Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $26,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $17,420. Sydney pays $685 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,200 of the $26,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answers
Answer:See attachment
Explanation:
A journal entry is the an entry whereby the transactions made by a company are recorded in an accounting book and these transactions show the debit and the credit balnces of the said company.
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
The above has been prepared and attached.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
See attachment
Related Questions
Becker Office Service purchased a new computer system on January 1, Year 1, for $32,400. It is expected to have a five-year useful life and a $3,200 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. Required Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. Assume that Becker Office Service sold the computer system at the end of the fourth year for $21,000. Compute the amount of gain or loss using each depreciation method.
Answers
Answer:
Straight line method
Depreciation expense - Year 1 = $5840
Depreciation expense - Year 2 = $5840
Depreciation expense - Year 3 = $5840
Depreciation expense - Year 4 = $5840
Depreciation expense - Year 5 = $5840
Gain on sale = 21000 - 9040 = $11960
Double declining balance
Depreciation expense - Year 1 = 2 * (32400 - 0) / 5 = $12960
Depreciation expense - Year 2 = 2 * (32400 - 12960) / 5 = $7776
Depreciation expense - Year 3 = 2 * (32400 - 20736) / 5 = $4666
Depreciation expense - Year 4 = 2 * (32400 - 25402) / 5 = $2799
Depreciation expense - Year 5 = 2 * (32400 - 28201) / 5 = $1679.6
Gain on sale = 21000 - 4199 = $16801
Explanation:
Straight line method
The straight line method of depreciation charges a constant depreciation expense per year through out the useful life of the asset. The formula for depreciation expense per year under this method is,
Depreciation expense = (Cost - Salvage value) / estimated useful life of the asset
Depreciation expense per year = (32400 - 3200) / 5 = $5840 per year
Depreciation expense - Year 1 = $5840
Depreciation expense - Year 2 = $5840
Depreciation expense - Year 3 = $5840
Depreciation expense - Year 4 = $5840
Depreciation expense - Year 5 = $5840
Net Book Value - Year 4 = 32400 - (5840 * 4) = $9040
Selling price = $21000
Gain on sale = 21000 - 9040 = $11960
Double declining balance method
The double declining balance method is an accelerated form of depreciation where asset is depreciated more in initial years and less in later years. The formula for depreciation expense per year under this method is,
Depreciation expense = 2 * (Cost - Accumulated depreciation) / Estimated useful life of the asset
Depreciation expense - Year 1 = 2 * (32400 - 0) / 5 = $12960
Depreciation expense - Year 2 = 2 * (32400 - 12960) / 5 = $7776
Depreciation expense - Year 3 = 2 * (32400 - 20736) / 5 = $4666
Depreciation expense - Year 4 = 2 * (32400 - 25402) / 5 = $2799
Depreciation expense - Year 5 = 2 * (32400 - 28201) / 5 = $1679.6
Net book value - Year 4 = 32400 - 28201 = 4199
Gain on sale = 21000 - 4199 = $16801
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
2021 2022 2023
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Estimated costs to complete as of year-end 6,390,000 2,028,000 0
Billings during the year 2,100,000 3,672,000 4,228,000
Cash collections during the year 1,850,000 3,000,000 5,150,000
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
a. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
b. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.
c. Calculate the amount Of revenue and gross profit (loss) to be recognized in each Of the three years assuming the following costs incurred and costs to complete information.
Answers
Answer:
Westgate Construction Company
a) Amount of revenue and gross profit (loss) to be recognized in each year:
2021 2022 2023
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Percentage of costs to the total 32.61% 39.51% 27.88%
Revenue recognized each year $3,261,000 $3,951,000 $2,788,000
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Gross profit $651,000 $789,000 $557,200
b) Information for a partial balance sheet for 2021 and 2022
Current assets: 2021 2022
Accounts receivable (Santa Clara) $250,000 $922,000
Explanation:
a) Data and Calculations:
2021 2022 2023
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Estimated costs to complete
as of year-end 6,390,000 2,028,000 0
Billings during the year 2,100,000 3,672,000 4,228,000
Cash collections during the year 1,850,000 3,000,000 5,150,000
Contract price = $10,000,000
Total costs incurred = $8,002,800
Total Gross profit = $1,997,200
Since Westgate Construction's contract with Santa Clara Country does not qualify for revenue recognition over time, revenue can only be recognized based on degree of completion or percentage of completion. This is based on the costs incurred in each year.
