Answer:
it credited to preferred stock
Explanation:
The journal entry for issuance of the preferred stock is as follows:
Cash Dr $1,452,000
To Preferred stock (22,000 shares × $66) $1,452,000
(Being the issuance of the preferred stock is recorded)
Here the cash is debited as it increased the assets and credited the preferred stock as it increased the stockholder equity
Therefore it credited to preferred stock
Financial information is presented below:
Operating expenses $ 32000
Sales returns and allowances 6000
Sales discounts 5000
Sales revenue 190000
Cost of goods sold 93000
Gross profit would be:_________
a. 0.34.
b. 0.40.
c. 0.36.
d. 0.64.
Answer:
0.49
Explanation:
First, we need to compute gross profit. See computation of gross profit below;
Sales revenue
$190,000
Less :
Sales returns and allowance
($6,000)
Net sales
$184,000
Less:
Cost of goods sold
($93,000)
Gross profit
$91,000
Therefore,
Gross profit rate = Gross profit ÷ Sales
Gross profit = $91,000 ÷ $184,000
Gross profit rate = 0.49
1. What is the difference between pricing objectives and pricing constraints?
Answer: pricing constraints are factors that limit the range of price a firm May set,such as newness of the product (alternative) , demand for the product class, product, and brand (alternative), cost of producing in marketing the product (alternative), competitors prices.
Pricing objectives-include maximizing profit, increasing sales volume, matching competitors prices,each pricing requires a different price-setting strategy in order to successfully achieve.
Explanation:
Concord Corporation developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories:_______. Product Cost Market A $91000 $96000 B 64000 61000 C 128000 130000 After Concord Corporation applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:________.
Answer:
the value of the inventory reported is $280,000
Explanation:
The computation of the inventory reported on the balance sheet is shown below:
As we know that the inventory should be recorded at lower cost of cost or market value. So here the same is applied
= Lower amount of market A + Lower amount of market B + Lower amount of market C
= $91,000 + $61,000 + $128,000
= $280,000
hence, the value of the inventory reported is $280,000
Larkspur, Inc. issued $432,000, 7%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Larkspur uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds.
Answer and Explanation:
The Journal entry to record the issuance of the bond is as follows:
Cash Dr $449,280 ($432,000 × 1.04)
To Bond payable $432,000
To Premium on bond payable $17,280
(Being the issuance of the bond is recorded)
here the cash is debited as it increased the assets and credited the bond payable and the premium on bond payable as it also increased the liabilities
Sudoku Company issues 26,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $235,000 and the building at $380,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Answer and Explanation:
The journal entry to record the issuance of the stock in exchange of the land and the building is as follows:
Land $235,000
Building $380,000
To Common stock, $8 par value (26,000 shares × $8) $208,000
To Paid-in capital in excess of par value, common stock $407,000
(To record the issuance of the stock in exchange of the land and the building)
Here the land and building is debited as it increased the assets and the common stock and its paid in capital is credited as it also increased the stockholder equity
Derby Inc. manufactures a product which contains a small part. The company has always purchased this motor from a supplier for $125 each. Derby recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the motor instead of buying it. The company prepared the following per unit cost projections of making the motor, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 150% of direct labor cost.
Direct material $38Direct labor 50Overhead fixed and variable 75
Total 163
The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor. What is the effect on income if Derby decides to make the motors?
a. Income will decrease by $16 per unit.
b. Income will increase by $16 per unit.
c. Income will increase by $23 per unit
d. Income will decrease by $23 per unit.
e. Income will increase by $39 per unit.
Answer:
Derby Inc.
If Derby decides to make the motors,
b. Income will increase by $16 per unit.
Explanation:
a) Data and Calculations:
Bought-in cost = $125
Predetermined overhead rate = 150% of direct labor cost
Direct material $38
Direct labor 50
Overhead fixed and variable 75
Total cost per unit $163
Incremental variable overhead cost = $21
Total variable cost = $109 ($38 + 50 + 21)
Differential Income per unit = $16 ($125 - $109)
b) Making the motors in-house will increase income by $16 than buying it outside. This differential income is obtained by comparing the cost of buying the motors from suppliers and the cost of making the motors internally.
What does a credit score measure?
Marigold Lake Corporation’s accounting records show the following at year-end December 31, 2017:
Purchase Discounts
$5,960
Beginning Inventory
$33,550
Freight-In
8,710
Ending Inventory
28,600
Freight-Out
10,940
Purchase Returns and Allowances
3,810
Purchases
163,210
Assuming that Marigold Lake Corporation uses the periodic system, compute cost of goods purchased and cost of goods sold.
