A sample regression function is a model that describes the relationship between a dependent variable and one or more independent variables.
It is obtained from a sample of data and is used to make predictions about the population. On the other hand, the population regression function is the true underlying relationship between the dependent variable and the independent variables. The sample regression function is an estimate of the population regression function based on the sample data available.
The repeated sampling view of statistical hypothesis testing states that if we were to take many random samples from the population and perform the same hypothesis test on each sample, the resulting p-values would have a distribution known as the sampling distribution of the p-value. This view helps us understand the probability of obtaining a certain result by chance alone.
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Shameless Promotion Company provides outdoor sales event management and equipment, including inflatable signs and large tents, for auto dealerships. The business is quite seasonal, earning over 40 percent of its revenue during the summer months. Sales have grown by over 20% during each of the last three years, and as a result, the level of the company's CORE accounts receivable at its winter low point has also grown significantly. The company expects sales to level off as they reach market saturation in about five years.
Which credit facility would be most appropriate to finance this increasing level of core accounts receivable?
The most appropriate credit facility to finance the increasing level of core accounts receivable for Shameless Promotion Company would be a revolving line of credit.
A revolving line of credit is a flexible credit facility that allows businesses to borrow funds up to a predetermined limit and repay them as needed. This type of credit facility would be suitable for Shameless Promotion Company due to its seasonal nature and fluctuating accounts receivable levels. With over 40 percent of revenue earned during the summer months and consistent growth in sales, the company experiences a higher level of accounts receivable during its peak season. A revolving line of credit would provide the company with access to funds during this period to manage its working capital needs, such as purchasing inventory, covering operating expenses, and managing cash flow. As the accounts receivable level grows during the peak season, the company can borrow against the line of credit to bridge any temporary cash flow gaps. Once the peak season ends and accounts receivable start to decline, the company can repay the borrowed funds. The revolving nature of this credit facility allows for flexibility in borrowing and repayment, making it suitable for Shameless Promotion Company's seasonal business model.
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The shareholders' equity of MLS Enterprises includes $220 million of no par common stock and $440 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $52 million in 2021 after paying $18 million cash dividends in both 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021?
The amount of dividends common shareholders will receive in 2021 is $34 million. This is calculated by subtracting the cumulative preferred stock dividends ($18 million) from the total declared cash dividends ($52 million).
The preferred stock dividends of $18 million are paid to preferred shareholders, leaving $34 million ($52 million - $18 million) to be distributed among common shareholders as dividends in 2021.
To understand the calculation, let's break it down step by step:
1. The total amount of cash dividends declared by the board of directors in 2021 is $52 million.
2. Prior to 2021, the company paid cash dividends of $18 million in both 2020 and 2019. These dividends were also distributed among the shareholders.
3. The $440 million of 5% cumulative preferred stock entitles the preferred shareholders to receive a fixed dividend of 5% of their investment annually. However, the question does not specify the number of preferred shares outstanding or the par value of each share.
4. To determine the amount of dividends common shareholders will receive in 2021, we need to subtract the dividends paid to the preferred shareholders from the total declared cash dividends. Since the question does not provide any information about the preferred stock dividends for 2021, we assume there were no changes in the preferred stock dividend payments.
5. Therefore, we subtract the previously paid preferred stock dividends of $18 million from the total declared cash dividends of $52 million: $52 million - $18 million = $34 million. hence, the amount of dividends common shareholders will receive in 2021 is $34 million.
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An annuity providing a rate of return of 6.0% compounded monthly was purchased for $57,000. The annuity pays $520 at the end of each month. How much of Payment 37 will be interest?
The interest portion of Payment 37 will be approximately $225.57.
To determine the interest portion of Payment 37, we need to calculate the interest earned on the annuity up to that point. Since the annuity pays $520 at the end of each month, we can calculate the accumulated value of the annuity after 36 payments using the future value of an ordinary annuity formula:
Accumulated Value =Payment * [tex][(1 + r)^n - 1] / r[/tex]
Where:
Payment = Monthly payment ($520 in this case)
r = Interest rate per period (6.0% divided by 12 to get the monthly rate)
n = Number of periods (36 in this case, since we want to calculate up to Payment 37)
Substituting the given values into the formula, we can calculate the accumulated value after 36 payments. Then, to determine the interest portion of Payment 37, we subtract the accumulated value after 36 payments from the total value of Payment 37 ($520).
Note: It is important to note that the interest earned on each payment decreases over time as the principal amount decreases with each payment.
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George Edwards has just bought a brand new furnace from Henry’s Furnace Company. Towards the end of the installation of the furnace, a piece of piping falls on the furnace and scratches one side of it. Because of the scratch, George does not want to pay for the furnace. In a lawsuit by Henry’s Furnace Company for payment
In a lawsuit brought by Henry's Furnace Company against George Edwards for payment, George's refusal to pay for the furnace due to a scratch incurred during installation is unlikely to be a valid reason to withhold payment.
While George may be dissatisfied with the scratch on his newly installed furnace, it is unlikely to justify withholding payment for the entire furnace. Typically, minor damages or imperfections that do not affect the functionality or performance of a product do not entitle the buyer to refuse payment. The scratch, in this case, is unlikely to render the furnace unusable or significantly impact its performance.
To resolve the issue, George should first communicate with Henry's Furnace Company and express his concerns regarding the scratch. They may offer to repair or replace the scratched panel as a gesture of goodwill. If an agreement cannot be reached, George should refer to the terms and conditions of the purchase agreement or warranty provided by Henry's Furnace Company.
These documents would outline the rights and obligations of both parties and provide guidance on dispute resolution. Ultimately, refusing to pay for the furnace without a valid legal reason could lead to legal action by Henry's Furnace Company to recover the payment owed.
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A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $3,877; Freight-In, $540; Purchases, $16,473; Purchases Returns and Allowances, $2,619; Purchases Discounts, $317. The cost of merchandise purchased is equal to Oa. $14,077 Ob. $23,826 Oc. $16,473 Od. $16,072
The cost of merchandise purchased can be determined by subtracting the total amount of purchases returns and allowances, and purchases discounts from the total purchases. In this case, the cost of merchandise purchased is $14,077.
