Question Completion:
For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue
B. To record this period's earning of prior unearned revenue
C. To record payment of an accrued expense
D. To record receipt of an accrued revenue
E. To record an accrued expense
F. To record an accrued revenue
G. To record this period's use of a prepaid expense
H. To record payment of a prepaid expense
I To record this period's depreciation expense
Journal Entries
Insurance Expense 1,900
Prepaid Insurance 1,900
Salaries Payable 3,900
Cash 3,900
Prepaid Rent 3,200
Cash 3,200
Salaries Expense 4,900
Salaries Payable 4,900
Interest Receivable 1,900
Interest Revenue 1,900
Cash 3,900
Accounts Receivable (from consulting) 3,900
Cash 5,900
Unearned Professional Fees 5,900
Cash 4,300
Interest Receivable 4,300
Rent Expense 8,000
Prepaid Rent 8,000
Interest Expense 6,300
Interest Payable 6,300
Depreciation Expense 1,300
Accumulated Depreciation 1,300
Unearned Professional Fees 1,900
Professional Fees Earned 1,900
Answer:
Journal Entries with appropriate descriptions:
Insurance Expense 1,900
Prepaid Insurance 1,900
G. To record this period's use of a prepaid expense
Salaries Payable 3,900
Cash 3,900
C. To record payment of an accrued expense
Prepaid Rent 3,200
Cash 3,200
H. To record payment of a prepaid expense
Salaries Expense 4,900
Salaries Payable 4,900
E. To record an accrued expense
Interest Receivable 1,900
Interest Revenue 1,900
F. To record an accrued revenue
Cash 3,900
Accounts Receivable (from consulting) 3,900
D. To record receipt of an accrued revenue
Cash 5,900
Unearned Professional Fees 5,900
A. To record receipt of unearned revenue
Cash 4,300
Interest Receivable 4,300
D. To record receipt of an accrued revenue
Rent Expense 8,000
Prepaid Rent 8,000
G. To record this period's use of a prepaid expense
Interest Expense 6,300
Interest Payable 6,300
E. To record an accrued expense
Depreciation Expense 1,300
Accumulated Depreciation 1,300
I To record this period's depreciation expense
Unearned Professional Fees 1,900
Professional Fees Earned 1,900
B. To record this period's earning of prior unearned revenue
Explanation:
Journal entries are usually recorded to adjust revenue and expenses to the accrual basis of accounting and to match expenses to the period's revenue and vice versa. Short narrations are provided after recording each transaction. The purpose is to provide some descriptions of the transaction so that it can be understood by another person reviewing the records.
Number of Employees 20 Average Salary per employee $ 30,000 Weeks per year 52 Minutes available per week 2,400 Practical capacity percentage 80 % If a company uses time-driven activity-based costing, what is the practical capacity of resources supplied in minutes
Answer:
1,996,800 minutes
Explanation:
Calculation for what is the practical capacity of resources supplied in minutes
Practical capacity of resources supplied =52 weeks × 2,400 minutes per week× 80% × 20 employees
Practical capacity of resources supplied= 1,996,800 minutes
Therefore the practical capacity of resources supplied in minutes is 1,996,800 minutes
Bob makes his first deposit into an IRA earning compounded annually on his th birthday and his last deposit on his birthday ( equal deposits in all). With no additional deposits, the money in the IRA continues to earn interest compounded annually until Bob retires on his th birthday. How much is in the IRA when Bob retires
Answer:
$187,881.52
Explanation:
The computation is shown below:
The future value would be
= PMT × ((1 + rate of interest)^number of years -1) ÷ (rate of interest)
= $1,500 × ((1 + 0.066)^13 - 1) ÷ (0.066)
= $1,500 × 19.626
= $29,439.14
Now when bob retired, the amount is
= $29,439.14 × (1 + 0.066)^29
= $29,439.14 × 6.383
= $187,881.52
Identify the accoun title.
1. A new company is formed and shareholders invest $12,000 cash.
2. A company purchases for $18,000 cash a new truck that has a list price of $21,000.
3. A company pays stockholders a $10,000 cash dividend.
4. A company purchases a piece of land for $50,000 cash. An appraiser suggests that the value of this land is $55,000.
5. A company declares dividends of $1,100 to the shareholders but does not pay them yet; the company will pay these dividends in 60 days.
