The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
a. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000; Accounts Payable, $56,000; and Fund Balance, $239,000.
b. The budget was passed. Estimated revenues amounted to $1,280,000 and appropriations totaled $1,276,400. All expenditures are classified as General Government.
c. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021.
d. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.
e. Contracts were issued for contracted services in the amount of $104,000.
f. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400.
g. Other expenditures amounted to $986,000.
h. Accounts payable were paid in the amount of $1,130,000.
i. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
Answers
Answer:
Please see attached for the detailed solution.
Explanation:
a. Prepare Journal
b. Prepare statement
c. Prepare balance sheet
Please find attached solution to the above questions.
Related Questions
Presented below are four statements which you are to identify as true or false.
1. GAAP is the term used to indicate the whole body of FASB authoritative literature.
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements.
3. The primary governmental body that has influence over the FASB is the SEC.
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.
Answers
Answer:
1. GAAP is the term used to indicate the whole body of FASB authoritative literature. TRUE.
The Financial Accounting Standards Board are the authors of the GAAP and as such GAAP is used to indicate the whole body of their literature.
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. FALSE.
To claim compliance with GAAP, all standards and interpretations including Disclosure requirements should be followed.
3. The primary governmental body that has influence over the FASB is the SEC. TRUE.
The Securities and Exchange Commission (SEC) is the Government body that is meant to oversee the application of Accounting standards and as such, they have influence over the FASB.
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. FALSE.
Even though they have a Government mandate, the FASB must follow due process when establishing principles so that people might be able to contribute to or criticize the guidelines should they please.
Regency Inn leased a rental office in the lobby of its hotel to Americar, a car rental agency. Wagner rented a car from Americar, and while walking through the hotel parking lot to reach her rental car, she was robbed and raped. Wagner sued Regency Inn for damages, alleging that they maintained a public nuisance. A clause in the lease held that Americar was responsible to indemnify Regency Inn for any damages suffered due to the operation of the car rental agency. At the time of the assault on Wagner, Americar was a holdover tenant.
Can Regency Inn claim indemnification under these conditions? Wagner v. Regency Inn Corp., 463 N.W.2d 450 (1990).
Answers
Answer:
The court ruled against both Americar and Regency Inn, and then Regency Inn won its case against Americar. The nuisance case itself is pretty unpleasant, so it's not worth referring to it.
The fundamentals for the ruling against Americar were that they themselves had drafted the lease agreement and that the clause included in the lease agreement by which they agreed to indemnify Regency Inn was valid. The original lease term had already expired, but Americar continued to lease the offices on a monthly basis. Since they never left the place, the clauses in the original agreement were still valid even though the lease changed to a monthly basis. I.e. if you sign a lease contract and after the original contract is over, you continue to lease the same place, then the clauses from the original contract still apply.
The clause stated that Americar was liable for damages that took place on the leased premises or in their proximity, i.e. the area near their offices. The parking lot was considered to be in the proximity of Americar's offices.
A workplace is where people
Answers
Answer:A workplace is a place where people work
Explanation:I know this because when you got to any office or something there are people working there and people do not call it the office the call it there work place
Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
2017 2016
Current assets $ 890,400 $999,600
Total assets 1,950,000 1,878,000
Current liabilities 424,000 357,000
Total liabilities 573,300 552,132
Net income 166,830 337,600
Net cash provided by operating activities 300,000 452,600
Capital expenditures 271,000 246,500
Dividends paid on common stock 85,000 76,500
Weighted-average shares outstanding 201,000 211,000
a. Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Current ratio
b. Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Earnings per share $
c. Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%)
2017 2016
Debt to assets ratio
d. Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2017 2016
Free cash flow
Answers
Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
Suppose you receive at the end of each year for the next three years. a. If the interest rate is , what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?
Answers
Answer:
the question is missing the numbers, so I looked for a similar question:
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?
a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71
b) FV = $257.71 x (1 + 8%)³ = $324.64
c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64
it is exactly the same as the answer for (b)
When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more than doubling, a firm is operating:
Answers
Answer: (B) on the downward-sloping portion of its long-run average total cost curve.
Explanation:
The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.
This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.
In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.
