The Chewbacca Starship Company had the following transactions during the month of December:
a. purchased inventory on account for $230,000 (assume Chewbacca uses a perpetual inventory system)
b. paid $57,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $154,000 to credit customers for $285,000
d. collected $265,000 in cash from credit customers
e. paid suppliers of inventory $210,000.
Required:
Post the above transactions to the T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $73,500, $60,000, and $39,000, respectively.
Answer:
The Chewbacca Starship Company
T-accounts:
Cash
Date Account Titles Debit Credit
Dec. 1 Beginning balance $73,500
Dec. 31 Salaries expense $57,000
Dec. 31 Accounts receivable 265,000
Dec. 31 Accounts payable 210,000
Accounts receivable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $60,000
Dec. 31 Sales revenue 154,000
Dec. 31 Cash $265,000
Accounts payable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $39,000
Dec. 31 Inventory 230,000
Dec. 31 Cash $210,000
Inventory
Date Account Titles Debit Credit
Dec. 31 Accounts payable $230,000
Sales revenue
Date Account Titles Debit Credit
Dec. 31 Accounts receivable $154,000
Salaries Expense
Date Account Titles Debit Credit
Dec. 31 Cash $57,000
Explanation:
a) Data and Analysis:
a. Inventory $230,000 Accounts payable $230,000
b. Salaries expense $57,000 Cash $57,000
c. Accounts receivable $154,000 Sales revenue $154,000
d. Cash $365,000 Accounts receivable $265,000
e. Accounts payable $210,000 Cash $210,000
Opening balances:
Cash $73,500
Accounts receivable $60,000
Accounts payable $39,000
$82 Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products
Answer:
$28.62
Explanation:
Calculation to determine what amount of revenue will be allocated to Math Fun in the package that contains all three products
First step is to calculate the Total revenue of three product if sold individually
Total revenue= $21 + $37 + $48
Total revenue= $106
Now let calculate the allocation of revenue to Math fun based on revenue proportion
Using this formula
Revenue allocation= Packaged revenue / Total individually revenue * Revenue of Math fun
Let plug in the formula
Revenue allocation= $82/106*37
Revenue allocation= $28.62
Therefore the amount of revenue that will be allocated to Math Fun in the package that contains all three products is $28.62
Vick Vickers has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Vickers account for the cash received at the end of the engagement
Answer:
Vick Vickers
Vickers accounts for the cash received at the end of the engagement by debiting Cash account and crediting Consulting Fees (Revenue).
Explanation:
Then the fees received upfront, which were earlier credited to the Deferred Service Revenue account, are then closed by a debit to the Deferred Service Revenue and a credit to the Consulting Fees (Revenue) account. This is in line with the double-entry system of financial accounting and the new Revenue from Contracts with Customers, IFRS 15 or the ASC 606 equivalent.
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours. If it decides to produce 60 barrels of oil, how many bushels of corn can it produce
Answer: 10 bushels
Explanation:
If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:
= 100 / 100
= 1 work hour
For bushels however, 1 worker hour produces:
= 25 / 100
= 0.25 bushels of corn
If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.
Bushels of corn produced is therefore:
= 40 * 0.25
= 10 bushels
Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. A. The trader has lost $625. B. The trader has lost $6,250 C. The trader has made $6,250 D. The trader has lost $66,287.88
Answer:
B. The trader has lost $6,250
Explanation:
Calculation to determine the amount the trader has loss
First step
You will buy at $1.75 and spend= (1.75 × 62,500) You will buy at $1.75 and spend= $109,375
Second step
But you could buy and spend= (1.65 × 62,500)
But you could buy and spend= $103.125
Now let calculate the amount the trader has loss
Loss=$103,125 - $109,375
Loss = -$6,250
Therefore The trader has lost $6,250
At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,929. During the year, the company repaid a long-term loan in the amount of $10,839. The company paid $4,235 in interest during the year, and opened a new long-term loan for $9,525. What was the cash flow to creditors during the year
Answer:
$5549
Explanation:
Calculation to determine the cash flow to creditors during the year
Using this formula
Cash flow to creditors =Interest -New debt
Let plug in the formula
Cash flow to creditors=4235-(9525-10,839)
Cash flow to creditors=4235-(-1314)
Cash flow to creditors =$5549
Therefore the cash flow to creditors during the year is $5549
Activity A1 takes 5 weeks, A2 takes 7 weeks, and A3 takes 4 weeks with a 50% probability and 10 weeks with a 50% probability. What is the project completion time under the best-case scenario, that is, A3 is early and takes 4 weeks
Answer:
12
Explanation:
The computation of the project completion time under the best-case scenario is shown below;
= Activity A1 weeks taken + activity A2 weeks taken
= 5 weeks + 7 weeks
= 12
We simply added the time taken by activity 1 and activity 2 so that the project completion time could come
in a bad news message the reasons for the decision
are so obvious that you don’t need to mention them
come directly after the buffer and follow naturally from it
should be glossed over quickly
should be long and roundabout to cushion the negative aspects
Answer:
should be long and roundabout to cushion the negative aspects
if you are delivering bad news if it is directly affecting them they would most likely like to know why and if they can help this issue
Explanation:
mrk me brainliest please.
