Answer:
A. Journal Entries under Gross Method
Date Account Titles and Explanation Debit Credit
Aug. 5 Accounts Receivable M. Quinn $7,500
Sales Revenue $7,500
(To record the sales made on account)
Cost of Goods Sold $4,200
Inventory $4,200
(To record the cost of goods sold)
Aug. 9 Accounts Receivable R. Busch $4,000
Sales Revenue $4,000
(To record the sales made on account)
Cost of Goods Sold $2,100
Inventory $2,100
(To record the cost of goods sold)
Aug. 15 Cash $7,350
($7,500 - $150)
Sales Discounts $150
($7,500*2/100)
Accounts Receivable M. Quinn $7,500
(To record the payment received for credit sales with discount)
Aug. 20 Accounts Receivable S. Mooney $6,000
Sales Revenue $6,000
(To record the sales made on account)
Cost of Goods Sold $3,300
Inventory $3,300
(To record the cost of goods sold)
Aug. 25 Cash $4,000
Accounts Receivable R. Busch $4,000
(To record the payment received for credit sales without discount)
Aug. 31 Cash $6,000
Accounts Receivable S. Mooney $6,000
(To record the payment received for credit sales with no discount)
B. Journal Entries under Net Method
Date Account Titles and Explanation Debit Credit
Aug. 5 Accounts Receivable M. Quinn $7,350
($7,500 - [$7,500*2/100])
Sales Revenue $7,350
(To record the sales made on account)
Cost of Goods Sold $4,200
Inventory $4,200
(To record the cost of goods sold)
Aug. 9 Accounts Receivable R. Busch $3,960
($4,000 - [$4,000*1/100])
Sales Revenue $3,960
(To record the sales made on account)
Cost of Goods Sold $2,100
Inventory $2,100
(To record the cost of goods sold)
Aug. 15 Cash $7,350
Accounts Receivable M. Quinn $7,350
(To record the payment received for credit sales with discount)
Aug. 20 Accounts Receivable S. Mooney $6,000
Sales Revenue $6,000
(To record the sales made on account)
Cost of Goods Sold $3,300
Inventory $3,300
(To record the cost of goods sold)
Aug. 25 Cash $4,000
($3,960 + $40)
Accounts Receivable R. Busch $3,960
Sales Discount Forfeited $40
($4,000*1/100)
(To record the payment received for credit sales without discount)
Aug. 31 Cash $6,000
Accounts Receivable S. Mooney $6,000
(To record the payment received for credit sales with no discount)
CostPercent Complete Materials costs$ 5,80050% Conversion costs$ 6,50030% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs$ 85,300 Conversion costs$ 168,000 The ending inventory was 70% complete with respect to materials and 10% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
$11.49
Explanation:
The computation of cost per equivalent unit for materials for the month in the first processing department is shown below:-
Equivalent units for materials
= Units completed and transferred out + Units in ending inventory
(6,600 × 100%) + ((800 + 7,700 - 6,600) × 70%)
= 6,600 + $1,330
= 7,930 units
Cost per equivalent unit for materials
= (5,800 + $85,300) ÷ 7,930
= $11.49
What is a sales lead?
A. An employee on the customer service team who deals with existing customers
B. A sales person who works on a residual commission structure
C. An expert in Maslow's hierarchy of needs
D. A potential customer who has shown interest in the company's product
Please select the best answer from the choices provided
Answer:
D.
A potential customer who has shown interest in the company's product
Explanation:
edge. 2021
A potential customer who has shown interest in the company's product is a sales lead. Thus, option D is correct.
What is a sales lead?A possible sales relationship, person, or business that indicates interest in your services or products is known as a sales lead. Leads are often acquired through being referred by an existing client or by responding directly to press or promotion.
The phrase refers to a prospective buyer who now has taken part mostly in the company’s products. This indicates that if a purchaser is offered the right incentives and incentives, he may readily sign up as a client of the business.
Where the person has shown interest in buying the product therefore this person will be considered a prospective consumer. Therefore, option D is the correct option.
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Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote uses the perpetual inventory system. Which of the following answers reflects the effects of this event on the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A. n/a (200) 200 200 n/a n/a 200 OA B. n/a (200) 200 200 n/a 200 n/a C. (200) (200) n/a n/a n/a n/a (200) OA D. (200) (200) n/a n/a n/a n/a n/a
Answer:
B. n/a (200) 200 200 n/a 200 n/a
Explanation:
A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.
