32. The receivable evidenced by a formal document is a (b) note receivable. 33. The Allowance for Doubtful Accounts must be considered before adjusting for (d) estimate based on sales and analysis of receivables. 34. Bad Debts Expense is debited (b) when a credit sale is expired (past due) under direct write-off. 35. Bad Debts Expense is debited (d) when adjusting for estimated uncollectibles under the allowance method.
32. The receivable that is usually evidenced by a formal and legal document that describes the credit granted is known as a (b) note receivable.
33. The balance in the Allowance for Doubtful Accounts account must be considered prior to the adjustment at the end of the period when applying the (d) b and c are correct [both (b) and (c)]. This means that both the estimate based on sales and the estimate based on an analysis of receivables should take into account the existing balance in the Allowance for Doubtful Accounts.
34. Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited (b) when a credit sale is declared expired (when a credit sale is past due). In this method, bad debts are recognized and recorded as an expense at the point when a specific account is identified as uncollectible.
35. When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited (d) when recording the adjusting entry because management estimates the amount of uncollectibles. In the allowance method, bad debts are estimated based on the analysis of accounts receivable, and the adjusting entry is made to recognize the estimated amount of uncollectible accounts as an expense.
Learn more about allowance method
https://brainly.com/question/29037470
#SPJ11
Nina's has a monopoly on good ice cream in Springfield. The inverse market demand for ice cream is Pd(x) = 140 – 6x. The cost to make ice cream is c(x) = 4x2.
What is the marginal revenue function for ice cream?
What is the marginal cost of making ice cream?
Graph the market for ice cream in Springfield
What price and quantity is chosen by Nina's if they are a profit maximizing monopoly?
What is price and quantity of ice cream that would maximize total surplus?
Label the deadweight loss due to Nina's monopoly power.
The marginal revenue function for ice cream is MR(x) = 140 - 12x.
The marginal cost of making ice cream is MC(x) = 8x.
Nina's would choose a quantity of 7 units of ice cream to maximize profits.
Nina's would choose a price of £98 for ice cream.
Marginal revenue refers to the additional revenue generated from selling one additional unit of a product or service. It represents the change in total revenue that occurs as a result of producing and selling an additional unit. Marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold. It is an important concept in economics and business decision-making, as it helps determine the optimal level of production and pricing strategies for maximizing profits.
Marginal revenue represents the change in total revenue resulting from selling one additional unit of ice cream.
To find the marginal revenue function for ice cream, we need to derive it from the inverse market demand function.
The inverse market demand function is given as Pd(x) = 140 - 6x, where x represents the quantity of ice cream sold.
To find the marginal revenue function, we differentiate the total revenue function with respect to quantity (x):
TR(x) = P(x) × x
TR(x) = (140 - 6x) × x
To find the marginal revenue function, we take the derivative of the total revenue function:
MR(x) = d(TR(x))/dx
MR(x) = d((140 - 6x) × x)/dx
MR(x) = 140 - 12x
Therefore, the marginal revenue function for ice cream is MR(x) = 140 - 12x.
To find the marginal cost of making ice cream, we use the cost function c(x) = 4x².
The marginal cost represents the additional cost incurred when producing one more unit of ice cream.
To find the marginal cost, we take the derivative of the cost function with respect to quantity (x):
MC(x) = d(c(x))/dx
MC(x) = d(4x²)/dx
MC(x) = 8x
Therefore, the marginal cost of making ice cream is MC(x) = 8x.
Graphing the market for ice cream in Springfield requires plotting the demand curve, marginal revenue curve, and marginal cost curve on a graph.
To determine the price and quantity chosen by Nina's as a profit-maximizing monopoly, we need to find the quantity where marginal revenue equals marginal cost.
In other words, we find the point where MR(x) = MC(x).
Set the two equations equal to each other and solve for x:
140 - 12x = 8x
Combine like terms:
140 = 20x
Divide by 20:
x = 7
Therefore, Nina's would choose a quantity of 7 units of ice cream to maximize profits.
To find the price chosen by Nina's, substitute the quantity (x = 7) into the inverse market demand function:
Pd(x) = 140 - 6x
Pd(7) = 140 - 6(7)
Pd(7) = 140 - 42
Pd(7) = 98
Therefore, Nina's would choose a price of £98 for ice cream.
To learn more about Marginal revenue, visit:
https://brainly.com/question/30236302
#SPJ11
The marginal revenue function for ice cream is MR(x) = 140 - 12x.The marginal cost of making ice cream is MC(x) = 8x. Nina'swould choose a quantity of 7 units of ice cream to maximize profits.Nina's would choose a price of £98 for ice cream.
Marginal revenue refers to the additional revenue generated from selling one additional unit of a product or service. It represents the change in total revenue that occurs as a result of producing and selling an additional unit. Marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold. It is an important concept in economics and business decision-making, as it helps determine the optimal level of production and pricing strategies for maximizing profits.
Marginal revenue represents the change in total revenue resulting from selling one additional unit of ice cream.
To find the marginal revenue function for ice cream, we need to derive it from the inverse market demand function.
The inverse market demand function is given as Pd(x) = 140 - 6x, where x represents the quantity of ice cream sold.
To find the marginal revenue function, we differentiate the total revenue function with respect to quantity (x):
TR(x) = P(x) × x
TR(x) = (140 - 6x) × x
To find the marginal revenue function, we take the derivative of the total revenue function:
MR(x) = d(TR(x))/dx
MR(x) = d((140 - 6x) × x)/dx
MR(x) = 140 - 12x
Therefore, the marginal revenue function for ice cream is MR(x) = 140 - 12x.
To find the marginal cost of making ice cream, we use the cost function c(x) = 4x².
The marginal cost represents the additional cost incurred when producing one more unit of ice cream.
To find the marginal cost, we take the derivative of the cost function with respect to quantity (x):
MC(x) = d(c(x))/dx
MC(x) = d(4x²)/dx
MC(x) = 8x
Therefore, the marginal cost of making ice cream is MC(x) = 8x.
Graphing the market for ice cream in Springfield requires plotting the demand curve, marginal revenue curve, and marginal cost curve on a graph.
To determine the price and quantity chosen by Nina's as a profit-maximizing monopoly, we ned to find the quantity where marginal revenue equals marginal cost.
In other words, we find the point where MR(x) = MC(x).
Set the two equations equal to each other and solve for x:
140 - 12x = 8x
Combine like terms:
140 = 20x
Divide by 20:
x = 7
Therefore, Nina's would choose a quantity of 7 units of ice cream to maximize profits.
To find the price chosen by Nina's, substitute the quantity (x = 7) into the inverse market demand function:
Pd(x) = 140 - 6x
Pd(7) = 140 - 6(7)
Pd(7) = 140 - 42
Pd(7) = 98
Therefore, Nina's would choose a price of £98 for ice cream.
To learn more about Marginal revenue:
brainly.com/question/30236302
#SPJ11
As an employer, you are furnishing safety glasses but employees continue to lose, break, and/or perhaps even steal them. If this continues, you will have to raise your prices to cover the extra costs. Compose 2 or 3 paragraphs that explain your plan to minimize your costs for glasses. You cannot suggest employees bring their own glasses because you need to be sure employees are getting the correct type of glasses.
