A contract in which one party promises to pay for goods or services in exchange for a product or service from another party is known as a "sale of goods contract".
This type of contract is commonly used in situations such as Candy's, where the bidder is the buyer and the seller is the party providing the goods.
In a sale of goods contract, both parties agree to the terms of the transaction and the seller is obligated to provide the goods or services in exchange for the bidder's payment.
The buyer promises to pay the seller a certain amount of money at an agreed-upon date or when the goods are received. In the event of a dispute, both parties can seek legal remedies.
In Candy's case, if she follows through with her promise to pay, she will receive the piece of jewelry she bid on.
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Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $20,000 for Job 301, $30,000 for Job 302, and $40,000 for Job 303. For the year, actual manufacturing overhead was $479,000 and total direct labor cost was $850,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.Overhead applied in each of the inventory accounts is as follows:Work-in-process inventory $ 37,400Finished goods inventory 102,850Cost of goods sold 327,250Required:Prepare an entry to allocate the under- or overapplied overhead. Record the allocation of over- or underapplied overhead.
To allocate the over- or underapplied overhead, an adjusting entry must be made. In this case, the manufacturing overhead was estimated to be $495,000, but the actual manufacturing overhead cost was $479,000, resulting in an underapplied overhead of $16,000. The entry to allocate the underapplied overhead would be as follows:
The debit to the Manufacturing Overhead Allocation account serves to decrease the manufacturing overhead costs by $16,000. The three credits are to the three inventory accounts and serve to spread the cost of the underapplied overhead over all three accounts in the same proportion as the direct labor costs. Job 301 had direct labor costs of $20,000, representing 20% of the total direct labor costs of $850,000. As such, the Work-in-process Inventory account is credited with 20% of the $16,000 underapplied overhead, or $3,200. The Finished Goods Inventory account is credited with $6,400 (30%) and the Cost of Goods Sold account is credited with $6,600 (70%)
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On January 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest receivable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, Dora will purchase the bonds for$159,869. 1. Complete the first three rows of an amortization table for Dora. 2. Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31.
The entry would be a debit to Interest Income for $13,443 and a credit to Cash for $13,443.
Payment Number
Interest
Principal
Ending Balance
1
$7,000
$33,586
$126,384
2
$6,443
$34,143
$92,241
3
$5,885
$34,701
$57,540
For the purchase of the bonds by Dora on January 1, the entry would be a debit to Cash for $159,869 and a credit to Bonds Payable for $175,000.
For the receipt of the first two semiannual interest payments on June 30 and December 31, the entry would be a debit to Interest Income for $13,443 and a credit to Cash for $13,443.
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Before the case goes to the jury, each attorney presents ____ in which he or she summarizes the evidence for the jury in a manner most favorable to their case.a)a summary discussionb)hearsay evidencec)voir dire evidenced)a closing statemente)a closing argument
Before the case goes to the jury, each attorney presents a closing argument in which he or she summarizes the evidence for the jury in a manner most favorable to the case. Thus, option e is correct.
A closing argument is an oral statement made by an attorney following the presentation of evidence during a trial. The closing argument is the attorney's opportunity to explain the evidence and persuade the jury to reach a favorable verdict for their client.
During the closing argument, each side has the opportunity to summarize the evidence presented and argue why the jury should find it in their favor.
The purpose of the closing argument is to convince the jury to accept the lawyer's interpretation of the evidence and to reach a verdict in their client's favor.
The attorney typically summarizes the key points of their case, highlights evidence supporting their position, and refutes any evidence or arguments presented by the opposing counsel.
In this way, the attorney attempts to leave the jury with a lasting impression of their case and its merits. Thus, option e is correct.
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most sales messages contain a(n) ; one of the most common is price. group of answer choices topic of interest action statement desired goal central sales theme audience need
Most sales messages contain central sales, and one of the most common is price.
What is a sales message?Sales messages are a way to connect with potential customers and persuade them to buy a product or service. It is a persuasive message with the goal of promoting or selling a product or service. The central sales theme is the main idea of the message the seller wants to convey to the buyer.
The central sales theme represents the product's essential qualities and benefits that are important to the customer. The message's heart informs and persuades the customer to buy. Most sales messages contain a central sales theme, and one of the most common themes is price. AudienceSales messages must be tailored to the target audience's needs and interests to be successful. The message must be relevant, informative, and compelling to be effective. The seller should understand the customer's perspective and communicate in a way that is clear and concise to the customer.
