Answer:
Explanation:
1.
From the given information;
The spot rate for maturity at 0.5 year \((X_1) = 4\%/2 = 2\%\)
The spot rate for maturity at 1 year is:
= \(\dfrac{22.5}{(1+X_1)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000\)
= \(\dfrac{22.5}{(1+0.02)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000\)
= \(\dfrac{22.5}{(1+0.02)}+ \dfrac{1022.5}{(1+X_2)^2}=1000\)
By solving for \(X_2\);
\(X_2\) = 2.253%
The spot rate for maturity at 1.5 years is:
\(= \dfrac{25}{(1+X_1)}+ \dfrac{25}{(1+X_2)^2}+ \dfrac{1000 + 25}{(1+X_3)^3}=1000\)
Solving for \(X_3\)
\(X_3\) = 2.510%
The spot rate for maturity at 2 years is:
\(= \dfrac{27.5}{(1+X_1)}+ \dfrac{27.5}{(1+X_2)^2}+ \dfrac{27.5}{(1+X_3)^3} +\dfrac{1000+27.5}{(1+X_4)^4} =1000\)
By solving for \(X_4\);
\(X_4\) = 2.770%
Recall that:
Coupon rate = yield to maturity for par bond.
Thus, the annual coupon rates are 4%, 4.5%, 5%, and 5.5% for 0.5, 1, 1.5, 2 years respectively.
2.
For n years, the price of n-bond is:
\(= \dfrac{cash \ flow \ at \ year \ 1}{1+X_1}+ \dfrac{cash \ flow \ at \ year \ 2}{(1+X_2)^2}+... + \dfrac{cash \ flow \ at \ year \ b}{(1+X_n)^n}\)
Thus, for 2 years bond implies 4 periods;
∴
\(= \dfrac{40}{1+0.02}+ \dfrac{40}{(1+0.02253)^2} + \dfrac{40}{(1+0.0252)^3}+ \dfrac{40}{(1+0.0277)^4}\)
= $1047.024
3.
Suppose there exist no-arbitrage, then the price is:
\(= \dfrac{0}{(1+0.02)}+\dfrac{1000}{(1+0.02253)^2}\)
= 956.4183
Since the market price < arbitrage price.
We then consider 0.5, 1-year bonds from the portfolio
Now;
weight 2 × 1000 + weight 2 × 22.5 = 1000
weight 2 × 1022.5 = 1000
weight 2 = 1022.5/1000
weight 2 = 0.976
weight 1 + weight 2 = 1
weight 1 = 1 - weight 2
weight 1 = 1 - 0.976
weight 1 = 0.022
The price of a 0.5-year bond will be:
\(= \dfrac{1000}{(1+0.02\%)} \\ \\ =\mathbf{980.39}\)
The price of a 1-year bond will be = 1000
Market value on the bond portfolio = 0.022 × price of 0.5 bond + 0.978 × price 1-year bond = 956.42
= 0.022 × 980.39 + 0.978 × 1000
= 956.42
So, to have arbitrage profit, the investor needs to purchase 1 unit of the 1-year zero-coupon bond as well as 0.022 units of the 0.5-year bond. Then sell 0.978 unit of the 1-year bond.
Then will he be able to have an arbitrage profit of $56.42
4.
The one-period ahead forward rates can be computed as follows:
Foward rate from 0 to 0.5 \(X_1\) = 2%
Foward rate from 0.5 to 1
\((1+X_2)^2 = (1+X_1) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )\)
\((1+0.0225)^2 = (1+0.02) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )\)
Foward rate from 0.5 to 1 = 2.5%
Foward rate from 1 to 1.5
\((1+X_3)^3 = (1+X_2)^2 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )\)
\((1+0.0251)^3 = (1+0.0225)^3 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )\)
Foward rate from 1 to 1.5 =3.021%
Foward rate from 1.5 to 2
\((1+X_4)^4 = (1+X_3)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )\)
\((1+0.0277)^4 = (1+0.0251)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )\)
Foward rate from 1.5 to 2 =3.021%
5.
