J1 and J3.
Know that J1 = J3. Where J3 = 3rd quartile.
Hence, J1 = 1st QUARTILE = QUARTILE. EXC (data, 1) = 18.
Also, J3 = QUARTILE. EXC(data, 3). = 29.5.
Therefore, the difference between the first quartile and the third QUARTILE = 29.5 - 18 = 11.5.
Step two: calculate the value for the higher fence and the lower fence respectively.
Thus, for the higher fence we have;
J3 + 1.5( 11.5).
= 29.5 + 1.5(11.5).
= 46.75.= (46.75 × 10) = 467.5).
Then, for the lower fence;
J1 - 1.5( 11.5).
= 18 - 1.5(11.5).
= 0.75 = (.75 × 10) = 7.5.
How are foreign exchange rates determined
Answer:
Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. ... 5 Therefore, most exchange rates are not set but are determined by on-going trading activity in the world's currency markets.
Answer: market forces for. a p e x
Explanation:
just did that bro
Assume that an economy is initially in long-run equilibrium. Explain the short-run effect of monetary policy that causes an increase in interest rates. As a result of higher interest rates, the A. long-run aggregate supply curve will shift left. B. aggregate demand curve will shift left. C. short-run aggregate supply curve will shift left. D. aggregate demand curve will shift right. The new equilibrium will be A. where the original aggregate demand curve intersects the original short-run aggregate supply curve. B. where the new aggregate demand curve intersects the original short-run aggregate supply curve. C. where the new aggregate demand curve intersects the original aggregate demand curve.
Answer:
As a result of higher interest rates, the
B. aggregate demand curve will shift left.The new equilibrium will be
B. where the new aggregate demand curve intersects the original short-run aggregate supply curve.Explanation:
A contractionary monetary policy will increase the interest rates, lowering investment and consumption. This will result in a leftward shift of the aggregate demand curve.
The new equilibrium (E1) will be at the point where the new aggregate demand curve (AD1) intersects the original short run aggregate supply curve (SRAS) and the long run aggregate supply curve (LRAS).
71. When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except a. recognize that there is an ethical issue in the decision. b. apply ethical theories to reasonable alternatives. c. publicize the options you rejected with your reasons. d. reflect on the outcome of the decision once it is made
Answer:
The Correct Option of the given scenario is "C - Publicize the options you rejected with your reasons".
Explanation:
While creating business selection it is ought to seek for the philosophies and integrities. However, don't create it public the explanations of captivating some choices as they are having dissimilarities in philosophies which might drawback your businesses.
Answer: c. publicize the options you rejected with your reasons.
Explanation:
Under the Profit Maximisation theory where ethical behaviour does not necessarily benefit the company and the corporate citizenship theory that describes just how a company contributes to society, all the above are methods applied execpt the publication of the options rejected with reasons.
This is because certain things need to remain confidential for the protection of individuals and reputations as well as to avoid scrutiny because a Company's methodology might not be the methodology that a number of people would subscribe to.
Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above the two towns of Vanee and Keno. The marginal cost of producing these updates is zero (with zero fixed costs) and the inverse demand for these updates in Vanee is p = 42-q and p = 9-q in Keno. Suppose that in each of the two towns, all of the demand comes from one customer. Andy cannot identify which customer is which. To get around this, he creates two kinds of packages, one containing 42 updates and one containing 9. He allows his customers to simply buy one and only one of the kind of package that they prefer. What is the maximum price Andy could charge for the large package if he wants the Vanee customer to buy the package of 42 and the Keno customer to buy the package of 9?
Answer:
Explanation:
He will charge for smaller package Equal to consumer surplus of keno customer with q = 9
Price of small package = 1 / 2 * 9 * 9
=40.5
If veno willingness to pay for 9 updates is
= 1 / 2 * 9 * 9 + 9 * (42 - 9)
= 40.5 + 9 * 33
= 40.5 + 297 = 337.5
So he will get surplus of (337.5 - 40.5 = 297 by buying smaller package.
Veno willingness to pay for larger package = 1/2 * 42 * 42 = 882
To make veno buy larger package ,andy need to make sure that veno also get same CONSUMERs surplus by buying larger package.
So price for larger package = 882 - 297 = 585
On April 1, 2017, Pharoah Company issued $990,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31.
