Answer:
Randolph's basis in the distributed investment and land are as follows:
Investment = $10,000
Land = $23,000
Explanation:
The first step is that Randolph's basis in his RD Partnership interest of $48,000 is allocated to the distributed assets in an amount equal to the basis RD Partnership.
After this, Randolph will allocate remaining basis to assets which are not cash, hot assets and investment with unrealized appreciation.
Based on the above explanation, Randolph's basis in the distributed are as follows:
Cash = $15,000
Investment = Investment's Inside basis = $10,000
Land = Randolph's basis in his RD Partnership interest - Cash - Investment = $48,000 - $15,000 - $10,000 = $23,000
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service.
Twenty employees worked a total of 41,000 hours last year, 30,000 on residential jobs and 11,000 on commercial jobs. Wages were $16 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis of labor-hours worked, which is also the basis for customer charges. Because of increased competition for commercial accounts,EL&P can charge $60 per hour for residential work, but only $45 per hour for commercial work.
If overhead for the year was $205,000, what were the profits of the residential and commercial services using labor-hours as the allocation base?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 205,000 / 41,000
Predetermined manufacturing overhead rate= $5 per direct labor hour
Now, we can calculate the profit of each service:
Residential:
Revenue= 30,000*60= 1,800,000
Direct labor costs= 30,000*16= (480,000)
Overhead= 5*30,000= (150,000)
Gross profit= $1,170,000
Commercial:
Revenue= 11,000*45= 495,000
Direct labor costs= 11,000*16= (176,000)
Overhead= 5*11,000= (55,000)
Gross profit= $264,000
The following data are available for the four steps: A B C D Activity time per unit (min) 0.25 0.33 0.2 0.5 Capacity per worker (units/min) 4 3 5 2 Number of workers 2 3 2 4 Suppose the steps in activity D are made easier, so the activity time per unit in step D is reduced by 50% (to 0.25 min per unit). If the assignment of workers to steps remains the same, what is the capacity of the entire process in units per min after the activity time per unit in step D is reduced by 50%
Solution :
A B C D
The Activity of time per unit(min) (X) 0.25 0.33 0.2 0.5
Capacity per worker(units/min) (Y) 4 3 5 2
Number of workers (Z) 2 3 2 4
Capacity (Units/min) (ZxY) 8 9 10 8
A and D re the bottlenecks with a minimum capacity of 8 units/min
Hence, initial system capacity = 8 units/min
It is given that activity time per unit in D step is [tex]$\text{reduced by 0.25}$[/tex] min per unit
Capacity/worker = 1/0.25 = 4 per min
Number of worker for D = 4
New capacity of D per min = 4 x 4 = 16 units
Steps A B C D
New capacity(units/min) 8 9 10 16
Therefore now, step A is the bottleneck as it has the lowest capacity of 8 units/min.
Capacity of the entire process = 8 units/min
The purposes of managerial accounting are to provide useful information to aid in:____.a. reviewing past activities.b. determining costs of products and services.c. determining costs of employee wages and salaries.d. comparing actual to planned results.
Answer:
The purposes of managerial accounting are to provide useful information to aid in:____.
d. comparing actual to planned results.
Explanation:
Managerial accounting identifies, measures, analyzes, and communicates financial information to help management achieve organizational goals. It provides data for planning, organizing, directing, and controlling an organization. In addition to identifying past information trends, it is able to make future predictions that aid management decision-making.
Consider this problem: Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil and lube service at this garage is 15 minutes per car, and the standard deviation is 2.4 minutes. The management wants to promote the business by guaranteeing a maximum waiting time for its customers. If a customer's car is not serviced within that period, the customer will receive a 505 discount on the charges. The company wants to limit this discount to at most 5% of the customers. What should the maximum guaranteed waiting time be
Answer:
The maximum time guaranteed = 19.04 minutes.
Explanation:
From the given problem data, we have:
Let Y be the random variable which follows the normal distribution.
