Answer:
King Corporation
Journal Entries:
a. Debit Cash $594,000
Credit Common stock $330,000
Credit Additional Paid-in Capital- Common $264,000
To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.
b. Debit Cash $180,000
Credit 10% Preferred stock $90,000
Credit Additional Paid-in Capital - Preferred $90,000
To record the issuance of 9,000 shares of the preferred stock at $20 per share.
c. Debit Cash $45,000
Credit 10% Preferred stock $10,000
Credit Additional Paid-in Capital- Preferred $10,000
Credit Common stock $12,500
Credit Additional Paid-in Capital-Common $12,500
To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Explanation:
Data and Analysis:
a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000
22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000
9,000 shares of the preferred stock at $20 per share.
c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500
1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
The Chewbacca Starship Company had the following transactions during the month of December:
a. purchased inventory on account for $230,000 (assume Chewbacca uses a perpetual inventory system)
b. paid $57,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $154,000 to credit customers for $285,000
d. collected $265,000 in cash from credit customers
e. paid suppliers of inventory $210,000.
Required:
Post the above transactions to the T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $73,500, $60,000, and $39,000, respectively.
Answer:
The Chewbacca Starship Company
T-accounts:
Cash
Date Account Titles Debit Credit
Dec. 1 Beginning balance $73,500
Dec. 31 Salaries expense $57,000
Dec. 31 Accounts receivable 265,000
Dec. 31 Accounts payable 210,000
Accounts receivable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $60,000
Dec. 31 Sales revenue 154,000
Dec. 31 Cash $265,000
Accounts payable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $39,000
Dec. 31 Inventory 230,000
Dec. 31 Cash $210,000
Inventory
Date Account Titles Debit Credit
Dec. 31 Accounts payable $230,000
Sales revenue
Date Account Titles Debit Credit
Dec. 31 Accounts receivable $154,000
Salaries Expense
Date Account Titles Debit Credit
Dec. 31 Cash $57,000
Explanation:
a) Data and Analysis:
a. Inventory $230,000 Accounts payable $230,000
b. Salaries expense $57,000 Cash $57,000
c. Accounts receivable $154,000 Sales revenue $154,000
d. Cash $365,000 Accounts receivable $265,000
e. Accounts payable $210,000 Cash $210,000
Opening balances:
Cash $73,500
Accounts receivable $60,000
Accounts payable $39,000
Oriole Company purchased for $8,767,800 a mine that is estimated to have 48,710,000 tons of ore and no salvage value. In the first year, 2,830,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $enter the depletion cost per ton amount in dollars per ton
Answer:
the depletion cost per unit is $0.18 per ton
Explanation:
The computation of the depletion cost per unit is shown below;
We know that
Depletion cost per ton is
= (Total cost - salvage value) ÷ total estimated units
= ($8,767,800 - $0) ÷ 48,710,000
= $0.18 per ton
Hence, the depletion cost per unit is $0.18 per ton
we simply applied the above formula so that the depletion cost per ton could come
Activity A1 takes 5 weeks, A2 takes 7 weeks, and A3 takes 4 weeks with a 50% probability and 10 weeks with a 50% probability. What is the project completion time under the best-case scenario, that is, A3 is early and takes 4 weeks
Answer:
12
Explanation:
The computation of the project completion time under the best-case scenario is shown below;
= Activity A1 weeks taken + activity A2 weeks taken
= 5 weeks + 7 weeks
= 12
We simply added the time taken by activity 1 and activity 2 so that the project completion time could come
Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.
a. Invested cash in the business, $3,100.
b. Bought equipment for cash, $500.
c. Bought equipment on account, $800.
d. Paid cash on account for equipment purchased in transaction (c), $300.
e. Withdrew cash for personal use, $700.