Consider each of the transactions below. All of the expenditures were made in cash.
a. The Edison Company spent $16,000 during the year for experimental purposes in connection with the development of a new product.
b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $9,500.
c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $10,000 down and signed a noninterest-bearing note requiring the payment of $20,000 in nine months. The cash price for this equipment was $27,000.
d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $32,000.
e. The Mayer Company, plaintiff, paid $16,000 in legal fees in November, in connection with a successful infringement suit on its patent.
f. The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $11,200. The old equipment had an original cost of $9,400 and a book value of $4,200 at the time of the trade. Johnson also paid cash of $8,800 as part of the trade. The exchange has commercial substance.
Required:
Prepare journal entries to record each of the above transactions.
Answers
Answer: See attachment
Explanation:
The journals entry shows the transactions that Edison Company has undertaken. The transactions are shows both the debit and credit balances.
The attachments for the question have been attached for further analysis.
All of the following are threats to a sustainable, long-term competitive advantage EXCEPT ________. Group of answer choices
Answers
Answer:
The answer is "market stability".
Explanation:
Instability, emerging innovations as well as an evolving industry also will function and eradicate the advantages so, the corporation does and put its competitiveness as the advantage at risk.
"Market stability" is the only choice, which is not a hazard to a fixed edge. So, well as circumstances wouldn't change, its edge will appear to become the right response.
Statz Company had sales of $1,900,000 and related cost of goods sold of $1,100,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,300 for a cash refund. The returned merchandise originally cost Statz Company $3,200.
Required:
a. Journalize the adjusting entries on December 31 to record the expected customer returns.
b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.
Answers
Answer:
pasensya na di ko alam ang sagot
Major improvements in computer information technology in the 1990s fueled an increase in investment demand in the United States (a large open economy). Graphically illustrate the effect of an increase of U.S. investment using the Large Open Economy Model. Clearly label the axes and curves in each of your graphs in the model. Clearly indicate the direction of any shifts in the curves.
Answers
Answer and Explanation:
Please find attached
Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be
Answers
Answer:
$1,015.96
Explanation:
The Price of the Bond (PV) can be calculated as follows :
Fv = $1,000
Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20
n = 9 × 2 = 18
p/yr = 2
i = 7.79%
pv = ?
Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96
Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a loan of $375,000. Based on Squid Realty Co.'s financial statements, which had been prepared on a cash basis, the Ocean National Bank loan officer rejected loan as too risky. After receiving the rejecting notice, Daryl instructed his accountant to prepare the financial statement on an accrual basis. These statements included $65,000 in accounts receivable and $85,000 in accounts payable. Daryl then instructed his accountant to record an additional $30,000 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2015. The title to the property is to transfer on January 5, 2016, when an attorney formally records the transfer of the property to the buyer. Daryl then applied for a $375,000 loan from Free Spirit Bank, using the revised financial statements. On this application, Daryl indicated that he had not previously been rejected for credit.
Required:
Discuss the ethical and professional conduct of Daryl Kirby in applying for the loan from Free Spirit Bank.
Answers
Answer:
There are issues with Revenue recognition, Accrual basis of accounting and Cash basis of accounting.
Explanation:
The ethical issues are important to handle with care in business. The accountant has used accrual basis accounting technique in order to apply for a loan. The revised financial statements are prepared with accrual concept so that the company is successful in procuring loan. The revenue should be recognized when performance obligation is completed and the required services are rendered. The accrual concept states that the transaction should be recorded when it occurs regardless when the cash is actually received. Daryl has been involved in unethical practice as he has instructed his accountant to prepare revised financial statements to portray that the company's performance is good. It is an intention to deceive bank in order to procure loan.
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2019, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows:
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000
Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.
Required:
a. Journalize the adjusting entry for merchandise inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.
Answers
Answer:
a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:
March 31, 2017, inventory adjustment
Dr Cost of goods sold 2,000
Cr Merchandise inventory 2,000
b) revised income statement
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... $47,000
Gross Profit ........ $70,000
One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted. Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount. Rent expense for the year was $2,400, and he used up $1,700 of the supplies. Stasney determines that depreciation on his equipment was $5,000 for the year. At December 31, he owes his employee $1,200 accrued salary.
Answers
Answer:
net income = $33,900
Explanation:
The T-accounts are missing, so I looked for a similar question:
Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded.
