Answer:
$225
Explanation:
What level of government is most closely associated with zoning?
a.local
b.interstate
c.federal
d.state
Doug works as the Heavy Haul Manager for Lone Star Transportation. He is currently working on a wind farm project and deciding which drivers of his team will work on the project and which field supervisors will work on communicating with GE who is building the wind farm. He is also assigning drivers certain sections of the wind turbines to ensure that the parts are delivered in the correct order for the project. Which of the following management functions is Doug undertaking?
A. Scrutinizing.
B. Planning.
C. Organizing.
D. Envisioning.
E. Controlling.
Answer:
C
Explanation:
What requires frequent safety and health inspections
Answer:
OSHA
Explanation:
Which of the following is an incorrect statement regarding values?
Values come from the interplay of ethics.
Values represent our understanding of the purposes we will fulfill by making particular decisions.
Values are positive abstractions.
D
Values are ideas that underlie conversations about business ethics.
E
Values capture our sense of what is good or desirable.
Answer:
" values are ideas that underlie conversations about business ethics " is the answer
Among the following, an incorrect statement regarding values is Values are ideas that underlie conversations about business ethics. Thus the correct option is D.
What are Values?Values are a person's personal ideas that guide their behavior. They act as norms for how individuals should behave. Our values are significant as they aid in the development of the future we desire.
Ethics and values interact because values are our understanding of the goals we hope to achieve by taking certain actions which help in decision-making.
Values reflect our perception of what is right or desirable. Values are moral concepts that reflect a person's sense of what is right and acceptable.
Therefore, option D Values are ideas that underlie conversations about business ethics is appropriate.
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If the government places a $2 tax per bag of potato chips on the producers, what would the consumers of potato chips observe? a. There would be no change in price and the consumer would not notice. b. The government would tax individuals who bought too many potato chips. c. Consumers would pay the full $2 tax in the form of a price increase. d. The price of potato chips would rise by some amount, but by less than $2.
Answer
d. the price of potato hips would rise by some amount
Explanation:
If the government places a $2 tax per bag of potato chips on the producers, then the price of potato chips would rise by some amount, but by less than $2. Option (d) is correct.
What do you mean by Tax?In order to pay for general government services, goods, and activities, local, state, and federal governments must collect mandated payments or charges from citizens and corporations.
While taxes cause deadweight loss, the exact amount depends on a number of factors. The ability of a provider to deliver the desired goods to the customer and the amount that a consumer is ready to spend on a product are two of the most crucial factors. This is an illustration of the economic principle of supply and demand.
The supply curve shows an upward tendency when the price of potatoes rises by $2 tax because more potatoes are supplied. If a non-price element changes, the supply curve shifts to the right.
Therefore, Option (d) is correct.
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A firm has the choice of investing in one of two projects. Both projects last one year. Project 1 requires an investment of $11,000 and yields $11,000 with a probability of 0.5 and $13,000 with a probability of 0.5. Project 2 also requires an investment of $11,000 and yields $5,000 with a probability of 0.5 and $20,000 with a probability of 0.5. The firm is capable of raising $10,000 of the investment required through a bond issue carrying an annual interest rate of 10 percent.
a. Assuming that the investors are concerned only about expected returns, which project would stockholders prefer? Why?
b. Which project would bondholders prefer? Why?
Answer:
a. Assuming that the investors are concerned only about expected returns, stockholders would prefer Project 2. It yields more returns with the high risk variability attached to the better yield of $20,000.
b. Bondholders would prefer Project 1. It yields good returns with moderate risk variability. Bondholders are generally risk-averse. They avoid risk wherever possible.