Answer:
Sheryl Hansen
T- Accounts
Cash
Account Titles Debit Credit
a. Sheryl Hasen, Capital $3,100
b. Equipment $500
d. Accounts Payable 300
e. Sheryl Hasen, Drawings 700
Sheryl Hasen, Capital
Account Titles Debit Credit
a. Cash $3,100
Equipment
Account Titles Debit Credit
b. Cash $500
c. Accounts Payable 800
Accounts Payable
Account Titles Debit Credit
c. Equipment $800
d. Cash $300
Sheryl Hasen, Drawings
Account Titles Debit Credit
e. Cash $700
Explanation:
a) Data and Analysis:
a. Cash $3,100 Sheryl Hasen, Capital $3,100
b. Equipment $500 Cash $500
c. Equipment $800 Accounts Payable $800
d. Accounts Payable $300 Cash $300
e. Sheryl Hasen, Drawings $700 Cash $700
Which pathways are part of the Human Services career cluster? Select all that apply.
o Counseling and Mental Health Services
o Support Services
o Family and Community Services
o Early Childhood Development and Services
o Therapeutic Services
o Consumer Services
o Personal Care Services
Answer:
consumer services
counseling and mental health services
early childhood development and services
family and community services
personal care services.
Explanation:
The Human Services Career Cluster are simply skills that prepares one to take on jobs that cater for human and family needs. This job could either be as a social worker, pedicurist, etc, as human needs will be addressed.
The pathways which are part of the Human Services career cluster include consumer services
counseling and mental health services
early childhood development and services
family and community services
personal care services.
Answer:
A,C,D,F,G
Explanation:
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours. If it decides to produce 60 barrels of oil, how many bushels of corn can it produce
Answer: 10 bushels
Explanation:
If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:
= 100 / 100
= 1 work hour
For bushels however, 1 worker hour produces:
= 25 / 100
= 0.25 bushels of corn
If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.
Bushels of corn produced is therefore:
= 40 * 0.25
= 10 bushels
Suggest strategies to succeed in outsourcing its HR services
Answer:
The answer is below.
Explanation:
The strategies of a company to succeed in outsourcing its HR services
1. Internal Analysis and Baselining: this involves the cost and value analysis of using internal HR vs Outsourcing HR
2. Understanding Cost vs. Value of HR: knowing what the cost and value of outsourcing entails can go a long way in determining whether it offers the value the company wants
3. Identifying Core Competencies: realizing the competencies of outsourcing HR particularly in the area of competitive advantage of the company.
4. Aligning Technology to Support Operational Objectives: utilization of outsourcing HR technology and operational support ensure the company doesn't cure additional coast
5. Agreeing on Expectations with HR Outsourcer: knowing what to expect and agreed on the outcome of the outsourcing process is one of the key strategies.
6. Addressing and Enforcing Performance Metrics: Also, the expected performance and what is needed to be achieved should be discussed and ensured it is ultimately accomplished.
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 32,842 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Answer:
$164,210 decrease
Explanation:
Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=
Differential cost increase or decrease=$525,472-$361,262
Differential cost increase or decrease=$164,210 decrease
Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease
MFK Corp. wants to raise capital and is considering an offer of bonds and debentures. It is not sure of a particular disclosure requirement, so MFK poses its question to the SEC and requests an interpretation letter. If the SEC issues an interpretive letter addressing MFK's question and MFK follows the statements contained in the letter, MFK cannot be penalized should the advice be incorrect.
a. True
b. False
Answer:
B FALSEEEEEEEEEEEEEEEEEEEE
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year. a. The amount of suspended losses carried forward to the year of the sale is $fill in the blank 1 20,000 . b. What amount of the suspended losses is allocated to Activity D
Answer:
a. -$20,000
b. -$2,000
Explanation:
a. The amount of suspended losses carried forward to the year:
= 30,000 + (-30,000) + (-15,000) + (-5,000)
= -$20,000
b. Suspended losses allocated to Activity D:
First find the total amount of losses:
= -30,000 - 15,000 - 5,000
= -$50,000
Activity B accounted for -$5,000 of this loss.
Suspended losses to be allocated to D would therefore be:
= -5,000 / - 50,000 * -20,000
= -$2,000
"Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.12 per unit, and the variable labor cost is $1.9 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $420,000 during a year in which total production is 189,000 units. What are the total costs for the year? c. If the selling price is $8.55 per unit, what is the NSI break-even on a cash basis? d. If depreciation is $94,500 per year, what is the accounting break-even point?"
