Answer:
$183,000
Explanation:
Advanced Company
Income Statement for the year - absorption costing
Sales ($71 x 21,000 units) $1,491,000
Less Cost of Sales ($1,008,000)
Gross Profit $483,000
Less Expenses
Operating expenses ($300,000)
Net Income $183,000
where,
Cost of Sales = Units Sold x Product Cost
= 21,000 x $48
= $1,008,000
Product Cost = all manufacturing costs (absorption costing)
= $19 + $21 + $3 + ($175,000 ÷ 35,000)
= $48
Suppose that Ava withdraws $300 from her savings account at Second Bank. The reserve requirement facing Second Bank is 10%. Assume the bank does not wish to hold any excess reserves of new deposits. Use this information to complete the balance sheet below to show how Second Bank's assets and liabilities change when Ava withdraws the $300 from the bank. Instructions:
Write your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
A Simple Bank Balance Sheet
Assets Liabilities
Change in Reserves: Change in Deposits:
Change in Loans:
Answer:
simple bank balance sheet
Explanation:
hope you get it
The following information should be used to according to the provisions of GAAP (Statement of Cash Flows) and using the following data. Net income $50,000 Provision for bad debts $2,000 Decrease in inventory $1,000 Decrease in accounts payable $2,000 Purchase of new equipment $35,000 Sale of equipment for $10,000 loss $20,000 Depreciation expense $6,000 Repurchase of common stock $13,000 Payment of dividend $4,000 Interest payment $3,000 What is net cash flow from operations
Answer:
Explanation:
The net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.
What is the net cash flow from operations?The net cash flow from operations shows the ability of a firm to generate cash from its core business activities.
The net cash flow from operations is computed as the net income from the income statement and adjustments to modify net income from an accrual accounting basis to a cash accounting basis.
Data and Calculations:Net income $50,000
Non-Cash Expenses:
Loss from sale of equipment $20,000
Provision for bad debts $2,000
Depreciation expense $6,000
Changes in working capital:
Decrease in inventory $1,000
Decrease in accounts payable ($2,000)
Cash from operations $77,000
Thus, the net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.
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Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 11% as long as it finances at its target capital structure, which calls for 45% debt and 55% common equity. Its last dividend (D0) was $1.85, its expected constant growth rate is 3%, and its common stock sells for $22. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 13%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. % Which projects should Empire accept? -Select-
Answer:
11.66
7.6475
project A
Explanation:
On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements
Answer:
3600
7200
Explanation:
A portfolio is worth $902,654 and has a duration of 5.77 years. The futures price for a June Treasury note futures contract is 115 and each contract is for the delivery of bonds with a face value of 100,000. On the delivery date the duration of the cheapest to deliver bond is 4.36 years. To hedge the interest rate risk, how many June T note futures do you have to enter short positions on
Answer:
10.39
Explanation:
How many June T note futures do you have to enter short positions on?
The June T note futures we have to enter short positions on is calculated as:
= Portfolio duration*Portfolio value/(Futures price*Face value/100)*1/Duration of cheapest to deliver bond
= 5.77*$902,654 / (115*1000) * 1/4.36
= 5208313.58/115000*0.2293577981651376
= 10.38754204228161
= 10.39
Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $53,200 with an adjusted basis of $31,920 for $35,112. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $15,960 for $10,374. What is the amount and character of Lena's gain or loss?
Answer:
Ordinary gain $3,192; Loss $5,586
Explanation:
Calculation to determine the amount and character of Lena's gain or loss
Based on the information given she has an ORDINARY GAIN § 1245 DEPRECIATION RECAPTURE of the amount of $3,192 calculated as ($35,112 − $31,920) from the sale of the first equipment as well as § 1231 LOSS of the amount of $5,586 ($10,374 − $15,960) from the sale of the second equipment.
Therefore the amount and character of Lena's gain or loss will be Ordinary gain of $3,192 and Loss of $5,586.
