Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.

Oct. 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated October 2, terms 2/10, n/30.
10 Received a credit memorandum toward the return of $850 ($833 net) of merchandise that it purchased on October 2.
17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17, terms 2/10, n/30.
27 Paid for the merchandise purchased on October 17, less the discount.
31 Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)

Required:
Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts.

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

October 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated

                                                      GROSS                   NET

Dr   Merchandise inventory       $4,700                   $4,606

Cr      Account payable                       $4,700                  $4,606

October 10 Received a credit memorandum toward the return of $850 ($833 net)

                                          GROSS                   NET

Dr    Account payable   $850                    $833

C         Inventory                     $850                   $833

October 17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17,

                                                      GROSS                   NET

Dr   Merchandise inventory       $8,800                      $8,624

Cr      Account payable                       $8,800                     $8,624

October 27 Paid for the merchandise purchased on October 17, less the discount.

Dr    Account payable    8,800                      

Cr        Discount                   176

Cr        Cash                         8,624

October 31 Paid for the merchandise purchased on October 2.

Dr    Account payable    4,700

Cr        Cash                         4,700

Which factors influence changes in consumer demand? Check all that apply.
market share
elasticity
O international trade
O clearance sales
O income

Which example is not an advantage of b entrepreneurship’s

Eulis Co. has identified an investment project with the following cash flows. YearCash Flow 1 $1,130 2 1,000 3 1,510 4 1,870 If the discount rate is 9 percent, what is the present value of these cash flows

The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 10.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then this bond will trade at ________.

After conducting research, you will need to generate ideas and organize the collected data. Simple organizational techniques will help provide structure and direction as you prepare to compose. To compose simple messages, you may need only to make a scratch list of your ideas before writing. Many messages, however, may require you to make an outline to organize your thoughts. Use the scratch list to answer the question that follows.

The Boston Hotel

a. High-end linens
b. 600-thread-count sheets
c. Coffee maker with selected teas
d. Imported beer
e. Fresh-squeezed juices
f. Affordability
g. Food and drink
h. Double-thick bath towels
i. Silk pillowcases
j. Raw silk curtains with gold embellishments
k. $100/night four-star rooms
l. Free snacks, shampoo, and conditioner
m. Free wireless Internet

Required:
What are the three major components in the preceding scratch list?

The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.

Accounts Payable $39,000
Accounts Receivable 66,400
Accumulated Depreciation 21,400
Cash 80,200
Common Stock 94,700
Equipment 90,600
Income Tax Expense 10,490
Notes Payable (long-term) 1,490
Office Expenses 6,290
Rent Expense 164,100
Retained Earnings 99,790
Salaries and Wages Expense 128,600
Sales Revenue 325,400
Supplies 35,100

Required:
Prepare an adjusted trial balance at September 30, 2018.

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 180,000 wheels annually are:

Direct materials $36,000
Direct labor $54,000
Variable manufacturing overhead $27,000
Fixed manufacturing overhead $66,000

An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier, $21,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $51,000 per year. Direct labor is a variable cost. If Talbot chooses to buy the wheel from the outside supplier, then annual net operating income would: __________

Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units.

Required:
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.

a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021

The following ledger accounts are used by the Heartland Race Track
Accounts Receivable
Prepaid Advertising
Prepaid Rent
Unearned Sales Revenue
Sales Revenue
Advertising Expense
Rent Expense
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year.
A) On November 1, paid rent on the track facility for three months, $180,000.
B) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $1,152,000.
C) On November 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
D) On November 5, programs for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.
E) The accountant for the concessions company reported that gross receipts for November were $168,000. 10% is due to Heartland and will be remitted by December 10.
Prepare the journal entry (if one ls required) to record the Initial transaction.
Prepaid Rent 150,000
Cash 150,000
Cash 960,000
Unearned Sales
Revenue 960,000
Cash 250,000
Notes Payable 250,000
Prepaid
Advertising 3,000
Cash 3,000

Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway in making decisions. Copeland is said to have good:

a worker produced four components during an 8-hour shift in which he earned $96. What is his labor cost per unit?

You are given the following information concerning Parrothead Enterprises:

Debt: 13,000 6.4 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually.
Common stock: 345,000 shares of common stock selling for $76.50 per share. The stock has a beta of .90 and will pay a dividend of $3.80 next year. The dividend is expected to grow by 5 percent per year indefinitely.
Preferred stock: 10,000 shares of 4.4 percent preferred stock selling at $86 per share.
Market: 11 percent expected return, risk-free rate of 3.6 percent, and a 22 percent tax rate.

Required:
Calculate the company's WACC.

On September 1, 2019, Fast Track, Inc., was started with $25,000 invested by the owners as contributed capital. On September 30, 2019, the accounting records contained the following amounts:
Unearned revenue $ 500
Accounts payable 2,200
Prepaid expenses $ 1,000
Dividends declared 2,300
Accounts receivable 2,200
Office equipment 20,000
Accumulated depreciation 500
Office supplies 1,750
Cash 9,500
Office supplies expense 600
Consulting fees revenue 19,200
Rent expense 2,400
Contributed capital 25,000
Salary expense 6,900
Depreciation expense 500
Telephone expense 250
Required:
Prepare a classified income statement, a statement of retained earnings and a classified balance sheet for the first month of Fast Track’s operation.