The expected price of the bond if the hypothesis hold :
= \(\dfrac{40}{1+ 0.03021}+ \dfrac{1000+40}{(1+0.03285)^2}\)
\(= \dfrac{40}{(1.03021)}+ \dfrac{1040}{(1.03285)^2}}\)
= 1013.724254
= 1013.72
A production budget is most important for which of the following?
A. Retail stores
B. Manufacturing Firms
C. Non-profit companies
D. Local Government Agencies
E. All the above
Answer:
Explanation:
Manufacturing Firms
Application of Forensic Accounting Concepts
Complete Case 21 & 28. Refer to the Case in the textbook for detailed instructions.
Answer:
An essential step in the incident response process is digital forensics. In order for law enforcement to use the information about a criminal incident, forensic investigators must identify and document it.
What is Digital Forensics?
In a court of law, rules and regulations governing this procedure are frequently crucial in demonstrating guilt or innocence. A person who is motivated to follow the trail of evidence and virtually solve a crime is a digital forensics investigator.
In this case, a computer forensic analyst would be called in to assess how attackers got onto the network, how they moved around it, and what they did there, including whether they stole data or installed malware.
In similar situations, a digital forensic investigator's job is to recover information such as documents, images, and emails from computer hard disks and other data storage devices, like zip and flash drives, that has been lost, destroyed, or in some other way altered.
Therefore, An essential step in the incident response process is digital forensics. In order for law enforcement to use the information about a criminal incident, forensic investigators must identify and document it.
Explanation:
Procuring a career is a
A. medium-range expectation
B. last step
C. lifetime process
Answer:
lifetime process
Explanation:
6. If a firm produces a 12% return on assets and also a 12% return on equity, then the firm: A. Has no debt of any kind. B. Is using its assets as efficiently as possible. C. Has no net working capital. D. Also has a current ratio of 10. E. Has an equity multiplier of 2. F. None of these
Answer:
F
Explanation:
None of these. This is because the answer is that it has an equity multiplier of 1
exponent 5/3 write the exponential expression in expanded form and standard form
The exponential expression in expanded form and standard form for the exponent 5 to the power 3 is 125.
Here,
= 5³
= 5 × 5 × 5
= 25 × 5
= 125
Thus, the expanded form of 5 raised to the power 3 is 125.
The exponential expressions are just a way to write powers in the short form. Thus, the exponent tends to indicate the number of times the base which is thus used as a factor.
Hence, the expanded form means expressing according to a place value, and standard form means expressing numbers using the given numbers.
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On December 31, there were 53 units remaining in ending inventory. These 53 units consisted of 9 from January, 10 from February, 14 from May, 8 from September, and 12 from November. Using the specific identification method, what is the cost of the ending inventory
Answer:
Cost of the ending inventory = $7,108
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
A company had the following purchases during the current year:
January 17 Units at $112
February 37 Units at $123
May 32 Units at $135
September 29 Units at $143
November 27 Units at $153
On December 31, there were 53 units remaining in ending inventory. These 53 units consisted of 9 from January, 10 from February, 14 from May, 8 from September, and 12 from November. Using the specific identification method, what is the cost of the ending inventory?
Explanation of the answer is now provided as follows:
Specific identification method is an inventory method under which costs of goods sold and the closing/ending inventory are calculated using the particular cost of each inventory batch at the moment they were received.
Therefore, cost of the ending inventory is calculated as sum of the product of the number of closing units from each month and the cost per unit of purchases in that month.