Holtzman Clothiers's stock currently sells for $19.00 a share. It just paid a dividend of $4.00 a share (i.e., D0 = $4.00). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Answer and Explanation:
The computation is shown below:
a. The stock price expected one year from now is
= Stock sells per share × (1 + growth rate)
= $19 × (1 + 0.03)
= $19.57
= $20
b. The required rate of return is
= Dividend ÷ current price + growth rate
= ($4 × 1.03) ÷ $19 + 0.03
= 24.68%
The above formulas should be applied to determine each part
And, the same would be relevant
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $64,000; 20Y2, $128,000; 20Y3, $288,000; 20Y4, $368,000; 20Y5, $448,000; and 20Y6, $576,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 4% stock, $100 par, and 100,000 shares of common stock, $10 par.
Required:
Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years.
Answer:
Pecan Theatre Inc.
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 $2.08
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 $2.88
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 $4.16
Explanation:
a) Data and Calculations:
Outstanding common stock = 100,000 shares at $10 par
Outstanding 4% cumulative preferred stock = 40,000 at $10 par
Annual preferred stock dividend = 4% * 40,000 * $100
= $160,000
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 ($64,000/40,000) $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 ($128,000/40,000) $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 ($288,000/40,000) $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 ($160,000/40,000) $2.08 ($208,000/100,000)
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 ($160,000/40,000) $2.88 ($288,000/100,000)
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 ($160,000/40,000) $4.16 ($416,000/100,000)
Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A. Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost). B. Because the zero profit in the long run is, in fact, zero accounting profit, and it matters only in the books. C. Because in the short run, her profit is always positive. D. Because the producer has a high cost of exiting this market, and it is better for her to continue operating at zero profit.
Answer:
Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).
Explanation:
Perfectly Competitive Market
This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.
Perfectly Competitive Industry
This is simply an industry where producers are said to be price takers.
Explicit Costs
These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.
Implicit Costs
These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.
It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.
What is the amount that a customer owes on a credit card at the end of the month called?
Answer:
last payment
Explanation:
i hope thats right
Answer:
Last payment :)
Explanation:
present value of bonds payable; premium moss co. issued $740,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. determine the present value of the bonds payable, using the present value tables in exhibit 5 and exhibit 7. round to the nearest dollar. $fill in the blank 1
Answer:
ijiji
Explanation:
hug
5. Joseph transfers $1000 from his money market fund to his checking account. This
transaction will:
a) decrease M2 and increase M1.
b) increase M1, but leave M2 unchanged.
c) decrease M1 and increase M2.
d) decrease both M1 and M2.
Answer:
A. decrease M2 and increase M1
ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:
Answer:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Explanation:
The adjusting entry on December 31, 2020 would include:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A
A. will be greater than the intrinsic value of stock B.
B. will be the same as the intrinsic value of stock B.
C. will be less than the intrinsic value of stock B.
D. cannot be calculated without knowing the market rate of return.
Answer:
a
Explanation:
Intrinsic value can be determined using the constant dividend growth model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
Stock A = $5/ (0.11 - 0.1) = $500
Stock B = $5/ (0.2 - 0.1) = 50
Intrinsic value of A is greater than that of B
A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
Answer:
a. Breakeven point = Fixed cost / Contribution margin
Contribution margin = Selling price - Variable costs per unit
Variable cost per unit = 2,000,000 / (5,000 * 365 days)
= $1.10
Contribution margin = 1.75 - 1.10
= $0.65
Breakeven point = 700,000 / 0.65
= 1,076,923 kg
Fixed cost per kilogram at those units is:
= 700,000 / 1,076,923
= $0.65
_________________________________________________________
b. Net profit at original prices:
= (Contribution margin * units produced) - Fixed costs
= (0.65 * 5,000 * 365) - 700,000
= $486,250
Less taxes:
= 486,250 * (1 - 35%)
= $316,062.50
Net profit after price increase:
New selling price = 1.75 * 1.1
= $1.93
Net profit = ((Selling price - Variable cost) * units sold) - fixed cost
= ( (1.93 - 1.10) * 5,000 * 365) - 700,000
= $814,750
After tax:
= 814,750 * (1 - 35%)
= $529,587.50
Dollar increase:
= 529,587.50 - 316,062.50
= $213,525
Accounts Debits Credits
Cash $ 17,000
Accounts Receivable 7,400
Supplies 3,400
Equipment 12,000
Accumulated Depreciation $ 3,800
Salaries Payable 5,800
Common Stock 22,000
Retained Earnings 8,200
Totals $ 39,800 $ 39,800
The following is a summary of the transactions for the year:
1. March 12 Provide services to customers, $54,000, of which $20,400 is on account.
2. May 2 Collect on accounts receivable, $17,400.
3. June 30 Issue shares of common stock in exchange for $6,000 cash.
4. August 1 Pay salaries of $5,800 from 2020 (prior year).
5. September 25 Pay repairs and maintenance expenses, $12,400.
6. October 19 Purchase equipment for $7,400 cash.
7. December 30 Pay $1,100 cash dividends to stockholders.
The following information is available for the adjusting entries.
