The following events took place when Managers A, B, and C were preparing budgets for the upcoming period:
I. Manager A increased property tax expenditures by 2% when she was informed of a recent rate hike by local authorities.
II. Manager B reduced sales revenues by 4% when informed of recent aggressive actions by a new competitor.
III. Manager C, who supervises employees with widely varying skill levels, used the highest wage rate in the department when preparing the labor budget.
Assuming that the percentage amounts given are reasonable, which of the preceding cases is (are) an example of building slack in budgets?
a. Il only.
b. I only.
c. II and III.
d. Ill only
e. I and II.

Answers

Answer 1

Answer:

Assuming that the percentage amounts given are reasonable, an example of building slack in budgets is:

d. Ill only

Explanation:

By using the highest wage rate in the department, Manager C deliberately overestimated her departmental expenses.  However, her action is dictated by the need to ensure that there are no budget shortages for wages.  By this slack, the actual performance of the department will be better than the budgeted performance because the department will likely spend less than its allotted costs.

Answer 2

The cases that represent an example of the building slacks in budgets should be option III.

Usage of highest wage rate:

Here we use the high wage rate with respect to the department. Also, the manager c should be overestimated the department expenses. The action should be dictated via the need for assurance that there should no shortages with respect to the wages. Also, the actual performance should be more than the budgeted performance since the department should lower than it

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Related Questions

Carillo Industries collected $108,000 from customers in 2017. Of the amount collected, $25,000 was for services performed in 2016. In addition, Carillo performed services worth $36,000 in 2017, which will not be collected until 2018.
Carillo Industries also paid $72,000 for expenses in 2017. Of the amount paid, $30,000 was for expenses incurred on account in 2016. In addition, Carillo incurred $42,000 of expenses in 2017, which will not be paid until 2018.
Instructions:
(a) Compute 2017 cash-basis net income.
(b) Compute 2017 accrual-basis net income.

Answers

Answer and Explanation:

The computation is shown below;

But before reaching to the final answers, first do the following calculations

Cash collected $108000

Add Services performed in 2017(not collected) $36000

less Services performed in 2016(collected in 2017) $25000

Revenue for 2017 $119,000

Cash paid in 2017 $72,000

Add Expense incurred not yet paid for 2017 $42000

Less Expense paid for 2016 -$30000

Expense for 2016 $84000

Now

a. Cash basis  

Revenue $108000

Less Expenses -$72,000

Net income $36000

b. Accrual basis  

Revenue for 2017 $119,000

Less Expenses for 2017 $84,000

Net income $35,000

Rowan Co. purchases 200 common shares (40%) of JBI Corp. as a long-term investment for $600,000 cash on July 1. JBI Corp. paid $12,500 in total cash dividends on November 1 and reported net income of $250,000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.

Answers

Answer:

1. Jul-01

Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

2. Nov-01

Dr Cash $ 5,000

Cr Investment in JBI Corp $ 5,000

3. Dec-31

Dr Investment in JBI Corp $ 100,000

Cr Investment revenue $ 100,000

Explanation:

1. Preparation of Rowan's entries to record the purchase of JBI shares

Jul-01

Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

[To record investment in common shares of JBI Corporation]

2. Preparation of Rowan's entries to record the receipt of its share of JBI dividends

Nov-01

Dr Cash [12,500*40%] $ 5,000

Cr Investment in JBI Corp $ 5,000

[To record receipt of dividends]

3. Preparation of Rowan's entries to record the December 31 year-end adjustment for its share of JBI net income

Dec-31

Dr Investment in JBI Corp [$250,000*40%] $ 100,000

Cr Investment revenue $ 100,000

[To record share of net income for the year]

which plan offers a tax-free education?

a ______ Plan is a plan that offers a tax-free education, even upon withdrawal. however, the use of money is limited and can only be used for education expenses

Answers

Answer: 529 plan is an investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses.