So,
Y ~ N(u = 15, SD = 2.4
Where, u = mean and SD = Standard Deviation
Let the maximum time guaranteed is = M
So,
P (Y > M) = 0.05 equation 1
Convert this equation 1 into standard normal variable, that is,
P(Y> M) = 0.05
1 - P(Y [tex]\leq[/tex] M) = 0.05
P(Y [tex]\leq[/tex] M) = 1 - 0.05
P(Y [tex]\leq[/tex] M) = 0.95
P[tex](\frac{Y-u}{SD} \leq \frac{M-u}{SD} )[/tex] = 0.95
P ( Z [tex]\leq \frac{M - 15}{2.4}[/tex] ) = 0.95 Equation 2
From the equation 2, we have,
[tex]\frac{M-15}{2.4}[/tex] = 1.644853627
1.644853627 value is from using the function of Excel
( =NORSINV(0.95)) = 1.644853627
So,
M = 1.644853627 + 2.4 + 15
M = 19.04
Hence, the maximum time guaranteed = 19.04 minutes.
Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine hours and the Deluxe model requires 2 machine hours. The company predicted it would produce 1,100 units of the Standard Model and 770 units of the Deluxe Model during July. The company uses units of input (machine hours) to budget utility costs. The utility rate per machine hour is $0.35. During July, the company produced 1200 units of the Standard model and 850 units of the Deluxe model and used 3400 machine hours. What is the utilities flexible budget for July
Answer:
Beech Manufacturing
The utilities flexible budget for July is:
= $1,225
Explanation:
a) Data and Calculations:
Utility rate per machine hour = $0.35
Standard Deluxe Total
Predicted production 1,100 770 1,870
Expected machine hours 1,650 3,080 4,730
Units produced 1,200 850 2,050
Standard machine hour/unit 1.5 2
Budgeted machine hours
(flexible budget) 1,800 1,700 3,500
Actual machine hours used 3,400
Utilities Static Budget = $1,655.50 (4,730 * $0.35)
Utilities Flexible Budget = $1,225 (3,500 * $0.35)
Utilities Actual Budget = $1,190 (3,400 * $0.35)
For an organization with annual sales of $500 million, purchases of $300 million and profit of $75 million, a 15 percent reduction in the cost of purchases would result in a profit-leverage effect of:_____.
a. 10 percent (sales increase of 10 percent would be required to achieve the same percentage increase in profit).
b. 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).
c. 10 percent (sales increase of 50 percent would be required to achieve the same percentage increase in profit).
d. 15 percent (sales increase of 15 percent would be required to achieve the same percentage increase in profit).
Answer: B. 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).
Explanation:
Annual sales = $500,000,000
Purchases = $300,000,000
Revised purchases = $300,000,000 × (100% - 15%) = $300,000,000 × 85%
= $255,000,000.
Current profit = $75,000,000
Current profit percentage = $75,000,000 / $500,000,000
= 15%
Additional profit due to the reduction in the purchases = Purchases - Revised purchases
= $300,000,000 - $255,000,000
= $45,000,000
Additional sales made = $45,000,000 / 15% = $300,000,000.
Profit Leverage effect = $300,000,000 / $500,000,000 = 0.6 = 60%
Therefore,the correct option is B.
Firms in monopolistic competition would: Select one: a. persistently realize economic profits in both the short and long run b. may realize economic profits in the long run and normal profits in the short run c. tend to incur persistent losses in both the short and long run d. tend to realize economic profits in the short run and normal profits in the long run e. none of the above
Answer:
d. tend to realize economic profits in the short run and normal profits in the long run
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly.
Firms in monopolistic competition would tend to realize economic profits in the short run and normal profits in the long run
four importance of Engineering
Explanation:
Engineering is a profession in which scientific knowledge and mathematics is used and experimented with to develop ways that benefit mankind, making it extremely important to society for several reasons.
Engineering encompasses a whole range of industries that could include on-site, practical construction work as well as evaluating safety systems from an office
An analyst gathered the following information about a company for a fiscal year: QuarterPurchases in UnitsCost per UnitPurchases in DollarsUnit Sales Per Quarter Q1100$12.00$1,200200 Q2200$14.00$2,800200 Q3300$16.00$4,800300 Q4400$18.00$7,200300 FY total1,000 $16,0001000 Beginning Inventory200$10.00$2,000 Ending Inventory under LIFO perpetual is closest to:
Answer:
Ending Inventory under LIFO perpetual is closest to:
$2,800.