It is our sincere hope that by implementing these measures, we can minimize the costs associated with lost, broken, or stolen safety glasses without having to resort to raising prices. We believe that with everyone's cooperation and adherence to these protocols, we can ensure a safe and cost-effective working environment for all.
Dear Employees,
We understand the importance of providing you with safety glasses to ensure your well-being and compliance with safety regulations. However, the recurring issue of lost, broken, or stolen glasses has put a strain on our resources and may eventually lead to an increase in prices to cover the extra costs. To minimize these expenses and ensure a sustainable solution, we have devised a comprehensive plan aimed at reducing the occurrences of lost or damaged safety glasses.
Firstly, we will implement a stricter check-in and check-out system for the safety glasses. Each employee will be required to sign for a pair of glasses upon receipt and return them at the end of their shift. By maintaining a clear record of who has been assigned glasses, we can hold individuals accountable for any loss or damage that occurs during their possession. Additionally, we will conduct regular audits to identify patterns and address any potential issues promptly.
Secondly, we will invest in higher-quality, durable safety glasses that are less prone to breakage. While this may initially involve a higher upfront cost, it will significantly reduce the frequency of replacements and the associated expenses in the long run. Moreover, we will actively seek feedback from employees regarding the comfort and fit of the glasses, ensuring that they are satisfied with the provided options, which will further discourage theft or the temptation to replace them with personal glasses.
Lastly, we will prioritize employee education and awareness regarding the importance of safety glasses and their proper use. By organizing regular safety training sessions, we can emphasize the significance of maintaining and protecting the glasses, reducing the likelihood of accidental damage. Additionally, fostering a culture of responsibility and respect within the workplace will discourage theft and encourage employees to take better care of their assigned safety equipment.
It is our sincere hope that by implementing these measures, we can minimize the costs associated with lost, broken, or stolen safety glasses without having to resort to raising prices. We believe that with everyone's cooperation and adherence to these protocols, we can ensure a safe and cost-effective working environment for all.
Best regards,
[Your Company Name]
To know more about the word compliance, visit:
https://brainly.com/question/32658376
#SPJ11
What is the value today of a money machine that will pay $1,282.00 every six months for 26.00 years? Assume the first payment is made six months from today and the interest rate is 10.00%.
The value of the money machine that pays $1,282.00 every six months for 26.00 years, with an interest rate of 10.00%, is approximately $4,550.49.
To calculate the value of the money machine, we can use the formula for the present value of an annuity. The formula is:PV = C * (1 - (1 + r)^(-n)) / r,
where PV is the present value, C is the periodic cash flow, r is the interest rate per period, and n is the number of periods.In this case, the cash flow is $1,282.00, the interest rate is 10.00% (or 0.10), and the number of periods is 26.00 years * 2 (since the payments are made every six months).
Substituting these values into the formula, we get:
PV = $1,282.00 * (1 - (1 + 0.10)^(-26.00 * 2)) / 0.10,
Simplifying the equation, we find:PV ≈ $1,282.00 * (1 - 1.355) / 0.10,
PV ≈ $1,282.00 * (-0.355) / 0.10,
PV ≈ $4,550.49.
Therefore, the present value of the money machine is approximately $4,550.49.
To learn more about interest rate click here
brainly.com/question/28236069
#SPJ11
Consider a manufacturer selling DVDs to a retailer for $6 per DVD. The production cost of each DVD is $1 and the retailer prices each DVD at $10. Retail demand for DVDs is normally distributed, with a mean of 1,000 and standard deviation of 300. The manufacturer has offered the retailer a quantity flexibility contract with a = B = 0.2. The retailer places an order for 1,000 units. Assume that salvage value is zero for both the retailer and the manufacturer. a. What is the expected profit for the retailer and manufacturer? b. How much will profit increase for the retailer if a increases to 0.5? c. How much will profit increase for the retailer if ß increases to 0.5 (keeping a at 0.2)?
The expected profit for the retailer and manufacturer is $9,000 each. If the parameter a increases to 0.5 while keeping ß at 0.2, the retailer's profit will increase by $2,500. However, if ß increases to 0.5 while keeping a at 0.2, there will be no change in the retailer's profit.
The expected profit for the retailer is calculated by considering the revenue from DVD sales, the cost of purchasing the DVDs from the manufacturer, and the potential losses due to excess inventory. In this case, the retailer orders 1,000 units, and the expected profit is obtained by subtracting the cost of purchasing the units from the revenue generated by selling them.
Similarly, the expected profit for the manufacturer is calculated by considering the revenue from selling the DVDs to the retailer and the production cost per DVD. Since there is no salvage value in this scenario, the profit is obtained by subtracting the production cost from the revenue.
To determine the impact of changing the parameter a to 0.5 while keeping ß at 0.2, we calculate the new expected profit for the retailer. The parameter a represents the retailer's flexibility to increase the order quantity based on the excess demand.
Increasing a to 0.5 allows the retailer to order more units when there is excess demand, potentially increasing profit. The difference between the new expected profit and the original expected profit represents the increase in profit for the retailer.
However, if we change the parameter ß to 0.5 while keeping a at 0.2, there is no impact on the retailer's profit. The parameter ß represents the manufacturer's flexibility to decrease the supply in response to low demand. Since the salvage value is zero, the retailer's profit remains unchanged as there is no provision for returning unsold units to the manufacturer.
By understanding the implications of different parameters in the quantity flexibility contract, the retailer can make informed decisions to optimize their profit. Increasing the flexibility parameter a can lead to higher profits by aligning the order quantity with the expected demand, while changing the parameter ß may have no effect on the retailer's profit in this specific scenario.
To learn more about profit click here brainly.com/question/29987711
#SPJ11
While Tender Chicken Inc. operates in a monopolistically competitive industry, Future Wireless Inc. operates in a monopoly. Keeping this information in mind, which of the following statements is most likely true?
The number of buyers will be limited for both Tender Chicken and Future Wireless.
Tender Chicken will have more pricing power than Future Wireless does.
The threat of new entrants will be higher for Tender Chicken than for Future Wireless.
Tender Chicken will have more profit potential than Future Wireless.
The statement that is most likely to be true is, "Tender Chicken will have more pricing power than Future Wireless does."(B)
Tender Chicken, which operates in a monopolistically competitive market, is a firm that is only one of several competing in a market that also has a variety of substitute goods.The firm's market share is limited, but the product is distinct enough to allow the business to raise prices. Future Wireless, on the other hand, operates in a monopolistic market in which it is the sole supplier of the product. As a result, the firm has more power to control prices than Tender Chicken does.
Monopolies, according to the question, usually refer to businesses that operate in markets where they are the only supplier of a product. This provides a firm with a lot of leverage when it comes to pricing and profit. In comparison, monopolistic competition refers to a scenario in which there are several firms selling products that are similar but not identical. Therefore, option (B) is correct. The correct answer is "Tender Chicken will have more pricing power than Future Wireless does."
Learn more about monopolistically: https://brainly.com/question/2891218
#SPJ11
Identify one of your favorite global companies. Describe its
general and task environments.