6. A company has to pay monthly wages of $5,600 to its employees; the company will pay them in two weeks.
Answer:
1. On formation of new Company and receipt of cash of $ 12,000 from shareholders
Cash Dr $ 12,000
To Share capital Cr $ 12,000
2. On purchase of truck for $ 18,000
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)
3. On payment of dividend in cash
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. On purchase of land
Land A/c Dr $ 50,000
To cash Cr $ 50,000
( On purchase of land on payment of $ 50,000).
There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
On payment of dividend after 60 days
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. After each month wages will be due to its workers, then accounting entry will be recorded as under
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
After two weeks, on payment of wages, the accounting entry will be recorded as under
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
Explanation:
1. The shareholder that will be invested with the help of the cash:
Cash Dr $ 12,000
To Share capital Cr $ 12,000
What is an account title?The specific name given to an item inside of an accounting system is known as the account title.
2. The company purchased a truck this was with the help of the cash
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
3. Cash payment was made for the stockholders
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. The company was to make sure that there will be cash and profit for both
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
Next entry will be
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. monthly wages of $5,600
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
Next entry will be:
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
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Suppose the statutory incidence were instead on the consumers. Calculate the new equilibrium price and quantity in the market. In that case, the dollar portion of the $0.75/drink tax that is borne by consumers is $ . The dollar portion of the $0.75/drink that that is borne by producers is $ .
Answer:
The new equilibrium price is $6.43 and the quantity is 374.28
The tax borne by consumers is 0.72
The tax borne by producers is 0.03
Explanation:
The old equilibrium price of the bubble tea was $5.71 while the new price of the bubble tea is $6.43. The new price includes the tax effect which is paid by the consumers. The difference in the two equilibrium prices is the tax which is borne by consumers.
On January 2, 2021, Farr Co. issued 10-year convertible bonds at 105. During 2021, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr's common stock was 50 percent above its par value. On January 2, 2021, cash proceeds from the issuance of the convertible bonds should be reported as:_______.
a. paid-in capital for the entire proceeds.
b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount.
d. a liability for the entire proceeds.
Answer:
d. a liability for the entire proceeds.
Explanation:
In the case when the bonds would be converted into common stock and the market price of the common stock is 50% over its par value so the cash proceeds that arise from the issuance of the convertible bonds would be reported as the liability as the same would be credited to the liability account
Therefore the right option is d.
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $62,500. According to an independent appraisal, the land currently is worth $150,000. Tinsley paid $25,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance
Answer:
$175,000
Explanation:
When an exchange transaction has commercial substance, the accounting standard IAS 16 requires that the cost price of the item acquired be at fair Value of the asset given up.
Fair Value of Asset given up is $150,000.
However Tinsley has also paid a trade -in allowance for the new parcel of land of $25,000.
Therefore, the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance is $175,000 ($150,000 + $25,000)
a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate. b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate. c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.
Answer:
a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $111,111 / 11% = $1,010,100
b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $222,222 / (11% x 2) = $1,010,100
c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.
PV of a perpetuity = annual payment / interest rate = $333,333 / (11% x 3) = $1,010,100
Explanation:
Since the interest rate is simple, not compounded, the three perpetuities have the same present value.
A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead
Answer:
$58.3
Explanation:
Interest = principal x interest x time
$55 x 0.06 x 1 = $3.3.
Amount = principal + interest
= $55 + $3.3. = $58.3
Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $437,000. Suppose that on June 1, Slapshot had 350 units in finished goods inventory costing $80,000 and on June 30, 370 units in finished goods inventory costing $84,000.
