Answer:
A. Dr Investment in Skine Company common stock $98,000
Dr Accumulated depreciation $31,000
Dr Accounts payable $29,000
Cr Cash $27,000
Cr Accounts receivable $36,000
Cr Inventory $22,000
Cr Land $3,000
Cr Depreciable assets $70,000
B. Dr Cash $27,000
Dr Accounts receivable $36,000
Dr Inventory $22,000
Dr Land $3,000
Dr Depreciable assets $70,000
Cr Accumulated depreciation $31,000
Cr Accounts payable $29,000
Cr Common stock $46,200
Cr Additional paid-in capital $51,800
Explanation:
A.Preparation of the journal entry that Phoster recorded when it transferred the assets to Skine,
Dr Investment in Skine Company common stock $98,000
Dr Accumulated depreciation $31,000
($75,000-$44,000)
Dr Accounts payable $29,000
($40,000-$11,000)
Cr Cash $27,000
($50,000-$23,000)
Cr Accounts receivable $36,000
($76,000-$40,000)
Cr Inventory $22,000
($42,000-$20,000)
Cr Land $3,000
($25,000-$22,000)
Cr Depreciable assets $70,000
($180,000 $110,000)
(To record transfer of assets to Skine)
B. Preparation of the journal entry that Skine recorded for the receipt of assets and issuance of common stock to Phoster.
Dr Cash $27,000
($50,000-$23,000)
Dr Accounts receivable $36,000
($76,000-$40,000)
Dr Inventory $22,000
($42,000-$20,000)
Dr Land $3,000
($25,000-$22,000)
Dr Depreciable assets $70,000
($180,000 $110,000)
Cr Accumulated depreciation $31,000
($75,000-$44,000)
Cr Accounts payable $29,000
($40,000-$11,000)
Cr Common stock $46,200
(4,200 shares*$11 par value)
Cr Additional paid-in capital $51,800
($27,000+$36,000+$22,000+$3,000+$70,000-$31,000-$29,000-$46,200)
(To record the receipt of assets and issuance of common stock to Phoster)
Journal entries to record transfer of asset and account receivables by Phoster Corporation to Skine Company
Account titles Debit Credit
Investment in Skine company common stock $98000
Accumulated depreciation $31000
Accounts payable $29000
Cash $27000
Accounts receivable $36000
Inventory $22000
Land $3000
Depreciable assets $70000
Journal entries to record receipt of asset and account receivables by Skine Company to Phoster Corporation.
Account titles Debit Credit
Cash $27000
Accounts receivable $36000
inventory $22000
Land $3000
Depreciable assets $70000
Accumulated depreciation $31000
Accounts payable $29000
Common stock (4200*11) $46200
Additional paid in capital (98000-46200) $51800
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Describe the organizational structure of your school or company. What difficulties have you encountered working within this structure
Answer:
My company have a centralized structure of management framework. Under this structure all the decisions are made by the executive level managers of the company.
The main problem that me and my fellow workers face under this structure is that we do not get any space for creativity and judgement of our own. Also the organisation, do not emphasize on our suggestions that we believe can actually make us more efficient.
When there is excess supply (surplus) what will happen?
Answer:
If there is excess supply, then the price will fall.
Explanation:
More supply would reduce the demand and hence, price would adjust to meet the equilibrium between demand and supply
A company reported total equity of $157,000 at the beginning of the year. The company reported $222,000 in revenues and $171,000 in expenses for the year. Liabilities at the end of the year totaled $98,000. What are the total assets of the company at the end of the year
Answer:
$306,000
Explanation:
The computation of the total assets is shown below;
The accounting equation is
Assets = Liabilities + Equity
But before that the ending equity should be determined
So,
Profit = Revenue - Expenses
= $222,000 - $171,000
= $51,000
Thus, equity at the end of the year is
= $157,000 + $51,000
= $208,000
Now Assets at the end of the year are,
Assets is
= $208,000 + $98,000
= $306,000
If firms expect prices to be higher in the future and the product is not perishable, then Multiple Choice the current supply curve shifts to the right. the current supply curve shifts to the left. none of the statements associated with this question are correct. producers produce more output to hold back for the future.
Answer:
the current supply curve shifts to the left.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
Thus, it's the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
One of the importance associated with the pricing of products is that, it improves the image of a business firm.
Hence, if firms expect prices of products to be higher or rise in the future and the product is not perishable i.e wouldn't get spoilt in a short time, then the current supply curve shifts to the left and as such only small quantity of the product would be supplied by the business firm.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.