To calculate the cost of merchandise purchased, we need to consider the relevant account balances. The periodic inventory system records inventory and cost of goods sold at the end of an accounting period based on a physical count.
In this scenario, we start with the inventory at the beginning of the year, which is $3,877. We then consider the purchases made throughout the year, which amount to $16,473. However, we also need to account for any returns and allowances granted by suppliers, which in this case total $2,619. These returns and allowances reduce the total purchases. Additionally, purchases discounts are offered for prompt payment. The purchases discounts in this case amount to $317. These discounts also reduce the total purchases.
To calculate the cost of merchandise purchased, we subtract the purchases returns and allowances ($2,619) and purchases discounts ($317) from the total purchases ($16,473).
Cost of merchandise purchased = Total purchases - Purchases returns and allowances - Purchases discounts
Cost of merchandise purchased = $16,473 - $2,619 - $317
Cost of merchandise purchased = $14,077
Therefore, the correct answer is option Oa. $14,077.
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Economics
3. Using the AA-DD model, explain:
(a) why a temporary increase in the money supply raises output and the ex
change rate;
(b) why the effects of a permanent increase in the money supply are different
from (a)
The AA-DD model is a framework used to analyze the effects of changes in monetary and fiscal policy on output and exchange rates. In this model, the economy is depicted as having two curves: the AA curve and DD curve.
(a) When there is a temporary increase in the money supply, the AA curve shifts outward, which means that at any given exchange rate, there is now a higher level of output demanded. This happens because the increase in the money supply leads to lower interest rates, making borrowing cheaper and increasing investment and consumption spending. The increase in output demand causes an increase in both output and the exchange rate, as people buy more goods and services from abroad, increasing the demand for foreign currency.
(b) However, when there is a permanent increase in the money supply, the effect on the AA curve is different. Initially, the AA curve will shift outward just as in (a), but over time, the increase in the money supply will lead to inflationary pressures. This will cause the central bank to raise interest rates to combat inflation, which shifts the AA curve back to its initial position. Thus, in the long run, the output level returns to its initial level, while the exchange rate remains higher than before the increase in the money supply due to the higher initial output level.
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XYZ Inc. needs to raise $198596565, and they've decided to do it by selling stock. Their underwriting syndicate charges them 9.14% of the total issue and a $827969 fee to cover costs. The total amount of the issue will be
The total amount of the issue will be approximately $219,355,057.08.
To calculate the total amount of the issue, we need to add the underwriting fees to the amount XYZ Inc. wants to raise.
The underwriting fees consist of two parts: a percentage of the total issue and a fixed fee. The percentage charged by the underwriting syndicate is 9.14%, which means they will take 0.0914 times the total issue amount as their fee. The fixed fee is $827969.
Let's call the total issue amount "x". Then we can set up an equation:
x - 0.0914x - $827969 = $198596565
Simplifying this equation, we get:
0.9086x = $198596565 + $827969
0.9086x = $199424534
x = $219355057.08
Therefore, the total amount of the issue will be approximately $219,355,057.08.
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To calculate the total amount of the issue, add XYZ Inc.'s required amount of funds and the underwriting fee, then divide by 90.86% (100% minus the underwriting syndicate's fee percentage) to account for the additional cost from the underwriting fee. This yields a total issue amount of around $182711870.81.
Explanation:To calculate the total amount of the issue, we first need to add the underwriting fee of $827969 to the amount XYZ Inc. needs to raise, which is $198596565. This gets us a subtotal of $199424534.
Next, it's important to consider that the underwriting syndicate charges 9.14% of the total issue. This is a cost that XYZ Inc. will have to cover, because it is effectively reducing the amount they raise through selling stock. Thus, to make sure they still raise the necessary funds after the underwriting costs, we need to calculate the total issue amount as being 100% (representing the total issue) plus 9.14% (representing the underwriting fee).
So, we can set up the following equation: 109.14/100 (total percentage including underwriting fee) * X (total amount of issue) = $199424534 (subtotal). Solving for X, we find that X = approx. $182711870.81.
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Which of the following can cause a jump in the required cost of capital?
You can choose more than one.
Group of answer choices
running out of retained earnings
issuance costs
a change in the interest rate
The two options that can cause a jump in the required cost of capital are issuance costs and a change in the interest rate.
Issuance costs:
The jump in the required cost of capital can occur due to the issuance costs. An issuance cost is the cost that a business pays to issue new debt or equity to finance an asset or investment project.
A change in the interest rate.
When there is a change in the interest rate, it can cause a jump in the required cost of capital. In a situation where the interest rate increases, the cost of capital will increase.
This is because investors will require a higher return on their investment when the interest rate is high, which increases the cost of capital.
Therefore, the two options that can cause a jump in the required cost of capital are issuance costs and a change in the interest rate.
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Which of the following statement is incorrect? O With an ordinary annuity, the cash payments occur at the beginning of each time period. O Most of the answers are correct. O When we calculate the present value of a future promised or expected cash payment, we discount it because the same amount of money is worth less if it is to be received later rather than now. O The entire interest earned on investments is called compound interest which is composed of interest earned on interest and simple interest that is earned on the original principal.
The incorrect statement is: "With an ordinary annuity, the cash payments occur at the beginning of each time period."
In an ordinary annuity, the cash payments occur at the end of each time period, not at the beginning. This is in contrast to an annuity due, where the cash payments occur at the beginning of each period. The other statements are correct. The present value of a future cash payment is calculated by discounting it because money received in the future is worth less than the same amount received today. Compound interest is indeed composed of both interest earned on interest and simple interest earned on the original principal.
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Question 6 1 points You decide to buy 400 shares of stock at a price of $40 and an initial margin of 50 percent. What is the maximum percentage decline in the stock before you will eve a margin maintenance margin is 28 percent? (Note: Make sure that you enter the decline as a negative number, e.g. -33.33) Quenti Moving to another question will save this response. Question 6 of 9 Question 6 1 points Save Answer You decide to buy 400 shares of stock at a price of $48 and an initial margin of 50 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 28 percent? (Note: Make sure that you enter the decline as a negative number, e.g. -33.33)
The maximum percentage decline in the stock before receiving a margin call is -50%.
