Answer:
a. Deposit in transit $5,500.
This is added to the balance on the bank statement because it has already been added to the books of the company but it is yet to be processed by the bank.
b. Bank service charges $25.
Deducted from the book balance because the bank has already deducted this charge from the company's bank account so the company needs to do the same in its books.
c. Interest credited to Horton’s account $31.
Added to the book balance because this is interest earned on the account from the bank. The bank has therefore already added it to the company's bank account and so the company needs to add it to their books.
d. Outstanding checks $7,422.
Deducted from the balance on the bank statement because the company issued a check from their account but it has not be debited from the bank account yet but has been recorded in the books.
e. NSF check returned $377.
Deducted from the book balance.
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $32,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $3,520 $14,400 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer 55 % Truck 8 %
Answer:
3D Printer 55 % Truck 8 %
Explanation:
The formula to compute the average rate of return for each proposal is shown below:
The average rate of return = Average net income ÷ Average investment
Particulars 3D printer Truck
Average net income (a) $880 $1,600
($3,520 ÷ 4 years) ($14,400 ÷ 9 years)
Average investment (b) $16,000 $20,000
($32,000 ÷ 2) ($40,000 ÷ 2)
Average rate of return (a ÷ b) 55% 8%
using the T-accounts of the first national bank and the second national bank, describe what happens when Jane Brown writes a check for $55 on her account
Answer:
Please refer to the attached.
Before Jane Brown wrote the check, her account was $55 at First National Bank which is reflected by the checkable deposit of $55 which the bank will keep in reserve as an asset.
Joe Green has not received the money so his account at Second National will show $0 balances.
After the cheque has been written and deposited, Jane Brown's chekcable deposits at First national will become $0 as well as the reserves.
Joe Green on the other hand, having gained the $55 and deposited it will see his checkable deposits rise to $55 which the bank will keep in reserve as an asset.
Colgate-Palmolive Company reports the following balances in its retained earnings.
($ millions) 2010 2009
Retained earnings $14,329 $13,157
During 2010, Colgate-Palmolive reported net income of $2,200 million.
a. Assume that the only changes affecting retained earnings were net income and dividends. What amount of dividends did Colgate-Palmolive pay to its shareholders in 2010?
b. This dividend amount constituted what percent of its net income? (Round your answer to one decimal place.)
Answer:
a. $1,028 million
b. 46.7%
Explanation:
a. Dividends are taken from the retained earnings and net income is added to the retained earnings. The formula for ending retained earnings is;
Ending retained earnings = Opening Retained earnings + Net Income - Dividends
14,329 = 13,157 + 2,200 - Dividends
Dividends = 13,157 + 2,200 - 14,329
Dividends = $1,028 million
b. Dividends as a percentage of income
= 1,028/2,200
= 0.467
= 46.7%
Cash balance, September 1 (from a summer job) $7,560
Purchase season football tickets in September 100
Additional entertainment for each month 260
Pay fall semester tuition in September 4,100
Pay rent at the beginning of each month 370
Pay for food each month 210
Pay apartment deposit on September 2 (to be returned December 15) 500
Part-time job earnings each month (net of taxes) 940
Personal Budget:
At the beginning of the 2016 school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Required:
Prepare a cash budget for September, October, November, and December.
Answer:
Katherine Malloy
Personal Cash Budget for September, October, November, and December:
September October November December
Balance $7,560 $2,960 $3,060 $3,160
Apartment deposit return 500
Earnings (net of taxes) 940 940 940 940
Borrowing 340
Total Cash Receipts $8,500 $3,900 $4,000 $4,940
Season football tickets 100
Additional entertainment 260 260 260 260
Semester Tuition 4,100 4,100
Rent 370 370 370 370
Food 210 210 210 210
Apartment deposit 500
Total cash payment $5,540 $840 $840 $4,940
Balance $2,960 $3,060 $3,160 $0
Explanation:
Katherine Malloy's cash budgets for the months of September, October, November, and December give some snapshots of her cash receipts and payments, including the planned borrowing of no less than $340 that she must arrange in December in order to pay for her spring semester tuition on December 31. From the budget, she gets a clearer picture of her cash needs, receipts and expenses. She is comfortable from September till the end of the year. But, Katherine must arrange for some cash receipts, either in student loan or support or get another part-time work to increase her income, to enable settle her tuition in December.