Explanation:
a) Data and Calculations:
Quarter Purchases Cost per Unit Purchases in Sales Per Quarter
in Units Dollars Unit
Beginning 200 $10.00 $2,000
Q1 100 $12.00 $1,200 200
Q2 200 $14.00 $2,800 200
Q3 300 $16.00 $4,800 300
Q4 400 $18.00 $7,200 300
FY total 1,200 $16,000 1000
LIFO Ending Inventory:
Beginning 100 $10.00 $1,000
Q4 100 $18.00 $1,800
Total 200 $2,800
b) LIFO (Last-in, First-out) is based on the assumption that inventory items sold are from the latest units in store and not from the earlier units. This means that items bought last are sold first. Therefore, to determine the value of ending inventory,
The HR director at Clearwater Electronics has been asked to create a series of job classifications for a new group of jobs that have recently emerged within the public relations (PR) department. An important part of the process is to decide the number of job classes to use. Which statement best explains why it is important to have the proper number of job classes?
Having the right number of job classes gives a framework for setting fair and equitable compensation for similar jobs and eliminates errors from job evaluations.
Having the right number of job classes gives a framework and ensures departments are properly interpreting job evaluations.
Having the right number of job classes will eliminate the need for continuous job evaluations as employees progress on their career path.
Having the right number of job classes makes it easy to explain to employees why their pay is at a certain level.
Answer: Having the right number of job classes gives a framework for setting fair and equitable compensation for similar jobs and eliminates errors from job evaluations.
Explanation:
From the information given, the statement that best explains why it is important to have the proper number of job classes is that "Having the right number of job classes gives a framework for setting fair and equitable compensation for similar jobs and eliminates errors from job evaluations".
Option B is wrong because having the right number of job classes doesn't mean that the departments are interpreting job evaluations properly.
Option C is wrong because having the right number of job classes doesn't eliminate the need for continuous job evaluations as employees progress on their career path.
Also, having the right number of job classes doesn't mean that it'll be easy to explain to employees why their pay is at a certain level.
Therefore, the correct option is A.
A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is: Multiple Choice $(3,000). $(60,000). $(57,000). $7,000. $(7,000).
Answer:
$(60,000)
Explanation:
Based on the information given we were told that the company reported that its bonds with a par value of the amount of $57,000 are retired for the amount of $60,000 as cash which means that The amount to be reported under cash flows from financing activities is:$60,000 which was the amount that was retired for cash.
Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $31,404 Accounts receivable 72,976 Accrued liabilities 6,860 Cash 22,482 Intangible assets 35,396 Inventory 85,340 Long-term investments 119,409 Long-term liabilities 77,647 Marketable securities 37,628 Notes payable (short-term) 27,112 Property, plant, and equipment 640,352 Prepaid expenses 2,086 Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point
Answer:
Harding Company
The quick ratio is:
= 2.1
Explanation:
a) Data and Calculations:
Accounts payable $31,404
Accounts receivable 72,976
Accrued liabilities 6,860
Cash 22,482
Intangible assets 35,396
Inventory 85,340
Long-term investments 119,409
Long-term liabilities 77,647
Marketable securities 37,628
Notes payable (short-term) 27,112
Property, plant, and equipment 640,352
Prepaid expenses 2,086
Current Assets:
Cash 22,482
Accounts receivable 72,976
Marketable securities 37,628
Prepaid expenses 2,086
Inventory 85,340
Total current assets $220,512
Current Liabilities:
Accounts payable $31,404
Accrued liabilities 6,860
Notes payable (short-term) 27,112
Total current liabilities $65,376
Current assets - inventory = $135,172 ($220,512 - 85,340)
Quick ratio = (Current assets - inventory)/Current liabilities
= $135,172 ($220,512 - 85,340)/$65,376
= 2.1
Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $fill in the blank 1
Answer:
Bond Price or Present value = $23021820.4557 rounded off to $23021820
Explanation:
To calculate the quote/price of the bond today, the present value, we will use the formula for the price of the bond. As the bond is a semi annual bond, the semi coupon payment, semi annual number of periods and semi annual YTM will be,
Coupon Payment (C) = 25000000 * 0.07 * 6/12 = $875000
Total periods (n) = 5 * 2 = 10
r or YTM = 0.09 * 6/12 = 0.045 or 4.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 875000 * [( 1 - (1+0.045)^-10) / 0.045] +
25000000 / (1+0.045)^10
Bond Price or Present value = $23021820.4557 rounded off to $23021820
Nikolas Industries has a cash balance of $20,000 on July 1, 20x8. The company is in the process of preparing the cash budget for the third quarter, with budgeted cash collections and payments as follows:
July August September
Cash Collections $25,000 $22,000 $20,000
Cash Payments:
Purchases of Inventory 5,800 7,000 6,200
Operating Expenses 3,500 4,600 5,300
There are no budgeted capital expenditures or financing transactions during the quarter. Using the data above, what is the projected cash balance at the end of September?