E.g. you paid $100 within the discount period (2% discount)
Dr Accounts payable 100
Cr Cash 98
Cr Purchase discounts 2
This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 88,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 266,000. Units completed and transferred out: 354,000. Ending Inventory: 34,000 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials.
Answer:
$1.86072 per unit
Explanation:
Equivalent unit of material = Units completed and transferred out + Ending Inventory
Equivalent unit of material = 354,000 + (34,000*40%)
Equivalent unit of material = 354,000 + 13,600
Equivalent unit of material = 367,600
Cost per equivalent unit of material = ($37,200 + $646,800) / 367,600
Cost per equivalent unit of material = $684,000 / 367,600 units
Cost per equivalent unit of material = $1.86072 per unit
Many companies have a _____ that their employees are responsible for abiding by. code of unethics code of ethics set of rules set of laws
Answer:
Code of Ethics
Explanation:
Answer: B) code of unethics
Explanation:
Third Parties In General (not Just With Health Care) Are Inefficient Because
a) its not their money
b) it means a large bureaucracy
c) it aways involves insurance
d) all above
Answer:
Third Parties In General (not Just With Health Care) Are Inefficient Because
b) it means a large bureaucracy.
Explanation:
Ordinarily, in an efficient market, there are no third parties. The market participants remain buyers and sellers. They are aided in their business dealings and for the determination of prices during the exchange by the invisible hand. It is the invisible hand that ensures the existence of market equilibrium between demand and supply. If this invisible hand is removed and a third party comes in to regulate the market and the activities of the market participants, usually the government, it implies that bureaucracy will increase. It has been established that decisions made by the state are not always efficient because more costs are added to the decision-making process.
1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe these trends. (a) and (b) are separate unrelated circumstances. a) Sales increased by a total of 30% in the prior three years, while Days of Sales in Inventories increased also by 30% in each of these three years. Costs of Goods Sold to Sales remained constant. b) Gross property, plant, and equipment increased by a total of 30% during the prior three years. Operating and administrative expense increased relative to sales by 30% in the prior three years. Sales remained constant. Costs of goods sold to sales remained constant. ANSWER:
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales. This result will be different with an increase by a similar margin in the Cost of Goods Sold.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales is an expression of the ratio of the net income to the sales revenue. The net earnings result after deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Four finalists have been selected for a job as a travel agent. Which candidate will most likely get the job?
O Daniel, who has an associate's degree in hospitality and tourism management and has traveled around the world
for recreational purposes.
O Susan, who has a certificate in reservation systems used by travel agencies and has completed a six-month
internship at a travel agency
O Robert, who has a bachelor's degree in hospitality and tourism management and has completed a six-month
internship at a travel agency
O Stephanie, who has a high school diploma, experience traveling, and has worked as a part-time assistant at a
local travel agency for three years.
Answer:
A
Explanation:
plz brainlest
Among the four finalists, the candidate who has been chosen as one for the role of the travel agent is Daniel who has an associate's degree in hospitality and tourism management and has traveled around the world. Hence, option A is appropriate.
What is the role of a Travel Agent?The role of a travel agent is very important nowadays, especially in times when the whole world is reeling under pressure and continuous understanding of things. The most important development over here has to be understood in a variety of ways. The most important of the following things is to clearly understand the notion and understanding of the place where one is targeted to go.
The other most important thing regarding the role of the Travel agent is to carefully understand the requirements of the customers who are willing to travel. To arrange for their own needs and also to make a requisite number of arrangements for the following things.
The other most important thing regarding the role of travel agents is to carefully supervise the hotels, and the travel accommodations- i.e, the transportation and all. The Role of a travel agent is to properly arrange a packaged tour for the same.
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Which of the following are reasons that the short-run aggregate supply curve slopes upward?
Answer:
The short-run aggregate supply curve slopes upward because of all of the following reasons except a. in the short run, as prices of final goods and services increase, some firms are very slow to adjust their prices, thus their sales increase. b. in the short run, an unexpected change in the price of an important resource can change the cost to firms.
Hope this helps :)
When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Oscar contributed cash of $537,750. Both partners received a 50% interest in partnership profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at $ 358,500 . b. What is Padgett's tax basis in the land? $ 89,625 c. If Padgett sells the land several years later for $537,750, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $ 89,625 .
