Answer:
The Underwood Corporation
Journal Entries for 2021 and 2022:
June 12, 2021:
Debit Accounts Receivable $33,200
Credit Service Revenue $33,200
To record the provision of services to customers on account.
September 17, 2021:
Debit Cash Account $18,500
Credit Accounts Receivable $18,500
To record the receipt of cash on account.
December 31, 2021:
Debit Uncollectible Expense $6,615
Credit Allowance for Doubtful Debts $6,615
To record 45% of accounts receivable estimated as uncollectible.
March 4, 2022:
Debit Accounts Receivable $48,200
Credit Service Revenue $48,200
To record the provision of services to customers on account.
Explanation:
a) Data and Calculations:
Accounts Receivable balance = $14,700 ($33,200 - $18,500)
45% of balance estimated as uncollectible = $6,615 (14,700 * 45%)
b) The Underwood Corporation uses the general journal to record transactions that occur on a daily basis. The journal identifies the accounts for each transaction and the ones to be debited and credited respectively.
Answer:
$48,200
Explanation:
Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina Group of answer choices delivers the key to Harry. checks her suitcase. all of the choices. boards the plane.
Answer:
A bailment is created when Gina:
delivers the key to Harry.
Explanation:
Bailment refers to the temporary handing over of the physical possession of a property by the bailor to another person, called the bailee. As an agreement, it establishes a contractual relationship between the bailor and the bailee over the bailed property without the transfer of ownership. It may be for the mutual benefit of both parties or for the exclusive benefit of either party.
Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $31,420,000. The mine was estimated to contain 290,000 tons of ore and to have a residual value of $3,000,000 after mining operations are completed. During the year, 275,000 tons of ore were removed from the mine. At year-end, the book value of the mine (cost minus accumulated depletion) is:
Answer:
$4,470,000
Explanation:
Cost per ton = Cost - Salvage value / Estimated tons
Cost per ton = 31,420,000 - 3,000,000 / 290,000
Cost per ton = $98 per tons
Tons remaining = 290,000 - 275,000
Tons remaining = 15,000 tons
Book value of the mine at year-end = 15,000 tons*$98 + $3,000,000
Book value of the mine at year-end = $1,470,000 + $3,000,000
Book value of the mine at year-end = $4,470,000
Exercise 183 Wayne Company reported net income of $265,000 for 2020. Wayne also reported depreciation expense of $45,000 and a loss of $8,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $6,000 decrease in prepaid expenses.Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.
Answer:
Net cash flow of the operating activities is $356,000
Explanation:
Wayne Company
Partial statement of Cash flow
For the year Ended December 31, 2021
Cash flow from operating activities:
Net Income $265,000
Adjustment to reconcile net income to net
cash provided by operating activities
Depreciation expenses $45,000
Loss on sale of equipment $8,000
Decrease in accounts receivable $15,000
Decrease in prepaid expenses $6,000
Increase in accounts payable $17,000 $91,000
Net cash provided by operating activities $356,000
Uniform Supply accepted a $8,400, 90-day, 8% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid
Answer:
Cash $8,568, credit Interest Revenue $28, credt Interest Receivable $140, credit Notes Receivable $8.400
Explanation:
The journal entry in the case when the note is paid is as follows:
Cash $8,568
To Interest revenue $28 ($8,400 × 8% × 15 ÷ 360)
To Interest receivable $140 ($8,400 × 8% × 75 ÷ 360)
To Notes receivable $8,400
(To record the note receivable)
Here the cash is debited as it increased the assets while on the other hand the interest revenue, interest receivable and note receivable is credited as it increased the revenue and decreased the assets
Present Value of an Annuity of 1 Periods8%9% 10.926 0.917 0.909 21.783 1.759 1.736 32.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $195000 and is expected to generate cash inflows of $78000 at the end of each year for three years. The net present value of this project is $39000. $19742. $2418. $197418.
Answer:
d. $197,418
Explanation:
Profitability index for this project = Present value of cash inflows / Present value of cash inflows
Profitability index for this project = 2.531*$78000 / $195000
Profitability index for this project = $197,418 / $195,000
Profitability index for this project = 1.0124
So, the net present value of this project is $197,418
The Baldwin Company currently has the following balances on their balance sheet: Total Assets $256,555 Total Liabilities $149,320 Retained Earnings $49,793 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
Answer: $80,242
Explanation:
Common stock = Assets - Liabilities - Retained earnings
Assets next year = 256,555 + 55,000
= $311,555
Liabilities remain unchanged.
