Answer:
$913.54
Explanation:
Calculation to determine the bond's price
Using Financial calculator to solve for PV( PRESENT VALUE)
N = 2 × 15 = 30
I/YR = 8%/2 = 4%
PMT = 1,000*7%*1/2=35
FV = 1000
PV=?
Hence,
PV = $913.54
Therefore the bond's price is $913.54
dự báo thị trường trên các đường bay dự kiến khai thác
Sah Inc's last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever. Its weighted average cost of capital WACC is 12%. Huxley has $5 million in short-term investments and $7 million in debt and has 2 million shares outstanding. What is the best estimate of the current intrinsic stock price
Answer:
$40.64 per share
Explanation:
The computation of the best estimate of the current intrinsic stock price is given below;
Enterprise value is
= ($1.75 × (1.25)) ÷ (1.12)^1 + ($1.75 × (1.25)^2) ÷ (1.12)^2 + (($1.75 × (1.25)^2 × 1.06) ÷ 0.06) ÷ (1.12)^2
= $42.64 million
now
market cap = enterprise value - debt + investments
= $42.64 - $7 + $5
= $40.64 million
Now finally
price = $40.64 million ÷ 1million
= $40.64 per share
In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Chester had an Elite product Cake. Use the Inquirer's Production Analysis to find Cake's production cost, (labor materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead
Answer: Hello there is a missing data below is the missing data
The production cost is $21.45.
answer : 32.175 ≈ $32
Explanation:
Using the Inquirer's Production Analysis to find Cake's production cost, (labor materials).
Period expenses and Overhead = 1/2 production cost
Minimum price = production cost + period cost + overhead cost ( 1/2 production cost )
∴ Minimum price = 21.45 + 10.725
≥ 32.175
On January 2, 2017, Concrete Master Construction, Inc. issued $500,000, ten-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the bonds after the first interest payment is made on June 30, 2017
Answer:
The carrying value of the bonds after the first interest payment is made on June 30, 2017, is $571,776
Explanation:
The carrying value of the bond after the first interest payment will be calculated as follow
Carrying value of bond = Bond Issuance value - Amortization of Bond premium
Where
Bond Issuance value = $574,540
Amortization of bond premium = Coupon payment - ( Bond issuance value x Market rate ) = ( $500,000 x 8% x 6/12 ) - ( $574,540 x 6% x 6/12 ) = $20,000 - $17,236 = $2,764
Placing values in the formula
Carrying value of bond = $574,540 - $2,764
Carrying value of bond = $571,776
Use the following information: Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $10,160 Cost of goods sold 8,210 Depreciation 510 Earnings before interest and taxes $1,440 Interest paid 122 Taxable income $1,318 Taxes 461 Net income $857 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $320 $350 Accounts payable $1,730 $1,610 Accounts rec. 1,180 1,080 Long-term debt 1,190 1,390 Inventory 2,080 1,830 Common stock 3,520 3,520 Total $3,580 $3,260 Retained earnings 730 980 Net fixed assets 3,590 4,240 Total assets $7,170 $7,500 Total liab.& equity $7,170 $7,500 What is the quick ratio for 2017?a. 89 times.b. 1.81 times.c. 1.14 times.d. 88 times.e. 2.02 times.
Answer:
See below
Explanation:
Given the information above, Quick ratio is computed as shown below;
Quick ratio = Quick assets / Current liabilities
Where,
Quick assets = Cash and cash equivalents + Marketable securities + Account receivables
Current liabilities = Bills payable + Accounts payable + Other short term liabilities
From the balance sheet, Quick assets includes cash and account receivables, while Current liabilities includes Accounts payable only
Quick ratio = $350 + $1,080 / $1,610
Quick ratio = $1,430/ $1,610
Quick ratio = 0.89 times
Therefore, the quick ratio for 2017 is 0.89 times
You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:
Answer:
price discrimination (third degree price discrimination)
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
While attending a show you are disturbed by a child behind you who talks incessantly while repeatedly kicking the back of your seat.You respond by occasionally turning around and fidgeting in your seat.What type of conflict-management style are you exhibiting?
A) collaboration
B) competition
C) accommodation
D) avoidance
E) withdrawal
Answer: avoidance
Explanation:
Conflict avoidance occurs when a person avoids conflict by not reacting to it and rather changes the subject or avoids fighting back.