On March 15, 20X7, Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7. On July 1, 20X7, Barrel made $20,000 in unanticipated repairs to its machinery. The repairs will benefit operations for the remainder of the calendar year. What total amount of these expenses should be included in Barrel's quarterly income statement for the three months ended September 30, 20X7?
Answer:
Total expenses = $40,000
Explanation:
Total expenses for the quarterly income statement for the three months can be calculated as follows
Data
Property taxes paid = $120,000
Unanticipated repairs = $20,000
Expenses for quarterly income statement =?
Solution
Total expenses = Property taxes paid + Unanticipated repairs
Total expenses = ($120,000 x 3/12) + ($20,000 x 3/6)
Total expenses = $30,000 + $10,000
Total expenses = $40,000
Total expenses of $40,000 should be included in Barrel's quarterly income statement for the three months ended September 30, 20X7
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.4 percent indefinitely. The company just paid a dividend of $3.29 and you feel that the required return on the stock is 10.6 percent. What is the price per share of the company's stock?
Answer: $50.83
Explanation:
Based on the information given in the question, the following can be deduced:
r = required return = 10.6% = 0.106
D0 = Dividend = 3.29
g = growth rate = 4.4% = 0.044
The price per share of the company's stock will be:
= D0(1 + g)/(r - g)
= 3.29(1 + 0.044)/(0.106 - 0.044)
= 3.29(1.044)/(0.062)
= 3.15134/0.062
= $50.83
A firm has a total market value of $10 million while its debt has a market value of $4 million. What is the after-tax weighted average cost of capital if the before-tax cost of debt is 10%, the cost of equity is 15%, and the tax rate is 35%
Answer:
11.6%
Explanation:
A firm total market value is $10 million
Its debt has a market value of $4 million
The before-tax cost of debt is 10%
= 10/100
= 0.1
The cost of equity is 15%
= 15/100
= 0.15
The tax rate is 35%
= 35/100
= 0.35
Therefore, the after-tax weighted average cost of capital can be calculated as follows
WACC= 0.4(0.10)(1-0.35) + 0.6(0.15)
= 0.04(0.65) + 0.09
= 0.026 + 0.09
= 0.116×100
= 11.6%
Hence the after-tax weighted average cost of capital is 11.6%
Keith, an employee of Sunbeam, Inc., has gross salary for May of $15,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICAOASDI Tax of 6.2% and FICAMedicare Tax of 1.45%.) (Round the final answer to the nearest dollar.)
Answer:
there are no options listed, but the journal entry to record Keith's salary should be:
May 31, wages expense
Dr Wages expense 15,000
Dr FICA taxes expense 1,147.50
Dr FUTA taxes expense 900
Cr Federal income taxes withheld payable 3,000
Cr FICA OASDI taxes withheld payable 930
Cr FICA Medicare taxes withheld payable 217.50
Cr FICA OASDI taxes payable 930
Cr FICA Medicare taxes payable 217.50
Cr Wages payable 10,852.50
I didn't include SUTA taxes or any other discount (e.g. health insurance, IRA contributions, union contributions, etc.) because sometimes they do not exist, but the previous ones always exist.
24. Emotional labor is higher in jobs requiring: 1 point A. limited hours of routine work. B. working in irregular shifts. C. working in isolation. D. frequent interaction with clients. E. skilled knowledge such as accounting.
Answer:
The correct answer is:
frequent interaction with clients. (D.)
Explanation:
Emotional labour refers to the suppression or the management of one's emotions that are felt but not expressed while at a job. Essentially, emotional labour requires workers to:
Hide emotions they do feel
show emotions they do not feel
create an appropriate emotion for the situation.
These can be achieved through surface acting and deep acting.
