Answer:
Dickson Company
Multi-step Income Statement for the year ended December 31, 2020:
Sales revenue $25,000,000
Cost of goods sold 16,000,000
Gross profit $9,000,000
Interest revenue 70,000
Total revenue $9,070,000
Selling and
administrative expenses 4,700,000
Write-off of goodwill 820,000 $5,520,000
Income from operations $3,550,000
Gain on the sale of investments 110,000
Loss due to flood damage (390,000)
Income before taxes 3,270,000
Income taxes for 2020 1,244,000
Net Income $2,026,000
Loss on the disposition of
the wholesale division (net of tax) (440,000)
Loss on operations of the
wholesale division (net of tax) (90,000)
Comprehensive Income $1,496,000
EPS = $2.992
Statement of Retained Earnings for the year ended December 31, 2020:
Comprehensive Income $1,496,000
Retained earnings balance, Jan, 1 980,000
Dividends: common stock 250,000
Dividends: preferred stock 80,000 (330,000)
Retained earnings, December 31 $2,146,000
Explanation:
a) Data and Calculations:
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
b) EPS = $2.992 ($1,496,000/500,000 shares)
The President is considering the following policies, each of which is aimed at reducing violent crime byreducing the use of guns. In your report, illustrate each of these proposed policies in a supply-and-demanddiagram of the gun market, and explain whether the policy will have the desired effect on the gun market.
1. a tax on gun buyers
2. a tax on gun sellers
3. a price floor on guns
4. a tax on ammunition
Answer:
Option 1
Explanation:
The best method to reduce the consumption of any goods or service is to increase the price of the product or services to such an extent that buyers themselves prefer not to buy such good or service.
Hence, the government must put tax on gun buyers. The more tax is implied, the more the demand for guns will reduce as the buyers will not prefer to buy.
Hence, option 1 is correct
The Acmeville Metropolitan Bus Service currently charges $0.67 for an all-day ticket, and has an average of 513 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 0.78. The marketing department's studies indicate this price increase would reduce usage to 249 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method.
A. Demand is inelastic, so decreasing ticket prices w ncreaSe revenue.
B. Demand is inelastic, so increasing ticket prices will increase revenue.
C. Demand is elastic, so increasing ticket prices will increase revenue.
D. Demand is elastic, so decreasing ticket prices will increase revenue.
Answer:
Explanation:
Price elasticity = Percentage change in demand/Percentage change in Price
Percentage change in Q= 513-236=277/513x100 = 53.99%
Percentage change in P= 0.89-0.67= 0.22/0.67x100 = 32.83%
Ed=53.99/32.83 = 1.6
Since the price elasticity of demand is elastic so the company should decrease the price to increase revenu
Toyna Recruitz is an organization that allows its employees to work from home. Most of the interaction between the employees and the organization takes place through email. Moreover, the organization is able to maintain increased employee performance and satisfaction. Identify the work option offered by Toyna Recruitz to its employees.
Answer:
I DONT KNOW
Explanation:
BRANLIEST PLEASE, THIS ANSWER WORKS
The May transactions of Hanschu Corporation were as follows.
May 4 Paid $600 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,500.
8 Purchased supplies for $800 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $500 in cash.
22 Received bill for equipment repairs of $800.
29 Paid $1,100 for 12 months of insurance policy. Coverage begins June 1.
Required:
Journalize the transactions.
Answer and Explanation:
The journal entries are as follows:
On May 4
Account payable $600
To cash $600
(Being cash paid is recorded)
On May 7
Account receivable $6,500
To service revenue $6,500
(being service on account is recorded)
On May 8
Supplies $800
To Account payable $800
(being supplies purchased on account)
On May 9
Equipment $1,000
To cash $1,000
(being cash paid)
On May 17
Salary expense $500
To cash $500
(being cash paid)
On May 22
Repair expense $800
To Account payable $800
(Being received bill for repairing of an equipment is recorded)
On May 27
Prepaid rent $1,100
To cash $1,100
(Being cash paid is recorded)
Brooke has a sign company. She creates colorful signs for birthday parties that can be placed outside of the front door to announce a birthday or welcome birthday party guests. She only advertises on social media. Customers go to her website and place an order, and Brooke delivers a hand-painted sign. Brooke uses social media for all of the following reasons EXCEPT _______.
