Answer:
Abby and Jason
The monthly mortgage payment that Abby and Jason will make is:
= $766.58.
Explanation:
a) Data and Calculations:
Construction loan = $100,000
Period of construction = 14 months
Simple interest rate = 0.5% per month
Principal amount after 14 months = $ 107,000 ($100,000 * 0.5% * 14)
Mortgage loan = $107,000
Mortgage period = 20 years
Interest rate = 6% compounded monthly
Terms of payment = monthly
From an online financial calculator, the monthly payment for the mortgage will be:
Monthly Pay = $766.58
Monthly Total
Mortgage Payment $766.58 $183,979.50
Total of 240 Mortgage Payments = $183,979.50
Total Interest = $76,979.50
Mortgage Payoff Date Mar. 2041 if the mortgage commenced on March 1, 2021.
CL
ratio
Cygnus has a
dividend cover ratio
of 4.0 times and expects
zero growth in dividends. The company
has one million $1 ordinary shares
în issue and the market capitalization of
the
company
is $ 50 million
After tax profits for next year is expected to be $20 million.What is the cost of equity capital?
Answer:
The cost of equity is "10.00%".
Explanation:
The given values are:
After tax profits,
= $20 million
Number of shares,
= 1 million
Dividend cover ration,
= 4.0
Market capitalization,
= $50 million
Now,
The earning per share (EPS) will be:
= [tex]\frac{After \ tax \ profits}{Number \ of \ shares}[/tex]
On substituting the values, we get
= [tex]\frac{20}{1}[/tex]
= [tex]20[/tex] ($)
The dividend cover ratio = [tex]\frac{EPS}{Dividend \ per \ share}[/tex]
On substituting the given values, we get
⇒ [tex]4.0=\frac{20}{Dividend \ per \ share}[/tex]
⇒ [tex]Dividend \ per \ share=\frac{20}{4}[/tex]
⇒ [tex]=5[/tex] ($)
Market per share price will be:
= [tex]\frac{Market \ capitalization}{Number \ of \ shares}[/tex]
= [tex]\frac{50}{1}[/tex]
= [tex]50[/tex] ($) per share
So,
The cost of equity capital will be:
= [tex][\frac{Expected \ dividend}{Market \ price} ]+Growth \ rate[/tex]
On putting the values in the above formula, we get
= [tex][\frac{5}{50} ]+0.00[/tex]
= [tex]0.1+0.00[/tex]
= [tex]0.1[/tex] i.e., [tex]10.00[/tex]%
Consider an economy described by the following equations: Y = C + I + G, G = 2,000 T = 2,000 C = 250 + 0.75YD I = 750 a) Is there a government budget deficit, budget surplus, or balanced budget? A. budget deficit B. budget surplus C. balanced budget b) Calculate the equilibrium value of Y. Y = $ nothing c) What is the value of autonomous consumption (c0)? autonomous consumption = $ nothing d) What is the value of MPC? What is the value of MPS? MPC = nothing MPS = nothing e) Calculate the value of APC and the value of APS. Round your answers at 2 decimal places. APC = nothing APS = nothing f) Calculate private saving, public saving and national saving. Private Saving = $ nothing Public Saving = $ nothing National Saving = $ nothing
Answer: See explanation
Explanation:
a. This is a balanced budget. A balanced budget is when the government expenditure and the revenue generated are thesame. In this case, government expenditure (G) and revenue gotten from taxes (T) are both 2000.