1. Prepare a cost of goods sold statement for the month of June.
Slapshot Company
Cost of Goods Sold Statement
For the Month of June
*Cost of goods sold
*Cost of goods Inventory, June 1
*Finished goods inventory June 30
*Work In process, June 1
___*___ $_____
___*___ _____
___*__ _____
__*____ $_____
2. Calculate the number of sticks that were sold during June.
units
Answer:
1. Cost of goods sold statement
Cost of goods sold Inventory, June 1 $80,000
Add: Cost of goods manufactured $437,000
Cost of goods available for sale $517,000
Less: Cost of goods sold Inventory, June 31 $84,000
Cost of goods sold $433,000
2. Number of sticks sold during June
Units on June 1 350
Add: Manufactured in June 1,900
Sticks available for sale 2,250
Less: Ending units June 30 370
Number of sticks sold 1,880
When sales increase by 3%, which of the following should also increase by 3% in a merchandising company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
When sales increase by 13%, which of the following should increase by more than 13% in a merchandizing company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
Answer:
Part 1
C. Gross margin
E. Net operating income
Part 2
C. Gross margin
E. Net operating income
Explanation:
A merchandizing company bought goods for resale rather than manufacturing and selling as seen with manufacturing companies.
The items which vary with sales in a merchandizing company are Gross Margin and Net Operating income. Such are the items that will increase with an increase in Sales.
If you receive 10 units of utility from consuming one cup of coffee and 16 units of utility from consuming two cups of coffee, which of the following is the likely amount of utility you will receive from consuming three cups of coffee?
Answer:
26
Explanation:
Answer:
18
Explanation:
1 unit= 10 2 units =16 2/16= 8
3 cups is 18
XYZ Corporation had 158 million shares outstanding on January 1, 2012. On February 2,2012, it issued an additional 30 million shares to the market at the market priceof $55 per share. What was the effect of this share issue on the price per share
Answer:
There was no effect of this share issue on the price per share
Explanation:
First, we need to determine the pre-issuance value
Numbers of outstanding shares = 158,000,000 shares
Total Value of equity = Numbers of outstanding shares x Market value per share = 158,000,000 shares x $55 per share = $8,690,000,000
Now calculate the issuance values
Numbers of shares issued = 30,000,000 shares
Vaue of issued equity = NUmbers of shares issued x Mrket value per share = 30,000,000 x $55 per share = $1,650,000,000
Now determien the post issuance value
Numbers of outstanding shares = 158,000,000 shares + 30,000,000 shares = 188,000,000 shares
Total Value of equity = $8,690,000,000 + $1,650,000,000 = $10,340,000,000
Now calcuate the Value per share
Value per share = Post Issuance Total value of equity / Post issuance total numbers of shares = $10,340,000,000 / 188,000,000 shares = $55 per share
There is no effect of share issue on the price of the share.
6. Despite multimillion-dollar investments, many IT organizations cannot respond quickly to evolving business needs. Also, they cannot adapt to large-scale shifts like mergers, sudden drops in sales, or new product introductions. Can cloud computing help organizations improve their responsiveness and get better control of their IT costs
Answer:
Yes
Explanation:
In a way Yes. Cloud Computing can allow an IT organization to quickly meet their current changing needs since they have access to all the necessary equipment and computing power by simply making a phone call. That is the main service of Cloud Computing organizations, they provide all the necessary hardware power to IT companies completely remotely. All the IT company would have to do is pay for the extra computing power that they need and they can get it immediately. This will allow them to immediately adapt to changes such as mergers, sudden drops in sales, or new product introductions.
are capital markets also organisational markets?
Answer:A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.[6] Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.[a] Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Modern capital markets are almost invariably hosted on computer-based electronic trading platforms; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market, though sales to individuals form only a tiny fraction of the total volume of bonds sold. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets. There are many thousands of such systems, most serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, and government departments. Physically, the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong.
Explanation:
A company has derivatives transactions with Banks A, B, and C which are worth +$20 million, −$15 million, and −$25 million, respectively to the company. How much margin or collateral does the company have to provide? The transactions are cleared bilaterally and are subject to one-way collateral agreements where the company posts variation margin, but no initial margin. The transactions are cleared centrally through the same CCP and the CCP requires a total initial margin of $10 million.
Answer:
1. With Bilateral Clearing, where the company posts variation margin, but no initial margin:
The company has to provide collateral to Banks A, B, and C of $0 million, $15 million, and $25 million respectively.
Therefore, the total collateral required is $40 million.
2. With Central Clearing through the CCP, where the CCP usually requires an initial margin of $10 million:
The derivatives are netted against each other, and the company’s total variation margin is $20 million (–$20 + $15 + $25) in total.