a. she can respond to requests for birthday events in real time.
b. she can use local network television affiliates to push her message out to a mass audience.
c. she can establish meaningful connections with customers and get references
d. she can engage customers in their products and services
She can make use of the local networks and the TV. Hence answer B is correct.
What does Brooke company creates ?Brooker company creates colorful signs for birthdays and parties. These can be replaced outside the front doors and to announce the birthday party welcome for the guests. She is advertising the presence in social media and the people can visit her website and directly place an order.
As Brooker has a sign company she can easily make use of the time and make birthday decorations for friends and family.
They could easily get access to the website and place orders for the appropriate products and thereby get them delivered within no time. She can thus make use of social media, tv, and even the locality.
Find out more information about the Brooker sign company.
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On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles. Other people are assigned the task of seeing that other parts of the car are built to specifications. The task of building an automobile has been subdivided into a series of subtasks. The concepts of _____
have been employed in this situation.
(A) decentralization and unity of command
(B) product design and structured manufacturing
(C) functionalism and specialization
(D) centralization and product departmentalization
(E) specialization and division of labor
Your parents will retire in 14 years. They currently have $290,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
9.24%Explanation:
This problem is easily solved through a financial calculator.
Just plug into your calculator N=14 PV=290,000 FV= -1,000,000 i=??
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Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2021. The bonds sold for $739,814,813 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet
Answer:
calcule estúpido malparido
Marigold Company discovered the following errors made in January 2022.
1. A payment of Salaries and Wages Expense of $900 was debited to Equipment and credited to Cash, both for $900.
2. A collection of $6,500 from a client on account was debited to Cash $650 and credited to Service Revenue $650.
3. The purchase of equipment on account for $510 was debited to Equipment $150 and credited to Accounts Payable $150.
A. Correct the errors by reversing the incorrect entry and preparing the correct entry.
B. Correct the errors without reversing the incorrect entry.
Account Titles Debit Credit
1. Salaries And Wages Expense 700
Equipment 700
2. Cash 1000
Service Revenue 100
Accounts Receivable 100
3. Equipment 335
Accounts Payable 335
Answer:
A. Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B.
2. Dr Cash 5850
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
Cr Equipment 360
Explanation:
A. To Correct the errors by reversing the incorrect entry and Preparation of the correct entry.
Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B. To Correct the errors without reversing the incorrect entry
2. Dr Cash 5850
($6500-650)
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
(510-150)
Cr Equipment 360
The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest
The Fisher equation does not imply that the increase in inflation will result in a fall in the real rate of interest.
The Fisher equation states the nominal interest rate in the sum of inflation rate and the real interest rate
(1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
Based on the above equation, an increase in inflation rate would lead to a rise in the nominal interest rate. The real interest rate is taken as given in the equation and it is not affected by changes in inflation rate. If inflation rate increases from 3% to 5%, the nominal rate of interest would increase by about 2%.
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Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $59,000 and net assets with a fair value of $162,000. Takeover Co. pays $308,000 for Target Co.'s net assets and business activities.
How much goodwill will result from this transaction?
Calculate the ROI for Target Co. based on its present operating income and the fair value of its net assets. (Round your percentage answer to 2 decimal places.)
Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $64,900. (Round your percentage answer to 2 decimal places.)
Takeover Co. is willing to pay $93,000 more than fair value for the net assets acquired from Target Co. as it represents goodwill and the expected superior earnings in future years. True or False?