Therefore, we have:
Cost of the ending inventory = (Number of closing units from January * Cost per unit of January Purchases) + (Number of closing units from February * Cost per unit of February Purchases) + (Number of closing units from May * Cost per unit of May Purchases) + (Number of closing units from September * Cost per unit of September Purchases) + (Number of closing units from November * Cost per unit of November Purchases) ………… (1)
Substituting the relevant values into equation (1), we have:
Cost of the ending inventory = (9 * $112) + (10 * $123) + (14 * $135) + (8 * $143) + (12 * $153) = $7,108
Shep Company's records show the following information for the current year:
Beginning of
year
End of year
Total assets
S
56,800
$
88,500
Total liabilities
$ 25,400
$
38,400
Determine net income (loss) for each of the following separate situations. (For all requirements, losses should be entered with a
minus sign.)
a. Additional common stock of $6,400 was issued, and dividends of $10,400 were paid during the current year.
b. Additional common stock of $15,850 was issued, and no dividends were paid during the current year.
c. No additional common stock was issued, and dividends of $15,400 were paid during the current year.
The net income loss for all of the questions that we have here are:
$14700$2850 $34100How to solve for the net income loss of the assetsa. For the first asset
we have
56800 - 25400
= 31400
For the second we have
88500 - 38400
= 50100
The difference would be 50100 - 31400
= an increase of 18700
the net income loss would be solved as 18700 + 6400 - 10400
= $14700
b. Additional 15850 was issued so we would have
$18700 + $0 - $15,850 = $2850
c. $18700 - $0 + $15400 = $34100
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MC Qu. 77 During March, a firm expects its total... During March, a firm expects its total sales to be $151,000, its total variable costs to be $94,100, and its total fixed costs to be $24,100. The contribution margin for March is:
Answer:
$56,900
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin = total sales - variable costs
151,000 - 94100 = 56900
Consider that the market demand function For IBM Computer represented as a. Calculate Price elasticity of demand when d=20,000-0.5P, Ceteris paribus the price per unit is Birt 10,000. b. It the demand for IBM Computer aces elsarric, inelastic or Unitary elastic? C. Interpret the result
A. The price elasticity of demand is PED ≈ -0.67.
B. The demand for IBM computers is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1.
C. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded.
To calculate the price elasticity of demand (PED), we need to use the formula:
PED = (% change in quantity demanded) / (% change in price)
a. Given the demand function d = 20,000 - 0.5P and the price per unit is $10,000, we can calculate the quantity demanded at this price by substituting P = $10,000 into the demand function:
d = 20,000 - 0.5 * 10,000
d = 20,000 - 5,000
d = 15,000
Now, let's consider a small change in price. Let's say the price decreases to $9,500, and the quantity demanded changes to 15,500. We can calculate the percentage changes:
% change in quantity demanded = (15,500 - 15,000) / 15,000 * 100 = 3.33%
% change in price = (9,500 - 10,000) / 10,000 * 100 = -5%
Now we can calculate the price elasticity of demand:
PED = (% change in quantity demanded) / (% change in price)
PED = 3.33% / -5%
PED ≈ -0.67
b. The demand for IBM Computer is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1. In this case, the PED is approximately -0.67, indicating that a 1% change in price will lead to a smaller percentage change in quantity demanded.
c. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded. In other words, as the price of IBM Computers increases, the quantity demanded decreases, and vice versa. However, since the demand is inelastic, the change in quantity demanded is proportionately smaller than the change in price. This suggests that consumers are not highly responsive to price changes, and IBM Computers are relatively price-insensitive.
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What are benefits of a market economy?
Answer:
Explanation:
The advantages of a market economy include increased efficiency, productivity, and innovation. In a truly free market, all resources are owned by individuals, and the decisions about how to allocate such resources are made by those individuals rather than governing bodies.
I have $10,967.74 in a brokerage account, and plan to deposit an additional $6,000.00 at the end of every future year until my account totals $270,000 and I expect to earn 13% annually on the account. How many years will it take
Note that with respect to the deposite, it will take approximately 8.19 years for the account to reach $270,000.
How is this so?To determine how many years it will take for the account to reach $270,000,we can use the future value of an annuity formula.