Answer:
Night Shades Inc. (NSI)
a. The variable cost per unit is:
= $3.02.
b. The total costs for the year is:
= $990,780.
c. The NSI break-even on a cash basis is:
= $503,091.
d. The accounting break-even point is:
= $647,150.
Explanation:
a) Data and Calculations:
Variable costs per unit:
Materials = $1.12
Labor = 1.90
Total = $3.02
Total production units = 189,000
Total variable costs = $570,780
Fixed costs = $420,000
Total costs = $990,780
Per unit:
Selling price = $8.55
Variable costs 3.02
Contribution $5.53
Contribution margin in percentage = $5.53/$8.55 * 100 = 64.7%
Fixed costs on cash basis = FC - Depreciation = $325,500 ($420,000 - $94,500)
Break-even point on a cash basis = $325,5000/0.647 = $503,091
Break-even point in sales dollars = $420,000/0.647 = $647,150
Additional data for the current year are as follows: (a) Net income, $75,800. (b) Depreciation reported on income statement, $38,000. (c) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. (d) Bonds payable for $75,000 were retired by payment at their face amount. (e) 2,500 shares of common stock were issued at $30 for cash. (f) Cash dividends declared and paid, $40,000. (g) Investments of $100,000 were sold for $125,000.
Answer:
Note: Full question is attached as picture below
Barry Company
Statement of Cash Flows
For the Tear Ended December 31, Year 2
Cash flows from operating activities:
Net income $75,800
Adjustments to reconcile net income to
net cash flow from operating activities:
Depreciation expense $38,000
Gain on sale of investments -$25,000
Changes in current operating
assets & liabilities:
Decrease in Accounts receivable $9,200
Increase in inventories -$16,000
Increase in Accounts payable $12,500
Net cash flow from operating activities $94,500
Cash flows from investing activities:
Sale of investments $125,000
Purchase of equipment -$150,000
Net cash flow used for investing activities -$25,000
Cash flows from financing activities:
Retirement of bonds payable -$75,000
Issuance of common stock $75,000
Payment of dividends -$40,000
Net cash flow used for financing activities -$40,000
Net increase in cash $29,500
Cash at the beginning of the year $42,500
Cash at the end of the year $72,000
Decentralizing Group of answer choices Is a trend that creates a head-quarter office Organizes business in independent business units Creates a more complex and less robust organization Decisions are made at the headquarters
On January 1, a company issued and sold a $399,000, 9%, 10-year bond payable, and received proceeds of $394,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
Answer:
Cash Interest payable on Bond = $399,000*4.5% = $17,955
Discount to be amortized = ($399,000-$394,000)/20 = $250
Interest expense = $17,955+$250 = $18,205
Date Journal Entry Debit Credit
Interest Expense $18,205
Discount on bonds payable $250
Cash $17,955
Rhoda Morgenstern just settled an insurance claim. The settlement calls for increasing payments over a 20-year period. The first payment will be paid one year from now in the amount of $50,000. The following payments will increase by 2 percent annually. What is the value of this settlement to Rhoda today if she can earn 5 percent on her investments
Answer:
PV = $733,271
Explanation:
From the given information:
The annual payment (P) = $50,000
number of years (n) = 20
The growth percentage = 2% = 0.02
Rate of percentage earned = 5% = 0.05
Using the formula illustrated below to determine the Present Value (PV) of a growing annuity;
[tex]PV = \dfrac{P}{r-g}\Big ( 1 - \Big ( \dfrac{1+g}{1+r} \Big) ^n \Big)[/tex]
[tex]PV = \dfrac{50000}{0.05-0.02}\Big ( 1 - \Big ( \dfrac{1+0.02}{1+0.05} \Big) ^{20} \Big)[/tex]
[tex]PV = \dfrac{50000}{0.03}\Big ( 1 - \Big ( \dfrac{1.02}{1.05} \Big) ^{20} \Big)[/tex]
[tex]PV =1666666.667 \Big ( 1 - \Big ( 0.9714285714 \Big) ^{20} \Big)[/tex]
[tex]PV =1666666.667 \Big ( 1 -0.5600379453 \Big)[/tex]
[tex]PV =1666666.667 \Big (0.4399620547 \Big)[/tex]
[tex]PV =\$733270.0913 \\ \\ \mathbf{PV \simeq \$733,271}[/tex]
Fixed costs are $1500000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?
