E3-18 Comparing cash and accrual basis accounting and applying the revenue recognition principle Momentous Occasions is a photography business that shoots videos at college parties. The freshman class pays $1,000 in advance on March 3 to guarantee services for its party to be held on April 2. The sophomore class promises a minimum of $2,800 for filming its formal dance and actually pays cash of $4,100 on February 28 at the dance. Answer the following questions about the correct way to account for revenue under the accrual basis:
a. Considering the $1,000 paid by the freshman class, on what date was revenue recognized? Diod the recognition occur on the same date cash was received?
b. Considering the $4,100 paid by the sophomore class, on what date was revenue recognized'? Did the recognition occur on the same date cash was received?
Answer:
Momentous Occasions
a. Revenue of $1,000 is recognized on April 2, though the cash receipt is recorded on March 3 as deferred revenue. This means that the recognition occurred on a separate date from when the cash was received.
b. Revenue of $4,100 will be recognized on the date the party is held and not on the February 28 date when the cash was received. This means that the recognition occurred on a separate date from when the cash was received.
Explanation:
Momentous Occasions is required to recognize revenue on the date the service is performed and not when the cash is received in accordance with the accrual concept, unless it chooses to use the cash basis as a small business.
Newton Company currently produces and sells 5,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $40,000. The company is considering investing in new technology that would decrease the variable cost per unit to $9 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 10,000 units of product. What sales price would have to be charged to earn a $90,000 target profit assuming the investment in technology is made
Answer:
26
Explanation:
The computation of sales price is shown below:-
Particulars Amount
New Fixed Costs $80,000
($40,000 × 2)
Variable Cost per unit $9
Total variable cost on 10,000 Units $90,000
(10,000 × $9)
Total cost $170,000
Profit desired $90,000
Sales $260,000
Number of units 10,000
sales price per unit $26
For computing the sales price per unit we simply divide the number of units by sales price per unit.
Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.
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)
You have $25.36 in your account. You make deposits of $36 and $78 and make a withdrawal of $61.24. How much is in the account?
Answer:
78.12
Explanation:
Compile a job advertisement for a receptionist vacancy
Answer:
RECEPTIONIST NEEDED - FRONT DESKJustJay Limited is looking to hire a young and vibrant young person to join
our team as a receptionist for the front desk.
ResponsibilitiesWelcoming clients and prospective clients.Handling both outgoing ang incoming calls to route them as required. Handing mail logistics.Carrying out other Administrative duties as required. QualificationsAge between 21 and 28Computer literateMust possess great Interpersonal skillsMust be a team playerGED holders are welcome to apply. Experience in similar role would be an added advantage.WE OFFER ATTRACTIVE PACKGAGES.
Send us your CV at hrjustjayltd . com or contact us on 1 - 585 - 244 - 8522.
Revise the following to make the tone conversational yet professional.1. As per your recent request, the undersigned is happy to inform you that we are sending you forthwith the procedure manuals you requested.2. Kindly be informed that it is necessary for you to designate the model number of the appliance before we can submit your order.3. BTW, Angela went ballistic when the manager accused her of ripping off office supplies.4. Pursuant to your e-mail of the 12th, please be advised that your shipment was sent April 15.5. R Head honcho wz like totally raggety kuz I wz sick n stuff n mist the team meet. Geez!6. The undersigned respectfully reminds affected individuals that employees desirous of changing their health plans must do so before December 30.
Answer:
Revision of Sentences for Conversational and Professional Tone:
1. We're happy to send to you the procedure manuals that you have requested.
2. Please indicate the model number of the appliance to enable us submit your order.
3. BTW Angela didn't take kindly to the accusation that she was pilfering office supplies.
4. Your goods were dispatched on April 15 in line with your email of April 12th.
5. The Manager said the team couldn't meet because of my illness.
6. All employees who desire to change their health plans should do so before December 30.
Explanation:
The combination of conversational and professional style of writing enables the reader to relate with the author. For the reader it is more credible, natural, and easier to understand when the author uses her natural voice, without too much formality.
Which of the following is the best example of an ethical statement?