Retained earnings
= Opening retained earnings + Net income - dividends
= 49,793 + 44,200 - 12,000
= $81,993
Common stock next year;
= 311,555 - 149,320 - 81,993
= $80,242
Irrespective of whether a firm produces or shuts down in the short run, fixed cost is equal to its _____
a. average variable cost.
b. total cost.
c. sunk cost.
d. total revenue.
e. marginal cost.
Answer:
c. sunk cost.
Explanation:
Because in short run, fixed cost doesn't changes with output, that is whether we produce or not, we have to pay for it, so it is considered as Sunk cost. Also like Sunk cost, we don't make decisions with fixed costs.
The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except​:_________
a. issuing currency.
b. voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.
c. being the final authority for the discount rate.
d. deciding which banks can obtain discount loans.
Answer:
B
Explanation:
The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.
A telephone company is considering building a new automated switching distribution substation with a useful life of 20 years to support new suburban developments. The substation is located in a state in which the combined tax rate is 40%, and the telephone company uses a 15% real interest MARR to assess capital investment projects. Estimated real dollar revenues and costs are as follows:Category Amount Building initial cost $1,157,000 Building salvage cost $250,000 Equipment initial cost $775,000 Equipment cost year 2 $150,000 Equipment salvage value $36,500 Annual revenues $650,000 year 1Revenue arithmetic gradient $20,000 year 2 to 5Annual revenues $750,000 year 6 to 20Annual operating expenses $185,000 first 10 years $230,000 year 11 to 15 $275,000 year 16 to 20The substation will be put into service on the first day of the telephone company’s fiscal year. Using MACRS depreciation, what will be the telephone company’s after tax equivalent uniform annual worth for the substation?
Answer: you jhuu uhuh nbu
Explanation:
A hypothetical futures contract on a nondividend-paying stock with a current spot price of $60 has a maturity of 1 year. If the T-bill rate is 5%, what should the futures price be
Answer:
$63
Explanation:
Calculation for what should the futures price be
Using this formula
Future price=Current spot price (1 + r)
Let plug in the formula
Future price= $60*(1+0.05)
Future price= $60* (1.05)
Future price= $63
Therefore what should the futures price be is $63
(a) Based on the information provided, describe the ways in which Volkswagen did not fulfill the requirements of effective corporate governance.
(b) In what ways did the Board of Directors sidestep its obligations to protect shareholder interests?
(c) How could Volkswagen better select its Board of Directors to avoid mistakes such as the emissions
scandal in 2015?
Answer:
I believe Volkswagen did not fulfill the requirements of effective corporate governance mainly because the board didn’t have enough independent directors present.
The essential driver is the nonappearance of a solid gathering of independent directors. In view of German Corporate law, administration is given by a Management Board and a Supervisory Board, with representatives making up half of the Supervisory Board. This ought to have took into consideration in any event half of the Supervisory Board to be completely independent. While remaining inside the 'letter of the law,' they evaded the 'spirit of the law' by cycling recent former senior executives through the Supervisory Board Chairmanship position and other board positions. This had the impact of expelling genuinely independent oversight.
To select the next board members and avoid any future issues Volkswagen can keep in mind the following things about the board that it is :
Is well informed about the company’s performance.
Guides and judges the CEO and other top executives.
Has the courage to curb management actions the board believes are inappropriate or unduly risky.
Certifies to shareholders that the CEO is doing what the board expects.
Provides insight and advice to management.
Is intensely involved in debating the pros and cons of key decisions and actions
Explanation:
find median for the following terms is 72 76 64 80 68 61 85 91 62 82
Answer: 74 ? i think
A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an annual carrying cost of 39 percent of the purchase price per crate. Ordering costs are $27. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ
Answer:
$1,498.86
Explanation:
Given that;
Packing of crates per month(u) = 779
Annual carrying cost of 39% of the purchase price per crate
Ordering cost (S) = $27
D = 779 × 12 = $9,348 crates per year
H = 0.39P
H = 0.39 × $12
H = $4.68 crates per year
Total ordering cost = D/Q × S
= ( $9,348 / 779 ) × $27
= $324
Total Holding cost = Q / 2 × H
= ( 779 / 2 ) × $4.68
= $1,822.86
Annual savings = Total holding cost - Total ordering cost
= $1,822.86 - $324
= $1,498.86
The firm would be saving $1,498.86 annually.