The formula is -
FV = P x [(1 + r)ⁿ⁻¹] / r
Where -
FV = Future value ($270,000)
P = Annual deposit ($6,000)
r = Interest rate per period (13% or 0.13)
n = Number of periods (number of years)
We need to solve for n, so we can rearrange the formula as -
n = log((FV x r / P) + 1) / log(1 + r)
Plugging in the values -
n = log((270000 x 0.13 / 6000) + 1) / log(1 + 0.13)
Using a calculator, we find that n is approximately 8.19.
thus, it is corect to state that, it will take approximately 8.19 years for the account to reach $270,000.
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Insurance companies create a pool of funds to handle
Orisk
O gain
Oloss
O safety
10
Answer:
A) risk
Explanation:
An insurance company creates a pool of funds to handle risk. This helps to protect the company financially if there are more claims than expected.
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 16,000 16,000
Accounts Receivable 6,000 6,000
Supplies 2,000 2,000
Equipment 19,000 19,000
Accumulated Depr. 6,000 6,000
Accounts Payable 10,000 10,000
Wages Payable 2,000 2,000
Common Stock 5,000 5,000
Retained Earnings 11,640 11,640
Dividends 1,000 1,000
Fees Earned 40,291 40,291
Wages Expense 20,072 20,072
Rent Expense 5,057 5,057
Depreciation Expense 5,802 5,802
Totals 74,931 74,931 30,931 40,291 44,000 34,640
Net Income (Loss) 9,360 9,360
40,291 40,291 44,000 44,000
The ending balance of retained earnings is
a. $16,640
b. $0
c. $9,360
d. $20,000
Jeri Lammers, a part-time teller at Second State Bank, is married and claims 3 allowances,
Answer:
6. Jeri Lammers, a part-time teller at Second State Bank, is married and claims allowances.
Explanation:
He who’s the person?
Based on your interpretation of your responce to the survey questionaire what does this reveal about your interest in engaging to sport activities
Answer:
Answer:
I realized that sports is my thing, although I'm not that athletic. I always have a blast whenever I'm engaging in sports. I also like watching it on television.
I fell in love with sports because exercise is good for our health. Engaging in sports also help improve my mood and boost my energy.
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My interest in sport activities
I realized that sports is my thing, although I'm not that athletic. I always have a blast whenever I'm engaging in sports. I also like watching it on television. I fell in love with sports because exercise is good for our health. Engaging in sports also help improve my mood and boost my energy.
The additional benefit of producing one more roast beef sandwich at a local deli is $3. The additional cost of producing one more roast beef sandwich is $3. To improve allocative efficiency...
a) producers should produce one more roast beef sandwich because MB > MC.
b) producers should produce one more roast beef sandwich because MB equals MC.
c) producers should not produce one more roast beef sandwich because MB > MC.
d) producers should not produce one more roast beef sandwich because MB equals MC.
Answer:
Explanation:
b) producers should produce one more roast beef sandwich because MB equals MC.
Allocative efficiency occurs when the marginal benefit (MB) of producing a good or service is equal to the marginal cost (MC) of producing that good or service. In this scenario, the additional benefit of producing one more roast beef sandwich is $3 and the additional cost of producing one more roast beef sandwich is also $3. Since MB equals MC, producing one more sandwich would not result in a net loss or gain, and would therefore improve allocative efficiency.
if known, in California which of the following must be disclosed on the real estate transfer disclosure statement
If known, only (option 1) Environmental hazards must be disclosed on the real estate Transfer Disclosure Statement.
The seller is required to disclose any known environmental hazards, including lead-based paint, asbestos, radon, formaldehyde, underground storage tanks, and contaminated soil or water. The seller must disclose any known environmental hazards, including lead-based paint, asbestos, radon, formaldehyde, underground storage tanks, and contaminated soil or water. This disclosure is required to protect buyers from potential health hazards and to ensure they are aware of any risks associated with the property. Environmental hazards must be disclosed on the real estate Transfer Disclosure Statement if known, because they can pose a serious risk to the health and safety of the property's occupants.