Answer:
Ethical dilemmas are situations in which there is a difficult choice to be made between two or more options, neither of which resolves the situation in a manner that is consistent with accepted ethical guidelines. When faced with an ethical dilemma, a person is faced with having to select an option that doesn’t align with an established code of ethics or societal norms, such as codes of law and religious teachings, or with their internal moral perceptions of right and wrong. Explore ethical dilemma examples to see how you might handle these difficult situations.
Explanation:
Ethical Dilemma Situations
Ethical dilemmas occur all too frequently in everyday life. There is rarely a clear answer regarding right and wrong. Instead of being able to rely on external standards, people have to rely on their morals and values to navigate such situations. A storytelling approach, as introduced by Lawrence Kohlberg in the 1930s, is often used to encourage people to think through possible outcomes and consequences of ethical dilemmas.
This is one of the most extreme moral dilemma examples, as well as an ethical dilemma. The choice is between actively causing one person’s death or allowing people (including oneself) to die. Someone following a utilitarian approach to ethics would likely choose to eliminate the person who is stuck, as this philosophy is based on choosing actions that result in the greatest good for the greatest number of people. Someone who focuses primarily on the sanctity of each individual life, however, would not consider harming the person who is stuck to be a viable option.
Following the Rules
One of the most important characteristics of an effective leader is treating people equitably. This involves fairness and consistency, including regards to applying the rules to everyone equally. What should a coach do when a few superstar players get caught breaking rules that should lead to their suspension from the team immediately before a big game that is very important to the team?
If the star players don’t play, there is a good chance the team will lose. If the team has to win this game to advance to the championship game, should that affect the coach’s decision?
If the coach doesn’t apply appropriate consequences to the actions of the players who broke the rules, what lesson are those players learning? Will they continue to break rules?
What about the other players who do follow the rules. Will they learn that the rules are just suggestions and feel like they don’t need to comply in the future?
What if one of the players who broke the rules will miss a chance to be seen by professional scouts if he doesn’t play in the game?
What if the team’s school will earn a large amount of money from television coverage of the big game if the team goes to the championship?
What if the coach is set to earn a big bonus or significant pay increase if the team advances to the championship game?
Coaches are responsible for winning, but they’re also responsible for setting an appropriate example of leadership for players and treating all team members fairly. What may seem to be an obvious choice between right and wrong at first glance is really much more complicated.
A tough decision must be made between two or more solutions in an ethical dilemma when neither of them answers the issue in a way that complies with generally recognized ethical standards.
What is ethical dilemma?In philosophy, ethical dilemmas—also known as ethical paradoxes or moral dilemmas—arise when an agent must choose between two competing moral obligations, none of which takes precedence.
A definition that is similarly comparable describes ethical situations as ones where there is no right decision to be made.
Taking credit for other people's efforts is one example of an ethical conundrum. Giving a customer a subpar product so you can profit. using insider information for personal gain.
A moral (ethical) dilemma is a circumstance in which there is a choice to be made, a decision to be made, an act or action to be taken, a solution to be found, and there may be an unpleasant problem involved.
There are many different kinds of moral quandaries, but the following categories best describe the most prevalent ones:
Epistemic and ontological dilemmas are listed first, followed by self-inflicted and externally imposed dilemmas, obligation dilemmas, prohibition dilemmas, and dilemmas involving a single agent and multiple agents.
Learn more about ethical dilemma, here
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Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. (a) Purchased raw materials for $50,000 on account. (b) Raw materials requisitioned for production were: Direct materials Mixing department $20,000 Finishing department 14,000 (c) Incurred labor costs of $74,000. (d) Factory labor used: Mixing department $44,000 Finishing department 30,000 (e) Manufacturing overhead is applied to the product based on machine hours used in each department: Mixing department-400 machine hours at $30 per machine hour. Finishing department-500 machine hours at $20 per machine hour. (f) Units costing $56,000 were completed in the Mixing Department and were transferred to the Finishing Department. (g) Units costing $70,000 were completed in the Finishing Department and were transferred to finished goods. (h) Finished goods costing $40,000 were sold on account for $55,000.
