Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: Contribution margin per unit Contribution margin ratio Break-even in units A) Increases Increases Decreases B) No change No change No change C) No change Increases No change D) Increases No change Decreases Option C Option B Option D Option A
Answer:
D) Increases No change Decreases
Explanation:
Contribution margin is Sales less Variable Costs. This will increase if the selling price per unit and the variable expense per unit both increase.
Contribution margin ratio is Contribution expressed as a percentage of Sales. This will stay the same when the selling price per unit and the variable expense per unit both increase by the same percentage.
Break-even in units is Fixed Costs divided my contribution per unit. This will decrease as the Contribution margin has increased.
Different classes of stocks are usually issued in order to Group of answer choices maintain ownership control, by holding the class of stock with greater voting rights. pay less dividends to different classes of stock extract perquisites without the other class of stockholders knowing maintain ownership control by holding the class of stock with greater voting rights and pay less dividends to different classes of stock.
Answer:
maintain ownership control, by holding the class of stock with greater voting rights.
Explanation:
Stocks can be divided into two main categories, common stocks and preferred stocks. Preferred stocks grant no voting rights. But common stocks can also be classified in different classes, e.g. class A or class B common stocks. Generally class A stocks have higher voting rights than class B stocks, e.g. class A might have 10 voting rights per stock while class B only has 1.
A real world example is Google that has 3 different classes of common stock:
class A: 1 voting right per stockclass B: held by Google's founders and top management, not traded publicly, and they hold most of the voting rightsclass C: no voting rightsCalistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,620, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $327,000 and $308,000, respectively, and $1,740 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:
Answer:
$488,260
Explanation:
Calculation for Calistoga's accounts receivable at December 31, 2021
Accounts Receivable 1/1/2021 $471,000
Credit sales$327,000
Less Collections (308,000)
Less Write-offs (1,740)
Accounts Receivable 12/31/2021 $488,260
Therefore Calistoga's accounts receivable at December 31, 2021, are:$488,260
Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines:
Category Guidelines
Purchases Pay half in current and half in following month.
Payroll Pay 90% in current month and 10 percent in following
month.
Loan Payments Pay total amount due each month.
Predicted activity for selected months follow:
Category May June July August
Purchases $30,000 $46,000 $48,000 $50,000
Payroll 100,000 130,000 120,000 100,000
Loan Payments10,000 10,000 12,000 12,000
Prepare a schedule showing cash disbursements by account for July and August.
Answer:
Waycross Manufacturing
A Schedule, showing cash disbursements by account for July and August:
Category July August
Purchases $ 47,000 $ 49,000
Payroll 121,000 102,000
Loan Payments 12,000 12,000
Total cash disbursements $180,000 $163,000
Explanation:
a) Data:
Predicted activity for selected months follow:
Category May June July August
Purchases $30,000 $46,000 $48,000 $50,000
Payroll 100,000 130,000 120,000 100,000
Loan Payments 10,000 10,000 12,000 12,000
b) Calculations:
Category May June July August
Purchases (50/50) $15,000 $15,000
23,000 $23,000
24,000 $24,000
25,000
Purchases $47,000 $49,000
Payroll (90/10) $90,000 $10,000
117,000 $13,000
108,000 $12,000
90,000
Payroll $121,000 $102,000
Loan Payments (100%) 10,000 10,000 12,000 12,000
The following information is also available: A) A count of supplies revealed $1,800 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers four years. C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Answer:
the requirements are missing, but I guess that you need to make the year-end adjustment entries
A) A count of supplies revealed $1,800 worth on hand at December 31, 2018.
Dr Supplies expense 2,000
Cr Supplies 2,000
B) An insurance policy, purchased on January 1, 2018, covers four years.
Dr Insurance expense 1,900
Cr Prepaid insurance 1,900
C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018.
Dr Depreciation expense 2,400
Cr Accumulated depreciation 2,400
D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.