Cost of goods purchased ______________________
Cost of goods sold ___________________________
Answer:
Cost of Goods Purchased;
= Purchases - Purchase Returns and Allowances - Purchase Discounts + Freight-In
= 163,210 - 3,810 - 5,960 + 8,710
= $162,510
Cost of Goods Sold
= Beginning Inventory + Cost of Goods Purchased - Ending Inventory
= 33,550 + 162,510 - 28,600
= $167,100
On January 1, a machine with a useful life of four years and a salvage value of $16000 was purchased for $80000. What is the depreciation expense for year 2 under straight-line depreciation?a. $80000.b. $20000. c. $40000. d. $44000.
Answer: Year 2 depreciation= $16,000
Correct answer is not among the options
Explanation:
Using the straight line depreciation method we have that
Annual Depreciation = Purchase cost - Salvage value/ useful life
=$80000-$16000 / 4
$64,000/ 4
= $16,000
If Annual depreciation= $16,000 , then Deprecation expense for year 2 = $16,000
A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3 Variable costing income $ 116,000 $ 120,800 $ 123,950 Beginning finished goods inventory (units) 0 1,400 900 Ending finished goods inventory (units) 1,400 900 1,000 Fixed manufacturing overhead per unit $ 4.40 $ 4.40 $ 4.40 Compute income for each of the three years using absorption costing.
Answer:
Absorption costing income
Year 1: $122,160
Year 2: $118,600
Year 3: $124,390
Explanation:
As per given data
_________________________________ Year 1 ___ Year 2 ___Year 3
Variable costing income ____________ $116,000 __ $120,800 __$123,950
Beginning finished goods inventory (units) 0 _______ 1,400 _____ 900
Ending finished goods inventory (units) __ 1,400 ____ 900 ______ 1,000
Fixed manufacturing overhead per unit __ $4.40 ____ $4.40 ____ $4.40
Absorption costing income
_________________________________ Year 1 ___ Year 2 ___Year 3
Variable costing income ____________ $116,000 _ $120,800 __$123,950
Fixed OH in Beginning finished goods _ ($0) _____ ($6,160) ___ ($3,960)
Fixed OH in Ending finished goods ____ $6160 ___ $3,960 ___ $4,400
Absorption costing income __________ $122,160 _ $118,600 __ $124,390
The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal profit margin. The original cost of the inventory item is below the net realizable value less the normal profit margin.Under the lower of cost or market method, the inventory item should be valued at:___________
A. Net realizable value.
B. Net realizable value less the normal profit margin.
C. Original cost.
D. Replacement cost.
Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
Earnings available to common shareholders are divided by the average number of shares actually outstanding during the accounting period. Identify which of the reporting methods this statement describes:_______.
Answer: Earnings per share
Explanation:
There are no options but this should be the correct answer.
Earnings per share are calculated by dividing the earnings available to shareholders which is usually the Net income by the average number of share outstanding during the accounting period.
Earnings per share therefore shows how profitable a company is and how profitable it is to invest in a company with higher EPS ratios being more desired than lower.
Andrew sold a painting to Henry claiming it was an original Matisse. However, Andrew had recently bought the painting from an artist who specializes in reproducing original masters. When Henry showed the painting to an arts dealer, the dealer pointed out that it was a fake. Thus, Henry was a victim of _____.a. unconscionability.b. fraud.c. negligent mis-representation.d. slander.
Answer:
B) fraud
Explanation:
From the question, we are informed about Andrew who sold a painting to Henry claiming it was an original Matisse. However, Andrew had recently bought the painting from an artist who specializes in reproducing original masters. When Henry showed the painting to an arts dealer, the dealer pointed out that it was a fake. In this case Henry was a victim of fraud.
Fraud can be regarded as an intentional deception by someone or group of people to secure a personal or financial gain which is unlawful. It could be explained as criminal deception to deprive someone his/legal right. However, it is punishable under law.
Sullivan signs an employment agreement with Keller Construction. Two days after signing, Sullivan receives a job offer from Big Sky Construction for considerably more money. He explains the situation and asks to be released from the Keller contract. Keller agrees orally, provided Sullivan will help them find a replacement. Is this release valid?
Answer:
Yes,
Explanation:
Yes, in this scenario a verbal release would be valid and enforceable. In any scenario where a verbal agreement is made that includes exchanging two things of value automatically becomes valid and enforceable. In this case, Keller Construction is giving up the contract with Sullivan which is valuable to them in exchange for Sullivan's service in finding another suitable candidate that can provide similar value to the company. Therefore making it a proper exchange of value.
The following information was available for Swifty Corporation at December 31, 2022: beginning inventory $89000; ending inventory $128000; cost of goods sold $604000; and sales $992000. Swifty inventory turnover ratio in 2022 was:____.a. 9.2 times. b. 10.0 times. c. 6.0 times. d. 7.2 times.