Customer service and retail jobs require a lot of emotional labour. For instance, if the customer service agent is angry, it is not ethical in his/her job description to show such anger to the clients, hence he/she has to force a smile just to give a satisfactory service to the client. some determinants of emotional labour include:
1. societal, organizational or occupational norms
2. emotional expressiveness
3. supervisory regulation of display rules
Stock price is $150. You see an at-the-money call option trading at $15, and at-the-money put trading at $5. The options have the same expiration date. You decide to buy a straddle. What will be the breakeven points of the strategy, i.e., at what stock prices will your profit will be exactly zero?a. Two breakeven points, S* = 145 and S* = 165b. Two breakeven points, S* = 135 and S* = 155c. One breakeven point, S* = 150d. Two breakeven points, S* = 130 and S* = 170
Answer:
D) Two break even points, S* = 130 and S* = 170
Explanation:
option a)
if the stock price is $145,
put option ⇒ you win $5 - $5 (option price) = no gain
call option ⇒ you lose $15 (option price)
WRONG ANSWER
option b)
if the stock price is $155,
put option ⇒ you lose $5 (option price)
call option ⇒ you win $5 - $15 (option price) = -$10 loss
WRONG ANSWER
option c)
if the stock price is $150,
put option ⇒ you lose $5 (option price)
call option ⇒ you lose $15 (option price)
WRONG ANSWER
option d)
if the stock price is $170,
put option ⇒ you lose $5 = -$5 loss
call option ⇒ you win $20 - $15 (option price) = $5 gain
total gain/loss = $0
if the stock price is $130,
put option ⇒ you win $20 - $5 (option price) = $15 gain
call option ⇒ you lose $15 (option price)
total gain/loss = $0
CORRECT ANSWER
consider a bond that matures in 10 years it pay9% annual coupons and $100 at maturity is the required annual rate of return on the bond i s 8% then the bond will sell today for
Answer:
Bond Price today = $106.71008 rounded off to $106.71
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,
Coupon Payment (C) = 0.09 * 100 = $9
Total periods (n)= 10
r or YTM = 8% or 0.08
The formula to calculate the price of the bonds today is attached.
Bond Price = 9 * [( 1 - (1+0.08)^-10) / 0.08] + 100 / (1+0.08)^10
Bond Price = $106.71008 rounded off to $106.71
You own of the stock of a company that has 10 directors on its board. How much representation can you get on the board if the company has cumulative voting? How much representation can you ensure if the company has straight voting?
Answer:
B.With cumulative voting you are able to get proportional representation by putting all of your votes toward 3directors, allowing you to elect representatives to 3 seats (30% of ten seats) on the board. B.With non-cumulative voting you vote on each director individually, and without a majority of the shares you cannot ensure that your representative will win any of the elections (you could lose 70% to 30% in each of the ten individual elections).Explanation:
Cumulative voting is a method of voting that allows a shareholder to place all the votes they have to one or more person. Normally, during elections for a Board member, each shareholder will be given a certain number of votes and this is usually related to the number of shares they hold. In cumulative voting, they can place all these allowed votes in the corner of one person thereby increasing their chances of getting voted. By owning 30%, you will get 30% of the votes. If you decide to place all 30% for 3 people out of 10, you will get them elected.
With straight voting though, you can only vote once per share owned. That means that you cannot pledge all your votes to a single person or group of people. Should that happen, you cannot ensure that your representative will win as people may outvote your 30% in in each candidate.
The firm has a target debt-equity (D/E) ratio of 0.76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent
Answer:
11.76%
Explanation:
The computation of the Weighted average cost of capital (WACC) is shown below:
= Weightage of debt × cost of debt × ( 1 - tax rate)+ (Weightage of common stock) × (cost of common stock)
= (0.76 ÷ 1.76 × 9%) × ( 1 - 21%) + (1 ÷ 1.76 × 15.3%)
= 3.07% + 8.69%
= 11.76%
Hence, the WACC is 11.76%
We simply multiplied the weight of capital stucture with its cost
(a) What alternative formats could P&G have adopted for its balance sheet? Which format did it adopt? (b) Identify the various techniques of disclosure P&G might have used to disclose additional pertinent financial information. Which technique does it use in its financials? (d) What were P&G's cash flows from its operating, investing, and financing activities for 2017? What were its trends in net cash provided by operating activities over the period 2015 to 2017? Explain why the change in accounts payable and in accrued and other liabilities is added to net income to arrive at net cash provided by operating activities.
Answer:
P&G 2017 K-10:
a) Alternative formats for P&G Balance Sheet:
1. Report Format: Assets and Liabilities and Equity are listed from up to down.
2. Account Format: Assets and Liabilities and Equity are stated side by side.
3. Liquidity Format: The most liquid assets are listed first and then followed by permanent assets, and the same for liabilities.