Explanation:
a) Data and Calculations:
Project 1 Project 2
Investment $11,000 $11,000
Expected Returns $12,000 $12,500
Bond issue = $10,000 with interest rate of 10%
Expected Returns for Project 1:
Yield Probability Expected Value
$11,000 0.5 $5,500
$13,000 0.5 $6,500
Total expected returns = $12,000
Expected Returns for Project 2:
Yield Probability Expected Value
$5,000 0.5 $2,500
$20,000 0.5 $10,000
Total expected returns $12,500
have you done something mean today lol what did you do
Answer:
lol I pushed my brother he was annoying me
Answer:
Umm no I didn't sorry
Explanation:
Urshela Company paid four months insurance on October 1, 2017 for $13,200. Urshela originally recorded the full insurance payment in the prepaid insurance account, Urshela operates on a calendar year basis. What adjusting journal entry would Urshela be required to make at 12/31 to properly recognize insurance expense for the year
999 trillion dollars in a year
The Marchetti Soup Company entered into the following transactions during the month of June:
a. purchased inventory on account for $160,000 (assume Marchetti uses a perpetual inventory system)
b. paid $43,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $126,000 to credit customers for $215,000
d. collected $195,000 in cash from credit customers.
e. paid suppliers of inventory $140,000.
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 $66,500, $46,000, and $25,000, respectively. (Enter the transaction number in the column next to the amount.) Prepare journal entries for each of the above transactions.
Answer and Explanation:
The journal entries are shown below:
a. Merchandise Inventory Dr $160,000
To Account payable $160,000
(Being inventory purchased on account)
b. Salaries expense Dr $43,000
To Cash $43,000
(Being salaries are paid in cash)
c. Account receivable Dr $215,000
To Service revenue $215,000
(being merchandise sold)
d. Cash Dr $195,000
To Account receivable $195,000
(being collection is recorded)
e. Supplies Dr $140,000
To cash $140,000
(being supplies paid in cash)
Uganda is a very poor country. Qatar is much smaller geographically and has far fewer people, but it is roughly 70 times richer in terms of per capita GDP. Supposing the following statements are true, which one might explain why Uganda is a little closer to Qatar in terms of standard of living than the official statistics suggest?
a. Health standards in Singapore exceed those in Haiti.
b. Singapore is much more livable in terms of pollution than Haiti.
c. There is more underground market activity in Singapore than in Haiti.
d. Haiti has more nonmarket production than Singapore.
Answer:
D. Haiti has more nonmarket production than Singapore.
Explanation:
Here is the full question :
ee Hint Haiti is a very poor country. Singapore is much smaller geographically and has far fewer people, but it is roughly 70 times richer in terms of per capita GDP. Supposing the following statements are true, which one might explain why Haiti is a little closer to Singapore in terms of standard of living than the official statistics suggest? Choose one: O A Health standards in Singapore exceed those in Haiti. O B. Singapore is much more livable in terms of pollution than Haiti. OC. There is more underground market activity in Singapore than in Haiti. O D. Haiti has more nonmarket production than Singapore.
Per capita GDP = GDP / population
If Haiti has more non market activities, the bulk of its economic activities would not be captured in the GDP. This would lead to Haiti having a smaller GDP than Singapore
Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay After-tax cash inflow from disposal of the asset after 5 years $10,000 Present value of an annuity of $i at 128for 5 years Present value of $1 at 128 in 5 years $50,000 3.605 0.567 WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years. What is the minimum amount of after-tax annual savings oncluding depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar)?
$13,889.
$12,297
$8,189.
$11,111
$15,678
Answer:
$12.297
Explanation:
From the given information:
The required amount for the after-tax annual savings to yield a return of 12% can be calculated as follows:
The Present value PV of future salvage value, after tax is:
= $10000 × 0.567
= $5670
From the original outlay of investment which is = $50000
The net amount to be recovered in terms of the present value = $50000 - $5670
= $44330
Finally, the required amount for the after-tax annual savings = [tex]\dfrac{\$44330}{3.605}[/tex]
= $12.297
A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 6% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal
Answer:
$55,758.47
Explanation:
Money which must be deposited to the fund at the end of year 0:
= 16000/1.06 + 14000/1.06^2 + 12000/1.06^3 + 10000/1.06^4 + 8000/1.06^5 + 6000/1.06^6
= 16000/1.06 + 14000/1.1236 + 12000/1.191016 + 10000/1.26247696 + 8000/1.33823 + 6000/1.41852
= 55758.4640346
= $55,758.47
Discuss whether the human capital and signaling models have different implications for each of the following education policies:
A. Providing financial aid to students for college.
B. Introducing a test that high school students could take to provide reliable measures of task commitment and capacity to work effectively in teams.