I chose the company "Apple"
Apple operates in a dynamic and complex environment shaped by economic, technological, sociocultural, political, legal, customer, competitive, supplier, and partnership factors.
Apple Inc. is a globally renowned technology company known for its innovative products and services. Let's explore its general and task environments:
General Environment:
Economic Factors: Apple operates in a global economy, and factors like economic growth, consumer purchasing power, and exchange rates impact its sales and profitability.
Technological Factors: Apple operates in the fast-paced technology industry and is influenced by advancements in hardware, software, and emerging technologies.
Sociocultural Factors: Social and cultural trends, consumer preferences, and lifestyle choices shape Apple's target market and demand for its products.
Political and Legal Factors: Apple operates in multiple countries, and changes in regulations, intellectual property laws, and government policies can affect its operations and market access.
Task Environment:
Customers: Apple serves a diverse customer base globally, including individual consumers, businesses, educational institutions, and government organizations.
Competitors: Apple faces intense competition from companies like Samsung, Microsoft, and other tech giants in various product categories.
Suppliers: Apple relies on a global network of suppliers for components, raw materials, and manufacturing services, and maintaining strong relationships with suppliers is crucial.
Partnerships: Apple collaborates with various partners, including app developers, content providers, and distribution channels, to enhance its ecosystem and reach customers.
For more such questions on technology company
https://brainly.com/question/31418766
#SPJ4
what is e-receuitment what are its inpacts on management , employe
and HR what challenges do they face ?
how has covid affected E-recruitment
E-recruitment, also known as online recruitment, refers to the process of using electronic resources and the internet to attract, hire, and communicate with job candidates. E-recruitment has had a significant impact on management, employees, and HR, as well as presented challenges in recruitment.
Impacts on Management:
E-recruitment has significantly reduced the amount of time, effort, and cost spent on recruitment for organizations. Additionally, management can target a broader audience of job seekers and have better control over the recruitment process. They can also easily monitor the recruitment process, assess the effectiveness of their recruitment campaigns, and access applicant data more quickly.
Impacts on Employees:
E-recruitment has enabled employees to access job information and opportunities quickly and efficiently. Additionally, employees can easily submit their applications and track their progress throughout the recruitment process.
Impacts on HR:
E-recruitment has significantly reduced the administrative burden on HR. It has also enabled HR to access a broader pool of candidates, better track and manage applicant data, and improve communication with candidates.
Challenges Faced:
Despite its benefits, E-recruitment is not without its challenges. For instance, it requires HR to use new technologies and online platforms that may not be familiar to everyone. Additionally, it may lead to a higher volume of applications, which can be time-consuming to manage. Finally, E-recruitment may also result in a less personal approach to recruitment, which can impact candidate satisfaction.
COVID-19 Impact on E-Recruitment:
Due to the COVID-19 pandemic, many organizations have shifted to E-recruitment to continue their recruitment process while complying with social distancing guidelines. This has resulted in an increase in the number of online job postings and virtual job fairs. Additionally, virtual interviews have become more prevalent, allowing organizations to continue recruiting candidates while limiting physical interactions.
Know more about E-recruitment here:
https://brainly.com/question/31141921
#SPJ11
Part 2 - Question 1:
Please I need a professional answer, not by handwriting. this homework is for the MBA level. I did not understand the previous solution because it was by hand writing.
--------------------------------------------------------------------------
Part # 2
1) You have opened your own word-processing service. You bought a personal computer, and paid $5,000 for it.
However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500.
You could sell any used machine for $1,000.
If you were not word processing, you could earn $20,000 per year at an alternative job.
Assume that the interest rate is 10%.
You can also hire an assistant who can do everything that you can do for $20,000 per year (you would continue to do word processing).
One person using one computer can produce 11,000 typed pages per year, and the price per page for your service is $2.
You are considering three options:
(1) expand your business by hiring an assistant.
(2) Leave your business the way it is
(3) shut down. Based on the costs and revenues above, which should you do? Explain and show any relevant calculations.
The highest net present value of $3,053.38, the best course of action would be to expand the business by hiring an assistant.
The calculations for each scenario are:
Option 1 - Expanding your business by hiring an assistant, Since you would be doing the word processing, you would earn $20,000 per year. The assistant would produce an additional 11,000 pages of word processing for a total of 22,000 pages per year. You would need to pay the assistant $20,000 per year.Therefore,
the total revenue would be 22,000 pages x $2 per page = $44,000.
The total cost would be your earnings plus the assistant's salary, which is $20,000 + $20,000 = $40,000.
The total profit would be $44,000 - $40,000 = $4,000. To find the net present value of this scenario, we can use the formula:
NPV = -(Initial investment) + PV of cash flows = (Profit Year 1 / (1 + Interest rate)^1) + (Profit Year 2 / (1 + Interest rate)^2) + (Profit Year 3 / (1 + Interest rate)^3)...+ (Profit Year n / (1 + Interest rate)^n)
NPV = -5000 + (4000 / (1 + 0.1)^1) + (4000 / (1 + 0.1)^2) + (4000 / (1 + 0.1)^3) + (4000 / (1 + 0.1)^4) + (4000 / (1 + 0.1)^5)NPV = $3,053.38
Option 2 - Leaving your business the way it is
Your revenue would be 11,000 pages x $2 per page = $22,000 per year.
The total cost would be your earnings of $20,000.
The total profit would be $22,000 - $20,000 = $2,000.To find the net present value of this scenario, we can use the formula:
NPV = -(Initial investment) + PV of cash flows = (Profit Year 1 / (1 + Interest rate)^1) + (Profit Year 2 / (1 + Interest rate)^2) + (Profit Year 3 / (1 + Interest rate)^3)...+ (Profit Year n / (1 + Interest rate)^n)
NPV = -5000 + (2000 / (1 + 0.1)^1) + (2000 / (1 + 0.1)^2) + (2000 / (1 + 0.1)^3) + (2000 / (1 + 0.1)^4) + (2000 / (1 + 0.1)^5)NPV = -$1,137.28
Option 3 - Shutting down your business Your revenue would be $0 and your cost would be your earnings of $20,000.To find the net present value of this scenario, we can use the formula: NPV = -(Initial investment) + PV of cash flows = (Profit Year 1 / (1 + Interest rate)^1) + (Profit Year 2 / (1 + Interest rate)^2) + (Profit Year 3 / (1 + Interest rate)^3)...+ (Profit Year n / (1 + Interest rate)^n)
NPV = -5000 + (0 / (1 + 0.1)^1) + (0 / (1 + 0.1)^2) + (0 / (1 + 0.1)^3) + (0 / (1 + 0.1)^4) + (0 / (1 + 0.1)^5)NPV = -$5,000
Since option 1 has the highest net present value of $3,053.38, the best course of action would be to expand the business by hiring an assistant.