Since the person doesn't confront the child whom talking incessantly while repeatedly kicking the back of the seat but rather occasionally turns around and fidgets in the seat, then the type of conflict-management style being exhibited is avoidance.
- Màng quấn PE có tính chất hóa học của hydrocacbon không tác dụng trong môi trường có axit, thuốc tím, kiềm.
- Không màu mùi, hòa tan kém trong nhiệt độ cao.
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Match these terms with their definitions.
a. The rate that reflects the provisions of the debt instrument, the credit standing of the borrowing business, and the current conditions in the credit markets and the economy as a whole.
b. The rate found in the debt contract that determines the amount of the interest payment.
c. Occurs when a bondâs issue price exceeds its face value.
d. The amount that must be repaid at maturity.
e. A type of liability which requires the issuing entity to pay the face value to the holder on the maturity date and to pay interest periodically at a specified rate.
f. Occurs when a bond is issued for an amount that is less than the principal.
g. Term referring to the date that a bondâs principal has to be repaid.
1. Bond.
2. Contract, coupon, stated rate.
3. Discount.
4. Face value, par value, principal.
5. Market rate, yield.
6. Maturity.
7. Premium.
Answer and Explanation:
The matching is as follows
a. 5. Market rate, yield. as it represent the debt instrument provisions, credit standing, and the present conditions
b. 2. Contract, coupon, stated rate, this represent that rate that could be find in the contract of the debt that measures the interest payment amount
c. 7. Premium. this is the case when the issue price of the bond is more than the face value
d. 4. Face value, par value, principal. It is the amount that should be repay at the maturity
e. 1. Bond. It is the liability that needs the entity to pay off the face value on the maturity date
f. 3. Discount. It arise when the issue price of the bond is lower than the principal
g. 6. Maturity. it refers to the date when the principal of the bond is repaid
Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm a. is headquartered. b. was formed. c. will receive consistent treatment. d. does business.
Answer: B. Was formed
Explanation:
Limited liability companies that are doing business in the states other than the states that they registered originally may have to seek the status of foreign LLC in such states.
Therefore, since Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm was formed. Therefore, the correct option is B.
While dealing with Paving, Ohio will apply the law of the state where the firm does business.
Foreign Limited liability which are formed elsewhere do operate under the the State's regulations and policy.
Business have to be registered with every state regardless of whether they have been in existence elsewhere
When the registration is done, the state regulation, trade policy and rules will be stated to the newly established business in the state.
Therefore, Option D. is correct.
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In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:
Payment for the early extinguishment of long-term notes (book value: $100 million) $108.1
Sale of common shares 352.1
Retirement of common shares 244.1
Loss on sale of equipment 4.1
Proceeds from sale of equipment 16.1
Issuance of short-term note payable for cash 20.1
Acquisition of building for cash 14.1
Purchase of marketable securities (not a cash equivalent) 10.1
Purchase of marketable securities (considered a cash equivalent) 2.1
Cash payment for 3-year insurance policy 6.1
Collection of note receivable with interest (principal amount, $22) 26.1
Declaration of cash dividends 66.1
Distribution of cash dividends declared in 2020 60.1
Required:
a. Prepare the investing activities section of Millennium's statement of cash flows for 2018.
b. Prepare the financing activities section of Millennium's statement of cash flows for 2018.
Answer and Explanation:
The preparation of the investing and the financing activities is presented below:
1) Investing activities
Proceeds from the sale of equipment 16
Purchase of building -14
Purchase of marketable securities -10
Collection of notes receivable 26
Net cash flow from investing activities 18
2) Financing activities
Payment of long term notes -108
Sales of common share 352
Retirement of shares -244
Issue short term notes payable 20
Dividend paid -60
Net cash flow from financing activities -40
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March
Answer:
Results are below.
Explanation:
Giving the following information:
It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Sales:
January= $205,000
February= $266,800
March= $316,800
Cash collection January:
Sales in cash from January= 205,000*0.75= 153,750
Total cash collection January= $153,750
Cash collection February:
Sales in cash from February= 266,800*0.75= 200,100
Sales in account from January= 205,000*0.25= 51,250
Total cash collection February= $251,350
Cash collection March:
Sales in cash from March= 316,800*0.75= 237,600
Sales in account from February= 266,800*0.25= 66,700
Total cash collection March= $304,300
Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.