Mr. Deli wants to start a small sandwich shop in his neighborhood. He has enormous amounts of cash that he inherited from his Uncle Walt, so there are no problems with financing the costs of the business. (1) What is the best type of business for Mr. Deli to form
Answer:
sole proprietorship
Explanation:
A sole proprietorship is a type of business that is owned by one person
Characteristics
1. it is owned by one person
2. the business has unlimited liability
3. the business has limited access to capital
4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies
5. the business is usually not separated from the owner
Here are the comparattive income statements of Georgia Development Corporation.
December 31, 2017 December 31, 2016
Net sales $600,000 $500,000
Cost of goods sold 414,000 350,000
Gross profit 186,000 150,000
Operating expenses 150,000 120,000
Net income $36,000 $30,000
Required:
Prepare a horizontal analysis of the income statement data for Georgia Development Corporation using 2016 as a base.
Answer:
When using horizontal analysis, figures are compared across different years with the subsequent year differences with the base year figures being a percentage of the base year's figures.
12/31/2017 12/31/2016 Difference Percentage
Net sales $600,000 $500,000 $100,000 20.0%
Cost of goods sold $414,000 $350,000 $64,000 18.3%
Gross profit $186,000 $150,000 $36,000 24.0%
Operating expenses $150,000 $120,000 $30,000 25.0%
Net income $36,000 $30,000 $6,000 20.0%
Net sales percentage = 100,000 / 500,000 = 20%
Cost of goods sold = 64,000 / 350,000 = 18.3%
Gross profit = 36,000 / 150,000 = 24%
Operating expenses = 30,000 / 120,000 = 25%
Net income = 6,000 / 30,000 = 20%
A perfectly competitive firm, with MC=q operates in a market character,zed by the following market demand and supply conditions:
Demand: Q=20000-100P
Supply: Q=100P
How much output does this competitive firm produce to maximize profit? Show your work graphically and algebraically.
Answer: 10000 units
Explanation:
First, we've to determine the equilibrium price which will be gotten when we equate the demand to the supply which will be:
20000 - 100P = 100P
100P + 100P = 20000
200P = 20000
P = 20000/200
P = 100
Since Q = 100P
Q = 100 × 100
Q = 10000
The competitive firm will produce 10000 units to maximize profit.
Zubin Ltd. had set the transfer price at $40 for the purchase of goods from its U.S. subsidiary. But the IRS audited the transfer price and determined that it should have been using a transfer price of $190. Assuming the adjustment results in an increase in U.S. tax liability of $200,000. Determine the penalty amount.
Answer:
Zubin Ltd.
The Penalty amount is:
Minimum = $10,000
Maximum = $50,000
Explanation:
a) Data and Calculations:
Company set transfer price = $40
IRs determined transfer price = $190
Increase in U.S. tax liability = $200,000
IRS penalty rate = 5% minimum for each month of default and not exceeding 25% maximum
Therefore, the penalty amount:
Minimum = $10,000 (5% of $200,000)
Maximum = $50,000 (25% of $200,000)
Demand is said to be __________ when the quantity demanded is not very responsive to changes in price. Group of answer choices unit elastic independent inelastic elastic
Answer:
Inelastic
Explanation:
Inelastic is the correct answer because elasticity is the magnitude that exhibits the responsiveness of demand for the commodity when there is a change in price. For example, if the price changes by 100% and due to the change in price, the change in quantity is only 10%. Then it can be deduced that the elasticity is inelastic because the percentage is lower than the percentage in price.
Riverbed Corp issued 2,300 6%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. Prepare a tabular summary to: (a) Record the sale of these bonds on January 1, 2022. (b) Adjust accounts on December 31, 2022, to record interest expense. (c) Record interest paid on January 1, 2023.
Answer: See explanation
Explanation:
The journal entry to record the transactions goes thus:
a. Jan 1, 2022:
Debit Cash 2300 × 1000 = 2300000
Credit Bonds payable 2300000
(To record sale of bonds)
b. Dec. 31, 2022
Debit Interest expense 2300000× 6% = 138000
Credit Interest payable 138000
c. Jan 1, 2023
Debit Interest payable 138000
Credit Cash 138000
(To record interest paid)
what is human resources management?
Answer:
Human resource management is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service.