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your client just accepted an offer from a buyer for a property in northern california. what information will not be provided to the escrow agent as part of the escrow instructions? quoizlet
When a client accepts an offer from a buyer for a property in northern California, "the buyer's deposit amount" shall not be provided to the escrow agent.
Escrow AgentThe escrow agent is responsible for handling the escrow account, which is a holding account used to safeguard a property transaction's cash and documents.
An escrow agent assists with the transaction's closing by collecting relevant documents, securing the buyer's deposit, and disbursing funds as required. They are responsible for ensuring that all terms of the escrow instructions are followed, including making all necessary payments and ensuring that all necessary documents are signed and delivered. Therefore, in a property transaction in Northern California, the escrow agent receives instructions from the buyer and seller to ensure that the transfer of ownership is smooth. Learn more about escrow accounts here:
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separation of duties is essential to______assets. the person who has custody of an asset_____also account for the asset.
"Separation of duties is essential to safeguarding assets. The person who has custody of an asset should not also be responsible for accounting for the asset."
Separation of duties is a fundamental principle in finance and accounting that aims to prevent fraud, errors, and other forms of malpractice. It involves dividing responsibilities among different individuals to minimize the risk of financial loss or mismanagement. Specifically, it dictates that the person who has custody of an asset, such as cash or inventory, should not also be responsible for accounting for the asset.
This separation ensures that there are checks and balances in place, and any discrepancies can be detected and corrected by another individual. By having different people accountable for different aspects of financial operations, companies can reduce the likelihood of fraud, errors, and other forms of financial mismanagement, which can lead to significant financial losses and reputational damage.
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a. When prospect theory occurs, O people are better able to process changes in product sizes than changes in price. O gains are felt more intensely than losses. O people judge gains and losses relative to the status quo that they are used to. O people assign the same utility to a given situation regardless of their previous status quo. b. When a framing effect occurs, O the choice of strategy doesn't matter since consumers are generally able to recognize price increases regardless of what form they take. O recent information has the most influence on decision making. O people's preferences can change drastically dependent on contextual information. O people isolate purchases and fail to consider all consumption options. c. When anchoring occurs, O recent information has the most influence on decision making. O people judge gains and losses relative to the status quo that they are used to. O the choice of strategy doesn't matter since consumers are generally able to recognize price increases regardless of what form they take people are better able to process changes in product sizes than changes in price. d. When mental accounting occurs, Opeople isolate purchases and fail to consider all consumption options. O people's preferences can change drastically dependent on contextual information. O people assign the same utility to a given situation regardless of their previous status quo. people are better able to process changes in product sizes than changes in price.
Prospect theory posits that people judge gains and losses relative to the status quo that they are used to, and that gains are felt more intensely than losses. People are better able to process changes in product sizes than changes in price since changes in product size are easier to understand and can be seen more easily.
A framing effect is when people's preferences can change drastically dependent on contextual information, such as how the product or service information is presented. This can influence how people perceive the product or service and how likely they are to purchase it.
Anchoring occurs when people judge gains and losses relative to the status quo that they are used to. People often make decisions based on the initial information they receive, regardless of how much more information is presented.
Mental accounting is when people isolate purchases and fail to consider all consumption options. People assign the same utility to a given situation regardless of their previous status quo. This means that people may be more likely to make decisions based on their current situation, rather than considering the long-term implications.
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Suppose Event Photo Services takes photographs at private events with cameras they purchased. They process the photos in a rented space and hire hourly labor to arrange shoots and produce the finished photo packages. They buy advertising services from a marketing company for a flat annual fee.Their fixed costs include
Event Photo Services is a business that takes photos at private events with cameras it has purchased. They process the photographs in a leased space and hire hourly labor to arrange shoots and produce the final photo packages. They purchase advertising services from a marketing company for a fixed annual cost.
In this situation, what are the company's fixed costs? Fixed costs include those costs that do not change as a result of the quantity of production or the level of activity. Fixed costs, regardless of the number of products produced, are unchanging.
The following are the fixed costs of Event Photo Services:
Lease of rented spaceAnnual advertising fees paid to the marketing companyDepreciation expense of the cameras purchasedSalaries of the administrative teamIf the business produces more or less than the planned production level, these costs remain constant.
As a result, they are referred to as "fixed" costs.
