Answer:
b. a gain on redemption.
Explanation:
Given that
The face value of the bond is $10 million
The bond should be redeemed at 101% of par
Also it is issued for a premium and its carrying value is $10,200,000
Since the carrying value is more than the face value that means the income statement represent the gain on redemption of the bonds
Therefore the option b is correct
a. Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2020. On June 30, Martinez declared and paid $75,000 cash dividends to all stockholders. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share.
b. Monica, Inc. obtained significant influence overSeles Corporation by buying 30% of Seles's 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1,2017. On June 15, Seles declared and paid cash dividends of $36,000 to all stockholders. On December 31, Seles reported a net income of $85,000 for the year.
Required:
Prepare all necessary journal entries in 2017 for both situations.
Answer:
A. 18-03
Dr Investment in AFS $260,000
Cr Cash $260,000
30-06
Dr Cash $7,500
Cr Dividend Revenue $7,500
31-12
Dr Securities Fair value Adjustment $40,000
Cr Unrealized Holding Gain $40,000
B. 01/01
Dr Investment in S Corp $81,000
Cr Cash $81,000
15/06
Dr Cash $10,800
Cr Investment in S Corp $10,800
31/12
Dr Investment in S Corp $25,500
Cr Revenue from Investment
Explanation:
Preparation of all necessary journal entries in 2017 for both situations.
A. Journal entries
18-03
Dr Investment in AFS $260,000
(200000*10%*13)
Cr Cash $260,000
(To Record investment made)
30-06
Dr Cash (75000*10%) $7,500
Cr Dividend Revenue $7,500
(To Record Dividend Earned)
31-12
Dr Securities Fair value Adjustment $40,000
Cr Unrealized Holding Gain $40,000
( 20000*2)
(To Record Investment at Fair Value(
B. Journal Entries
01/01
Dr Investment in S Corp $81,000
(30000*30%*9)
Cr Cash $81,000
(To Record investment made)
15/06
Dr Cash $10,800
(36000*30%)
Cr Investment in S Corp $10,800
(To Record Dividend Earned)
31/12
Dr Investment in S Corp $25,500
(85000*30%)
Cr Revenue from Investment $25,500
(To Record Income earned)
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is her marginal propensity to save (MPS)
Answer:
the mps is 0.10
Explanation:
Given that
Income increased from $3,000 to $3,500 per month
ALso she saved 10% and spend the remaining on other expenses
So, she saved $20,000
Now the marginal propensity to consume is
As we know that
MPS = change in saving ÷ change in income
So put the values
After putting out the values, the mps is 0.10
Costs that vary in total in direct proportion to changes in an activity level are called: Group of answer choices fixed costs sunk costs variable costs differential costs
Answer:
variable costs
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Jamon is a manager in a human resources organization. He has a message for Bob who works on the assembly line. What channel is he likely to use get the message to Bob
Answer: All of the above
Explanation:
The options include:
a. Face-to-face
b. Telephone
c. Electronic mail
d. All of the above
Since the manager manager has a message for Bob, any of the communication channels given here can be used.
There is no preferred communication channel here. The manager may decided to tell Bob the message face to face when he sees him. Also, he can call him on the telephone or send an email to him.
Therefore, the correct option is All of the above.
Depreciation, a type of expense, is included in the ________ category.
Answer:
General and administrative
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
Depreciation can be defined as a process in which the monetary or financial value with respect to an asset decrease or falls over time as a result of wear and tear.
This ultimately implies that, depreciation is a process which typically involves the general fall in the value of an asset such as currency, plant equipment or machinery etc over a specific period of time.
Basically, depreciation is a type of expense and it is included in the general and administrative (G&A) category of a balance sheet.
A general and administrative (G&A) can be defined as the expenditures that are required for the smooth running or operations of a business, which are not associated with the manufacturing of goods.