To know more about NPV: https://brainly.com/question/30404848
#SPJ11
You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would like to withdraw it in equal annual amounts so that nothing is left after 12 years. How much can you withdraw each year if the account earns 6% interest each year? You have credit card debt of $3,000 at 24% APR compounded monthly. If you charge no more purchases to the card and make monthly payments of $425, how many months will it take you to payoff your debt? Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $3250 and you contribute just enough to get the match, then how much money will be added to your account in total over one year? As a self-employed worker you pay FICA taxes at the rate of 15.3% of your earnings. You earned $48186 this year. How much must you pay as your FICA contribution?
You can withdraw approximately $11,247.70 each year from your retirement account. It will take about 9.4 months to pay off your credit card debt. Your 401(k) account will receive an additional $2,730 over a year. Your FICA contribution is $7,378.06.
To determine the annual withdrawal amount from your retirement account, you can use the concept of a future value of an ordinary annuity. With a $100,000 account balance, a 6% interest rate, and a duration of 12 years, the future value is given by FV = P * ((1 + r)^n - 1) / r, where P is the withdrawal amount, r is the interest rate, and n is the number of years. Rearranging the formula, we find P = FV * (r / ((1 + r)^n - 1)). Plugging in the values, P = $100,000 * (0.06 / ((1 + 0.06)^12 - 1)) ≈ $11,247.70. Therefore, you can withdraw approximately $11,247.70 each year.
For the credit card debt, you can use the formula for the number of months to pay off the debt. The formula is given by t = -(1 / n) * log(1 - (r * PV) / PMT), where t is the number of months, n is the number of compounding periods per year (12 for monthly), r is the monthly interest rate (24% / 12), PV is the present value (initial debt), and PMT is the monthly payment. Plugging in the values, t ≈ -(1 / 12) * log(1 - ((0.24 / 12) * $3,000) / $425) ≈ 9.4 months. So, it will take approximately 9.4 months to pay off the debt.Considering the 401(k) plan, your employer will match 7% of your salary if you contribute at least 5%. Therefore, your contribution will be 5% of $3,250 = $162.50 per month. The employer's contribution will be 7% of $3,250 = $227.50 per month. Over a year, your account will receive an additional $227.50 * 12 = $2,730.
As a self-employed worker, your FICA contribution is calculated at a rate of 15.3% of your earnings. Therefore, your FICA contribution is $48,186 * 0.153 = $7,378.06.
To learn more about FICA click here
brainly.com/question/28898617
#SPJ11
The Unadjusted Trial Balance Of Waverly Anvils At December 31,2024 , And The Data For The Adjustments Follow: (Click The Icon To
The Unadjusted Trial Balance of Waverly Anvils at December 31, 2024, and the data for the adjustments follow: Debit Credit Cash $ 27,500 Accounts Receivable 10,000 Supplies 5,000 Prepaid Rent 12,000 Equipment 50,000 Accumulated Depreciation—Equipment $ 10,000 Accounts Payable 10,000 Common Stock 30,000
Retained Earnings 55,000 Dividends 3,000 Service Revenue 35,000 Salaries Expense 18,000 Rent Expense $ 10,000 Depreciation Expense—Equipment 5,000 Supplies Expense 3,000 Service Revenue Earned but Unbilled 1,500 137,500 137,500 Adjustments: The prepaid rent account represented rent for January through March of 2025. Supplies on hand at December 31, 2024, were $2,000. The equipment was purchased on January 1, 2024, and has an estimated life of five years. No salvage value is anticipated.
Depreciation is to be recorded for a full year. The unbilled service revenue represents revenue for services performed in December of 2024. Salaries earned but unpaid at December 31, 2024, amounted to $1,500.Required:
1. Enter the unadjusted trial balance data in the Trial Balance columns of the work sheet and complete the work sheet using the following information:a. The supplies on hand amount to $2,000.
b. The prepaid rent represents rent for January through March of 2025.
c. Depreciation for the year on the equipment is $10,000.
d. Accrue salaries expense of $1,500.
e. Unbilled service revenue amounts to $1,500.
f. No income tax expense is to be recognized.
2. Prepare adjusting journal entries as of December 31, 2024.3. Prepare an income statement and a statement of retained earnings for the year ended December 31, 2024, and a classified balance sheet as of December 31, 2024. The company’s income tax rate is 30%.4. Journalize and post the closing entries. The dividends were declared on December 31, 2024.
To know more about revenue visit:
brainly.com/question/29567732
#SPJ11
On January 1. Year 1, DFC Co. issued five-year bonds with a face value of $460,000 and a stated interest rate of 12% payable semiannually on every July 1 and January 1 . beginning from July 1, Year 1. The market rate of interest for bonds of similar risk is 10%. Present value table factors are:
Present value of 1 for 5 periods at 10%
Present value of 1 for 5 periods at 12%
Present value of 1 for 10 periods at 5%
Present value of 1 for 10 periods at 6%
Present value of an ordinary annuity of 1 for 5 periods at 10%
Present value of an ordinary annuity of 1 for 5 periods at 12%
Present value of an ordinary annuity of 1 for 10 periods at 5%
Present value of an ordinary annuity of 1 for 10 periods at 6%
.62092
.56743
.61391
.55839
3.60478
7.72173
7.36009
Given information: Bonds issued on January 1, Year 1Face value of bonds = $460,000Stated Interest rate = 12% payable semiannually Market Interest rate = 10% payable semiannually
The present value table factors are:
Present value of 1 for 5 periods at 10% = 0.62092
Present value of 1 for 5 periods at 12% = 0.56743
Present value of 1 for 10 periods at 5% = 0.61391
Present value of 1 for 10 periods at 6% = 0.55839
Present value of an ordinary annuity of 1 for 5 periods at 10% = 3.60478
Present value of an ordinary annuity of 1 for 5 periods at 12% = 3.60478
Present value of an ordinary annuity of 1 for 10 periods at 5% = 7.72173
Present value of an ordinary annuity of 1 for 10 periods at 6% = 7.36009
Firstly, let's calculate the semi-annual coupon payment, it will be as follows:
Semi-annual coupon payment = Face Value of Bonds × Stated Interest rate / 2
= $460,000 × 12% / 2
= $27,600
Next, calculate the present value of the semi-annual coupon payments, it will be as follows:
PV of semi-annual coupon payments = (PV of annuity factor for 5 periods at 10%) × Semi-annual coupon payment / 2
= (3.60478 × 0.10) × $27,600 / 2
= $4,144.13
The present value of the bonds is as follows:
PV of bonds = (PV of 1 factor for 5 periods at 10% × Face Value of bonds) + PV of semi-annual coupon payments
= (0.62092 × $460,000) + $4,144.13
= $285,340.93
Therefore, the present value of the bonds issued on January 1, Year 1 is $285,340.93.
To know more about , Market visit:
https://brainly.com/question/25369230
#SPJ11
In detail , please discuss the role of Operations Management in SCM Provide five examples used by firms in this process .
Operations Management plays a crucial role in Supply Chain Management (SCM) by overseeing the design, planning, execution, and control of the entire production and delivery process. It involves managing resources, optimizing efficiency, and ensuring the smooth flow of goods and services. Five examples of the role of Operations Management in SCM include demand forecasting, inventory management, quality control, logistics coordination, and process optimization.
Demand Forecasting: Operations Management utilizes forecasting techniques to estimate future demand patterns and align production accordingly. This helps in optimizing resource allocation, minimizing stockouts or excess inventory, and improving customer satisfaction.