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Which one of the following statements is not true about Gantt charts?a.The activities on Gantt charts coincide with the Work Breakdown Structure deliverablesb.A milestone can be created by adding an activity with a unit value.c.Gantt charts can be used to track actual vs planned project schedule information.d.Gantt charts do not usually show task dependencies.
The statement that is not correct about Gantt charts is that "Gantt charts do not usually show task dependencies." Thus, Option D is correct.
Gantt charts are a useful tool for project management that visually displays the schedule of a project. They show the start and end dates of each task, and can also show the duration of each task, the critical path, and resources allocated to each task. A milestone can be created by adding an activity with a unit value, and Gantt charts can be used to track actual vs planned project schedule information.
However, Gantt charts do show task dependencies by indicating which tasks must be completed before others can start, which helps project managers to plan the project and ensure that all tasks are completed in the correct sequence.
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What is the alternative investment industry?
The alternative investment industry refers to a category of investments that are not typically found in traditional asset classes such as stocks, bonds, and cash.
Alternative investments can include a wide range of asset classes, such as real estate, private equity, hedge funds, commodities, and derivatives.
Alternative investments are often considered to have a lower level of liquidity than traditional assets and may require a longer time horizon for investment. They can also be more complex, require more due diligence and expertise, and may carry higher levels of risk than traditional assets.
Despite these challenges, alternative investments have become increasingly popular with institutional and high-net-worth investors seeking to diversify their portfolios and potentially achieve higher returns. The alternative investment industry has grown rapidly in recent years, with many firms offering a range of alternative investment strategies and products.
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one difference between stocks and bonds is that ___
group of answer choices a. stocks are financial securities, while bonds are labor market securities b. stocks are usually issued in electronic form, while bonds are usually issued in paper form c. stocks represent ownership in companies, while bonds represent ownership in banks d. stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond
In the following question, among the given options, in the missing blank, One difference between stocks and bonds is that option (D) "stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond."
What is a stock? A stock is a financial security that symbolizes the ownership of a company and represents a proportionate claim on its assets and earnings. The individual who owns a share of a company's stock is known as a shareholder. Stockholders are entitled to share in the company's profits through dividends, which are payments made by a company to its shareholders out of its earnings.
What is a bond? Bonds are fixed-income securities that are used by corporations, municipalities, and governments to fund activities or infrastructure projects. Bonds are a type of debt security, which means they represent a loan that investors make to the bond issuer in return for regular interest payments and the promise to repay the bond's principal when it reaches maturity.
The key difference between stocks and bonds is that stocks do not involve a promise to repay the purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond. Stocks are riskier investments than bonds because they lack the promise of principal repayment at maturity. However, stocks can offer a higher rate of return than bonds because they are based on the company's earnings, which can be more significant than the fixed interest payments made on bonds.
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If demand price elasticity measures 2, this implies that consumers would: a. buy twice as less of the product if the price drops by 10. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 % drop in price d. require at least a $2 increase in price before showing any response to the price increase.
If demand price elasticity measures 2, this implies that consumers would buy 2 percent more of the product in response to a 1 % drop in price.
In other words, a 1 percent decrease in the price of a product will lead to a 2 percent increase in purchases of that product. The elasticity of demand measures how sensitive buyers are to changes in the price of a product. If the elasticity of demand is high, then buyers are more sensitive to price changes and they will make more purchases when prices drop. On the other hand, if the elasticity of demand is low, then buyers are less sensitive to price changes and will make fewer purchases when prices drop.
For example, if the price of a product is $10 and the elasticity of demand is 2, then a 1 percent drop in the price would result in a 2 percent increase in purchases. This means that a 1 percent decrease in the price of the product, or a drop of $0.10, would lead to a 2 percent increase in purchases. Therefore, the demand price elasticity of 2 implies that consumers would buy 2 percent more of the product in response to a 1 % drop in price.
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sportsworld purchased a delivery van for $23,000 with a residual value of $3,000 on september 1, 2019. the van has an estimated useful life of 5 years. using the straight-line method, how much depreciation should sportsworld recognize on december 31, 2019?
The straight-line method is one of the most common depreciation methods and is based on the principle of uniform depreciation. It divides the initial cost of an asset minus its salvage value by the asset's useful life in years to arrive at the annual depreciation amount.