Answer:
Takeover Co.
a) Goodwill = $146,000
b) Target's ROI = 36.42%
c) Takeover's ROI = 21.07%
d) False
Explanation:
a) Data and Calculations:
Target Co's net assets fair value = $162,000
Payment by Takeover Co = $308,000
Goodwill = $146,000 ($308,000 - $162,000)
b) Target's ROI:
Operating income = $59,000
Net assets = $162,000
ROI = ($59,000/$162,000) * 100
= 36.42%
c) Takeover Co's ROI:
Operating income = $64,900
Net assets = $308,000
ROI = $64,900/$308,000 * 100
= 21.07%
d) Takeover Co:
Goodwill = $93,000
Purchase price of Target = $255,000 ($93,000 + $162,000)
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $815,910 and liabilities of $257,830. Using the accounting equation and considering each case independently, determine the following amounts:a. Stockholders' equity as of October 31, 20Y2. $b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $128,910 and liabilities increased by $77,510 during 20Y3. $c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $64,460 and liabilities increased by $22,850 during 20Y3. $d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $107,700 and liabilities decreased by $40,800 during 20Y3. $e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $1,028,050, liabilities were $167,260, and no additional common stock was issued or dividends paid. $
Answer:
Inspirational Inc.
a. Stockholders' equity as of October 31, 20Y2
= $558,080
b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $128,910 and liabilities increased by $77,510 during 20Y3.
= $609,480
c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $64,460 and liabilities increased by $22,850 during 20Y3.
=$470,770
d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $107,700 and liabilities decreased by $40,800 during 20Y3.
= $706,580
e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $1,028,050, liabilities were $167,260, and no additional common stock was issued or dividends paid.
= $302,710
Explanation:
1) Data and Calculations:
a) Assets of $815,910
Liabilities of $257,830
Stockholders' equity = $558,080 ($815,910 - $257,830)
b) Assets of $944,820 ($815,910 + $128,910)
Liabilities of $335,340 ($257,830 + $77,510)
Stockholders' equity = $609,480 ($944,820 - $335,340)
c) Assets of $751,450 ($815,910 - $64,460)
Liabilities of $280,680 ($257,830 + $22,850)
Stockholders' equity = $470,770 ($751,450 - $280,680)
d) Assets of $923,610 ($815,910 + $107,700)
Liabilities of $217,030 ($257,830 -$40,800)
Stockholders' equity = $706,580 ($923,610 - $217,030)
e) Assets of $1,028,050
Liabilities of $167,260
Stockholders' equity = $558,080
Net Income = $302,710 (Assets - (Liabilities + Equity))
f) These different transactions and changes show that the accounting equation is always in balance. This means that the assets of Inspirational Inc. will always be equal to the liabilities + equity. The reason for this situation is that assets are funded by either liabilities or equity or a combination of these two financing sources.
2. Marginal analysis is sometimes called "thinking on the
Answer:
fly.
Explanation:
Thinking on the fly is the act of analyzing something quickly and sometimes without all the facts.
Nittany Company borrowed $60,000 from Lion Corporation on September 1, 2018 signing a 9-month payable with an interest rate of 3%. Nittany Co operates on a calendar year basis and is preparing its year-end financial statements In preparing its Income Statement for 2018, what amount of Interest Expense should Nittany Co. report from this note payable
Answer:
the interest expense that should be recorded in the income statement is $600
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × given months
= $60,000 × 0.03 ÷ 12 × 4 months
= $600
Hence, the interest expense that should be recorded in the income statement is $600
Which of the following statements are true?
a. Markets by definition involve the exchange of money for goods and services.
b. Markets are forums in which parties exchange goods and services at a "price," where the latter can be flexibly construed.
c. Your current economics course, the next election, and the dating scene can all be seen as markets.
Answer:
C
Explanation:
A market is a place where goods and services can be exchanged at a predetermined price. A market does not have to be a physical location. With the advent of technology, a market can exist virtually. Money can be used in the exchange of goods or services or goods can be used for the exchange. In the case where goods are used in the exchange, it is known as trade by barter
Marketers are more likely to recognize a problem as unethical when
Answer:
The explanation of the discussion has been characterized below.