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The complete question is:
If known, which of the following must be disclosed on the real estate Transfer Disclosure Statement? 1. Health Problems 2. Environmental hazards 3. Phone issues 4. Network issues.
Aruba Company had a checkbook balance on December 31,
Problem 1-18 (AICPA Adapted)
2,000,000
2020 of P8,000,000 and held the following items in the safe
Check payable to Araba, dated January 5, 2021,
included in December 31 checkbook balance
Check payable to Araba, deposited December 20,
and included in December 31 checkbook balance,
but returned by bank on December 30, stamped
"NSF.The check was redeposited January 2, 2021,
and deared January 3, 2021
500,000
Check drawn on Aruba's account and payable to a vendor,
dated and recorded December 31 but not mailed
until January 15, 2021
1,500,000
Cash on hand - undeposited collections
Change fund
Time deposit for plant expansion
Treasury bill
Money market placement
Postage stamps unused
400.000
40,000
1,000,000
2,500,000
3,000,000
10,000
1. What total amount should be reported as cash on
December 31, 2020?
a 7,400,000
b. 7,440,000
c. 8,440,000
d. 7,450,000
2. What total amount should be reported as cash
equivalents on December 31, 2020?
a. 6,500,000
b. 3,000,000
c. 5,600,000
d. 2,500,000
Answer:
$7,440,000$5,500,000Explanation:
1. Checkbook balance of $8,000,000 in December 2020.
Check payable to Aruba of $2,000,000 has not yet being deposited so it should be removed from cash balance
Check payable that was returned by the bank of $500,000 should not be included either because it did not clear.
Check drawn on Aruba account of $1,500,000 was recorded but not yet mailed so it should be added back.
Cash on hand - undeposited collections and Change fund are actual cash that should be added as well.
= 8,000,000 - 2,000,000 - 500,000 + 1,500,000 + 400,000 + 40,000
= $7,440,000
2. Cash equivalents are those instruments that can be easily converted to cash. They typically mature within 3 months.
The Cash equivalents here are Treasury bills and Money Market placements
= 2,500,000 + 3,000,000
= $5,500,000
The total amount to be reported as cash on December 31, 2020 is $7,440,000 and the total amount to be reported as cash equivalents on December 31, 2020 is $5,600,000.
1. CASH = Checkbook balance of $8,000,000 + Check payable to Aruba of $2,000,000 + Check payable $500,000 + Check drawn $1,500,000 + Cash on hand - Undeposited collections
CASH = 8,000,000 - 2,000,000 - 500,000 + 1,500,000 + 400,000 + 40,000
CASH = $7,440,000
Cash equivalents = Treasury bills + Money Market placements
Cash equivalents = 2,500,000 + 3,000,000
Cash equivalents = $5,500,000
In conclusion, the total amount to be reported as cash on December 31, 2020 is $7,440,000 and the total amount to be reported as cash equivalents on December 31, 2020 is $5,600,000.
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he December 31, 2018, balance sheet of Whelan, Inc., showed $120,000 in the common stock account and $2,289,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $137,000 and $2,568,000 in the same two accounts, respectively. If the company paid out $149,500 in cash dividends during 2019, what was the cash flow to stockholders for the year?
the cash flow to stockholders for the year is $169,000 negative.
Equity is equal to common stock plus any paid-in surplus.
Common stock plus additional paid-in excess equals total equity at the outset.
=136,000+2,610,000=$2,746,000
Common stock + Extra Paid-in Surplus = Total Equity at End
=146,000+2,910,00)=$3,056,000
Hence, new equity equals total equity at the end minus total equity at the beginning.
3,056,000-2,746,000=$310,000
Dividends paid minus new equity equals cash flow to investors.
= 141,000-310,000
= -169,000
=$169,000 a loss
a sum of money distributed to shareholders from a company's profits. Although they can do so at any time, public firms that pay dividends often do so on a predetermined timetable. Special dividends or additional dividends are terms used to describe unexpected dividend payouts.