The total margin required (including the initial margin) is, therefore, $30 million ($20 + $10 million).
Explanation:
a) Data and Calculations:
Worth of derivative with Bank A = +$20 million
Worth of derivative with Bank B = -$15 million
Worth of derivative with Bank C = -$25 million
b) In a bilateral clearing, the company and each bank (called market participants) enter into an agreement with each other to cover all outstanding derivative transactions between the two parties. On the other hand, in central clearing, a central clearing party (CCP) stands between the two sides of an OTC derivative transaction in much the same way that the exchange clearing house does for exchange-traded contracts.
Counselors of Mableton purchased equipment on January 1, 2017, for $37,000. Counselors of Mableton expected the equipment to last for five years and have a residual value of $4,500. Suppose counselors of Mableton sold the equipment for $25,200 on December 31, 2018, after using the equipment for two full years. Assume depreciation 2018 has been recorded. Journalize the sale of equipment, assuming straight-line depreciation was used
Answer:
Dr cash $25,200
Dr accumulated depreciation $13,000
Cr equipment $37,000
Cr profit on disposal $1,2000
Explanation:
The yearly depreciation expense on the equipment is computed thus:
depreciation=(cost-residual value)/useful life
cost=$37000
residual value=$4,500
useful life= 5 years
depreciation=($37000-$4500)/5
depreciation=$6,500
accumulated depreciation for 2 years=$6,500*2=$13,000
Cash proceeds from disposal=$25,200
Upon disposal, we would debit cash with $25,200 as well as accumulated depreciation with $13,000 while the equipment account is credited with the original cost of $37,000
Total debits=$25,200+$13,000=$38,200
total credit=$37,000
profit on disposal=$38,200-$37000=$1,200
On January 1, 2012, Sunland Company purchased for $690000, equipment having a useful life of ten years and an estimated salvage value of $40200. Sunland has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Sunland should recognize a gain of
Answer:
$54,820
Explanation:
The computation of the gain is shown below;
But before that following calculations must be done
Annual depreciation as per the straight-line method
= ($690,000 - $40,200) ÷ (10 years)
= $64,980
Now accumulated depreciation for 9 years is
= $64,980 × 9 years
= $584,820
Now the book value is
= $690,000 - $584,820
= $105,180
Now the gain is
= Sale value - book value
= $160,000 - $105,180
= $54,820
Reading the newspaper this morning, you found an article that mentions a woman named Nada who used to live down the street from you. Nada was recently hired by the First State Bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank. In which area of finance does Nada work
Answer:
the options are missing:
Financial services
Financial markets and institutions
Managerial finance
Investments
the answer is Financial services.
Explanation:
Financial markets and institutions deals with stock and bond markets, it doesn't include evaluation of local markets.
Managerial finance deals with financial data analysis, and has nothing to do with Nada.
Investments generally deals with large clients, so neighborhood or community analysis doesn't fit very well either
Financial services includes serving smaller clients, e.g. opening checking accounts, mortgages, etc.
A management dilemma defines the research question. Group startsTrue or FalseTrue, selectedFalse, unselected
Answer:
False
Explanation:
It is not always the case that a management dilemma results in the research question. However, a research question might be defined by an identified need for improvement.
A management dilemma defines the research question is false. The correct option is false.
A research topic is defined as "a question that a research project seeks to answer." A research question must be chosen for both quantitative and qualitative research. Data gathering and analysis will be required for the investigation, and the methods for this may vary greatly. Good research topics are usually focused and specific in order to improve understanding on an essential topic.
To formulate a research topic, one must first decide if the study will be qualitative, quantitative, or mixed. Other circumstances, such as project finance, may have an impact not only on the research topic itself, but also on when and how it is created during the research process.
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Orientation responsibilities are normally shared between:
of 2
Select one:
a. the HR department and top management.
b. mid- and upper-level executives.
C. coworkers and line managers.
d. the HR department and the new employee's immediate manager.
Clear my choice
Answer:
d. the HR department and the new employee's immediate manager.
Explanation:
An "employee orientation" is part of a new employee's onboarding process, before he's trained. It often happens on the first day of employment. It allows the new employee to feel welcomed in the company, which will make him more successful in achieving his goal.