Dr Deferred revenues 6,000
Cr Service revenue 6,000
E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Dr Wages expense 3,400
Cr Wages payable 3,400
Sralbn620 Corporation has two divisions: Domestic Division and Foreign Division. Last month, the corporation reported a contribution margin of $47,800 for Domestic Division. Foreign Division had a contribution margin ratio of 25% and its sales were $235,000. Net operating income for the Sralbn620 Corporation was $35,700 and traceable fixed expenses were $55,400.
(ID#32648)
What were Sraibn 620 Corporation's common fixed expenses?
a) $15,450
b) $106,550
c) $55,400
d) $70,850
Answer:
Common fixed expense= $15,450
Explanation:
First, we need to calculate the total contribution margin from the two divisions:
Domestic Division= $47,800
Foreign Division= 235,000*0.25= $58,750
Total contribution margin= $106,550
Now, we can determine the common fixed expense using the following formula:
Net operating income= total contribution margin - traceable fixed expense - common fixed expense
35,700 = 106,550 - 55,400 - common fixed expense
common fixed expense= 51,150 - 35,700
common fixed expense= $15,450
Texas has a relatively regressive tax structure when compared to most states, which means Multiple Choice poorer citizens do not have to pay taxes but also lack access to most public services. Texas has a flat tax (taxing at the same rate for all incomes), which adversely affects poorer citizens. poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens. poorer citizens pay a smaller percentage of their income in taxes than do wealthier citizens.
Answer: Poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
Explanation:
Regressive tax structures mean that the taxes charged are a flat rate across all income groups.
This might sound equitable but isn't because it means that lower income earners see a larger percentage of their income taken than the higher income earners because they have lower incomes to pay the taxes on.
In Texas therefore, poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
Texas has a relatively regressive Tax system, this means that poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
A regressive Tax system is a type of taxation whereby those that are poorer in the society would pay more in taxes than those that are wealthy and rich in the society.
In this type of Tax system, the tax rate falls as the taxable income of the tax payer goes up. This is a direct opposite of the progressive tax system.
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MANAGING THE HEWLETT-PACK..
William R. Hewlett and David Packard, two organisational leaders who demonstrated
a
Eventually they built a very successful company that now produces more than 10,000
products, such as computers, peripheral equipment, test and measuring instruments, and
handheld calculators. Perhaps even better known than its products is the distinct managerial
style preached and practiced at Hewlett-Packard (HP). It is known as the HP way.
The values of the founders - who withdrew from active management in 1978 - still
permeate the organization. The HP way emphasizes honesty, a strong belief in the value of
people, and customer satisfaction. The managerial style also emphasizes an open-door policy,
which promotes team effort. Informality in personal relationships is illustrated by the use of
first names. Management by objectives is supplemented by what is known as managing by
wandering around. By strolling through the organization, top managers keep in touch with
what is really going on in the company.
This informal organizational climate does not mean that the organization structure has
not changed. Indeed, the organizational changes in the 1980s in response to environmental
changes were quite painful. However, these changes resulted in extraordinary company
growth during the 1980s.
Questions :
1.Is the Hewlett-Packard way of managing creating a climate in which employees are
motivated to contribute to the aims of the organization? What is unique abot the HP way?
2.Would the HP managerial style work in any organization? Why, or why not? What are
the conditions for such a style to work
Answer:
Hewlett-Packard (HP)
1. Yes. The HP way of managing is creating a climate in which employees are motivated to contribute to the organizational goals, aims, and objectives. The HP way encourages informality in personal relationships.
2. The HP managerial style would work in any organization if the organization's culture is developed to accept the style. This implies that if the organization's culture does not promote informality, it may not work.
Explanation:
Every organization develops its own cultural practices to suit its climate and structure. These will detect how the organization achieves its objectives and goals. Some organizations develop very formal structures, while others work better in informal climates. The choice depends on the business strategy that the organizations adopt to pursue their business goals.
The airline companies often change their flight prices over time. Assume Mary is planning her trip to New York City during the Christmas holiday. When she first checked the price in September, the ticket price was $300 round trip per person. However, when she checked the price again in early December, she noticed the price increased to $600 round trip per person for the same flight. This is an example of _______________.