2021 2022 2023
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Percentage of costs to the total 32.61% 39.51% 27.88%
Revenue recognized each year $3,261,000 $3,951,000 $2,788,000
Cost incurred during the year $2,610,000 $3,162,000 $2,230,800
Gross profit $651,000 $789,000 $557,200
a) Accounts Receivable (Santa Clara)
Date Accounts Title Debit Credit
2021 Construction Contract $2,100,000
2021 Cash Account $1,850,000
2021 Balance 250,000
2022 Balance 250,000
2022 Construction Contract $3,672,000
2022 Cash Account $3,000,000
2022 Balance 922,000
Construction Contract
Date Accounts Title Debit Credit
2021 Cash account $2,610,000
2021 Accounts receivable $2,100,000
2022 Cash account $3,162,000
2022 Accounts receivable $3,672,000
$5,772,000 $5,772,000
Cash Account
Date Accounts Title Debit Credit
2021 Construction Contract $2,610,000
2021 Accounts receivable $1,850,000
2022 Construction Contract $3,162,000
2022 Accounts receivable $3,000,000
Please explain in three well-structured paragraphs the impact of a change in the savings rate on the output
Answers
Answer:
The answers is provided in paragraph along with brief introduction on savings. Each part has also been titled for better understanding.
Explanation:
Introduction
Saving is the income which has not been spent on any need or demand of a specific individual but instead kept in the bank account for future use or invested in some asset for earning future returns.
The impact of change in the savings rate on the output:
Investment
When an income is saved, it is sometimes deposited in the bank account. This in turn will lead to banks providing the save income to businesses for investing in their business. This will further grow the business and ultimately output would increase. The same goes for cases where savings are decreased that would lead the output to decrease as well.
Interest Rate
When savings are increased in banks. The amount to provide load has also been increased. This will lead to reduction in interest rates or borrowing rates which will help the economy to grow. Finally, the output will also grow.
Individual
If the saving rate is increased per person then the specific individual has more to spend. Such as if the average person spends the savings in shares or other businesses then the will increase their earnings even further. Thus, it would result in increase in output as well and vice versa.
The savings rate in an economy can affect output if it changes because savings finance output.
Output in an economy is as a result of companies and individuals being able to acquire funds from financial intermediaries which they then use to engage in production.
The funds these financial intermediaries use are acquired from savers. If the savings rate reduces for instance, there would be less funding for companies and individuals which would lead to less output. .
In conclusion, a change in the savings rate, can affect the output as it determines just how much funding goes towards producers.
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What are the two major financial institutions used by consumers for handling money?
Answers
Answer:
What is the most common type of financial institution?
Commercial banks. are the most common financial institutions in the United States, with total financial assets of about $13.5 trillion (85 percent of the total assets of the banking institutions). ...
Savings banks
Finance companies
Insurance companies
Explanation:
you know you can find the answer on google
The first phase of the selling process involves
to sell.
Answers
Answer:
false. it is Prospecting. The first of the seven steps in the sales process is prospecting. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford what you offer.Explanation:
9. In cell B15, enter a formula that uses the IF function and tests whether the total sales for Q1 (cell B8) is greater than or equal to 1000000. If the condition is true, multiply the total sales for Q1 by 0.18 to calculate a commission of 18%. If the condition is false, multiply the total sales for Q1 by 0.10 to calculate a commission of 10%.
Answers
Based on the formula being an IF function that tests total sales for being greater than a certain figure, the formula is =IF(B8>=1000000,B8*0.18,B8*0.10).
Why is this the formula?If the amount in B8 is more than or equal to 100,000, the if function would be IF(B8>=1000000).
If the amount meets that criteria, then the IF function will multiply it by 18% and if the amount does not meet this criteria, the amount is multiplied by 10% after the third comma.
The complete formula would then be:
=IF(B8>=1000000,B8*0.18,B8*0.10)
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g Gamgee Company wishes to maintain a growth rate of 12.8 percent per year, a debt-equity ratio of 1.4, and a dividend payout ratio of 40 percent. The ratio of total assets to sales is constant at .94. What profit margin must the firm achieve
Answers
The Profit margin that must be achieved is 12.74%.