Calculation of depreciation[tex]Annual depreciation=($23,000-$3,000)/5 Years\\=$4,000[/tex]
Depreciation per month = Annual depreciation / 12 months
[tex]Depreciation per month = $4,000 / 12 months[/tex]
Depreciation was recognized on December 31, 2019
Therefore, Sportsworld should recognize $1,333.33 in depreciation on December 31, 2019.
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To test the client's cutoff of inventories, the auditors will make a record of the serial number of the final receiving and shipping documents used prior to the taking of the physical inventory.
a. True
b. False
To test the client's cutoff of inventories, the auditors will make a record of the serial number of the final receiving and shipping documents used prior to the taking of the physical inventory. The statement is true.
What is a physical inventory?A physical inventory is a process of manually counting and verifying the inventory levels of a business. Physical inventory is done at the end of an accounting period, such as a fiscal year, and requires that all inventory items are counted and accounted for.
This enables a business to update its inventory records and make any necessary adjustments. This is especially important for businesses that depend on accurate inventory tracking, such as retailers and manufacturers.
In order to verify the client's cutoff of inventories, the auditors will record the serial number of the final receiving and shipping documents used before the physical inventory is conducted.
This helps the auditors identify any discrepancies and determine if the inventory counts have been accurately recorded.
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Which of the following are the most significant effects that bicameralism has on the legislative process?creates more access for interest groupsincreases compromiselessens the chances of bad laws getting passed
The most significant effects that bicameralism has on the legislative process are "increased compromise," increased access for interest groups, and lessened chances of bad laws getting passed.
Bicameralism creates an environment that encourages compromise by forcing two chambers to come to an agreement on a bill. This increases the chances of a bill that satisfies all parties involved.
Bicameralism also allows for more access to interest groups. By providing two chambers to discuss a bill, different voices from within the same state or country can be heard and accounted for in the final decision.
Lastly, bicameralism lessens the chances of bad laws getting passed as it requires two chambers to approve a bill before it can become law. This allows for a double-check of the bill, thereby reducing the chances of a bad law being passed.
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In which situation would analytical intelligence be the MOST useful?
Please choose the correct answer from the following choices, and then select the submit answer button.
studying for final exams
in times of survival
during a game of Trivial Pursuit
trying to come up with a slogan for a start-up company
studying for final exams
Analytical intelligence would be the MOST useful in studying for final exams. Therefore, option A is correct.
Intelligence is referred to as the ability to learn, understand, and make judgments or have opinions that are based on reason. There are a lot of ways that intelligence can be described or defined. Gardner (1983) proposed the theory of multiple intelligences which included eight kinds of intelligence.
Analytical intelligence is the ability to analyze, evaluate, or judge information or situations. People who have analytical intelligence are good at breaking problems into smaller parts and solving them, as well as asking relevant questions to seek answers. It is one of the essential kinds of intelligence since it involves logical thinking, data analysis, and critical thinking.
Studying for final exams would require a person to comprehend large amounts of information quickly and accurately. A student would need to be able to synthesize and analyze the information to make sense of it. Analytical intelligence would be a valuable asset in this situation.
Therefore, studying for final exams is the situation where analytical intelligence would be the MOST useful.
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Which of the following are taken into consideration when determining the MARR for an organization. Select all that apply.- The amount of money the organization has available for investment and the cost of obtaining the money.- The number of good projects ivatable for uivestunent. - The perceived risk associated with the investment opportunity. - The type of organazation involked (ipluate industry goveminent etc)
When determining the MARR for an organization, the amount of money the organization has available for investment and the cost of obtaining the money; the perceived risk associated with the investment opportunity, and the type of organization involved (private industry, government, etc) are all taken into consideration.
What is the meaning of MARR?The term MARR stands for the minimum attractive rate of return. It is the lowest rate of return on investment that a company considers acceptable or worthwhile. As a result, MARR is used to assess the feasibility of a project.
This metric assists in determining the minimal rate of return that a project must achieve to be considered a viable investment opportunity. Investment criteria for a project A project's investment criterion are defined by its minimum acceptable rate of return, or MARR.
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In the context of a fixed-order-quantity system, stockouts occur whenever the lead-time demand____a. exceeds the reorder point b. exceeds the work-in-process inventory c. becomes equal to the finished-goods inventory d. becomes equal to the break-even point
In conclusion, in the context of a fixed-order-quantity system, stockouts occur when the lead-time demand exceeds the reorder point, the work-in-process inventory is exceeded, the finished-goods inventory is equal to the demand, and the break-even point is equal to the demand.