Dr Accounts receivable 1,600
Cr Service revenue 1,600
During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount.
Dr Unearned revenue 900
Cr Service revenue 900
Rent expense for the year was $2,400, and he used up $1,700 of the supplies.
Dr Rent expense 2,400
Cr Prepaid rent 2,400
Dr Supplies expense 1,700
Cr Supplies 1,700
Stasney determines that depreciation on his equipment was $5,000 for the year.
Dr Depreciation expense 5,000
Cr Accumulated depreciation 5,000
At December 31, he owes his employee $1,200 accrued salary.
Dr Wages expense 1,200
Cr Wages payable 1,200
Total expense for the year = $17,000 (paid wages) + $1,200 (accrued wages) + $800 (utilities) + $2,400 (rent) + $1,700 (supplies) + $5,000 (depreciation) = $28,100
total revenues = $59,500 (previously recorded) + $1,600 (unrecorded service revenue) + $900 (accrued service revenue) = $62,000
net income = $62,000 - $28,100 = $33,900
Mirr, Inc. was incorporated on January 1, year 1, with proceeds from the issuance of $750,000 in stock and borrowed funds of $110,000. During the first year of operations, revenues from sales and consulting amounted to $82,000, and operating costs and expenses totaled $64,000. On December 15, Mirr declared a $3,000 cash dividend, payable to stockholders on January 15, year 2. No additional activities affected owners' equity in year 1. Mirr's liabilities increased to $120,000 by December 31, year 1. On Mirr's December 31, year 1 balance sheet, total assets should be reported at:_______
Answers
Answer:
$885,000
Explanation:
Calculation for the total assets should be reported
Using this formula
TOTAL ASSETS =Total of liabilities + Total stockholders' equity
Initial equity $750,000
Income $18,000
($82,000-$64,000)
Dividends ($3,000)
12/31 Total stockholders' equity $765,000
Add Liabilities of $120,000
Total ASSETS $885,000
Therefore On Mirr's December 31, year 1 balance sheet, total assets should be reported at $885,000
Dom has $90,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixed-income investments, labeled as investments A, B, C, and D.
Investments A and B are available at the beginning of each of the next five years (call them years 1–5). Each dollar invested in A at the beginning of a year returns $1.20 (a profit of $0.20) two years later, in time for immediate reinvestment. Each dollar invested in B at the beginning of a year returns $1.36 three years later.
Investments C and D will each be available just once in the future. Each dollar invested in C at the beginning of year 2 returns $1.66 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.12 at the end of year 5.
Your uncle is obligated to make a balloon payment on an existing loan in the amount of $24,000 at the end of year 3. He wants to make that payment out of the investment account.
1) Devise an investment plan for your uncle that maximizes the value of the investment account at the end of five years. How much money will be available for the annuity in five years?
2) Show the network diagram corresponding to the solution in (1). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information.
Answers
Answer:
First of all, you must invest enough money in B in order to pay your debt.
present value = future value / expected return
present value = $24,000 / $1.36 = $17,647.06
you have $90,000 - $17,647.06 = $72,352.94 to invest in A.
at the end of year 2, you will have:
future value = present value x expected return = $72,352.94 x $1.20 = $86,823.53
then you should invest that money ($86,823.53) in invested D and at the end of year 4 you will have:
future value = $86,823.53 x $1.66 = $144,127.06
finally, you should invest $144,127.06 in investment E and at the end of ear 5 you will have:
future value = $144,127.06 x $1.12 = $161,422.31
2) it is really hard to draw a diagram without drawing tools, but i will try
⇒ invest $17,647.06 in B ⇒ year 3, collect $24,000
from B and pay off debt
today
$90,000
⇒ invest $72,352.94 ⇒ year 2, invest ⇒ year 4, invest
in A $86,823.53 in D $144,127.06 in E
continues ... ⇒ year 5, collect $161,422.31 from E
Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities:
Net income $4,435
Purchase of equipment 901
Borrowings under line of credit (bank) 1,447
Proceeds from issuance of common stock 14
Cash received from customers 29,464
Payments to reduce notes payable (long-term) 49
Sale of investments 137
Proceeds from sale of equipment 6,894
Dividends paid 280
Interest paid 93
Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (Amounts to be deducted should be indicated with a minus sign.)