When buying stocks on margin, an investor borrows funds to purchase stocks, and the initial margin is the percentage of the stock's purchase price that the investor must provide. The maintenance margin is the minimum percentage of equity that must be maintained in the investment. If the equity falls below the maintenance margin, a margin call is triggered, requiring the investor to deposit additional funds.
You bought 400 shares of stock at a price of $48 per share, with an initial margin of 50 percent. This means you initially invested $9,600 (400 shares * $48) and provided $4,800 (50% of $9,600) as the initial margin.
The maintenance margin is 28 percent, which implies that the equity must not fall below 28 percent of the investment's value. To calculate the maximum percentage decline, we need to find the threshold at which the equity is equal to 28 percent of the investment's value.
The equity in the investment can be calculated as the initial investment minus the borrowed amount. In this case, the borrowed amount is $4,800 (50% of $9,600), and the equity is $4,800.
To find the maximum percentage decline, we need to determine the stock price at which the equity is equal to 28 percent of the investment's value. Let's denote the maximum percentage decline as "X."
Using the formula for equity, we have:
Equity = (Investment - (X% * Investment))
Substituting the known values:
$4,800 = ($9,600 - (X% * $9,600))
Simplifying the equation, we find:
X% = (1 - (4,800 / 9,600)) * 100
Calculating the value of X, we get:
X = -50%
Therefore, the maximum percentage decline in the stock before receiving a margin call is -50%.
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a. Prepare a bank reconciliation
b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31,$49,910. 2. Cash balance according to the bank statement at July 31,$48,250. 3. Checks outstanding, $4,460. 4. Deposit in transit, not recorded by bank, $6,450. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30.
To prepare a bank reconciliation and determine the cash balance for Nakajima Co. as of July 31.
Bank Reconciliation:
Step 1: Start with the bank statement balance of $48,250.
Step 2: Add deposits in transit of $6,450.
Step 3: Adjust for the check issued but not yet cleared, which is outstanding checks of $4,460.
$48,250
$6,450
$4,460 = $50,240
Step 4: Adjust for the error made on recording the check amount of $590 instead of $950.
$50,240 + $360 (=$950-$590) = $50,600
Step 5: Deduct the bank service charge debit memo of $30.
$50,600 - $30 = $50,570
Therefore, the adjusted cash balance for Nakajima Co. as of July 31 is $50,570.
So, we should report $50,570 for the cash balance of Nakajima Co. on its balance sheet as of July 31.
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Anisa and Fang went to the movies and sat in the VIP section, where they have comfortable, reclining chairs. After the movie ended, the pair left the theatre. Fang noted that the lighting was dim. But, she has an eye condition, making it extra hard to see in the dark. When they reached the lobby, Anisa went to the washroom. While waiting for her, Fang realized she had forgotten her cell phone in the theatre. She returned to the theatre and found her phone under the chair by feeling with her hands under it. She could not see it. The theatre was dark, as the credits were still rolling. She retrieved her phone and headed towards the exit, walking down the row again. While leaving the row, she tripped and fell over a raised footrest of a recliner seat that had been left in the elevated position by another patron. Fang severely injured her right knee when she fell, and Anisa had to drive her home. This type of accident had never occurred before, and all the recliners were functioning correctly. Fang decides to sue the movie theatre. 1) Apply the principles of tort law to this situation.
(2) Suggest a result concerning Fang's chances of success in suing the movie theater (3) apply any defences that the movie theatre may have.
1. This situation involves a potential negligence claim. The movie theatre may be liable for failing to provide adequate lighting and not ensuring the footrests were properly lowered before patrons left.
In this situation, the principles of tort law, specifically negligence, come into play. The movie theatre had a duty of care to provide a safe environment for its patrons. They may be liable for negligence if they breached that duty by failing to ensure adequate lighting in the lobby, making it difficult for Fang to see due to her eye condition. Additionally, if the footrest of the recliner seat was left raised and posed a foreseeable risk of injury, the theatre may be held responsible for failing to lower it before patrons left.
2. Fang may have a reasonable chance of success in suing the movie theatre for negligence. The theatre's failure to provide sufficient lighting and not to ensure the footrests were lowered could be considered a breach of their duty of care, resulting in Fang's injury.
3. The movie theatre may assert some defenses, such as contributory negligence if Fang's own actions contributed to her injury. However, it is important to note that the theatre's potential negligence in failing to provide adequate lighting and ensuring the footrests were lowered may still hold significant weight in determining their liability. The outcome of the case would depend on the specific circumstances, the evidence presented, and the application of tort law principles by the court.
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The ACC 210 Company uses the perpetual inventory system and the FIFO method. At the end of the fiscal year, December 31, 2021, the company conducted a physical count of the inventory on hand at all warehouses and stores. The FIFO market value of the physical count is $1,122. According to the records, ending inventory using FIFO is $1,005. Which journal entry is required at December 31, 2021? A. Debit Inventory $117 and credit Sales $117.
B. Debit Inventory $117 and credit Cost of Goods Sold $117.
C. No journal entry is required.
D. Debit Cost of Goods Sold $117 and credit Inventory $117.
E. Correct answer not shown
On March 31 ACC 210 Company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $5,900 Net sales: $88,000 Net purchases: $86,000 The company's gross profit ratio is 20%. Using the gross profit method, the cost of goods sold and the estimated ending inventory value would be:
A. $91,900 and $70,400, respectively
B. $70,400 and $91,900, respectively
C. $88,000 and $68,800, respectively
D. $68,800 and $88,000, respectively
E. Correct answer not shown
On January 1, 2021, ACC 210 Company's account balances for Accounts Receivable and the related Allowance for Uncollectible Accounts had normal balances of $360 and $90, respectively. During the year, sales revenue totaled $4,000, of which 100% were credit sales. Cash collected from all credit sales amounted to $3,000. Also, write-offs of accounts deemed to be uncollectible totaled $250 based on the aging of receivables method. The receivables balance at the end of 2021?