A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%

Answers

Answer:

Leasing or Buying a Truck:

The equivalent annual cost of buying and maintaining the truck (if the discount rate is 12%) is:

= $50,328

Explanation:

a) Data and Calculations:

Interest rate = 6% per year

                            Lease             Purchase

Initial Cost                                   $99,000

Annual Cost      $49,000           $29,000

Salvage Value                             $39,000

Useful Life (years)        5                        5

Annuity factor = 3.605 for 5 years at 12%.

Present value factor = 0.567 for 5 years at 12%.

                                      Lease          Purchase

Present value of  costs:

Initial cost                                          $99,000 (1 * $99,000)

Annuity costs             $176,645        104,545 (3.605 * $29,000)    

PV of salvage value                            (22,113) (0.567 * $39,000)

NPV cost                    $176,645       $181,432

The equivalent annual cost:

= Total NPV cost/PV annuity factor

                             ($176,645/3.605)   ($181,432/3.605)

Equivalent annual cost $49,000      $50,328

Difference:

Purchase =  $50,328

Lease =       $49,000

Difference =  $1,328

Suppose an industry has 100 firms, each with a supply curve P = 50 + 10Q . Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q . a. What is the industry supply curve? b. What is the equilibrium price and quantity for this market? c. How many units of output will be produced by a firm operating in this market with a marginal cost function, MC = 130Q

Answers

Answer: See explanation

Explanation:

The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:

P = 50 + 0.1Q

Check: since Q = 100

P = 50 + 10/100Q

P = 50 + 0.1Q

To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:

Market demand = P = 200 - 0.9Q

Market Supply = P = 50 + 0.1Q

Therefore,

200 - 0.9Q = 50 + 0.1Q

200 - 50 = 0.1Q + 0.9Q

150 = Q

Equilibrium quantity = 150 units

Since P = 50 + 0.1Q

P = 50 + 0.1(150)

P = 50 + 15

P = 65

Equilibrium price is 65.

The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.

MECCS Inc. stock paid its annual dividends of $4.90 per share yesterday. The dividend is expected to decrease at a constant rate of 2.50 percent per year indefinitely. Investors require a rate of return of 8.60 percent on the stock. How much should one share of the stock be priced today

Answers

Answer: $43

Explanation:

The current stock price will be calculated as:

= Do(1 - g) / (Ke + g)

where,

Do = $ 4.90

g = 2.50%

Ke = 8.60%

Po = [4.90 - (1 - 0.025)] / [0.086 + 0.025]

Po = 4.7775 / 0.111

Po = $43

The price of one share of the stock today will be $43

You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. (Note: you make 361 total monthly deposits into your retirement account.) You will begin to make withdrawals from the account the first month after you retire. If you plan to live an additional 25 years and leave $900,000 to your heirs, you will be able to withdraw $_____ each month. (Note: you make 300 total monthly withdrawals from your retirement account.)

Answers

Answer:

Monthly withdraw= $4,752.01

Explanation:

Giving the following information:

Monthly deposit= $1,000

Number of perios= 361 months

Interest rate= 0.08/12= 0.0067

First, we need to calculate the Future Value at the moment of retirement:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {1,000*[(1.0067^361) - 1]} / 0.0067

FV= $1,513,584.37

Now, we can calculate the monthly withdraw:

PV= 1,513,584.37 - 900,000= $613,584.27

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (613,584.37*0.0067) / [1 - (1.0067^-300)]

Monthly withdraw= $4,752.01

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Job 102 Job 103 Job 104
Direct materials $ 37,000 $ 48,000 $ 57,000
Direct labor 20,000 28,700 43,000
Overhead 8,200 11,767 17,630
Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,500; and overhead, $1,505. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

Answers

Question Completion:

1. What is the cost of the raw materials requisitioned in June for each of the three jobs?

2. How much direct labor cost is incurred during June for each of the three jobs?

3. What predetermined overhead rate is used during June?

4. How much total cost is transferred to finished goods during June?

Answer:

Racing Wheels, Inc.

                                     Job 102        Job 103        Job 104  

1. Direct materials       $ 37,000       $ 48,000     $ 57,000

2. Direct labor                20,000          28,700        43,000

3. The predetermined overhead rate = $0.41 per direct labor cost.

4. The total cost transferred to Finished Goods Inventory in June

= $167,672

Explanation:

a) Data and Calculations:

The total costs accumulated on three custom jobs.