Answer:
The answer is B.
Explanation:
The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.
Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.
It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.
The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the
Answer:
international model
Explanation:
In the case when the managers use the core capabilities of the organization in over to diversify into the foreign markets so this we called as the international model. As due to this the organization could capture the foreign market share this result in increased in the sales of the organization
So as per the given situation, the above represent the answer
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:
1. 70,000 shares of $14 par common stock.
2. 7,500 shares of $100 par, 7 percent, non-cumulative preferred stock.
On June 10, Weaver Corporation declared the annual cash dividend on its 7,500 shares of preferred stock and a $2 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20.
Prepare general journal entries to record the declaration and payment of the cash dividends.
Answer:
Preferred shareholder (7,500*$100)*7% $52,500
Common shareholder (70,000×$2) $140,000
Total dividend $192,500
Date General Journal Debit Credit
10 June Dividend $192,500
To dividend payable $192,500
(To record dividends payable)
20 June No entry required
01 July Dividend payable $192,500
To cash $192,500
(To record dividend payment)
31 Dec Retained earning $192,500
To dividends $192,500
(To close dividend account)
Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards
($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours
($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour $49,000 fixed overhead $37,000 variable
overhead (fixed $3.50; variable $2.60)
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)
Answer: See explanation
Explanation:
1. The total, price, and quantity variances for materials will be:
Actual Production = 11250
Standard Quantity of Direct Material Required per unit = 8
Standard Quantity of Direct Material required (SQ) = 11250*l × 8 = 90000
Standard Price per Yard (SP) = 4.4
Actual Direct Material (AQ) = 90500
Actual Price per Pound (AP) = 4.15
Total Material Variance:
= (SP × SQ) - (AP × AQ)
= (4.40 × 90000) - (4.15 × 90500)
= 396000 - 375575
= 20425
Direct Material Price Variance:
= AQ × (SP - AP)
= 90500 × (4.40 - 4.15)
= 90500 × 0.25
= 22625 Favourable
Direct materials quantity variance:
= SP × (SQ - AQ)
= 4.40 × (90000 - 90500)
= 4.40 × -500
= -2200 Unfavourable
2. The total, price, and quantity variances for labor will be:
Actual Production = 11250
Standard Hours Required per unit = 1.2
Standard Hours required (SH) = 11250 × 1.20 = 13500
Standard Rate per Hour (SR) = 13.4
Actual Hours required (AH) = 14250
Actual Rate per Hour (AR) = 14.1
Total Labour Variance:
= (SR × SH) - (AR × AH)
= (13.40 × 13500) - (14.10 × 14250)
= 180900 - 200925
= -20025 Unfavourable
Dircet Labour RateVariance:
= AH × (SR - AR)
= 14250 × (13.40 - 14.10)
= 14250 × -0.7
= -9975 Unfavourable
Direct Labour efficiency variance:
= SR × (SH - AH)
= 13.40 × (13500 - 14250)
= 13.40 × -750
= -10050 Unfavourable
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.) a.Calculate the OCF. (Do not round intermediate calculations.) b.What is the depreciation tax shield
Full question:
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales $ 687,900
Costs $442,800
Depreciation $115,400
EBIT $
Taxes (30%)
Net income $
OCF
What is the depreciation tax shield?
Answer:
Operating Cash Flow(OCF)= $206190
Depreciation tax shield = $34620
Explanation:
To calculate Depreciation tax shield:
Depreciation×tax rate= $115400×0.30=$34620
Operating Cash flow(OCF)= Earnings before interest and taxes(EBIT)+depreciation - income tax expense
So we calculate EBIT and Income tax expense
EBIT= Sales - cost of good sold - depreciation expense
= $ 687,900-$442,800-$115,400= $129,700
Income tax expense= (Sales - cost of goods sold - depreciation expense) × tax rate
=($687900-$442800-$115400)×0.30
=$38910
Therefore, Operating Cash flow(OCF)= $129,700+$$115,400-$38910= $206190
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18.