Customers arrive at a bank teller machine at the rate one every three minutes. Each customer spends an average of two minutes at the teller machine. The arrival rate and the service rate are approximated by Poisson and negative exponential distributions respectively.
Determine the following:
a – utilization of the teller machine
b – average number of customers in line
c – average number of customers in the system
d – average time customers spend in line
e – average time customers spend in the system
f – probability of three customers in the system
g – probability of two or more customers in the system.
Answer:
Arrival rate
1 every 3 minutes
1 minute = 1/3 = 0.33
60 minutes = 0.33*60 = 19.8 = 20 per hour
λ = 20 per hour
Service Rate
1 every 2 minutes
1 minutes = 1/2 = 0.5
60 minutes = 0.5*60 = 30 per hour
µ = 30 per hour
a. Utilization of Teller Machine
P = λ / µ
P = 20/30
P = 66.67%
b. Average number of customers in line
Lq = pL = (λ/µ) (λ/µ- λ)
= (20 / 30) (20 / 30 - 20)
= 20/30 * 20 / 10
= 1.33 customers
c. Average number of customers in the system
L = (λ/µ- λ)
= 20 / 30 - 20
= 20 / 10
= 2 customers
d. Average time customer spends in line
Wq = λ/[µ*(µ- λ)]
= 20 / [30 * (30-20)]
= 20 / 30 * 10
= 0.06667 hours or 4 minutes
e. Average time customers spend in the system
W = 1/(µ- λ)
= 1 / 30 - 20
= 1/10
= 0.10 hours or 6 minutes
f. Probability that there are 3 customers in the system
Pn = (1-p)*p^n
= (1 - 20/30) * (20/30)^3
= 0.3333 * 0.296296
= 0.09876
g. Probability that there are two or more customers in the system
= 1 - P(0) - P(1)
= 1 - (1 - 20/30) * (20/30)^0 - (1 - 20/30) * (20/30)^1
= 1 - 1/3 - 2/9
= 4/9
= 0.4444
1- On November 2, Z-Mart purchased $500 of merchandise inventory for cash
Answer:
Merchandise Inventory (Debit 500)
Cash (Credit 500)
Purchased goods for cash.
Hope this helps
Fixed costs equal $16,000, unit contribution margin equals $35, and the number of units sold equal 1,300. Operating income is ________. Group of answer choices $16,000 $61,500 $45,500 $29,950
The answer to the question of the Operating Income is 61,500 Dollars. Taking into consideration the various fixed costs, contribution margin, and the number of units sold. Hence, option B is appropriate.
What are the fixed costs, operating income, and Contribution Margin?In general, investment securities that offer regular rate or dividend payments to investors until their expiration are referred to as having a fixed income. Government debt, municipal bonds, corporate debt, and asset-backed securities like mortgage-backed bonds are all included in the wide asset class known as "fixed costs." Because these investments offer a return in the shape of regular, fixed payments, they are known as "fixed costs" assets.
Operating income, or EBIT, is a measure of a company's profit used in accounting and finance. EBIT excludes interest payments and taxation expenses. Operating income is the adjusted revenues of a business after all operating costs and depreciation have been taken into account. The charges incurred to maintain the operation of the business are known as operating expenses.
Selling price per unit less variable cost per unit equals contribution margin, often known as dollar contribution per unit. The portion of total sales alluded to as "Contribution" is that which is used to pay fixed costs rather than variable costs. Hence, option B is correct.
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You buy one Huge-Packing August 50 call contract and one Huge-Packing August 50 put contract. The call premium is $1.95, and the put premium is $5.20. Your highest potential loss from this position is _________.
Sheridan Company borrowed $3200000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13800000 in 9% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was:
Answer:
$1,594,000
Explanation:
Calculation to determine what The interest capitalized for 2020 was
2020 interest capitalized= $3,200,000* 12%*11/12 + $13,800,000 * 9%
2020 interest capitalized=$352,000+$1,242,000
2020 interest capitalized=$1,594,000
Therefore The interest capitalized for 2020 was $1,594,000
The Commonwealth of Virginia filed suit in October 2014, against Northern Timber Corporation seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the financial statements were issued in 2015, Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $1,000,000 in penalties. The following entry was recorded: Loss—litigation ................................................................................................... 1,000,000 Liability—litigation ........................................................................................... 1,000,000 Late in 2016, a settlement was reached with state authorities to pay a total of $600,000 to cover the cost of violations. Required: 1. Prepare any journal entries related to the change. 2. Briefly describe other steps Northern should take to report the change.