C. Increasing the age at which students can drop out of high school from 16 to 17.
Answer:
A. Providing financial aid to the students will have signaling effect for students and they will study with more concentration. The financial aid helps students to focus on their studies rather than financial problems.
Explanation:
B. Test will enable to analyze the capability of students and identify whether the students has interest in certain field of education. The students who score high in the test are selected to study in the college.
C. Increase in age will increase the human capital. More students will be able to join the college. Some students might have lapsed a year due to an injury or illness and they are now been able to join the college despite of their age.
To set up Instant Desposits, what must be done first?
Answer:
Open a new "deposit-only" bank account and link it to QuickBooks Online
Explanation:
To set up instant deposits, a QuickBooks payment account will be needed first. The debit card of the customer is used by the QuickBooks to deposit money into his or her checking account.
To begin, the customer signs into QuickBooks online. At the sales menu, the deposits tab is selected. The customer selects the Get Set Up option, enters his debit card details , a confirmation code and then verifies the newly set up account.
Beginning Ending Raw Material Inventory $6,000 $7,500 Work in Process Inventory 17,300 11,700 Finished Goods Inventory 21,000 16,300 The direct labor rate is $9.60 per hour and overhead for the month was $9,600. Refer to Wilson Company. Compute total manufacturing costs for June, if there were 1,500 direct labor hours and $21,000 of raw material was purchased.
Answer:
the Total manufacturing cost is $43,500
Explanation:
The computation of the total manufacturing cost is shown below:
Total manufacturing cost is
= raw material consumed + direct labor cost + overhead cost
= ($6,000 + $21,000 - $7,500) + $(1,500 ×$9.60) + $9,600
= $19,500 + $14,400 + $9,600
= $43,500
hence, the Total manufacturing cost is $43,500
Beginning raw materials inventory $ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000 All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:
Answer:
$58,600
Explanation:
Calculation for what Healey Company's direct materials used for the year is:
Using this formula
Direct materials used for the year=Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials
Let plug in the formula
Direct materials used for the year = $15,200 + $60,000 - $16,600
Direct materials used for the year= $58,600
Therefore Healey Company's direct materials used for the year is:$58,600
According to the circular-flow diagram GDP
For each separate case below, follow the 3-step process for adjusting the accrued expense account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.
a. Salaries Payable. At year-end, salaries expense of $18,500 has been incurred by the company, but is not yet paid to employees. Interest Payable. At its December 31 year-end, the company owes $400 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
b. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,025 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $875 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
a. Salaries Expense (Dr.) $18,500
Salaries Payable (Cr.) $18,500
b. Interest Expense (Dr.) $85
Interest Payable (Cr.) $85
c. Interest Expense (Dr.) $75
Interest Payable (Cr.) $75
Explanation:
The adjusting entries are made at the month or year end to adjust the transactions that were recorded. The adjustment is usually made for the transaction whose impact is changed at the month end. For the given case the interest amount recorded was for the annual but for monthly recording the interest expense will be divided by 12.
Decorative Concrete produces a concrete overlay for residential and commercial concrete flooring. Customers have complained that one of the products results in excessive cracking. The likelihood the company will incur a loss on this product is probable and the amount of the loss is estimated to be somewhere between $1.1 and $4 million.
1. Should this contingent liability be reported, disclosed in a note only, or both? To be reported To be disclosed Both2. What loss, if any, should Decorative Concrete report in its income statement?3. What liability, if any should Decorative Concrete report in its balance sheet?4. What entry, if any should be recorded in the journal?
Answer:
Decorative Concrete
1. This contingent liability should be disclosed in a note only.
2. Decorative Concrete should not report any loss in its income statement, yet.
3. Decorative Concrete should not report any liability in its balance sheet, yet.
4. No entry should be recorded in the journal.
Explanation:
a) Data and Calculations:
Estimated loss = $1.1 and $4 million
Loss is probable but the loss cannot be reasonably estimated
b) Decorative Concrete cannot reasonably estimate the loss that may arise from the contingent liability. Therefore, it should only disclose the future event in a note to the financial statements. Accounting rules specify that Decorative Concrete should record this event as a contingent liability in its accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. At that time, a specific amount of loss will be recorded (debit) and a specific liability established (credit) in advance of the settlement. In this Decorative's case, only one condition is met.