Answer and Explanation:
The Journal entries are shown below:-
a. Raw materials inventory Dr, $50,000
To Accounts Payable $50,000
(Being purchase of raw material is recorded)
b. Work in process - mixing Dr, $20,000
Work in process - finishing Dr, $14,000
To Raw materials inventory $34,000
(Being work in process is recorded)
c. Factory labor Dr, $74,000
To Wages payable $74,000
(Being labor cost incurred is recorded)
d. Work in process - mixing Dr, $44,000
Work in process - finishing Dr, $30,000
To Factory labor $74,000
(Being factor labor used is recorded)
e. Work in process - mixing Dr, $12,000 (400 × $30)
Work in process - finishing $10,000 (500 × $20)
To Manufacturing overhead $22,000
(Being manufacturing overhead applied is recorded)
f. Work in process - finishing Dr, $56,000
To Work in process - mixing $56,000
(Being completed is recorded)
g. Finished goods Dr, $70,000
To Work in process - finishing $70,000
(Being is recorded)
h. Accounts receivable Dr, $55,000
To Sales revenue $55,000
(Being sales is recorded)
Cost of goods sold Dr, $40,000
To Finished goods $40,000
(Being cost of goods sold is recorded)
A company makes bicycles. It produces 850 bicycles a month. It buys the tires for bicycles from a supplier at a cost of Rs.60 per tire. The company’s inventory carrying cost is estimated to be 15% of cost and the ordering is Rs.90 per order. Compute EOQ.
A: 639 tires
B: 522 tires
C: 580 tires
D: 621 tires
From the information given in the question above , Calculate number of orders to be made per year.
A: 35 orders
B: 39 orders
C: 37 orders
D: 32 orders
Answer:
B: 522 tires
B: 39 orders
Explanation:
a. Calculation for EOQ
First step is to Calculate the Annual Demand which is D
D = Annual demand = (2 tires per bicycle) x (850 bicycles per month) x (12 months in a year)
D=20,400 tires
Second step the ordering cost is given in the question which is :
S = Ordering cost = 90 per order
Third step is to Calculate the carrying cost which is H
H = carrying cost = (15%) x ($60 per unit)
H= $ 13.50 per unit per year
Last step is to Calculate the EOQ
EOQ = √{ (2 x 20,400 x $90) / $13.50
EOQ= 522 tires
Therefore the EOQ is 522 tires which means that the company should order 522 tires each time they places an order.
b. Calculation for the number of orders per year
Using this formula
Number of orders per year = D / Q
Let plug in the formula
Number of orders per year = 20,400 / 522
Number of orders per year = 39 orders per year
Therefore the Number of orders per year will be
39 orders per year.
Kyle is a seventeen-years-old minor who has just graduated from high school. He is attending a university two hundred miles from home and has contracted to rent an apartment near the university for one year at $500 per month. He is working at a convenience store to earn enough income to be self-supporting. After living in the apartment and paying monthly rent for four months, he becomes involved in a dispute with is landlord. Kyle, still a minor, moves out and returns the key to the landlord. The landlord wants to hold Kyle liable for the balance of the payments due under the lease. Discuss fully Kyle’s liability in this situation.
Answer:
kyle does not owe the landlord any liability since the contract is void.
Explanation:
To answer this question i would first explain what disaffirmance means. the term means that to express oneself in a way which shows that they are no longer liable to certain bindings to a contract. A minor is someone who is considered to be younger than 18 years of age. Minors do not have certain rights and obligations and these includes certain civil and political obligations. As a minor kylie has no legal rights to enter a contract with the landlord. The law is protective of people of his age from certain ntypes of responsibilities due to their young age which makes them incapable of handling such. Apart from sports a minor cannot enter into a contract. also we have in this scenario that kyle returned the keys to the landlord and by this action he has shown that he is not bound by any contract with the landlord. since he paid his rent for the period of 4 months, the contract was disaffirmed when he took the keys back to the landlord.
What is a "Halo effect?" Review Later This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions. This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information. This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related. This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.
Answer:
Option C (This is an observer's......related) is the right option.
Explanation:
This would be the individual's evaluation of such an individual, business, brand as well as commodity by an observer, and then it affects the thoughts and emotions including its observer about either the personal appearance including its object. It is a belief that just because someone performs well enough in a certain area, independently of those same activities required, they will naturally do well in another one.All those other decisions also aren't linked to the circumstance issued. So, the solution is indeed the right one.
