On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:

Nov.

1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000.
1 Paid rent for period of November 1 to end of month, $4,000.
6 Purchased office equipment on account, $15,000.
8 Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder.
10 Purchased supplies for cash, $1,750.
12 Received cash for job completed, $11,500.
15 Paid annual premiums on property and casualty insurance, $2,400.
23 Recorded jobs completed on account and sent invoices to customers, $22,300.
24 Received an invoice for truck expenses, to be paid in November, $1,250.

Enter the following transactions on Page 2 of the two-column journal:

Nov.
29 Paid utilities expense, $4,500.
29 Paid miscellaneous expenses, $1,000.
30 Received cash from customers on account, $9,000.
30 Paid wages of employees, $6,800.
30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000.
30 Paid dividends, $2,500.

Required:

1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited.
2. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer 1

Answer:

Explanation:

(1) Journalizing the Transactions:-

Heritage Designs

General Journal

For the Month of November,20Y9

Date            Accounts             Debit                Credit

Nov. 1            Cash                   $50,000

                          Common Stock                          $50,000

Nov. 1             Rent Expense     $4,000  

                           Cash                                           $4,000

Nov. 6            Office Equipment    $15,000  

                          Accounts Payable                   $15,000

Nov. 8            Truck                      $38,500  

                           Cash                                            $5,000

                           Notes Payable                           $33,500

Nov. 10             Supplies              $1,750  

                           Cash                                            $1,750

Nov. 12             Cash                     $11,500  

                            Fees Earned                            $11,500

Nov. 15           Prepaid Insurance     $2,400  

                           Cash                                             $2,400

Nov. 23           Accounts Receivable  $22,300  

                         Fees Earned                                    $22,300

Nov. 24            Truck Expense         $1,250  

                            Cash                                            $1,250

Nov. 29          Utilities Expense           $4,500  

                              Cash                                    $4,500

Nov. 29   Miscellaneous Expense      $1,000  

                               Cash                                                   $1,000

Nov. 30                Cash                  $9,000  

                         Accounts Receivable                                $9,000

Nov. 30          Wages Expense              $6,800  

                                 Cash                                                 $6,800

Nov. 30             Accounts Payable         $3,000  

                                   Cash                                            $3,000

Nov. 30                  Dividends                   $2,500  

                                    Cash                                            $2,500

(2) Posting the each Transaction into General Ledger:-

Cash

Date               Items                   Debit                 Credit                Balance

Nov. 1 Common Stock  $50,000                         $50,000

Nov. 1 Rent Expense                                $4,000        $46,000

Nov. 8 Truck                                        $5,000             $41,000

Nov. 10 Supplies                                        $1,750              $39,250

Nov. 12 Fees Earned           $11,500                                 $50,750

Nov. 15 Prepaid Insurance                        $2,400        $48,350

Nov. 24 Truck Expense                        $1,250              $47,100

Nov. 29 Utilities Expense                        $4,500             $42,600

Nov. 29 Miscellaneous Expense               $1,000              $41,600

Nov. 30 Accounts Receivable   $9,000                                 $50,600

Nov. 30 Wages Expense                        $6,800              $43,800

Nov. 30 Accounts Payable                        $3,000              $40,800

Nov. 30 Dividends                                $2,500              $38,300

Accounts Receivable

Date    Items               Debit                      Credit               Balance

Nov. 23 Fees Earned    $22,300                                   $22,300

Nov. 30 Cash                                         $9,000        $13,300

Supplies

Date    Items               Debit                      Credit               Balance

Nov. 10   Cash              $1,750                                $1,750

Prepaid Insurance

Date    Items               Debit                      Credit               Balance

Nov. 15    Cash               $2,400                                 $2,400

Equipment

Date    Items               Debit                      Credit               Balance

Nov. 6 Accounts Payable $15,000                              $15,000

Truck

Date    Items               Debit                      Credit               Balance

Nov. 8 Cash               $5,000                              $5,000

Nov. 8 Notes Payable $33,500                              $38,500

Notes Payable

Date    Items               Debit                      Credit               Balance

Nov. 8 Truck                                      $33,500          $33,500

Accounts Payable

Date    Items               Debit                      Credit               Balance

Nov. 6 Equipment                             $15,000           $15,000

Nov. 30 Cash               $3,000                                          $12,000

Common Stock

Date    Items               Debit                      Credit               Balance

Nov. 1 Cash                                     $50,000    $50,000

Dividends


Related Questions

The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 196,000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 — Net markups — 80,000 Net markdowns — 56,000 Sales — 1,344,000 If the ending inventory is to be valued at approximately the lower of cost or market, what is the cost-to-retail ratio?