Oriole Company purchased for $8,767,800 a mine that is estimated to have 48,710,000 tons of ore and no salvage value. In the first year, 2,830,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $enter the depletion cost per ton amount in dollars per ton
Answer:
the depletion cost per unit is $0.18 per ton
Explanation:
The computation of the depletion cost per unit is shown below;
We know that
Depletion cost per ton is
= (Total cost - salvage value) ÷ total estimated units
= ($8,767,800 - $0) ÷ 48,710,000
= $0.18 per ton
Hence, the depletion cost per unit is $0.18 per ton
we simply applied the above formula so that the depletion cost per ton could come
thoughtful is to considerate as
Answer:
thoughtful is to considerate as courage is to bravery?
Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.
Answer:
B. Bonds are typically less risky than stocks.
Explanation:
Answer: B. Bonds are typically less risky than stocks
Explanation:a. p. e. x. (just took the test)
MAD Inc. has a capital structure consisting of 40 percent debt and 60 percent common equity financing. The company has $400 million in net income and plans to pay out 25 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock
Answer:
$500 million
Explanation:
Retained earnings = Income * (1 - Dividend payout percentage)
Retained earnings = $400 million * (1-0.25)
Retained earnings = $400 million * 0.75
Retained earnings = $300 million
Amount that can be raise without selling new stock: Retained earnings / % of equity financing in total capital
= $300 million / 60%
= $300 million / 0.60
= $500 million
Your opinion is that CSCO has an expected rate of return of 0.15. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of return is 0.115. According to the Capital Asset Pricing Model, this security is
Answer:
Overpriced
Explanation:
The computation is shown below;
As we know that
Expected rate of return = risk free rate + beta × ( expected market rate of return - risk free rate )
= 0.04 + 1.3 × (0.115 - 0.04)
= 0.1375
As the return of the security is 0.1375 i.e. more than the expected rate of return i.e. 0.115
Hence, it is overpriced
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 182,000 Interest expense 12,000 Rent expense 22,000 Consulting revenue 408,000
Answer:
I don't know thish question
A maker of computer games expects to sell games at a price of per game. These units cost to produce. Selling, general, and administrative expenses are million and depreciation is . What is the EBIT break-even point for the number of games sold in this case?
Answer:
$33,684 units
Explanation:
Calculation to determine the EBIT break-even point for the number of games sold in this case
Using this formula
Units sold=(Selling, general, and administrative expenses+Depreciation)/(Price per game-Units cost)
Let plug in the formula
Units sold=($1,000,000+$280,000)/($48-$10)
Units sold = $1,280,000 / $38
Units sold= $33,684 units
Therefore the EBIT break-even point for the number of games sold in this case will be $33,684 units
A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days, decreases its inventory period by 1 day and increases its payables period by 3 days. What will the length of the cash cycle be after these changes
Answer:
41 days
Explanation:
Calculation to determine What will the length of the cash cycle be after these changes
Using this formula
Cash cycle Length=Cash cycle+Increases in receivables period -Decreases in inventory period -Increases in payables period
Let plug in the formula
Cash cycle Length = 43 days+2 days -1 days - 3 days
Cash cycle Length= 41 day
Therefore What will the length of the cash cycle be after these changes is 41 days
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
Required:
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
A. Monthly flat fee to clean workshop
B. Laminate coverings for desktops
C. Taxes on assembly workshop
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2018. Assume the following manufacturing costs:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2018.
Answer:
Business Solutions
1. Costs Classification:
A. Monthly flat fee to clean workshop = fixed / indirect
B. Laminate coverings for desktops = variable / direct
C. Taxes on assembly workshop = fixed / indirect
2. A Schedule of Cost of Goods Manufactured:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: 0
Ending work in process: (550)
Cost of goods manufactured $3,500
3. Cost of goods sold:
Beginning finished goods inventory: $0
Cost of goods manufactured $3,500
Ending finished goods inventory: $320
Cost of goods sold = $3,180
Explanation:
a) Data and Calculations:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
b) Variable costs are input or direct costs that change with the level of output. Fixed costs are indirect costs that do not change based on the units produced.