19. During March, Perpetual Envy Inc. provides $46,000 in consulting services for a customer. The customer paid $24,000; the other $22,000 was on account. Which of the following statements about these transactions is correct? Cash increases by $24,000, Consulting Revenue increases by $22,000, and Accounts Receivable increases by $46,000. Cash increases by $24,000, Accounts Receivable increases by $22,000, and Consulting Revenue increases by $46,000. Accounts Receivable increases by $22,000, Liabilities decrease by $24,000, and Stockholders' Equity increases by $2,000. Revenues increase by $24,000, liabilities decrease by $24,000, and Stockholders' Equity is unchanged.
Answer:
Cash increases by $24,000, Accounts Receivable increases by $22,000, and Consulting Revenue increases by $46,000.
Explanation:
The journal entry is shown below:
Cash $24,000
Accounts receivable $22,000
To Consulting Revenue $46,000
(Being the consulting service provided is recorded)
here the cash and account receivable is increased also at the same time the consulting revenue is also increased as the assets have normal debit balance while the revenue has the normal debit balance
The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.
Answer:
Journal entries
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
Dr Cash 18,000
Dr Accounts receivable 63,000
Cr Service revenue 81,000
2. March 13 Collect on accounts receivable, $51,000.
Dr Cash 51,000
Cr Accounts receivable 51,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,600.
Dr Wages expense 32,600
Cr Cash 32,600
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
Dr Utilities payable 6,200
Cr Cash 6,200
6. November 24 Receive cash in advance from customers, $9,200.
Dr Cash 9,200
Cr Unearned revenue 9,2000
7. December 30 Pay $2,600 cash dividends to stockholders.
Dr Dividends 2,600
Cr Cash 2,600
Adjusting entries
Depreciation for the year on the machinery is $7,200.
Dr Depreciation expense 7,200
Cr Accumulated depreciation, equipment 7,200
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,500
Cr Supplies 2,500
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Dr Unearned revenue 6,600
Cr Service revenue 6,600
Accrued utilities at year-end amounted to $6,400.
Dr Utilities expense 6,400
Cr Utilities payable 6,400
CAN SOMEONE HELP ME PLEASE WITH THE PICTURE ABOVE
Answer:
B
Explanation:
It will start expansion
Which statement demonstrates the misuse of e-commerce?
A. asking for testimonials from satisfied customers
B. offering free shipping
C. offering discounts
D. shipping products that don't match the description online
Answer:
A . asking for testimonials from satisfied customers
Answer:a
Explanation:
Deepa Dalal opened a free-standing radiology clinic. She had anticipated that the costs for the radiological tests would be primarily fixed, but she found that costs increased with the number of tests performed. Costs for this service over the past nine months are as follows:
Month Radiology Test Total Cost
January 2,800 $135,500
February 2,600 $135,060
March 3,100 $175,000
April 3,500 $170,600
May 3,400 $176,900
June 3,700 $186,600
July 3,840 $174,450
August 4,100 $195,510
September 3,450 $85,300
1) Compute the cost formula for radiology services using the high-low method.
2) Calculate the predicted cost of radiology services for October for 3,500 tests using the formula found in Requirement 1.
Answer:
Results are below.
Explanation:
To calculate the fixed and variable cost under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (195,510 - 135,060) / (4,100 - 2,600)
Variable cost per unit= $40.3
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 195,510 - (40.3*4,100)
Fixed costs= $30,280
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 135,060 - (40.3*2,600)
Fixed costs= $30,280
Now, the total cost for 3,500 tests:
Total cost= 30,280 + 40.3*3,500
Total cost= $171,330
why is the GDP become the important factors in decision making in the economic policy?
Answer:
see below
Explanation:
GDP is the value of all commodities and services produced within a country's border, in a particular period. Only finished consumer products and services are considered in calculating GDP.
The GDP value is important because
1. GDP reports the state of a country's economy
An increase in GDP indicates growth in the economy. Growth in real GDP value signifies a health economy that creates adequate job opportunities, increasing incomes, and a wealthier nation. A decline in GDP communicates a recession that requires government
intervention.
2. For investment decisions
Investors use GDP as a reference point when making investment decisions. Declining GDP value indicates bad economic conditions, which will result in lower earnings and reduced stock prices. Increasing GDP value is associated with good returns and higher stock prices.
Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $21,000 during college of which $3,780 was paid for by scholarships. To finance his education, he borrowed $12,500 through a federal student loan program and borrowed another $8,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $1,250 of interest on the federal loans and $850 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $122,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any
Answer:
$1722
Explanation:
incurred expenses = 21000
scholarship amount = 3780
interest on federal loan = 1250
interest on lending institution = 850
Education expenses:
21000 - 3780
= $17220
= $17220/21000
= $0.82 = 82%
the interest incurred would be:-
intereston federal loan + interest from lending institution
= $1250 + $850
= $2100
$2100 * $850
= $1722
Kale, a California CPA, is a sole practitioner who prepared 500 tax returns in 20X6. At the end of 20X6 she took over a tax practice from a close friend who died suddenly and will now prepare nearly 900 returns during 20X7. Due to the increased work load and her inability to hire qualified help, Kale because so busy that she forgot to complete all of her required continuing professional education. When it became time to renew her license in May 20X7 she realized that she was 30 hours short of the total hours required, she had not taken enough accounting and auditing hours, and it was the renewal period in which she was required to take her California Regulatory Review course which she had not completed within the previous six years. Given the situation, what must Kale do
Answer:
Kale should apply to have her license put on inactive status while she completes her CPE requirements. During thatperiod of time she may not engage in the practice of public accounting
Explanation:
What happens when the price of a good increases
Answer:
the value of good increases (goes up)
After graduating, you might decide to start a small business. As discussed in this chapter, owners of any business need to know how to calculate the cost of their products. In fact, many small businesses fail because they don't accurately calculate their product costs, so they don't know if they are making a profit or losing money—until it's too late.Suppose that you decide to start a landscape business. You use an old pickup truck that you've fully paid for. You store the truck and other equipment in your parents' barn, and you store trees and shrubs on their land. Your parents will not charge you for the use of these facilities for the first two years, but beginning in the third year they will charge a reasonable rent. Your mother helps you by answering phone calls and providing customers with information. She doesn't charge you for this service, but she plans on doing it for only your first two years in business.In pricing your services, should you include charges for the truck, the barn, the land, and your mother's services when calculating your product cost?InstructionsWrite a response indicating your position regarding this situation. Provide support for your view.
Answer:
When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.
Explanation:
Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.
In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.
g Time period is important in accounting. Companies need to report revenue and expenses on their income statement based on what they earned and incurred during the accounting period. Assume the company had invested $100,000 in an interest-bearing investment on September 1st of this year. The investment earns 6% interest, but the interest doesn't get paid out until the end of the first six months. What, if any, interest revenue should the company record on their December 31st year ending income statement of this year
Answer: $2,000
Explanation:
As the question says, companies need to report revenue and expenses on their income statement based on what they earned and incurred during the accounting period. This is the Accrual principle in accounting.
The company gets a return of 6% after a year but this return has to be reflected monthly as it earned.
In a year the return is;
= 6% * 100,000
= $6,000
The investment was made on September 1st so from then to December 31st is 4 months.
The interest earned in this first year is therefore;
= 6,000 * 4/12 months
= $2,000
This is the interest revenue that should be recorded on the December 31st year ending income statement of the year.
Andy works at AZ Corporation. He has been working very hard and feels he deserves a pay hike. He wants to seek a meeting with Anna, the manager of AZ Corp., and ask for a raise. Since Anna is busy preparing for the annual board meeting, Andy decides to delay the meeting with Anna for a while. Which of the following dimensions to context influenced Andy's interaction with Anna? Group of answer choices The physical context The social context The chronological context The cultural context
The correct answer is C. The chronological context
Explanation:
The chronological context is related to the time during which a situation or communication occurs; this includes the age, year, season, month, day, etc. In the case presented, the chronological context is some days before the annual board meeting. Moreover, this condition of time is the one that makes Andy delay her meeting with Anna because she knows how busy is Anna during this time of the year, and based on this, she considers it is better to wait before asking her for a rise. According to this, the dimension that influences Andy is the chronological context.
Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $80 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of $900 each. Your money is now invested in a bank that pays a 10% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you?
Answer: The securities are a good investment as their Present Value of $925.17 is greater than their cost of $900.