b. The equilibrium value of Y will be:
Y = C + I + G
Y = 250 + 0.75(Y - 2000) + 750 + 2000
Y = 250 + 0.75Y - 1500 + 750 + 2000
Y - 0.75Y = 1500
0.25Y = 1500
Y = 1500/0.25
Y = 6,000
c. The value of the autonomous consumption (c0) will be:
c0 = 250
d. MPC = 0.75 ,
Note that MPS = 1 - MPC
= 1 - 0.75
= 0.25
e APC = C/YD
= 3250/4000
= 0.8125
APS = S/YD
= 750/4000
= 0.1875
f. Private Saving = 750
Public saving = 0
Then, the National Saving will be:
= Public savings - private savings
= 750 - 0
= 750
Vet Meds is the pharmaceutical branch of a large medical research center for animals.Vet Meds often conducts surveys at veterinary hospitals and private vet clinics to identify potential areas for improvisation and growth.The company noted that many domestic pet owners reported finding it extremely difficult to give their dogs oral medication owing to the bitter taste of the medicines,which remained even when the medicines were mixed with food.In response to this finding,Vet Meds released oral medicines for dogs which came in various meat flavors.Which of the following segmentation approaches is used by Vet Meds to satisfy consumer needs?
A) Benefit segmentation
B) Psychographic segmentation
C) A priori segmentation
D) Social segmentation
Answer: Benefit segmentation
Explanation:
The segmentation approaches that is used by Vet Meds to satisfy consumer needs is referred to as the benefit segmentation.
Benefit segmentation is when the market is being divided based on the benefit, value or the advantage that consumers believe that they will get when they buy a particular product. This is the method used by Vet Meds.
To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that they also sell waterproof hunting boots. Unfortunately, Teddy Bower has no expertise in manufacturing those kinds of boots. Therefore, Teddy Bower contacted several Taiwanese suppliers to request quotes and $38 per pair of boots was the best quote. Due to competition, Teddy Bower knows that it cannot sell these boots for more than $54. However, all remaining boots can be sold off at a 50% discount at the end of the season. What is the underage cost Cu
Answer:
Undergo cost is $14
Explanation:
Undergo cost of Teddy Bower is $16 ( $54 - $38)
Undergo cost the total cost for a company which is not to be recovered from the sales. The undergo cost for Teddy Bower is $14 since the company has asked for quote from different suppliers and they quoted the maximum of $38 per pair of boots. The company has best and maximum quote of $54 above which the company predicts it can not sell the pair of boots.
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 71,000 Accounts receivable increase $ 8,000 Expenses Inventory decrease 4,000 Cost of goods sold 42,000 Salaries payable increase 1,000 Salaries expense 10,000 Depreciation expense 5,000 Net income $ 14,000
Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
See below
Explanation:
Statement of cash flow from operating activities using the indirect method.
Net income
$14,000
Adjustment for non cash items:
Depreciation expense
$5,000
Adjustments for changes in working capital:
Increase in accounts receivables
($8,000)
Decrease in inventory
$4,000
Increase in salaries payable
$1,000
Net cash from operating activities
$16,000
Boxwood Company sells blankets for $40 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 5 $14 10 Sale 3 17 Purchase 15 $15 20 Sale 5 23 Sale 2 30 Purchase 15 $19 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. a.$50 b.$80 c.$20 d.$110
Answer:
The company had no beginning inventory on May 1. May 3 Purchase 5 $20 10 Sale ... Boxwood Company sells blankets for $40 each. The following was taken
Explanation:
An employee receives an hourly rate of $18, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 7% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 4% on the first $7,000; federal unemployment compensation tax, 1% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense
Answer:
total salary = (40 x $18) + (6 x $18 x 1.5) = $882
Dr Salaries expense 882
Cr Federal income tax withholding payable 120
Cr OASDI tax withholding payable 61.74
Cr Medicare tax withholding payable 13.23
Cr Salaries payable 687.03
Dr Payroll tax expenses 119.07
Cr OASDI tax payable 61.74
Cr Medicare tax payable 13.23
Cr SUTA tax payable 35.28
Cr FUTA tax payable 8.82
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
a. Ted paid $30 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.
Deductible for AGI $
Deductible from AGI $
Not deductible $
b. Tyler paid $154 for minor repairs to the fence at a rental house he owned.
Deductible for AGI $
Deductible from AGI $
Not deductible $
c. Timmy paid $775 for health insurance premiums this year. Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.
Deductible for AGI $
Deductible from AGI $
Not deductible $
d. Tess paid $1,880 of state income taxes on her consulting income.
Answer:
a. Ted paid $30 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.