Requied:
a. Determine each alternativeâs break-even point in units.
b. At what volume of output would the two alternatives yield the same profit?
c. If expected annual demand is 10,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $36,000
Unitary variable cost= $7
Selling price= $18
Alternative B:
Fixed costs= $31,000
Unitary variable cost= $11
Selling price= $18
First, we need to calculate the break-even point in units for each alternative:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 36,000 / (18 - 7)= 3,273
Alternative B= 31,000 / (18 - 11)= 4,429
Now, we equal the indifference point:
36,000 + 7x = 31,000 + 11x
x= number of units
5,000 = 4x
1,250 = x
The indifference point is 1,250 units.
Finally, 10,000 units are sold:
Alternative A:
Net income= 10,000*(18 - 7) - 36,000
Net income= $74,000
Alternative B:
Net income= 10,000*(18 - 11) - 31,000
Net income= $39,000
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Nathan, George, and Bill have formed a partnership and the partnership agreement states that Nathan will receive 40% of the profits and George and Bill will share the remainder equally. During the current year, the partnership earns $120,000. What is the closing entry to record the allocation of partnership income
Answer:
Profits will be distributed in the following way:
Nathan will receive $120,000 x 40% = $48,000
George will receive $120,000 x 30% = $36,000
Bill receive $120,000 x 30% = $36,000
Total = $120,000
Journal entry
Dr Income summary 120,000
Cr Capital, Nathan 48,000
Cr Capital, George 36,000
Cr Capital, Bill 36,000
The BRS Corporation makes collections on sales according to the following schedule:45% in month of sale50% in month following sale5% in second month following saleThe following sales have been budgeted:Sales April $ 160,000May $ 180,000June $ 170,000Budgeted cash collections in June would be:___________a) $170,800b) $166,500c) $170,000d) $174,500
Answer:
$170,500
Explanation:
Calculation to determine what the Budgeted cash collections in June would be
Cash collections for June:March credit sales collected in June ($160,000 × 45%)$72,000
February credit sales collected in June ($180,000 × 50%) $90,000
January credit sales collected in June ($170,000 × 5%) $8,500
Total cash collections in June $170,500
Therefore the Budgeted cash collections in June would be:$170,500
The unadjusted trial balance of PS Music as of July 31, 2016, along with the adjustment data for the two months ended July 31, 2016, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 9,945.00
2 Accounts Receivable 4,150.00
3 Supplies 275.00
4 Prepaid Insurance 2,475.00
5 Office Equipment 7,500.00
6 Accumulated Depreciation
-Office Equipment 50.00
7 Accounts Payable 8,350.00
8 Wages Payable 140.00
9 Unearned Revenue 3,600.00
10 Common Stock 9,000.00
11 Retained Earnings
12 Dividends 1,750.00
13 Income Summary
14 Fees Earned 21,200.00
15 Wages Expense 2,940.00
16 Office Rent Expense 2,550.00
17 Equipment Rent
Expense 1,375.00
18 Utilities Expense 1,215.00
19 Music Expense 3,610.00
20 Advertising Expense 1,500.00
21 Supplies Expense 925.00
22 Insurance Expense 225.00
23 Depreciation Expense 50.00
24 Miscellaneous Expense 1,855.00
25 Totals 42,340.00 42,340.00
Required:
1. (Optional) Using the data from Chapter 3, prepare an end-of-period spreadsheet on a sheet of paper or using spreadsheet software.
2. Prepare an income statement, a retained earnings statement, and a balance sheet.*
3.
A. Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
B. Post the closing entries. The income summary account is #34 in the ledger of PS Music. Indicate closed accounts by inserting a 0 (zero) in either of the Balance columns opposite the closing entry. No entry is required in theItem column.