Answer:
Third degree price discrimination
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Corporation produces shiny discs. A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit. While the disc would be modified slightly for the special order, the normal unit product cost for each disc is $20.50:
Direct materials $ 5.80
Direct labor 4.00
Variable manufacturing overhead 2.90
Fixed manufacturing overhead 7.80
Unit product cost $ 20.50
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to each disc that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000 in special equipment that would have no salvage value.This special order would have no effect on Rick Corp.'s other sales. The company has enough spare capacity for producing the special order.What would be the annual financial advantage (disadvantage) for Rick as a result of accepting this special order?a. $40,760b. ($15,700)c. ($2,000)d. $16,200
Answer:
Effect on income= $11,280 increase
Explanation:
Giving the following information:
A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit.
Because it is a special order, we will take into account only the differential fixed costs.
First, we need to calculate the total unitary cost and differential fixed costs:
Total unitary variable cost= 5.80 + 4 + 2.9 + 1.9
Total unitary variable cost= $14.6
Total fixed cost= $16,000
Now, we can determine the effect on income:
Effect on income= 2,200*(27 - 14.6) - 16,000
Effect on income= $11,280 increase
A company is completing its annual impairment analysis of the goodwill included in one of its cash generating units (CGU). The recoverable amount of the CGU is $32,000. Other information related to the CGU is provided below:
Goodwill Patents Assets Total
Historical cost $15,000 $10,000 $35,000 $60,000
Depreciation and 0 3,333 11,667 15,000
amortization
Carrying amount $15,000 $6,667 $23,333 $45,000
12/31
Under IFRS, which of the following adjustments should be recognized in the company's consolidated financial statements?
a) Decrease goodwill by $13,000
b) Decrease goodwill by $15,000
c) Decrease goodwill by $3,250; patents by $2,167; and other assets by $7,583
d) Decrease goodwill by $4,333; patents by $1,926; and other assets by $6,741
Answer:
a) Decrease goodwill by $13,000
Explanation:
In IFRS, whenever recoverable amount of a cash generating unit is less than the carrying amount, an impairment loss is recognized. After calculating an impairment loss, it is then allocated to the carrying amount of Cash generating unit's goodwill.
Impairment loss in this case is = Total carrying amount - Recoverable amount of CGU = $45,000 - $32,000 = $13,000. Hence, the impairment loss will be allocated to the carrying value of the goodwill, leading to decrease in goodwill by $13,000.
The MM theory with taxes implies that firms should issue maximum debt.There is a difference between theory and practice because:
Answer:
There is a difference between theory and practice because the theory states with taxes implies that firms should issue maximum debt but in practice, this does not occur because it will result in bankruptcy if firms are issuing maximum debt. There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.
In a master schedule, the planning horizon is often separated into a series of time periods called:
a. lead times
b. stacked lead times
c. time buckets
d. firm, fixed, and frozen
Answer: time buckets
Explanation:
In a master schedule, the planning horizon is often separated into a series of time periods called time buckets.
The time bucket is simply a time interval that is used for planning and scheduling. If and information is to be broken into weekly periods, the weekly buckets break will be utilized. It should be noted that for a MRP, the maximum is the weekly buckets.
When a country (or a person) borrows money to pay yearly debt they are involved in this type of spending.
surplus spending
C. consumer spending
b. deficit spending
d. corporate spending
a.
On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,900; Allowance for Doubtful Accounts, credit balance of $1,131. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible
Answer:
the bad debt expense is $2,825
Explanation:
The computation of bad debt expense is shown below:
= Debit balance of account receivable × given percentage - credit balance of allowance for doubtful debts
= $98,900 × 4% - $1,131
= $3,956 - $1,131
= $2,825
Hence, the bad debt expense is $2,825
We simply applied the above formula so that the correct value could come
And, the same is to be considered
On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $776,067 on December 31 of each year. The payments include interest at a rate of 8%. Prepare an amortization schedule over the three-year life of the installment note. (Round your final answers to the nearest dollar amount.)