Supervisor: "He is going to rue missing today's training session." Why would he need to make up for missing today's training session? Why would he be mad about missing today's training session? Why would he regret missing today's training session? Why would he love missing today's training session? Why would he try missing today's training session?
Answer:
He would need to make up for missing today's training session because it is going to be a very important session that will help him a lot to improve his skills.
He would be mad about missing it because he would lose that valuable opportunity to improve his skills, as well as because he would have to make up for missing it.
He would regret missing the session for the same reason.
He tried missing today's session because he had other things on mind, more pressing tasks, the session is valuable but boring, etc.
The reason he would regret missing today's training session since it will be a crucial session that will greatly assist him in improving his talents.
What are training sessions?Training programs are seen as an important aspect of human resource development. It's a well-organized instrument for bringing certain abilities up to the target level using knowledge, training, coaching, and practice.
Thus, The reason he regret missing today's training session is the right as the training program is significant for him.
Learn more about training sessions here:
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Beth, an American citizen, travels to Italy on vacation and buys an espresso machine to bring home. Her purchase increases:_____
a. Italy's GDP
b. Italy's GDP and U.S. GDP, since Beth spent dollars buying the machine.
c. U.S. GDP since she will have the machine with her at home in the U.S.
d. Neither U.S. nor Italy's GDP, since the product was bought in one country and used in another.
Answer:
Italy's GDP
Explanation:
Gross Domestic Product (GDP) is defined as the market value of all final goods and services produced in a country during a period of time e.g one year. It help analyze the quality of life - living standards and measure economic growth. Traveling to another country and purchasing thetheirur product or product there is increasing that country's GDP.
A well-known fashion brand in Pakistan recently faced a scandal. The owner's husband got arrested for allegedly sending their employee away upon diagnosis of Corona virus. The Police claimed the designer and her husband should have notified the authorities and admitted the sick employee to a hospital. However, the couple claimed their duty was to just send the employee away after guiding him. The husband got released the very next day for which they thanked Prime Minister.
Answer:
ok
Explanation:
is this real ?? when did this happen ?
Morgan Handley and Tricia Holbrook are discussing the new leasing standard. Morgan believes the standard requires that the lessee use the implicit rate of the lessor in computing the present value of its lease liability. Tricia is not sure if Morgan is correct. Explain the discount rate that the lessee should use to compute its lease liability.
Answer:
The description according to the circumstance has been presented in the paragraph following.
Explanation:
The lessee may necessitate a rate throughout determining the present value about individuals depreciation expense. The lessee would be expected that calculate his or her contingent liability by considering the implied rate throughout the lease unless that amount is conveniently calculated and whether the implied rate isn't appropriate, the lessee may be using the cumulative borrowing costs. The implied frequency including its lease would be the purchase price of the ongoing loan repayments, any asset-backed cost of its asset, or some additional financial labor including its lender.The leaseholder may be using the implied rate that measures his lease liability whether it is immediately calculated and whether the implicit value is not understood to them, he will be using the proportional money supply.
Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the next year, the chance of recession is 40%, and the chance of normal condition is 60%. The stock's expected return next year is ______ %.
Answer: 8%
Explanation:
Expected return is a weighted average of the different returns that a stock will have in different economic conditions.
This stock's expected return is;
= (Probability Economic state * Return given economic state) + (Probability Economic state b * Return given economic state b)
= ( 40% * -10%) + (20% * 60%)
= 8%
George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents per unit. George sold the contract at 278. What is George's return on invested capital
Answer:
-203.4%
Explanation:
Initial investment = 2,500*349*10%
Initial investment = 87,250
Return = (278 - 349) * 2,500 unit
Return = -71 * 2,500 unit
Return = -177,500
Return on invested capital = Return / Initial investment
Return on invested capital = -177,500/87,250
Return on invested capital = 2.034383954154728
Return on invested capital = -203.4%
What is the best source of information to use when purchasing a new car?
O Social media posts
O Car salesman on the lot
O Advertisement in a car magazine
O Unpaid reviews on reputable car sites
Option D. Unpaid reviews on reputable car sites
What sources of information do you have about cars?Awards and rankings. There are many awards and many websites publish rankings of vehicles in different categories.