4. Permanency Format: Noncurrent assets are stated first before current assets, and the same for liabilities.
P&G reported under US GAAP adopted the Report Format and listed balance sheet items according to their liquidity.
b) Techniques of disclosure of additional financial information:
1. Parenthetical Explanation
2. Notes to the Financial Statements
3. Cross-referencing
4. Valuation Allowances, e.g allowances for doubtful accounts, accumulated depreciation, etc.
5. Supporting Schedules
6. Comparative Statements, with about three years of financial statements.
c) P&G used Notes to the Financial Statements with supporting schedules and comparative statements.
d) 2017 Cash flows from:
1. Operating Activities = $12,753 million
2. Investing Activities = ($5,689 million)
3. Financing Activities = ($8,568 million)
e. Trends in net cash provided by operating activities over the period 2015 to 2017:
Net cash provided by operating activities:
2015 = $14,608 million
2016 = $15,435 million
2017 = $12,753 million
It increased from 2015 to 2016 and decreased in 2017 as stated above.
f) The change in accounts payable, accrued, and other liabilities is added to net income to arrive at net cash provided by operating activities because they involve cash outflows for the payment of purchases for goods and services used in generating the revenue that produces the net income.
Explanation:
P&G as a US headquartered entity reported under US GAAP with the adoption of Balance Sheet instead of reporting under IFRS with the adoption of Statement of Financial Position. P&G called its Income Statement "Consolidated Statement of Earnings" instead of the IFRS "Consolidated Income Statement." Apart from nomenclature, the formats and disclosures are similar.
Employees in a department are considered a team only when they directly interact and coordinate work activities with each other.
a. True
b. False
Answer:
True
Explanation:
Team can be defined as way in which group of people or individuals come together in one accord in order to carryout a task or an assignment for the purpose of achieving their aim,goals or objectives, which is why working together as a team either in a company or an organisation is vital and paramount because it help to create unity among employees and to enable the employees to interact and effectively coordinate their work activities with one another which will lead to the growth and success of the organisation or company.
Additional workers will increase a company's to a certain point until gains frombegin to decline. At this point, will continue to increase, but ___________ will diminish with each additional worker. Eventually there will be too many workers and not enoughto keep them busy inevitably slowing down production.
Answer:
Marginal product
Explanation:
There would be an increase in the marginal product of labour. more workers would result in more specialization in skilled areas. As workers increase, it is expected that work done would rise also.
Such that a time would come when the workers would be enough and no more gains would be accrued from specialization. We refer to this as the point of diminishing marginal product. capital would be fixed such that as more workers are used capital declines for each worker.
A seller did not submit testing information required in the contract to the buyer, and the project manager did not notice it was not received. After four weeks, the company head asked for the testing information and found out it was not received. The project manager then asked the seller to send the information. The seller argued, "You did not receive the testing reports for four weeks, and you did not say anything. You have therefore waived your rights to ever get them". The seller refused to give the reports without a change to the contract and additional payment. The issue went to court of law to resolve. What do you think was the court's decision? Post what you believe the decision was in this forum post. After posting, review and comment on at least one of your colleagues post. Be sure that you answer any questions that someone else might have made on your post. NOTE: You will not be able to see any other responses until you post your own.
Answer:
Since the testing information is a requirement of the contract, the buyer has the right to request for it accordingly and the seller should not refuse unless fraud is implied. The contract does not specify when a waiver of the right to the testing information should become effective.
The court of law should decide in favor of the buyer's right to receive the testing information from the seller.
Explanation:
Contract terms are agreements and promises that must be followed because they are made for consideration to be given and received. If a contract for the sale of goods includes the submission of some information, this later requirement forms part of the contract and exchange of promises for consideration, and they must be respected and fulfilled, unless there is additional agreement specifying some deadline within which the right to such testing information is waived.
hich of the following is NOT one of the ways companies are using mobile apps? Group of answer choices track behavior across tablets and mobile devices utilize cookies to track mobile activity utilize GPS data to provide location-based offers track loyalty program participation add social value and entertainment to consumers' lives
Answer: Add social value and entertainment to consumers' lives
Explanation:
In this age of technology, companies have found that being able to offer their customers relevant products can be greatly helped by gathering information about them and offering it to them directly on their phones. A great way to do so is through the use of mobile apps.
With mobile apps a company can track behavior on the device as well as track mobile activity. They could even use the GPS capabilities of the phone through the app to offer relevant location based content.
However, as much as companies would like their customers to have enjoyable lives, this is not an aim with mobile apps. The apps are there to boost the companies sales not to add social value and entertainment to consumers' lives unless of course, that is the company's main business.
Answer:
Which features are created by wave erosion?
Your answer is:
- arches
- cliffs
- stacks
Explanation:
Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened?