An employee of yours often offers excellent analysis and is able to quote facts and figures from memory during meetings; and they enjoy this aspect of their work. For this employee, analytical thinking might be considered a(n) ______ in CAPP Strengths. realized strength unrealized strength weakness learned behavior none of these innate behavior
Answer:
Realized strength
Explanation:
CAPP MODEL
This is simply called "Centre of Applied Positive Psychology".
Capp strength
This is are known to be more of fluid than personality traits and can occur over one's lifetime through different situations we experience.
The four quadrants of CAPP's Realise2 strengths model includes
1. Realized strengths
2. Unrealized strengths
3. Learned behaviours
4. Weaknesses.
Strengthss
This is simply known as an important or more so than weaknesses, a number of divisions are used by positive psychologist to help identify and measure your strengths. It is simply known as an attribute or quality of an individual that gives or accounts for successful performance.
The approach to strengths fully realized is simply to identify strengths and weaknesses to improve performance.
At the end of its first month of operations, Michael's Consulting Services reported net income of $31,600. They also had account balances of: Cash, $22,400; Office Supplies, $3,100 and Accounts Receivable $12,200. The owner's total investment for this first month was $6,100. There were no owner withdrawals in the first month was $5,850.
Required:
Calculate the ending balance in stockholders' equity to be reported on the Balance Sheet.
Answer:
Explanation:
Calculate the ending balance in stockholders' equity to be reported on the Balance Sheet.
MC Qu. 135 Front Company had net income of... Front Company had net income of $86,500 based on variable costing. Beginning and ending inventories were 2,200 units and 4,000 units, respectively. Assume the fixed overhead per unit was $8.60 for both the beginning and ending inventory. What is net income under absorption costing
Answer:
Net income under absorption costing = $101980
Explanation:
Below is the following calculation:
Net income based on variable costing = $86500
Rise in inventory = (4000 - 2200) x 8.60 = $15480
Now find the net income under absorption costing by adding the rise in inventory in the net income based on variable costing.
Net income under absorption costing = $86500 + $15480
Net income under absorption costing = $101980
Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful life with no salvage value. Allo estimates that the annual cash savings from this project will amount to $65,000. On investments of this type, Allo's required rate of return is 12%.The net present value of the project is closest to
Answer:
$34,310.45
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-200,000
Cash flow in year 1 - 5 = 65,000
I = 12%
NPV = $34,310.45
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is a.$8,500 b.$16,250 c.$13,500 d.$18,750
Answer:
Smith Company
Work in process inventory on December 31 is:
= c. $13,500.
Explanation:
a) Data and Calculations:
Work in process inventory, January 1 11,000
Direct materials used 27,000
Direct labor incurred 25,000
Factory overhead (75% of $25,000) 18,750
Total cost for the year = $ 81,750
Cost of goods manufactured 68,250
Work in process inventory, Dec. 31 $13,500
b) Smith's work in process inventory on December 31 equals its total costs incurred by Smith for production for the year minus its cost of goods manufactured. Conversely, if the work in process inventory on December 31 is known, then its cost of goods manufactured equals its total production costs minus the ending work in process.
An asset is purchased for $20,000. It has an estimated residual value of $5,000 and an estimated useful life of ten years. After three years of use, the estimated residual value is revised to $4,000. Assuming straight-line depreciation, depreciation expense in year four of use would be
$2,875
Formula (Cost – Residual Value) / Estimated Life = Annual Depreciation
Depreciation for the first three years = [($20,000 - $5,000) ÷ 10] × 3 = $4,500
Book value at the end of the fourth year = $20,000 - $4,500 = $15,500
Depreciation expense the third year = ($15,500 - $4,000) / 4 = $2,875 per yr.
Carpenter Inc. had a balance of $88,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $453,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.8 million. What was the balance in the warranty liability account as of December 31, 2021
Answer:
$43,000
Explanation:
Warranty expense for 2021 = $40.8 millions * 1%
Warranty expense for 2021 = $408,000
Balance in Liability on 31 Dec = Warranty Liability on 1 Jan + Warranty Expenses - Warranty Expense paid
Balance in Liability on 31 Dec = $88,000 + $408,000 - $453,000
Balance in Liability on 31 Dec = $43,000
So, the balance in the warranty liability account as of December 31, 2021 is $43,000.