Answers

Answer:

$ 168,000

Explanation:

Include both Mark-ups and Mark-Downs and Exclude beginning inventory

When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates

the Previous year Ending inventory :

Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail

For Current year Addition :

Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail

Current year addition in retail includes : Markup ,Markdown purchases

Kindly check the attached images below to see the step by step explanation to the question above.

Which of the following are considered to be benefits of international trade? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Higher prices for domestic firms in industries with the highest level of imports unanswered More jobs in industries with a significant number of imports unanswered The ability to purchase goods produced abroad at lower prices than the domestic good unanswered Access to new resources that are not available domestically unanswered The ability to purchase new products that are not produced domestically

Answers

Answer:

1. Access to new resources that are not available domestically.

2. The ability to purchase new products that are not produced domestically.

3. The ability to purchase goods produced abroad at lower prices than the domestic good.

Explanation:

International trade involves the economic exchange or transactions of capital, goods and services between countries, mainly over international boundaries as a result of want or need by the consumers.

Examples of such goods are crude oil, clothing, electronic gadgets etc.

International trade can be classified into three categories namely;

- Import trade.

- Export trade.

- Entrepot trade.

The International Trade Organization now known as the World Trade Organization which was founded in 1994 is focused on efficiently lowering the cost of alternatives, creating access to resources and increased diversity of choice for consumers.

The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.

Answers

Answer:

this special order will result in a $2,637 profit, so the company should accept it

Explanation:

special order for 26 gold bracelets

discounted price of $367 per unit

normal production costs:

direct materials $143direct labor $90manufacturing overhead $31total $264

costs related to the special order

increase in direct materials = $7 per unit, total of $150 per unit

direct labor $90 per unit

variable overhead = $8 per unit

machine used for this project only $457

revenue generated by special order:

total revenue                                    $9,542

- variable costs                                ($6,448)

direct materials $3,900direct labor $2,340variable overhead $208

- special machine                              ($457)  

profit from special order                  $2,637

Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $3.4 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $110,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used

Answers

Answer:

$658,000

Explanation:

According to the scenario, computation of the given data are as follows:

Granite Enterprises Patent acquired = $3.4 million

Used years = 5 years

Rocky corporation purchase after 5 years = $110,000

So, we can calculate the Granite's patent amortisation by using following formula:

Granite's patent amortisation = ($3,400,000 - $110,000) ÷ 5

= $3,290,000 ÷ 5

= $658,000

Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.

Answers

Answer:

he35

Explanation:

h

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement: Raw materials $1,500,000 Work-in-process $1,200,000 Finished goods $800,000 In addition, the cost of goods sold last year (50 weeks) was $20 million. What is its total inventory (measured as weeks of supply) Answer

Answers

Answer:

A.8.75 weeks

B.5.71

Explanation:

a.

Weeks of supply = average aggregate inventory value/weekly sales at cost

=(1,500,000 + 1,200,000 + 800,000)/(20,000,000/50)

=3,500,000/400,000

= 8.75 weeks

b.Inventory turnover = annual sales (at cost)/average aggregate inventory value

=20 million/3.5 million

= 5.71

Answer:

Weeks Of Supply = 27.82 weeks

Explanation:

Weeks of Supply tells us that on average how long an inventory will last based on current demand.

The formula to calculate it is given below

Weeks Of Supply = Average Aggregate Inventory Value/ Weekly Cost of Sales

Weeks Of Supply = Raw Materials + Work In Process + Finished Goods/ Weekly Cost of Sales

Weeks Of Supply =$1,500,000+ $1,200,000+ $800,000/$ 20,000,000/52

Weeks Of Supply = 10,700,000/384615.385= 27.82 weeks

If the weeks of supply is lower it is better.