Answer:
Rise in stock price.
Explanation:
In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.
With regard to consideration in a sales contract, the UCC differs from the common law in that:_______
A) terms of a sales contract may be modified without additional consideration.
B) consideration is not required in sales contracts
C) terms in a sales contract may be modified as long as additional consideration is provided.
D) consideration exchanged must be equal or very closely equal in sales contracts.
Answer:
A) terms of a sales contract may be modified without additional consideration.
Explanation:
Generally speaking, common law applies to everybody in an equal manner, i.e. the law is the same for everyone. While UCC rules vary depending if the parties involved are merchants or not. UCC has two standards, one that applies to merchants and another one that applies to everyone else.
Common law applies to all contracts that are not covered by UCC rules. UCC rules only apply to the sale of goods and this doesn't include money or securities. Under UCC rules, new consideration is not a requirement to modify an existing contract. E.g. a buyer places an order for 3,000 units, but the seller only has 2,000 units available. The seller can send the 2,000 units and if the buyer accepts them, a new contract is formed.
Based on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500 Actual hours used 4,200 Standard hours allowed 4,000 Standard variable overhead rate $3.75 per hour
Answer:
Rate variance = $250 favorable
Explanation:
The variable overhead rate variance is the difference between the actual variable cost and the standard variable overhead cost the actual actual hours used.
We would compare the actual cost to the standard cost of the actual hours used . This is done below as follows:
$
4,200 hours should have cost (4200 × 3.75 ) 15,750
but did cost 15,500
Rate variance 250 Favorable
Note the actual hours of 4,200 cost $250 less than it should be have cost . Hence the variance is favorable
Rate variance = $250
Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Cost (aftertax) Weights Plan A Debt 3.0 % 15 % Preferred stock 6.0 10 Common equity 10.0 75 Plan B Debt 3.2 % 25 % Preferred stock 6.2 10 Common equity 11.0 65 Plan C Debt 4.0 % 35 % Preferred stock 6.7 10 Common equity 10.6 55 Plan D Debt 7.0 % 45 % Preferred stock 7.6 10 Common equity 12.6 45 a-1. Compute the weighted average cost for four plans.
Answer:
Plan A = 8.55%
Plan A =8.57%
Plan A =7.9%
Plan A =6.58%
Explanation:
The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows
WACC = Cost of capital x Weights
PLAN A
Weights Cost of capital WACC
Debt 3.0 % 15 % 0.45%
Preferred stock 6.0 10% 0.6%
Common equity 10.0 75% 7.5%
WACC 8.55%
PLAN B
Weights Cost of capital WACC
Debt 3.2 % 25% 0.8%
Preferred stock 6.2 10% 0.62%
Common equity 11.0 65% 7.15%
WACC 8.57%
PLAN C
Weights Cost of capital WACC
Debt 4.0 % 35 % 1.4%
Preferred stock 6.7 10% 0.67%
Common equity 10.6 55% 5.83%
WACC 7.90%
PLAN D
Weights Cost of capital WACC
Debt 7.0 % 45 % 3.15%
Preferred stock 7.6 10% 0.76%
Common equity 12.6 45% 5.67%
WACC 6.58%
What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2018?
Answer: $600,000
Explanation;
Pension Liability refers to the amount the company is to pay its employees a pension less the actual amount it has to pay its employees.
It is therefore expressed as;
= Obligations - Assets
In this scenario that would be;
= Projected Benefits Obligation - Plan Assets (at Fair Value)
= 1,200,000 - 600,000
= $600,000
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies 55,200 square feet; Painting has 120 employees and occupies 36,800 square feet. Indirect factory expenses for the current period are as follows: Administration $ 86,000 Maintenance $ 102,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Painting Department for the current period is:
Answer:
$61,200
Explanation:
Maintenance expenses allocated to assembly department
Allocation base = Square footage
= $102,000 * $55,200 / ($55,200 + $36,800)
= $102,000 * $55,200 / $92,000
= $61,200
Barry Cuda is considering the purchase of the following Builtrite bond: $1000 par, 3 1/4% coupon rate, 10 year maturity that is currently selling for $940. If Barry purchases this bond, what would his approximate yield to maturity be?
Answer:
Yield to Maturity = 3.97%
Explanation:
The yield to maturity is the discount rate that equates the price of the bond to the present value of its future cash flow receivable from it.