Profit marginFirst step
Return on equity= Growth rate /(1 + Growth rate) × Retention ratio
Return on equity=12.8% / (1 + 12.8%) × (100%-40%)
Return on equity= 0.128/(1 +0.128) × 0.60
Return on equity= 0.128/1.128 × 0.60
Return on equity= 0.128/0.6768×100
Return on equity= 18.91%
Second step
Now the profit margin is:
Profit margin= ROE / Asset turnover × Equity Multiplier
Profit margin= 18.91% / {(1/.94) × 1.4}
Profit margin= 0.1891 / 1.06 × 1.4
Profit margin= 12.74%
Inconclusion the Profit margin that must be achieved is 12.74%.
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The economic burden of a tax:
a
is always shifted to consumers through higher prices.
b
is partially shifted to consumers through higher prices in most cases.
c
is rarely shifted to consumers through higher prices.
d
falls on sellers if the statutory burden of the tax is on sellers.
Answers
Answer:
a
............!!?!!?
Cost of Bank Loans Del Hawley, owner of Hawley’s Hardware, is negotiating with First City Bank for a 1-year loan of $90,000. First City has offered Hawley the alternatives listed below. Calculate the effective annual interest rate for each alternative. Do not round intermediate calculations. Round your answers to two decimal places. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year. 12 % A 8% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year. 10 % A 8.75% annual rate on a discounted loan, with a 15% compensating balance. 11.28 % Interest figured as 9% of the $90,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year. 15.62 % Which alternative has the lowest effective annual interest rate? Alternative B
Answers
Answer:
Calculate the effective annual interest rate for each alternative.
A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year.
you borrow $90,000 and pay $10,800 in interests, effective rate = 12%A 8% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year.
you borrow $90,000, but you only take home $72,000. You pay $7,200 in interests, therefore, effective interest rate = $7,200 / $72,000 = 10%A 8.75% annual rate on a discounted loan, with a 15% compensating balance. 11.28 %
you borrow $90,000, but you only take home $90,000 - $7,875 (discounted interest) - $13,500 (15% compensating balance) = $68,625. You pay back $76,500, so interest = $7,875. Effective interest rate = $7,875 / $68,625 = 11.48%Interest figured as 9% of the $90,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year.
you take home $90,000, but the first 11 months you pay $7,500 and the last payment = $15,600. Using a financial calculator, I just calculated the monthly IRR = 1.2621%. The effective interest rate = (1 + 1.2621%)¹² - 1 = 16.24%Which alternative has the lowest effective annual interest rate?
Alternative B:
A 8% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year.
Retail Records Inc. acquired all of Decibel Studios' voting shares on January 1, 20X2, for $280,000. Retail's balance sheet immediately after the combination contained the following balances:
RETAIL RECORDS INC. Balance Sheet January 1, 20X2
Cash and Receivables $120,000 Accounts Payable $75,000
Inventory 110,000 Taxes Payable 50,000
Land 70,000 Notes Payable 300,000
Buildings and Equipment (net) 350,000 Common Stock 400,000
Investment in Decibel Stock 280,000 Retained Earnings 105,000
Total Assets $930,000 Total Liabilities and Stockholders' Equity $930,000
Decibel’s balance sheet at acquisition contained the following balances: DECIBEL STUDIOS Balance Sheet January 1, 20X2
Cash and Receivables $40,000 Accounts Payable $90,000
Inventory 180,000 Notes Payable 250,000
Buildings and Equipment (net) 350,000 Common Stock 100,000
Goodwill 30,000 Additional Paid-In Capital 200,000
Retained Earnings (40,000 )
Total Assets $600,000 Total Liabilities and Stockholders' Equity $600,000
On the date of combination, the inventory held by Decibel had a fair value of $170,000, and its buildings and recording equipment had a fair value of $375,000. Goodwill reported by Decibel resulted from a purchase of Sound Stage Enterprises in 20X1. Sound Stage was liquidated and its assets and liabilities were brought onto Decibel's books.
Required:
Compute the balances to be reported in the consolidated balance sheet immediately after the acquisition for:
a. Inventory.
b. Buildings and Equipment (net).
c. lnvestment in Decibel Stock.
d. Goodwill.
e. Common Stock.
f. Retained Earnings.
Answers
Answer:
a. Inventory = $280,000
b. Buildings and Equipment (net) $725,000
c. lnvestment in Decibel Stock = 0
d. Goodwill = $35,000
e. Common Stock = $400,000
f. Retained Earnings = $105,000
Explanation:
A balance sheet is a snapshot of the assets, liabilities, and equity of a business at any point in time.