The new proposed project needs to use an expensive medical equipment that is already owned by the company. The purchase price of this equipment is $637,000 . The company also spent $124,000 to update its operating software. The equipment recieved a recent market bid from an interested buyer of $718,000. The current book value of $578,000. If the company decides to use this equipment for the new project , what value should we use for this equipment to be included in the initial cash flow of the project
Answer:
$718,000
Explanation:
Based on the information given we were told that the equipment received a MARKET BID from a buyer of the amount of $718,000 which means that in a situation where the company choose to use this equipment for the new project the VALUE that we should use in order for this equipment to be included in the INITIAL CASH FLOW of the project will be the amount of $718,000 which represent the recent MARKET BID amount received from the Interested buyer.
g On January 1, 2019, plant assets, net are $190,000. On December 31, 2019, plant assets, net are $290,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $10,000. What are the cash proceeds from the sale of the plant asset
Answer:
$45,000
Explanation:
Given the equation below,
Total beginning net book value of plant assets + Total plant assets purchased during that period - Total depreciation recorded of plant assets during that period - Net book value of plant assets sold during the period = Net closing book value of plant assets
Hence, we have
$190,000 - $20,000 + $155,000 - Net book value of plant assets sold during the period = $290,000
Net boom value of plant sold during the period = $35,000
We also have the equation below;
Sales proceed - Net book value of plant assets sold during the period = Gain(loss) on disposal of assets
Sales proceed - $35,000 = $10,000
Sales proceed = $10,000 + $35,000
Sales proceed = $45,000
Harvey Dent wants to sell the $43,000 TriForcebonds he purchased 3 years ago at par value. The bonds have a 2.80% coupon, 9 years to maturity, and are trading at a 2.45% yield to maturity. If Harvey sells the bonds today, his proceeds from the sale would result in:
Answer: $1203
Explanation:
Based on the information given in the question, the proceeds gotten from the sales if Harvey sells the bonds today will be:
Formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
= PV(2.45%, 9, -43000 × 2.8%, -43000)
= 44203
Therefore, the proceeds will be the difference between the selling price and the purchase price which will be:
= $44203 - $43000
= $1203
The total value of the bond, or the amount you'll earn if you sell it, is the sum of the face value and the bond's added interest value. The coupon for each bond specifies the interest rate.
The answer, $1203 is the proceeds from the sale would result in.
If Harvey sells the bonds today, based on the evidence presented in the question, the revenues will be:
The formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
[tex]= PV(2.45, 9, - 43000 \text{ x } 0.028, - 43000)\\= 44203[/tex]
As a result, the revenues will be equal to the difference between the selling and buying prices, which will be:
[tex]= 44203 - 43000= $1203[/tex]
For more information regarding the bond proceeds, refer to the link:
https://brainly.com/question/13407939
A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment
Answer:
the annual rate of return is 22.50%
Explanation:
The computation of the annual rate of return is shown below:
Average investment is
= ($900,000 + $300,000) ÷ 2
= $600,000
Now
Annual rate of return is
= Annual net income ÷ Average investment
= $135,000 ÷ $600,000
= 22.50%
hence, the annual rate of return is 22.50%
Which of the following statements about corporate governance in China is false? a. The state still uses direct and/or indirect controls to influence the strategies employed by most firms. b. The Chinese governance system may be tilting toward the Western model. c. Firms with higher state ownership tend to have lower market value and more volatility in those values over time. d. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Answer: D. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Explanation:
Corporate governance refers to a system of policies and rules, which dictate how the operations of an organization are manageed. The statements that are true about corporate governance in China include:
• The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• The Chinese governance system may be tilting toward the Western model.
• Firms with higher state ownership tend to have lower market value and more volatility in those values over time.
Therefore, the answer to the question will be option D as it's not true about corporate governance in China.
Recording Transactions Affecting Stockholders’ Equity
King Corporation began operations in January 2014. The charter authorized the following capital stock:
Preferred stock: 10 percent, $10 par, authorized 40,000 shares
Common stock: $5 par, authorized 85,000 shares
During 2014, the following transactions occurred in the order given:
a. Issued 22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Sold 9,000 shares of the preferred stock at $20 per share.
c. Sold 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Required:
Give the journal entries indicated for each of these transactions.