Answer:
$6,000,000
Explanation:
Calculation to determine the break-even point in dollars
Using this formula
Break-even point (Dollars)=Fixed costs/(1-Variable costs percentage of unit selling price)
Let plug in the formula
Break-even point (Dollars)=$1,500,000/ (1-.75)
Break-even point (Dollars)=$1,500,000/.25
Break-even point (Dollars)=$6,000,000
Therefore the break-even point in dollars is $6,000,000
Harvey Dent wants to sell the $43,000 TriForcebonds he purchased 3 years ago at par value. The bonds have a 2.80% coupon, 9 years to maturity, and are trading at a 2.45% yield to maturity. If Harvey sells the bonds today, his proceeds from the sale would result in:
Answer: $1203
Explanation:
Based on the information given in the question, the proceeds gotten from the sales if Harvey sells the bonds today will be:
Formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
= PV(2.45%, 9, -43000 × 2.8%, -43000)
= 44203
Therefore, the proceeds will be the difference between the selling price and the purchase price which will be:
= $44203 - $43000
= $1203
The total value of the bond, or the amount you'll earn if you sell it, is the sum of the face value and the bond's added interest value. The coupon for each bond specifies the interest rate.
The answer, $1203 is the proceeds from the sale would result in.
If Harvey sells the bonds today, based on the evidence presented in the question, the revenues will be:
The formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
[tex]= PV(2.45, 9, - 43000 \text{ x } 0.028, - 43000)\\= 44203[/tex]
As a result, the revenues will be equal to the difference between the selling and buying prices, which will be:
[tex]= 44203 - 43000= $1203[/tex]
For more information regarding the bond proceeds, refer to the link:
https://brainly.com/question/13407939
The comparative balance sheets for Pina Colada Corp. show these changes in noncash current asset accounts: accounts receivable decreased $78,500, prepaid expenses increased $28,200, and inventories increased $41,700. Compute net cash provided by operating activities using the indirect method, assuming that net income is $226,500.
Answer:
Cash Flow from Operating Activities
Net Income $226,500
Decrease in Accounts Receivable $78,500
Increase in Prepaid Expenses -$28,200
Increase in Inventories -$41,700
Cash Provided by Operating Activities $235,100
Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. A. The trader has lost $625. B. The trader has lost $6,250 C. The trader has made $6,250 D. The trader has lost $66,287.88
Answer:
B. The trader has lost $6,250
Explanation:
Calculation to determine the amount the trader has loss
First step
You will buy at $1.75 and spend= (1.75 × 62,500) You will buy at $1.75 and spend= $109,375
Second step
But you could buy and spend= (1.65 × 62,500)
But you could buy and spend= $103.125
Now let calculate the amount the trader has loss
Loss=$103,125 - $109,375
Loss = -$6,250
Therefore The trader has lost $6,250
The new proposed project needs to use an expensive medical equipment that is already owned by the company. The purchase price of this equipment is $637,000 . The company also spent $124,000 to update its operating software. The equipment recieved a recent market bid from an interested buyer of $718,000. The current book value of $578,000. If the company decides to use this equipment for the new project , what value should we use for this equipment to be included in the initial cash flow of the project
Answer:
$718,000
Explanation:
Based on the information given we were told that the equipment received a MARKET BID from a buyer of the amount of $718,000 which means that in a situation where the company choose to use this equipment for the new project the VALUE that we should use in order for this equipment to be included in the INITIAL CASH FLOW of the project will be the amount of $718,000 which represent the recent MARKET BID amount received from the Interested buyer.