Accrued salaries at year-end amounted to $20,700.
Depreciation for the year on the equipment is $4,400.
Office supplies remaining on hand at the end of the year equal $1,200.
a. Prepare an unadjusted trial balance(Please write out).
b. Prepare an adjusted trial balance(Please write out).
3. Prepare the income statement for the year ended December 31, 2021 (Please Write out).
4. Prepare a post-closing trial balance.
Answer:
a. Unadjusted Trial Balance
Accounts Debits Credits
Cash $ 47,300
Accounts Receivable 10,400
Supplies 3,400
Equipment 19,400
Accumulated Depreciation $ 3,800
Salaries Payable
Common Stock 28,000
Retained Earnings 8,200
Dividend 1,100
Service revenue 54,000
Repairs and
maintenance exp $12,400
Totals $ 94,000 $ 94,000
b. Adjusted Trial Balance
Accounts Debits Credits
Cash $ 47,300
Accounts Receivable 10,400
Supplies 1,200
Equipment 19,400
Accumulated Depreciation $ 8,200
Salaries Payable 20,700
Common Stock 28,000
Retained Earnings 8,200
Dividend 1,100
Service revenue 54,000
Repairs and
maintenance exp 12,400
Salaries expense 20,700
Depreciation Exp 4,400
Office supplies exp 2,200
Totals $119,100 $ 119,100
3. Income Statement for the year ended December 31, 2021
Service revenue 54,000
Repairs and
maintenance exp 12,400
Salaries expense 20,700
Depreciation Exp 4,400
Office supplies exp 2,200 39,700
Net income $14,300
4. Post-closing Trial Balance
Accounts Debits Credits
Cash $ 47,300
Accounts Receivable 10,400
Supplies 1,200
Equipment 19,400
Accumulated Depreciation $ 8,200
Salaries Payable 20,700
Common Stock 28,000
Retained Earnings 21,400
Totals $78,300 $78,300
Explanation:
a) Data and Calculations:
Accounts Debits Credits
Cash $ 17,000
Accounts Receivable 7,400
Supplies 3,400
Equipment 12,000
Accumulated Depreciation $ 3,800
Salaries Payable 5,800
Common Stock 22,000
Retained Earnings 8,200
Totals $ 39,800 $ 39,800
1. March 12 Accounts receivable $20,400 Cash $33,600 Service revenue $54,000
2. May 2 Cash $17,400 Accounts receivable $17,400
3. June 30 Cash $6,000 Common stock $6,000
4. August 1 Salaries Payable $5,800 Cash $5,800
5. September 25 Repairs and maintenance expenses, $12,400 Cash $12,400
6. October 19 Equipment $7,400 Cash $7,400
7. December 30 Cash dividends $1,100 Cash $1,100
Adjusting entries:
Salaries expense $20,700 Salaries payable $20,700
Depreciation Expense $4,400 Accumulated Depreciation $4,400
Office supplies expenses $2,200 Supplies $2,200
Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maximizing quantity of 1,000 boxes, the average total cost is $3.00. If Cliff were to produce 1,100 boxes, the average total cost would be $2.50. Which of the following inefficiencies of monopolistically competitive markets is described in this scenario?
a. Product-variety externality
b. Business-stealing externality
c. Markup over marginal cost
d. Excess capacity
Answer:
D
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
The product-variety externality: When new firms enter into an industry, competition drives price down. This increases consumer surplus. As a result, entry of firms into an industry results in a positive externality on consumers.
The business-stealing externality: When a new firm enters into an industry, existing firms lose customers and profits fall. As a result, entry of a new firm results in a negative externality on existing firms.
Markup over marginal cost is the extent of which price exceeds marginal cost
Excess capacity is when a firm is producing at a capacity that is less than what it is designed for. Excess capacity is evidenced when upon increasing output, average cost falls.