Not deductibleIs not a business expense nor it can be itemized.
b. Tyler paid $154 for minor repairs to the fence at a rental house he owned.
Deductible for AGIRepairs and maintenance expenses of rental property decrease your AGI.
c. Timmy paid $775 for health insurance premiums this year. Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.
Not deductibleIf Timmy's medical expenses were more than 10% of your AGI, then you can deduct the difference. But I doubt Timmy earns less than $7,750.
d. Tess paid $1,880 of state income taxes on her consulting income.
Deductible from AGIIf you itemize deductions, you can deduct up to $10,000 in state or local taxes.
26223-CZ company a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The 26223-CZ company based its predetermined overhead rate for the current year on the following data: Total machine-hours 50,000 Total fixed manufacturing overhead cost $ 400,000 Variable manufacturing overhead per machine-hour $ 6 Recently, Job D284 was completed with the following characteristics: Number of units in the job 40 Total machine-hours 100 Direct materials $ 750 Direct labor cost $ 2,750 If the company marks up its unit product costs by 60% then the selling price for a unit in Job D284 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$4,900
Explanation:
Total variable overhead estimated
= $6 × 50,000
= $300,000
Therefore,
Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated
= $300,000 + $400,000
= $700,000
Predetermined overhead rate
= $700,000/50,000
= $14 per machine hour
Total overhead applied
= $14 × 100
= $1,400
Therefore,
Total job cost = Direct material + direct labor + total overhead
= $750 + $2,750 + $1,400
= $4,900
Brandon, the Marketing Manager at a public relations firm, suspects that one of his team members, Ross, has been engaging in substance abuse. Brandon has observed that Ross has lately been aggressive at the workplace, is mostly absent, shows low participation, has low productivity, and exhibits other antagonistic behaviors. Brandon wants to help Ross and does not want him to lose his job, as he had been efficient in the past. In this case, if Ross is a confirmed substance abuser, which of the following programs should Brandon consider using to help Ross's situation?
a. An employee engagement program
b. An employee assistance program
c. The Medicaid program
d. The Healthy People 2020 program
Answer:
b. An employee assistance program
Explanation:
The employee asssitance program is the program in which it offers free of cost and the assessment that are confidential in all respect. It includes short-term counselling, references, follow up services to the employees who has the personal or work related issues
Since Brandon wants to help Ross and also he dont want to lose his job
so this given situation represent the assistance program
Therefore the option b is correct
Ebay, Inc. went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC. In the IPO, the Ebay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first-day closing price was $44.88. If the investment bankers retained $1.26 per share as fees, what was the net proceeds to Ebay in dollars
Answer:
Net proceeds to Ebay = $ 58,590,000.
Explanation:
An Initial Public Offering(IPO) refers to the sales of new block of shares to the general public by a company for the purpose of raising equity capital.
This exercise is always promoted by a third-party company referred to as an underwriter for a fee. The underwriter adds value to the capital raising share offering by contracting to buy up unsold share units should they be undersubscribed. The underwriting fee is a cost to the issuing company.
The net share capital due to the company is computed as follows
Gross share proceeds - underwriting fee
= (3,500,000 × $18.00) - (3,500,000× $1.26)
=$ 58,590,000.
Net proceeds to Ebay = $ 58,590,000.
The closing price of $44.88 is a distracter and should be ignored.
Which of the statements is not true about a bank run? Bank runs are bad for the bank affected and usually good for the bank's competitors. Fears leading to bank runs can be self-fulfilling. Deposit insurance is designed to reduce the risk of bank runs for depository banks. There was a wave of bank runs during the Great Depression. Since the Great Depression the government has set up regulation that has eliminated most bank runs.
Answer:
Explanation:
90% of people marry there 7th grade love. since u have read this, u will be told good news tonight. if u don't pass this on nine comments your worst week starts now this isn't fake. apparently if u copy and paste this on ten comments in the next ten minutes you will have the best day of your life tomorrow. you will either get kissed or asked out in the next 53 minutes someone will say i love u
A company called Brightline has made a deal with Disney to create a rail station at Disney Springs on its planned route from Miami to Tampa. Read about this. Is a private rail link a good idea? Will it make Amtrak function any better? Will it create openings for private sector rail owner/operators as was the case in the USA before Amtrak and as is the case in the UK where not all rail services are BritRail?