The yield on the bond can be determined as follows using the formula below:
YM = C + F-P/n) ÷ 1/2 (F+P)
YM-Yield to maturity-
C- annual coupon
F- Face Value
P- Current Price
DATA
Coupon = coupon rate × Nominal value = 1,000 × 3 1/4%= 32.5
Face Value = 1000
YM-?, C- 32.5, Face Value - 1,000, P-940
YM = (32.5+ (1000-940)/10) ÷ ( 1/2× (1000 + 940) )
YM = 0.0397 × 100 = 3.97%
Yield to Maturity = 3.97%
At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job) $8,220
Purchase season football tickets in September 110
Additional entertainment for each month 290
Pay fall semester tuition in September 4,400
Pay rent at the beginning of each month 400
Pay for food each month 220
Pay apartment deposit on September 2 (to be returned December 15) 600
Part-time job earnings each month (net of taxes) 1,020
a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. Priscilla can see that her present plan will not provide sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ short at the end of December, with no time left to adjust.
Answer:
a) Priscilla Wescott's
Cash budget
Months
Sept. Oct. Nov. Dec.
beginning balance 8,220 3,220 3,330 3,340
football tickets -110
other entertainment -290 -290 -290 -290
semester tuition -4,400
rent -400 -400 -400 -400
food -220 -220 -220 -220
apartment deposit -600 600
part time jobs earnings 1,020 1,020 1,020 1,020
ending balance 3,220 3,330 3,340 4,150
b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.
c) The spring semester tuition costs $4,400 and she will only have $4,150, that means she will be $250 short.
The 7 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the bonds sell for $987. What is the yield to maturity? B) 6.92 percent D) 7.22 percent A) 6.97 percent C) 6.88 percent E) 7.43 percent
Answer:
The answer is D. 7.22 percent
Explanation:
Interest payments are being made semiannually, this means it is being paid twice in a year
N(Number of periods) = 16 periods ( 8 years x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $987
PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 16; PV = -987 ; PMT = 35; FV= $1,000; CPT I/Y= 3.61
3.61 percent is the Yield-to-maturity for semiannual
Therefore, the Yield-to-maturity of the bond annually is 7.22 percent (3.61 percent x 2)
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11200 gallons of direct materials that actually cost $42400 were used to produce 6000 units of product. The direct materials quantity variance for last month was
Answer:
$3,200 Favorable
Explanation:
For the computation of direct materials quantity variance first we need to find out the standard quantity which is shown below:-
Standard quantity = Standard quantity per unit × Number of units produced
= 2 gallon × 6,000
= 12,000
Direct materials quantity variance = (Standard quantity - Actual quantity) × Standard Price
= (12,000 - 11,200) × $4
= 800 × $4
= $3,200 Favorable
On July 31, the company’s Cash account has a $25,274 debit balance, but its July bank statement shows a $26,612 cash balance. 1. Prepare the bank reconciliation for this company as of July 31.
Answer:
A lot of information was missing, so I looked for a similar question but couldn't find one with the same exact numbers, but I believe the following question should be very similar and you can use it as an example:
a.On July 31, the company’s Cash account has a $24,756 debit balance, but its July bank statement shows a $26,449 cash balance.
b.Check No. 3031 for $1,270 and Check No. 3040 for $627 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $411 and Check No. 3069 for $2,038, both written in July, are not among the canceled checks on the July 31 statement.
c.In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.
d.A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Branch, deducted a $45 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
f.Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.Branch’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.
Bank account reconciliation:
Bank account balance July 31, 202x, $26,449
+ deposits in transit $10,152
- outstanding checks ($3,719)
Reconciled bank account $32,882
Cash account reconciliation:
Cash account balance July 31, 202x, $24,756
+ Note collected by bank (net of fees) $8,955
- Bank fees ($14)
- NSF check + bank fees ($805)
- Error in recording check 3056 ($10)
Reconciled cash account $32,882
Janitor Supply produces an industrial cleaning powder that requires 48 grams of material at $0.10 per gram and 0.15 direct labor hours at $11.00 per hour. Overhead is applied at the rate of $10 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card
Answer:
Unitary cost= $7.95
Explanation:
Giving the following information:
48 grams of material at $0.10 per gram
0.15 direct labor hours at $11.00 per hour
Overhead is applied at the rate of $10 per direct labor hour.
We need to calculate the unitary production cost:
Unitary cost= 48*0.1 + 0.15*11 + 0.15*10
Unitary cost= $7.95