Answer:
Period Installment Interest Paid Capital Paid Balance
January 1, 2021 $2,000,000
December 31, 2021 $776,067 $160,000 $616,067 $1,383,933
December 31, 2021 $776,067 $110,715 $665,352 $718,581
December 31, 2021 $776,067 $57,486 $718,581 0
Explanation:
Step 1
First clearly identify the parameters of the Loan
PV = $2,000,000
N = 3
PMT = - $776,067
P/YR = 1
i = 8%
FV = $0
Step 2
Since there is no missing parameter, we can then move on to construct our loan amortization schedule.
Period Installment Interest Paid Capital Paid Balance
January 1, 2021 $2,000,000
December 31, 2021 $776,067 $160,000 $616,067 $1,383,933
December 31, 2021 $776,067 $110,715 $665,352 $718,581
December 31, 2021 $776,067 $57,486 $718,581 0
Answer:
The amortization schedule attached, shows beginning balances,interest payments, annual loan repayments as well as the ending balances up until year 3 where the ending balance becomes $0 indicating that the loan principal has been fully amortized(repaid)
Explanation:
In constructing the amortization schedule, the interest payment is the beginning outstanding balance multiplied by the interest rate.
The principal repayment is the annual repayment minus the interest payment whereas the ending balance is the balance at the beginning of the year minus the principal repayment as shown below:
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $29,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Additionally, a $49 check written and recorded by the company correctly, was recorded by the bank as a $94 deduction. The adjusted cash balance per the bank records should be:
Answer:
The adjusted cash balance per the bank records should be $29,406
Explanation:
Adjusted Balance is the money that a business or individual should have in the bank account assuming all the entries made in the cash book are correct.
As Bank deducted $45 ( $94 - $49 ) more in respect of check written. Check written is a deduction which is made against the payment against the check written.
Balance as per bank statement ___ $29,361
Add: Correction of error ($94 - $49)_$45
Adjusted Cash Balance _________ $29,406
in international trade the Monopoly tendency appearing in which form
Answer:A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.
Explanation:
In international trade monopoly appears in the form of a single seller or producer of a commodity which has no close substitute.
The monopolist is the one that is responsible for setting the price here. He has no competitors. What he sets is what the market buys at.
In such a market only one company renders its service or goods to the entire market. The company usually enjoys abnormal profit due to the reasons that I have stated above.
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Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It announces that it intends to issue $160 million of debt and use the proceeds to buy back common stock. Assume that the MM assumptions hold (i.e., no taxes, no costs of financial distress). a) What is the value of the firm before and after the proposed capital structure change
Answer: See explanation
Explanation:
First we will have to calculate the value of the firm before the debt issue. This will be:
= 25,000,000 × $10
= $250,000,000
We also calculate the value of the firm after after the proposed capital structure change. The value of equity will be:
= $250,000,000 - $160,000,000
= $90,000,000
Therefore, the value of debt will also be $160,000,000.
Problems and Applications Q4 Suppose that the government imposes a tax on heating oil. True or False: The deadweight loss from this tax would likely be larger in the fifth year after it is imposed than in the first year as demand for heating oil becomes more elastic. True False The tax revenue collected from a tax on heating oil is likely to be in the first year after it is imposed than in the fifth year.
Answer:
TrueTrueExplanation:
The deadweight loss in the fifth year will indeed be higher in the fifth year than in the first because deadweight loss has been shown to increase with elasticity.
As demand becomes more elastic as a result of the oil becoming more expensive, tax revenue will decrease in future which means that tax revenue will be less in five years than in the first.
The following inventory data have been established for the Cotton Tops Inc. (1) Annual sales are 100,000 units. (2) The purchase price per unit is $2.00 (3) Carrying cost is 3% percent. (4) Cost per order placed is $10. (5) Desired safety stock is 30 days supply. Use this data to compute: (a) EOQ - 3 pts (b) Average Inventory - 2 pts (c) Maximum Inventory - 1 pt (d) Optimal number of orders per year - 1 pts (e) Total inventory cost - 3 pts
Answer:
a) in order to calculate the EOQ we do not consider safety stock since that is one time purchase.