On January 1, 2020, Meeks Corporation issued $5,000,000, 10-year, 4% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2020 is

a. Cash........................................................................................ 5,000,000
Bonds Payable............................................................... 5,000,000

b. Cash........................................................................................ 5,100,000
Bonds Payable............................................................... 5,100,000

c. Premium on Bonds Payable ................................................... 100,000
Cash........................................................................................ 5,000,000
Bonds Payable............................................................... 5,100,000

d. Cash........................................................................................ 5,100,000
Bonds Payable............................................................... 5,000,000
Premium on Bonds Payable .......................................... 100,000

A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of Most decision makers and analysts use five groups of ratios to examine the different aspects of a company's performance.
Indicate whether each of the following statements regarding financial ratios are true or false?
Statement True False
1. A company exhibiting a high liquidity ratio means it is likely to have enough resources to pay off its short-term obligations
2. Asset management ratios provide insights into management's efficiency in using a firm's working capital and long-term assets.
3. Debt management or financial leverage ratios help analysts determine whether a company has sufficient cash to repay its short- term debt obligations.
4. One possible explanation for an increase in a firm's profitability ratios over a certain time span is that the company's income has increased
5. Market-value ratios help analysts figure out what investors and the markets think about the firm's growth prospects or current and future operational performance
Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry However, like many tools and techniques, ratio analysis has a few limitations and weaknesses Which of the following statements represent a weakness or limitation of ratio analysis?
a. A firm may operate in multiple industries.
b. A firm's financial statements show only one period of financial data.
c. Different firms may use different accounting practices.

1. Accrual accounting is used by the vast majority of companies. *
O
True
O False​

Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units:

Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.

Required:
Calculate the cost per equivalent unit of materials.

Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

According to the video, what are some things that Human Resources Managers do? Check all that apply.

oversee hiring and firing
purchase computers
distribute office supplies
develop training programs
develop personnel policies
develop pricing strategies
develop recruiting programs

The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.

The company should work the extra shift if the cost of capital is between ___________ % and ___________ %

What is the best application to chart the average temperature for the year?
PowerPoint
Access
Word
Excel

Some recent financial statements for Smolira Golf Corp. follow.
SMOLIRA GOLF CORP.
2017 and 2018 Balance Sheets
Assets Liabilities and Owners’ Equity
2017 2018 2017 2018
Current assets Current liabilities
Cash $23,046 $25,100 Accounts payable $24,184 $28,100
Accounts
receivable 13,448 16,200 Notes payable 20,000 11,800
Inventory 26,822 28,100 Other 12,571 19,100
Total $63,316 $69,400 Total $56,755 $59,000
Long-term debt $79,000 $83,424
Owners’ equity
Common stock and
paid-in surplus $48,000 $48,000
Accumulated retained
earnings 214,256 243,576
Fixed assets
Net plant and
equipment $334,695 $364,600 Total $262,256 $291,576
Total assets $398,011 $434,000 Total liabilities and
owners’ equity $398,011 $434,000
SMOLIRA GOLF CORP.
2018 Income Statement
Sales $349,760
Cost of goods sold 241,500
Depreciation 27,200
Earnings before
interest and taxes $81,060
Interest paid 15,300
Taxable income $65,760
Taxes (25%) 16,440
Net income $49,320
Dividends $20,000
Retained earnings 29,320
Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate):
Short-term solvency ratios: 2014 2015
A. Current ratio times times
B. Quick ratio times times
C. Cash ratio times times
Asset utilization ratios:
D. Total asset turnover times
E. Inventory turnover times
F. Receivables turnover times
Long-term solvency ratios: 2014 2015
G. Total debt ratio times times
H. Debt–equity ratio times times
I. Equity multiplier times times
J. Times interest earned times
K. Cash coverage ratio times
Profitability ratios:
L. Profit margin
M. Return on assets
N. Return on equity

You are invested in two hedge funds. The probability that hedge fund Alpha generates positive returns in any given year is 60%. The probability that hedge fund Omega generates positive returns in any given year is 70%. Assume the returns are independent. What is the probability that both funds generate positive returns in a given year? What is the probability that both funds lose money?

Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.

Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT::_______

a. What are the key managerial positions that are available at the new hotels?
b. What percentage of employers in the service industry use succession planning?
c. What skills, education, and training have been provided to potential candidates?
d. What is the designated procedure for assessing and selecting potential candidates?

On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s).

1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Merry Walker, Capital
10. Merry Walker, Drawing
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense

On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end. In its December 31, 2013, balance sheet, Rigsby would report:

a. Realized gross profit of $100,000.
b. Deferred gross profit of $100,000.
c. Installment receivables (net) of $3,200,000.
d. Installment receivables (net) of $4,

What are the limitations and risks of a marketing strategy that does not contemplate the responses of your competitors

Your firm has taken out a 521,000 loan with 8.6% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in 5 years. To do this, you will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?