Answer:
The answer for all three questions is yes.
A private player will increase competition and will make Amtrak provide a better service. Private companies are generally more efficient since their focus is on creating value.
Amtrak might benefit since the private rail might be used as additional help when their service is overloaded.
Increased competition and increase in private investment is always better for everyone since it creates new opportunities.
Creating a Business Plan: Why is the section on key personnel so important?
Answer:
D- Investors invest in people even more than ideas.
Explanation:
Took the quiZ
Stallion Corporation sold $190,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 10 percent, pay interest semiannually on January 1 and July 1. The entry to record interest income by Pony Corporation on December 31, 20X7, was as follows:
Note: Assume using straight-line amortization of bond discount or premium.
General Journal Debit Credit
Interest Receivable 9,500
Interest Income 9,025
Investment in Stallion Corporation Bonds 475
Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7.
Required:
A. What was the original purchase price of the bonds to Stallion Corporation?
B. What is the balance in Pony's bond investment account on December 31, 20X7?
C. Prepare the worksheet elimination entry or entries needed to remove the effects of the intercompany ownership of bonds in preparing consolidated financial statements for 20x7.
• Record the entry to eliminate the effects of the intercompany ownership in the bonds.
• Record the entry to eliminate the intercompany interest receivables/payables.
Answer:
a. Amortization of Bond Premium semi-annual = $475
Amortization of Bond Premium annual = $475*2 = $950
Bond Premium = $950*10 years = $9,500
Par value of Bonds $190,000
Premium on Bonds $9,500
Original Price of Bonds $199,500
b. Original Purchase Price = $199,500
Semi-annual periods from Jan 1,20X5 - Dec 31,20X7 = 3 yrs*2 = 6 periods
Premium amortization till Dec 31, 20X7 = $475*6 = $2,850
Balance in Bond Investment account = $199,500 - $2,850
Balance in Bond Investment account = $196,650
c. Event Accounts & Explanation Debit Credit
1. Bonds Payable $190,000
Bond Premium ($9,500 - $2,850) $6,650
Interest Income ($9,025*2) $18,050
Investment in Stallion Corporation Bonds $196,650
Interest Expense $18,050
(To record the entry to eliminate the effects of the
inter-company ownership in the bonds)
2. Interest Payable $9,500
Interest Receivable $9,500
(To record the entry to eliminate the inter-company
interest receivables/payable)
On October 1, Vista View Company rented warehouse space to a tenant for $2,600 per month. The tennant paid five months rent in advance on that date, with the lease begginning immediately. The cash recipt was credited to the Unearned Rent account. The company's annual accounting period ends on December 31. The adjusting entry needed on December 31 is:
Answer:
The adjusting entry needed on December 31 is:
December 31
Debit : Unearned Rent $7,800
Credit : Rent Income $7,800
Explanation:
First, lets go through the accounting process of this journal as it started on October 1. Then afterwards we get to understand what needs to be adjusted and how.
October 1 - Vista View Company receives rent in advance.
Vista View Company, is not yet entitled to this amount since tenant has not used its services yet. That why the journal should be a simple Debit of Cash and Credit of Unearned Rent by the total of five months paid in advance $13,000 ($2,600 x 5 months).
December 31 - Now three months have expired and this period the Landlord is entitled to the amount that was previously received but only for the 3 months period.
Thus we need to recognize revenue and de-recognize the Unearned Rent liability with the amount for 3 months` rent
A corporation is concerned about their exposure to criminal liability after the most recent election cycle placed a number of new legislators in Congress who campaigned against corporate corruption. Select the strategy that would be least effective in reducing the company's criminal liability.
A. It could prioritize ethical leadership when making hiring decisions for management-level positions.
B. It could encourage reporting by establishing internal protections for whistleblowers beyond what is provided by Congressional law.