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The Automachine Corporation produces three high-quality components and last year allocated all costs
except material on the basis of direct labour hours/unit. However, due to the introduction of CAD/CAM
and a complete review of the cost allocation system, Automachine Corporation is considering changing
its basis of machined component costs. For the following year the budget and production data have been
extracted by the machine manufacturing department:
Activity 1 – Automated machinery total cost $1,800,000
Activity 2 – Finishing operations total cost 530,000
Activity 3 – Material handling total costs 130,000
Activity 4 – Packaging and shipping costs 100,000
Activity 5 – Production setup total costs 80,000
Activity 6 – Production scheduling total costs 60,000
$2,700,000
The most appropriate cost drivers for the six activities have been identified as: machine hours, direct
labour hours, number of parts, number of orders shipped, number of production setups, and number of
production orders respectively.
Based on actual data for the previous year, next year’s predicted data for the three high-quality
components are as follows:
Compu #123 Compu #456 Compu #789
Machine hours/unit 4 4 10
Direct labour hours/unit 1 3 6
Number of parts/unit 15 25 60
Number of orders shipped 500 1,000 400
Number of production setups 50 25 25
Number of production orders 150 35 100
Total units to be produced 5,000 2,500 400
Direct materials cost/unit 40 25 55
Required:
As the Management Accountant for the Automachine Corporation, prepare supporting schedules for:
a) Activity rates for each of the six activities.
b) A budget of total costs and unit costs for each of the three components, excluding direct
materials.
c) The computation of the budgeted total and unit costs using the old direct labour hour based
system for each of the three components.
d) Comparing the results of (b) and (c) above suggest the most appropriate system, and discuss the
pros and cons of using ABC cost drivers
answer:no
Explanation:
because you need to try and work it out on your own instead of going to randome people that prob don't know the answer
Firms making a loss will compare the losses if it shuts down to the losses if it operates in the short run. What quantity will the firm produce if it shuts down in the short run
The quantity that would be produced by a firm that shuts down in the short run is zero units.
When would a firm shut down in the short run?
The short run is a period when at least one or more factors of production are fixed and the others are variable. In the short run, if the average variable cost is greater than the price, the firm should cease production. This means that zero units of output would be produced.
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1. Donald is aggressive and smart, but he's bored at his job. He wants to pursue
his dream of starting a burger joint called "Donald Mac's." His business plan is
to open six stores in 12 months. All he needs is money—other people's money.
Everyone says that finding investors is the only way to go, the shortcut to
success, wealth with no risk. So he buys a coat and tie, shines his shoes, and hits
the streets, looking for investors. He comes to you. You like his idea, but are his
plans sound? What do you think?
Answer:
Donald's plans are not sound.
There is more to running a business than opening six stores in 12 months. How does he want to ensure that these stores will be opened and will become viable, attractive to customers, and be able to meet customers' needs.
Explanation:
A business does not exist in isolation. It exists for a purpose. The overarching purpose is to satisfy the needs of its customers. But, first things first. Is there a viable market for Donald's business ideas? Has Donald determined the size of this market? Is the market sustainable? What are the barriers for new entrants? What competition does this business face? What competitive advantage or otherwise will Donald Mac's enjoy or suffer? How can Donald Mac's overcome its competitive challenges? Can Donald show the cash flow projections for the proposed business? This and more pertinent questions need to be answered in the business plan, to make it sound convincing before potential investors.
Deep discount bonds reflect questionable quality. True False
Answer:
I think "False" but I'm not sure.
Explanation:
I'm sorry if it's wrong.
January 4—Sold two ice cream systems to Day Dreamer’s Ice Cream. The estimated direct labor is $8,200.00. The estimated direct material is $3,350.00. The estimated indirect material is $350.00. Day Dreamer’s is to be billed in the amount of $20,925.00 on account. A check for $5,000.00 will be collected as a deposit against that sale. The start date will be January. The date promised will be January 23. Assign the contract to Job 74.