You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 9%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the loan's EFF%? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
1. $360.51
2. 9.38%
Explanation:
1. Calculation for What is the monthly loan payment
Based on the information given we would be
Using TVM financial calculator to find the monthly loan payment
PMT = [PV = $20,000, FV = 0, N = 72 months, I = 0.09/12]
PMT = $360.51
Therefore the monthly loan payment will be $360.51
2. Calculation for the loan's EFF%
EFF%= (1 + 0.09/12)^12 - 1
EFF% = 9.38%
Therefore the loan's EFF% will be 9.38%
Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace: exporting, licensing, franchising, joint venture, and direct investment.
a. True
b. False
Answer:
True.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world.
Also, the United Nations is an intergovernmental organization that is set to foster security, unity, and peace among its member nations across the world.
Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace and these includes;
I. Exporting: this involves the movement of goods and services from a particular country to other foreign countries.
II. Licensing: this involves a company granting another company the legitimate rights to produce its goods and services.
III. Franchising: it is a licensed business relationship consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
IV. Joint venture: it involves two or more businesses coming together to provide goods and services to customers.
V. Direct investment: it is an investment made by an individual or business entity (investor) into an investment market (industry) located in another country.
Wang Company has established the following overhead cost pools and cost drivers for the month of May: Cost Pool Overhead Costs Cost Driver Levels Purchase orders $ 30,000 50 orders Machine setups 50,000 100 setups Electricity 10,000 10,000 kilowatt hours The following information pertains to the actual consumption of activity resources for two sample jobs completed during May. Job M1 Job M2 Number of units produced 500 1,000 Number of purchase orders 15 10 Number of setups 20 10 Number of kilowatt hours 500 1,000 What is the activity-based overhead rate per purchase ord
Answer:
Purchase order activity rate= $600 per order
Explanation:
Giving the following information:
Cost Pool Overhead Costs Cost Driver Levels
Purchase orders $ 30,000 50 orders
To calculate the activity rate for Purchase orders, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Purchase order activity rate= 30,000 / 50
Purchase order activity rate= $600 per order
For each of the following transactions, indicate whether it represents an increase in the U.S. gross domestic product (GDP), and, if so, state whether it represents U.S. consumption, investment, government purchases of goods or services, or net exports. If the transaction does not change U.S. GDP explain why not?
a. Ms. Scott buys a used Honda Accordfrom her friend Danielle for $7,500.
b. You spent $12,500 on college tuition this year.
c. Pizza Hut buys 100 pounds of cheese from Wisconsin to make pizzas.
d. Mr. Luong is a Chinese citizen who works as a Chemistry teaching assistant at UC Mercedandearns $16,000 a year in salary.
e. A candy store buys $500 worth of chocolates made in Belgium.
f. Boeing produces 5 airplanes but are unable to sell them.
Answer:
a. No change in GDP.
There will be no change in GDP resulting from this transaction. Resales are considered double counting because the good had already been paid for before and so will inflate GDP.
b. GDP increase by $12,500. U.S. Consumption.
This is a consumption transaction as money is being spent to satisfy the need for education. It will therefore increase GDP by $12,500.
c. No change in GDP.
Intermediate goods to be used in production are not included in GDP to avoid double counting. Only the final value of goods and services are included. This is an intermediate good and so will not be included.
d. Increase in GDP $16,000. Government purchase of goods or services.
Mr. Luong works in a Public University which means that his salary is paid for by the government. This will increase GDP by $16,000 as it represents money spent by Government.
e. Decrease in GDP $500. Net Exports.
As this good was bought from outside the country, it is an import. Imports reduce a country's GDP because they reduce the Net exports. GDP will therefore reduce by $500.
f. Increase in GDP by plane value. Investment.
So long as the goods have already been produced in their final form, they will be part of GDP. They will increase GDP by their value and are a part of Investment.
What is travel arrangement management?
Answer:
Explanation:
Corporate business travel management manages all aspects of the travel arrangements for an organization's employees. Contracts with airlines, hotel chains, rental car companies, and other business travel management services are arranged by corporate travel management services.
Answer:
Travel management is a specialism, which is based around organising corporate travel, tracking your various travel expenses and devising a comprehensive travel strategy. As a discipline, it is intended to help businesses and their employees to optimise the way they deal with their travel needs.