From the information given we will calculate the following:
a. Inventory = Initial Inventory + Present inventory = 110,000 + 170,000 = $280,000
b. Buildings and Equipment (net) = initial building value + present building value = 350,000 + 375,000 = $725,000
c. lnvestment in Decibel Stock will not appear in the consolidated balance sheet as it is cancelled out by liquidation
d. Goodwill = Fair value of consideration + Fair value of Decibel's assets
Fair value of Decibel assets will be assets less liabilities
Goodwill = 280,000 + (40,000 + 170,000 + 375,000 - 90,000 - 250,000 - 245,000)
Goodwill = $35,000
e. Common Stock = $400,000
f. Retained Earnings = $105,000
Question 14 of 20 :
Select the best answer for the question.
14. Export management companies
A.import as well as export.
B. handle all aspects of exporting, for a percentage fee of the business.
C.only do consulting work.
D. work on flat fees per month.
Answers
Export management companies handle all aspects of exporting, for a percentage fee of the business. Thus option (C) is correct.
What is a business?A business can be referred to as an organization or enterprising entity that engages in professional, commercial or industrial activities. There are different types of businesses like sole proprietorships, partnerships, corporations, and more.
The businesses are basically work for profit motive. Businesses can be small-scale or large-scale. Some of the biggest businesses in the world are Amazon and Walmart.
There are different types of partners in a business. The persons who owns the shares of the company is known as shareholder. The partner who can lose only what he or she has invested in a business is the general manager.
Export management companies handle all aspects of exporting, for a percentage fee of the business. Therefore, option (C) is correct.
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Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,614 in self-employment tax on her salon income, with $1,307 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income (not municipal bond) $ 14,665 Salon sales and revenue 88,560 Salaries paid to beauticians 46,440 Beauty salon supplies 23,620 Alimony paid to her ex-husband, Rocky 7,100 Rental revenue from apartment building 35,180 Depreciation on apartment building 14,000 Real estate taxes paid on apartment building 11,980 Real estate taxes paid on personal residence 6,879 Contributions to charity 4,963 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Answers
Answer:
Betty's AGI $33,558
Explanation:
Betty's AGI:
Revenue from salon $88,560
Salaries paid to beauticians ($46,440)
Nail salon supplies ($23,620)
Salon's operating income $18,500
+
Interest income $14,665
+
Rental revenue from apartment building $35,180
Depreciation on apartment building ($14,400)
Real estate taxes paid on apartment building ($11,980)
Rental income $8,800
-
Alimony paid to her husband $7,100
-
Self-employment tax on salon income $1,307
=
Betty's AGI $33,558
Real estate taxes paid on Betty's house and charitable contributions are itemized deductions (below the line deductions).
what are right? Explain your answer
Answers
Answer: Not quite sure what you are asking of what are right... But I do know what is left...
Emarpy Appliances Inc. wants to determine the optimal production policy for their best selling refrigerator. The demand for this has been relatively constant at about 8,000 each year. The production capacity for this product is limited to 200 units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per unit per year. Assume there are 250 working days per year. If Emarpy Inc wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run?
Answers
Answer:
Q' = 213.80
Explanation:
P(d): production rate per day = 200
Ic: Installation cost = 120
D: Demand = 8000
D(d): demand rate per day = 32
Uc: Unit cost (holding) = 50
Applying into Production order quantity model formula
[tex]Q'= \sqrt{\frac{2*D*Ic}{(1 - \frac{D(d)}{P(d)}) * Uc } } = \sqrt{\frac{2*8000*120}{(1 - \frac{32}{200})*50 } } = 213.80[/tex]
Use the following information for the Exercises below. (Algo)
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.
Gross Pay through August 31 Gross Pay for September
a. $ 5,500 $ 2,300
b. 3,000 3,100
c. 132,400 9,000
Answers
The gross pay through August 31 and September 30 for the single employee of BMX Company is likely to be b. $3,000 and $3,100, respectively.
What is gross pay?Gross pay refers to the total payment that an employee is entitled to receive before any deductions are taken away.
Some of the deductions are:
FICA Social Security taxesFICA Medicare taxesFUTA taxesSUTA taxesAfter the deductions from the gross pay, the balance is known as the net pay.
Thus, the gross pay through August 31 and September 30 for the single employee of BMX Company is likely to be b. $3,000 and $3,100, respectively.