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 72,500 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $652,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $671,800 and its actual total direct labor was 77,550 hours.
Required:
1. Compute the predetermined overhead rate.
2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:
Direct materials $ 43,500
Direct labor cost $ 23,400
Direct labor hours worked 300
Compute the total job cost for the Xavier Company engagement.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate per DLH
Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.)
Direct materials
Direct labor
Overhead applied
Total manufacturing cost
Answer:
1. $9.50 per Direct labor hour
2. $69,750
Explanation:
1. Computation for the predetermined overhead rate
First step is to calculate the Total Estimated overhead cost
Variable overhead cost $36,250
(72,500 Direct labor hours *$ 0.50 )
Add Fixed overhead cost $652,500
Total Estimated overhead cost $688,750
Now let calculate the predetermined overhead rate
Using this formula
Predetermined overhead rate = Total estimated overhead cost / Total estimated direct labor hours
Let plug in the formula
Predetermined overhead rate = $688,750 / 72,500
Predetermined overhead rate = $9.50 per Direct labor hour
Therefore Predetermined overhead rate will be $9.50 per Direct labor hour
2. Computation for the total job cost for the Xavier company Engagement
Direct Materials $43,500
Direct Labor $ 23,400
Overhead applied $2,850
(300 Direct labor * $9.50 )
Total Manufacturing cost $69,750
Therefore total job cost for the Xavier Company engagement will be $69,750
Most agency matters are resolved through adjudication.
False
True
Most agency matters are resolved through adjudication.
True.
Answer:
true is the required answer for your question
hope it helps you
Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.
Answer:
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
Explanation:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
The following information should be considered:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.Learn more: brainly.com/question/16911495
On December 31, 2018, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long- term investments.
Common Stock Shares Cost
C Co. 1,050 $50,400
D Co. 5,090 38,175
E Co. 1,199 25,179
On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2019, the following transactions occurred.
July 1 Received $2 per share semiannual cash dividend on D Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.
Sept. 1 Sold 1,020 shares of D Co. common stock for cash at $9 per share.
Oct. 1 Sold 274 shares of C Co. common stock for cash at $54 per share.
Nov. 1 Received $1 per share cash dividend on E Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.
31 Received $2.30 per share semiannual cash dividend on D Co. common stock.
At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term.
Requried:
Journalize the 2019 transactions
Answer:
July 1
Dr Cash $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash $9,180
Cr Gain on Sale of Stock Investments $1,530
Cr Stock Investments $7,650
Oct-01
Dr Cash $14,797
Cr Stock Investments $13,152
Cr Gain on Sale of Stock Investments $1,645
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
Explanation:
Preparation of the journal entries
July 1
Dr Cash (5,090 X $2) $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash (1,050 X $0.50) $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash [(1,020 X $9) ] $9,180
Cr Gain on Sale of Stock Investments $1,530
($9,180-$7,650)
Cr Stock Investments (274 X $7.5) $7,650
(38,175/5,090=$7.5)
Oct-01
Dr Cash [(274 X $54)] $14,797
Cr Stock Investments (274 X $48) $13,152
($50,400/1,050=$48)
Cr Gain on Sale of Stock Investments $1,645
($14,797-$13,152)
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
(1,199*$1)
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
a) true
b) false
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
a) true
b) false
3. When a corporation is formed, organization costs are recorded as an asset.
a) true
b) false
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
a) true
b) false
5. The number of issued shares is always greater than or equal to the number of authorized shares.
a) true
b) false
6. A journal entry is required for the authorization of capital stock.
a) true
b) false
7. Publicly held corporations usually issue stock directly to investors.
a) true
b) false
8. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
a) true
b) false
9. The market price of common stock is usually the same as its par value.
a) true
b) false
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
a) true
b) false
Answer: 1. True
2. False
3. False
4. True
5. False
6. False
7. False
8. True
9. False
10. False
Explanation:
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership is true.
2. This is false. LImited liability is not a disadvantage of a corporation. It is an advantage of a corporation.
3. Thus is false. When a corporation is formed, it should be noted that organization costs are expenses and not recorded as an asset.