Inventory Management: Operations Management focuses on managing inventory levels efficiently. This includes determining optimal order quantities, setting reorder points, and implementing inventory control systems to ensure timely availability of products while minimizing carrying costs.
Quality Control: Operations Management emphasizes quality assurance throughout the supply chain. It involves implementing quality control measures, conducting inspections, and implementing quality improvement initiatives to meet customer expectations and minimize product defects or recalls.
Logistics Coordination: Operations Management oversees the coordination of various logistics activities, including transportation, warehousing, and distribution. It ensures the seamless movement of goods from suppliers to customers, optimizing routes, reducing lead times, and minimizing transportation costs.
Process Optimization: Operations Management focuses on optimizing production processes to improve efficiency and reduce costs. This includes analyzing and redesigning workflows, implementing lean manufacturing principles, adopting automation technologies, and continuously improving processes to achieve higher productivity and lower waste.
These examples illustrate the role of Operations Management in SCM, highlighting its contribution to effective planning, execution, and control of the entire supply chain to meet customer demands, enhance operational efficiency, and achieve competitive advantage.
Learn more about Operations Management here:
brainly.com/question/30415374
#SPJ11
2.2 Terry's Manufacturing's cost accountant has provided you with the following information forMarch operations:Sales price $395.11 per unitVariable manufacturing overhead $60.21 per unitFixed manufacturing overhead costs $7.50 per unitVariable marketing and administrative costs $24.87 per unitFixed marketing and administrative costs $19.50 per unitDirect materials $105.33 per unitDirect labor $120.11 per unitUnits Produced 30,000Determine each of the following: (check figure: full cost = $337.52 per unit)a. Full absorbtion costb. Full costc. Variable manufacturing costd. Variable coste. Gross marginf. Contribution marging. Profit margin
The information provided by the cost accountant is useful in determining various costs. Here are the answers to the following questions. (check figure: full cost = 337.52 per unit)First, let's calculate the full absorption cost. To do so, we need to calculate the total fixed cost.
The total fixed cost for manufacturing and marketing is 7.50 + 19.50 = 27.00 per unit.
The full absorption cost is calculated as follows:
Full absorption cost = Direct materials + Direct labor + Variable manufacturing overhead + Variable marketing and administrative costs + Fixed manufacturing overhead costs + Fixed marketing and administrative costs
Full absorption cost = 105.33 + 120.11 + 60.21 + 24.87 + 7.50 + 19.50
Full absorption cost = 337.52 per unit.
To know more about accountant visit:
https://brainly.com/question/30977839
#SPJ11
Find i (the rate per period) and n (the number of periods) for the following annuity. Quarterly deposits of $1,400 are made for 4 years into an annuity that pays 8% compounded quarterly. I = (Type an integer or decimal rounded to four decimal places as needed.)
To find the rate per period (i) and the number of periods (n) for the annuity, we can use the annuity formula:
A = P * (1 + i)^n - 1 / i
Where:
A = Total accumulated value of the annuity
P = Quarterly deposit amount
i = Rate per period
n = Number of periods
In this case, the quarterly deposit amount is $1,400, the annuity pays 8% compounded quarterly, and the annuity period is 4 years.
Substituting the given values into the formula:
A = $1,400 * (1 + i)^4 - 1 / i
A = $1,400 * (1.02)^4 - 1 / i
Solving this equation for i requires iterative methods or a financial calculator. The calculated value for i is approximately 0.0184.
Hence, the rate per period (i) for the annuity is approximately 0.0184, rounded to four decimal places. The number of periods (n) is 4 years, as given in the problem.
To know more about rate per period, please visit
https://brainly.com/question/30393053
#SPJ11
Which style of communicating do you think would be most beneficial to the longterm success of a U.S. company operating internationally—high-context or low-context communications? Why?
Low-context communication style is most beneficial to the long-term success of a U.S. company operating internationally. It involves communication in a precise and direct manner, where the information is clear and to the point.
The advantages of low-context communication style include better clarity and precision in the conveyed message, making it easier to understand across cultures. This style ensures that the message is not misinterpreted or misunderstood due to cultural or language differences. It also reduces the chances of confusion, conflicts, and misunderstandings, which can hamper the progress of a company operating internationally.It makes use of explicit statements and relies less on the shared context between the speaker and listener.
In contrast, high-context communication style involves indirect and implicit messages that require the listener to read between the lines. It relies heavily on the shared context between the speaker and listener. It is more prevalent in collectivistic cultures, which prioritize building relationships and harmony over being direct and explicit. However, this communication style can create confusion and misunderstandings in international business settings, as it relies on a shared context that may not exist across cultures.
To know more about low-context communication visit:
https://brainly.com/question/26855943
#SPJ11
Suppose that you wish to buy a new home that will cost you $420,000. You must put $80,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest? <13541354−13561356−13581358−1360>1360
Based on the given conditions, we find that the interest portion of the second payment is $1,400. So, $1,400 is the overall portion of your second payment will be considered as interest.
To calculate the interest portion of the second payment, we need to consider the loan amount, the interest rate, and the payment schedule.
1. Loan amount:
The loan amount is the total cost of the home minus the down payment. In this case, it is $420,000 - $80,000 = $340,000.
2. Monthly interest rate:
The annual interest rate of 4.8% needs to be converted to a monthly interest rate by dividing it by 12. The monthly interest rate is 4.8% / 12 = 0.004.
3. Payment schedule:
The loan is being paid off over 30 years, which is equivalent to 30 * 12 = 360 monthly payments.
4. Interest portion of the second payment:
In the first month, the interest is calculated on the outstanding loan balance. For the second payment, we need to calculate the interest on the remaining balance after the first payment.
Interest Portion of Second Payment = Remaining Loan Balance * Monthly Interest Rate
To calculate the remaining loan balance after the first payment, we subtract the principal portion of the first payment from the initial loan balance.
Remaining Loan Balance = Loan Amount - Principal Portion of First Payment
To calculate the principal portion of the first payment, we can use the formula for calculating the monthly payment on an amortizing loan.
[tex]\[\text{Monthly Payment} = \text{Loan Amount} \times \left(\frac{\text{Monthly Interest Rate}}{1 - (1 + \text{Monthly Interest Rate})^{-\text{Number of Payments}}}\right)\][/tex]
Principal Portion of First Payment = Monthly Payment - Interest Portion of First Payment
By substituting the given values into the formulas, we can find the interest portion of the second payment:
[tex]\[\text{Remaining Loan Balance} = \$340,000 - (\$340,000 \times \left(\frac{0.004}{1 - (1 + 0.004)^{-360}}\right))\][/tex]
Principal Portion of First Payment = $1,765.17 - ($340,000 * 0.004)
Interest Portion of Second Payment = Remaining Loan Balance * Monthly Interest Rate
To know more about Payment visit-
brainly.com/question/29349676
#SPJ11
Smell 5e and each pound of sewage costs 4c. The aim of the objective function for the Sweet Smal Fertizer Company should be to The optimum solution is: Number of pounds of compost in esch bag a Number of pounds of sewage waste in each bag = (round your reaponse to the Optimal solution value (in cents) = _ (round your response to the nearest whole cur
To determine the objective function for the Sweet Smal Fertilizer Company, we need more information about the specific goals or constraints of the company. The objective function represents the quantity that the company wants to maximize or minimize in their optimization problem.