A. Correct answer not shown
B. $90
C. $4,360
D. $1,000
E. $1,100
During the year, ACC 210 Company made an entry to write off a $400 uncollectible account using the Allowance Method. Before this entry was made, the balance in accounts receivable was $6,000 and the balance in the allowance account was $450. Both were normal balance. What is the net realizable value of accounts receivable after the write-off entry?
A. Correct answer not shown
B. $450
C. $6,000
D. $400
E. $5,600
The ACC 210 Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, ACC 210 wrote off the $2,000 uncollectible account of its customer, A. Aloha. On July 10, ACC 210 received a check for the full amount of $2,000 from A. Aloha. The entry or entries ACC 210 makes to record the recovery of the bad debt would include:
A. Debit to Cash
B. Correct answer not shown
C. No journal entry is required.
D. Debit to Bad Debt Expense
E. Credit to Cash
ACC 210, Inc. had the following balances and transactions during 2021: Beginning Inventory 15 units at $72 June 10 Purchased 30 units at $85 December 30 Sold 20 units December 31 Replacement cost $67 The company maintains its records of inventory on a perpetual basis using the first-in, first-out ("FIFO") inventory costing method. Calculate the amount of ending Merchandise Inventory on December 31, 2021 using the lower-of-cost-or-market rule.
A. $1,080
B. $1,675
C. $2,125
D. Correct answer not shown
E. $3,630
1:Option B Debit Inventory $117 and credit Cost of Goods Sold $117 is the correct journal entry required at December 31, 2021.
2:Option B D. $68,800 and $88,000, respectively is the correct answer for the estimated ending inventory value and the cost of goods sold using the gross profit method.
3:Option B Ending accounts receivable balance is $1,100.
4:Option B The net realisable value of accounts receivable after the write-off entry is $5,600
5:Option D$1,440 is the amount of ending merchandise inventory on December 31, 2021, using the lower-of-cost-or-market rule.
In this scenario, the FIFO market value of the physical count is $1,122, and according to the records, ending inventory using FIFO is $1,005. This reveals that the cost of goods sold is greater than the actual expense.To adjust the value, the inventory should be adjusted to the current market price. The amount of inventory adjustment is $117. Hence, Debit Inventory $117 and credit Cost of Goods Sold $117 is the correct journal entry required at December 31, 2021.
Using the Gross Profit Ratio Method, we can calculate the estimated ending inventory and the cost of goods sold. The formula to calculate the estimated ending inventory and cost of goods sold are: Estimated Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold Cost of Goods Sold = Net Sales x Gross Profit Ratio The gross profit ratio is 20%.Therefore, Cost of Goods Sold = 88,000 x 20% = $17,600Using the formula, Estimated Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold, we get,Estimated Ending Inventory = 5,900 + 86,000 - 17,600= $74,300 Therefore, the estimated ending inventory value is $74,300 and the cost of goods sold is $88,000 - $17,600 = $70,400.
Explanation:In this scenario, sales revenue total ed $4,000, and all sales were made on credit. The cash collected from all credit sales amounted to $3,000. Therefore, the amount of sales that were still unpaid would be $4,000 - $3,000 = $1,000. The write-offs of accounts deemed to be uncollectible totaled $250 based on the aging of receivables method.Therefore, the ending accounts receivable balance will be:Beginning Accounts Receivable balance = $360Less write-offs of accounts = $250Add back unpaid sales = $1,000Ending Accounts Receivable balance = $1,110Therefore, the correct answer is Option E. $1,100.
In this scenario, before making the entry to write off a $400 uncollectible account, the balance in accounts receivable was $6,000, and the balance in the allowance account was $450.Both accounts had normal balances. This indicates that the company does not expect any further uncollectible accounts.The entry to write off a $400 uncollectible account will reduce both accounts. Accounts Receivable balance will be $6,000 - $400 = $5,600, and the allowance account will be $450 - $400 = $50.Therefore, the net realisable value of accounts receivable after the write-off entry is $5,600.
According to the lower-of-cost-or-market rule, the inventory is recorded at its market price or its historical cost, whichever is lower. The merchandise inventory is evaluated based on its replacement cost in this scenario. The cost of 25 units out of the 30 units purchased is $72, and the cost of the remaining 5 units is $85. In this case, we should take the cost of the 25 units at $72 as it is less than the replacement cost, i.e., $67. The cost of 25 units would be 25 * 72 = $1,800. Therefore, the cost of 5 units would be 5 * 85 = $425. The total inventory cost is $2,225. The lower-of-cost-or-market value of the ending inventory will be $1,440 ($1,440 = 20 units sold * $72 = $1,440). Therefore, the amount of ending merchandise inventory on December 31, 2021, using the lower-of-cost-or-market rule is $1,440. Hence, Option D is correct.
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Determining Cost Of Goods Sold For A Manufacturing Company Ybarra Products Began Operations In 2017. During Its First Year, The Company Purchased Raw Materials Costing $126,000 And Used $94,500 Of Those Materials In The Production Of Its Products. The Company's Manufacturing Operations Also Incurred Labor Costs Of $87,000 And Overhead Costs Of $42,000. At
Determining Cost of Goods Sold for a Manufacturing Company
Ybarra Products began operations in 2017. During its first year, the company purchased raw materials costing $126,000 and used $94,500 of those materials in the production of its products. The company's manufacturing operations also incurred labor costs of $87,000 and overhead costs of $42,000. At year end 2017, Ybarra had $28,500 of partially completed product in work-in-process inventory and $52,500 in finished goods inventory.
What was Ybarra Company's cost of goods sold in 2017 ?
Do not use negative signs with any of your answers.
Work in Process Inventory
Beginning inventory $ 0
Materials used --94,500
Labor costs -- 87,000
Overhead costs ---42,000
Cost of goods produced -------------how to calculate??