It is the role of the HR department and direct manager or immediate manager to conduct the orientation. It is the role of the HR to give the employee the company handbook and sign contracts. On the other hand, the immediate manager introduces the new employee to his colleagues and gives him a tour of the company's premise. Some immediate managers provide a welcome party.
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular. For each of the following situations, identify which function of money is emphasized: _________
a) Brooke accepts money in exchange for performing her daily tasks at her office, since she knowsshe can use that money to buy goods and services: medium of exchange
b) Tim wants to calculate the relative value of oranges and apples, and therefore checks the price per pound of each of these goods quoted in currency units: unit of account
c) Maria is currently pregnant. She expects her expenditures to increase in the future and decides to increase the balance in her savings account: store of value
Answer:
a medium of exchange
a unit of account
a store of value,
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
Project1 costs, Year 1 through Year 4: $100,000; $100,000;$100,000;$100,000 Project1 revenue, Year 1 through Year 4: $0; $5,000;$50,000;$110,000 Calculate ROI for Project1, using a 7 percent discount rate. Discount factor, Year 1 through Year 4: 0.93; 0.87; 0.82; 0.76 Fill in the following blanks - just type the numbers without labels, dollar signs, commas, etc.
Answer and Explanation:
Without discounting :
Return on investment(ROI) for year 1 = -$100000
Return on investment(ROI) for year 2 = -$95000
Return on investment(ROI) for year 3 =-$50000
Return on investment(ROI) for year 4 =$10000
With discounting(PV/(1+r)^n):
Return on investment for year 1 = 0.93×-$100000= -$93000
Return on investment for year 2= 0.87×-$95000= -$82650
Return on investment for year 3 = 0.82×-$50000=-$41000
Return on investment for year 4=
0.76×$10000= $7600
Time-tested practices for developing successful teams are Multiple Choice showing enthusiasm, making timely decisions, practicing innovation. admitting mistakes, being flexible, having persistence. giving credit to others, keeping people informed, keeping promises. putting others first and self last. all of these.
Answer:
all of these.
Explanation:
Time-tested practices can be regarded as methods , ways that has been usings for long period of time that has produced a successful teams and can be trusted any time. It should be noted that Time-tested practices for developing successful teams are the followings;
✓showing enthusiasm
✓making timely decisions
✓ practicing innovation
✓admitting mistakes
✓ being flexible,
Receive cash from customers, $15,000. Pay cash for employee salaries, $9,000. Pay cash for rent, $3,000. Receive cash from sale of equipment, $8,000. Pay cash for utilities, $1,000. Receive cash from a bank loan, $4,000. Pay cash for advertising, $7,000. Purchase supplies on account, $3,000. Required: Post transactions to the Cash T-account and calculate the ending balance.
Answer:
Part 1
Cash Account
$
Debit :
Receive cash from customers 15,000
Sale of Equipment 8,000
Bank Loan 4,000
Totals 27,000
Credit :
Pay cash for employee salaries 9,000
Rent 3,000
Utilities 1,000
Advertising 7,000
Ending Balance 7,000
Totals 27,000
Part 2
Ending Balance is $7,000
Explanation:
Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.
The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.
The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.
Concerned by recent negative trends in economic indicators such as the consumer price index, gross domestic product, and inflation, the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending. His recommendation is based on ________ data.
Answer:
Macroeconomics.
Explanation:
Economics can be classified into two (2) main categories, namely;
1. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. Simply stated, it focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
2. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Therefore, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
In this scenario, concerned by recent negative trends in economic indicators such as the consumer price index, gross domestic product, and inflation, the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending. Thus, his recommendation is based on macroeconomics data.
This ultimately implies that, macroeconomic is a form of externality that typically affects the levels of inflation, unemployment, consumer price index, or growth in the economy as a whole (GDP).
Issued 30,000 shares of common stock in exchange for $300,000 in cash. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. Paid $5,000 in rent on the warehouse building for the month of March. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $70,000 on account for the merchandise purchased in 3. Collected $55,000 from customers on account. Recorded depreciation expense of $1,000 for the month on the equipment. Post the above transactions to the below T-accounts.