Answer:
(a)
April 1, 2017
Dr. Cash $990,000
Cr. Bond Payable $990,000
(b)
July 1, 2017
Dr. Interest Expense $59,400
Cr. Cash $59,400
(c)
December 31, 2017
Dr. Interest Expense $59,400
Cr. Interest on Bond Payable $59,400
Explanation:
Bond issued is a liability as company receives cash against the issuance of bond which will be repaid on a specific time.
Interest is calculated using Face value and coupon ate of the bond. As the interest is being paid semiannually, so interest expense will be as follow after each 6 months.
Interest Expense = $990,000 x 12% x 6/12 = $59,400
As the payment of the loan will be made on January 1, So on December 31 at the year end interest expense accrual is recorded according to the accrual concept of accounting. A liability of Interest on Bond Payable is arose and it will be paid on January 1.
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances.
To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement:
- O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year
- O'Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $7,000, whichever is larger. All remaining income is credited to Reese.
- Neither partner is allowed to withdraw funds from the partnership during 2013. Thereafter, each can draw $5,000 annually or 20 percent of the beginning capital balance for the year, whichever is larger.
The partnership reported a net loss of $8,000 during the first year of its operation. On January 1, 2014, Terri Dunn becomes a third partner in this business by contributing $10,000 cash to the partnership. Dunn receives a 20 percent share of the business's capital. The profit and loss agreement is altered as follows:
- O'Donnell is still entitled to (1) interest on his beginning capital balance as well as (2) the share of partnership income just specified.
- Any remaining profit or loss will be split on a 5:5 basis between Reese and Dunn, respectively.
Partnership income for 2014 is reported as $64,000. Each partner withdraws the full amount that is allowed. On January 1, 2015, Dunn becomes ill and sells her interest in the partnership (with the consent of the other two partners) to Judy Postner. Postner pays $75,000 directly to Dunn. Net income for 2015 is $64,000 with the partners again taking their full drawing allowance On January 1, 2016, Postner withdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnership at any time and is entitled to receive cash in an amount equal to the recorded capital balance at that time plus 10 percent
a. Prepare journal entries to record the preceding transactions on the assumption that the bonus (or no revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)
b. Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)
You pay $20,800 to the Laramie Fund which has a NAV of $18.00 per share at the beginning of the year. The fund deducted a front-end load of 3.00%. The securities in the fund increased in value by 12% during the year. The fund's expense ratio is 1.50% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year
Answer:
6.92%
Explanation:
Beginning investment fund is $20,800.
Now, fund available= Beginning fund(1-front end load)
=20,800(1-0.03)=$20176
Now, the number of shares that can be brought with the available fund
[tex}\text{Number of shares}=\frac{\text{fund available}}{NAV_{beginning}}[/tex]
[tex]=\frac{20176}{18}[/tex]
=1120
Now calculating closing NAV
NAV(closing)=NAV(beginning)=(1+increased%)
=$18(1+12%)=18×1.12
=$20.16
Calculate year end asset value
Year end asset value =NAV(closing)×No. of shares
=$20.16×1120=$22579.2
Value of investment after deducting the expense ratio
Closing investment value = Year end asset value×(1-expense ratio)
=$22579.2×(1-1.5%)
=$22240.512
Now,
Return on the fund =[(closing investment value)-(Beginning investment fund)]÷Beginning investment fund
=(22240.512-20800)÷20800
=0.0692
or, 6.92%
Runner Sprintz, a particular brand of shoes, has its own website, myrunnersprintz that welcomes consumers to "the Runner Sprintz Century," invites readers to post their Runner Sprintz stories, and offers a wide variety of shoes for direct purchase. The site even allows customers to individually design their own shoes and share them among their circles on the website. Which of the following best describes myrunnersprintz? A. corporate website B. blog C. Web directory D. digital catalog E. branded community website
Answer:
E. branded community website
Explanation:
-Corporate website is a website that is used to provide information about a company or brand.
-Blog is a site in which you can publish informal content in the form of articles that are called posts.
-Web directory is a list of sites published online.
-Digital catalog is an online publication that shows the products or services offered by a business.
-Branded community website is a website created by a company in which it tries to connect with the group of people that are fans of the brand and provide a space that is controlled by the company in which they can share ideas and give feedback.