Answer:
King Corporation
Journal Entries:
a. Debit Cash $594,000
Credit Common stock $330,000
Credit Additional Paid-in Capital- Common $264,000
To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.
b. Debit Cash $180,000
Credit 10% Preferred stock $90,000
Credit Additional Paid-in Capital - Preferred $90,000
To record the issuance of 9,000 shares of the preferred stock at $20 per share.
c. Debit Cash $45,000
Credit 10% Preferred stock $10,000
Credit Additional Paid-in Capital- Preferred $10,000
Credit Common stock $12,500
Credit Additional Paid-in Capital-Common $12,500
To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Explanation:
Data and Analysis:
a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000
22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000
9,000 shares of the preferred stock at $20 per share.
c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500
1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenence margin is $2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call
Answer:
The correct answer is "43.875". A further explanation is provided below.
Explanation:
The given values are:
Initial margin,
= $3,375
Maintenance margin,
= $2,500
Barrels of oil,
= 1,000
Now,
The loss on the position will be:
= [tex]3375-2500[/tex]
= [tex]875[/tex] ($)
then,
⇒ [tex]1000 (P - 43) = 875[/tex]
⇒ [tex]1000P-43000=875[/tex]
On adding "43000" both sides, we get
⇒ [tex]1000P-43000+43000=875+43000[/tex]
⇒ [tex]1000P=43875[/tex]
⇒ [tex]P=\frac{43875}{1000}[/tex]
⇒ [tex]=43.875[/tex]
"You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, –13 percent, 24 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3 percent and the average T-bill rate was 4.35 percent. What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return]"
Answer:
6.80%
Explanation:
The average nominal returns is the sum of the returns for 5 years divided by the number of returns considered( i.e 5, 5 returns for 5 years)
average nominal returns=(6%-13%+24%+18%+15%)/5
average nominal returns=10.00%
The Fisher's equation is shown thus:
(1 + i) = (1 + r) (1 + π)
i=nominal return=10.00%
r=average real return=the unknown
π=inflation rate=3%
(1+10.00%)=(1+r)*(1+3%)
1.10=(1+r)*1.03
1+1=1.10/1.03
r=(1.10/1.03)-1
r=6.80%
A store has the following demand figures for the last four years: Year Demand 1 100 2 150 3 112 4 200 Given a demand forecast for year 2 of 100, a trend forecast for year 2 of 10, an alpha of 0.3, and a beta of 0.2, what is the demand forecast for year 3 using the double exponential smoothing method
Answer:
125
Explanation:
Calculation to determine the demand forecast for year 3 using the double exponential smoothing method
Smoothed forecast for year 3 = (0.3 ×150) + (0.7 ×100) + 10
Smoothed forecast for year 3 = 45+70+10
Smoothed forecast for year 3 =125
Therefore the demand forecast for year 3 using the double exponential smoothing method will be 125
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year. a. The amount of suspended losses carried forward to the year of the sale is $fill in the blank 1 20,000 . b. What amount of the suspended losses is allocated to Activity D
Answer:
a. -$20,000
b. -$2,000
Explanation:
a. The amount of suspended losses carried forward to the year:
= 30,000 + (-30,000) + (-15,000) + (-5,000)
= -$20,000
b. Suspended losses allocated to Activity D:
First find the total amount of losses:
= -30,000 - 15,000 - 5,000
= -$50,000
Activity B accounted for -$5,000 of this loss.
Suspended losses to be allocated to D would therefore be:
= -5,000 / - 50,000 * -20,000
= -$2,000
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A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessionary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.
Answer: 6.91%
Explanation:
Expected return = Sum of (Probability of state of economy * Return given state of economy)
= (56% * 8%) + (12% * 25%) + (19% * -3%)
= 4.48% + 3% - 0.57%
= 6.91%
Scenario C. Victor, the president of Tortoise Bay Pharmaceuticals Inc., sends a memo to his vice presidents regarding new procedures for succession planning in the company. The vice presidents meet informally to discuss the new procedures. When the procedures are announced to the other employees, they form feedback teams. These teams draft memos providing feedback to the vice presidents and CEO regarding the advantages, disadvantages, and potential problems with the new procedures. The original memo sent by the president of the company is an example of
Answer:
Tortoise Bay Pharmaceuticals Inc.
The original memo sent by the president of the company is an example of
downward communication.
Explanation:
Whereas upward communication flows from the lower levels of an organization to higher ranks, with downward communication, information flows from one top level to a lower level in the organization's hierarchy. For example, the original memo sent by the CEO of Tortoise Bay Pharmaceuticals Inc. to his vice presidents is a downward communication. The memos that provide employees' feedback (an efficient communication feature) to the vice presidents and the CEO about the new procedures are examples of upward communication.