                               Job 102     Job 103      Job 104        Total

Beginning WIP:                                                               $14,005

Direct materials       $9,000

Direct labor                3,500

Overhead                   1,505                                          

Direct materials   $ 37,000    $ 48,000    $ 57,000   $ 142,000

Direct labor             20,000       28,700       43,000         91,700

Overhead                  8,200         11,767        17,630         37,597

Total costs           $ 79,205    $ 88,467   $ 117,630    $285,302

Predetermined overhead rate = total overhead/total direct labor

= $37,597/$91,700

= $0.41

Finished goods in June:

Job 102     $ 79,205    

Job 103     $ 88,467

Total cost $167,672

Reward systems (Connect, Perform)
Reward system Base pay Symbolic value Indirect Flexible reward
Surface value Incentive Compensation compensation system
system packages Perquisites Participative pay system
Use each of these individual reward system terms to best complete the following sentences.
The purpose of the_____in most organizations is to attract, retain, and motivate qualified employees.
Even though Evelyn got a generous 10% pay raise, because Lily received a 12% pay raise Evelyn was unhappy. This is because of the______of the reward.
You are satisfied with your overall compensation package even though your base pay is a little low because your_____, especially your retirement plan and health insurance plan, are very generous.
When deciding which job offer to take, rather than considering only the base pay it is important to compare the two______. Because the incentives, benefits, perquisites, and awards of the job with the lower base pay may make the total value of the rewards greater than that offered by the higher paying company.

Answers

Answer:

a. reward system

b. Surface value

c. Perquisites

d. Compensation packages

Explanation:

Reward system encompasses the whole compensation packages for workers.

Base pay is the main determinant for other compensations.

Symbolic value refers to the representational value of a reward as opposed to the worth.

Compensation packages for various entities vary depending on the organization.

Indirect compensation is not directly linked to a job.

Perquisites refer to the benefits from employment.

Flexible reward system is not a fixed system, but one that flexes with other factors.

Participative pay system encourages workers' contribution in determining pay.

Surface value is the worth of a compensation to the recipient.

Incentive system refers to the employment structure that motivates employees to act in the best interest of the organization.

A.

B.

C.

D.

Jwjw wkwj lqmq wlwnw wowi2

_____are short-term, specific targets which are attainable, measurable, and controllable.
A. Objective.
B. Policies.
C. Goal.
D. Standard operating procedures.

Answers

Answer:

A. Objective.

Explanation:

The objectives is the thing or the target that should be achieved it can be short term also there is some particular targets that could be achieved, measured and controlled

So according to the given situation, the correct option is a

Hence, the same would be considered

Testbank Multiple Choice Question 110 On January 1, 2021, Marigold Corp. redeemed its 15-year bonds of $6920000 par value for 101. They were originally issued on January 1, 2009 at 91 with a maturity date of January 1, 2024. Marigold amortizes discounts and premiums using the straight-line method. What amount of loss should Marigold recognize on the redemption of these bonds (ignore taxes)

Answers

Answer:

$193,760

Explanation:

Calculation to determine the amount of loss should Marigold recognize on the redemption of these bonds

Bonds edemption=[($6,920,000*1.01)-$6,920,000]+[(100%-91%*$6,920,000)-((100%-91%*$6,920,000)/15 years*12)]

Bonds redemption=[($6,989,200-$6,920,000]+[(9%*$6,920,000)-((9%*$6,920,000)/15 years*12)]

Bonds redemption=$69,200+[($622,800-($622,800/15 years*12)]

Bonds redemption=$69,200+[($622,800-$498,240)]

Bonds redemption=$69,200+$124,560

Bonds redemption=$193,760

Therefore the amount of loss should Marigold recognize on the redemption of these bonds is $193,760

Wildhorse Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, installation services, and training as part of Wildhorse’s security services. Thus, each of these performance obligations are separate with individual standalone selling prices. Laplante Inc. purchased cameras, installation, and training at a total price of $88,100. Estimated standalone selling prices of the equipment, installation, and training are $81,000, $6,300, and $2,700, respectively. How should the transaction price be allocated to the equipment, installation, and training?