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Why is it that everyone cannot have everything they could possibly want?
Answers
because that would make you spoiled, and no one will like you. And some things aren't buyable
Todd keeps meaning to open a savings account and deposit a small portion of each paycheck, just in case he has an emergency and needs extra cash. But he just hasn’t gotten around to it yet. Todd’s car breaks down on the way home from work. His mechanic tells him that it will cost about $1,200 to get the car running again. Todd needs his car to get to and from work. He just got paid so he uses most of the money from his paycheck to get his car fixed. If you were Todd, in the short term, what would you do about your present financial situation?
Answers
i dont know let me look it up
Explanation:
In this case, the individual must repair the car because it is required for travel to and from work. To repair the car, the individual must withdraw funds from his or her savings account.
What is saving account?A savings account is a basic type of bank account into which you can deposit funds. You can withdraw funds from it, and most banks will pay you compound interest on the balance of your account.
Thus, the person must repair the car after breaking the saving accounts.
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Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of depreciation. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow? Do not round the intermediate calculations. Group of answer choices $526
Answers
Answer: 446
Explanation:
Net Income will be calculated as:
=(Sales - Operating costs - Depreciation - Bond × interest rate) × (1-tax rate)
= (8250 - 5750 - 1000) - (3200 × 5%) × (1-35%)
= 1500 - (3200 × 0.05) × 65%
= (1500 - 160) × 0.65
= 1340 × 0.65
= 871
Free Cash flow will be calculated as:
= (8250-5750-1000) × (1-35%) + 1000 - 1250 - 300
= 425
The firm's net income will exceed its free cash flow by:
= 871 - 425
= 446
LA Company has a beginning cash balance of $6,000, cash receipts of $12,000, cash payments of $7,200 and an outstanding loan balance of $1,500. Their preliminary cash balance is $
Answers
Based on the information given their preliminary cash balance is $9,300.
Preliminary cash balanceUsing this formula
Preliminary cash balance= Beginning cash balance + cash receipts- cash payment -outstanding loan balance
Let plug in the formula
Preliminary cash balance=$6,000+$12,000-$7,200-$1,500
Preliminary cash balance=$9,300
Inconclusion their preliminary cash balance is $9,300.
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Answer:
10800
Explanation:
Aisha's organization uses special performance tests, which are then supplemented by other appraisal methods. Why would her firm use these types of tests
Answers
If Aisha's organization uses special performance tests the firm use these type of tests: To measure ability
What is Performance test?Performance test can be defined as the type of test conducted to check or to evaluate how an employee will perform on their given job.
Most companies or organization tend to carryout performance test on their employee in order to measure their ability including how productive they will be on their job.
Inconclusion if Aisha's organization uses special performance tests the firm use these type of tests: To measure ability
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Question 1 of 10
The was developed as a result of the Securities Act and Securities
Exchange Act.
A. Federal Reserve Bank
B. Federal Deposit Insurance Corporation
C. Securities and Exchange Commission
D. Securities and Exchange Center of America
SUBMIT
Answers
Answer:
C
Explanation:
The Exchange Act created the Securities and Exchange Commission(SEC)
What action does kareem need to take to change the timing of an animation in one of his presentation slide
Answers
What Kareem needs to do to change the timing of animation is change the delay and duration for the slide.
A typical Presentation slide helps to keep an audience's attention during a presentation and as well provide additional supporting information.
A presentation slides entails the use of text, images, artworks, aesigns, animation to facilitate a smart slide for proper presentation.
Animation basically move on the slides and are timed/programmed to move in a specific time or direction.
Therefore, in conclusion, Option C is correct. All Kareem have to do to change the timing of an animation in the slide is changing the delay and duration for the animation.
hope this helps
In which of the following situations could a research analyst use multiple regression? A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans A psychologist wants to understand the underlying personality factors associated with materialism in consumers A firm wants to identify segments of the market to pursue The brand manager for Tide laundry detergent wants to understand how consumers perceive Tide relative to other laundry detergents All of the above Question 2
Answers
Answer:
A). A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans.
Explanation:
Multiple regression is elucidated as the statistical technique employed to determine the association between two or more dependent or response and independent/explanatory variables.
As per the question, the multiple regression can be employed in the first situation where 'a real estate company wishes to forecast the probable sales of construction on the basis of....loans.' Multiple regression analysis would help in representing the linear relationship between these two variables that helps in ensuring effective analysis and making predictions and ensuring optimum output. Thus, option A is the correct answer.