NHTSA or IIHS. These two organizations evaluate the safety of new cars.
Government website.
Understanding how a car works can help you drive more safely, reduce the risk of accidents, and extend the life of your car. For example, if you know how brakes wear over time, you can identify signs of wear early and replace them before increasing the risk of brake failure.
Learn more about purchasing at
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A company's Inventory balance at the end of the year was $203,300 and $217,000 at at the beginning of the year. Its Accounts Payable balance at the end of the year was $101,000 and $95,300 at the beginning of the year, and its cost of goods sold for the year was $737,000. The company's total amount of cash payments for merchandise during the year equals:
Answer:
The answer is $745,000
Explanation:
Inventory: Closing balance - opening balance
$203,300 - $217,000
=$13,700$13,700
Inventory increased by $13,700
For accounts payable
$101,000 - $95,300
$5,700
Accounts payable increased by $5,700
Amount of cash paid is
Cost of goods sold + increase in inventory - increase in accounts payable
$737,000 + $13,700 - $5,700
=$745,000
Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $820,000. The estimated residual value of the building is $52,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year
Answer:
The depreciation expense for the second year would be $60,352.
Explanation:
Double-declining-balance can be described as a method of depreciation method that depreciates an assets at twice the rate of the straight line depreciation method.
The depreciation expense for the second year can then be calculated as follows:
Straight line depreciation rate = 1 / Number expected useful life = 1 / 25 = 0.04, or 4%
Double-declining depreciation rate = Straight line depreciation rate * 2
= 4% * 2 = 8%
Year 1 depreciation expense = Building cost * Double-declining depreciation rate = $820,000 * 8% = $65,600
Year 2 depreciation expense = (Building cost - Year 1 depreciation expense) * Double-declining depreciation rate = ($820,000 - $65,600) * 8% = $754,400 * 8% = $60,352
Therefore, the depreciation expense for the second year would be $60,352.
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whether the demand curve or the supply curve increases by dragging the item to the appropriate category.
Answer:
see below
From online search the situations as a below:
a. The government gives consumers a subsidy to buy hybrid cars.
b. More automobile producers start producing hybrids.
c. The price of non-hybrid cars falls.
d. The price of batteries for hybrid cars rises.
e. Gasoline prices rise.
Explanation:
A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.
b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.
c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.
d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.
Both the demand and curve curves will not increase.
e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.
Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for both Todd and Jorge to avoid this risk would be to organize their firm as a(n):
Answer:
corporation
Explanation:
From the question, we are informed about Todd and Jorge who have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. N this case, One way for both Todd and Jorge to avoid this risk would be to organize their firm as corporation. Corporation can be regarded as legal entity which could be set up by shareholder or individuals so that profit can be made. It gives room for contracts entering, remition of taxes by federal and state, own asset , ability to sue and be sued.
Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,200, and its ending inventory on December 31 was understated by $15,400. In addition, a purchase of merchandise costing $21,400 was incorrectly recorded as a $2,140 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:
Answer:
the cost of goods sold is $34,460 understated
Explanation:
The computation of the cost of goods sold is shown below
Let us assume the cost of goods sold be X - Y
X + $30,200 + ($21,400 - $2,140) = Y + $15,400
X + $49,460 = Y + $15,000
X - Y = $49,460 - $15,000
X - Y = $34,460
Hence, the cost of goods is $34,460
Since both the ending and opening inventory are understated so the cost of goods sold is also understated
Therefore the cost of goods sold is $34,460 understated
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand production facilities in order to meet an increase in demand. He estimates that this expansion will produce a rate of return of 11%. The firm's target capital structure calls for a debt/equity ratio of 0.8. See-Saw currently has a bond issue outstanding that will mature in 25 years and has a 7% annual coupon rate. The bonds are currently selling for $804. The firm has maintained a constant growth rate of 6%. See-Saw's next expected dividend is $2 (D1), its current stock price is $40, and its tax rate is 40%. Should it undertake the expansion? (Assume that there is no preferred stock outstanding and that any new debt will have a 25-year maturity.)