Answer:Amount of Nova and Oscar's gain=$492,937.50
Explanation:
a)According to Land recorded for § 704(b) book capital account purposes, Land is recorded at fair market value. With this, the Padgett properties should record the land at $358,500
b)From the question, it is given that the basis of land is $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.
c)Amount of Nova and Oscar's gain.
Fair market value of Land $358,500
Basis of land $89,625
total $ 448,125
but Gain = Selling price of land - Fair value of Land x interest in partnership profits and capital
= $537,750 - ($358,500+$89,625 )
=($537,750 - $448,125 ) x 50% =$44,812.50
Total gain $448,125 + $44,812.50 =$492,937.50
Exercise 10-19 (LO. 4) Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses
Answer:
deduction for organizational expenses = $5,000
Explanation:
Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.
In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500
7. What is not an example of a spending mistake?
A Paying only the minimum payments on your credit card each month.
B Spending more than you make.
C Paying all of your bills on time. W
D Paying your cable bill late.
The CEO would like to see higher sales and a forecasted net income of $1,000,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization increase by 6% and interest expenses will increase by 5%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,000,000 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.
Answer:
The numbers are missing, so I looked for a similar question, but the ones I found had different numbers. I hope it can help you understand how to solve this one:
Hermann Industries is forecasting the following income statement:
sales $8,000,000 operating costs excluding depr & amort. 4,400,000 EBITDA $3,600,000 depreciation & amortization 800,000 EBIT 2,800,000 Interest 600,000 EBT 2,200,000 Taxes (40%) 880,000 Net income 1,320,000The CEO would like to see higher sales and a forecasted net income of 2,500,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. the tax rate, which is 40%, will remain the same. what level of sales would generate 2,500,000 in net income?
We have to first calculate net income before taxes:
net income = net income before taxes x 60%
net income before taxes = $2,500,000 / 0.6 = $4,166,667
now, net income before taxes = EBIT - interests
$4,166,667 = EBIT - ($600,000 x 110%)
EBIT = $4,166,667 + $660,000 = $4,826,667
now it's EBITDA turn:
EBITDA = EBIT + depreciation and amortization
EBITDA = $4,826,667 + ($800,000 x 110%) = $5,706,667
finally:
total sales = EBITDA + operating costs excluding depr & amort., we can replace total sales by X
X = EBITDA + 0.55X
0.45X = $5,706,667
X = $5,706,667 / 0.45 = $12,681,482.22 ≈ $12,681,482
sales level that will result in a $2,500,000 net income = $12,681,482
According to the Law of Supply and Demand, what will happen when supply increases?
A Quantity supplied will decrease
B Demand will decrease
C Productivity will decrease
D Prices will decrease
Streamsong Credit Bank is offering 5.4 percent compounded daily on its savings accounts. Assume that you deposit $5,100 today. a. How much will you have in the account in 6 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) b. How much will you have in the account in 12 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) c. How much will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)
Answer & Explanation:
a. How much will you have in the account in 6 years?
The formula for Compound Interest is;
= Amount deposited ( 1 + rate)^no of periods
Rate is a yearly rate so daily rate is;
= 5.4%/365
No. of periods;
= 365 * 6
= 2,190 days
= 5,100 * ( 1 + 5.4%/365)^2,190
= $7,051.33
b. How much will you have in the account in 12 years?
No. of periods = 365 * 12
= 4,380 days
= 5,100 * ( 1 + 5.4%/365)^4,380
= $9,749.27
c. How much will you have in the account in 24 years?
No. of periods = 365 * 24
= 8,760 days
= 5,100 * ( 1 + 5.4%/365)^8,760
= $18,636.92
Jason sell appliances at Best Buy. He earns 12% on his total sales for the
week. Last week he made $690.48, what were his total sales for the week?
$3246.38
$1380.96
$5754
$7234.98
Answer:
$5754
Explanation:
Jason earns a 12% commission on total sales.
If he earned $690.48 last week, it means that 690.48 was equivalent to 12% of total sales.
i.e., 690.48 = 12% of total sales
Total sales = 100%
If 12% = 690.48
100% =690.48/12 x 100
=57.54 x 100
=$ 5,754
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,060,000. Lonergan needs approximately $640,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:
a. Borrow $640,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period.
b. Transfer $690,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for:
a. alternative a.
b. alternative b.
2. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for:
a. alternative a.
b. alternative b.