According to this, the answer is that the option that best describes myrunnersprintz is branded community website.
Wayne Industries is building a new prototype riding lawnmower especially for women. The marketing strategy for the product has been developed and presented. The lawnmower is now being tested rigorously. This step will ensure that the product meets all the CPSC product specifications and leaves little chance for any product liability issues. Which step int he new product development process is this?
A) After this stage, no changes can be made in any aspect of the product design, features, or composition.
B) At this stage, the functional features and the intended psychological characteristics are combined.
C) The new product at this stage can be distributed through a full-scale roll-out immediately.
D) The new lawnmower is at the introductory stage of the lifecycle.
E) The new-product idea is at the last stage of the development process.
Answer:
The answer is option E) The new-product idea is at the last stage of the development process.
Explanation:
The are several stages in the development of a new product idea. Beginning with initial idea generation all the way to the final evaluation stage.
The new prototype riding lawnmower especially for women designed by Wayne Industries is at the last stage of the development process.
The last stage of the development process also known as the Evaluation phase is characterized by:
Presenting the marketing strategy developed for the product.ensuring that the product meets all the CPSC product specifications and leaves little chance for any product liability issues.Jordon and Heidi share income equally. For the current year, the partnership net income is $40,000. Jordon made withdrawals of $14,000, and Heidi made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Jordon, Capital, $40,000; Heidi, Capital, $58,000. Jordon's capital account balance at the end of the year is a.$46,000 b.$68,000 c.$74,000 d.$54,000
Answer:
a.$46,000
Explanation:
A partner ship account records the transactions related to partnership. All transaction of withdrawal, Profit allocation etc. are recorded to determine the closing balance of each partner.
Ending Capital Balance = Beginning Capital balance + Income allocation for the year - withdrawals
Jordon's Ending Capital Balance = $40,000 + ( $40,000 x 0.5 ) - $14,000
Jordon's Ending Capital Balance = $40,000 + $20,000 - $14,000
Jordon's Ending Capital Balance = $46,000
(1) Reporting of Capital Assets. Are capital assets reported as a line-item in the government-wide statement of net position? Are nondepreciable capital assets reported on a separate line from depreciable capital assets, or are they separately reported in the notes to the financial statements? Do the notes include capital asset disclosures, such as those for the City and County of Denver shown in Illustration 5–2? Does the disclosure show beginning balances, increases and decreases, and ending balances for each major class of capital assets, as well as the same information for accumulated depreciation for each major class? Are these disclosures presented separately for the capital assets of governmental activities, business-type activities, and discretely presented component units? Do the notes specify capitalization thresholds for all capital assets, including infrastructure? Do the notes show the amounts of depreciation expense assigned to each major function or program for governmental activities at the government-wide level? Are the depreciation policies and estimated lives of major classes of depreciable assets disclosed? Do the notes include the entity’s policies regarding capitalization of collections of works of art and historical treasures? If collections are capitalized, are they depreciated?
Answer:
Principal resources are reported as a line-item within the management wide declaration of net situation. Non-depreciable principal resources are individually reported within the proceedings to the money declarations. The revealing expressions starting equilibriums, will increase and reduces, and finish stabilities for every main category of principal assets, yet because the same info for accrued devaluation for every key category. These revelations are given individually for the wealth assets of administrative actions, occupational sort actions, and unnoticeably given part units. The summaries stipulate capitalization inceptions for all principal assets, together with arrangement. The summaries display the quantities of devaluation expenditure assigned to every major operate or package for administrative actions at the government-wide flat. The decline strategies and calculable lives of main categories of depreciable resources are released. Summaries do reveal the strategies relating to capitalization of assortment of skills and historic materials if some. These collectibles aren't criticized however market price of those art effort is measured to reason gain/ injury at the year finish. Accounting strategies for possessions no inheritable underneath capita tenancy are obviously mere
Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are $4 per quart for ice cream, $3 per bottle of shampoo, and $2 per jar of peanut butter, what was the economy's GDP in year 1? What was its GDP in year 2?
Answer:
$21
$30
Explanation:
GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP in year 1 = (3 × $4) + (1 ×$3 ) + (3 x $2) =$21
GDP in year 2 = ( 5 x $4) + (2 x$3 ) + (2 x $2) = $30
I hope my answer helps you