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Lynch Company began operations in 2019. The company reported $24,000 of depreciation expense on its income statement in 2019 and $26,000 in 2020. On its tax returns, Lynch deducted $32,000 for depreciation in 2019 and $37,000 in 2020. The 2020 tax return shows a tax obligation (liability) of $12,000 based on a 25% tax rate.
Required:
Determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.
Answer:
2019 $8,000
2020 $19,000
Explanation:
Calculation to determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.
Calculation for 2019 Temporary differences
2019
Using this formula
2019 Temporary differences = 2019 Depreciation- 2019 depreciation expense
Let plug in the formula
2019 Temporary differences =$32,000 - $24,000
2019 Temporary differences= $8,000
Calculation for 2020 Temporary differences
Using this formula
2020 Temporary differences=(2019 Depreciation+2020 Depreciation)-( 2019 Depreciation expense+2020 Depreciation expense)
Let plug in the formula
2020 Temporary differences= ($32,000 + $37,000) - ($24,000 + $26,000)
2020 Temporary differences=$69,000-$50,000
2020 Temporary differences= $19,000
Therefore the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020 will be $8,000 and $19,000
A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment
Answer:
the annual rate of return is 22.50%
Explanation:
The computation of the annual rate of return is shown below:
Average investment is
= ($900,000 + $300,000) ÷ 2
= $600,000
Now
Annual rate of return is
= Annual net income ÷ Average investment
= $135,000 ÷ $600,000
= 22.50%
hence, the annual rate of return is 22.50%
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 182,000 Interest expense 12,000 Rent expense 22,000 Consulting revenue 408,000
Answer:
I don't know thish question
Cameron, Inc. held 1,000 shares of its own $10 par value common stock purchased for $20 per share. In March, Cameron sold 10 shares at $20 per share. The journal entry to record the sale of treasury stock would include a (debit/credit) ________ to Treasury Stock in the amount of ________.
Answer:
Credit, $200
Explanation:
The journal entry would be:
Date Account Debit Credit
Cash $200
(10 shares*$20)
Treasury stock $200
(To record the sale of treasury stock)
Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.
Answer:
B. Bonds are typically less risky than stocks.
Explanation:
Answer: B. Bonds are typically less risky than stocks
Explanation:a. p. e. x. (just took the test)
Your opinion is that CSCO has an expected rate of return of 0.15. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of return is 0.115. According to the Capital Asset Pricing Model, this security is
Answer:
Overpriced
Explanation:
The computation is shown below;
As we know that
Expected rate of return = risk free rate + beta × ( expected market rate of return - risk free rate )
= 0.04 + 1.3 × (0.115 - 0.04)
= 0.1375
As the return of the security is 0.1375 i.e. more than the expected rate of return i.e. 0.115
Hence, it is overpriced
MAD Inc. has a capital structure consisting of 40 percent debt and 60 percent common equity financing. The company has $400 million in net income and plans to pay out 25 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock
Answer:
$500 million
Explanation:
Retained earnings = Income * (1 - Dividend payout percentage)
Retained earnings = $400 million * (1-0.25)
Retained earnings = $400 million * 0.75
Retained earnings = $300 million
Amount that can be raise without selling new stock: Retained earnings / % of equity financing in total capital
= $300 million / 60%
= $300 million / 0.60
= $500 million
Information you might study in a particular class is called (blank)
an elective
a club
curriculum
an internship
Answer:
curriculum is the correct answer right no
Answer:
Information you might study in a particular class is called curriculum
You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenence margin is $2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call
Answer:
The correct answer is "43.875". A further explanation is provided below.
Explanation:
The given values are:
Initial margin,
= $3,375
Maintenance margin,
= $2,500
Barrels of oil,
= 1,000
Now,
The loss on the position will be:
= [tex]3375-2500[/tex]
= [tex]875[/tex] ($)
then,
⇒ [tex]1000 (P - 43) = 875[/tex]
⇒ [tex]1000P-43000=875[/tex]
On adding "43000" both sides, we get
⇒ [tex]1000P-43000+43000=875+43000[/tex]
⇒ [tex]1000P=43875[/tex]
⇒ [tex]P=\frac{43875}{1000}[/tex]
⇒ [tex]=43.875[/tex]