January 4th sold two ice cream systems to Day Dreamer's Ice Cream. THe estimated direct labor is $8,000.00. The estimated direct material is $2,250.00. The estimated indirect material is $350.00. Day Dreamers is to be billed in the amount of $20,925.00 on account. A check for $5,000.00 will be collected as a deposit against that sale. The start date will bew January 7th. The date Promised will be January 23rd.
January 19—Apply from direct materials requisition $2,800.00 of direct materials. Apply from indirect materials requisition $325.00 of indirect materials. Apply from time cards s $7,950.00 of direct labor to Job 74 completing the job.Applied factory overhead is based on 25% of direct labor cost. Transfer the completed job to the COGS account from Direct Material and Indirect Material and Factory Overhead accounts. When making the journal entry for applying direct labor debit COGS for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable
what would all the monthly journal entries be?
When the job is completed, the costs incurred in the Work in Progress account will be transferred to the Finished Goods account.The following are the monthly journal entries:January 4, 20XX: Sold two ice cream systems to Day Dreamer's Ice Cream and the total amount billed on account is $20,925.00. Cash collected on account was $5,000.00.
To record sales on account:
Debit: Accounts Receivable: $20,925
Credit: Sales Revenue: $20,925
To record cash received on account
:Debit: Cash: $5,000
Credit: Accounts Receivable: $5,000
January 7, 20XX: Job 74 began and the direct and indirect materials are requisitioned and job order costs were incurred.
To record the beginning of the job, the following entry will be made:
Debit: Work in Progress: $5,800
Credit: Direct Materials: $2,250
Credit: Indirect Materials: $350
Credit: Direct Labor: $8,000
January 19, 20XX: Direct materials of $2,800 and indirect materials of $325 were used and direct labor costs were incurred amounting to $7,950.00.
To record the use of direct materials:
Debit: Work in Progress: $2,800
Credit: Direct Materials: $2,800
To record the use of indirect materials:Debit: Work in Progress: $325
Credit: Indirect Materials: $325To record the payroll expenses:
Debit: Work in Progress: $7,950
Credit: Salaries Payable: $6,137.50
Credit: FICA Taxes Payable: $612.50
Credit: Federal Withholding Taxes Payable: $200
Credit: State Withholding Taxes Payable: $1,000
To record the application of overhead:Debit: Work in Progress: $1,987.50
Credit: Manufacturing Overhead: $1,987.50.When the job is completed, the costs incurred in the Work in Progress account will be transferred to the Finished Goods account.
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walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1995. he also acquired a rental house in 2022, which he actively manages. during 2022, walter's share of the partnership's losses was $11,500, and his rental house generated $41,000 in losses. walter's modified adjusted gross income before passive losses is $129,000.A. Calculate the amount of Walter's allowable deduction for rental house activities for 2022. B. Calculate the amount of Walter's allowable deduction for the partnership losses for 2022.C. What may be done with the unused losses, if anything?1. The unused losses may be carried.2. tax years to reduce.3. income in those years.
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. The amount of Walter's allowable deduction for rental house activities for 2015 is $ 21,000.
a) Allowable deductions = $25,000 - 50% of $8,000 = $25,000 - $4,000 = $21,000.
For every dollar the taxpayer's modified adjusted gross income surpasses $100,000, their entitlement to $25,000 is decreased by 50 cents. If the modified adjusted gross income is greater than $150,000, no deduction is permitted.
b) The amount of Walter's allowable deduction for the partnership losses for 2015 is 0.
c) The unused losses may be carried forward to future tax years to reduce passive income in those years.
Mortgage interest payments, home repairs, insurance, letting agency fees, and 10% of your total rental revenue for depreciation are all deductible expenses.
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Correct question:
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2015, which he actively manages. During 2015, Walter's share of the partnership's losses was $19,000, and his rental house generated $42,500 in losses. Walter's modified adjusted gross income before passive losses is $108,000.