Karen timely filed her 2016 return on April 15, 2017. Under ordinary circumstances, what is the last day she can file an amended 2016 return?
A. April 15, 2019.
B. October 15, 2019.
C. April 15, 2020.
D. October 15, 2020.
Answer: C. April 15, 2020.
Explanation:
If Karen hopes to receive a refund on the amended 2016 return then she should file it within 3 years of the day she filed her 2016 return.
She filed her 2016 return on April 15, 2017 so three years from then would be:
= 2017 + 3
= 2020
April 15, 2020
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was $52,000
Accounts payable increased by 18,000
Accounts receivable decreased by 25,000
Inventories increased by 5,000
Depreciation expense was 30,000
Net cash provided by operating activities was: ________
a) $80,000
b) $70,000
c) $130,000
d) $120,000
e) $60,000
Answer:
d) $120,000
Explanation:
Calculation to determine what Net cash provided by operating activities was:
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 52,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation expense was 30,000
Increase Accounts Payable 18,000
Decrease Accounts Receivables 25,000
Less Increase in Inventory (5,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 120,000
Therefore Net cash provided by operating activities was:$120,000
During the current year, the following manufacturing activity took place for a company's products. The beginning work in process, 70% complete, was comprised of 10,000 units. Units started into production during the year totaled 150,000 units. A total of 140,000 units were completed during the year. The ending work in process, 25% complete, was comprised of 20,000 units. What was the number of equivalent units using the FIFO method?
a. 138,000.
b. 140,000.
c. 145,000.
d. 150,000.
Answer:
a. 138,000
Explanation:
Equivalent Units of Production (FIFO method)
Whole % Completion Equ. units
Units Dir. Mat.
Beg. Work in process (100% - 70%) 10,000 30% 3,000
Started & completed (140,000-10,000) 130,000 100% 130,000
Ending Work in process 20,000 25% 5,000
Total Equivalent units 138,000
155) Bristo Corporation has sales of 1,600 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses are $50,000, the degree of operating leverage is: A) 2.00 B) 8.00 C) 2.17 D) 6.00
Answer:
D) 6.00
Explanation:
Particulars Amount
Sales(1600*50) $80,000
Variable expenses(80,000*25%) $20,000
Contribution margin $60,000
Fixed expenses $50,000
Net operating income $10,000
Degree of operating leverage = Contribution margin / Net operating income
Degree of operating leverage = $60,000/$10,000
Degree of operating leverage = 6
Oligopolies would like to act like a Group of answer choices duopoly, but self-interest often drives them closer to the competitive outcome. competitive firm, but self-interest often drives them closer to the duopoly outcome. monopoly, but self-interest often drives them closer to the duopoly outcome. monopoly, but self-interest often drives them closer to the competitive outcome.
Answer:
monopoly, but self-interest often drives them closer to the competitive outcome.
Explanation:
An oligopoly exists when a small number of firms control the resources and price in a market.
They tend to stop each other from having significant influence in the market.
Because of this self interest their monopolistic attribute tends to become more towatds a competitive outcome.
So no one firm has the monopoly of the market rather influence is shared
factors to consider when buying a machine
Production Output.
Manpower Engagement.
Warranty Period.
Power Needs and Consumption.
Price.
The Supplier.
10. Which of the following best describes a trial balance?
Both UTech Inc. and Mirco Corp. incur a cost of $200 to manufacture a single unit of a cell phone. However, UTech Inc. charges a higher price than Mirco Corp. does, but it still sells a higher number of phones. What does this imply
Answer: UTech Inc. creates more economic value than Micro Corp. does.