Answer:
c. 6.0 times.
Explanation:
The computation of the inventory turnover ratio is shown below:
As we know that
Inventory turnover ratio is
= Cost of goods sold ÷ average inventory
= $604,000 ÷ ($89,000 + $128,000) ÷ 2
= $604,000 ÷ $108,500
= 5.57 times
= 6 times
Hence, the inventory turnover ratio of Swifty is 6.0 times
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Unlike other forms of persuasion, manipulation involves:_________
a. emotion a call to action.
b. rationales.
c. deductive reasoning.
d. deception.
Journalize each correcting entry discovered during August of the current year: Use page 15 of the journal. Transactions: Aug. 1 Discovered that a transaction for this expense was journalized and posted in error as a debit to Repairs Expense instead of Utilities Expense, $530.00, MG6. 5 Discovered that a cash investment by Vivian Lynum, owner, was joumalized and posted in error as a credit to Sales Instead of Vivian Lynum, Capital, $1.200.00 M67. GENERAL JOURNAL DATE ACCOUNT TITLE DOC. NO POST DEBIT CREDIT 1 Aug. 1 Utilities Expense M66 530.00 Repairs Expense 530.00 5 Sales M67 1.200.00 Vivian Lynum, Capital 1.200,00It was also discovered that two posting errors were made in the Supplies account. The July 6 entry amount should have been $160.00. The July 30 entry included a credit to the Supplies account for $140.00 that should have been a debit. Determine what amount should be entered in each lettered cell. (If a cell should have a zero balance, it should be left blank.)
Answer:
Journalizing correcting entries:
Aug. 1
Debit Utilities Expense $530
Credit Repairs Expense $530
To correct wrong posting.
Aug. 5:
Debit Sales Revenue $1,200
Credit Vivian Lynum, Capital $1,200
To correct wrong posting.
July 30:
Debit Supplies Account $280
Credit Suspense Account $280
To correct the wrong posting.
Explanation:
The July 6 entry is difficult to decide the correcting entry since the wrong amount was not given. There is nothing that can be done with the $160 supplied in the question.
The risk of employee opportunism, on behalf of agents, is exacerbated by the concept of:________
a. competitive advantage.
b. stakeholder analysis.
c. information asymmetry.
d. corporate governance.
Answer:
c. information asymmetry.
Explanation:
Information asymmetry also called Information failure, is a state of affairs wherever there is an imperfect information, this happens wherever one party has completely different information than the other party. It is also when the party possess greater economic transaction about than the other party. An example is concerning an automotive manufacturer and buyer, the owner is probably going to own full information regarding its service history and its chance to break-down than the buyer.
HOW DOES THIS AGENCIES PERFORM THEIR SERVICES?
Answer:
The agencies perform the services by hiring CEOs (or the ceos of the company) by assigning them jobs and then hiring people that meet the qualifications. Also, if they are at least 16 then they should have everything they need to work or volunteer.
Explanation:
According to F.A. Hayek, what is the fundamental economic problem facing society?
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?
Answer:Safety stock= 26 units
Explanation:
Annual demand = 1,000
Working days = 250 days per year
Demand per day = 1000/ 250 = 4 units per day
Lead Time demand = Lead time x Average sales per day
= 6 days lead time x 4 units per day = 24 units
reorder point= Lead time demand + Safety stpock
Safety stock = Reorder point - lead time demand
= 50 - 24 units
Safety stock= 26 units
Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department.
a. True
b. False
Answer:
a. True
Explanation:
Direct labor cost can be defined as the amount of money associated with paying of workers wages who are saddled with the responsibility of producing the goods and providing services.
Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department.
Gemco Inc. uses the retail inventory method and has the following information available concerning its most recent accounting period:_________. Cost Retail Sales $1,200,000 Purchases $677,400 1,229,800 Beginning inventory 148,600 245,200 What is Gemco's estimated cost of ending inventory?
Answer:
$10,000
Explanation:
Estimated cost of ending inventory is calculated as;
= Retail beginning inventory + Purchase - Ending inventory - Sales
Retail beginning inventory = $148,600
Sales = $1,200,000
Purchases = $1,299,800
Ending inventory = $245,200
Cost of ending inventory = $148,600 + $1,299,800 - $245,200 - $1,200,000
Cost of ending inventory =
Live Nation operates music venues, provides management services to music artists, and promotes more than 22,000 live music events annually. The company merged with Ticketmaster and acquired concert and festival promoters in the United States, Australia, and Great Britain. How has the company used horizontal mergers and acquisitions to strengthen its competitive position? Are these moves primarily offensive or defensive? Has either Live Nation or Ticketmaster achieved any type of advantage based on the timing of its strategic moves?