In the context of a fixed-order-quantity system, stockouts occur whenever the lead-time demand exceeds the reorder point. The reorder point is the predetermined level of inventory when the company needs to order more inventory to meet customer demand. When the lead-time demand surpasses the reorder point, a stockout is likely to occur.
The lead-time demand is the amount of inventory needed over a specific time period, usually over a few months. If the demand is greater than the reorder point, it means that the company will not have enough inventory to meet customer demand. To prevent a stockout from occurring, the company must set a reorder point that is high enough to meet the lead-time demand.
In addition to the lead-time demand exceeding the reorder point, a stockout can occur when the work-in-process inventory is exceeded. This inventory is the amount of raw materials or components needed to create a finished product. If there is a high demand for the product, the work-in-process inventory can be quickly exhausted, leading to a stockout.
Stockouts can also occur when the finished-goods inventory is equal to the demand. This occurs when the demand is so high that the company runs out of the finished product before they can restock. Lastly, stockouts can occur when the break-even point is equal to the demand. The break-even point is the point at which the company is not making a profit or a loss and a stockout can cause a business to experience a loss.
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frames, inc. picture frames each require $19 of direct materials and $40 of direct labor. variable manufacturing overhead cost is $9 per frame and variable selling and administrative expense is $13 per frame sold. total fixed manufacturing overhead cost per month is $15,000 and the company produces 5,000 frames each month. the unit product cost of each frame using variable costing is $ . (enter your answer as a whole number without decimal places.)
The total unit product cost of each frame using variable costing is $81.
We can calculate the unit product cost of each frame as follows:
Unit Product Cost = Direct Materials + Direct Labor + Variable Overhead Cost
Unit Product Cost = $19 + $40 + $9Unit Product Cost = $68
To calculate the total unit product cost using variable costing, we need to add the variable selling and administrative expense per frame to the unit product cost.
Total Variable Cost per Frame = Unit Product Cost + Variable Selling and Administrative Expense
Total Variable Cost per Frame = $68 + $13
Total Variable Cost per Frame = $81
Therefore, the total unit product cost of each frame using variable costing is $81.
The concept of variable costing refers to the calculation of the cost of a product by considering only those manufacturing costs that vary with respect to the production level. That means that the only costs included in the cost of a product under this method are direct materials, direct labor, and variable overhead costs. The costs that remain constant regardless of production volume are considered fixed costs, such as rent, property taxes, and other similar expenses. These costs do not form part of the unit product cost calculation using variable costing.
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a stock whose par value is $8 with 200 shares outstanding is split four-for-one. what is/are the effect(s) of this split? multiple select question. higher market price 800 shares outstanding lower market price par value $2
When a stock whose par value is $8 with 200 shares outstanding is split four-for-one, the following effects will occur:Higher market price
Par value $2
Lower market price
800 shares outstanding
A stock split is a corporate action that results in the reduction of the par value of a company's outstanding shares. In other words, a company divides its existing shares into more shares. For example, a company with 200 shares of common stock outstanding and a par value of $8 per share would have a total equity of $1,600. The market value of a share of stock is determined by supply and demand in the market, and so the higher the demand, the higher the market value of the stock.
On the other hand, the par value of a share of stock is its nominal or legal value as stated in the corporate charter. The par value is often used to determine the initial sale price of the stock.The effect(s) of a stock split include:Lowering the par value of the outstanding shares.Making more shares available, thereby increasing the number of shares outstanding and reducing the market price per share.Increasing the number of outstanding shares and reducing the market price per share may make the stock more attractive to investors who can purchase more shares at a lower price.
As a result, the stock's market value may increase, resulting in a higher market price for each share. Conversely, a lower market value may make the stock less attractive to investors, resulting in a lower market price per share.
What are the steps in the marketing research process?
In the following question, the steps in the marketing research process are- Defining the problem, Designing the study, Collecting the data, Analyzing the data, Interpreting and reporting the findings, and Using the results.
The marketing research process involves six steps:
1. Defining the problem - Defining the research problem and opportunities, as well as determining the research objectives.
2. Designing the study - Developing the research plan and selecting the methods, samples, and data sources.
3. Collecting the data - Collecting the data through a variety of sources such as surveys, focus groups, and experiments.
4. Analyzing the data - Analyzing the data to discover patterns and relationships.
5. Interpreting and reporting the findings - Interpreting the results, summarizing them, and presenting them in reports.
6. Using the results - Using the research results to make decisions about marketing strategies.
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A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in: 3) A) Cash disbursements journal B) General journal. C) Cash receipts journal. D) Purchase journal. E) Sales journal.
When a company makes a cash sale of $24,000 and the cost of the merchandise is $13,000, journal the transaction would be recorded in Sales journal. Hence, the correct option is E.
The journal that would be recorded for the transaction of the company that makes a cash sale of $24,000 and has the cost of merchandise of $13,000 is the sales journal. A sales journal is a specific journal that records all sales of merchandise made for cash or on account. The sales journal records transactions that are made by a business entity on credit. The sales journal records sales invoices that involve inventory.
If there is a sale of goods, the sales journal records this type of transaction. The details are recorded in the sales journal when goods are sold, whether for cash or on credit. The sales journal includes information such as the customer's name, the date of the sale, the invoice number, the merchandise sold, the quantity, the selling price, and the total amount.
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on january 1, 2020, corgan company acquired 80 percent of the outstanding voting stock of smashing, inc., for a total of $980,000 in cash and other consideration. at the acquisition date, smashing had common stock of $700,000, retained earnings of $250,000, and a noncontrolling interest fair value of $245,000. corgan attributed the excess of fair value over smashing's book value to various covenants with a 20-year remaining life. corgan uses the equity method to account for its investment in smashing. during the next two years, smashing reported the following: net income dividends declared inventory purchases from corgan 2020 $ 150,000 $ 35,000 $ 100,000 2021 130,000 45,000 120,000 corgan sells inventory to smashing using a 60 percent markup on cost. at the end of 2020 and 2021, 40 percent of the current year purchases remain in smashing's inventory. compute the equity method balance in corgan's investment in smashing, inc., account as of december 31, 2021. prepare the worksheet adjustments for the december 31, 2021, consolidation of corgan and smashing.
Retention of earnings and the fair value of the noncontrolling interest in the common stock of Smashing of $245,000. Removal of the annual $12,250 excess of fair value over book value allotment.
How is the fair value of NCI determined?To calculate the NCI of the income statement, multiply the subsidiary's net income by the NCI percentage. Consider, for instance, that the company owns 70% of the subsidiary. Imagine a minority partner owning 30% of the company's subsidiaries and a $1 million net profit. $300k would be the NCI, which is determined as $1M x 30%.
Initial investment cost = 80% x $700,000 = $560,000
Fair value over book value in excess = $245,000
Allocation per year = Excess of fair value over book value / Remaining covenant life
Allocation per year = $245,000 / 20 years = $12,250 per year
Beginning balance = $560,000
Add: Share of Smashing's net income = 80% x $150,000 = $120,000
Add: Inventory markup on purchases = 80% x 40% x $100,000 x 60% = $19,200
Less: Share of Smashing's dividends declared = 80% x $35,000 = $28,000
Less: Allocation of excess of fair value over book value = $12,250
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Answer:
the answer is
Explanation:
Downstream intra-entity profit adjustments when parent uses equity method and a noncontrolling interest is present)Consideration transferred by Corgan $980,000
Noncontrolling interest fair value245,000
Smashing’s acquisition-date fair value1,225,000
Book value of subsidiary 950,000
Excess fair over book value275,000
Excess assigned to covenants 275,000
Remaining useful life in years ÷ 20 Annual amortization $13,750 2020 Ending Inventory Profit Deferral▪ Cost = $100,000 ÷ 1.6 = $62,500▪
Intra-entity gross profit = $100,000 – $62,500 = $37,500▪
Ending inventory gross profit = $37,500 × 40% = $15,000 2021 Ending Inventory Profit Deferral ▪ Cost = $120,000 ÷ 1.6 = $75,000▪ Intra-entity gross profit = $120,000 – $75,000 = $45,000▪ Ending inventory gross profit = $45,000 ´ 40% = $18,000 a. Investment account:Consideration transferred, January 1, 2020$980,000Smashing’s 2020 net income (150,000× 80%)$120,000Covenant amortization (13,750 × 80%)(11,000)Ending inventory profit deferral (100%) (15,000)Equity in Smashing’s earnings94,0002020 dividends (35,000*80%) (28,000)Investment balance 12/31/20$1,046,000Smashing’s 2021 net income (130,000× 80%)$104,000Covenants amortization (13,750 × 80%)(11,000)Beginning inventory profit recognition15,000Ending inventory profit deferral (100%) (18,000)Equity in Smashing’s earnings90,000 2021 dividends (45,000*80%) (36,000)Investment balance 12/31/21$1,100,000
b. 12/31/21 Worksheet Adjustments
Entry *G
Investment in Smashing15,000
Cost of goods sold 15,000
Entry S
Common stock—Smashing 700,000
Retained earnings—Smashing365,000
Investment in Smashing852,000
Noncontrolling interest213,000
Entry A
Covenants261,250
Investment in Smashing209,000
Noncontrolling interest52,250
Entry I
Equity in earnings of Smashing (above)90,000
Investment in Smashing90,000
Entry D Investment in Smashing 36,000
Dividends declared36,000 (45,000*80%)
Entry E
Amortization expense13,750
Covenants13,750
Entry TI Sales 120,000 Cost of goods sold 120,000
Entry G
Cost of goods sold18,000 Inventory18,000
Private solutions to externalities are MOST likely to occur when there are:
communal property rights and large numbers of buyers and sellers with equal bargaining power.