Explanation:
Economic value refers to the measure of the benefit that an economic agent such as an individual, firm or government gets when a good or service is consumed.
In this case, since consumers derive more economic value from the good, even though it's costlier, they'll be willing to pay a higher price.
Therefore, UTech Inc. creates more economic value than Micro Corp. does.
During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:
Answer:
Debit to work in process for $79,000
Explanation:
The journal entry is shown below:
Work in process Dr $79,000
To Direct material $79,000
(Being requistion from the storeroom is recorded)
Here work in process is debited as it increased the assets and credited the direct material as it decreased the assets
Working note
Total material requisitions. = $ 83,000
Less : Indirect material. =. ($ 4000)
Direct material $79,000
The Agile way is:
Select the correct option(s) and click Submit.
To produce working software of high business value and of the right quality, early and incrementally
To produce working software only after requirements documentation has been signed off by the Product Owner
To
To produce simple prototypes early, and release all only at the end of the project.
Each developer to sit with business every day, code as they mutually discuss, and move to production when the business
SUBMIT
Answer: To produce working software of high business value and of the right quality, early and incrementally
Explanation:
Agile working has to do with bringing of people, technology, connectivity, time together in order to find an effective way of doing a particular task.
The agile way is to produce working software of high business value and of the right quality, early and incrementally.
Therefore, the correct option is A
Over the last six years, prices and investing activity in the bond market rose for two years and then fell consistently for the next four years. How is this market classified? Primary bull market Secular bull market Secular bear market Primary bear market
Answer:
Secular bear market
Explanation:
A secular bear market is a long term trend that lasts between 5 to 25 years which consists of a smaller bull market and a larger bear market. It means that a small period of increase in prices is followed by a prolonged period of a decrease in price.
A secular bear occurred between January 1980 to June 1999 in the gold market. During this time, the price of gold fell $850/oz to $253/oz
A secular bull market is a long term trend that lasts between 5 to 25 years which consists of a small period of decline in prices is followed by a prolonged period of a rise in price.
Peck Company purchased Sanno Company common stock in a series of open-market cash purchases from 2012 through 2014 as follows: Date Shares Acquired Cost January 1, 2012 1,830 $45,400 January 1, 2013 4,575 94,500 January 1, 2014 10,065 265,716 Sanno Company had 18,300 shares of $20 par value common stock outstanding during the entire period. Retained earnings balances for Sanno Company on relevant dates were January 1, 2012 $19,600 January 1, 2013 (30,600 ) January 1, 2014 83,800 December 31, 2014 170,000 Dividends in the amount of $50,600 were distributed by Sanno Company only in 2014. Any difference between implied and book values is assigned to goodwill. Peck Company uses the cost method to account for its investment in Sanno Company. Collapse question part (a) Prepare the journal entries that Peck Company would record on its books during 2014 to account for its investment in Sanno Company.
Answer:
Peck Company
Journal Entries:
January 1, 2012:
Debit Investment in Sanno Company $45,400
Credit Cash $45,400
To record the investment in 1,830 shares (or 10%).
January 1, 2013:
Debit Investment in Sanno Company $94,500
Credit Cash $94,500
To record the investment in 4,575 shares (or 25%).
January 1, 2014:
Debit Investment in Sanno Company $265,716
Credit Cash $265,716
To record the investment in 10,065 shares (or 55%).