Answer and Explanation:
The Journal entry is shown below:-
1. a. Cash Dr, $640,000
To Notes Payable $640,000
(Being notes payable is recorded)
b. Cash Dr, $676,200
Loss on transfer of receivable Dr, $13,800 ($390,000 × 2%)
To Account receivable $690,000
(Being accounts receivable is recorded)
2. a. Cash Dr, 848,000
To Account Receivable $848,000 ($1060,000 × 80%)
(Being account receivable is recorded)
b. Cash Dr, $158,000 ($1060,000 × 80%) - $690,000
To Account Receivable $158,000
(Being account receivable is recorded)
6. Blackberry announces that they are going bankrupt within the next 6 months. What happens to the demand for Blackberry
phones?
The following disclosures (excerpted) are from the September 2, 2018, annual report of Costco Wholesale Corporation.
The Company generally recognizes sales, net of returns, at the time the member takes possession of merchandise or receives services. When the Company collects payments from members prior to the transfer of ownership of merchandise or the performance of services, the amounts received are generally recorded as deferred sales, included in other current liabilities in the consolidated balance sheets, until the sale or service is completed. The Company reserves for estimated sales returns based on historical trends in merchandise returns and reduces sales and merchandise costs accordingly. The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership.
The Company’s Executive members qualify for a 2% reward on qualified purchases (up to a maximum reward of approximately $1,000 per year), which can be redeemed only at Costco warehouses. The Company accounts for this reward as a reduction in sales. The sales reduction and corresponding liability (classified as accrued member rewards in the consolidated balance sheets) are computed after giving effect to the estimated impact of non-redemptions, based on historical data. The net reduction in sales was $1,394, $1,281, and $1,172 in 2018, 2017, and 2016, respectively.
Revenue Sept. 2, 2018 Sept. 3, 2017 Aug. 28, 2016
($ millions)
Net Sales $138,434 $126,172 $116,073
Membership fees 3,142 2,853 2,646
Total revenue $141,576 $129,025 $118,719
Current Liabilities ($ millions) Sept. 2, 2018 Sept. 3, 2017
Accounts payable $11,237 $9,608
Accrued salaries and benefits 2,994 2,703
Accrued member rewards 1,057 961
Deferred membership fees 1,624 1,498
Other current liabilities 3,014 2,725
Total current liabilities $19,926 $17,495
Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
a. Because Costco does not know how many of its members will continue to the end of the year, cash received from members is recorded as a liability and recognized as revenue only at year-end.
b. When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.
c. The company records revenue when the cash is received.
d. Because Costco has a refund policy, the company records revenue when the cash is received, less an allowance for expected membership terminations.
Answer:
Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
b. When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.Explanation:
The first part of the question clearly states that Costco reports membership fees as unearned revenue. As time passes, and the fees are accrued, it recognizes them as earned revenue. Since the membership fees last for a year, Costco recognizes the revenue associated to them evenly throughout the whole year.
Membership fees are not static, as some fees expire, new ones are received. That is why the membership fees account does not vary significantly during the year, but instead it should follow a relatively stable path.
Ahmed knows the bakery must make at least 6 and at most 48 batches of the Chocolate Decadence. The bakery must also make between 3 and 42 batches of the Mint Breezes. The batches of Chocolate Decadence take 7 minutes in the oven, while batches of Mint Breezes require 8 minutes in the oven. The bakery only has 392 minutes in the oven available. If batches of Chocolate Decadence generate $2.56 in income, and batches of Mint Breezes generate $1.29, how many batches of the pies should Ahmed have the bakery make to get the most income
Answer:
Ahmed must bake 48 Chocolate Decadence pies and 7 Mint Breezes pies in order to get the maximum possible profit = $131.91
Explanation:
let x = chocolate decadence
let y = mint breezes
maximize revenue equation = 2.56x + 1.29y
the constraints are:
7x + 8y ≤ 392
x ≥ 6
x ≤ 48
y ≥ 3
y ≤ 42
using solver, profits are maximized when 48x + 7y = $131.91
The cost C and the revenue R for a brokerage firm depend on the number T of transactions executed. (Both C and R are measured in dollars.) It costs $730 per day to keep the office open, and brokers are paid an average of $25 per transaction. Also, $35 in fees are collected for each transaction. (a) Find a formula that gives C as a function of T. C(T) = (b) Find a formula that gives R as a function of T. R(T) = (c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost. 33 daily transactions
Answer:
C(T) = $730 + $25T
R(T) = $35T
T = 193 transactions
Explanation:
Given that:
C = cost ; R = revenue ; T = number of transactions
Amount paid per transaction = $25
Cost keeping office open = $730
Amount collected on each transaction = $35
(a) Find a formula that gives C as a function of T.