C. It could strengthen its code of ethics to reflect the current political mood.
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Answer:
The strategy that would be least effective in reducing the company's criminal liability is:
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Explanation:
While the other three options will effectively reduce the company's criminal liability exposure, option D is the least that is likely to have a positive or effective effect. This implies that option D is most likely to aggravate the criminal liability of the company as it will be regarded as bribery to cover up a crime.
Madison Foods Corp. is frustrated in its efforts to sell products in Europe because several countries are demanding that the company label products in the specific language associated with the country. These demands are examples of a Multiple Choice trade obstacle. trademark. trade role. trade name.
Answer: Trade obstacle
Explanation:
From the information given, we can infer that the demands are examples of trade obstacle.
Trade obstacles refers to the barriers which hinder a trade or the restrictions on an international trade. Trade obstacles can be tariffs or other non-tariff methods. Trade obstacles lead to difficulties in the sale of a product to other countries.
The demand are example of Trade obstacle
What is a Trade obstacle?It means the barriers that should be hindered with respect to the trade or the restrictions that should be on international trade. It could be tariffs or it can be non-tariff methods. It result in difficulties for selling the product to the other countries.
Learn more about demand here: https://brainly.com/question/24741453
define private equity funds.
Answer:
Private equity is composed of funds and investors that directly invest in private companies
Hope this helps!
Find a false statement on bond duration. Multiple choice question. With time to maturity and yield to maturity held constant, a bond's duration and interest rate sensitivity are higher when the coupon rate is lower. With other factors held constant, the duration of a coupon bond is higher when the bond's yield to maturity is higher. Duration always increases with maturity for a premium bond. The duration of a zero-coupon bond equals its time to maturity.
Answer:
✓With time to maturity and yield to maturity held constant, a bond's duration and interest rate sensitivity are higher when the coupon rate is lower.
✓The duration of a zero-coupon bond equals its time to maturity.
✓Duration always increases with maturity for a premium bond.
Explanation:
Bond duration in finance can be regarded as a way used in measuring
the likelyhood or how much the prices of bond to change when and there is a movement in interest rates. It can be defined as the measurement of the risk interest rate. With Understanding about bond duration, it will be easier for investors to determine how bonds can fit in to investment portfolio. It should be noted that With other factors held constant, the duration of a coupon bond is higher when the bond's yield to maturity is higher.
journal entries paid commission Rs 30000
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $226,800 of raw materials on credit; issued materials to production of $219,000 of which $37,200 were indirect. Minstrel incurred a factory payroll of $164,400, of which $47,200 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $17,900 and $31,800 respectively. Compute the cost of jobs transferred to Finished Goods Inventory.
Answer:
$460,900
Explanation:
The computation of the cost of jobs transferred to Finished Goods Inventory is shown below:
= beginning wip + Direct material + direct labor + manufacturing overhead - closing wip
= $17,900 + ($219,000 - $37,200) + ($164,400 - $47,200) + 150% of $117,200 - $31,800
= $17,900 + $181,800 + $117,200 + $175,800 - $31,800
= $460,900
At the end of 2020, an italian subsidiary of a U.S. parent reports 1000000 euros in equipment purchased when the exchange rate was $.140, and 3000000 euros in equipment purchased when the exchange rate was $1.50. The avrage exchange rate for 2020 is $1.35, and the beginning and ending rates for 2020 are $1.42 and $1.31, respectively. If the Italian subsidiary's functional currency is the U.S. dollar, the equipment account, in U.S. dollars is
Answer: $5,900,000
Explanation:
If If the Italian subsidiary's functional currency is the U.S. dollar, the equipment account, in U.S. dollars will be calculated as:
Equipment purchased = € 1000000
Exchange rate = $1.40
Amount in dollars = $1,400,000
Equipment purchased = € 3000000
Exchange rate = $1.50
Amount in dollars = $4,500,000
Therefore, the equipment account, in U.S. dollars will be:
= $1,400,000 + $4,500,000
= $5,900,000
Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $ 67.6 million
Dr Discount on bonds payable
$ 1.3 million
Cr Bonds payable 65million
Cr Equity-stock warrants outstanding $3.9million
Explanation:
Preparation of the journal entry to record the issuance of the bonds
Dr Cash $ 67.6 million
(65,000,000 * 104/100 = $ 67.6 million)
Dr Discount on bonds payable
$ 1.3 million
($65million+$3.9 million-$67.6million)
Cr Bonds payable 65 million
Cr Equity-stock warrants outstanding $3.9million
($4× 15 warrants × 65,000 bonds = $3.9million)
(Being To record issuance of bonds)
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $90 comma 000 a year, and he pays workers $110 comma 000 in wages. In return, he produces 300 comma 000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 1 percent and that the farmer could otherwise have earned $45 comma 000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $nothing . (Enter your response as an integer.)