Answer:
$54,600
Explanation:
Cash Budget for the 3rd Quarter
July Aug Sep
Receipts :
Cash Collections $25,000 $22,000 $20,000
Total Receipts $25,000 $22,000 $20,000
Expenditures :
Purchases of Inventory $5,800 $7,000 $6,200
Operating Expenses $3,500 $4,600 $5,300
Total Expenditures $9,300 $11,600 $11,500
Net Receipts $15,700 $10,400 $8,500
Balance b/d $20,000 $35,700 $46,100
Balance c/d $35,700 $46,100 $54,600
therefore,
The projected cash balance at the end of September is $54,600
The projected cash balance at the end of September is $54,600.
The calculation is as follows:
July Aug Sep
Receipts :
Cash Collections $25,000 $22,000 $20,000
Total Receipts $25,000 $22,000 $20,000
Expenditures :
Purchases of Inventory $5,800 $7,000 $6,200
Operating Expenses $3,500 $4,600 $5,300
Total Expenditures $9,300 $11,600 $11,500
Net Receipts $15,700 $10,400 $8,500
Balance b/d $20,000 $35,700 $46,100
Balance c/d $35,700 $46,100 $54,600
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A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $24,000 indicates that Dept. Y had a direct wage expense of $3,000 and Dept. Z had a direct wage expense of $5,000. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$11,000;$13,000
Explanation:
Calculation for Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
First step is to calculate the Indirect wages
Indirect wages = 24,000 - (3000+5000)
Indirect wages= 16,000
Now let calculate Departmental wage expenses for Dept. Y and Dept. Z, respectively,
Departmental wages for dept Y
= 3000 + (16,000/2)
Departmental wages for dept Y=$ 11,000
Departmental wages for dept Z
= 5000 + (16,000/2)
Departmental wages for dept Z= $13,000
Therefore Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:$11,000 ; $13,000
TeaForMe is a tea company that considered branching out into the snack food business. The TeaForMe team offered many new ideas such as flavored chips or paleo cookies. After much discussion, the team eliminated the chips and the cookies because they were inconsistent with the organization's new-product strategy, which was to develop new flavors of tea. In the new-product development process, the TeaForMe company is in the _______ stage.
Answer:
In the new-product development process, the TeaForMe company is in the idea screening stage
Explanation:
The new-product development process has 8 stages that are:
-Idea generation: is when the company looks for new ideas.
-Idea screening: the company evaluates the ideas and filters them to drop the bad ones and pick the good ones.
-Concept development and testing: is when the company develops and evaluates the product concept.
-Marketing strategy: the company creates the marketing strategy to introduce the product to the market.
-Business analysis: the company evaluates if the idea is a good business.
-Product development: is when the concept is developed into a physical product.
-Test marketing: the company evaluates the product and the marketing strategy in the market.
-Commercialisation: this refers to launching the product to the market.
According to this, the answer is that in the new-product development process, the TeaForMe company is in the idea screening stage because they generated a new idea an then, evaluated that idea and decided to drop it because it was inconsistent with the organization's new-product strategy.
An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31
Cash balance according to company’s records $11,100
Add: Outstanding checks $3,585
Error by Chesner Co. in recording Check No. 1056 as $950 instead of $590 360
Note for $12,000 collected by bank, including interest 12,480 16,425
$27,525
Deduct: Deposit in transit on August 31 $7,200 Bank service charges 25 7,225
Cash balance according to bank statement $20,300
Required:
a. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co.,
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
Answer:
See below
Explanation:
Chesner Co.
Bank reconciliation statement
a.
Cash balance according to bank statement
$20,300
Add:
Deposit in transit on July 31
$7,200
Deduct:
Outstanding checks
($3,585)
Balance
$3,615
Adjusted balance
$23,915
Cash balance according to company's record
$11,100
Add:
Error in recording check no
1056 as $950 instead of $590
$360
Note for $12,000 collected by bank including interest
$12,480
Deduct:
Bank service charge
($25)
Balance
$12,815
Adjusted balance
$23,915
b. The amount that should be reported as cash if a balance sheet were prepared for Chesner Co. on July 31, 2016 is $23,915
The first step of the financial planning process is to:
Answer:
Review Of Current Financial Situation
Explanation:
The first step in the financial planning process involves taking a detailed look into a person's current financial situation. This means examining a person's savings, income, debts and current living expenses.