Explanation:
The higher the degree of the contract between management peers that perhaps the intervention would be hazardous, the further presumably it is just that advertising agencies will understand the issue when unethical. Research has shown us that the strong ethical social structure and that of other work colleagues reduces the assertion of fraudulent activities.Can someone help me with this ?
Answer:
come over
Explanation:
girls only and ima need hella yay
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Answer and Explanation:
The computation is shown below:
1 Calculation of predetermined overhead rate is
Predetermined overhead rate= Estimated Overhead Cost ÷ Direct labor hours
= $664,000 ÷ 41,500
= $16 per direct labor hour.
Now
Calculation of Total Job Cost:-
Direct Materials $12,700
Direct Labor $3,100
(155 direct labor hours × $20 per hour)
Manufacturing Overhead $2,480
(155 direct labor hours × $16 per hour)
Total Job Cost $18,280
2- Calculation of contracted billing price:-
Total manufacturing cost of Job 301 $18,280
Add: Markup on manufacturing cost 20% of $18,280 $3,656
Billing price $21,936
A major argument of the podcast is that corporations have the power to change their employee's behaviors and even how they see the world, and that's how they can achieve social change- at a grassroots level. How does this relate to your own understanding of business ethics, and do you think it makes sense to look at corporate's capacity for global change at this level? Why or why not?
The correct answer to this open question is the following.
This can relate to my own understanding of business ethics in that corporations do really have a certain influence on employee's behaviors, but up to the point of reference or comparison. Employees have their own belief systems inherited by parents, family, and primary groups of reference.
It could make sense to look at corporate's capacity for global change at this level if the leaders are truly committed to sharing positive values that not only impact the workplace but can be extended to all areas of life.
Indeed, the workplace is where most people spend most of the time during the week. So it would be good that corporate leaders could create the kind of corporate culture in which employees feel comfortable, listened to, and appreciated.
If this is the case, corporations really can have a certain influence on employee's behaviors. Unfortunately, in most corporations, employees can see their leaders setting the example. On the contrary, these leaders are the ones that first break the rules and behave in different or questionable ways.
The wholesale cost of a video game is $459.45. The original markup was 51% based on selling price. Find the final sale price after the following series of price changes: a markup of 24%, a markup of 17%, and a markdown of 10%.
Answer:
234.3399
Explanation:
The wholesale cost of a video game is $459.45. The original markup was 51% based on selling price. The final sale price after the following series of price changes would be a markup of 24%. Thus option (a) is correct.
What is a cost?The cost is the expenditure or spending required or incurred to create and sell products and services, or to acquire assets.
When a product is sold or consumed, a cost is charged to expense. In the case of a buying of an asset, the charge to expense could be significantly deferred.
The cost concept underlies the transition of assets from the balance sheet to expenses in the income statement.
The cost can be a fixed cost like the lease of a building which will not vary every month or can be a variable cost like the telephone cost which can vary every month.
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Help please! Business questions
Answer:
1. National FFA.
2. DECA.
3. BPA
4. FEA (Educators Rising).
Explanation:
A career and technical student organization (CTSO) is an extracurricular group for students in CTE pathways to further their knowledge and skills by participating in activities, events, and competitions. The nine national CTSOs in the United States of America are;
National Future Farmers of America (National FFA). Distributive Education Clubs of America (DECA). Business Professionals of America (BPA). Health Occupations Students of America (HOSA) Family, Career, and Community Leaders of America (FCCLA). Future Business Leaders of America-Phi Beta LAMBDA (FBLA-PBLA). Technology Student Association (TSA). SkillsUSA. Future Educators of America (FEA).1. Marilyn is a middle-school student who wants to prepare for a career in farming: Therefore, Marilyn should join the National Future Farmers of America (FFA) organization.
2. Janice is a high-school student who wants to start her own business: she should join the Distributive Education Clubs of America (DECA) because they prepare students for business management and administration.