If an amount is zero, enter "0".
a. Calculate the amount of Walter's allowable deduction for rental house activities for 2015.
b. Calculate the amount of Walter's allowable deduction for the partnership losses for 2015.
c. What may be done with the unused losses, if anything?
The unused losses may be carried ____ tax years to reduce ____ income in those years.
1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4 percent per year.
a. What is the expected dividend in each of the next 3 years?
b. If the discount rate for the stock is 12 percent, at what price will the stock sell?
c. What is the expected stock price 3 years from now?
d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? Compare your answer to (b).
Answer:
Explanation:
a ) Expected dividend per share in the next three years :
1 ) 2 x 1.04 = 2.08
2 ) 2 x 1.08 = 2.16
3 ) 2 x 1.12 = 2.24
b )
Price of share at present = 2.08 / (.12-.04 )
= 26
c ) Expected stock price after 3 years
= 2 x 1.16 / .08
= 29
cash inflow i year 1 : 2.08
cash inflow in year 2 : 2.16
cash inflow in year 3 2.24 + 29 = 31.24
Present value of cash flow
= 1.85 , 1.72 , 22.23
Total = 25.8
It is almost the same with that of data in ( b )
Give reasons that can explain why a stock price might not react at all on the day that new information related to the stock's issuer is released? Which of these reasons hold if the market is semi strong form efficient? Explain your argument.
Describe an ethical dilemma related to work quality.
Answer:
an example could be if you work for a fast food place you could be making the food fast but your being judge on how it looks when your done like the quality of the meat the cheese how much you put like thats the work quality how good of a job are you doing with your work and what it looks like when its finished.
Explanation:
A quality inspector visits a factory and finds that the company uses substandard materials in its production. He feels obligated to write this in his report. However, he remembers the company's operations are managed by his best friend's father. It would be an example of an ethical dilemma related to work quality.
What is an ethical dilemma related to employee relations?Ethical dilemma refers to the a situation in which a difficult choice has to be made between two courses of action, which of them go beyond the moral principle.
An employee noticed workplace discrimination against some employees who belongs to a particular racial group in the branch where he works, even though company policy condemns such, but the local manager doesn't take complaints about the matter seriously. Headquarters sent representatives to the branch to find such issues and an opportunity is given to report these issues at workplace.
However, he still remembers that the manager gave him the opportunity by employing him despite his limited work experience when he interviewed for the job some months ago. It would be an example of ethical dilemma to employee relations.
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Please help, please
QUESTION 2 of 10: You have enough inventory ($3,000,000) to last 30 days for the current orders being processed. However, a new order came in today, which has to be fulfilled in 15 days. This new order will deplete your inventory completely by that time. How much money in inventory must be ordered to last the month? O a) $1,000,000 Ob) $1,250,000 O c) $1,500,000 O d) $3,000,000
Answer:
c) $1,500,000
Explanation:
Typically inventory for $3,000,000 will last for 30 days. The current order will be depleted by the 15th, which is half of 30 days. You require inventory to run for another 15 days. The inventory required will be half or $3,000,000
=$3,000,000 /2
=$1,500,000
what makes the news true and accurate
The news is considered true and accurate when it is based on facts and evidence. This means that the sources used to create the news must be reliable and trustworthy.
News reporters and journalists must verify the information they receive from their sources to ensure that it is accurate before they publish or broadcast it. They must also use multiple sources to confirm the information they receive.
In addition, news must be presented in a balanced and impartial way. This means that reporters should not have any biases or prejudices that affect the way they report the news. They must also present both sides of a story to give their audience a complete picture of what is happening.
Another important aspect of accurate news is the use of language. News reporters must use language that is clear and concise, avoiding any exaggeration or sensationalism. They must also avoid using inflammatory language or making unfounded claims.
Finally, news organizations must have a strong ethical code that guides their reporting. This code should include principles such as accuracy, impartiality, fairness, and transparency. By following these principles, news organizations can ensure that their reporting is true and accurate.
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