Answers
Answer:
Modern Movables Corporation
Statement of cash flows
Cash flows from investing activities:
Proceeds from sale of equipment $6,894
Purchase of equipment ($901)
Sale of investments $137
Net cash from investing activities $6,130
Cash flows from financing activities:
Proceeds from issuance of common stock $14
Borrowings under line of credit (bank) $1,447
Payments to reduce notes payable ($49 )
Dividends paid ($280 )
Net cash from financing activities $1,132
Deferred tax liability $ 355,000 $ 463,000 The income statement reported tax expense for Year 2 in the amount of $580,000. Required: 1. What was the amount of income taxes payable for Year 2
Answers
Answer: $472,000
Explanation:
Deferred Tax Liability arises as a result of the different accounting methods used by Companies and by the Government for taxation.
Deferred tax liabilities are taxes that are owed to the Government due to the company using the Accrual system but as the Government uses the Cash basis, they have not yet recognised this tax.
The Tax Payable in Year 2 is;
= Reported Tax Expense - increase in Deferred Tax liability
= 580,000 - (463,000 - 355,000)
= $472,000
Bramble Corp. sells MP3 players for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How many MP3 players must Bramble sell to earn net income of $300000?
Answers
Answer:
Break-even point in units= 14,000 units
Explanation:
Giving the following information:
Selling price= $60
Variable costs are $30 per unit
Fixed costs total $120,000.
Desired profit= $300,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (120,000 + 300,000) / 30
Break-even point in units= 14,000 units
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,500 of itemized deductions, and they had $3,550 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice is 18 years of age, the Jacksons may only claim the child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)
Comprehensive Problem 4-55 Parts-c through f
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Answers
Answer:
a. Taxable income = $80,000
b. Taxable income = $77,600
c. Taxable income = $80,600
Explanation:
Taxable income refers to the amount of income that is used to determine the amount of tax that will be paid to the government by an individual or firm in given year. The taxable income is arrived at after all the relevant addition and allowable deductions have been made.
The requirements are therefore answered as follows:
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
Note: See part a of the attached excel file see the effect on taxable income.
The itemized deductions total of $28,000 instead of $16,500 makes the taxable income to be $80,000.
In the attached excel file, the following calculations is used:
Qualified business income deduction = Qualified business income * Parentage of deduction allowed = $10,000 * 20% = $2,000
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
Note: See part b of the attached excel file for the calculations of the taxable income.
This makes the taxable income to be equal to $77,600.
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Note: See part c of the attached excel file for the calculations of the taxable income.
The loss of loss of $5,000 on the sale of some of their investment assets incurred by the Jacksons is capital loss.
For tax purposes, capital loss of can be deducted as a loss on tax return by tax payers with a maximum of $3,000 to be deducted per year.
Therefore, the Jacksons will deduct $3,000 as a capital loss from their tax return, and the effect of this is to reduce the taxable income by $3,000.
This makes the taxable income to be equal to $80,600.
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.
She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.
Would you do it? Why? or Why Not?
Answers
Answer:
No
Explanation:
Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company
Brett, the manager at Warson’s Diner, plans to promote Keisha, one of the waitresses, to the position of an assistant manager. However, the owner, being racially biased, prevents him from doing so. Later, when Brett wants to promote one of the delivery boys to waiter, the owner again vetoes his recommendation on the grounds that his customers would feel uncomfortable having a black man deliver their food. Brett, extremely frustrated, offers Keisha and the delivery boy their promotions as he finds them deserving. Subsequently, Brett gets fired. Which of the following holds true in this scenario?
a. Brett has a cause of action against Warson’s Diner for retaliatory discharge under Title VII of the Civil Rights Act of 1964.
b. Brett has a cause of action against Warson’s Diner based on the bona fide occupational qualification defense.
c. Brett is liable for racial discrimination because as a manager he failed to change the company’s policy regarding promotion of African-Americans.
d. Brett is liable because he failed to follow the instructions provided by his employer.
Answers
Answer:
a)Brett has a cause of action against Warson's Diner for retaliatory discharge under Title VII of the Civil Rights Act of 1964.