Inventory Turnover= $ 20,000,000/10,700,000=1.87 turns

On January 1, 2011, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2013, by the grantees still in the employ of the company. No options were terminated during 2011, but the company does have an experience of 20% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2011

Answers

Answer:

The amount should G charge to compensation expense for the year ended December 31, 2011 is $320,000

Explanation:

In order to calculate the amount should G charge to compensation expense for the year ended December 31, 2011 we would have to calculate the following formula:

amount should G charge to compensation expense for the year ended December 31, 2011=Total compensation/2

Note: company does have an experience of 20% forfeitures over the life of the stock options, therefore, 100%-20%=80%

Total compensation= 80,000 options × $10 × 80%

Total compensation= $640,000

amount should G charge to compensation expense for the year ended December 31, 2011=$640,000/2

amount should G charge to compensation expense for the year ended December 31, 2011=$320,000

If the government set a price ceiling of $40, there would be: Group of answer choices a shortage (or excess supply) of about 8 units a shortage (or excess supply) of about 12 units a surplus (or excess demand) of about 8 units a surplus (or excess demand) of about 12 units

Answers

Answer:

A surplus (or excess demand) of about 8 units

Explanation:

The picture attached shows the diagram necessary for the question which is part of the question. Solution is given below;

At the above ceiling at price of 40$

Quantity supplied will be 16

Quantity demanded will be 24

So when demand is more than supply than there will be a shortage in quantity by (24-16) 8 units.

When there is demand more than supply than it is an excess demand.

So surplus or excess demand by 8 units.

Explain how strong enforcement of carefully designed patent laws affects the growth rate of an economy. (5 points) Explain how tax incentives can be used to promote faster economic growth. (5 points) Explain the "infant industry argument" and its relationship to a country’s growth rate. (5 points) Explain what incentives can be used to increase the savings rate in an economy (as another way to promote faster economic growth). (5 points)

Answers

Answer:

1.In simple words, strong enforced patent laws will work as a motivation to innovation and innovation always results in better outcomes for thee economy as the output in the economy could be increased dramatically through technology advances.

2. By simply decreasing the tax rates on income from middle class households, Government can increase the demand of goods due to higher income in hand which further results in growth of economy.

3. Such argument states the new industries must be protected from foreign competitors until they are stable on their own. This is completely true as new industrious lead to better employment opportunities which further leads to economic growth.

4. For first tax rates can be decreased for more income in hand and also interest rates on savings could be increased.

During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual Standard Job Number Hours Costs Hours Costs Total Variance A257 200 $4,000 210 $4,200 $200 F A258 450 10,350 430 8,600 1,750 U A259 300 6,390 299 5,980 410 U A260 110 2,090 103 2,060 30 F Total variance $1,990 U Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent. Prepare a report for the plant supervisor on direct labor cost variances for March. (Round actual rate and standard rate to 2 decimal places, e.g. 10.50.)

Answers

Answer and Explanation:

The Preparation of report for the plant supervisor on direct labor cost variances for March is attached with the help of spreadsheet.

The Formula are as shown below:-

Actual per hour = Actual costs ÷ Actual number of hours

Standard per hour = Standard costs ÷Standard number of hours

Quantity variance = (Actual hours -Standard hours) × Standard Rate

Price variance = (Actual Rate - Standard Rate) × Actual Hour

Therefore if actual hours is lesser than Standard hours it will become favorable and if actual hours is higher than standard hours it will become unfavorable. In the similar way if actual rate is higher than standard rate then it will become unfavorable on the other hand if actual rate is lesser than standard rate then it will become favorable.

Milton Friedman argues that __________.
O corporations today should adopt a broader view of their social responsibilities than they have in the past.
O corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
O strict governmental controls are necessary if society is to maximize its overall economic well-being.
O a business's only social responsibility is to maximize profits within the rules of the game.

Answers

Answer:

Milton Friedman argues that a business's only social responsibility is to maximize profits within the rules of the game.

Explanation:

Milton Friedman is known to hold an opposing view when compared to that of John Keynes about economic theory.

Whereas Milton Friedman believes that the utmost responsibility of any company is to the shareholders, the Keynesian are more consumer focused.

Milton Friedman believes strongly in free capitalism and as a result does not advocate for any company offering corporate social responsibility to the society or public.

Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at 75% of full capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Z, determined by absorption costing method, is estimated as follows: Direct materials $30 Direct labor 15 Variable factory overhead 26 Fixed factory overhead 10 Total $81 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Z.

Answers

Answer:

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

Explanation:

Giving the following information:

Purchasing price= $85 a unit.

Variable cost per unit:

Direct materials $30

Direct labor 15

Variable factory overhead 26

Because there is unused capacity, the fixed costs won't increase. Fixed factory overhead should not be taken into account.