Answer:
Economic profit =$645,000
Explanation:
Economic profit is the difference between revenue and out of pocket expenses plus opportunity cost.
Opportunity cost is the value of the benefit sacrificed in favour of a decision. It is the value of the next best alternative forgone in favour of a decision.
For example, the opportunity cost of the farmer is the interest rate he would have earned had he invested the money in savings account plus the salary forgone as a salesman
Economic profit = Revenue - out-of-pocket expenses - opportunity cost
Opportunity cost = interest foregone + salary forgone
= (1% × $1,000,000) + 45,000 = 55,000
Out of pocked trading expenses = 110,000 + 90,000 = $200,000
Revenue = $3 × 300,000 = $900,000
Economic profit = 900,000 -200,000-55,000= $645,000
Economic profit =$645,000
The ledger of Blue Spruce Company contains the following balances: Retained Earnings $30,500, Dividends $2,500, Service Revenue $50,500, Salaries and Wages Expense $26,500, and Supplies Expense $7,000. The closing entries are as follows:
(1) Close revenue accounts.
(2) Close expense accounts.
(3) Close net income/(loss).
(4) Close dividends.
Enter the balances in T-accounts, and post the closing entries.
Salaries and Wages Expense select an option Bal. enter a debit amount 26500 select an option enter a credit balance
Supplies Expense select an option enter a debit amount select an option Bal. enter a credit balance 7000
Service Revenue select an option (1) enter a debit balance 50500 select an option Bal. enter a credit amount 50500
Dividends select an option (4) enter a debit amount 2500 select an option Bal. enter a credit balance 2500
Income Summary select an option enter a debit amount 26500 select an option enter a credit amount 50500
select an option enter a debit balance 7000
select an option enter a credit balance 2500
Retained Earnings select an option enter a debit amount
select an option enter a credit amount
select an option enter a debit amount
select an option enter a credit amount
select an option enter a debit balance
select an option enter a credit balance
Answer:
Blue Spruce Company
Closing Entries:
1. Close Revenue Accounts:
Debit Service Revenue $50,500
Credit Income Summary $50,500
To close the service revenue account to the income summary.
2. Close Expense Accounts:
Debit Income Summary $26,500
Credit Salaries and Wages Expense $26,500
To close the salaries and wages expense account to the income summary.
Debit Income Summary $7,000
Credit Supplies Expense $7,000
To close the supplies expense account to the income summary.
3. Close net Income/(Loss):
Debit Net Income $17,000
Credit Retained Earnings $17,000
To close the net income to retained earnings.
4. Close Dividends:
Debit Retained Earnings $2,500
Credit Dividends $2,500
To close the dividends account to retained earnings.
Explanation:
a) Data and Calculations:
Retained Earnings $30,500
Dividends $2,500
Service Revenue $50,500
Salaries and Wages Expense $26,500
Supplies Expense $7,000
Mini-Income Statement:
Service Revenue $50,500
Salaries and Wages Expense $26,500
Supplies Expense $7,000 33,500
Net income for the year $17,000
b) The above entries close the temporary accounts to the income summary where the net income is determined for the year. The net income and dividends are thereafter closed to the retained earnings, which is a permanent account that will appear in the balance sheet and the next accounting period.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $43,000 $52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Pre-determined overhead rate based on direct labor cost 70%
Compute the following amounts for the month of May using T-accounts.