Answer:
This is a horizontal merger since both companies competed against each other in the past with similar products or services. As the number of firms decreases, competition between the remaining firms will become fierce.
This is an offensive move by Live Nation since its aim is to gain competitive advantages and market power. Competitive advantages resulting from this merger might be: higher market share, lower operating costs, synergy and efficiency.
If we look at it form Ticketmaster's point of view, this could be considered a defensive move. The main advantage achieved by Ticketmaster is less competition since Live Nation was the world's largest concert promoter.
Even though the merger happened during the great recession, 2009, the value of the new company has increased from a little over $800 million to almost $3 billion. That means that did something right. They were basically able to use resources more efficiently and gain even more market share. They are so large now, that some accuse them of being a monopoly.
In this case, the merger between Live National and Ticketmaster is a horizontal merger.
From the information given, it is a horizontal merger because it is a merger between the companies that are in the same or similar industry. In this case, there would be a strengthening of competitive position as there will be an increase in market share.
The merger is important as it will help reduce cost as well as increase efficiency. With this strategic move, Live Nation or Ticketmaster has allowed itself to gain a more competitive advantage. By creating a larger market share, the timing will make it harder for new entrants to gain entry into the market.
Learn more about merger on:
https://brainly.com/question/1977165
A car and a computer are examples of what?
Answer:
A car and a computer are both examples of secondary needs.
Explanation:
The functions of management can be performed best when a firm's ________ and culture are integrated.
A) finances
B) business model
C) profits
D) external environment
E) strategy
Answer: strategy
Explanation:
The functions of management can be performed best when a firm's strategy and culture are integrated.
A strategy has to do with the actions and the decisions that a particular organization or business will have to take in order for the organization to be able to accomplish its reach its goals, maximize profit and also be competitive.
Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 35 percent. The firm has $170,000 in outstanding debt at an interest rate of 7.9 percent, and its unlevered cost of capital is 12 percent. What is the value of the firm according to MM Proposition I with taxes?
Answer:
$400,750
Explanation:
Calculation for the value of the firm according to MM Proposition I with taxes
First step is to calculate the value of the unlevered firm using this formula
Value of the unlevered firm= EBIT(1 - Tax rate)/Unlevered cost of capital
Let plug in the formula
Value of the unlevered firm= ($63,000)(1 - 0.35)/0.12
Value of the unlevered firm=$63,000*0.65/0.12
Value of the unlevered firm=$40,950/0.12
Value of the unlevered firm= $341,250
Last step is to calculate the value of the levered firm using this formula
Value of the levered firm = Value of the unlevered firm+ (Tax rate*Outstanding debt)
Let plug in the formula
Value of the levered firm =$341,250 + 0.35($170,000)
Value of the levered firm=$341,250+59,500
Value of the levered firm = $400,750
Therefore the Value of the levered firm will be $400,750
Debbie has $223,188.4 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?
Answer:
6.20 years
Explanation:
Use Followingformula to calculate the time period to exhaust the fund
PV of Annuity = Annuity Payment X ( 1 - ( 1 + interest rate )^-n ) / interest rate
Where
PV of Annuity = $223,188.4
Annuity payment = $40,000
Interest rate = 3%
$223,188.4 = $40,000 X ( 1 - ( 1 + 3% )^-n ) / 3%
$223,188.4 / $40,000 = ( 1 - ( 1 + 3% )^-n ) / 3%
5.57971 = ( 1 - ( 1 + 3% )^-n ) / 3%
5.57971 X 3% = ( 1 - ( 1 + 3% )^-n )
0.1673913 = ( 1 - ( 1 + 3% )^-n )
1 / 1.03^n = 1 - 0.1673913
1 / 1.03^n = 0.8326087
1.03^n = 1 / 0.8326087
1.03^n = 1.2010
n log 1.03 = log 1.2010
n = log 1.2010 / log 1.03
n = 6.20 years
Intemet
Explorer
1.
is a system where related goods and integrated services are bundled together and
sold in the place of independent and isolated items.
Word 2013
Systems selling
Systems buying
Modified rebuy
Straight rebuy
Excel 2013
is a system where related goods and integrated services are bundled together and
sold in the place of independent and isolated items.
Word 2013
Systems selling
Systems buying
Modified rebuy
Straight rebuy
Excel 2013
Which of the following is not an economic system?
A.market
B.command
C.revisionist
D.mixed
Answer:
the answer is C
Explanation:
this is what I found listing:
-Pure Market Economy.
-Pure Command Economy.
-Traditional Economy.
-Mixed Economy
Answer:
The answer is C
Explanation: