Answer:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
Explanation:
Preparation of What adjusting Journal entry should the company make at the end of the current year to record its estimated bad debts expense
Based on the information given the adjusting Journal entry that the company should make at the end of the current year to record its estimated bad debts expense will be:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
(Net Sales 2,200,000*Estimated 2.0% of net sales)
(Being to record estimated bad debts expense)
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $35 per share and the building's book value on the books of the seller was $250,000. Which of the following journal entries is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for the building?A. Building Db 270,000 Cash Cr 20,000 Common stock Cr 100,000 Additional paid-in capital Cr 150,000 B. Building Db 370,000 Cash Cr 20,000 Common stock Cr 350,000 C. Building Db 370,000 Cash Cr 20,000
Answer:
Smith Company
The correct journal entries for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for the building is:
A. Building Db 270,000
Cash Cr 20,000
Common stock Cr 100,000
Additional paid-in capital Cr 150,000
Explanation:
a) Data and Calculations:
Market price of stock = $35 per share
Building's book value = $250,000
Issue of 10,000 shares of $10 par value:
Common Stock $100,000 (10,000 * $10)
Additional paid-in capital $250,000 (at market price)
Cash $20,000
b) While the market price is $35 per share, the price at which the assets were exchanged will be reduced to $25 per share, since there was no receipt of cash from the seller of the building.
Private investment during a year includes Group of answer choices spending on plant and equipment plus capital formation the value of inventories plus the values of stocks and bonds spending on plant and equipment plus government spending plus household spending on stocks and bonds stocks and bonds purchased by firms spending on plant and equipment, new housing construction, and changes in inventories
Answer:
spending on plant and equipment, new housing construction, and changes in inventories
Explanation:
A private investment can be defined as funds used by business firms to purchase capital assets such as plants and equipments, new office building and inventories required for the smooth running of the business and are typically expected to generate revenues in the future (cash-flow) and appreciate in value.
Private investment during a year includes spending on plant and equipment, new housing construction, and changes in inventories.
Some business owners may decide to make more investment in their business on an annual (yearly) basis or perennially depending on the type of business and their level of capital expenditure.
A hypothetical futures contract on a nondividend-paying stock with a current spot price of $60 has a maturity of 1 year. If the T-bill rate is 5%, what should the futures price be
Answer:
$63
Explanation:
Calculation for what should the futures price be
Using this formula
Future price=Current spot price (1 + r)
Let plug in the formula
Future price= $60*(1+0.05)
Future price= $60* (1.05)
Future price= $63
Therefore what should the futures price be is $63
Information $6,000 coffee equipment - 5 year expected useful life (it depreciates 1/60 every month) Adjusting entries for the month end for a $6,000 coffee equipment. What is the entry for depreciate expense?
a. $60 depreciate expense - debit
b. $60 depreciate expense - credit
c. $100 depreciate expense - debit
e. $100 depreciate expense - credit
Answer:
c. $100 depreciate expense - debit
Explanation:
Depreciation Expenses Per Month = 1/60*6000
Depreciation Expenses Per Month = $100/month
Adjustment Entry
Account Title Debit Credit
Depreciation expenses $100
Accumulated Depreciation $100
Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer to live with rich people and are willing to pay a premium for living with a fraction of rich people that is larger than 50%. Poor people’s premium curve is given as �!""# = 2�$, where x is the percentage of rich above 50% (e.g., if there are 52% rich, x will be 2). Rich people’s premium curve is given by �%&'( = 60� − 0.4�$. a) What is the equilibrium outcome (i.e., what is the share of rich and poor people, respectively). Explain.
Answer:give me Brainliest
Explanation:
Supervisor: "He is going to rue missing today's training session." Why would he need to make up for missing today's training session? Why would he be mad about missing today's training session? Why would he regret missing today's training session? Why would he love missing today's training session? Why would he try missing today's training session?
Answer:
He would need to make up for missing today's training session because it is going to be a very important session that will help him a lot to improve his skills.
He would be mad about missing it because he would lose that valuable opportunity to improve his skills, as well as because he would have to make up for missing it.
He would regret missing the session for the same reason.
He tried missing today's session because he had other things on mind, more pressing tasks, the session is valuable but boring, etc.
The reason he would regret missing today's training session since it will be a crucial session that will greatly assist him in improving his talents.
What are training sessions?Training programs are seen as an important aspect of human resource development. It's a well-organized instrument for bringing certain abilities up to the target level using knowledge, training, coaching, and practice.
Thus, The reason he regret missing today's training session is the right as the training program is significant for him.
Learn more about training sessions here:
https://brainly.com/question/880788
The Baldwin Company currently has the following balances on their balance sheet: Total Assets $256,555 Total Liabilities $149,320 Retained Earnings $49,793 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
Answer: $80,242
Explanation:
Common stock = Assets - Liabilities - Retained earnings
Assets next year = 256,555 + 55,000
= $311,555
Liabilities remain unchanged.
Retained earnings
= Opening retained earnings + Net income - dividends
= 49,793 + 44,200 - 12,000
= $81,993
Common stock next year;
= 311,555 - 149,320 - 81,993
= $80,242
Morgan Handley and Tricia Holbrook are discussing the new leasing standard. Morgan believes the standard requires that the lessee use the implicit rate of the lessor in computing the present value of its lease liability. Tricia is not sure if Morgan is correct. Explain the discount rate that the lessee should use to compute its lease liability.
Answer:
The description according to the circumstance has been presented in the paragraph following.
Explanation:
The lessee may necessitate a rate throughout determining the present value about individuals depreciation expense. The lessee would be expected that calculate his or her contingent liability by considering the implied rate throughout the lease unless that amount is conveniently calculated and whether the implied rate isn't appropriate, the lessee may be using the cumulative borrowing costs. The implied frequency including its lease would be the purchase price of the ongoing loan repayments, any asset-backed cost of its asset, or some additional financial labor including its lender.The leaseholder may be using the implied rate that measures his lease liability whether it is immediately calculated and whether the implicit value is not understood to them, he will be using the proportional money supply.
A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an annual carrying cost of 39 percent of the purchase price per crate. Ordering costs are $27. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ
Answer:
$1,498.86
Explanation:
Given that;
Packing of crates per month(u) = 779
Annual carrying cost of 39% of the purchase price per crate
Ordering cost (S) = $27
D = 779 × 12 = $9,348 crates per year
H = 0.39P
H = 0.39 × $12
H = $4.68 crates per year
Total ordering cost = D/Q × S
= ( $9,348 / 779 ) × $27
= $324
Total Holding cost = Q / 2 × H
= ( 779 / 2 ) × $4.68
= $1,822.86
Annual savings = Total holding cost - Total ordering cost
= $1,822.86 - $324
= $1,498.86
The firm would be saving $1,498.86 annually.
You are bullish on Telecom stock. The current market price is $48 per share, and you have $9,600 of your own to invest. You borrow an additional $9,600 from your broker at an interest rate of 3.0% per year and invest $19,200 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 5% during the next year
Answer: 7%
Explanation:
The following can be deduced.from the question:
Loan amount = $9,600
Equity = $9,600
Market price = $48 per share
Total investment = $19,200
Growth of Investment = 5%.
We then calculate value of the investment in a year. This.will be:
= 19,200 × 1.05
= $20,160
Interest on the loan would be:
= $9,600 * 0.03
= $288
Therefore, rate of return will be:
= (20,160 - 9,600 - 288)/9,600 - 1
= 0.07 = 7%
True or false: Customers rely on the internet for many reasons, including product research, purchases, bill payments, and social networking, but they rarely use it to communicate questions and concerns to CSWs.
Answer:
True
Explanation:
Without internet we couldn't do what we do today in our jobs. We rely on the internet for many reasons. Hope this helps:)!
Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina Group of answer choices delivers the key to Harry. checks her suitcase. all of the choices. boards the plane.
Answer:
A bailment is created when Gina:
delivers the key to Harry.
Explanation:
Bailment refers to the temporary handing over of the physical possession of a property by the bailor to another person, called the bailee. As an agreement, it establishes a contractual relationship between the bailor and the bailee over the bailed property without the transfer of ownership. It may be for the mutual benefit of both parties or for the exclusive benefit of either party.
What is the most likely explanation for a +20.0% return on a stock with a beta of 1.0 in a month when the market returned +10.0%?
a. The stock is aggressive.
b. The market is undervalued.
c. Favorable firm-specific news was reported.
d. The beta is really less than 1.0.
Answer:
c. Favorable firm-specific news was reported.
Explanation:
Some specific event must have affected the stock's price. E.g. Blackberry and Amazon announced a few days that they would work together and that immediately made Blackberry's stock increase 50% in one single day. These types of events are isolated and do not affect the market as a whole, e.g. Amazon's stock was not affected.
Exercise 183 Wayne Company reported net income of $265,000 for 2020. Wayne also reported depreciation expense of $45,000 and a loss of $8,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $6,000 decrease in prepaid expenses.Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.
Answer:
Net cash flow of the operating activities is $356,000
Explanation:
Wayne Company
Partial statement of Cash flow
For the year Ended December 31, 2021
Cash flow from operating activities:
Net Income $265,000
Adjustment to reconcile net income to net
cash provided by operating activities
Depreciation expenses $45,000
Loss on sale of equipment $8,000
Decrease in accounts receivable $15,000
Decrease in prepaid expenses $6,000
Increase in accounts payable $17,000 $91,000
Net cash provided by operating activities $356,000
Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,200, and its ending inventory on December 31 was understated by $15,400. In addition, a purchase of merchandise costing $21,400 was incorrectly recorded as a $2,140 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:
Answer:
the cost of goods sold is $34,460 understated
Explanation:
The computation of the cost of goods sold is shown below
Let us assume the cost of goods sold be X - Y
X + $30,200 + ($21,400 - $2,140) = Y + $15,400
X + $49,460 = Y + $15,000
X - Y = $49,460 - $15,000
X - Y = $34,460
Hence, the cost of goods is $34,460
Since both the ending and opening inventory are understated so the cost of goods sold is also understated
Therefore the cost of goods sold is $34,460 understated
A telephone company is considering building a new automated switching distribution substation with a useful life of 20 years to support new suburban developments. The substation is located in a state in which the combined tax rate is 40%, and the telephone company uses a 15% real interest MARR to assess capital investment projects. Estimated real dollar revenues and costs are as follows:Category Amount Building initial cost $1,157,000 Building salvage cost $250,000 Equipment initial cost $775,000 Equipment cost year 2 $150,000 Equipment salvage value $36,500 Annual revenues $650,000 year 1Revenue arithmetic gradient $20,000 year 2 to 5Annual revenues $750,000 year 6 to 20Annual operating expenses $185,000 first 10 years $230,000 year 11 to 15 $275,000 year 16 to 20The substation will be put into service on the first day of the telephone company’s fiscal year. Using MACRS depreciation, what will be the telephone company’s after tax equivalent uniform annual worth for the substation?
Answer: you jhuu uhuh nbu
Explanation:
A machine costing $91,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $5,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.
Answer:
(a) straight-line
deprecation expense per year = ($91,800 - $5,400) / 3 years = $86,400 / 3 years = $28,800 per year
(b) double-declining balance
depreciation expense year 1 = 2 x 1/3 x $91,800 = $61,200
depreciation expense year 2 = 2 x 1/3 x $30,600 = $20,400
depreciation expense year 3 = $20,400 - $5,400 = $15,000
Uniform Supply accepted a $8,400, 90-day, 8% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid
Answer:
Cash $8,568, credit Interest Revenue $28, credt Interest Receivable $140, credit Notes Receivable $8.400
Explanation:
The journal entry in the case when the note is paid is as follows:
Cash $8,568
To Interest revenue $28 ($8,400 × 8% × 15 ÷ 360)
To Interest receivable $140 ($8,400 × 8% × 75 ÷ 360)
To Notes receivable $8,400
(To record the note receivable)
Here the cash is debited as it increased the assets while on the other hand the interest revenue, interest receivable and note receivable is credited as it increased the revenue and decreased the assets
A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half of its selling price
Answer:
n= 6.11 years
Explanation:
Giving the following information:
Present value= $40,000
Future value= $20,000
Decrease rate= 0.12
To calculate the number of years for the car to reach a value of $20,000; we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(20,000/40,000) / ln(1.12)
n= 6.11 years
(a) Based on the information provided, describe the ways in which Volkswagen did not fulfill the requirements of effective corporate governance.
(b) In what ways did the Board of Directors sidestep its obligations to protect shareholder interests?
(c) How could Volkswagen better select its Board of Directors to avoid mistakes such as the emissions
scandal in 2015?
Answer:
I believe Volkswagen did not fulfill the requirements of effective corporate governance mainly because the board didn’t have enough independent directors present.
The essential driver is the nonappearance of a solid gathering of independent directors. In view of German Corporate law, administration is given by a Management Board and a Supervisory Board, with representatives making up half of the Supervisory Board. This ought to have took into consideration in any event half of the Supervisory Board to be completely independent. While remaining inside the 'letter of the law,' they evaded the 'spirit of the law' by cycling recent former senior executives through the Supervisory Board Chairmanship position and other board positions. This had the impact of expelling genuinely independent oversight.
To select the next board members and avoid any future issues Volkswagen can keep in mind the following things about the board that it is :
Is well informed about the company’s performance.
Guides and judges the CEO and other top executives.
Has the courage to curb management actions the board believes are inappropriate or unduly risky.
Certifies to shareholders that the CEO is doing what the board expects.
Provides insight and advice to management.
Is intensely involved in debating the pros and cons of key decisions and actions
Explanation:
Inventory is often reported as a miscellaneous expense on the income statement. reported as a current asset on the balance sheet. generally valued at the price for which the goods can be sold. reported under the classification of Property, Plant, and Equipment on the balance sheet.
Answer:
reported as a current asset on the balance sheet.
Explanation:
According to US GAAP, inventory must be reported at lower of cost or market value. ⇒ Therefore, "generally valued at the price for which the goods can be sold." is wrong.
Inventory is included under current assets since it is considered relatively liquid. ⇒ Therefore, "reported under the classification of Property, Plant, and Equipment on the balance sheet." is wrong.
Inventory is not an expense, cost of goods sold is an expense account. ⇒ Therefore, "reported as a miscellaneous expense on the income statement." is wrong.
What is the best source of information to use when purchasing a new car?
O Social media posts
O Car salesman on the lot
O Advertisement in a car magazine
O Unpaid reviews on reputable car sites
Option D. Unpaid reviews on reputable car sites
What sources of information do you have about cars?Awards and rankings. There are many awards and many websites publish rankings of vehicles in different categories.
NHTSA or IIHS. These two organizations evaluate the safety of new cars.
Government website.
Understanding how a car works can help you drive more safely, reduce the risk of accidents, and extend the life of your car. For example, if you know how brakes wear over time, you can identify signs of wear early and replace them before increasing the risk of brake failure.
Learn more about purchasing at
https://brainly.com/question/5168855
#SPJ2
Beth, an American citizen, travels to Italy on vacation and buys an espresso machine to bring home. Her purchase increases:_____
a. Italy's GDP
b. Italy's GDP and U.S. GDP, since Beth spent dollars buying the machine.
c. U.S. GDP since she will have the machine with her at home in the U.S.
d. Neither U.S. nor Italy's GDP, since the product was bought in one country and used in another.
Answer:
Italy's GDP
Explanation:
Gross Domestic Product (GDP) is defined as the market value of all final goods and services produced in a country during a period of time e.g one year. It help analyze the quality of life - living standards and measure economic growth. Traveling to another country and purchasing thetheirur product or product there is increasing that country's GDP.
Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?
Answer:
The amount of the $1 tax that is paid by sellers is $0.40.
Explanation:
The amount of tax paid by the sellers can be calculated using the following 2 steps:
Step 1: Calculation of the tax burden of the seller
This can be calculated using the following formula:
Tax burden of the seller = Elasticity of demand / (Elasticity of demand + Elasticity of supply) ............... (1)
Where;
Tax burden of the seller = ?
Elasticity of demand = 2
Elasticity of supply = 3
Substituting the values into equation (1), we have:
Tax burden of the seller = 2 / (2 + 3) = 2 / 5 = 0.40, or 40%
Step 2: Calculation of the amount of the $1 tax that is paid by sellers
This can be calculated using the following formula:
Tax paid by the sellers = Tax amount * Tax burden of the seller .................. (2)
Where;
Tax amount = $1
Tax burden of the seller = 40%
Substituting the values into equation (2), we have:
Tax paid by the sellers = $1 * 40% = $0.40
Therefore, the amount of the $1 tax that is paid by sellers is $0.40.
Additional note:
The answer above clearly demonstrates what obtains in economics that when supply is more elastic than demand, sellers will bear less of the tax burden, and when demand is more elastic than supply, sellers will bear more of the tax burden.
From the question, the fact that the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value) indicates that supply is more elastic than demand. This makes the sellers to bear only 40% of the tax burden while the buyers bear the remaining 60%.
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is Group of answer choices a quota. a dumping duty. an antidumping duty. a tariff.
Answer:
a quota
Explanation:
The quota is the type of the restriction made in the trade where the physical limit is set on the quantity of the products or goods that could be imported in a country under a prescribed period of time. It benefits the producers of goods
Therefore as per the given situation, since the Japan government sets a limit for the rice amount that can be imported from the United states so this represents the quota
Therefore the first option is correct
Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for both Todd and Jorge to avoid this risk would be to organize their firm as a(n):
Answer:
corporation
Explanation:
From the question, we are informed about Todd and Jorge who have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. N this case, One way for both Todd and Jorge to avoid this risk would be to organize their firm as corporation. Corporation can be regarded as legal entity which could be set up by shareholder or individuals so that profit can be made. It gives room for contracts entering, remition of taxes by federal and state, own asset , ability to sue and be sued.
In 2013, the IRS published a famous study that showed that the top 10 percent of households that earned the most money paid 70 percent of all federal taxes. The top 25 percent of households paid 87 percent of all federal taxes. Meanwhile, the entire bottom 50 percent of households only paid 3 percent of all federal taxes. It also showed that the bottom 50 percent of households received about half of all the taxes paid by the top 50 percent of households in the form of financial assistance such as college grants, food stamps, Section 8 housing subsidies, and other entitlement programs. What can we conclude
Solution :
From the context provided in the question, we can conclude that :
1. The study shows that there is a major redistribution of the wealth from a lead earning United States's households to the bottom half of the United States's household as it shows the top earners in the US pay more taxes that are distributed among the poor.
2. It will be a normative economic statement if someone says that it is not fair if the wealthy rich people are not paying more taxes. It makes a value judgement.
3. There are statistical studies hat are performed and then we say these findings are based on the positive economics.
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whether the demand curve or the supply curve increases by dragging the item to the appropriate category.
Answer:
see below
From online search the situations as a below:
a. The government gives consumers a subsidy to buy hybrid cars.
b. More automobile producers start producing hybrids.
c. The price of non-hybrid cars falls.
d. The price of batteries for hybrid cars rises.
e. Gasoline prices rise.
Explanation:
A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.
b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.
c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.
d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.
Both the demand and curve curves will not increase.
e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.
George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents per unit. George sold the contract at 278. What is George's return on invested capital
Answer:
-203.4%
Explanation:
Initial investment = 2,500*349*10%
Initial investment = 87,250
Return = (278 - 349) * 2,500 unit
Return = -71 * 2,500 unit
Return = -177,500
Return on invested capital = Return / Initial investment
Return on invested capital = -177,500/87,250
Return on invested capital = 2.034383954154728
Return on invested capital = -203.4%
Depreciation--Jerry Company purchased machinery for $315,000 on May 1,2020 . It is estimated that it will have an useful life of 5 years, and a salvage value of $15,000. the machine is expected to last 100,000 hours. The machine was used for 25,000 hours the first year. What is the depreciation for the first year assuming working hours method (activity method) is expected to be used
Answer:
The depreciation for the first year is $75,000
Explanation:
In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.
First, we need to calculate the Depreciable value
Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000
Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000