4. Prepare a post-closing trial balance.
Answer:
PS Music
1. End of Period Spreadsheet
13 Income Summary (Temporary accounts)
14 Fees Earned 21,200.00
15 Wages Expense 2,940.00
16 Office Rent Expense 2,550.00
17 Equipment Rent Expense 1,375.00
18 Utilities Expense 1,215.00
19 Music Expense 3,610.00
20 Advertising Expense 1,500.00
21 Supplies Expense 925.00
22 Insurance Expense 225.00
23 Depreciation Expense 50.00
24 Miscellaneous Expense 1,855.00
Statement of Retained Earnings (Temporary accounts)
11 Retained Earnings
12 Dividends 1,750.00
Balance Sheet (Permanent accounts)
1 Cash 9,945.00
2 Accounts Receivable 4,150.00
3 Supplies 275.00
4 Prepaid Insurance 2,475.00
5 Office Equipment 7,500.00
6 Accumulated Depreciation
-Office Equipment 50.00
7 Accounts Payable 8,350.00
8 Wages Payable 140.00
9 Unearned Revenue 3,600.00
10 Common Stock 9,000.00
11 Retained Earnings
2. PS Music
Income Statement for the year ended July 31, 2016
14 Fees Earned $21,200.00
15 Wages Expense $2,940.00
16 Office Rent Expense 2,550.00
17 Equipment Rent Expense 1,375.00
18 Utilities Expense 1,215.00
19 Music Expense 3,610.00
20 Advertising Expense 1,500.00
21 Supplies Expense 925.00
22 Insurance Expense 225.00
23 Depreciation Expense 50.00
24 Miscellaneous Expense 1,855.00 $16,245.00
Net income $4,955.00
Statement of Retained Earnings for the year ended July 31, 2016
11 Retained Earnings
Net income $4,955.00
12 Dividends 1,750.00
Retained Earnings $3,205.00
Balance Sheet as of July 31, 2016
1 Cash 9,945.00
2 Accounts Receivable 4,150.00
3 Supplies 275.00
4 Prepaid Insurance 2,475.00
Current assets $16,845.00
5 Office Equipment 7,500.00
6 Accumulated Depreciation (50.00) $7,450.00
Total assets $24,295.00
Liabilities
7 Accounts Payable 8,350.00
8 Wages Payable 140.00
9 Unearned Revenue 3,600.00 $12,090.00
10 Common Stock 9,000.00
11 Retained Earnings 3,205.00 $12,275.00
Total liabilities and equity $24,295.00
3. A. Closing Journal Entries:
14 Debit Fees Earned $21,200.00
13 Credit Income Summary $21,200.00
To close the Fees Earned to Income Summary.
13 Debit Income Summary $16,245.00
Credit:
15 Wages Expense 2,940.00
16 Office Rent Expense 2,550.00
17 Equipment Rent Expense 1,375.00
18 Utilities Expense 1,215.00
19 Music Expense 3,610.00
20 Advertising Expense 1,500.00
21 Supplies Expense 925.00
22 Insurance Expense 225.00
23 Depreciation Expense 50.00
24 Miscellaneous Expense 1,855.00
To close the expenses to the Income Summary.
13 Debit Income Summary $4,955.00
11 Credit Retained Earnings $4,955.00
To close the net income to retained earnings.
11 Debit Retained Earnings $1,750.00
12 Credit Dividends $1,750.00
To close the dividends to retained earnings.
B. Posting the closing entries:
14 Fees Earned
ACCOUNT TITLE DEBIT CREDIT
Balance 21,200.00
Income Summary 21,200.00
15 Wages Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 2,940.00
Income Summary 2,940.00
16 Office Rent Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 2,550.00
Income Summary 2,550.00
17 Equipment Rent Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 1,375.00
Income Summary 1,375.00
18 Utilities Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 1,215.00
Income Summary 1,215.00
19 Music Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 3,610.00
Income Summary 3,610.00
20 Advertising Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 1,500.00
Income Summary 1,500.00
21 Supplies Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 925.00
Income Summary 925.00
22 Insurance Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 225.00
Income Summary 225.00
23 Depreciation Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 50.00
Income Summary 50.00
24 Miscellaneous Expense
ACCOUNT TITLE DEBIT CREDIT
Balance 1,855.00
Income Summary 1,855.00
11 Retained Earnings
ACCOUNT TITLE DEBIT CREDIT
Income Summary 4,955.00
Dividends 1,750.00
Balance 3,205.00
12 Dividends
ACCOUNT TITLE DEBIT CREDIT
Balance 1,750.00
11 Retained Earnings 1,750.00
4. Post-Closing Trial Balance
August 1, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 9,945.00
2 Accounts Receivable 4,150.00
3 Supplies 275.00
4 Prepaid Insurance 2,475.00
5 Office Equipment 7,500.00
6 Accumulated Depreciation
-Office Equipment 50.00
7 Accounts Payable 8,350.00
8 Wages Payable 140.00
9 Unearned Revenue 3,600.00
10 Common Stock 9,000.00
11 Retained Earnings 3,205.00
Total 24,345.00 24,345.00
Explanation:
a) Data and Calculations:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 9,945.00
2 Accounts Receivable 4,150.00
3 Supplies 275.00
4 Prepaid Insurance 2,475.00
5 Office Equipment 7,500.00
6 Accumulated Depreciation
-Office Equipment 50.00
7 Accounts Payable 8,350.00
8 Wages Payable 140.00
9 Unearned Revenue 3,600.00
10 Common Stock 9,000.00