Explanation:
From the question, we are informed about Brett, the manager at Warson’s Diner, who plans to promote Keisha, one of the waitresses, to the position of an assistant manager. We are also told that the owner, being racially biased, prevents him from doing so and in the end , Brett gets fired
What holds true in this scenario described above is that Brett has a cause of action against Warson's Diner for retaliatory discharge under Title VII of the Civil Rights Act of 1964.
Title VII of the Civil Rights Act of 1964. Is a law, of Act of 1964 that oversee any form of discrimination against employee of an organization and shield them from been discriminated because of race they belong to, their sex , their National origin an so on . The law doesn't only forbid discrimination that is intentional, but all actions that speak discrimination wether intentional or not.
The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.
Answers
Answer:
Journal entries
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
Dr Cash 18,000
Dr Accounts receivable 63,000
Cr Service revenue 81,000
2. March 13 Collect on accounts receivable, $51,000.
Dr Cash 51,000
Cr Accounts receivable 51,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,600.
Dr Wages expense 32,600
Cr Cash 32,600
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
Dr Utilities payable 6,200
Cr Cash 6,200
6. November 24 Receive cash in advance from customers, $9,200.
Dr Cash 9,200
Cr Unearned revenue 9,2000
7. December 30 Pay $2,600 cash dividends to stockholders.
Dr Dividends 2,600
Cr Cash 2,600
Adjusting entries
Depreciation for the year on the machinery is $7,200.
Dr Depreciation expense 7,200
Cr Accumulated depreciation, equipment 7,200
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,500
Cr Supplies 2,500
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Dr Unearned revenue 6,600
Cr Service revenue 6,600
Accrued utilities at year-end amounted to $6,400.
Dr Utilities expense 6,400
Cr Utilities payable 6,400
1. Rosa Green estimates the cost of future projects for a large contracting firm. Rosa uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Rosa's company is almost certain to get these companies as clients. For these jobs, Rosa finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Rosa finds that they almost always end up costing more than she estimates.
a. True
b. False
2. Rosa is less likely to win the jobs where she underestimates the costs, causing her to experience the winner's curse.
a. False
b. True
Answers
Answer:
1) a. True
Rosa is almost always right when she knows that her company is a monopoly, i.e. has no competition, but is generally wrong when her company has to compete with other contractors. It is simple, a monopolist can decide which markup percentage to use, and can use a really high one, but when competition exists, markups are not so high and profits not so abundant. That is why she almost always gets it wrong when having to deal with other competitors.
2) a. False
The winner's curse usually happens when someone wins a bid over some contract or asset, but then they realize that the actual price of the contract or asset was lower than the bid. E.g. in an auction, two people are fighting over to see who buys an antique car which increases the price of the car way beyond the real market value. But it can also happen to a company that offers very low prices, and then after they won a contract, cannot perform properly because their actual costs are higher.
When a company makes an offer, they are certain about the price of the contract and they should know the value of the services or goods that they are offering. If Rosa underestimates her costs, and prepares her offer using unrealistically low costs, then she will probably win the bid but end up losing money.
Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced 's suppliers to lower the prices that will pay when it replaces its inventory. It is now December 31, , and the net realizable value of 's ending inventory is below what the company actually paid for the goods, which was . Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of . Read the requirementsLOADING.... Requirement a. What accounting action should take in this situation? should apply the ▼ average-cost method first in, first out method last in, first out method lower-of-cost-or-market rule to account for inventories. The net realizable value of ending inventory is ▼ equal to less than more than 's actual cost, so must write the inventory ▼ down up to net realizable value.
Answers
Answer:
the numbers are missing, so i looked for a similar question to fill in the blanks:
Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced Trade Mart's suppliers to lower the prices that Trade Mart will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Trade Mart's ending inventory is $75,000 below what Trade Mart actually paid for the goods, which was $200,000.
Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
a. What accounting action should take in this situation?
lower-of-cost-or-market rule to account for inventories.the adjustment entry should be:
Dr Cost of goods sold 75,000
Cr Inventory 75,000
b. The net realizable value of ending inventory is?
equal to actual cost, so must write down inventory to match net realizable valueEnding inventory = $200,000 - $75,000 = $125,000
Which components should Enterprise Free Cash Flows include? I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements
Answers
Answer:
I , III and IV
Explanation:
The free cash flow is the cash flow in which the cash is left after paying off the operating expenses and the capital structure
Free cash flow is
= EBIT × (1 - tax rate) + depreciation & Amortization - changes in net working capital - capital expenditure
Therefore, the correct option is I, III and IV and the same is to be considered
If the college strictly enforces the rent ceiling of $250 a month, the on-campus housing market is
Answers
Answer: B. inefficient; the rent ceiling has no effect on the number of rooms rented
Explanation:
If the college strictly enforces the rent ceiling of $250 a month, the on-campus housing market is inefficient because the rent ceiling has no effect on the number of rooms rented.
An efficient market will see equilibrium supply meting equilibrium demand and this is not the case in this market because the supply seems to stay the same regardless of the demand.
This market is inefficient because supply does not react to the rent paid and is always the same. This is why a rent ceiling of $250 had no effect on the market in terms of supply. Efficient markets should see both supply and demand reacting to price so that a mutually beneficial equilibrium can be reached.
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
During May, the department operated at 9,080 hours, and the factory overhead costs incurred were indirect factory wages, $42,268; power and light, $22,064; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.
Required:
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours.
Answers
Answer:
Tiger Equipment Inc.
Factory Overhead Cost Variance Report
1 Variable costs: Actual Flexible Variance
2 Indirect factory wages $42,268.00 $41,768 500.00 U
3 Power and light 22,064.00 21,792 272.00 U
4 Indirect materials 18,700.00 18,160 540.00 U
5 Total variable cost $83,032.00 $81,720 1,312.00 U
6 Fixed costs:
7 Supervisory salaries $19,800.00 $19,800 $0 None
8 Depreciation of plant and equipment 35,700.00 35,700 $0 None
9 Insurance and property taxes 18,450.00 18,450 $0 None
10 Total fixed cost 73,950.00 73,950 $0 None
11 Total factory overhead cost $156,982.00 $155,670 $1,312 U
Explanation:
Welding Department's
Factory Overhead Cost Budget
For the month of May:
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
b) Flexing the variable cost:
1 Variable costs: Flexible
2 Indirect factory wages $40,020/8,700 * 9,080 = $41,768
3 Power and light 20,880 /8,700 * 9,080 = $21,792
4 Indirect materials 17,400/8,700 * 9,080 = $18,160
5 Total variable cost $78,300/8,700 * 9,080 = $81,720
Suppose there is a policy debate over whether the United States should impose trade restrictions on imported ball bearings:________.
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on ball bearings, the domestic ball-bearing industry could mature and adjust and would eventually be able to compete in the world market.
Which of the following justifications is the lobbyist using to argue for the trade restriction on ball bearings?
A. Infant-industry argument
B. Saving-domestic-jobs argument
C. Using-protection-as-a-bargaining-chip argument
D. National-security argument
E. Unfair-competition argument
Answers
Answer:
A)Infant-industry argument
Explanation:
We are informed about a Supposed policy debate over whether the United States should impose trade restrictions on imported ball bearings. Whereby
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings.
In the case whereby, The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms, the justifications the lobbyist was using to argue for the trade restriction on ball bearings is Infant-industry argument.
Infant-industry argument can be regarded as an economic rationale that provides protection for new industries that are yet to reach a certain economic scale like the existing industries, this theory offer protection to this new/developing industry from some form pressure as well as their products that can emerge from compitition from other mature industries.
Question 6 of 10
Which economic tool would most likely be used as part of a contractionary
monetary policy?
A. Lowering interest on reserves
B. Reducing the discount rate
C. Raising the reserve requirement
D. Buying treasury securities
Answers
Answer:
C. Raising the reserve requirement
Explanation:
Contractionary monetary policy refers to the Fed's action of reducing money supply in the economy. Reducing the money supply slows down the economy, thereby countering expansion and inflationary pressures. Raising the reserve requirement is one tool that the Fed uses as a contractionary monetary policy.
Reserve requirements refer to the percentage of customer deposits that the Fed requires commercial banks to maintain at all times. An increase in reserve requirement decreases the money available for banks to lend out. Reduced lending means a decrease in the money supply, which results in a decline in the inflation rate.