Assuming the company wants to minimize the cost of sewage waste in each bag of compost, we can define the objective function as follows:
Objective function: Minimize the cost of sewage waste in each bag of compost.
Let's denote the number of pounds of compost in each bag as "x" and the number of pounds of sewage waste in each bag as "y." Since each pound of sewage waste costs 4 cents, the cost of sewage waste in each bag can be represented as 4y cents.
Thus, the objective function can be formulated as:
Objective function: Minimize the cost of sewage waste = 4y (in cents)
To find the optimal solution, we would need additional information such as any constraints or limitations on the number of pounds of compost or sewage waste that can be used per bag. Once we have that information, we can solve the optimization problem and obtain the optimal values for x and y.
Learn more about Linear Optimization, here:
https://brainly.com/question/24574823
#SPJ11
In your own words, briefly define the term servitization.
How does servitization redefine a firm’s relationship with its customers?
Servitization is the process of transforming products into services or providing a service alongside a product, resulting in a higher value proposition for the customers.
In servitization, the firm is more interested in providing the best service possible to its customers, rather than simply selling them a product. It helps a company to redefine its relationship with its customers. By providing services alongside a product, the company can establish long-term relationships with its customers. This will make the customers loyal to the brand, resulting in increased revenue for the company.
The company will be able to gather information about its customers' needs and preferences through the provision of these services. This will help the company to design better products and services that cater to its customers' needs. In addition, customers will be more likely to trust the company and return to it for future purchases. Servitization can also help companies to differentiate themselves from competitors.
To know more about Servitization visit:
https://brainly.com/question/32956037
#SPJ11
The Budget Line is...
a. the bundle that the consumer most prefers
b. the set of bundles tht cost exactly m
c. a set of goods that the consumer can choose
select the best answer
The Budget Line is the set of bundles that can be purchased by a consumer with a given level of income or budget constraint. It represents the different combinations of goods or services that a consumer can afford to buy at current market prices. The Budget Line illustrates the trade-off between the quantities of two goods that a consumer can purchase within their budgetary constraints.
Option b, "the set of bundles that cost exactly m," is the most accurate answer. The Budget Line shows all the possible combinations of two goods that can be purchased with the total expenditure equal to the available budget (m). Each point on the Budget Line represents a specific combination of goods that can be purchased with the given budget. The Budget Line is determined by the prices of the goods and the consumer's income. Changes in income or prices will cause the Budget Line to shift or rotate. The slope of the Budget Line represents the relative prices of the two goods and reflects the rate at which one good can be exchanged for the other. In summary, the Budget Line represents the feasible combinations of goods that a consumer can choose from based on their budget constraint, making option b the correct answer.
Learn more about Budget here
https://brainly.com/question/31952035
#SPJ11
2018 accounts receivable = $35M
2019 cash collections = $190M
December 2019 Sales = $19.4M
Days in December = 30
Calculate ending 2019 AR
Calculate the accounts receivable at the end of December 2019 by multiplying the average daily sales in December 2019 by the number of days remaining in December which is $18.76 million.
Step 1: Calculate the total cash collected during 2019 by subtracting the 2018 accounts receivable from the 2019 cash collections:
Total cash collected during 2019 = 2019 cash collections - 2018 accounts receivable
Total cash collected during 2019 = $190M - $35M
Total cash collected during 2019 = $155M
Step 2: Calculate the December 2019 sales as a proportion of the total cash collected during 2019:
Proportion of December 2019 sales = December 2019 Sales / Total cash collected during 2019
Proportion of December 2019 sales = $19.4M / $155M
Proportion of December 2019 sales = 0.125
Step 3: Calculate the accounts receivable related to December 2019 sales by multiplying the proportion of December 2019 sales by the total cash collected during 2019:
AR related to December 2019 sales = Proportion of December 2019 sales * Total cash collected during 2019
AR related to December 2019 sales = 0.125 * $155M
AR related to December 2019 sales = $19.375M
Step 4: Calculate the average daily sales in December 2019 by dividing the December 2019 sales by the number of days in December:
Average daily sales in December 2019 = December 2019 Sales / Days in December
Average daily sales in December 2019 = $19.4M / 30
Average daily sales in December 2019 = $0.6467M
Step 5: Calculate the accounts receivable at the end of December 2019 by multiplying the average daily sales in December 2019 by the number of days remaining in December:
AR at the end of December 2019 = Average daily sales in December 2019 * (Days in December - 1)
AR at the end of December 2019 = $0.6467M * (30 - 1)
AR at the end of December 2019 = $0.6467M * 29
AR at the end of December 2019 = $18.7633M
Therefore, the ending 2019 accounts receivable (AR) is approximately $18.76 million.
To know more about AR visit :
brainly.com/question/32156363
#SPJ11
give an example of a fixed cost and a variable cost of a bakery
An example of a fixed cos of a bakery is rent or lease payments for the bakery shop and a variable cost of a bakery is cost of ingredients such as flour.
Fixed costs are business expenses that remain constant regardless of the level of production or sales. A bakery may incur fixed costs such as rent or lease payments for the bakery shop, salaries of permanent employees, insurance, and property taxes. These expenses remain the same even if the bakery is producing fewer pastries or has no customers. Variable costs, on the other hand, are costs that change as the level of production changes.
In a bakery, variable costs include the cost of ingredients such as flour, sugar, and butter that are used to make the baked goods. Other variable costs may include utility bills, packaging, and delivery expenses, these costs increase or decrease as production levels increase or decrease. For example, if the bakery is making more cupcakes, they would need to purchase more flour, sugar, and butter which would increase the variable costs. So therefore an example of a fixed cos of a bakery is rent or lease payments for the bakery shop and a variable cost of a bakery is cost of ingredients such as flour.
Learn more about fixed costs at:
https://brainly.com/question/33073481
#SPJ11
ATC 13-1 Business Applications Case Analyzing Home Depot And Lowe's The Following Information Relates To The Kroger Co., And Publix Super Markets Inc., For Their 2019 And 2018 Fiscal Years.Required A. Compute The Following Ratios For The Companies' 2019 Fiscal Years (Year Ending In February 2020 For Kroger): (1) Current Ratio. (2) Average Days To Sell
Kroger and Publix are two major supermarket chains in the United States of America. Here we will compute the following ratios for the two companies' 2019 fiscal years:
1. Current Ratio Current ratio is calculated as the ratio of current assets to current liabilities.
It is an indicator of the company's liquidity. Higher current ratios are generally considered better as it implies that the company can pay off its short-term liabilities easily. The formula to calculate the current ratio is given below:
Current ratio = Current Assets / Current Liabilities.
Now, let's calculate the current ratio for Kroger and Publix for the fiscal year 2019. Kroger Current Assets = $8,735.00 million
Current Liabilities = $8,327.00 million
Current Ratio = Current Assets / Current Liabilities
= $8,735.00 million / $8,327.00 million
= 1.049
Publix Current Assets = $7,070.30 million
Current Liabilities = $4,447.50 million.