Explanation:
a) Data and Calculations:
Date Shares Acquired Cost Percentage
January 1, 2012 1,830 $45,400 10% (1,830/18,300 * 100)
January 1, 2013 4,575 94,500 25% (4,575/18,300 * 100)
January 1, 2014 10,065 265,716 55% (10,065/18,300 * 100)
Total shareholding 16,470 $405,616
Sanno's shares 18,300 at $20 par value
January 1, 2014:
Non-controlling interest = 1,830 (18,300 - 16,470) 10% (1,830/18,300 * 100)
Transaction Analysis:
January 1, 2012: Investment in Sanno Company $45,400 Cash $45,400 for 1,830 shares (or 10%)
January 1, 2013: Investment in Sanno Company $94,500 Cash $94,500 for 4,575 shares (or 25%)
January 1, 2014: Investment in Sanno Company $265,716 Cash $265,716 for 10,065 shares (or 55%)
74. When a company issues shares at a
premium the amount of premium should
be received by the company:
(1 Point)
O Along with application money
Along with allotment money
Along with calls
Along with any of the above
Answer:
Along with any of the above
Explanation:
The book value per share of stock can be defined as a measure of the total amount of value associated with a net asset that an investor is entitled to when he or she buys a share of stock.
Hence, the book value per share of stock is a ratio of the equity gotten by an investor to the amount of outstanding shares.
In the financial markets, when a company issues shares at a premium the amount of premium should be received by the company;
I. Along with application money
II. Along with allotment money
III. Along with calls
At the age of 68, Donna elected a straight life income option for the payout of her $150,000 deferred annuity She received monthly payments for 3 years totaling $42,000 and then she died. How much will her beneficiary get?
Answer:
$0
Explanation:
Given that
The payout is $150,000 for deferred annuity
Monthly payment for 3 years i.e. $42,000 and after this she died
So, here the beneficiary should get zero amount as in the case of the straight life income options, the annuitant should received the payment only when they died the payment should stop so beneficiary should not be eligible for any kind of payment received
Therefore zero amount should be considered
What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?
a. All expenses of the eliminated segment will be eliminated.
b. Net income will decrease.
c. Net income will increase.
d. The company's variable costs will increase.
Answer: b. Net income will decrease.
Explanation:
The unavoidable fixed costs were being covered by the unprofitable segment so if the segment is removed, the unavoidable fixed cost will have to be deducted from the profits of the other segment/s.
When this happens their profit will decrease because those segments will now be covering more fixed costs than before. This is why it is usually better to keep an unprofitable segment going if it incurs unavoidable fixed costs.
Doug & Jennifer are a 40-something married couple. They have built up an emergency
fund of $10,000 that they would like to invest in order to benefit from compound
interest.
How would you recommend they invest their emergency fund?
Answer:
The answer is below
Explanation:
Doug & Jennifer should invest their emergency fund of $10,000 by doing the following to benefit from compound interest:
1. Keep their money in high-yield banks: this type of investment delivers compound interest on money saved or invested in high-yield banks.
2. By investing their money in the Money Market Accounts: this also allows easy access to their money whenever they need it, while also earning money from their investment through compound interest.
Hannah, age 70 and single, is claimed as a dependent by her daughter. During 2020, Hannah had interest income of $2,550 and $850 of earned income from babysitting. Hannah's taxable income is:
Answer: $550
Explanation:
Standard deduction is the greater of $1,050 or the sum of the earned income and $350.
= Earned income + 350 = $1,200
Additional deduction for single seniors in 2020 is $1,650.
Total deduction is:
= 1,200 + 1,650
= $2,850
Hannah's taxable income is:
= 2,550 + 850 - 2,850
= $550
According to the accountant of Marigold Corp., its payroll taxes for the week were as follows: $131.00 for FICA taxes, $13.50 for federal unemployment taxes, and $96.50 for state unemployment taxes. Journalize the entry to record the accrual of the payroll taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 10.50.)
Answer:
Marigold Corp.
Journal Entry:
Debit Payroll taxes expense:
FICA taxes for the week $131.00
Federal unemployment taxes $13.50
State unemployment taxes $96.50
Credit Payroll taxes payable $241
To record the accrual of the payroll taxes.
Explanation:
a) Data:
FICA taxes for the week = $131.00
Federal unemployment taxes = $13.50
State unemployment taxes = $96.50
Analysis:
Payroll taxes expense:
FICA taxes for the week $131.00
Federal unemployment taxes $13.50
State unemployment taxes $96.50
Payroll taxes payable $241