Grant Co. issued $500,000 face value, five-year, 8% bonds on December 31, Year 1. The bonds pay interest annually starting from December 31, Year 2. The bonds were sold to yield 7%. Present value factors are as follows: 7% 8% Present value of $1, five periods 0.712986 0.680583 Present value of ordinary annuity of $1, five periods 4.100197 3.992710 Present value of annuity due of $1, five periods 4.387211 4.312127 What amount of long-term liability should Grant report on December 31, Year 1, for this sale
Answers
Based on the face value of the bond and the associated interest, the amount of long term liability that Grant should record is $520,500.88.
What is the long term liability?The long term liability in year 1 should be the present value of the bond. This can be found as:
= Present value of coupon payment + Present value of bond face value
The coupon payment is:
= 8% x 500,000
= $40,000
This is an annuity because it is constant so the revised formula is:
= (Coupon x Present value interest factor of annuity, 7%, 5 years) + (Face value x Present value factor, 7%, 8 years)
Solving therefore gives:
= (40,000 x 4.100197) + (500,000 x 0.712986)
= $520,500.88
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In the supply chain, _____ bear the risk associated with products up to the time they are delivered.
Answers
Answer:
the answer is:
Explanation:
In the supply chain, __the process of making and selling ___ bear the risk associated with products up to the time they are delivered.
g Determine the price of the bonds issued on February 1, 2021. 2-a. Prepare amortization schedules that indicate Cromley’s effective interest expense for each interest period during the term to maturity. 2-b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity. 3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2021. 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023.
Answers
Answer:
The question is missing the first part:
On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $65 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $65,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31.
1. Determine the price of the bonds issued on February 1, 2021.
the market value of each bond:
PV of face value = $1,000 / (1 + 4%)⁸ = $730.69 PV of coupon payments = $30 x 6.7327 (PV annuity factor, 4%, 8 periods) = $201.98market price per bond = $932.67
2-a. I used an excel spreadsheet since there is not enough room here: Cromley Motors PDF
2-b. Again I used an excel spreadsheet since there is not enough room here:
3. February 1, 2021, bonds issued at a discount
Dr Cash 60,623,550
Dr Discount on bonds payable 4,376,450
Cr Bonds payable 65,000,000
4. Cromley's records:
July 31, 2021, first coupon payment
Dr Interest expense 2,424,942
Cr Cash 1,950,000
Cr Discount on bonds payable 474,942
January 31, 2022, second coupon payment
Dr Interest expense 2,443,940
Cr Cash 1,950,000
Cr Discount on bonds payable 493,940
July 31, 2022, third coupon payment
Dr Interest expense 2,463,697
Cr Cash 1,950,000
Cr Discount on bonds payable 513,697
January 31, 2023, fourth coupon payment
Dr Interest expense 2,484,245
Cr Cash 1,950,000
Cr Discount on bonds payable 534,245
Barnwell's records:
July 31, 2021, first coupon payment
Dr Cash 1,950
Dr Discount on bonds payable 2,425
Cr Interest revenue 475
January 31, 2022, second coupon payment
Dr Cash 1,950
Dr Discount on bonds payable 494
Cr Interest revenue 2,444
July 31, 2022, third coupon payment
Dr Cash 1,950
Dr Discount on bonds payable 514
Cr Interest revenue 2,464
January 31, 2023, fourth coupon payment
Dr Cash 1,950
Dr Discount on bonds payable 556
Cr Interest revenue 2,484
Matthews Company uses the percentage-of-sales method to estimate the Allowance for Doubtful Accounts. Before adjustment, the Allowance for Doubtful Accounts has a debit balance of $2,500. If net credit sales are $725,000 and Matthews estimates 1% of the net credit sales to be uncollectible, what will be the amount of the journal entry for the adjusting entry at year-end
Answers
The amount of the adjusting journal entry at year-end for Matthews Company, which uses the percentage-of-sales method to estimate its Allowance for Doubtful Accounts is $9,750.
What is the percentage-of-sales method?The percentage-of-sales method is one of the methods for estimating the Allowance for Doubtful Accounts.
This method uses a predetermined percentage that is applied on the Net Credit Sales to determine the amount of the Allowance for Doubtful Accounts for the period.