Answer:
Creating and implementing a financial action plan..
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Dr. Bernanke argued two problems contributing to the financial crisis included:________.
A. banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
B. banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
C. banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
D. banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
Answer:
D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.
Explanation:
Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.
Manor Company plans to discontinue a department that has a contribution margin of $25,000 and $50,000 in fixed costs. Of the fixed costs, $21,000 cannot be eliminated. The effect on the profit of Manor Company of discontinuing this department would be: Group of answer choices a decrease of $4,000. an increase of $4,000. a decrease of $25,000. an increase of $25,000.
Answer:
an increase of $4,000.
Explanation:
Calculation to what The effect on the profit of Manor Company of discontinuing this department would be:
Effect on the profit=-$25,000 + ($50,000 - $21,000)
Effect on the profit=-$25,000+$29,000
Effect on the profit=An increase of $4,000.
Therefore The effect on the profit of Manor Company of discontinuing this department would be: an increase of $4,000
On Saturday afternoon, just as you are finishing lunch, you and your partner are dispatched to a local park. When you arrive, you find an 11-year-old girl who was skateboarding and has fallen. She is crying, scared and in pain. Her right wrist is noticeably deformed, and she has some blood seeping from scrapes on her right arm and right leg. When you ask her about her parents, she says she does not know where they are.
What should be your first action?
a. Send your partner to locate her parents.
b. Call for help in locating her parents.
c. Treat the girl to the best of your ability.
d. Withhold your treatment until her parents have been located.
Answer: c. Treat the girl to the best of your ability.
Explanation:
The first action will be to treat the girl to the best of ones ability. Since the girl is in pain and her right wrist is noticeably deformed, and she has some blood seeping from scrapes on her right arm and right leg, the girl should be assessed and attended to.
She needs urgent attention first and that should be the first thing. After she's been treated and her sound cleaned up, then the parents can be looked for.
On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,820,000. The division's book value and fair value less cost to sell on December 31 were $3,050,000 and $2,410,000, respectively. What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement
Answer:
$2,460,000 loss
Explanation:
Calculation for What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement
Using this formula
Loss on discontinued operations in its 2021=Division's loss from operations for 2021+ (Division's book value - Fair value )
Let plug in the formula
Loss on discontinued operations in its 2021=$1,820,000+( $3,050,000 -$2,410,000)
Loss on discontinued operations in its 2021=$1,820,000+$640,000
Loss on discontinued operations in its 2021=$2,460,000
Therefore before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement is $2,460,000
Which of the following statements about economic policy are FALSE?
A. Economic policy is used to ensure all businesses are
following regulations.
B. Economic policy helps to control the level of inflation.
C. Economic policy is used to avoid depressions.
D. Economic policy helps manage the level of unemployment.
Answer: Economic policy is used to ensure all businesses are following regulations
Explanation:
The statements about economic policy are used to ensure all businesses are following regulations. This statement is considered false.
What is Business?An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
A course of action designed to affect or regulate the economy's behavior is known as an economic policy. The government normally implements and oversees economic policy.
Therefore, the right option (A) is correct.
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Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate.
a. 2.08
b. 4.08
c. 8.08
d. None of the given answers e. 5.08
Answer:
A
Explanation:
Answer:
Explanation:b
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $fill in the blank a69834fa4fcefa6_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. fill in the blank d7bbac03b019006_2 fill in the blank d7bbac03b019006_3 fill in the blank d7bbac03b019006_5 fill in the blank d7bbac03b019006_6 fill in the blank d7bbac03b019006_8 fill in the blank d7bbac03b019006_9
Answer and Explanation:
The computation is shown below:
a The Due date
= (21 days in april + 31 days in may + 30 days in june + 31 days in july + 7 days in august
So the due date is August 7
b The maturity value is
= $450,000 + ($450,000 × 8% × 120 ÷ 360)
= $462,000
c The journal entry is
Cash $462,000
To Notes Receivable $450,000
To Interest Revenue $12,000
(Being the receipts of the payment of the note at maturity is recorded)
A note or promissory note is a written promise to pay a certain amount of money on a future date. A future date is called a maturity date.
What do you mean by maturity of a note?The maturity date of the note is the time and day when interest and principal must be paid in full and must be paid.