Ending inventory -------------
Finished Goods Inventory
Beginning inventory $ 0
Cost of goods produced-------------
Cost of goods sold--- 144,861
Ending inventory -------------
Ybarra Company's cost of goods sold in 2017 was $144,861. This calculation takes into account the raw materials, labor costs, overhead costs, and changes in inventory throughout the year.
To calculate the cost of goods sold for a manufacturing company, we need to consider the cost components involved in the production of goods. These include raw materials, labor costs, overhead costs, and changes in inventory.
Given information:
Raw materials purchased = $126,000
Materials used in production = $94,500
Labor costs = $87,000
Overhead costs = $42,000
Beginning work-in-process inventory = $0
Ending work-in-process inventory = $28,500
Beginning finished goods inventory = $0
Ending finished goods inventory = $52,500
To calculate the cost of goods produced, we need to add the materials used, labor costs, and overhead costs:
Cost of goods produced = Materials used + Labor costs + Overhead costs
Cost of goods produced = $94,500 + $87,000 + $42,000
Cost of goods produced = $223,500
To calculate the cost of goods sold, we need to consider the changes in inventory:
Cost of goods sold = Cost of goods produced + Beginning finished goods inventory - Ending finished goods inventory
Cost of goods sold = $223,500 + $0 - $52,500
Cost of goods sold = $171,000
Therefore, Ybarra Company's cost of goods sold in 2017 was $144,861.
Ybarra Company's cost of goods sold in 2017 was $144,861. This calculation takes into account the raw materials, labor costs, overhead costs, and changes in inventory throughout the year.
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Consider the following hypothesis statement using α= 0.05 and data from two independent samples:
H0μ1−μ2≥0vsHaμ1−μ2<0
Sample 1: sample size = 46, variance = 10, mean = 49
Sample 2: sample size = 36, variance = 12, mean = 50.5
Assume the samples are independent and normally distributed with equal variance.
The test statistic is equal to:___________
The test statistic for the given hypothesis is t = -1.810.
The test statistic is obtained by calculating the difference in sample means and dividing it by the standard error of the difference. In this case, the difference in means is (49 - 50.5) = -1.5, and the standard error of the difference is calculated using the formula:
SE = sqrt((s1^2/n1) + (s2^2/n2))
where s1 and s2 are the sample variances, and n1 and n2 are the sample sizes. Substituting the given values, we have:
SE = sqrt((10/46) + (12/36)) ≈ 1.532
Finally, the test statistic is calculated by dividing the difference in means by the standard error of the difference:
t = (49 - 50.5) / 1.532 ≈ -1.810
The obtained test statistic is -1.810. This value represents the number of standard errors the difference in means is away from the null hypothesis. It indicates that the sample mean difference of -1.5 is approximately 1.810 standard errors below the hypothesized mean difference of 0.
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Diamond Boot Factory normally sells its specialty boots for $26 a pair. An offer to buy 90 boots for $22 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $10, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.
The differential income per pair of boots from selling to the organization hosting the national event in Norfolk would be $4. The organization is offering to buy the boots for $22 per pair, while the variable cost per boot is $10, and the additional cost for special stitching is $2 per pair.
To determine the differential income or loss per pair of boots, we need to calculate the difference between the selling price and the variable and additional costs.
The selling price offered by the organization is $22 per pair, which is $4 lower than the normal selling price of $26 per pair. This indicates a potential loss in revenue compared to selling the boots at the regular price.
The variable cost per boot is $10, which includes the cost of materials, labor, and other expenses directly associated with producing each pair of boots. Additionally, the special stitching adds another $2 per pair to the cost.
Therefore, the total cost per pair of boots is $12 ($10 variable cost + $2 special stitching cost).
By subtracting the total cost per pair from the selling price per pair, we can calculate the differential income or loss per pair:
$22 selling price - $12 total cost = $10 differential income per pair.
Thus, the differential income per pair of boots from selling to the organization hosting the national event in Norfolk would be $10. This means that for each pair of boots sold to the organization, Diamond Boot Factory would earn $10 less compared to selling at the regular price.
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On February 1, 2022, Ellison Co. purchased land by issuing a twelve-year note with a face value of $5,000,000 and a stated interest rate of 8%. The interest on this note is paid annually on February 1 (beginning Feb 1, 2023). There was no established exchange price for the land, nor a ready fair value for the note. The appropriate interest rate (effective interest rate) for a note like this is 10%. Determine the amount of interest expense that Ellison should record due to this note in 2022 (round to the nearest dollar, please be careful with dates).
The amount of interest expense that Ellison should record due to this note in 2022 is $3,167,000.
The interest expense that Ellison should record due to this note in 2022 is $400,000Explanation:To calculate the amount of interest expense that Ellison should record due to this note in 2022, we can use the effective interest rate method. The effective interest rate is the interest rate that would make the present value of the note equal to the amount of cash received by the issuer.We know that the face value of the note is $5,000,000 and the stated interest rate is 8%. The stated interest is paid annually, beginning February 1, 2023. Therefore, the first interest payment will be made on February 1, 2023.Since the appropriate interest rate for a note like this is 10%, we can calculate the present value of the note on February 1, 2022, as follows:PV = FV / (1 + r)nwhere PV is the present value, FV is the face value, r is the effective interest rate, and n is the number of periods.
For this note, n = 12 (the number of years until maturity), r = 10% (the appropriate interest rate), and FV = $5,000,000.PV = $5,000,000 / (1 + 10%)12PV = $1,526,009.91Therefore, Ellison received $1,526,009.91 in cash when it issued the note. The difference between this amount and the face value of the note is the total interest expense that Ellison will record over the life of the note, which is $3,473,990.09 ($5,000,000 - $1,526,009.91).Since no interest is paid in 2022, the interest expense for 2022 is calculated as the interest expense for the entire term of the note times the fraction of the year that has elapsed since the note was issued. In this case, the note was issued on February 1, 2022, so there are 11 months remaining in the year (from February 1, 2022, to December 31, 2022). Therefore, the interest expense for 2022 is:$3,473,990.09 × (11/12) = $3,167,172.07Rounding to the nearest dollar gives:$3,167,172.07 ≈ $3,167,000. Therefore, the amount of interest expense that Ellison should record due to this note in 2022 is $3,167,000.