Total unitary variable cost= $71

The difference between buying and making is $14 per unit. It is $14 cheaper to make the unit.

The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets

Answers

Answer:

Allocated join cost = $66,176.47  

Explanation:

The joint cost is allocated using sales. This is done by using the proportion of sales of the total which is attributed to the sales value of widget

Total sales value of the three products=

(75  × 5,000) + ($50×  8,750) + ( $25×  10,000)= 1,062,500

Joint cost = $187,500.

Joint costs allocated to Widget

=  (75  × 5,000)/1,062,500  ×  $187,500. =  66,176.47  

Allocated join cost =$66,176.47  

The economy is in equilibrium, TP = TE. Then, autonomous consumption rises. As a result, __________ rises, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of goods and services they produce. Group of answer choices consumption; TE; downward; fall; increase consumption; TE; upward; fall; increase consumption; TE; upward; rise; decrease investment; TE; upward; fall; increase investment; TP; leftward; fall; increase

Answers

Explanation:

The economy is in equilibrium, TP = TE. That is total production is equal to total production.

Then, autonomous consumption rises. As a result, consumption rises, the TE(total expenditure) curve shifts upwards, inventory levels unexpectedly falls, and business firms increases the quantity of goods and services they produce.

Companies within the oneworld, Star, and Sky Team alliances have also engaged in major mergers and acquisitions (M&A): American and US Air (oneworld), Delta and Northwest (Sky Team), and Continental and United (Star). What are the advantages and disadvantages of M&A versus non-equity alliances in this industry? 15-4. Some airlines, such Daniels, John. International Business (p. 425). Pearson Education. Kindle Edition.

Answers

Answer:

Check the explanation

Explanation:

Merger and acquisition. It is a general terminology used to mention consolidation of firms merger that takes place when two businesses join together to form a new organization.

While Acquisition is the buying of one firm by another company.

The following are the benefits of merger and acquisition in the airlines industry:

• Executes economies of scale

• Help obtain coordination effect

• Competitors restriction

• Improved resources allocation

The following are the drawbacks of merger and acquisition in the airlines industry:

• Cultural mismatch among companies during merger

•Antitrust

• Placing risk of acquired workers  

Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded and paid wages expense of $120,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $20,000. Sold a long-term investment (cost $8,000) for cash of $6,000. Recorded cash sales of $800,000. Bought inventory for cash of $320,000. Acquired an investment in Zynga stock for cash of $42,000. Converted bonds payable to common stock in the amount of $1,000,000. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?

Answers

Answer:

-$210,000

Explanation:

Issued Common Stock at par for Cash $250,000

Less:

Declared and paid a cash dividend $20,000

Repayment of 6-year note payable $440,000

Net Cash provided by Financing Activities ($210,000)

Which of the following statements is correct with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. It is generally good business management to sell the most recently acquired goods first "Under FIFO, the ending inventory is based on the latest units purchased." FIFO seldom coincides with the actual physical flow of inventory.

Answers

Answer:

Under FIFO, the ending inventory is based on the latest units purchased.

Explanation:

First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.

On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.

According to an article in the Wall Street Journal​, KB Home and other builders found demand for new houses increasing in 2017 as a result of an increase in the formation of new households. In the long​ run, formation of new households depends on population growth. ​Source: Laura Kusisto and Sarah​ Chaney, "U.S. Housing Starts Fell in April for Third Time in Four​ Months," Wall Street Journal​, May​ 16, 2017. Are firms like homebuilders that sell products whose demand depends partly on demographic factors likely to be more or less affected by the business cycle than are other firms whose products are less dependent on these factors​ (holding constant other factors that affect the demand for new​ houses)? Briefly explain.

Answers

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

Direct materials information Medium speed bump Large speed bump

Standard pounds per unit 15 ?

Standard price per pound $1.00 $1.80

Actual quantity purchased and used per unit ? 16

Actual price paid for material per pound $1.80 $2.10

Direct materials price variance $1,120 U $1,920 U

Direct materials quantity variance $100 F ?