Answer:
Northern Timber Corporation
1. Journal entries to record the change:
Debit Litigation Liability $1,000,000
Credit Cash $600,000
Credit Litigation Loss $400,000
To record the payment of the litigation liability and the reduction of litigation loss by $400,000.
2. Northern can restate the 2014 and 2015 Retained Earnings to reflect the change in the litigation loss.
Explanation:
a) Data and Calculations:
Records of probable loss from ultimate settlement:
2014:
Loss—litigation 1,000,000
Liability—litigation 1,000,000
2016:
Agreed settlement = $600,000
Analysis of Entries:
Litigation Liability $1,000,000
Cash $600,000
Litigation Loss $400,000
As a group, oligopolists would always be better off if they would act collectively... Group of answer choices as if they were each seeking to maximize their own individual profits. in a manner that would prohibit collusive agreements. as a single monopolist. as a single perfectly competitive firm.
Answer:
as a single monopolist
Explanation:
The oligopolist is the market structure where there are less sellers and if any actions are taken by them so it impact the price materially and also have the impact on the competitor
So as per the given situation, it would act as a single monopolist as they would charge high price because there is no competition
Therefore the above represent the answer
Explain in your own words the following methods. The use of mathematical (formal) derivations will be rewarded with extra points.
1. Two Stage Least Squares.
2. Estimation with control variables.
3. Panel estimation with fixed effects.
Answer:
1. Two Stage Least Squares
Two stage least squares is a statistical technique of regression analysis. It is used to analyze structural equations. It is used to compute estimated values of the problematic predictors and then linear regression model of dependent variables is computed. This technique is also used in quasi experiments.
2. Estimation with control variables
A control variable is constant element which is kept unchanged throughout the process of experiment in order to get the estimation.
3. Panel estimation with fixed effects
In Panel estimation fixed effects are referred to the estimator of the coefficient in regression model. Panel estimation method with fixed effects helps estimation of equations.
Explanation:
1. Two Stage Least Squares
Two stage least squares is a statistical technique of regression analysis. It is used to analyze structural equations. It is used to compute estimated values of the problematic predictors and then linear regression model of dependent variables is computed. This technique is also used in quasi experiments.
2. Estimation with control variables
A control variable is constant element which is kept unchanged throughout the process of experiment in order to get the estimation.
3. Panel estimation with fixed effects
In Panel estimation fixed effects are referred to the estimator of the coefficient in regression model. Panel estimation method with fixed effects helps estimation of equations.
A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $48,000 for the year, and departmental sales were as follows. Allocate advertising expenses to Department T based on departmental sales. (Do not round the intermediate calculations.)
Department S $111,000
Department T 213,150
Department U 146,250
Total 470,400
Answer:
Allocated costs= $21,600
Explanation:
Giving the following information:
Department S $111,000
Department T 213,150
Department U 146,250
Total 470,400
Advertising expense totaled $48,000 for the year.
First, we need to calculate the sales proportion for Department T:
Sales proportion= 213,150 / 470,400= 0.45
Now, we can allocate costs to Department T:
Allocated costs= 48,000*0.45
Allocated costs= $21,600
Consider the following demand schedule: Price Quantity Demanded $25 20 $20 40 $15 60 $10 80 What is the price elasticity of demand between (using the arc formula) a) Price $25-$20 a) Price $20-$15 a) Price $15-$10
Answer:
3.05
1.38
0.725
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Arc elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
Price $25-$20
change in quantity demanded = 40 - 20 = 20
average of both demands = (40 + 20) /2 = 30
Midpoint change in quantity demanded = 20/30 = 0.67
midpoint change in price = change in price / average of both price
change in price = $25 - $20 = $5
average of both price = ($25 + $20) / 2 = 22.5
Price $20-$15
change in quantity demanded = 60 - 40 = 20
average of both demands = (60 + 40) /2 = 50
Midpoint change in quantity demanded = 20/50 = 0.4
midpoint change in price = change in price / average of both price
change in price = $20 - $15 = $5
average of both price = ($15 + $20) / 2 = 17.5
midpoint change in price = 5 / 17.5 = 0.29
0.4/0.29 = 1.38
Price elasticity of demand = 0.67 / 0.22 = 3.05
change in quantity demanded = 80 - 60 = 20
average of both demands = (80 + 60) /2 = 70
Midpoint change in quantity demanded = 20/70 = 0.29
midpoint change in price = change in price / average of both price
change in price = $15 - $10 = $5
average of both price = ($15 + $10) / 2 = 12.5
5/12.5 = 0.4
Sheffield Corp. owns the following assets: Asset Cost Salvage Estimated Useful Life A $540000 $42000 10 years B 201000 23500 5 years C 490000 22000 12 years What is the composite life of Sheffield's assets?