4. This is true. Every share of common stock gives provides the stockholder the ownership rights to vote at stockholder meetings, and also share in corporate earnings, as well as keeping same percentage ownership when new shares of stock are issued, and will also share in the assets upon liquidation.
5. False. It should be noted that the number of authorized shares is typically more than greater or equal to the issued shares.
6. False. A journal entry is not required for the authorization of capital stock. It's required for the issuance of the capital stock.
7. Publicly held corporations do not issue stock directly to investors. Rather, this is done indirectly. It is the private corporations that issue their stock directly.
8. This is true. The trading of capital stock on a securities exchange has to do with the transfer of already issued shares from an existing stockholder to another investor.
9. False. The statement that "The market price of common stock is usually the same as its par value" is false. It should be noted that there's no relationship between the common stock market price and its par value.
10. This is false. The retained earnings simply meansis the total amount of the net income that is held by a corporation for use in the future.
Multiple-Step Income Statement
Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--.
Sales $156,876
Sales Returns and Allowances 2,344
Sales Discounts 4,155
Interest Revenue 419
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances 5,517
Purchases Discounts 2,710
Freight-In 870
Merchandise Inventory, December 31, 20-- 33,028
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense—Equipment 3,809
Miscellaneous Expense 584
Interest Expense 4,692
Answer:
Sauter Office Supplies
Multi-step Income Statement for the year ended December 31, 20--
Net sales $150,377
Cost of goods sold $99,478
Gross profit $50,899
Expenses:
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense 3,809
Miscellaneous Expense 584 $42,918
Operating income $7,981
Interest revenue 419
Interest Expense (4,692)
Income before taxes $3,708
Explanation:
a) Data and Calculations:
Sales $156,876
Sales Returns and Allowances 2,344
Sales Discounts 4,155
Interest Revenue 419
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances 5,517
Purchases Discounts 2,710
Freight-In 870
Merchandise Inventory, December 31, 20-- 33,028
Wages Expense 27,611
Supplies Expense 744
Phone Expense 888
Utilities Expense 7,988
Insurance Expense 1,294
Depreciation Expense—Equipment 3,809
Miscellaneous Expense 584
Interest Expense 4,692
Sales $156,876
Sales Returns and Allowances (2,344)
Sales Discounts (4,155)
Net sales $150,377
Cost of goods sold:
Merchandise Inventory, January 1, 20-- 27,769
Purchases 112,094
Purchases Returns and Allowances (5,517)
Purchases Discounts (2,710)
Freight-In 870
Merchandise Inventory, December 31, 20-- (33,028)
Cost of goods sold $99,478
good research should ideally be...
Answer:
What constitutes a good research question?
A good research question requires original data, synthesis of multiple sources, interpretation and/or argument to provide an answer. The answer to the question should not just be a simple statement of fact: there needs to be space for you to discuss and interpret what you found.
Explanation:
A wine bar entrepreneur sells cases of her private-label wine for $335 per case.For an annual fee of $300, customers may also choose to enroll in a WineAppreciation Club, which o????ers private tastings and entitles members to buy casesof wine for $200. What is the minimum number of cases a club member need topurchase for the membership to be economically advantageous?
Answer: 3 cases
Explanation:
The entrepreneur charges $335 per case but members of the Wine Appreciation club can buy the cases for $200 if they pay an annual fee of $300.
The saving made by the members of the club is:
= 335 - 200
= $135 per case
Considering that they spend $300 on fees, the amount of cases that would give them a savings of more than this amount is:
= 300 / 135
= 2.22 cases
= 3 cases (rounded up)
At 3 cases they would make savings of:
= 3 * 135
= $405
This is more than the fee paid.
Normally you will see US Labor Productivity Increasing at an annual rate of around 6%. In reading the book you should see that it must continue to increase for our country to continue to have the standard of living that we do. What seemed odd to me was that in the 3rd Quarter of 2009, while our country is in the midst of a very deep recession, this number went to 14.8%. In the 4th Quarter it dropped to 6.4% and in the 1st Quarter of this year it was at 2.5%. Why the Big Spike in the 3rd Quarter of 2009
Answer: c) Employees are fearful of losing their jobs, so they are working harder and complaining less.
Explanation:
Research has shown that during periods of recession, people tend to work harder than they do before the recession which has the effect of boosting productivity levels during that period.