1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.
4. Gross profit.
5. Overapplied or underapplied overhead.
Do not consider any underapplied or overapplied overhead.
These are the accounts that are used t(that need to be filled in).
1. Raw Materials (RM)
2. Goods In Process (GIP)
3. Factory Payroll
4. Finished Goods (FG)
5. Factory Overhead
6. Income Statement (Partial)
Answer:
Lock-Tite Company
1. Cost of direct materials used = $186,000
2. Cost of direct labor used = $265,000
3. Cost of goods manufactured = $ 625,400
4. Cost of goods sold = $652,800
4. Gross profit = $747,200
5. Underapplied overhead = $29,500
Explanation:
a) Data and Calculations:
Inventories April 30 May 31
Raw materials $43,000 $52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Raw materials
Account Titles Debit Credit
Beginning balance $43,000
Cash 210,000
Factory overhead $15,000
Goods in Process 186,000
Ending balance $52,000
Goods in process
Account Titles Debit Credit
Beginning balance 10,200
Raw materials 186,000
Factory payroll 265,000
Factory overhead 185,500
Finished Goods Inventory 625,400
Ending balance 21,300
Factory Payroll
Account Titles Debit Credit
Cash $345,000
Factory Overhead $80,000
Goods in Process 265,000
Finished goods
Account Titles Debit Credit
Beginning balance 63,000
Goods in Process 625,400
Cost of goods sold 652,800
Ending balance 35,600
Factory Overhead
Account Titles Debit Credit
Raw materials $15,000
Factory payroll 80,000
Cash 120,000
Goods in Process $185,500
Balance 29,500
Income Statement (Partial)
Sales $1,400,000
Cost of goods sold 652,800
Gross profit $747,200
The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Hopkinsville Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total
Answer:
Whole units 14,320
Direct materials equivalent units 13,680
Conversion costs equivalent units 13,332
Explanation:
Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Hopkinsville Company Number of Equivalent Units of Production
WHOLE UNITS
Inventory in process, beginning 640
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 13,600
(640+12,960)
Inventory in Process ending 720
Total 14,320
(13,600+720)
DIRECT MATERIALS EQUIVALENT UNITS
Inventory in process, beginning 0
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 12,960
Inventory in Process ending 720
Total 13,680
(12,960+720)
CONVERSION EQUIVALENT UNITS
Inventory in process, beginning 192
[640-(640*70%)]
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 13,152
(192+12,960)
Inventory in Process ending 180
(720*25%)
Total 13,332
(13,152+180)
define hedge fund economics.
Answer:
Financial partnerships
Explanation:
Hedge funds are financial partnerships that use pooled funds and employ different strategies to earn active returns for their investors. Hedge fund strategies include long-short equity, market neutral, volatility arbitrage, and merger arbitrage. They are generally only accessible to accredited investors.
XYZ Corporation is contemplating the replacement of an existing asset used in the operation of its business. The original cost of this asset was $28,000; since date of acquisition, the company has taken a total of $20,000 of depreciation expense on this asset. The current disposal (market) value of this asset is estimated as $18,000. XYZ is subject to a combined income tax rate, t, of 34%. What is the projected after-tax cash flow associated with the sale of the existing asset, rounded to nearest hundred dollars
Answer:
The projected after-tax cash flow associated with the sale of the existing asset is $14,600.
Explanation:
The projected after-tax cash flow can be calculated as follows:
Net book value of the asset = Original cost - Accumulated depreciation expense = $28,000 - $20,000 = $8,000
Capital gains = Estimated current disposal (market) value of the asset - Net book value of the asset = $18,000 - $8,000 = $10,000
Capital gains tax = Capital gains * Tax rate = $10,000 * 34% = $3,400
Projected after-tax cash flow = Estimated current disposal (market) value of the asset - Capital gains tax = $18,000 - $3,400 = $14,600
Therefore, the projected after-tax cash flow associated with the sale of the existing asset is $14,600.