Answers

WeAnswer:

Equipment $79,290

Installation $6,167

Training $2,643

Explanation:

Calculation to determine How should the transaction price be allocated to the equipment, installation, and training

First step is to calculate the total estimated fair value

Total estimated fair value = $81,000+$6,300+$2,700

Total estimated fair value =$90,000

Now let calculate How should the transaction price be allocated

Equipment= ($81,000 ÷ $90,000)*$88,100

Equipment= 90%*$88,100

Equipment=$79,290

Installation=($6,300 ÷ $90,000)* $88,100

Installation= 7%*$88,100

Installation=$6,167

Training=($2,700 ÷ $90,000)*$88,100

Training= 3%*$88,100

Training=$2,643

TOTAL

Equipment=$81,000

Installation=$6,300

Training=$2,700

Total $90,000

Equipment=$79,290

Installation=$6,167

Training=$2,643

Total $88,100

Equipment=90%

Installation=7%

Training=3%

Total 100%

Therefore the transaction price that should be allocated to the equipment, installation, and training are :

Equipment $79,290

Installation $6,167

Training $2,643

consumer behaviour of poor class of pakistan

Answers

Answer:

The poor class consumer usually buys products of basic necessity in frequency, but in limited and small quantities. It is not common for excessive purchases to be made and for products that are not essential for survival. In addition, this consumer can buy lower quality products that have lower prices, or products on sale or with low price offers. The frequency of shopping is also low and they tend to buy in more popular places for the low-income population.

Explanation:

Consumer behavior is the term used to determine the quantity, the reason, the places and the type of product that the consumer buys. This behavior can be analyzed psychologically, socially, economically and anthropologically.

Regarding poor consumption, it is common for the amount of money to be very limited, causing this consumer to buy only the essential products, even so the quantities are low and the quality is also low because that is what fits in the budget.

Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he should behave in this situation. What type of influence does this reference group exhibit? procedural transient substantive informational legal

Answers

Answer:

informational

Explanation:

Informational influence is defined as a new concept or information that occurs within a group and leads to change in group member attitudes, behaviour, and belief.

In the given scenario parliamentary procedure was used in a business meeting and Jamarcus was not familiar with this.

He looked to other group members to learn how he should behave in this situation.

In this case the group is providing information of proper way of behaving during the meeting.

3. _________ is a type of form used to obtain important feedback from customers by

asking them to answer checklist.

A. Survey form

B. Bio-data form

C. Interview form

D. Health check form

4. This social benefit from patronizing products and services project how customers

wants to be ________ by others.

A. admired

B. accepted

C. perceived

D. acknowledged

5. Marketing companies exert effort to consider positive feelings provided to customers

in order to create __________ connection with them.

A. Social

B. Emotional

C. Functional

D. Economical​

Answers

Answer:

3. Survey form

4. accepted

5. emotional

Explanation:

(Hybrid costing) Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different types of necklaces did not cost the same amount of money to make, even though they took the same amount of time and effort to assemble. Koontz developed the following standard costs for each type of necklace:
Glass Metal Natural
Beads $24 $15 $ 7
Direct labor (1.5 hours) 15 15 15
Overhead (based on 1.5 hours) 8 8 8
Total $47 $38 $30
Koontz began 2010 with no beginning WIP Inventory after she experienced an extreme holiday rush. During January, 130 necklaces were started: 70 were glass, 25 were metal, and 35 were natural. At the end of January, 25 necklaces were not yet complete: 5 glass,13 metal, and 7 natural. The stage of completion for each cost component for the 25 unfinished necklaces was as follows:
Material 100% complete
Conversion 60% complete
a. Calculate the cost of necklaces completed during January.
b. Calculate the cost of necklaces in ending WIP Inventory.