EOQ = √(2SD / H)
S = order cost = $10
D = annual demand = 100,000 units
H = annual holding cost = $2 x 3% = $0.06
EOQ = √[(2 x $10 x 100,000) / $0.06] = √33,333.33 = 5,773.5 ≈ 5,774
b) average inventory = (5,774 / 2) + (100,000/12) = 2,887 + 8,333 = 11,220 units
c) maximum inventory = 8,333 + 5,774 = 14,107
d) optimal number of orders = 100,000 / 5,774 = 17.32 times
e) total inventory cost = (17.32 x $10) + (11,220 x $0.06) + (100,000 x $2) + (8,333 x $2) = $173.20 + $673.20 + $200,000 + $16,666 = $217,512.40
Ivanhoe Corporation acquired End-of-the-World Products on January 1, 2017 for $6500000, and recorded goodwill of $1220000 as a result of that purchase. At December 31, 2018, the End-of-the-World Products Division had a fair value of $5540000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $4838000 at that time. What amount of loss on impairment of goodwill should Ivanhoe record in 2018
Answer:
Ivanhoe Corporation
The amount of loss on impairment of goodwill that Ivanhoe should record in 2018 is:
$518,000.
Explanation:
a) Data and Calculations:
Goodwill on acquisition = $1,220,000
December 31, 2018:
Fair value of Investee (End-of-the-World Products Division) = $5,540,000
The fair value of the net identifiable assets of the Division (excluding goodwill) = $4,838,000
Goodwill = $702,000 ($5,540,000 - $4,838,000)
Impairment loss = $518,000 ($1,220,000 - $702,000)
b) A Goodwill impairment loss is the recognized reduction in the carrying amount of this intangible asset that is triggered by a decline in its fair value. When the fair value of acquired Goodwill declines below its carrying amount, Ivanhoe Corporation is expected to write off the difference (the impairment loss) in its income statement for 2018.
koshys coffe in bagalore is quaint establishment nesteld near mg road in the central business distirct it serves coffee and fruit cake to a clientel that has been enjoying these products for over fifty years the demand for coffee beans is 6600 cases per year each case has 24 ten pound bags it would be distraus fro them to run out of coffe so tye keep a safety stock of 30 cases the cases cost 4800 and it costs 5 per case to order coffee. as coffee is perishable prudct the holding ocst is fairly hight 40/case/year the lead time to recive an order is seven days koshys is open 300 days a year.
What is their annual ordering cost if they order at their EOQ level?
Answer:
812.41
Explanation:
Demand D = 6600 cases
Ordering cost S = 5
Holding cost H= $40
Economic order quantity = EOQ
Q = [tex]\sqrt{2DS/H}[/tex]
Q = [tex]\sqrt{(2*6600*5)/40}[/tex]
Q = [tex]\sqrt{1650}[/tex]
Q = 40.620192
Q = 40.62 cases
Annual ordering cost = D * S / EDQ
Annual ordering cost = 6600 * 5 / 40.62
Annual ordering cost = 33000 / 40.62
Annual ordering cost = 812.4076809453471
Annual ordering cost = $812.41
So, their annual ordering cost if they order at their EOQ level is 812.41
Mr. Dealer bought a fleet of SUVs (sport utility vehicles) from General Motors (GM) on credit, GM agreeing not to assign the resulting account receivable without Dealer's consent. GM later, without debtor dealer's consent, assigned the account to The Bank of New York (BNY) for consideration. Dealer made payments to BNY, but claimed damages from GM for breach of contract. 1. Could Dealer collect damages from GM
Answer:
Yes, Dealer could collect damages from GM because basically GM breached the contract. Any time a contract is breached, the non-breaching party can sue. But the real question here is what amount could the court assign to Dealer as compensation for damages incurred. If you want to rephrase this question, it would be: What damages did Dealer suffer due to GM's breach.
If the damages are not significant, then the court will probably assign some amount for nominal damages. To be honest, the greatest expenses here are actually the legal costs of the lawsuit. Unless Dealer can prove that assigning the contract actually hurt them (which I doubt), then the court will assign a small amount. Sometimes nominal damages can be very small and mostly symbolic, e.g. $1.