Data and Calculations:
Debit balance of Allowance for Doubtful Accounts = $2,500
Net Credit Sales = $725,000
Uncollectible estimate = 1% of net credit sales
= $7,250 ($725,000 x 1%)
Bad Debts Expense $9,750 Allowance for Doubtful Accounts $9,750 ($2,500 + $7,250)
Thus, the amount of the adjusting journal entry at year-end for Matthews Company, which uses the percentage-of-sales method to estimate its Allowance for Doubtful Accounts is $9,750.
Learn more about the Allowance for Doubtful Accounts at https://brainly.com/question/24938115
Based on your reading of the following, choose the best answer to the question. The KittyKarry Company manufactures carriers for cats as well as cat toys and other products (for example, grooming products) for the discerning feline. The company wishes to expand its line of products and has decided to set up focus groups of feline owners to learn more about what kinds of products they might want or need for their cats. The focus groups are part of which stage in the formal process of product development?
A. generate ideas
B. screen ideas
D. develop the concept
E. market and sell the product
Answers
Answer:
A. generate ideas
Explanation:
It makes sence to have more ideas before you market the product.
Price indexes can be used to compare prices across different periods. Suppose that a year of tuition for college at public institutions averaged a cost of â$ in 1989 and that the CPI index was in 1989. If the CPI index was inâ 2009, then the cost of tuition inâ 2009, as the result ofâ inflation, would equal â$ ___________. â(Enter your response rounded to the nearest wholeâ number.) Suppose that the actual average cost of tuition in 2009 was â$. Relative to the expected cost computedâ above, the cost of tuition increased by __________ the same as less than the amount of inflation.
Answers
Question attached
Answer:
1. $3586
2. More than the amount of inflation
Explanation:
Consumer price index 1989 = 114
Price 1989 = $1817
Price for 2009=Consumer price index for 2009 / Consumer price jndex 1989 = Price 2009 / Price 1989
= 225 / 114 = Price 2009 / $1817
= Price for 2009 = $3586
cost of tuition increased in 2009 by = $3307 that is 6893 - 3586 more than amount of inflation
Presented below are a number of balance sheet items for Montoya, Inc. for 2014.
Goodwill $127,970
Accumulated Depreciation-Equipment $292,260
Payroll Taxes Payable 180,561
Inventory 242,770
Bonds payable 302,970
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Income taxes payable 101,332
Cash 362,970
Rent payable (long-term) 482,970
Land 482,970
Common stock, $1 par value 202,970
Notes receivable 448,670
Preferred stock, $10 par value 152,970
Notes payable (to banks) 267,970
Prepaid expenses 90,890
Accounts payable 492,970
Equipment 1,472,970
Retained earnings ?
Required:
Prepare a balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.
Answers
Answer:
Montoya, Inc.
Balance Sheet
As of December 31, 2014:
Assets:
Current Assets:
Cash $362,970
Notes receivable 448,670
Inventory 242,770
Prepaid expenses 90,890
Total current Assets $1,145,300
Equipment 1,472,970
Accumulated
Depreciation 292,260 1,180,710
Land 482,970
Goodwill 127,970
Total long-term assets $1,791,650
Total assets $2,936,950
Liabilities + Equity:
Current Liabilities:
Accounts payable 492,970
Payroll Taxes Payable 180,561
Income taxes payable 101,332
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Notes payable (to banks) 267,970
Total current liabilities $1,106,063
Rent payable (long-term) 482,970
Bonds payable 302,970
Total long-term liabilities $785,940
Total liabilities $1,892,003
EQUITY:
Common stock, 400,000 authorized, $1 par value
202,970 issued 202,970
Preferred stock, 200,000 authorized, $10 par value
15,297 issued 152,970
Retained earnings 689,007
Total Equity $1,044,947
Total liabilities and equity $2,936,950
Explanation:
a) Data and Calculations:
Cash $362,970
Notes receivable 448,670
Inventory 242,770
Prepaid expenses 90,890
Equipment 1,472,970
Land 482,970
Goodwill 127,970
Accumulated Depreciation-Equipment $292,260
Accounts payable 492,970
Payroll Taxes Payable 180,561
Income taxes payable 101,332
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Notes payable (to banks) 267,970
Rent payable (long-term) 482,970
Bonds payable 302,970
Common stock, $1 par value 202,970
Preferred stock, $10 par value 152,970
Retained earnings 689,007
Total $3,229,210 $3,229,210