Answers

Answer:

Pat Koontz

a. The cost of necklaces completed during January =  $96.16

b. The cost of necklaces in ending WIP inventory = $24.40

Explanation:

a) Data and Calculations:

                                                 Glass    Metal    Natural   Total

Beads                                        $24        $15        $ 7       $46

Direct labor (1.5 hours)                15          15          15         45

Overhead (based on 1.5 hours)   8            8           8         24

Total cost of production           $47       $38       $30      $115

                               Glass    Metal    Natural

Units started            70         25         35             130

Ending WIP                5          13           7               25

Units completed      65         12         28             105

Equivalent units:

                                 Glass             Metal             Natural

                            Mat. Conv      Mat. Conv      Mat. Conv

Units completed  65     65         12       12           28    28

Ending WIP            5        3         13        8              7      4

Equivalent units  70      68        25      20           35    32

Cost per equivalent unit:

                                            Glass                Metal               Natural

                                        Mat.   Conv      Mat.  Conv       Mat.  Conv  Total

Cost of production         $24    $23        $15     $23      $7      $23    $115

Equivalent units                70      68          25      20       35        32

Cost per equivalent     $0.42  $0.34     $0.60  $1.15  $0.20   $0.72

                                     Glass                Metal               Natural        Total

                                   Mat.   Conv      Mat.  Conv       Mat.  Conv

Cost per equivalent $0.42  $0.34   $0.60  $1.15    $0.20   $0.72

Equivalent units of

 Units completed      65     65         12       12           28    28

Units completed    $27.3  $22.1     $7.2   $13.8      $5.6  $20.16  $96.16

                                       Glass                Metal               Natural        Total

                                  Mat.   Conv      Mat.  Conv       Mat.  Conv

Cost per equivalent $0.42  $0.34   $0.60  $1.15    $0.20   $0.72

Ending WIP (equiva.)  5        3             13        8            7      4

Total cost                 $2.1    $1.02      $7.8    $9.2     $1.4    $2.88   $24.40

Vaughn Manufacturing records purchases at net amounts. On May 5 Vaughn purchased merchandise on account, $79000, terms 2/10, n/30. Vaughn returned $6700 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. The amount to be recorded as a purchase return is

Answers

Answer:

Vaughn Manufacturing

Purchases at net value ($79000-2%)    $77,420.00

Less: Purchase return ($6700-2%)        $6,566.00

Net payable                                             $70,854.00

The amount to be recorded as a purchase return is $6,566. When net method is used all purchase is recorded assuming discount will be availed. Similarly when goods are returned that amount is also adjusted with discount.

Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 7%, and its par value is $100. Round your answers to the nearest cent. What is the stock's value

Answers

Answer:

$114.29

Explanation:

Calculation to determine the stock's value

Using this formula

Stock's value=Annual Dividend /Yield or Rate of return

Let plug in the formula

Stock's value=$8/7%

Stock's value=$114.29

Therefore the stock's valuewill be $114.29

Decide whether each of the following is frictional, structural, or cyclical unemployment:
a. The economy gets worse, so General Motors shuts down a factory for four months, laying off workers. cyclical structural frictional
b. General Motors lays off 5,000 workers and replaces them with robots. The workers start looking for jobs outside the auto industry. cyclical structural frictional
c. About 10 workers per month at a General Motors plant quit their jobs because they want to live in another town. They start searching for work in the new town.

Answers

Answer and Explanation:

The classification is as follows:

a. Cyclical unemployment

Since the economy got worse and the factory would be shut down for 4 months so this represent that the economy would go into recession  

b. Structural unemployment

As General motors would lays off 5,000 workes and wants to subsitute with robots so here there is a mismatch of the skills & characteristics according to the job requirements

c. Frictional unemployment

Frictional unemployment is classify as a short-term unemployment that occurred for matching the workers with the available jobs

At December 31, 2021, Swifty Company had a credit balance of $15,400 in Allowance for Doubtful Accounts. During 2022, Swifty wrote off accounts totaling $12,800. One of those accounts of $3,000 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $30,600. Prepare journal entries to record the 2022 transactions of Swifty Company.