Total direct material variance ? $480 U

Number of units produced 100 400


Calculate missing direct material variables

Answers

Answer:

Explanation:

For Medium speed bump

AQ AP AQ SP SQ SP

1,400 $ 1.80 1,400 $ 1.00 1,500 $ 1.00

$ 2,520.00 $ 1,400.00 $ 1,500.00

A B C

DMPV A-B $ 1,120.00 U

DMQV C-B $ 100.00 F

DMV A-C $ 1,020.00 U

We know that Direct material price variance = AQ(AP-SP) = 1120

AQ = 1120/(AP-SP)

AQ = 1120/(1.80-1.00)

AQ = 1,400

SQ = 100 x 15 = 1500

For Large speed bump

AQ AP AQ SP SQ SP

6,400 $ 2.10 6,400 $ 1.80 7,200 $ 1.80

$ 13,440.00 $ 11,520.00 $ 12,960.00

A B C

DMPV A-B $ 1,920.00 U

DMQV C-B $ 1,440.00 F

DMV A-C $ 480.00 U

Using this equation , DMV = DMPV + DMQV

DMQV = DMV-DMPV

DMQV = 480-1920

DMQV = 1440 F

Direct material quantity variance = SP(SQ-AQ) = 1440

SQ-AQ = 1440/SP

1440/SP + AQ = SQ

1440/1.8 + 6400 = SQ

SQ = 7200

As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.

Answers

Answer:

The correct answer to the following question will be Option B.

Explanation:

A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.

The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.

(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000 and the rate of return is 12 percent per year, how much of the $8,000 must James deposit now to have the $5,000 in five years

Answers

Answer:

  $2837.13

Explanation:

The account value is multiplied by 1 +12% = 1.12 each year, so at the end of 5 years, it will have been multiplied by 1.12^5. For some investment P, we want ...

  5000 = P×1.12^5

  5000/1.12^5 = P ≈ $2837.13

James must deposit about $2837.13 now to have the required amount in 5 years.

Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.

Answers

Answer:

The answer is 5000 future contracts

Explanation:

Solution

Given that:

Royal Dutch buys ethanol fuel from Brazilian energy company

Nowm,

The Required coverage = 500,000,000

The BRL/USD futures contract size = 100,000

Number of contracts required = 500,000,000/100,000

So,

= 500,000,000/100,000  = 5000

Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000

​Garcia's Garage desires to create some colorful charts and graphs to illustrate how reliably its mechanics​ "get under the hood and fix the​ problem." The historic average for the proportion of customers that return for the same repair within the​ 30-day warranty period is 0.09.Each​ month, Garcia tracks 100customers to see whether they return for warranty repairs. The results are plotted as a proportion to report progress toward the goal. If the control limits are to be set at twostandard deviations on either side of the​ goal, determine the control limits for this chart. In​ March, 5of the 100customers in the sample group returned for warranty repairs. Is the repair process in​ control?

Answers

Answer:

the given question historic average is given as 0.09 for 100 customers.

Therefore,

P = 0.09 and n = 100

The control liimits are to be set two standard deviation around the mean.

Standard deviation =

\sigma = \sqrt{p(1-p)/n)}

Therefore substitutin g the value in the above formula:

\sigma = \sqrt{0.09(1-0.09)/100)}

After soving we get result as:

\sigma = 0.0286

Upper Control Limit = 0.09 + 2 * \sigma = 0.09 + (2 * 0.0286) = 0.1472

Lower Control Liimit = = 0.09- 2 * \sigma = 0.09 - (2 * 0.286) = -0.0328

For March, 5 out of 100 customers returned for warranty repairs, therefore,

p for March = 5/100 = 0.05

The process doses not fall under control limits, so it is out of control for March.

Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses

Answers

Answer:

Option C                                        

Explanation:

In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.

Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.

In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30 $ 6,245 Deposits in transit at month-end $ 1,360 Outstanding checks at month-end $ 680 Bank charge for printing new checks $ 75 Note receivable and interest collected by bank on Donahue’s behalf $ 710 A check paid to Donahue during the month by a customer is returned by the bank as NSF $ 540 The adjusted cash balance per the books on April 30 is:

Answers

Answer:

$5,660.

Explanation:

The adjusted cash balance = Cash balance per company books on April 30 - Deposits in transit + Outstanding checks - Bank charge + Note receivable and interest - NSF check = $6,245 - $1,360 + $680 - $75 + $710 - $540 = $5,660.

Therefore, the adjusted cash balance per the books on April 30 is $5,660.

Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?