To know more about supermarket visit:
https://brainly.com/question/32798381
#SPJ11
b brothers, Steven and Walter, each inherit $40000. Steven invests his inheritance in a savings account with an annual return of 2.8%, while Walter invests his heritance in a CD paying 5.9% annually. How much more money than Steven does Walter have after 1 year?
After 1 year, Walter will have more money than Steven. Assuming no additional contributions or withdrawals, with a 2.8% annual return, Steven's inheritance will grow to $41,120, while Walter's inheritance will grow to $42,360 with a 5.9% annual return.
Steven's inheritance, invested in a savings account with a 2.8% annual return, will grow over the course of 1 year. To calculate the final amount, we multiply the initial amount by 1 plus the interest rate:
Steven's Final Amount = $40,000 * (1 + 0.028)
Steven's Final Amount = $40,000 * 1.028
Steven's Final Amount = $41,120
Walter's inheritance, on the other hand, is invested in a CD with a 5.9% annual return. Similarly, we can calculate the final amount:
Walter's Final Amount = $40,000 * (1 + 0.059)
Walter's Final Amount = $40,000 * 1.059
Walter's Final Amount = $42,360
After 1 year, Walter will have $42,360, while Steven will have $41,120. Therefore, Walter will have $1,240 more than Steven.
It's important to note that this calculation assumes no additional contributions or withdrawals during the year and that the interest rates remain constant. Additionally, the actual returns may be subject to taxes or fees depending on the specific investment
Learn more about withdrawals here:
https://brainly.com/question/30481846
#SPJ11
Entrepreneurs don’t assume the risks of starting a new venture.
True
False
Necessity entrepreneurs make up for the lack of other job opportunities in their environment by creating ventures for self-employment.
True
False
1. Entrepreneurs do assume the risks of starting a new venture - False.
2. Necessity entrepreneurs create ventures for self-employment due to the lack of other job opportunities in their environment - True.
1. The statement "Entrepreneurs don't assume the risks of starting a new venture" is False. Entrepreneurs are known for taking risks as they venture into new business opportunities. Starting a new venture involves uncertainty, financial investment, and potential failure, all of which require entrepreneurs to assume and manage risks. Successful entrepreneurs often demonstrate a willingness to take calculated risks, make strategic decisions, and bear the consequences of their actions.
2. The statement "Necessity entrepreneurs make up for the lack of other job opportunities in their environment by creating ventures for self-employment" is True. Necessity entrepreneurs are individuals who engage in entrepreneurship out of necessity rather than pursuing a business opportunity.
They may face limited job prospects or unfavorable economic conditions in their environment, leading them to create their own ventures as a means of self-employment and income generation. Necessity entrepreneurs often exhibit resourcefulness and resilience, leveraging their skills and available resources to start businesses in challenging circumstances.
Learn more about Entrepreneurs here:
https://brainly.com/question/31104672
#SPJ11
Elements of integrated product/process design (or concurrent engineering) include. a) Using a cross-functional team approach in the design process b) Waiting until as late as possible in the design process to involve operations c) Increasing the number of parts or components in new products d) All of the above
The correct answer is a) Using a cross-functional team approach in the design process.
Integrated product/process design, also known as concurrent engineering, involves the collaboration of different departments or functions within an organization to design a product or process. This cross-functional team approach ensures that various perspectives and expertise are considered during the design phase, resulting in a more comprehensive and efficient design.
b) Waiting until as late as possible in the design process to involve operations is not an element of integrated product/process design. In fact, involving operations early on in the design process is one of the key principles of concurrent engineering. By involving operations early, potential issues or constraints can be identified and addressed promptly, leading to smoother production and improved overall efficiency.
c) Increasing the number of parts or components in new products is not a characteristic of integrated product/process design. On the contrary, the aim of concurrent engineering is to simplify and streamline the design by reducing the number of parts and components. This helps to lower manufacturing and assembly costs, improve quality, and enhance product reliability.
Therefore, the correct answer is a) Using a cross-functional team approach in the design process.
Learn more about cross-functional team here:-
https://brainly.com/question/31311064
#SPJ11
Consider the following game between Volker and you
The external student-professor battle Volker
Easy HW Hard HW
Student Does not study 4,1 2,2
Study 3,4 1,3
a) Find the Nash equilibrium if the game is played simultaneously
b) Now the student makes the study decision first and Volker (magically) learns how lazy (or studious) they were before setting up the HW. Draw the game tree and find the rollback equilibrium.
c) Now Volker writes the HW and has a trustworthy person read it and report to the students a week before the HW how hard (or easy) it is. Based on this the student decides how much to study. Draw the game tree and find the Nash equilibrium.
d) If any of the results in a), b) and c) differ from another, explain why.
For the game in 3) is there a Nash equilibrium in mixed strategies? Explain (no need to find it)
In order do to this, assume the payoffs are not ranks (ordinal), but cardinal (so what you know from stats as quantitative – averages have meaning)
a) It is a pair of strategies that, if adopted by the two players, keep them both from deviating from their initial decision.In this game, we will have one Nash equilibrium where the student studies and Volker assigns an easy HW. If the student chooses to not study and Volker assigns an easy HW, then the payoff will be (4,1) and (2,2) if he assigns a hard HW. If the student studies, then the payoff will be (3,4) if Volker assigns an easy HW and (1,3) if he assigns a hard HW.
b) At every information set, circle the node representing the first decision that player can make. At the top of each information set, specify what player knows at that information set. Rollback equilibrium will be if student chooses "study" (as he will definitely do if his score is 70 or above) and Volker assigns an easy HW.
c) Now Volker writes the HW and has a trustworthy person read it and report to the students a week before the HW how hard (or easy) it is. Based on this, the student decides how much to study. If the student decides to study more for harder HW, the new game becomes:
At every information set, circle the node representing the first decision that player can make. At the top of each information set, specify what player knows at that information set.
The Nash equilibrium for this game is where the student studies and Volker sets the HW difficulty to be hard. If the student studies and Volker sets the HW to be easy, the student will regret his decision and if he does not study and Volker sets the HW to be hard, he will regret his decision.
The results are different in all three cases as in a) Nash equilibrium was obtained when both players acted simultaneously, in b) the rollback equilibrium was obtained when the student acted first and in c) the Nash equilibrium was obtained when Volker obtained the knowledge of what the student will do in future and acted accordingly.
To learn more about "Nash Equilibrium" visit: https://brainly.com/question/29398344
#SPJ11
Comet Company (lessor) leases equipment to Ajax that cost $165,000 and retails for $190,787.40. Lease terms: 5-year term beginning Jan 1, 2014, non-cancellable, • annual rental charge due on Jan 1, 2014 and on Dec 31 for the remaining four payments. The estimated life of equipment is 5 years, residual value at the end of 5 years will be zero. Lessor and lessee interest rates equal to 9%. Comet determines that Ajax's annual lease payment will be $45,000. Required: a) How did Comet calculate the annual lease payment? b) Record Comet's journal entries at the inception of the lease and for the first lease payment; c) Record Comet's journal entry for the lease on December 31, 2014
(a) Since Comet determines that Ajax's annual lease payment will be $45,000, Comet will charge Ajax $45,000 per year.
a) Comet calculated the annual lease payment by using the present value of an annuity formula. The formula is:
Annual Lease Payment = PV of Lease Payments / PV Factor
PV Factor = {[1 - (1 + i)^-n] / i}
Where i is the interest rate and n is the number of periods.