The calculation of the maturity date is shown below:
a. The Due date of the note is:
= (21 days in April + 31 days in may + 30 days in June + 31 days in July + 7 days in August
So the due date is August 7
b. The maturity value is
[tex]= \$450,000 + (\$450,000 \times 8\% \times \frac{120}{360} ) \\\\= \$462,000[/tex]
c. The journal entry is
Cash $462,000
To Notes Receivable $450,000
To Interest Revenue $12,000
(Being the receipts of the payment of the note at maturity is recorded)
Hence, The calculation of maturity date, maturity value, and the journal for the receipt of the payment of the note at maturity is passed as shown.
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Billy has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his supervisor just does not seem to notice or in Billy’s opinion, care. Billy likes his job and wants to keep it. He listens to what his supervisor says and then his supervisor asks Billy to prepare a written response. Before Billy leaves the room to prepare the response, how should he respond to his supervisor?
Answer:
He could take deep breaths and then respond nonjudgmentally
Explanation:
From the question, we are informed about Billy who has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his supervisor just does not seem to notice or in Billy’s opinion, care. Billy likes his job and wants to keep it. He listens to what his supervisor says and then his supervisor asks Billy to prepare a written response. Before Billy leaves the room to prepare the response, In this case should he respond to his supervisor by taking deep breaths and then respond non-judgmentally when addressing is supervisor.
On January 2, 2020, Fran acquires a business from Chuck. Among the assets purchased are the following intangibles: patent with a 7-year remaining life, a covenant not to compete for 10 years, and goodwill. Of the purchase price, $140,000 was paid for the patent and $60,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $100,000. What is the amount of the amortization de
Answer:
Total amortization deduction is $20,000
Explanation:
The computation of the amortization deduction is shown below:
Patent $140,000 15 $9,333
Covenant $60,000 15 $4,000
Goodwill $100,000 15 $6,667
Total amortization deduction is $20,000
We simply divded the purchase price of each asset with the life i.e. 15 years
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
Select each of the terms with the best description of its purpose.
Definitions:
a. A report that shows predicted balances of assets, liabilities and equity at the end of a budget period.
b. A report that shows predicted revenues and expenses for a budgeting period.
c. Planning future business actions and expressing them as formal plans.
d. Summarizes the effects of investing activities on cash.
e. Shows expected cash inflows and outflows and helps determine financing needs.
f. A comprehensive business plan that includes operating, investing, and financing budgets.
g. Employees affected by a budget help in preparing it.
h. Shows the number of units for a manufacturer to produce in a period.
Terms:
1. Budgeting
2. Master budget
3. Production budget
4. Cash budget
5. Budgeted balance sheet
6. Budgeting
7. Capital expenditures budget
8. Capital expenditures budget
Answer:
a. Budgeted balance sheet.
b. Budgeted income statement.
c. Budgeting.
d. Capital expenditures budget.
e. Cash budget.
f. Master budget.
g. Participatory budget.
h. Production budget.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis. The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
In Financial accounting, some of the key terms associated with budget includes;
a. Budgeted balance sheet: A report that shows predicted balances of assets, liabilities and equity at the end of a budget period.
b. Budgeted income statement: A report that shows predicted revenues and expenses for a budgeting period.
c. Budgeting: Planning future business actions and expressing them as formal plans.
d. Capital expenditures budget: Summarizes the effects of investing activities on cash.
e. Cash budget: Shows expected cash inflows and outflows and helps determine financing needs.
f. Master budget: A comprehensive business plan that includes operating, investing, and financing budgets.
g. Participatory budget: Employees affected by a budget help in preparing it.
h. Production budget: Shows the number of units for a manufacturer to produce in a period.
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $360,000 to $445,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $900,000 and current break-even units are 9,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:
Answer:
Revised contribution margin ratio = 0.55 or 55%
Explanation:
Contribution margin is calculated as the difference between Sales and variable costs. Contribution margin per unit can be calculated by deducting the variable cost per unit from the price per unit. It tells us how much each unit sale is contributing towards covering the overall fixed costs.
Contribution margin = Sales - Variable costs
The contribution margin ratio is when contribution margin is expressed as a percentage of sales. It can be calculated as follows,
Contribution margin ratio = (Selling price per unit - variable cost per unit) / Selling price per unit
Revised variable costs are = 60 - 15 = 45
The revised contribution margin ratio will be,
Revised contribution margin ratio = (100 - 45) / 100
Revised contribution margin ratio = 0.55 or 55%