Answer and Explanation:
The computation is shown below:
Debt = D ÷ (E + D)
= 0.8 ÷ (1 + 0.8)
= 0.4444
Now
Weight of equity = 1 - Debt
= 1 - 0.4444
= 0.5556
As per Dividend discount model
Price = Dividend in 1 year ÷ (cost of equity - growth rate)
40 = $2 ÷ (Cost of equity - 0.06)
Cost of equity = 11%
Cost of debt
K = N
Let us assume the par value be $1,000
Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N
k=1
K =25
$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25
k=1
YTM = 9
After tax cost of debt = cost of debt × (1 - tax rate)
= 9 × (1 - 0.21)
= 7.11
WACC = after tax cost of debt × W(D) + cost of equity ×W(E)
= 7.11 × 0.4444 + 11 × 0.5556
= 9.27%
As we can see that the WACC is lower than the return so it should be undertake the expansion
A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half of its selling price
Answer:
n= 6.11 years
Explanation:
Giving the following information:
Present value= $40,000
Future value= $20,000
Decrease rate= 0.12
To calculate the number of years for the car to reach a value of $20,000; we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(20,000/40,000) / ln(1.12)
n= 6.11 years
Match the terms with the appropriate definition
1. cyber-safety
2. closing
a word added in front of your name
leg. Miss, Mrs., Ms. Me)
taking measures to keep personal
Information private in an online
environment
organization of information by date.
starting with the most recent experience
employment form used to collect
information about individuals applying
for a job
one or two words ending a
professional letter before your signature
3. job application
4. prefix
5. reverse chronological order
Answer:
see below
Explanation:
Match the terms with the appropriate definition
1. cyber-safety
taking measures to keep personal information private in an online
environment.
Cyber -safety is all about being secure and safe online. It is deploying strategies to avoid online-associated risks and their possible consequences.
2. Closing
one or two words ending a professional letter before your signature. Closing a letter signifies its end. The closing words show appreciation and respect for the recipient. Closing phrases are polite, respectful, and professional. They include
It has been a pleasure doing business with you
Thank you for your time and consideration
Please let me know if I can be of any more assistance
3. Job application
Organization of information by date. Starting with the most recent experience employment form used to collect information about individuals applying for a job.
A Job application is sent together with a resume to potential employers. It allows the applicant the chance to convince the employer that they are the best candidate for the job. Job applications indicate the position being applied and the contact details of the applicant.
4. Prefix
A word added in front of your name, e.g., Miss, Mrs., Ms. Me)
A prefix is a syllable or group of syllables that add more weight/meaning to a word when put before it. A prefix alters the meaning of the word before it. Other examples of prefixes include Dr, M.P., or Prof.
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is Group of answer choices a quota. a dumping duty. an antidumping duty. a tariff.
Answer:
a quota
Explanation:
The quota is the type of the restriction made in the trade where the physical limit is set on the quantity of the products or goods that could be imported in a country under a prescribed period of time. It benefits the producers of goods
Therefore as per the given situation, since the Japan government sets a limit for the rice amount that can be imported from the United states so this represents the quota
Therefore the first option is correct
Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?
Answer:
The amount of the $1 tax that is paid by sellers is $0.40.
Explanation:
The amount of tax paid by the sellers can be calculated using the following 2 steps:
Step 1: Calculation of the tax burden of the seller
This can be calculated using the following formula:
Tax burden of the seller = Elasticity of demand / (Elasticity of demand + Elasticity of supply) ............... (1)
Where;
Tax burden of the seller = ?
Elasticity of demand = 2
Elasticity of supply = 3
Substituting the values into equation (1), we have:
Tax burden of the seller = 2 / (2 + 3) = 2 / 5 = 0.40, or 40%
Step 2: Calculation of the amount of the $1 tax that is paid by sellers
This can be calculated using the following formula:
Tax paid by the sellers = Tax amount * Tax burden of the seller .................. (2)
Where;
Tax amount = $1
Tax burden of the seller = 40%
Substituting the values into equation (2), we have:
Tax paid by the sellers = $1 * 40% = $0.40
Therefore, the amount of the $1 tax that is paid by sellers is $0.40.
Additional note:
The answer above clearly demonstrates what obtains in economics that when supply is more elastic than demand, sellers will bear less of the tax burden, and when demand is more elastic than supply, sellers will bear more of the tax burden.
From the question, the fact that the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value) indicates that supply is more elastic than demand. This makes the sellers to bear only 40% of the tax burden while the buyers bear the remaining 60%.