Answer:
The composite life is 9.19.
Explanation:
Below is the calculation for composite life of assets:
Composite life = Total Depreciable Cost ÷ Total Annual Depreciation
Composite life = 1143500 ÷ 124300
Composite life = 9.19
The composite life is 9.19.
A salt mine you inherited will pay you $25,000 per year for 25 years, with the first payment being made today. If you think a fair return on the mine is 7.5%, how much should you ask for it if you decide to sell it
Answer: $299574.17
Explanation:
From the question, we are given the information that a salt mine inherited will pay $25,000 per year for 25 years, with the first payment being made today. If the fair return on the mine is 7.5%, the amount that should be asked for it's to be sold goes thus:
Periodic amount = $25000
Return on mine = 7.5%
Number of years = 25
Selling amount will then be:
= 25000 + [-PV(7.50%,24,25000,0)]
= 25000 + [-PV(0.075,24,25000,0]
= $299574.17
=
A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is a normal good and good Y is an inferior good.
a. Income doubles.
b. Income quadruples and all prices double.
c. Income and all prices quadruple.
d. Income is halved and all prices double.
Answer:
a. Income doubles
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)b. Income quadruples and all prices double.
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)c. Income and all prices quadruple.
consumption of both goods will remain at the same leveld. Income is halved and all prices double.
consumption of good X will decrease (normal good) will consumption of good Y will increase (inferior good)
Mary runs over a deer with her car. The ACV of her vehicle is $7,250. To repair the damages caused in the accident, it will cost $4,375. What will the insurer likely pay Mary for this claim, assuming that her COLLISION deductible is $500, and her OTHER THAN COLLISION deductible is $200
Answer: $4175
Explanation:
The Other Than Collision coverage is the payment to repair a vehicle when the damage caused isn't when one collides with another vehicle.
In this case, since Mary runs over a deer with her car, we'll deduct the other than collision deductible from her cost of the repair and this will be:
= $4375 - $200
= $4175
The insurer will pay Mary $4175
All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement
Answer:
$123,400
Explanation:
Calculation to determine what amount on the January pro forma income statement
Freight-out $5,000
(20,000 units x 0.25)
Depreciation on Admin. Equipment $10,000
Sales and Admin Sal. $46,400
[$40,000 + (.02 x $320,000)]
Advertising $12,000
Lease $45,000
Miscellaneous $5,000
Total $123,400
Therefore what amount on the January pro forma income statement is $123,400
In 2010,Chesley Inc. acquired Corrigan Ltd. in a hostile takeover. However, the expected synergies never materialized. In 2013, Chesley decided to write-off $45 million of Goodwill on the financial statements to recognize that the Goodwill had become impaired.Which of the following items would be decreased by the impairment of Goodwill?
a- Total Assetsb- Net Incomec- Cash from Operating Activitiesd- Cash from Financing Activitiese- Cash from Investing Activities
Answer:
a- Total Assets
Explanation:
Impairment write downs are not cash related events but an accounting entry made to reduce the carrying amount when Carrying Amount of an Asset is found to be greater than the Recoverable Value of the Asset.
Carrying Amount of an Asset is Cost less Accumulated depreciation of an asset. While the Recoverable Value of the Asset is the higher of Fair Value and Value in use of an asset.
Therefore, only Total Assets decrease as a result of impairment of Goodwill.
You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift toward much freer trade. What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
A ________ is an example of a first-line manager.
Answer:
shift manager, I believe
Explanation:
office manager is an example of a first line manager
Gerritt wants to buy a car that costs $28,250. The interest rate on his loan is 5.45 percent compounded monthly and the loan is for 5 years. What are his monthly payments
Answer:
$538.96
Explanation:
The monthly payments or installation (PMT) can be simply determine using a financial calculator as :
PV = $28,250
I = 5.45 %
P/YR = 12
N = 5 x 12 = 60
FV = $ 0
PMT = ?? ($538.96)
Therefore,
The monthly payments or installation (PMT) is $538.96
thus,
Gerritt monthly payments are $538.96.