Answers

Answer:

Allowance for doubtful accounts Dr $12,800

Accounts receivables Cr $12,800

(To record amount written off)

Accounts receivables Dr $3,000

Allowance for doubtful accounts Cr $3,000

(To reverse writeoff)

Cash Dr $3,000

Accounts receivables Cr $3,000

(To record collection of writeoff)

Bad debt expenses Dr $25,000

Allowance for doubtful accounts Cr $25,000

Workings:

Balance before adjustment in Allowance             $5,600

for doubtful accounts (15,400-12,800+3,000)

Less: Required amount                                           $30,000

Additional provision required                               $25,000

Anchor Company purchased a manufacturing machine with a list price of $91,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3,400. Anchor paid $4,800 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $6,200 for the first year of operations. What is the cost of the machine

Answers

Answer:

$103,580

Explanation:

The Cost of Machine according to IAS 16 include Purchase costs less trade discounts and rebates plus any direct costs incurred to put the asset in the location and condition intended for use by management.

Calculation of the Cost of Machine

Purchase Price                                      $91,000

Cash discount $91,000 x 2%                ($1,820)

Transport Cost                                       $3,400

Installation  and testing costs               $4,800

Insurance costs                                      $6,200

Total Cost                                            $103,580

Therefore,

the cost of the machine is  $103,580

The underlying assumption of the dividend discount model is that a stock is worth: A. the present value of the future dividends the company pays. B. an amount computed as the next annual dividend divided by the required rate of return. C. the same amount as any other stock that pays the same current dividend and has the same required rate of return.

Answers

Answer:

A. the present value of the future dividends the company pays.

Explanation:

The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.

The underlying assumption of the dividend discount model is that a stock is worth the present value of the future dividends the company pays.

Generally, all financial assets or securities can be securitized i.e turned into a tradable item that can be used to generate money for a potential investor or the owner of the financial asset.

For example, a mortgage backed security can be used as securitization.

Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2019 $ 190,000 $ 175,000 2020 380,000 350,000 Required: Ignoring income tax considerations, prepare the entry to report this accounting change.

Answers

Answer:

the entry to report this accounting change is in the attachment.

Explanation:

By moving from LIFO to FIFO, there's is going to be an increase in the value of inventory from of 30,000. That is $380,000 - $350,000.

The answer to this question is to make a journal entry. I have done this in the attachment.

In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 6,000,000 shares of common stock carrying a $1 par value, and 2,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2021, 4,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 2,000,000 shares of preferred stock are issued at $20 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021. (Assume net income for the first quarter 2021 was $1,600,000.)

Answers

Answer:

1. Jan-02

Dr Cash $ 40,000,000.00

Cr Common stock $ 4,000,000.00

Cr Paid-in capital – excess of par, common $ 36,000,000.00

Jan 02

Dr Cash $ 40,000,000.00

Cr Preferred stock $ 10,000,000.00

Cr Paid-in capital – excess of par, preferred $ 30,000,000.00

2. $81,600,000.00

Explanation:

1. Preparation of the journal entries to record these transactions

Jan-02

Dr Cash (4,000,000 x $10) $ 40,000,000.00

Cr Common stock ($1 par x 4,000,000 shares) $ 4,000,000.00

Cr Paid-in capital – excess of par, common $ 36,000,000.00

Jan 02 Cash (amount received) (2,000,000 x $20) $ 40,000,000.00

Preferred stock ($5 par x 2,000,000 shares) $ 10,000,000.00

Paid-in capital – excess of par, preferred (difference) $ 30,000,000.00

2. Preparation of the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2021.

Nicklaus Corporation

Balance Sheet-Shareholders' Equity Section

September 30, 2018

Shareholders' equity

Preferred stock, $5 par, authorized 2,000,000 shares, issued and outstanding 2,000,000 shares$ 10,000,000

Common stock, $1 par, authorized 6,000,000 shares, issued and outstanding 4,000,000 shares $ 4,000,000.00

Paid-in capital – excess of par $ 66,000,000.00

Retained earnings $ 1,600,000.00

Total shareholders' equity$ 81,600,000.00

Match each situation with the conflict escalation stage that best describes it. Answer Key Terms Descriptions Hardening A. You and your opponent calmly discuss the objective issues involved in the conflict. Fragmentation of the enemy B. Your opponent tells your coworkers that you lied to her about how much money was left in the budget that you both have been discussing how to manage. Images and coalitions C. Rather than discussing the issues the goal becomes winning. You try to mobilize your colleagues to support your position. Loss of face D. Communication with your opponent is ended as winning is no longer possible. The goal becomes outlasting your opponent and destroying her power base.