Explanation:
Suppose that in order to prevent loss of revenue due to used product markets, smartphone providers successfully lobby the government to make it illegal to buy or sell used smartphones. In effect, this limits consumers' property rights over their smartphones. Assuming that black markets do not exist and new phones are more expensive than used phones, which of the following statements is true?
a. There is no loss of mutually beneficial transactions since all consumers who would have bought a used phone can now simply purchase a new phone for the same price as a used one.
b. The equilibrium price and quantity of used phones will increase.
c. The equilibrium price and quantity of used phones will remain the same.
d. There is a loss of mutually beneficial transactions in the economy since some consumers would be willing and able to buy used smartphones and some would be willing and able to sell their used phones. Now, everyone must purchase news phones from providers.
Answer:
d.
Explanation:
You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Jan.
17 Sales 9,600.00
2 Bad Debt Expense 9,600.00
3 17 Bad Debt Expense 9,600.00
4 Accounts Receivable-
CJ’s Sports Corp. 9,600.00
5 21 Cash 10,700.00
6 Bad Debt Expense 2,200.00
7 Accounts Receivable-Four
Seasons Sportswear Co. 12,900.00
8 Feb.
15 Accounts Receivable-Healthy
Running Inc. 3,000.00
9 Bad Debt Expense 500.00
10 Sales 3,500.00
11 Mar.
4 Accounts Receivable-Four
Seasons Sportswear Co. 2,200.00
12 Bad Debt Expense 2,200.00
13 4 Cash 2,200.00
14 Bad Debt Expense 2,200.00
15 13 Cash 5,540.00
16 Accounts Receivable-
Barb’s Best Gear 5,540.00
17 31 Bad Debt Expense 20,970.00
18 Accounts Receivable-
Healthy Running Inc. 5,150.00
19 Accounts Receivable-
The Locker Room 4,100.00
20 Accounts Receivable-
CJ’s Sports Corp. 2,780.00
21 Accounts Receivable-
Get Your Gear Inc. 7,050.00
22 Accounts Receivable-
Ready-2-Go 1,890.00
CHART OF ACCOUNTS
Fan-Tastic Sports Gear Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Healthy Running Inc.
122 Accounts Receivable-The Locker Room
123 Accounts Receivable-CJ’s Sports Corp.
124 Accounts Receivable-Get Your Gear Inc.
125 Accounts Receivable-Four Seasons Sportswear Co.
126 Accounts Receivable-Ready-2-Go
127 Accounts Receivable-Barb’s Best Gear
132 Notes Receivable-Fast Feet Co.
136 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
191 Store Equipment
192 Accumulated Depreciation-Store Equipment
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
212 Unearned Rent
213 Customer Refunds Payable
215 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Rent Revenue
612 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Misc. Administrative Expense
710 Interest Expense
1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes.
2. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7.
3. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8.
Answer:
Accounts Receivable (Dr.) $9,600
Sales (Cr.) $9,600
Bad debt expense (Dr.) $500
Accounts Receivable (Cr.) $500
Bad Debt Expense (Dr.) $2,200
Accounts Receivable (Cr.) $2,200
Notes Receivable - Fast Feet (Dr.) $3,600
Sales (Cr.) $3,600
Explanation:
Fan-Tastic Sports Gear Inc., has incurred business transactions. It has recorded sales to Sportswear Co on accounts. The money is not received and the accounts receivable are offset by recording bad debt expense.
Liability Insurance Company writes a substantial amount of commercial liability insurance. A large construction company requests $100 million of liability insurance to cover its business operations. Liability Insurance has a reinsurance contract with Bermuda Re that enables the coverage to be written immediately. Under the terms of the contract, Liability Insurance pays 25 percent of the losses and retains 25 percent of the premium. Bermuda Re pays 75 percent of the losses and receives 75 percent of the premium, less a ceding commission that is paid to Liability Insurance. Based on the preceding,
A. What type of re-insurance contract best describes the re-insurance arrangement that Liability Insurance has with Bermuda Re?