private property rights and high transaction costs.
communal property rights and large numbers of sellers.
well-defined property rights and low transaction costs.
Private solutions to externalities are MOST likely to occur when there are well-defined property rights and low transaction costs. This means that each party has a clear understanding of the ownership of a good or service, and the costs associated with a transaction are minimal. The correct answer will be option D.
The most likely solution to externalities is private, which occurs when there are well-defined property rights and low transaction costs.
Externalities are costs or benefits of the production and consumption of goods and services that are not considered or paid for by the agents who are responsible for them. As a result, the social cost of producing and consuming goods and services is greater than the private cost.
Well-defined property rights are essential for the economy to work efficiently. They play a critical role in determining the conditions under which people trade with one another, as well as the extent of the competition that emerges between them.
Therefore correct answer will be option D.
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what is the purpose of liability coverage on a renters insurance policy?
The purpose of liability coverage on a renters insurance policy is to protect the policyholder from financial responsibility for injuries or damages that may occur to other individuals or their properties while they are on the policyholder's rented property.
Liability coverage is a type of insurance that protects the insured individual or organization from financial losses arising from lawsuits. The policyholder is covered for any accidental bodily injury or property damage they might cause to others while on their rented property.
A person may sue a renter for damages they suffered while on their rented property, claiming negligence. A renter's liability coverage will cover the costs associated with defending against lawsuits brought by other parties who are injured or suffer property damage as a result of the renter's actions.
The policyholder's liability coverage on their renters insurance policy will cover legal fees, settlement amounts, and court-awarded damages in the event of a lawsuit. Liability coverage on a renter's insurance policy can also cover any damage the renter causes to someone else's property, such as their landlord's house or car.
Liability coverage protects renters who have a party at their house or apartment, for example, and one of their guests is injured. It also protects renters from lawsuits filed by anyone who is hurt on the rented property's grounds. Liability coverage can also cover the cost of damage to a neighboring apartment or home caused by a renter's negligence or carelessness.
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How will constructing a cash budget using an electronic spreadsheet make this financial report more helpful?
Constructing a cash budget using an electronic spreadsheet can make a financial report more helpful by increasing accuracy and flexibility.
What are the uses?
Electronic spreadsheets can handle complex calculations quickly and accurately, reducing the risk of errors and ensuring that the budget is reliable.
Additionally, spreadsheets offer flexibility in terms of making changes and adjustments to the budget as needed, allowing for scenarios to be easily modeled and analyzed.
This can help businesses or individuals make more informed financial decisions by giving them a clearer picture of their financial situation and helping them plan for future expenses and revenue. The use of electronic spreadsheets can ultimately save time and effort, and can provide a more comprehensive and useful financial report.
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At the end of 2021, Marin Co. Has accounts receivable of $754,500 and an allowance for doubtful accounts of $23,960. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. Is not collectible and therefore management authorizes a write-off of $4,624. A)Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually. )Account Titles and ExplanationDebitCreditEnter an account titleEnter a debit amountEnter a credit amountEnter an account titleEnter a debit amountEnter a credit amount(b)What is the cash realizable value of the accounts receivable before the write-off and after the write-off?Before Write-OffAfter Write-OffCash realizable value$Enter a dollar amount$Enter a dollar amount
The journal entry to record the write-off of the given information of Marin co. and Madonna Inc. is as follows-
Dr - allowance for doubtful accounts - 4,624
Cr - accounts receivable - 4,624
b: Before Write-off - 730,540 (754,500-23,960)
After Write-off - 730,540 (754,500-4,624) -(23,960-4,624)
Journal entry is the act of maintaining/keeping or recording economic or non-economic transactions.