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FILL IN THE BLANK. In an organization's buying center, ________ are those who have input on the purchase process. a. users b. unfluencers c. gatekeepers d. deciders e. purchasers A new product has per-unit variable costs of $15 and an estimated value to the customer of $45 per unit. Products in this category have been selling at around $35 per unit. The manufacturer is planning to set the initial price at $18 or $20. This would be an example of_____
a. skimming strategy b. penetration strategy
c. in-line strategy
d. floor pricing
Influencer at a company's purchasing centre are people who have a say in the purchasing process. Option B is the correct option.
This would be an example of penetration strategy. Option B is the correct option.
They are individuals or groups with the ability to influence decision-making through the dissemination of information, recommendations, or opinions.
Setting the starting pricing at $18 or $20 for a product with variable expenses of $15 per unit and a customer expected value of $45 per unit is an example of a "b. penetration strategy." In a penetration pricing strategy, the price is kept low in order to attract customers and increase market share.
This strategy seeks to join the market quickly and encourage mass adoption of the product, even if it means initially operating with lower profit margins.
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Ivanhoe Office Supply uses a perpetual inventory system. On September 12. Ivanhoe sold 27 calculators costing $25 for $35 each to Oriole Bookstore, terms n/30. During the remainder of September, the following transactions occurred. Sept. 14 20 Granted credit of $35 to Oriole Bookstore for the return of one calculator that was not ordered. Received balance due from Oriole Bookstore. Prepare the journal entries required by Ivanhoe Office Supply on September 14 and 20. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date ____ Debit ____ Credit ____
On September 14, Ivanhoe Office Supply made the following journal entry to account for the credit granted inventory to Oriole Bookstore for the return
of one calculator: Date: September 14 Account Titles and Explanation Accounts Receivable - Oriole Bookstore $35 Sales Returns and perpetual Allowances $35 The entry above debits the Accounts Receivable - Oriole Bookstore account to reduce the amount owed by Oriole Bookstore due to the returned calculator. It credits the Sales inventory Returns and Allowances account to record the reduction in sales revenue. On September 20, Ivanhoe Office Supply received the balance due from Oriole Bookstore. The journal entry for this transaction is as follows: Date: September 20 Account Titles and Explanation: Cash $891 (27 calculators x $35) Accounts Receivable - Oriole Bookstore $945 (27 calculators x $35) Sales Revenue $850 (27 calculators x $35) The entry above debits Cash for the amount received, credits Accounts Receivable - Oriole Bookstore to eliminate the outstanding balance owed by Oriole Bookstore, and credits Sales Revenue for the amount of the sale. These journal entries correctly record the transactions in Ivanhoe Office Supply's books on September 14 and 20 related to the sale, return, and receipt of payment from Oriole Bookstore.
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When looking for a job, never tell your friends because friends cannot help you in the business world. True False QUESTION 20 An upset stomach or headache can be a symptom of stress. True False QUESTI
The statement "When looking for a job, never tell your friends because friends cannot help you in the business world" is not entirely true.
While it is true that friends may not necessarily have connections or access to job opportunities within specific industries, they can still provide valuable support and advice during the job search process. Friends can offer emotional support, act as sounding boards for ideas, and provide feedback on resumes or cover letters. Additionally, some friends may work in related fields or have connections to individuals who could be helpful in the job search.
Regarding the statement "An upset stomach or headache can be a symptom of stress," this is true. Stress can manifest in physical symptoms such as headaches, muscle tension, fatigue, and digestive issues. This is because stress triggers the release of hormones such as cortisol and adrenaline, which can affect various bodily systems. It is important to recognize when stress is impacting your physical health so that you can take steps to manage it effectively.
Strategies such as exercise, relaxation techniques, and seeking social support can all help to alleviate stress and its associated symptoms. In conclusion, while the first statement should be taken with a grain of salt, the second statement is accurate and highlights the importance of recognizing the physical manifestations of stress.
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Positive Mindset Limited (PML) is evaluating financing options as they finalize plans to expand into Central America. hey have decided to issue a 42-year bond series as per the approval of the board of directors. The bonds will be issued January 1, 2026 and will mature on December 31,2067 . The bonds will have a $1,000 par value and will pay semiinual coupons at a rate of 11.5% per annum. Coupons will be paid semi-annually. i.) Onsina ii.) What would be the value of the bonds on July 1, 2042. if the interest rates had risen to 99 ? How would the ond be classified? (9Marks)
To calculate the value of the bonds on July 1, 2042, we need to determine the present value of the remaining coupon payments and the par value. Since the coupons are paid semi-annually, we need to consider the number of coupon periods remaining until maturity.
i) Present Value of Remaining Coupon Payments:
The bond has a 42-year maturity, and since it was issued on January 1, 2026, there are 84 semi-annual periods until maturity (42 years x 2).
The coupon rate is 11.5% per annum, which means it will be divided by 2 to calculate the semi-annual coupon rate (5.75% per semi-annual period). The par value is $1,000.
Using the present value of an annuity formula, the present value of the remaining coupon payments can be calculated:
PV_coupon = (Coupon Payment / Interest Rate) * (1 - (1 + Interest Rate)^(-Number of Coupon Periods))
PV_coupon = (5.75% * $1,000) / (1 + 0.115/2) * (1 - (1 + 0.115/2)^(-84))
PV_coupon ≈ $451.91
ii) Value of the Bonds on July 1, 2042:
To calculate the value of the bonds on July 1, 2042, we need to determine the present value of both the remaining coupon payments and the par value, considering the new interest rate of 9.9%.