Answer:
T-accounts:
Cash
Accounts Titles Debit Credit
Common Stock $300,000
Equipment $10,000
Rent Expense 5,000
Prepaid Insurance 6,000
Accounts Payable 70,000
Accounts Receivable 55,000
Equipment
Accounts Titles Debit Credit
Cash $10,000
Notes Payable 30,000
Notes Payable
Accounts Titles Debit Credit
Equipment $30,000
Inventory
Accounts Titles Debit Credit
Accounts Payable $90,000
Cost of Goods Sold $70,000
Accounts Payable
Accounts Titles Debit Credit
Inventory $90,000
Cash $70,000
Accounts Receivable
Accounts Titles Debit Credit
Sales Revenue $120,000
Sales Revenue
Accounts Titles Debit Credit
Accounts Receivable $120,000
Cost of Goods Sold
Accounts Titles Debit Credit
Inventory $70,000
Rent Expense
Accounts Titles Debit Credit
Cash $5,000
Prepaid Insurance
Accounts Titles Debit Credit
Cash $6,000
Common Stock
Accounts Titles Debit Credit
Cash $300,000
Depreciation Expense
Accounts Titles Debit Credit
Acc Depreciation $1,000
Accumulated Depreciation - Equipment
Accounts Titles Debit Credit
Depreciation Expense $1,000
Explanation:
T-account consists of the following. An account title to record the corresponding account where the double-entry transaction is completed. A debit side on the left to enter the dollar value of the transaction, if the concerned account receives the value. A credit side on the right, also, to enter the dollar value of the transaction, if the concerned account gives out the value.
Over the past decade, many American candy companies have opened factories in Mexico and Canada to produce candy. The companies, including Hershey Company, Brach's Confections, and Ferrara Pan, then ship candy back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages. Price floors (price supports) for the sugar industry encouraged American candy companies to move production out of the United States. Describe how the enactment of a sugar price floor impacted the market for candy in the United States, resulting in the movement of manufacturing.
Answer:
The sugar industry in the US is very powerful and has been able to establish trade barriers and import quotas that affect domestic prices. Sugar prices in the US are extremely high compared to prices in any other country, including Canada, Mexico, China, European nation, i.e. American sugar is the most expensive in the world.
Besides imposing trade barriers, the government also imposes a binding price floor. Binding price floors always result in deadweight losses since the quantity demanded is lower than equilibrium. This is why American candy manufacturers move their production overseas. the highest cost in the candy industry is actually sugar, and wherever they decide to relocate their factories it will always be cheaper.
Kevin's boat was wrecked by hurricane Harvey (a federally declared natural disaster). Damage to the boat was estimated at $30,000. The original cost was $25,000. The boat was partially insured, and Kevin received an insurance reimbursement of $15,000. Kevin's adjusted gross income is $50,000, and he had no other losses during the year. What amount can Keith deduct on his tax return for this year
Answer:
A) $4,900
Explanation:
Options are: "A) $4,900 B) $5,000 C) $9,900 D) $14,900"
Particulars Amount
Original cost $25,000
Damage $30,000
Lower of the two is $25,000
Less: Insurance reimbursement $15,000
Actual loss $10,000
Less: Deduction $100
Less: 10% of AGI (10% of 50,000) $5,000
Final Deduction $4,900
Note: Flat $100 is deducted from this amount and also 10% of AGI, i.e 10% of $50,000 is deducted to finally arrive at the deduction.
Andrew owns a gun shop in a high-crime area. The store does not have a camera surveillance system. The high cost of burglary and theft insurance has substantially reduced his profits. A risk management consultant points out that several methods other than insurance can be used to han-dle the burglary and theft exposure. Identify and explain two noninsurance methods that could be used to deal with the burglary and theft exposure.
in 2001 an outbreak of hoof-and-mouth disease in europe led to the burning of millions of cattle carcasses. discuss the demand and supply implication caused by the outbreak, for an in-depth analysis of the discussion topic you may use all of the resources available to you. what impact would you expect on the supply of cattle hides, hide prices, the supply of leather goods, and the price of leather goods
Answer:
High demand
Low supply
High prices
Explanation:
The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.