Transactions are recorded/documented in accounting journals that show the company's debit and credit balances. A journal entry can consist/contains of multiple entries, each representing either a debit or a credit. The total debits must equal/similar/same the total credits. Otherwise, the journal is considered unbalanced.
Journal entries can record one-time or recurring items, such as depreciation or write-off of bonds. In accounting software, journal entries are typically recorded using a separate module from accounts payable. Accounts payable usually has its own subledgers that indirectly affect the general ledger.
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which produces a single product, has provided the following data for its most recent month of operations: Number of units produced Variable costs per unit: 4,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense $ $ 39 $71 5 8 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $220,000 $308,000 There were no beginning or ending inventories. The unit product cost under absorption costing was Multiple Choice $170 per unit $115 per unit $255 per unit $110 per unit
The unit product cost under absorption costing for Caruso Incorporated is $170 per unit. Therefore, the correct option is option 1.
Absorption costing is a method of accumulating all the costs associated with a product, including both fixed cost and variable costs. Direct materials, direct labor, and both variable and fixed overhead are all included in the cost of making a product under this method. The unit cost of production is determined by dividing the total cost of production by the number of units produced.
In the given case,
Number of units produced = 4,000; Variable Costs: Direct materials = $39, Direct labor = $71, Variable manufacturing overhead = $5, Variable selling and administrative expense = $8; Fixed Costs: Fixed manufacturing overhead = $220,000, Fixed selling and administrative expense = $308,000. No beginning or ending inventories are recorded.
The unit product cost under absorption costing can be calculated as follows:
Direct materials: 4,000 units x $39 = $156,000
Direct labor: 4,000 units x $71 = $284,000
Variable manufacturing overhead: 4,000 units x $5 = $20,000
Variable selling and administrative expense: 4,000 units x $8 = $32,000
Fixed manufacturing overhead: $220,000
Fixed selling and administrative expense: $308,000
Total Cost = $156,000 + $284,000 + $20,000 + $32,000 + $220,000 + $308,000 = $1,000,000
Unit Product Cost = Total Cost / No. of units produced = $1,000,000/4,000 = $170 per unit.
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In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the contract price and the market price.
true or false
The statement is True. In a contract for the sale of goods, compensatory damages are usually calculated as the difference between the contract price and the market price.
Compensatory damages, also known as actual damages, are monetary damages awarded to reimburse a plaintiff for financial and emotional losses that result from a defendant's wrongdoing.
This type of award is intended to restore the plaintiff to the financial position he or she would have been in if the wrongdoing had never occurred.
In the context of contract law, compensatory damages are awarded to the aggrieved party to compensate for any loss or harm they may have suffered due to the other party's breach of contract.
The goal of compensatory damages is to make the aggrieved party whole, rather than to punish the party that breached the contract.
The measure of compensatory damages in a contract for the sale of goods is generally the difference between the contract price and the market price. The market price refers to the current price of the goods on the open market at the time of the breach.
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what is usually the first step in cost-based pricing? group of answer choices designing a good product setting a price that covers costs plus a target profit testing the product concept with potential customers adding up the costs of making the product determining the marketing mix strategy
The first step in cost-based pricing is adding up the costs of making the product.
This involves identifying all the direct and indirect costs associated with producing the product, including materials, labor, overheads, and other expenses. Once these costs have been determined, the company can set a price that covers costs plus a target profit.
Cost-based pricing is a pricing strategy that involves determining the cost of producing a product and then adding a markup to arrive at the selling price. This markup is designed to cover not only the cost of production but also the company's overheads and a target profit.
This approach assumes that the cost of production is the primary driver of the selling price of the product.The first step in cost-based pricing involves identifying all the costs associated with producing the product. These costs can be divided into two categories: direct costs and indirect costs.
Direct costs are those that can be traced directly to the production of the product, such as raw materials and labor. Indirect costs are those that cannot be traced directly to the production of the product, such as rent, utilities, and administrative expenses.
Once these costs have been identified, the company can add a markup to arrive at the selling price. The markup should be sufficient to cover all the costs associated with production as well as a target profit. This target profit should be based on the company's overall business objectives and financial goals.
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