The Dealer could not collect damages from GM because he did not suffer any harm from the assignment of the account receivable.
The Dealer could have refused to pay the Bank of New York and claimed a breach of contract against GM Motors. But it was not a material breach.
Secondly, the sales agreement with GM Motors only required the debtor dealer's consent before the assignment. It did not forbid GM Motors from assigning the account. It does not seem that any penalty was agreed upon for breach of this clause.
Thus, the Debtor Dealer could not collect damages from GM Motors because he cannot substantially prove that GM's action put him in financial loss.
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Bantam company calculated its net income to be $77,600 based on the unadjusted trial balance. The following adjusting entries were then made for: Salaries and wages owed but not yet paid of $795. Interest earned but not received from investments of $755. Prepaid insurance premiums amounting to $555 have expired. Deferred revenue in the amount of $755 has now been earned. Required: Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
Answer:
$77,760
Explanation:
After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.
Item of expenses = unpaid salary + Prepaid insurance (Expired)
Item of income = Interest earned + revenue
Net income after deduction = 77,600 - 795 - 555 + 755 + 755
Net income after deduction = $77,760
Liam has been employed by the skateboard company, Alien Workshop for two years. Each February, Liam meets with his boss, Brandon, at Bill’s Cafe to review his employee performance over the last 12 months. Brandon reviews Liam’s prior year goals, discusses his performance and whether he met his performance expectations, and then sets goals for Liam to accomplish over the coming year. Brandon has just conducted ________ with Liam.
Answer:
a performance appraisal
Explanation:
Looking at the information above, it is possible to say that Chief Brandon conducted a performance appraisal with Liam.
Performance appraisal is a method that the organization uses to provide feedback to employees on their performance in fulfilling their tasks and obligations in their position at the company.
This review can happen in different periods of time according to the need perceived by each organization, and its central objective is to make an in-depth analysis of the employee's performance, so that possible occurrences in relation to their work are justified and so that the employee can check how your overall performance is doing and look for ways to improve your performance and become more productive and motivated in your position.
A company has $110,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $1,000 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Answer:
Provision on accounts receivable = $110,000 * 4% = $4,400
Total allowance for doubtful accounts = $4,400 - $1,000 = $3,400
Date Account Titles and Explanation Debit Credit
Bad debt expense $3,400
Allowance for doubtful accounts $3,400
(To record the bad debt expense)
Suppose the Digby company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?
A- Niche cost leader
B- Niche differentiation
C- Broad cost leader
D- Broad differentiation
Answer:
D- Broad differentiation
Explanation:
Differentiation strategies are useful if buyers needs and preferences are too diverse, one can be fully satisfied by standardizing product offering.
A broad differentiation strategy is simply the competitive approach used when buyers' needs and preferences are too different or large to be satisfied by a product that is importantly identical from one seller to the other seller.
is fulfilled if a big scope of buyers find the company's offering more enticing than that of rivals and worth a somewhat higher price. It makes profitability to increase if the higher price the product commands exceeds the added costs of achieving the differentiation.
On June 30, Company issues , -year bonds payable with at face value of . The bonds are issued at face value and pay interest on June 30 and December 31. Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment on December 31. Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Answer:
1. Dr Cash $ 98,000
Dr Discount on Bonds Payable $2,000
Cr Bonds payable $100,000
2. Dr Interest Expense $ 4,050
Cr Discount on Bonds Payable $50
Cr Cash $4,000
Explanation:
1. Preparation of the journal entry for the issuance of the bonds on June 30
Dr Cash $ 98,000
( $ 100,000 x 0.98 )
Dr Discount on Bonds Payable $2,000
($100,000 - $98,000)
Cr Bonds payable $100,000
2. Preparation of the Journal entry to record the semiannual interest payment
Dr Interest Expense $ 4,050
($4,000 + $50 )
Cr Discount on Bonds Payable $50
( $2,000 x 1/40 )
Cr Cash $4,000
($ 100,000 x 8% x 6/12 )
Furniture purchased from Kailash for Rs. 6,000.
Answer:
What's the question or is this a statement?
Explanation:
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