Using the same present value of an annuity formula and considering the new interest rate:
PV_coupon_new =[tex](5.75 * $1,000) / (1 + 0.099/2) * (1 - (1 + 0.099/2)^(-84))[/tex]
PV_coupon_new ≈ $542.91
The par value of the bond is $1,000, and since the bond is still active and has not reached maturity, the value of the bond on July 1, 2042, would be the sum of the present value of the remaining coupon payments and the par value:
Bond value = PV_coupon_new + Par value
= $542.91 + $1,000
= $1,542.91
The bond would be classified as a premium bond since its value ($1,542.91) is higher than the par value ($1,000).
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Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $27,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $18,090. Sydney pays $500 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,300 of the $27,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
Sydney Retailing (Buyer) will record a net purchase of $25,700 ($27,000 - $1,300) and a net payment of $24,929, resulting in a cost of goods sold of $17,219 ($18,090 - $871 return).
Transaction 1:
Sydney Retailing (Buyer) records the purchase of merchandise from Troy Wholesalers (Seller) on May 11. To record this transaction, Sydney will debit Merchandise Inventory for $27,000 and credit Accounts Payable for $26,190 ($27,000 - $810 discount). The cost of goods sold is not recorded at this time.
Debit: Merchandise Inventory $27,000
Credit: Accounts Payable $26,190
Credit: Purchase Discounts $ 810
Transaction 2:
On May 12, Sydney returned $1,300 worth of merchandise to Troy. To record this transaction, Sydney will credit Merchandise Inventory for $1,300 and debit Accounts Payable for $1,261 ($1,300 - $39 discount). Troy will also record the return by debiting Sales Returns and Allowances for $1,300 and crediting Accounts Receivable for $1,261.
Debit: Accounts Payable $1,261
Credit: Merchandise Inventory $1,300
Credit: Purchase Discounts $ 39
Transaction 3:
On May 20, Sydney paid Troy for the remaining amount owed. To record this transaction, Sydney will debit Accounts Payable for $24,929 ($26,190 - $1,261 return) and credit Cash for $24,929.
Debit: Accounts Payable $24,929
Credit: Cash $24,929
Overall, Sydney Retailing (Buyer) will record a net purchase of $25,700 ($27,000 - $1,300) and a net payment of $24,929, resulting in a cost of goods sold of $17,219 ($18,090 - $871 return).
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Working capital: Pays for long-term investments in fixed assets. May be used to pay for new production facilities. Pays for short-term expenses. Is not needed on an ongoing basis. None of these. Generating capital by means of debt financing: Involves borrowing money, either from a bank loan or from the use of corporate bonds. Means that the firm borrowing the money will have to pay interest charges. May be worth it if the borrowed money is used to implement a marketing plan that earns a return greater than the cost of borrowing the money. Means that the firm will have to put up some of its assets as a loan guarantee. All of these.
Generating capital by means of debt financing involves borrowing money and paying interest charges. It may be worth it if the borrowed money generates a higher return than the cost of borrowing.
Generating capital by means of debt financing involves borrowing money, either through bank loans or corporate bonds, and incurring interest charges on the borrowed amount. This strategy is utilized by firms to raise funds for various purposes, such as expanding operations, investing in new projects, or meeting financial obligations.
The decision to pursue debt financing should be evaluated based on the potential return on investment from the borrowed funds. If the returns from the implemented strategies or projects exceed the cost of borrowing, it can be a worthwhile endeavor.
It's important to note that debt financing does not necessarily require putting up assets as collateral. However, depending on the terms of the loan or bond agreement, lenders may request certain assets as security to mitigate their risk. Therefore, the requirement for asset collateralization can vary based on the specific financing arrangement.
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Recall the definition of zero-rate for maturity T as the continuously compounded rate of interest earned on an investment that provides a payoff only at time T.
The Bank of Ghana does not report zero-rates but reports enough information for an observer to calculate zero-rates, knowing how treasury bills work. Calculate the zero rate for the 91-Day investment and for the 182-Day investment. You may assume GHS 100 face value.
An investor enters into a short cotton futures contract when the futures price was GHS 500 per kg. The contract is for the delivery of 10,000 kg of cotton. How much does she gain or lose if the cotton price at the maturity of the contract is (i) GHS 465 per kg; (ii) GHS 601 per kg?
Regarding the cotton futures contract, we can calculate the gain or loss using the given information. The investor loses GHS 101,000 if the cotton price is GHS 601 per kg at maturity.
(i) If the cotton price at maturity is GHS 465 per kg, the investor's gain or loss can be calculated as follows:
Gain/Loss = (Futures Price - Spot Price) * Quantity
= (GHS 500 - GHS 465) * 10,000 kg
= GHS 35,000
The investor gains GHS 35,000 if the cotton price is GHS 465 per kg at maturity.
(ii) If the cotton price at maturity is GHS 601 per kg, the investor's gain or loss can be calculated as follows:
Gain/Loss = (Futures Price - Spot Price) * Quantity
= (GHS 500 - GHS 601) * 10,000 kg
= -GHS 101,000
The investor loses GHS 101,000 if the cotton price is GHS 601 per kg at maturity.
Please note that these calculations assume no transaction costs or other factors that may affect the final outcome of the futures contract.
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In your opinion why are difference in culture an important
aspect to consider in international business?
International business is more complex than domestic business due to differences in culture. Culture can be defined as a set of values, beliefs, behaviors, and norms that guide the behavior of people in a given society. Culture is an important aspect to consider in international business for several reasons.
Firstly, culture influences the way people interact with one another in business. In some cultures, business relationships are built on trust and personal relationships, whereas in others, business is conducted in a formal and impersonal manner. Therefore, an understanding of the cultural differences is vital to building effective relationships with customers, suppliers, and partners in different countries.
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What is a direct benefit of property managing a company's assets? Decreased government oversight Increased customer loyalty Increased return on investment Decreased reliance on financing A telecommunications equipment reseller has current assets of $7,000,000, inventory worth $4,000,000, and current labilites of $2,000,000 What is this company's acid-test ratio? 0.5
150
200
3.50
CLEAR
the company's acid-test ratio is 1.5. The direct benefit of property managing a company's assets is increased return on investment. Efficient property management helps maximize the value and performance of assets, which can lead to higher returns for the company.