Answers

Answer:

A. Hardening

B. Loss of face

C. Images and coalitions

D. Fragmentation of the enemy

Explanation:

A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.

Some examples of the conflict escalation stage includes;

A. Hardening: you and your opponent calmly discuss the objective issues involved in the conflict.

B. Loss of face: your opponent tells your coworkers that you lied to her about how much money was left in the budget that you both have been discussing how to manage. It typically occurs when an individual is accused of lying and would result in attacking the opponent's public personality.

C. Images and coalitions: rather than discussing the issues the goal becomes winning. You try to mobilize your colleagues to support your position.

D. Fragmentation of the enemy: communication with your opponent is ended as winning is no longer possible. The goal becomes outlasting your opponent and destroying her power base.

On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $400,000, beginning Oct 1, 2022. Similar transactions have carried an 11% interest rate. The right-of-use asset would be recorded at: _________

Answers

Answer:

$1,478,360

Explanation:

Calculation for what The right-of-use asset would be recorded at:

PV ordinary annuity of $1: n = 5; i = 11%

PV ordinary annuity = $400,000 × 3.69590

PV ordinary annuity = $1,478,360

Therefore right-of-use asset would be recorded at:$1,478,360

How does a realistic market potential estimate affect small business success?

Answers

Answer:

Estimating market size is a crucial first step in the development of any startup or small business. And it really doesn't matter what industry you're in — or want to be in — getting an accurate picture of your market size reveals insights that can drive both the present and future success of your business.

The Sheridan Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $36 a night. Operating costs are as follows:

Salaries $4,000 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $832 per month
Maid service $6 per room
Other costs $12 per room

Required:
a. Determine the inn's break-even point in number of rented rooms per month.
b. Determine the inn's break-even point in dollars.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the unitary variable cost and the fixed costs:

Unitary variable cost= 6 + 12= $18

Total fixed costs= 4,000 + 1,500 + 1,300 + 832

Total fixed costs= $7,632

Now, to calculate the break-even point both in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 7,632 / (36 - 18)

Break-even point in units= 424 per month

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 7,632 / (18/36)

Break-even point (dollars)= $15,264

Swifty Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $35500. During 2020, it wrote off $23000 of accounts and collected $8000 on accounts previously written off. The balance in Accounts Receivable was $780000 at 1/1 and $960000 at 12/31. At 12/31/20, Swifty estimates that 5% of accounts receivable will prove to be uncollectible. What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20

Answers

Answer:

$48,000

Explanation:

What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20?

Allowance for Doubtful Accounts 12/31/20 = Accounts receivable at 12/31 * Uncollectible percentage of Accounts receivable

Allowance for Doubtful Accounts 12/31/20 = $960,000 * 5%

Allowance for Doubtful Accounts 12/31/20 = $48,000

Consider the following situations. What is the effect on consumption for each of the four scenarios? Either move the consumption function when appropriate or move the point along the consumption function to illustrate the impact of each scenario. You should move only the point or only the line in each part of the question. a. The federal government raises taxes. Consumption Income b. Housing prices increase. Consumption Income c. Consumer incomes rise. Consumption Income d. Consumer expectations of their future income plummet. Consumption Income

Answers

Answer:

Hello the graphs related to your question is missing attached below are the graphs

answer: attached below

Explanation:

a) Federal government raises taxes : this will reduce the disposable income of employees hence there will be a shift downwards

b) Housing prices increase; this will lead to a shift upwards

c) Consumer income increases will cause a movement upwards along the curve

d) consumer expectations of their future income plummet will cause a downward shift in the curve

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