11 Retained Earnings
12 Dividends 1,750.00
13 Income Summary
14 Fees Earned 21,200.00
15 Wages Expense 2,940.00
16 Office Rent Expense 2,550.00
17 Equipment Rent Expense 1,375.00
18 Utilities Expense 1,215.00
19 Music Expense 3,610.00
20 Advertising Expense 1,500.00
21 Supplies Expense 925.00
22 Insurance Expense 225.00
23 Depreciation Expense 50.00
24 Miscellaneous Expense 1,855.00
25 Totals 42,340.00 42,340.00
Explain the concept of the voice of the customer (VOC). Why would a clear VOC process be important in the supplier to receiving organization relationship
Answer:
See the explanation below.
Explanation:
a. Explain the concept of the voice of the customer (VOC).
Voice of the customer (VOC) can be described as a detailed process of collecting data on expectations, preferences, and aversions of a customer.
VOC means emphasizing the consumer, their opinions, experiences, and input about the brand of a company.
b. Why would a clear VOC process be important in the supplier to receiving organization relationship?
Voice of Customer process gives a company the opportunity to listen to each customer, act on their feedback, and analyze the data to improve operations. Therefore, the company would be able to avoid potential problems for future customers by being attentive and responsive, and it can obtain immediate benefit from customers who provide positive feedback.
The ability to measure a customer's experience at important touch points in real time is one of the key advantages of VOC process. Therefore, one of the best things a company can do is just ask its customers what they want and create a relationship from there.
Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. In terms of economic efficiency in the market for pollution, having the government auction the permits off is distributing them to firms. True or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth. True False
Answer:
1. False
2. True
Explanation:
Tradable permits issued to firms, there will be no effect on economic efficiency for the market of pollution permit. The revenue of government will be increase by selling and auctioning those permits.
Rules of Debit and Credit The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit Stockholders' equity: Common Stock Credit Retained Earnings Credit Dividends Debit Credit Income statement accounts: Revenue
The table represents the normal debit balance of the following accounts also the increment or decrement related to these accounts is as follows:
The following information should be considered:
The asset, dividend & expenses contains the normal debit balance. And, the liability & equity should contain the normal credit balance.Particulars Increase decrease normal balance
Asset debit credit debit
liability credit debit credit
common stock credit debit credit
retained earnings credit debit credit
dividend debit credit debit
revenue credit debit credit
expense debit credit debit
In this way, the above table should be presented.
Learn more about the debit here: brainly.com/question/12269231
Lesco's is evaluating a project that has a different level of risk than the overall firm. This project should be evaluated: Group of answer choices
Answer:
3. using a beta commensurate with the project's risks.
Explanation:
In the case when the project is evaluated so there is the different type of the risk instead of the total firm so here the project should be evaluated via beta commensurate alonhg with the risk of the project. As each and very project has the different level of risk also there is a different between the beta as if we compared to the beta of the market, beta of the firm etc
Hence, the above represent the answer
The process for converting present values into future values is called________________.
Answer:
Compounding.
Explanation:
Compounding is typically an accounting process used for the conversion of present values of an asset, investment or money into future values.
Generally, a compound interest is calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods. This interests is compounded for a certain number of times such as daily, weekly, quarterly or annually.
Mathematically, to find the future value from the present value of an asset or investment, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value. P is the principal or starting amount. r is annual interest rate. n is the number of times the interest is compounded in a year. t is the number of years for the compound interest.The discount rate is the interest rate banks charge their best customers. the interest rate banks charge each other for overnight loans. the interest rate the U.S. Treasury pays on Treasury Bills. the interest rate the Fed charges to banks for loans from the Fed.