Explanation:
First calculate the Effective annual rate of return;
= (( 1 + r/n)^n) - 1
= ((1 + 10%/4 ) ^ 4 ) - 1
= 10.38%
The present value of the security is;
= (80 / 1.1038 ) + (80 / 1.1038 ^ 2) + (80 / 1.1038 ^ 3) + (80 / 1.1038 ^ 4 ) + (1000 / 1.1038 ^ 4 )
= $925.17
Why might you want to avoid the use of acronyms and emoticons in business communication
Well because if you used emoticons in a professional business communication, then they would probably see you as untrustworthy or lazy and they would most likely go to somebody else who is more professional.
Project:
Develop a presentation to be used as an advertising brochure for both an "Imaginary
hotel/resort/lodging" and your selected state. This can be best done on either google docs or sides.
Pictures and Colors are required. Be sure to include different attractive features to include, but not
limited to:
Hotel
-Amenities
-Dining Options
-Tours Provided
State
- Tourism
-Attractions
-Food
You can earn up to 50 extra credit points if you prepare a food item popularized in your state and include
pictures and a critique from someone you cooked for.
TO DO:
Answer:
So should i create a power point for you and then include a link or just type it up with images and you can copy and paste into slide i will do the latter.
Explanation:
Racket Corporation and Laocoon Corporation create Raccoon Corporation. Racket transfers $600,000 in assets for all of Raccoon's common stock. Racket distributes its remaining assets ($300,000) and the Raccoon common stock to its shareholder, Mia, for all her stock in Racket (basis $950,000) and then liquidates. Laocoon receives all the Raccoon preferred stock for its $400,000 of assets. Laocoon distributes its remaining assets ($300,000) and the Raccoon preferred stock to its shareholder, Carlos, for all his stock in Laocoon (basis $200,000) and then liquidates. What type of acquisition (if any) is this an example of?
Answer:
Type A reorganization
Explanation:
Type A reorganizations are known as statutory mergers or consolidations. This transaction involves 2 corporations, but one of them (Racket) will absorb the other one (Laocoon).
In this case, Mia doesn't have to recognize any loss or gain resulting from this merger, but Carlos has to recognize a gain equal to the remaining assets that were distributed ($300,000).
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project C
Time: 0 1 2 3 4 5
Cash flow: –$1,400 $640 $600 $640 $380 $180
Should the project be accepted or rejected?
accepted
rejected
What makes buying a foreclosed property risky?
Answer:
almost everything
Explanation:
Selected transactions for the Sleezer Company are listed below.
1. Paid monthly utility bill.
2. Purchased new display case for cash.
3. Paid cash for repair work on security system.
4. Billed customers for services performed.
5. Received cash from customers billed in transaction 4.
6. Dividends paid to owners.
7. Incurred advertising expenses on account.
8. Paid monthly rent.
9. Received cash from customers when service was rendered.
Answer:
1. Paid monthly utility bill. - Decrease in assets and decrease in stockholders’ equity.
Cash (asset) will be used to pay the utility bill and this will reduce Net Income (stockholders equity).
2. Purchased new display case for cash. - Increase in assets and decrease in assets.
The new display will be a fixed asset so asset will increase but it will reduce the cash balance which is also an asset.
3. Paid cash for repair work on security system. - Decrease in assets and decrease in stockholders’ equity.
The repair work is an expense so it will reduce Net income(equity) and it will reduce cash as well.
4. Billed customers for services performed. - Increase in assets and increase in stockholders’ equity.
This will increase Accounts receivable (asset) and Net Income (equity).
5. Received cash from customers billed in transaction 4. - Increase in assets and decrease in assets.
This will reduce the Accounts receivable (asset) and increase Cash (asset). There will be no net effect.
6. Dividends paid to owners. - Decrease in assets and decrease in stockholders’ equity.
This will reduce Cash (asset) as it was used to pay the dividend. It will also reduce Retained earnings (equity).
7. Incurred advertising expenses on account. - Increase in liabilities and decrease in stockholders’ equity.
Accounts payable increases (liability) and Net income reduces (equity).
8. Paid monthly rent. - Decrease in assets and decrease in stockholders’ equity.
Cash (asset) will be used to pay the rent and this will reduce Net Income (stockholders equity).
9. Received cash from customers when service was rendered. - Increase in assets and increase in stockholders’ equity.
This will increase Cash (asset) and Net Income (equity).