3. Abe is a high-school student who wants to become an information technology worker: Thus, Abe should join the Business Professionals of America (BPA) because they train students on citizenship and leadership in career clusters such as information technology.
4. Rene wants to teach middle-school classes: Therefore, Rene should join the Future Educators of America (FEA) because they prepare students who are interested in teaching.
Answer:
1) National FFA!
2) DECA!
3) BPA!
4) FEA!
Explanation:
Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $3.40 and has a margin of 65%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 13%. Currently, her customers average buying 2 specialty drinks per week. The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 550 students will come to Cool Beans for a free trial. Of those, she anticipates that 18% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $115.
What is the CLV of a customer over the time horizon of one year prior to introduction of the loyalty program?
Answer:
Cool Beans
The CLV of a customer over the time horizon of one year prior to the introduction of the loyalty program is:
= $353.60
Explanation:
a) Data and Calculations:
Price of average specialty coffee drink = $3.40
Profit Margin = 65%
Profit Margin = $2.21 ($3.40 * 65%) per drink
Average drinks per customer per week = 2
Total drinks in a year = 104 (2 * 52)
Profit Margin in a year = $229.84 ($2.21 * 104)
Therefore, the Customer Lifetime Value = Gross Revenue
= $3.40 * 2 * 52 = $353.60
b) The Customer Lifetime Value (CLV) is the average purchase value multiplied by the average purchase frequency rate. In this customer's case, the CLV is calculated for only one year and not actually for a lifetime.
Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Creative Images Co.:
Violet Lozano, Capital $930,000
Violet Lozano, Drawing 12,000
Fees Earned 694,400
Wages Expense 471,000
Rent Expense 69,500
Supplies Expense 11,100
Miscellaneous Expense 14,900
Required: Journalize the two entries required to close the accounts.
Post-Closing Trial Balance
An accountant prepared the following post-closing trial balance:
La Casa Services Co.
Post-Closing Trial Balance
March 31, 20Y6
Debit Balances Credit Balances
Cash 12,700
Accounts Receivable 28,190
Supplies 1,780
Equipment 125,600
Accumulated Depreciation 41,910
Accounts Payable 15,240
Salaries Payable 1,400
Unearned Rent 5,720
Sonya Flynn, Capital 104,000
207,760 128,780
Prepare a corrected post-closing trial balance.
Answer and Explanation:
The journal entries are shown below:
Fees Earned 694,400
To Wages Expense 471,000
To Rent Expense 69,500
To Supplies Expense 11,100
To Miscellaneous Expense 14,900
To Violet Lozano, Capital 127,900
Violet Lozano, Capital 12,000
To Violet Lozano, Drawing 12,000
Now the post trail balance is
Cash 12,700
Accounts Receivable 28,190
Supplies 1,780
Equipment 125,600
Accumulated Depreciation 41,910
Accounts Payable 15,240
Salaries Payable 1,400
Unearned Rent 5,720
Sonya Flynn, Capital 104,000
Totals 168,270 168,270
Choose the three primary ledgers used in double-entry bookkeeping?
Accounts payable ledger*
Accounts receivable ledger
Bookkeeping software
General ledger
The chart of accounts
Journals
Answer:
General ledger
The chart of accounts
Journals
Explanation:
The general ledger contains all the transactions carried out and registered by the company.
The chart of accounts is lists and codes all the accounts that are used by the by the company, e.g. cash might be account 101.
The journal entries are the individual entries recorded in the general ledger or any other specific ledger.
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, the allowance account had a credit balance of $96,950. Credit sales for 2018 totaled $3,150,000 and the year-end accounts receivable balance was $537,500. During this year, $94,250 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.
Required:
a. Does this situation describe a loss contingency? Explain.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
c. Prepare the appropriate journal entry to record the contingency.
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?
Answer:
a. Does this situation describe a loss contingency? Explain.
Allowance for doubtful accounts are a loss contingency since they mar or may not happen, but the company has to account for them.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
total bad debt expense = total sales x 3% = $3,150,000 x 3% = $94,500
c. Prepare the appropriate journal entry to record the contingency.