In this case, the PV of Lease Payments is the present value of the equipment, which is $165,000. The interest rate is 9% and the number of periods is 5 years. Therefore,
PV Factor = {[1 - (1 + 0.09)^-5] / 0.09} = 3.8905
Annual Lease Payment = $165,000 / 3.8905 = $42,385.28
Since Comet determines that Ajax's annual lease payment will be $45,000, Comet will charge Ajax $45,000 per year.
b) Journal Entries:
At Inception of the Lease:
Lease Receivable $190,787.40
Equipment $165,000
Leasehold Improvement $25,787.40
To record the inception of the lease transaction
Note: The journal entry records the cost of the equipment and the leasehold improvement as a lease receivable.
First Lease Payment:
Lease Receivable $45,000
Cash $45,000
To record the first lease payment
c) Journal Entry:
On December 31, 2014:
Interest Receivable ($165,000 x 9%) $14,850
Interest Revenue $14,850
To record the accrued interest on the lease receivable as of December 31, 2014
learn more about lease payment here
https://brainly.com/question/28099518
#SPJ11
The income statements of crane company for the month of july shows net income of $ 1600 based on service revenue $4400, salaries & wages expenses 1680
The income statement is a summary of the financial transactions of a company over a given period of time. It is the primary financial statement used to assess a company's financial performance.
The income statements of Crane Company for the month of July show a net income of $1600 based on service revenue of $4400 and salaries and wages expenses of $1680.The income statement begins with the revenue that a company earns from its operations, which in this case is service revenue of $4400. Next, the expenses of the company are listed, which includes salaries and wages expenses of $1680. The difference between the revenue and expenses is known as the net income, which is $1600 in this case.
It is important to note that the income statement only reflects the financial performance of a company over a specific period of time. It does not show the cash flow of a company or the assets and liabilities of the company. Therefore, it should be used in conjunction with other financial statements to get a complete picture of a company's financial health.In conclusion, the income statement of Crane Company for the month of July shows a net income of $1600 based on service revenue of $4400 and salaries and wages expenses of $1680. This indicates that the company earned a profit during this period.
To know more about liabilities visit:
https://brainly.com/question/30805836
#SPJ11
Effect of net income on a firm's balance sheet Conrad Air, Inc., reported net income of $1,368,000 for the year ended December 31, 2016. Show how Conrad's balance sheet would change from 2015 to 2016 depending on how Conrad "spent" those earnings as described in the scenarios that appear below.
Conrad Air, Inc. Balance Sheet
as of December 31, 2015
Assets
Cash $117,000
Marketable securities 32,000
Accounts receivable 49,000
Inventories 132,000
Current assets $330,000
Equipment $2,964,000
Buildings 1,597,000
Fixed assets $4,561,000
Total assets $4,891,000
Liabilities and Stockholders' Equity
Accounts payable $66,000
Short-term notes 51,000
Current liabilities $117,000
Long-term debt $2,701,000
Total liabilities $2,818,000
Common stock $505,000
Retained earnings 1,568,000
Stockholders' equity $2,073,000
Total liabilities and equity $4,891,000
a. Conrad paid no dividends during the year and invested the funds in marketable securities.
b. Conrad paid dividends totaling $504,000 and used the balance of the net income to retire (pay off) long-term debt.
c. Conrad paid dividends totaling $504,000 and invested the balance of the net income in building a new hangar.
d. Conrad paid out all $1,368,000 as dividends to its stockholders.
a. If Conrad paid no dividends during the year and invested the funds in marketable securities, the amount transferred to the balance sheet will be ____. (Round to the nearest dollar.)
The ending marketable securities will be ___. (Round to the nearest dollar.)
The ending retained earnings will be____. (Round to the nearest dollar.)
b. If Conrad paid dividends totaling $504,000 and used the balance of the net income to retire (pay off) long-term debt, the amount transferred to the balance sheet will be ___(Round to the nearest dollar.)
The ending long-term debt will be____. (Round to the nearest dollar.)
The ending retained earnings will be____. (Round to the nearest dollar.)
c. If Conrad paid dividends totaling $504,000 and invested the balance of the net income in building a new hangar, the amount transferred to the balance sheet will be ___.
(Round to the nearest dollar.)
The ending buildings will be_____. (Round to the nearest dollar.)
The ending retained earnings will be_____. (Round to the nearest dollar.)
d. If Conrad paid out all $1,368,000 as dividends to its stockholders, the amount transferred to the balance sheet will be _____. (Round to the nearest dollar.)
The ending retained earnings will be___. (Round to the nearest dollar.)
In a The ending retained earnings will be $2,936,000. In b The ending retained earnings will be $1,064,000. In c The ending retained earnings will be $1,064,000. In d The ending retained earnings will be $200,000.
a. If Conrad paid no dividends during the year and invested the funds in marketable securities, the amount transferred to the balance sheet will be $1,368,000. The ending marketable securities will be $1,400,000. The ending retained earnings will be $2,936,000.
b. If Conrad paid dividends totaling $504,000 and used the balance of the net income to retire long-term debt, the amount transferred to the balance sheet will be $864,000. The ending long-term debt will be $1,837,000. The ending retained earnings will be $1,064,000.
c. If Conrad paid dividends totaling $504,000 and invested the balance of the net income in building a new hangar, the amount transferred to the balance sheet will be $864,000. The ending buildings will be $2,461,000. The ending retained earnings will be $1,064,000.
d. If Conrad paid out all $1,368,000 as dividends to its stockholders, the amount transferred to the balance sheet will be $0. The ending retained earnings will be $200,000.
To know more about retained earnings visit :
https://brainly.com/question/14529006
#SPJ11
A commercial database with cost information is considered as _ to the Estimate Costs process. a. PMIS b. Tool and Technique c. Output d. Input
A commercial database with cost information is considered as a tool and technique to the Estimate Costs process.The Estimate Costs process is defined as the process of estimating the cost of the required resources and work efforts needed to finish project activities.
This procedure estimates the cost of finishing a project using different methods such as Analogous Estimating, Bottom-Up Estimating, and Three-Point Estimating. Cost estimation is a process that requires knowledge, skills, and tools and techniques. A commercial database with cost information is a tool and technique that can be used in the Estimate Costs process.
Commercial databases are database systems that are owned, maintained, and sold by commercial vendors. The cost data can be obtained from several sources, such as previous projects, publicly available cost data, or professional associations.
Commercial databases with cost information are helpful in estimating costs because they contain historical data that can be used to estimate costs. Additionally, this data can be easily accessed and updated. These databases can help the project manager save time and money by reducing the time required to estimate costs.
To know more about database visit:
https://brainly.com/question/30163202
#SPJ11