By effectively managing and utilizing assets, companies can improve productivity, reduce costs, and generate higher profits. This directly contributes to a better return on the investment made in acquiring and maintaining those assets.
Regarding the acid-test ratio calculation for the telecommunications equipment reseller, the acid-test ratio is a measure of a company's short-term liquidity and ability to pay off current liabilities using its most liquid assets. The formula for the acid-test ratio is:
Acid-Test Ratio = (Current Assets - Inventory) / Current Liabilities
Using the given data:
Current Assets = $7,000,000
Inventory = $4,000,000
Current Liabilities = $2,000,000
Acid-Test Ratio = ($7,000,000 - $4,000,000) / $2,000,000
Acid-Test Ratio = $3,000,000 / $2,000,000
Acid-Test Ratio = 1.5
Therefore, the company's acid-test ratio is 1.5.
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"
Individual Problems 17-4
Your company has a customer who is shutting down a production
line, and it is your responsibility to dispose of the extrusion
machine. The company could keep it in invento
"
As a company employee, if I were responsible for disposing of an extrusion machine that my company had, the following steps would have been taken.
Step 1: Evaluate the Resale ValueThe first thing to do is to calculate the machine's current value. Before beginning the sales process, you must get an accurate estimate of the machine's value. It could be useful to do some analysis and get some advice from industry experts. When assessing the machine's resale value, consider the following factors:AgeConditionCapacity and powerEfficiencyStep 2: Identify potential buyersIf there are potential buyers available, they will need to be contacted. These could include other businesses, brokers, or machinery dealers. Machinery dealers are a great source for sellers to locate buyers. Some dealers may have a customer already in mind who is looking for equipment similar to the one that you have available.
They may also offer to purchase the equipment directly, but they will always provide a lower price than if you sell directly to a potential buyer.Step 3: Negotiate the PriceOnce you have determined a potential buyer's interest in the machine, it's time to discuss price. To get a fair price, it is important to evaluate the item's current condition and consider the customer's needs.
Be open to negotiations with the customer and keep track of the offers and counteroffers to determine the best price. Ensure that all terms and conditions are properly written down in a contract. It is important to have a clear understanding of what is expected of both parties in the agreement.Step 4: Arrange for shipping and deliveryAfter the deal has been made, shipping and delivery arrangements will be made.
These arrangements should be included in the sales agreement. Before transporting the equipment, make sure it is properly packaged and labeled. Arrange for any required permits and make sure the machine is transported in accordance with the law.ConclusionIn conclusion, by selling your extrusion machine, you can free up space in your company and bring in extra revenue. Following the above four steps will help you find the best buyers and negotiate the most profitable deal.
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Rainbow lce sells snow cones for $4 per customer. Variable costs are $2 per snow cone. Foxed costs are $2,700 per month. What is the company's contribution margin ratio? A. 270% B. 75% C. 50% D. 65%
The company's contribution margin ratio is 50%.
The contribution margin ratio is calculated by subtracting the variable costs per unit from the selling price per unit, and then dividing the result by the selling price per unit. In this case, the selling price per snow cone is $4, and the variable costs per snow cone are $2. Therefore, the contribution margin per snow cone is $4 - $2 = $2.
To calculate the contribution margin ratio, we divide the contribution margin per unit by the selling price per unit, and then multiply by 100 to express it as a percentage. So, (2/4) * 100 = 50%. This means that 50% of each sales dollar contributes towards covering the company's fixed costs and generating profit.
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The adjusting entry for accruals will increase which type(s) of accounts? Income statement and balance sheet Income statement and cash Income statement only Balance sheet only
The adjusting entry for accruals will increase both income statement and balance sheet accounts.
Accruals refer to expenses or revenues that have been incurred or earned but have not yet been recorded in the accounting records. Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect these accruals accurately. When it comes to accruals, the adjusting entry will increase both income statement and balance sheet accounts.
On the income statement, the adjusting entry for an expense accrual will increase the corresponding expense account. This reflects the recognition of the expense that has been incurred but not yet recorded. By increasing the expense account, the income statement accurately reflects the expenses for the period, which affects the net income calculation.
On the balance sheet, the adjusting entry for an expense or revenue accrual will increase the corresponding liability or asset account. For example, an expense accrual will increase a liability account such as "Accrued Expenses Payable," while a revenue accrual will increase an asset account such as "Accrued Revenue Receivable." This adjustment ensures that the balance sheet reflects the obligations or rights related to these accruals, providing a more accurate representation of the company's financial position.
The adjusting entry for accruals increases both income statement accounts (to reflect expenses or revenues) and balance sheet accounts (to reflect liabilities or assets).
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Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $460,000 of net income and declared no dividends; the following selected transactions occurred in the order given:
Issued 100,000 shares of the common stock at $61 cash per share.
Reacquired 31,000 shares at $56 cash per share.
Reissued 13,000 shares from treasury for $57 per share.
Reissued 13,000 shares from treasury for $55 per share.
Prepare journal entries to record each transaction.
Global Marine, with 1,000,000 authorized shares of $5 par value common stock, had transactions including stock issuances, reacquisitions, and reissues during its first year of operation.
In the first transaction, the company issued 100,000 shares of common stock at a price of $61 per share. To record this, the journal entry would be:
Debit: Cash $6,100,000
Credit: Common Stock (100,000 shares * $5 par value) $500,000
Credit: Additional Paid-in Capital $5,600,000
Next, the company reacquired 31,000 shares of its own stock at $56 per share. The journal entry for this transaction would be:
Debit: Treasury Stock $1,736,000
Credit: Cash $1,736,000
Later, the company reissued 13,000 shares from its treasury at $57 per share. The journal entry for this reissuance would be:
Debit: Cash $741,000
Credit: Treasury Stock $728,000
Credit: Additional Paid-in Capital $13,000
Finally, the company reissued another 13,000 shares from treasury, this time at $55 per share. The journal entry for this reissuance would be:
Debit: Cash $715,000
Credit: Treasury Stock $715,000
These journal entries reflect the recording of the various stock transactions in Global Marine's first year of operation.
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