Dr Bad debt expense 94,500
Cr Allowance for doubtful accounts 94,500
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?
ending balance of accounts receivable = $537,500 - $94,500 = $443,000
Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $166,000; salaries and wages expense, $97,000; interest expense, $6,300; advertising expenses, $9,025; and income tax expense, $18,500. Also during the year, the company declared and paid the owners dividends amounting to $12,000.
Required:
Prepare the company’s income statement.
Answer:
Net Income for the year is $23,175
Explanation:
The Company's income Statement is prepared below. In relation to the following please note that:
Total Revenue is considered Section A while Total Expense is Section B and the Net Income is the difference of the same (A - B).Income Statement on December 31st:
HOME REALTY, CORPORATION
Income statement
For period ended December 31st
Revenue $
Sales Revenue 166,000
Other Revenue -
Total Revenue (A) 166,000
Expenses: $
Salaries and Wages Expense 97,000
Interest Expense 6,300
Advertising Expenses 9,025
Income Tax Expense 18,500
Dividends 12,000
Total Expenses (B) 142,825
Net Income (A-B) $23,175
Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. He will drink coffee only if he has exactly 5.00 packets of creamer for every cup of coffee. Coffee is priced at $3.00 per cup and creamer at $0.25 per packet. In the questions below, give your answers to two decimal places.
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Answer:
a. Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Zero packets of creamer is the substitution effect.
Explanation:
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
The consumption ratio can be stated as follows:
5 Creamer = 1 cup of coffee
Budget line has an equation can also be given as follows:
B = (Pm * Qm) + (Pf * Qf) ...................... (1)
Where;
B = Budget = The amount Robert has to spend on coffee and creamer = $39.00
Pm = Price of creamer = $0.25
Qm = Quantity of creamer = ?
Pf = Price of coffee = $3.00
Qf = Quantity of coffee = ?
39 = (0.25 * Qm) + (3 * Qf)
39 = 0.25Qm + 3Qf
Since "5 Creamer = 1 cup of coffee". This also implies thal 1 creamer = 1 / 5 cup of coffee. Therefore, we have;
39 = 0.25Qm + (3 * 1/5 * Qm)
39 = 0.25Qm + (3/5)Qm
39 = 0.25Qm + 0.60Qm
39 = 0.85Qm
Qm = 39 / 0.85
Qm = 45.88
Qf = 45 / 5 = 9.18
Therefore, Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Since Robert treats coffee and creamer as perfect complements, this implies that there there is nothing like substitution effect under this condition.
Therefore, zero packets of creamer is the substitution effect.
Countryside Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 2% of net credit sales will not be collected. In conformity with the expense recognition principle, the company should:
The company should record an estimate of Bad Debt Expense in the same period as the lawn care is provided
What is bad debt?Bad debts are debt which customers are unlikely to pay back. They are debts which are deemed to be irrecoverable.
Also, In line with the standard of the expense recognition principle, states that incomes are documented when earned and expenses are documented when consumed.
Learn more about bad debt here : https://brainly.com/question/15345588
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All financial statements:_________
a) help to evaluate what happened in the past.
b) provide a picture of the company at a moment in time.
c) describe changes that took place over a period of time.
d) contain the most up to date information about the company.
Answer:
a) help to evaluate what happened in the past.
Explanation:
The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way
Also it helps to analyze and evaluate what is happened in the past
Therefore the option a is correct
2. Meatball Corporation, a merchandising company, reported the following results for June. Number of units sold 6,700 Selling price per unit $600 Unit cost of goods sold $419 Variable selling expense per unit $62 Variable administrative expense per unit $30 Total fixed selling expense $126,200 Total fixed administrative expense $208,100 *Cost of goods sold is a variable cost in this company. 1) Prepare a traditional income statement for June.
Answer:
See below
Explanation:
Preparation of traditional income statement
Sales $600 × 6,700. $40,20,000
Less variable cost