The simply reason for this is, fear. In a recession, businesses come under a lot of pressure to reduce their workforce in order to save costs which leads to a rise in unemployment. Workers that are laid off are usually the unproductive ones so workers begin to put in more work during this time so that they do not get laid off.
Consumption expenditures $ 4,150 Federal government purchases of goods and services 850 State and local government’s purchases 331 Investment 751 Proprietors income 150 Compensation of employees 4,080 Corporate profits 134 Taxes on corporate profits 23 Rental income 31 Capital consumption allowance 295 Indirect business taxes 130 Net interest 147 Exports 300 Imports 320 Undistributed corporate profits 111 Transfer payments 66 Personal taxes 45 Dividends 0 Income Earned from the Rest of the World 252 Income Earned by the Rest of the World 1,347 Social insurance taxes 222 Statistical discrepancy 5 Refer to Exhibit 7-1. What is the value of disposable income?
Answer:
The value of disposable income is $4,207
Explanation:
Dispossable income refers to the addition of income of an individual minus his taxes.
Therefore, the value of the value of disposable income can be calculated as follows:
Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207
Therefore, the value of disposable income is $4,207.
Roberto has received various gifts over the years and has decided to dispose of the following assets he received as gifts:
What is the recognized gain or loss from the following transactions, assuming that no gift tax was paid when the gifts were made.
If an answer is zero, select "neither a gain nor a loss" and enter "0" as the amount.
a. In 1981, he received land worth $32,000. The donor's adjusted basis was $35,000. Roberto sells the land for $95,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
b. In 1986, he received stock in Gold Company. The donor's adjusted basis was $19,000. The fair market value on the date of the gift was $34,000. Roberto sells the stock for $40,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
c. In 1992, he received land worth $15,000. The donor's adjusted basis was $20,000. Roberto sells the land for $9,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
d. In 2013, he received stock worth $30,000. The donor's adjusted basis was $42,000. Roberto sells the stock for $38,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
Answer: See explanation
Explanation:
a. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $95000 - $35000
= $60000
Gain of $60000 will be recognized
b. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $40000 - $19000
= $21000
Gain of $21000 is recognized
c. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $9000 - $15000
= -$6000
Loss of $6000 is recognized
d. In this case, no gain or loss will be recognized.
Jason, Ellen and Frank are business partners. Each of them handles a separate area of the partnership's business. They periodically have partners' meeting where they report to each other on the financial status of their areas and discuss potential new business. Jason's area of business has recently become extremely profitable, and Ellen and Frank are so happy with the new financials that they have not closely questioned Jason about the details especially since the partners continue to receive an equal share of the business profits each of them brings in. Ellen and Frank are shocked when the FBI comes to the office one Friday afternoon and arrest Jason. The FBI also informs Ellen and Frank that the office equipment is being seized and the partnership bank accounts have been frozen. Which of the following is a correct statement of the law?
a. Both Ellen and Frank can face criminal prosecution because the business was operated as a partnership.
b. Ellen and Frank will not be liable for Frank's conduct because Frank independently operated his area of the business.
c. Ellen and Frank should immediately file a Notice of Dissociation so that they will not be liable for Jason's conduct.
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.
Answer:
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.
Explanation:
Because Ellen and frank are partners with Jason, they would also both be liable for Franks conduct because the three of them are business partners and have shared profits equally in Jasons area of the business without paying attention to details about the source of the profit. This would make it seem like they were in agreement and accomplices with Jason.
Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. How should Janice report this information on her individual tax return if Catbird Company is: An LLC? An S corporation? A C corporation?
Answer:
A. LLC
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
b. S corporation
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
C. C corporation
Taxable income $110,000
Dividend income $70,000
Explanation:
a. An LLC
Based on the information given She will report the OPERATING INCOME of the amount of $100,000 Schedule C.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent charitable contribution (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
b. S corporation
Based on the information given she will report the OPERATING INCOME of the amount of $100,000 Schedule E.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent CHARITABLE CONTRIBUTION (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
c. C corporation
Based on the information given the TAXABLE INCOME of the amount of $110,000 calculated as ($100,000+$15,000-$5,000) will be reported by Catbird Company on FORM 1120 while Janice on the other hand will have to report DIVIDEND INCOME Schedule B of the amount of $70,000 on her tax return.