C(T) = Cost of keeping office open + (cost per transaction × number of transactions)
C(T) = $730 + $25T
(b) Find a formula that gives R as a function of T.
R(T) = (Amount collected per transaction * number of transactions)
R(T) = $35T
(c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost.
R = C + 1200
Substitute the value of R and C into the equation:
35T = 730 + 25T + 1200
35T - 25T = 730 + 1200
10T = 1930
T = 1930 / 10
T = 193 transactions
motors are packaged for sale in a certain warehouse. The motors sell for $100 each, but a double-your-money-back guarantee is in effect for any defectives the purchaser may receive (i.e. the seller pays buyer $200 for any defective item). Find the expected net gain for the seller if the probability of any one motor being defective is 0.08. (Assume that the quality of any one motor is independent of that of the others.) Show all work by defining the variables of interest and its distributions.
Answer:
$840
Explanation:
the question misses an important detail, number of motors.
I used 10 as the total number of cars. from the solution i believe you would be able to solve any other problem of this sort yourself.
n = 10
p = 1-probability of any 1 motor being defective
= 1-0.08
= 0.92
going further in solving this problem, i will use the binomial distribution
we have expected value as;
Σxp(x)
= $100 x p(of 100) - $100 x p(of losing 100)
= 100(0.92) - 100(0.08)
= 92 - 8
= $84
from here we multiply 84$ by n
remember n = total number of cars = 10
10 x $84
= $840
Josiah has operated a small mechanic shop for about two years. He has noticed that one employee is much better at welding than the others, another is better at diagnosing the problems with vehicles, and another is better at taking vehicles apart, removing the damaged parts, and then reinstalling the repaired or new parts. Because the business is growing and needs to be run more efficiently than it has in the past, Josiah is considering revamping job assignments. In the past he has let the employees chose what they want to do each day. Considering the abilities of his employees, what would be the best way for him to streamline his business
Answer:
(b) utilize job specialization
Explanation:
These are the options for the question;
(a) make the employee who can diagnose problems the manager
(b) utilize job specialization
(c) utilize job rotation
From the question, we are informed about how Josiah has operated a small mechanic shop for about two years.and how he was able to discover different area of specialization for his employees, in different areas such as welding, removal of the damaged parts, reinstallation of the repaired of new parts.
In this case of Considering the abilities of his employees, the best way for him to streamline his business is utilize job specialization.
Job specialization brings effectiveness as well as efficiency, it is the process in which the employees are able to concentrate on a specific area of the job and allow then to carry the specific role effectively. Job specialization helps in division of task among employee and it increase production as well time management.
Suppose a firm’s managers receive bonuses that increase with the size of the firm’s ROE, which was 30% last year and is forecasted to remain at this level during the coming year provided the firm takes on no new expansion projects. Its cost of capital is 10%. Now the firm has the opportunity to make a new investment that promises 20% return on invest capital. Which of the following statements is not correct?a. The example in this question demonstrates the serious weakness in using ROE as the primary criterion in setting executive compensation.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment.c. The new project should be accepted because it expected return exceeds the cost of the capital that will be used to finance it.
Answer:
.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment
Explanation:
ROE means return on equity
ROE = Net income / shareholders equity
A project should be undertaken if the ROE of the project is greater than the cost of equity
Sandhill Company issued $396,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Sandhill Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2020.
(c) The accrual of interest and the related amortization on December 31, 2020.
Answer:
01-Jan-20
Dr Cash 403,920
Cr Premium on Bonds Payable $7,920
Cr Bonds Payable $396,000
01-Jul-20
Dr Interest Expense $19,602
Dr Premium on Bonds Payable $198
Cr Cash 19,800
31-Dec-20
Dr Interest Expense $19,602
Dr Premium on Bonds Payable $198
Cr Interest Payable $19,800
Explanation:
A. Preparation of Journal entry for the issuance of the bonds
01-Jan-20
Dr Cash 403,920
($396,000 x 102/100)
Cr Premium on Bonds Payable $7,920
(403,920-396,000)
Cr Bonds Payable $396,000
(To record issuance of bond)