B. If a $50 million covered loss occurs, how much will Bermuda Re have to pay? Explain.
C. Why does Bermuda Re pay a ceding commission to Liability Insurance?
Answer:
Following are the solution to the given points:
Explanation:
For point A:
Its reinsurance scheme which Liability Coverage through Bermuda Re better defines. In this form, primary insurers and reinsurers decide, based on percentage or allocation, to divide the profits and losses.
For point B:
Bermuda Re is paying 75% of the losses. When a protected loss of $50 million comes in Bermuda Re was indeed paying =75% of 50 million = 37.5 million.
For point C:
Bermuda Recharges a responsibility insurance ceding commission and covers the costs sustained in the business through writing.
On January 1, 2021, Bishop Company issued 6% bonds dated January 1, 2021, with a face amount of $33 million. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31.
Required:
a. Determine the price of the bonds at January 1, 2021.
b. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2021.
c. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method.
d. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method.
Answer:
a. Determine the price of the bonds at January 1, 2021.
market price:
PV of face value = $33,000,000 / 1.04²⁰ = $15,060,769
PV of coupon payments = $990,000 x 13.590 (PV annuity factor, 4%, 20 periods) = $13,454,100
market price = $28,514,869
b. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2021.
Dr Cash 28,514,869
Dr Discount on bonds payable 4,485,131
Cr Bonds payable 33,000,000
c. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method.
amortization of bond discount = ($28,514,869 x 4%) - $990,000 = $150,595
Dr Interest expense 1,140,595
Cr Cash 990,000
Cr Discount on bonds payable 150,595
d. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method.
amortization of bond discount = ($28,665,464 x 4%) - $990,000 = $156,619
Dr Interest expense 1,146,619
Cr Cash 990,000
Cr Discount on bonds payable 156,619
Use each of these key terms to best complete the following sentences. Use each term no more than once. Agreeableness
1. Neuroticism
2. Extraversion
3. Conscientiousness
4. Openness
5. Machiavellianism
6. Authoritarianism
a. Ted is willing to listen to new ideas and to change his beliefs and attitudes in response to new information. Ted is likely high in this personality trait.
b. Eduardo tends to be insecure and often has mood swings at work that make his coworkers uncomfortable. Eduardo is likely to be high in this personality trait.
c. Aidan is often late with projects and seems disorganized. He is likely low in this personality trait
d. Betty is sociable, talkative, and one of the first employees to welcome a new hire and offer to show him or her around. Betty is likely high in this personality trait.
Answer:
4
1
3
2
Explanation:
The big 5 personality traits include
Openness - it includes people who are open to new things and enjoy learning new things.
Ted is high on this trait
Extraversion - it includes people who enjoy meeting new people and are very sociable.
Betty is high on this trait
Conscientiousness - includes people that are organised and pay attention to details. Aiden is low on this trait
Agreeableness - includes people that trust people easily and are kind
Neuroticism - includes people that are usually moody or sad
Assume an investor acquired 100% of the voting common stock of an investee on January 1, 2012 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercompany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2019
Income Statement Investor Investee
Revenues $2,232,000 $307,200
Income from Investee 141,600 0
Expenses (1,800,000) (156,000)
Consolidated net income 573,600 151 ,200
NCI - -
Net income $573,600 $151,200
Statement of Retained Earnings
Retained earnings, January 1 $720,000 $36,000
Net income 573,600 151 ,200
Dividends declared 60,000 36,000
Retained earnings, December 31 $1,233,600 $151,200
Balance Sheet
Investment in Investee $283,200 $0
All other assets 4,598,400 384,000
Total assets $4,881,600 $384,000
Liabilities $2,880,000 $128,000
Common stock and additional paid-in capital 768,000 84,000
Retained earnings 1,233,600 151 ,200
Total liabilities and equity $4,881,600 $384,000
What amount of "expenses" will appear in the consolidated income statement for the year ending December 31, 2019?
a. $1,800,000
b. $1,956,000
c. $1,975,200
d. $1,965,600
Answer:
d. $1,965,600
Explanation:
The computation of the amount of expense appear in the consolidated income statement is as follows:
= Investor + investee + expenses related to purchase
= $1,800,000 + $156,000 + ($151,200 - $141,600)
= $1,800,000 + $156,000 + $9,600
= $1,965,600
hence, the d option is correct