Answers

Answer:

The price she should charge for the bundle in order to maximize profit is 9

Explanation:

Solution

The total pistachios sold = 7 * 2 =14

The total almonds sold is = 4*1 = 4

So,

The total of both pistachios and almonds = 14 + 4 + 18

Thus,

we solve for getting average of the two which is:

Getting the average of the two in the bundle = 18/2

=9

Therefore p =9

g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? The market rate of interest is the contract rate of interest. Therefore, inventors wi

Answers

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Total Years = 5, semiannually = 5 × 2 = 10

Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%  

Journal Entries

On Jan 1

Cash A/c           Dr. $9,594,415

Discount on bonds payable A/c        Dr. $405,585

      To Bonds payable A/c          $10,000,000

(Being the issuance of bond payable is recorded)

Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585

2).

On Jun

Interest expenses A/c             Dr. $390,559

Discount on bonds payable A/c($405,585 ÷10)           Dr.40,559

 To Cash A/c($10,000,0000 × 3.5%)     $350,000

(Being the payment of first semiannual interest is recorded)

3).  

On Dec 31

Interest expenses A/c              Dr. $390,559

Discount on bonds payable A/c($405,585*10/100)     Dr.$40,559

 To Cash A/c($10,000,000*3.5/100)      $350,000

(Being the payment of second semiannual interest is recorded)

b). Bond Interest Expense Amount for First Year

= Interest Expenses + Amortized Discount

= $700,000 + $81,117

= $781,117

Interest expenses = $350,000 + $350,000 = $700,000

Amortized Discount = $40,559 + $40,559 = $81,117

c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.  

A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price participant, because it can coordinate its pricing decisions with other firms. price maker, because it has the freedom to set the selling price. price leader; it can change its price and other firms will adjust.

Answers

Answer:

A.  price taker, because it must accept the market equilibrium price.

Explanation:

A perfectly competitive firm is an ideal firm in which different firms sell products that are homogeneous or similar in nature. They are price takers because the prices of goods are determined by changes in demand and supply, therefore they must accept the market equilibrium price. They do not attempt to fix the prices of commodities. The opposite of this type of firm is a monopoly where a firm has complete control of a market, having the ability to change prices as it wills.

An example can be found among businesses that sell similar kinds of products. It could be in the form of grocery stores that sell similar wares. When any of the sellers leave the market, it does not affect the other sellers as their prices are at equilibrium. Therefore, anyone can enter or exit this type of market.  

The Essex Company found that an average of 10 days elapses between when customer payments are received and the deposited funds clear the customer's bank and become usable by the firm. Essex's annual sales are $240 million. (Assume 365 days per year when converting from annual data to daily data or vice versa.) What is the increase in Essex's average cash balance assuming that it can reduce the time required to process customer payments by 3 days through more efficient payment processing methods

Answers

Answer:

$1,972,602.74

Explanation:

According to the scenario, computation of the given data are as follow:-

Increase in Essex’s Average Cash Balance = (Annual Sales ÷ Days Per Year) × Required Process Customer by Days

= (240,000,000 ÷ 365) × 3

= 657,534.25 × 3

= $1,972,602.74

According to the analysis, Increase in Essex’s average cash balance is $1,972,602.74

2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 332,500 198,000 Balance Sheet Information Current assets $ 1,550,000 $ 1,450,000 Long-term assets 2,150,000 1,850,000 Total assets $ 3,700,000 $ 3,300,000 Current liabilities $ 1,150,000 $ 850,000 Long-term liabilities 1,550,000 1,550,000 Common stock 750,000 750,000 Retained earnings 250,000 150,000 Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000 Required: 1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders in 2021.

Answers

Answer:

2021 2020 Income Statement Information

Sales revenue $ 8,400,000 $ 7,900,000

Cost of goods sold 5,535,600 5,400,000

Net income 332,500 198,000

Balance Sheet Information

Current assets $ 1,550,000 $ 1,450,000

Long-term assets 2,150,000 1,850,000

Total assets $ 3,700,000 $ 3,300,000

Current liabilities $ 1,150,000 $ 850,000

Long-term liabilities 1,550,000 1,550,000

Common stock 750,000 750,000

Retained earnings 250,000 150,000

Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000

1.

Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)

The four main profitability ratios are:

gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%

2.

Determine the amount of dividends paid to shareholders in 2021.

retained earnings 2021 - retained earnings 2020 = net income - dividends

$250,000 - $150,000 = $332,500 - dividends

$100,000 + dividends = $332,500

dividends = $332,500 - $100,000 = $232,500

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