B. Preparation of the Journal entry for the payment of interest and related amortization on July 1, 2020.
01-Jul-20
Dr Interest Expense $19,602
(19,800- 198)
Dr Premium on Bonds Payable $198
($ 7,920 / 40 semi annual payments)
Cr Cash 19,800
($396,000 x 10% x 6/12)
(To record interest payment)
C. Preparation for he accrual of interest and the related amortization on December 31,
31-Dec-20
Dr Interest Expense $19,602
(19,800- 198)
Dr Premium on Bonds Payable $198
($ 7,900 / 40 semi annual payments)
Cr Interest Payable $19,800
($396,000 x 10% x 6/12)
(To record interest accrual)
Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner Invested $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common stock. b. The company paid $2,500 cash for rent of office space for the month. C. The company purchased $17,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and Immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. f. The company purchased additional equipment for $5,900 cash. g. The company paid an assistant $3,500 cash as wages for the month. h. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $17,000 cash to settle the liability created in transaction c. J. The company paid $1,100 cash in dividends to the owner (sole shareholder).
Answer:
I used an excel spreadsheet since there is not enough room here.
Explanation:
Effects of transactions using the accounting equation in this transaction will be in the form of double entry.
What is an accounting equation?Accounting is the practice of consistently keeping track of and handling account balances. Basic accounting keeps track of transactions and makes them transparent. All company transactions are split into credits and debits using this system.
Receivables are any possessions that have the potential to provide future financial gain. Your debts to other people are called liabilities.
The accounting equation will be:
Asset = liabilities + equity
The equation in the lengthy form will be:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses.
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. so he needs to record every transaction and account for them in the balance sheet, assets, liabilities, and owner's equity.
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HELP ASAP!!! ! Suppose the government raises taxes on the profits of oil companies. we should expect which of the following? A less innovation in the production of oil and therefore higher oil prices. B The price of oil to be unchanged. C Oil companies will increase production in an attempt to increase revenue. D None of the above will happen.
Answer:
sdedcfgrtgf
Explanation:
gtgtgtgtgtgtgtgtgtgtgt
Jacqul makes $35 an hour working as an accounting assistant. She works 40 hours each month.
Answer:
35x40=1,400
Explanation:
jacqul will make 1,400 dollars per month or 16,800 a year
Answer:
9800
Explanation:
35x40=1400
1400x7=9800
Jenny is a sales manager who is preparing a performance review about one of her employees. The employee hasn’t been achieving his sales targets for the past several months. Jenny must use an objective___in report. Also, she must aim to be ___ of the employee while conveying the negative feedback.
Question 1 options
•convention
•style
•tone
Question 2 options
•critical
•respectful
•scornful
Answer:
Question 1) Tone
Question 2) Respectful
Explanation:
Jenny must use an objective tone in the report. Also, she must aim to be respectful of the employee while conveying negative feedback. The correct option for question 1 is c and question 2 b.
What is feedback?Feedback can be understood as that which occurs when outputs of a system are routed back as inputs as part of a chain of cause-and-effect that forms a circuit or loop. The system can then be said to feed back into itself.
There are two types of feedback, positive and negative. Positive feedback means if the signal feedback from the output is in phase with the input signal, the feedback is called positive feedback. While negative feedback means if the signal feedback is of opposite polarity or out of phase by 180° with respect to the input signal, the feedback is called negative feedback.
The terms "positive" and "negative" were first applied to feedback prior to WWII.
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Fandry Company has obtained the following data concerning a new product: Production Costs, Using traditional costing method $3.00 per unit Production Costs, Using activity-based costing method $5.00 per unit Nonproduction Costs, Using activity-based costing method $2.50 per unit Fandry Company wants the price of the new product to cover all costs plus a 100% markup. The production process used for the low volume product is very complicated and it has a higher proportion of indirect costs than direct costs. What price per unit should Fandry Company charge for the new product
Answer:
$15.00 per unit
Explanation:
Calculation for the price per unit that Fandry Company should charge for the new product
Using this formula
Price per unit for new product =Production Costs, Using traditional costing method per unit ×
Production Costs, Using activity-based costing method per unit
Let plug in the formula
Price per unit for new product=$3.00 per unit ×$5.00 per unit
Price per unit for new product=$15.00 per unit
Therefore the price per unit that Fandry Company should charge for the new product will be $15.00 per unit